Pacesetter, Citizens State merge

Customers won’t notice much difference in their banking experience after the finalization of a local merger today, other than a new sign and a new name.
Pacesetter Bank and Citizens State Bank have finalized a merger with a goal of keeping the banks competitive in a growing market, while still keeping a hometown focus to their business under the Citizens State Bank name.
All of the banks will remain the same, with Citizens’ original base in Hartford City and customers retaining their account numbers and information, but the merger will save the company money by cutting down on duplicate regulatory and audit costs.
But what’s most important to the company is remaining true to its local roots.
“Corporate isn’t sending in a bunch of suits to run the branch,” said marketing director Greg Zirkle. “It’s going to be the same hometown bank they’re used to.”
The bank is in its fourth generation of Maddox family ownership, with five family members still on its board of directors, and Zirkle sees the family’s commitment to the community as the “heart and soul of the company.”
“It’s not being bought out by some faraway company,” said Zirkle, adding that customers will “see all the same faces that they already see.”
Zach Chenoweth, agriculture and commercial loan officer for the Portland branch and a Portland native, sees this as the backbone of the company.
“We really try to advertise the fact that we’re still locally owned … and run,” said Chenoweth. “The only thing that changed is the sign outside.”
The Maddox family has a long history in east central Indiana, starting in 1920 when the original Maddox, Raymond, gained a majority share of Rural Loan & Savings in Hartford City.
In 1997, after decades of expansion and acquisition, including ownership of Bank of Montpelier and First National Bank of Hartford City, the first company merger was finalized, bringing the three banks together under the title of Pacesetter Bank.
With a separate company acquisition in 1968 of Citizens State Bank, the success of the original merger kept the family thinking of other opportunities for the future.
 “Seeing how the previous merger in the ’90s simplified … policies … they found that very effective,” said Zirkle. “It was one of those things they put off for a while for no real reason.”
The two banks continued to deal with competition from other banks, as well as with each other. This recent merger is meant to counteract that and keep the banks competitive, without also competing against one another.
“Especially in a town like Portland, where there are several banks … we’ll be able to have a unified front, work under one name … which will help us stay competitive,” said Zirkle.
Representatives say the merger will also help customers by allowing the bank to provide more for them, with an increase in services and the company’s legal lending limit, which is set at 15 percent of a bank’s net worth.
The unification will bring the bank’s assets to more than $440 million, more than tripling what Pacesetter Bank was worth alone.[[In-content Ad]]