Citizens Bancshares Cp SC (CITZ)

CFS Bancorp, Inc., an Indiana corporation, was incorporated in March 1998 and is the holding company for Citizens Financial Bank (the Bank) The Company offers a wide variety of checking, savings, and other deposit accounts. It also offer investment services and securities brokerage targeted to individuals, families, and small- to medium-sized businesses in its primary market areas through a non-affiliated third-party provider. The Company has increased its business product offerings over the past few years to enhance its opportunity to serve the cash management needs of its client base. These products include public fund deposits, a full array of sweep products including repurchase sweep accounts, zero balance accounts, remote deposit capture, positive pay and merchant services, business overdraft protection, business online banking, and other cash management related services. The Company's business banking group is primarily responsible for developing relationships with small- to medium-sized businesses within the communities it serves by providing various loan, deposit, and cash management products and services. The Company originates commercial and retail loans. Included in the commercial loan portfolio are commercial and industrial, commercial real estate (owner occupied, non-owner occupied, and multifamily), and construction and land development loans it directly originated as well as syndication and participation loans it purchased prior to mid-2007. The Company's commercial lending portfolio includes commercial and industrial, commercial real estate (owner occupied, non-owner occupied, and multifamily), construction and land development loans, and participations purchased. The business banking group is responsible for growing its commercial loan portfolio by generating small- to medium-sized business relationships, which includes cross-selling all bank products and services. The Company continues its strategic shift from commercial real estate to commercial and industrial lending. The Company focuses is small- and medium-sized business relationships, which are generally secured by business assets including accounts receivable, inventory, and equipment and typically include the personal guarantees of the principals of the business. The commercial loan portfolio also includes loans secured by owner occupied, non-owner occupied, and multifamily real estate, generally with terms of three to ten years and an amortization period of 25 years or less. The Company provides construction loans for various commercial real estate and multifamily residential projects. It also originates loans to developers for the purpose of developing the land (e.g., roads, sewer, and water) for sale. The Company currently operates 22 full service banking centers in Lake and Porter counties in Northwest Indiana and in Cook, DuPage, and Will counties in Illinois. The Company faces significant competition both in making loans and in attracting deposits. The most direct competition for deposits has historically come from savings banks, commercial banks, and credit unions. The Company faces additional competition for deposits from short-term money market funds, other corporate and government investment securities funds, and other non-depository financial institutions such as brokerage firms and insurance companies. The Company and the Bank are extensively regulated under applicable federal and state laws and regulations.