A Community Bank That Lives Up to Its Name
By Mindy Kroll
Client Profile
Universal Advisor, 2004 Issue No. 2
When Marsh Campbell, President of Citizens First, asked, “How about I start with ‘ Moon River ,’” and began to croon it into my tape recorder, I knew I was embarking on a different kind of interview. Part affable, stand-up comedian, part savvy, forward-thinking community bank president, Campbell, with the help of his incisive board of directors, has lead Citizens First through a number of changes during his three-year tenure as president. And he’s not slowing down. “In just three years, we’ve changed the bank’s culture,” says Campbell . “It’s different from anything you’ll find in a traditional banking environment. It’s delivering services to the community bank that bigger and smaller banks don’t provide. It’s putting service first by doing more than our customers expect. It’s giving back to the community. We’re energized — kind of like that bunny. That’s what drives us, and that’s what differentiates us.”
The History
Citizens First was founded as a savings & loan company in 1938 by Burt Wright and flourished as such under the leadership of Hazen Moran until the 1990s. In 1995, Citizens First expanded its capabilities and became a commercial banking institution. There was a tremendous need for commercial banking in Port Huron at the time, due to a variety of mergers and acquisitions. “Every time a merger or acquisition took place, the decision-making power moved farther and farther outside the community,” recalls Campbell. “We wanted to give our customers an alternative — a community bank comprised, managed, and overseen by members of the community.”
In March 2001, Citizens First went public by completing their conversion from a mutual savings bank to a stock savings bank. Once they went public, however, Campbell and the board of directors quickly realized a shift in culture was necessary. “We’d expanded our capabilities into commercial banking and consumer lending, but our culture was very much a savings and loan culture,” says Campbell. “That had to change.”
A Cultural Shift
Citizens First built an aggressive strategic plan focusing on technology, people, and training. “When I look at the progress we’ve made over the past three years, I’m amazed,” says Campbell. “In 2001, we were still using the same technology we’d implemented more than 20 years earlier; we changed everything — all networking, all hardware, all peripheral software, and all in six months; today we have a state of- the-art system. In 2001, although we had good people, we lacked depth. If we lost a branch manager, we had to scramble. If we lose a branch manager today, we have people waiting in the wings to take their place — excellent people who want that opportunity. I’m amazed that we’re able to attract and retain the quality of people that we do.”
Staff Retention
According to Citizens First’s most recent annual employee opinion survey (conducted by a third party where staff are afforded anonymity in their responses), 85 percent of Citizens First employees are satisfied with their jobs; 85 percent are committed to help the bank reach its goals; 95 percent are proud to be Citizens First staff; and more than 95 percent are proud of the work they contribute. Pretty impressive for an organization that, a mere three years ago, lamented a teller turnover of 76 percent (today it’s dropped to 8 percent). How did Citizens First achieve these results?
By empowering its staff to actively contribute to Citizens First’s success. All staff contributed to the bank’s most recent vision and strategic plan; subsequently, they know what it encompasses, what’s expected of them, and how to best serve their customers. In addition, whereas human resources used to make the final hiring decisions, branch managers now have that responsibility. The managers, then, are accountable for their employees’ success and turnover rate. “Our teller turnover has dropped 68 percentage points in a three-year period,” says Campbell. “That’s amazing, and it’s largely because we’ve empowered our staff to take an active role in the direction of the bank.”
Debbie Shafranski, Vice President/Branch Manager of the Marysville, Mich., location, agrees. “I’ve worked at other corporate banks, and the difference between those and Citizens First is that they incentivized by dangling carrots for motivation but reacted with sticks for punishment. Citizens First offers carrots, but there are no sticks; they build you up to perform better rather than beat you down to make you perform.”
Service First
While the services Citizens First offers its customers are similar to other financial institutions — commercial lending, consumer loans, etc. — the difference is in the service delivery. “We put service first by doing more than our customers expect,” says Campbell. “Accuracy. Courtesy. Creativity. Partnership. Responsiveness. That’s what our customers expect, and that’s what they continually receive.”
“That’s no marketing creation,” insists Campbell. “That came from within our organization. It’s our vision, our North Star. If we follow that, we’ll always know we’re heading in the right direction.”
Putting an Emphasis on Community
“A lot of banks like to give the impression that they’re there for the community, but Citizens First is different,” says Shafranski. “We live it every day.”
Citizens First’s contribution to the community is ubiquitous. It’s in their charitable foundation valued at more than $20 million, which has donated $300,000 over 5 years to subsidize physical exams for Port Huron women. It’s in a $1 million donation to build a state-of-the-art YMCA, as well as a $1 million donation to fund a new building at the local community college dedicated to the training and retraining of employees. And it’s in their partnership with the City of Port Huron and the Acheson Foundation, whereby Citizens First committed $4 million of bank capital over 2 years to create loans for citizens who normally wouldn’t qualify due to low credit standing. “We were able to adjust qualifiers and put a lot of first-time home buyers into homes,” says Campbell. “It’s very gratifying.”
Citizens First also steps up to the plate when they see a local business struggling. About a year ago, the president of the Economic Development Alliance called Citizens First with news that a major manufacturing facility was going to be liquidated; as a result, 200 well-paying jobs would be lost — a major blow to the community. In less than 90 days, Citizens First was able to secure a buyer, structure the loan, and finance the sale and purchase of the plant. “We’re in a position to make a difference,” says Maria Rutuznik, Director of Administrative Services. “We’re of significant size, but we’re not so large that we’re unable to react when our community has a need. It’s a partnership; by strengthening the community, we become stronger. It’s a self-perpetuating cycle.”
The Future
On Jan. 9, 2004, Citizens First acquired Metro Bank, which consists of three branches located in Oakland County. This marks the beginning of what Campbell terms “cautiously aggressive growth” for Citizens First, whose goal is to create a strong presence in Oakland and Wayne counties. “We’re not looking to grow for the sake of growing,” says Campbell. “Metro Bank had the same culture, a similar strategic plan, and the sellers were of the highest integrity. In addition, I made it a condition that the existing management team and boards of directors remained intact, thereby ensuring the decision-making power resides where it belongs — within the community.” Plante & Moran was instrumental in bringing the two banks together.
“Plante & Moran?” asks Campbell, when I ask him about their nine-year relationship with our firm. “I’d say our relationship is dicey,” he laughs. “Just kidding. Typically, I don’t have a lot of use for consultants; they borrow your watch and then tell you what time it is. But when I step back and look at how far we’ve come over the past few years, I think — no, I know — that we could not be where we are today if we hadn’t had Plante & Moran as a partner. From embarking on the IPO process and developing an incentive-based compensation system, to guiding us through our computer conversion and assisting with 404 controls, they’ve always been there. They react quickly to our needs — and some of our needs are immediate. I’m continually impressed at the consistency and quality of their work and the service they provide.”
Citizens First is growing in other ways as well. They’re in the process of developing a new platform of financial services, some of which will be unique to the industry. They’re currently revamping their website to enable all customers to access a custom site tailored specifically to their needs. Finally, earlier this year, Citizens First developed a courier service to address a growing need to help customers transport money. “Look!” motions Campbell toward the window. “There’s one now.” Sure enough, a large, white Citizens First van glides slowly by.
I wonder if they’re listening to “Moon River.”
