Proud ly Serving Our Communities ANNUAL REPORT 2019 Dear Shareholders, Clients, Employees and Friends: We are very proud of our team’s accomplishments during 2019. Citizens National Bank’s (CNB) performance continues to be strong by almost every measure, allowing us to continue to have an eye toward the future. As much as we are pleased with our performance in 2019, we are even more optimistic and excited about the future. Technology is prevalent in every aspect of our lives nowadays, and at a time when many institutions want to interact with their customers digitally first, we want to ensure our clients have a great experience regardless of how they engage with our team. We strive to be a relationship bank first with strong digital channels to support our clients’ needs, because we still believe community banking is about people. To ensure we continue to meet or exceed our clients’ expectations, including those who want more robust banking technology, we are committed to continuing investments in digital channels. We believe we are the most convenient bank in the area between our branch network and digital channels, including an excellent mobile banking app and online banking products. There are a few important components involved in strong bank performance, including the team of bankers, management and the Board of Directors – and, of course, the communities. We are fortunate to be in great communities in East Tennessee. During 2019, we expanded into a new market by opening a new branch in Morristown, located at 4320 Evan Greene Plaza. We also had an opportunity to purchase a bank building to relocate our Seymour traditional branch, located at 10641 Chapman Highway. We are excited about both of these branches as great additions to the CNB branch footprint. Having a strong, dedicated team is important for most businesses. CNB is no different, and we are grateful for the team of loyal, dedicated bankers and staff that represent CNB. Our team goes above and beyond to ensure that our clients are served in a professional and courteous manner. During 2019, CNB posted record earnings resulting in an ROA of 1.91% and ROE of 16.75%. Strong earnings are critical for a bank to grow its capital, allowing for continued growth in loans and deposits. Our strong capital position allows us to provide for the credit needs in our communities, with over $100 million in mortgage and commercial loans originated during 2019. We are a 5-Star rated bank by BauerFinancial, which is the highest rating available. We also believe in giving back to the community. Because the community banks with CNB, we are able to donate approximately $225,000 to local organizations and area schools. Our employees also donated thousands of hours promoting financial literacy in area schools, as well as supporting numerous community and civic events. On behalf of our Board of Directors and our experienced team of bankers, we are thankful that you have chosen CNB as your bank. We know you have a choice and are grateful that you place your trust in CNB. We appreciate the opportunity to be your financial partner and look forward to a great 2020. Sincerely, Jason A. Holliman President David C. Verble, Chief Executive Officer A Sample of Our Community Involvement and Support Alzheimer’s Tennessee, Inc. American Business Women’s Association American Cancer Society American Lung Association Arrowmont School of Arts and Crafts Boy Scouts of America Boys & Girls Club of the Smoky Mountains Boys & Girls Clubs of Dumplin Valley CureSearch for Children’s Cancer Dandridge Lions Club Dandridge Ministerial Association Dr. Robert F. Thomas Foundation Inc. Ducks Unlimited Inc. Economic Development Alliance of Jefferson County Friends of Seven Islands State Birding Park, Inc. Friends of the Great Smoky Mountains Gatlinburg Firefighters Association Gatlinburg Hospitality Association Inc. Gatlinburg Rotary International Inc. Helen Ross McNabb Foundation Keep Sevier Beautiful King Family Library Kiwanis Club of Sevierville Kiwanis of Morristown Knoxville Habitat for Humanity Leadership Sevier Ministerial Association Temporary Shelter (MATS) Morristown AM Rotary Morristown Leadership Operation Community Salute Pigeon Forge Hospitality Association Project Sevier Inc. Ronald McDonald House of Knoxville Santa Fund Senior Citizens Center of Morristown Senior Citizens Home Assistance Senior Housing Crime Prevention Foundation, Inc. Sevier County 4-H Club Sevier County Economic Development Sevier County Food Ministries Sevier County Humane Society Sevier County Partners in Progress Education Fund Sevier County Retired Teachers Association Sevier County Ruritan Club