A CITIZEN'S INVESTMENT

There seems to be a bank on almost every corner in Bowling Green, but years ago, there were only three banks – Bowling Green Bank and Trust, Citizens National Bank and American National Bank.

But that would change.

In the late 1990s, mergers and acquisitions among banks in Bowling Green followed the frenzied pace of corporate mergers that started in the ’80s.

Citizens National Bank became Trans Financial Bank. Then on April 10, 1998, the announcement came Trans Financial would become Star Bank. But before Trans Financial was officially slated to become Star Bank that August, it was acquired again and became Firstar. A year later, Firstar became U.S. Bank, which it still is.

If that sounds confusing, imagine how employees and customers felt.

&#8220They started looking at the next deal without taking care of the one they just did,” said Mary Cohron, president of Citizens First Bank, the only localy organized and publicly traded bank here.

Cohron was then on the board of directors for Trans Financial while she worked for the Kentucky School Boards Association.

&#8220The conversion (from Trans Financial to Star) was (difficult),” Cohron said.

Cohron took a sabbatical and made the switch from Trans Financial to open and lead Citizens First Bank in June 1998.

The bank started with an incorporated investor group, Citizens First Corp., that came up with the idea for the bank many years after it was formed.

The civic-minded group was originally made up of 12 &#8220movers and shakers,” including a former mayor, a former state senator and other prominent individuals who really believed if there wasn’t a local headquartered bank, the influx of outsider banks would start to drain the economy of southcentral Kentucky.

Floyd Ellis, now chairman of the board of directors for Citizens, was one of the 12.

Ellis said the group was originally formed in 1963. Filings with the Securities Exchange Commission show the group incorporated in December 1975.

&#8220In the later part of the 1990s, we had a whole lot of money, and we decided to open a bank. We really wanted to give something back to the community,” Ellis said.

Dissatisfaction from customers and employees at Trans Financial who had endured the transition to Star bank was what prompted the investment group and Cohron to open up the bank.

Cohron drafted her dream team of 23 employees who came to Citizens First Bank from Trans Financial Bank, the first three being John Perkins, Barry Bray, and Carolyn Harp.

&#8220We loved it at Trans Financial. I was one of the people who thought I would retire there,” said Kim Thomas, executive vice president of marketing and a commercial lending officer.

&#8220Then we began to work ourselves to death,” Cohron said.

The bank had humble beginnings at an old house at 1106 College St. that had a tiny air conditioner, cramped space, slanted floors, and standing water in the basement. The house is now a parking lot.

&#8220We were just working on top of each other; it was hysterical,” Cohron said.

Mary E. Carpenter, who handled marketing for the bank at the time, and Cohron came up with the bank’s logo – the wheat symbol, which capitalized on the brand recognition from the former Citizens National Bank.

The first location on Campbell Lane was opened in February 1999.

&#8220When you’re a start-up bank and you have only one location it’s difficult to ask people to switch,” Thomas said.

Citizens has seen an impressive amount of growth.

Seven years and five locations later, the state-chartered bank is the only locally organized and publicly traded bank on the over-the-counter market (stock symbol: CZFC).

As of the end of December, the company and the bank employed 65 employees, of which 58 are full-time, according to SEC filings.

Organized under Kentucky law, the bank is subject to the regulation and supervision of the Kentucky Department of Financial Institutions.

Approximately 80 percent of Citizens First Bank shareholders live in Warren County.

Carolyn Harp, executive vice president and chief operations officer, works a flexible schedule of a 32-hour four day week.

&#8220It took a lot of years to get that,” she said. &#8220It really helps my productivity.”

Cohron sees more companies offering flex-time as a way to accommodate valuable employees with active lifestyles.

The last seven years have come full circle for Harp after leaving Trans Financial.

&#8220I helped get (Citizens) started. It’s very special to me to see it grow,” she said.

Kim Harmon is the controller for the bank, and reviews financial statements and files government reports with the SEC and the state.

Harmon is also a Trans Financial transplant.

&#8220We brought a lot of our customers with us,” she said.

At Thursday’s annual shareholders meeting, Chief Financial Officer Steve Marcum noted the growing customer base, aggressive growth, record earnings, strong capital and asset quality of the bank.

Citizens First Bank will launch a new marketing campaign late in the summer.

On top of that, the bank hopes to expand throughout the region, with plans to increase its market share through 2010 in Warren and Simpson counties.

&#8220We’re just always looking to see what’s out there,” Cohron said.