Citizen’s Bank President Gary Gall says the bank has been in the spotlight lately as it undergoes scrutiny by Federal Regulators to improve its financial position. The FDIC has directed the bank to make improvements in two areas, one is to raise capital and the other is to reduce the number of non-performing assets, in other words, get rid of some of the Bank Owned properties. On that end, Gall says the Bank is making progress.
“Last week we did close Northstar Mine and that’s off the books. We have seen this year, more offers on our foreclosed properties than we saw all of 2010. We’re having a lot of activity.”
Gall says 8 to 11 properties are currently in escrow and he says they are looking forward to getting some of these properties sold and off the books and turned into cash.
As for raising capitol, the FDIC would like to see the bank raise capital to a level of 9 percent. Gall says that means Citizen’s Bank needs to raise about $12 million dollars. He that effort has been somewhat thwarted by restrictions that the Securities and Exchange commission and the Department of Corporations would like to impose on the buying and selling of bank stock.
“That’s what the final issue is discussing with the Department of Corporation. Once a person owns a stock, when do they have the right to trade it and is there any restriction on that trading. So we’re working on that.”
Gall says he has received a number of calls from people who say if the Bank receives approval for a capitol raise, they want to be a part of that, and says he appreciates the support the community has shown.
“It is thrilling to go around town and have people slap you on the back and say, ‘hey, we know the economy is not great, but hang in there.”
Gall says that is exactly what the Bank is trying to do.