Sevier County Special Olympics Sevierville Commons Association Sevierville Hospitality Association Sevierville Rotary Club Sevierville Sunrise Rotary Club Smoky Mountain Area Rescue Ministries Smoky Mountain Children’s Home Smoky Mountain Young Life Susan G. Komen® East Tennessee Tennessee 4-H Foundation The Dollywood Foundation Thompson Cancer Survival Center Foundation United Way of Hamblen County United Way of Jefferson County United Way of Sevier County Walter State Community College Foundation Women’s Care Center of Sevier County Youth Leadership Hamblen SEVIERVILLE 200 Forks of the River Pkwy 801 Dolly Parton Pkwy 305 New Riverside Dr *706 Winfield Dunn Pkwy, beside Kroger *1414 Pkwy, inside Walmart *741 Dolly Parton Pkwy, inside Food City *2339 Newport Hwy, inside Food City PIGEON FORGE 2661 Pkwy *220 Wears Valley Rd, inside Kroger *3064 Teaster Lane, inside Food City GATLINBURG 906 East Pkwy 110 Cherokee Orchard Rd SEYMOUR 10641 Chapman Hwy *10721 Chapman Hwy, Ste 1, beside Kroger KODAK 3014 Winfield Dunn Pkwy *2946 Winfield Dunn Pkwy, inside Food City MORRISTOWN 4320 Evan Greene Plaza JEFFERSON COUNTY 720 South Hwy 92, Dandridge 2002 Walnut St, White Pine *1507 O’Dell Ave, inside Food City, Jefferson City KNOX COUNTY 813 Huckleberry Ln, Strawberry Plains *7420 Chapman Hwy, inside Walmart, Knoxville *Open Mon-Fri 10am-7pm and Sat 9am-2pm CNB Call Center (865) 429-7521 Wealth Management Center (865) 429-7916 Courthouse Title & Escrow, LLC (865) 286-8016 www.CNBTN.com (865) 453-9031
Transcript
Proud ly Serving Our Communities
ANNUAL REPORT 2019
Dear Shareholders, Clients, Employees and Friends:
We are very proud of our team’s accomplishments during 2019. Citizens National Bank’s (CNB) performance continues to be strong by almost every measure, allowing us to continue to have an eye toward the future. As much as we are pleased with our performance in 2019, we are even more optimistic and excited about the future. Technology is prevalent in every aspect of our lives nowadays, and at a time when many institutions want to interact with their customers digitally first, we want to ensure our clients have a great experience regardless of how they engage with our team. We strive to be a relationship bank first with strong digital channels to support our clients’ needs, because we still believe community banking is about people. To ensure we continue to meet or exceed our clients’ expectations, including those who want more robust banking technology, we are committed to continuing investments in digital channels. We believe we are the most convenient bank in the area between our branch network and digital channels, including an excellent mobile banking app and online banking products.
There are a few important components involved in strong bank performance, including the team of bankers, management and the Board of Directors – and, of course, the communities. We are fortunate to be in great communities in East Tennessee. During 2019, we expanded into a new market by opening a new branch in Morristown, located at 4320 Evan Greene Plaza. We also had an opportunity to purchase a bank building to relocate our Seymour traditional branch, located at 10641 Chapman Highway. We are excited about both of these branches as great additions to the CNB branch footprint.
Having a strong, dedicated team is important for most businesses. CNB is no different, and we are grateful for the team of loyal, dedicated bankers and staff that represent CNB. Our team goes above and beyond to ensure that our clients are served in a professional and courteous manner.
During 2019, CNB posted record earnings resulting in an ROA of 1.91% and ROE of 16.75%. Strong earnings are critical for a bank to grow its capital, allowing for continued growth in loans and deposits. Our strong capital position allows us to provide for the credit needs in our communities, with over $100 million in mortgage and commercial loans originated during 2019. We are a 5-Star rated bank by BauerFinancial, which is the highest rating available. We also believe in giving back to the community. Because the community banks with CNB, we are able to donate approximately $225,000 to local organizations and area schools. Our employees also donated thousands of hours promoting financial literacy in area schools, as well as supporting numerous community and civic events.
On behalf of our Board of Directors and our experienced team of bankers, we are thankful that you have chosen CNB as your bank. We know you have a choice and are grateful that you place your trust in CNB. We appreciate the opportunity to be your financial partner and look forward to a great 2020.
