SOUTH HILL, Va., March 5 /PRNewswire-FirstCall/ -- Since taking delivery of $3 million as part of the Troubled Asset Relief Program (TARP) on December 23, 2008, Citizens Community Bank (BULLETIN BOARD: CZYB) has experienced robust loan growth. Nearly $5.7 million in new loans have been originated since the TARP funds were received.
"The South Hill market has been particularly responsive," commented Vin Montgomery, senior lender and executive vice president. "We have experienced strong demand across the board for all types of lending other than acquisition and development loan interest," stressed Montgomery. The South Hill office is responsible for $4.7 million of the new loan originations.
The Bank also is investing marketing and personnel dollars to strengthen secondary mortgage lending. On January 8, 2009, Citizens Community Bank secured approval from the US Department of Housing and Urban Development to be an FHA loan originator. President and CEO Thomas C. Manson commented, "Since receiving our approval as an FHA originator, we have invested advertising and training dollars to educate our loan officers and branch managers, as well as local realtors and home builders, on the benefits derived from adding the ability to originate FHA loans as an additional product in our tool box. It is the desire of the Board of Directors for Citizens Community Bank to be a local leader in helping get the housing market in our area moving again." While initial lending efforts have been positive, Manson indicated that there are additional loans in the program's pipeline with closing dates pending.
Each of these initiatives is important both to the success of the Bank and the integrity of TARP. One of the primary goals of TARP is to encourage banks to resume lending at levels seen prior to the financial system crisis, and Citizens Community Bank is a fine example of the program's success.
"We'll continue to effectively leverage the TARP funding consistent with the initial concept of the Treasury department," stated President Tom Manson. "The capital infusion bolsters our ability to lend within our communities and affect change within our markets and customer base."
Citizens Community Bank is a Virginia state chartered bank headquartered in South Hill, Va. Opened in December 1999, it operates five branches, three in south central Virginia and two in northern North Carolina. For more information and additional financial data, please visit http://www.ccbsite.com/.
This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement.