Sincerely,
Jason A. Holliman President
David C. Verble, Chief Executive Officer
A Sample of Our Community Involvement and SupportAlzheimer’s Tennessee, Inc.American Business Women’s AssociationAmerican Cancer SocietyAmerican Lung AssociationArrowmont School of Arts and CraftsBoy Scouts of AmericaBoys & Girls Club of the Smoky Mountains Boys & Girls Clubs of Dumplin ValleyCureSearch for Children’s CancerDandridge Lions ClubDandridge Ministerial AssociationDr. Robert F. Thomas Foundation Inc.Ducks Unlimited Inc.Economic Development Alliance of Jefferson CountyFriends of Seven Islands State Birding Park, Inc.Friends of the Great Smoky MountainsGatlinburg Firefighters AssociationGatlinburg Hospitality Association Inc.Gatlinburg Rotary International Inc.Helen Ross McNabb FoundationKeep Sevier BeautifulKing Family LibraryKiwanis Club of SeviervilleKiwanis of Morristown Knoxville Habitat for HumanityLeadership SevierMinisterial Association Temporary Shelter (MATS)Morristown AM RotaryMorristown LeadershipOperation Community SalutePigeon Forge Hospitality AssociationProject Sevier Inc.Ronald McDonald House of KnoxvilleSanta FundSenior Citizens Center of MorristownSenior Citizens Home AssistanceSenior Housing Crime Prevention Foundation, Inc.Sevier County 4-H ClubSevier County Economic DevelopmentSevier County Food MinistriesSevier County Humane SocietySevier County Partners in Progress Education FundSevier County Retired Teachers AssociationSevier County Ruritan ClubSevier County Special OlympicsSevierville Commons AssociationSevierville Hospitality AssociationSevierville Rotary ClubSevierville Sunrise Rotary ClubSmoky Mountain Area Rescue MinistriesSmoky Mountain Children’s HomeSmoky Mountain Young LifeSusan G. Komen® East TennesseeTennessee 4-H FoundationThe Dollywood FoundationThompson Cancer Survival Center FoundationUnited Way of Hamblen CountyUnited Way of Jefferson CountyUnited Way of Sevier CountyWalter State Community College FoundationWomen’s Care Center of Sevier CountyYouth Leadership Hamblen
SEVIERVILLE200 Forks of the River Pkwy 801 Dolly Parton Pkwy 305 New Riverside Dr *706 Winfield Dunn Pkwy, beside Kroger *1414 Pkwy, inside Walmart *741 Dolly Parton Pkwy, inside Food City *2339 Newport Hwy, inside Food City
PIGEON FORGE2661 Pkwy *220 Wears Valley Rd, inside Kroger *3064 Teaster Lane, inside Food City
Officers Billy G. Kilpatrick Chairman of the Board Lynn T. Webb Vice Chairman of the Board Daniel L. Webb Secretary to the Board David C. Verble Chief Executive Officer Jason Holliman President James K. Porter Jr. Executive Vice President & Chief Lending Officer Anthony Ray Senior Vice President & Chief Financial Officer David S. Reagan Senior Vice President & Loan Officer Pamela S. Ihli Senior Vice President & Chief Technology Officer Chris Horn Senior Vice President & Market President, Hamblen and Jefferson Counties Terry Hackney Senior Vice President & Loan Officer Kendall Polk Senior Vice President & Loan Officer Rodney E. Tarwater Senior Vice President & Loan Officer Wes Farragut Senior Vice President & Loan Officer Trey Atchley Senior Vice President & Loan Officer Greg Griffith Vice President & Investment Center Manager Chris Hubbard Vice President & Risk Officer Sharon Greene Vice President & Mortgage Banking Sales Manager Lois A. Ownby Vice President & Mortgage Loans Lender Greta Cole Vice President & Branch Manager Nicholas Huskey Vice President & Loan Officer Mark Davis Vice President & Auditor
Kim Brackins Vice President & Deposit Operations ManagerJeremy Carrigan Vice President & Senior Information Security Officer Jason Stansbury Vice President & Information Systems Officer Hope Sellars Vice President & Treasury Manager Angie Taylor Vice President & Director of Training Amy Ray Assistant Vice President & Bank Secrecy Act Compliance Officer Melissa Moon Assistant Vice President & Branch Administrator Sandy Blazier Assistant Vice President & Branch Manager Amy Bryant Assistant Vice President & Branch Manager Nicole Dome Assistant Vice President & Branch Manager Chuck Godfrey Assistant Vice President & Branch Manager Sandy McCarter Assistant Vice President & Branch Manager David Moore Assistant Vice President & Branch Manager Hannah Peterman Assistant Vice President & Branch Manager Christi Sutton Assistant Vice President & Branch Manager Sheila Webber Assistant Vice President & Branch Manager Christine Williams Assistant Vice President & Branch Manager Rita Garrett Assistant Vice President Janice Parker Assistant Vice President & Operational Accounts & Compliance Trevor Long Vice President & Loan Officer & Special Assets SupervisorRebekah Moore Assistant Vice President & Director of Credit Administration Jodi Ramsey Assistant Vice President & Marketing Director Jennifer D. Huskey Assistant Vice President Cash Management
Chrissy Cowan Assistant Vice President & Centralized Loans Processing Manager Julie Christensen Assistant Vice President & Security & Fraud Risk Management Selena Farragut Assistant Vice President & Human Resources Director Neal Smelcer Assistant Vice President & Information Systems Administrator Kurt Meyers Assistant Vice President & Collateral Risk and Appraisal ManagerLisa Young Vice President & Loan OfficerAshley Byrd Assistant Vice President & Retail Branch Administrator Adriane Bunch Banking Officer & Assistant Branch Manager Jennifer DeFoe Banking Officer & Executive and Board Assistant Melissa Dixon Banking Officer & Assistant Branch Manager Jennifer Heinrich Banking Officer & Assistant Branch Manager Nathan Kelley Banking Officer & Assistant Branch Manager Daniel McNeely Banking Officer & Assistant Branch Manager Courtney Stansbury Banking Officer & Assistant Branch Manager Kellie Strange Banking Officer & Assistant Branch Manager Courtney Young Banking Officer & Assistant Branch Manager Stephanie Weckesser Banking Officer & Assistant Branch Manager Allen Edmundson Banking Officer & Assistant Auditor Paul Henry Banking Officer & Assistant Controller Jeremy Irick Banking Officer & Assistant Branch Manager Tiffany Samples Banking Officer & Credit Analyst Anthony McCarter Banking Officer & Facilities Manager J. P. Hackney Banking Officer & Financial Analyst
Becky Parrott Banking Officer & Central Information File Specialist Irene Schoofs Banking Officer & Centralized Loans Processing Assistant Kim Ball Banking Officer Collections Drew Taylor Banking Officer & Information Security Analyst Roxanne Prince Banking Officer & Lender I Pam Hembree Banking Officer & Mortgage Loan Processor Lisa Brown Banking Officer & Retail Branch Manager Sarah Duncan Banking Officer & Retail Branch Manager Betty Hall Banking Officer & Retail Branch Manager Shawn Miller Banking Officer & Retail Branch ManagerMackenzie Roberts Banking Officer & Retail Branch Manager Carrie Strickland Banking Officer & Assistant Human Resources Director Julie Vogel Banking Officer Susie Baisden Banking Officer Missy Douglas Banking Officer Connie Frye Banking Officer Laura Hass Banking Officer Loren Van Fossen Banking Officer Donna Wlas Banking Officer
Mission Statement
Our mission is to provide a positive and distinctive banking environment by exceeding Our Clients’ expectations with every interaction; serving Our Communities with an unwavering commitment, economically or otherwise, as a proud corporate citizen; ensuring Our People have the opportunity to grow personally and professionally; and providing Our Shareholders the benefits and rewards of ownership through enhanced enterprise value.
Board of DirectorsBilly G. KilpatrickChairman of the Board, Citizens National BankPresident, The Apple Barn and Cider Mill, Inc. Lynn T. WebbVice Chairman of the Board, Citizens National Bank
Logan CoykendallPresident, Hospitality Solutions, Inc.
Jason HollimanPresident, Citizens National Bank
Kevin KilpatrickVice President, The Apple Barn and Cider Mill, Inc.
Douglas SwaggertyPresident and CEO, Swaggerty Sausage Company
Kyle SwaggertyChairman, Swaggerty Sausage Company
David C. VerbleChief Executive Officer, Citizens National Bank
Larry WatersMayor, Sevier County
Daniel WebbSecretary of the Board, Citizens National Bank
2015 2016 2017 2018 2019
ASSETS ($ in thousands)
$1,125,000
$1,100,000
$1,075,000
$1,050,000
$1,025,000
$1,000,000
$975,000
$950,000
$925,000
$900,000
$875,000
$850,000
$825,000
$800,000
$775,000
$972,261
$902,190
$992,640
$1,054,777
$1,109,0
06
TOTAL STOCKHOLDERS’ EQUITY ($ in thousands)
2015 2016 2017 2018 2019
$130,000
$125,000
$120,000
$115,000
$110,000
$105,000
$100,000
$95,000
$90,000
$85,000
$80,000
$75,000
$99,909
$95,468
$117,024
$107,0
80
$129,108
LOANS ($ in thousands)
2015 2016 2017 2018 2019
$850,000
$825,000
$800,000
$775,000
$750,000
$725,000
$700,000
$675,000
$650,000
$625,000
$600,000
$575,000
$550,000
$525,000
$679,682
$628,997
$764,102
$829,324
$80
1,377
DEPOSITS ($ in thousands)
2015 2016 2017 2018 2019
$817,698
$724,195
$967,252
$857,0
98
$903,98
1$975,000
$950,000
$925,000
$900,000
$875,000
$850,000
$825,000
$800,000
$775,000
$750,000
$725,000
$700,000
$675,000
$650,000
$625,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
DEPOSITS AND OTHER LIABILITIES:
Deposits $ 967,252,739 $ 903,981,688
Other Liabilities 12,644,646 33,771,763
Total Liabilities 979,897,385 937,753,451
STOCKHOLDERS’ EQUITY:
Common Stock 700,000 700,000
Additional Paid-in Capital 25,600,000 25,600,000
Retained Earnings 100,654,399 92,181,024
Accumulated Other Comprehensive Income
2,154,238 (1,456,974)
Total Stockholders’ Equity 129,108,637 117,024,050
