State Bank Citizens

builds its 150-year foundation on family, community & change

STORY BY BRENDA MOREHEAD | PHOTOS BY JEFF MOREHEAD

Thewalls of Citizens State Bank in New Castle hold a wealth of history. 150 years to be exact. And if those walls could talk, the tales told would be of family, community, and change.

1873

Citizens State Bank was organized on July 3, 1873, just three days after new banking laws went into effect in Indiana.

1930s

During the Great Depression, Citizens State Bank used its financially sound position to acquire Central Trust & Savings and other small county banks, making Citizens State Bank an early pioneer in the concept of “branch banking.”

1968

The Maddox family purchased Citizens State Bank on September 9, 1968. James Maddox became president.

1973 Citizens State Bank, after 100 years in business, enlarged its main office in downtown New Castle.

2007

Citizens State Bank was able to thrive and expand into new markets during the 2007 - 2008 financial crisis.

2008

Dan Maddox, son of John Maddox, Jr., became the fourth generation of Maddox family actively involved in the bank operation.

2023

Citizens State Bank was named 2022 Large Business of the Year by the Chamber of Commerce at the annual Awards Gala.

Some of the original bricks in the basement of Citizens State Bank in New Castle.

Family

Across the 150 years since Citizens State Bank opened its doors, only two families have owned the bank. It was formed in 1873 by the Millikan family, with John Millikan serving as the bank’s first president, starting an association with the family that would span five generations before being purchased by the Maddox family in 1968. Dan Maddox, the current bank Chief Executive Officer, represents the fourth generation of his family to operate the bank.

The Maddox family’s original company, Rural Loan & Savings, was started by Dan’s great-grandfather, Raymond, in 1925. The business was a small consumer finance company that Raymond and his two sons, John R. Maddox and James B. Maddox, grew throughout Indiana and Michigan. In the 1950s, due to major banking legislation and reform, the Maddox family decided to focus on the banking side of the business. The family opened First National Bank in Hartford City and then started to buy up other small banking charters in east central Indiana, ultimately ending with Citizens State Bank in 1968.

In addition to New Castle and Hartford City, Citizens State Bank now has branches in Carmel, Fishers, Knightstown, Pendleton, Rushville and Union City. The New Castle bank building, at the corner of Broad and Main streets, was built in 1923 and expanded in 1973.

Maddox said he had no doubt that from an early age banking was the career path for him. He loved going into the office with his dad and granddad and hearing their stories of the banking business.

“I know a lot of kids really struggle with what they want to do, and I get that, but for me it was in the blood,” he said. “I never felt pressured by my parents to do it, but I gravitated toward it, and I love it.”

Community

Community banks like Citizens State Bank have some distinct advantages over larger national banks, Maddox said.

“A system of community banks can be laser focused on certain geographies because they are your neighbors and in the places you live,” he said. “The trust that builds is just so different. And it allows a lot better access to credit for communities that are outside the major metro areas that are already served by the largest banks in the country.”

A recent example of that community focus is Citizens State Bank’s response to business and community needs during the early days of the COVID pandemic, specifically the rapid implementation of the Paycheck Protection Program (PPP). During PPP, Citizens State Bank advanced funds to 900 area businesses, saving more than an estimated 7,000 local jobs.

“Community banks like ours really jumped on the program to deliver economic response. Bigger banks were a lot slower,” he said. “It was great to be able to jump into action and assist the community.”

Citizens State Bank and its commitment to the community was recognized recently at the New Castle-Henry County Chamber of Commerce annual awards gala as Large Business of the Year for 2022.

Change

Banking has seen a lot of changes since the days when tellers used manual change machines and typewriters. During the bank’s 150th celebration, visitors to the bank can view some of the antique banking items on display in the New Castle lobby and at Community Appreciation events to be held throughout the year.

Digital banking advancements over the past two decades have led to some of the biggest changes in the industry, Maddox said.

“What we find is that it is a multi-channeled approach,” he said. “People still want to come into the bank, so banking centers matter, but maybe they don’t want to come in for everything. The role of a banking center has changed from being a transactional hub to more of an informational hub where we’re troubleshooting with customers and coming up with solutions.”

But despite the technological advances, one thing has remained constant through the years – the impact banks make on a community, and on individual lives.

“It’s that moment where you can help a business grow and bring on new employees – or help that first time homebuyer buy that home and start their lives and their families’ lives, or get that first car,” Maddox said. “It’s those monumental events in people’s lives that we get to play an integral part of. To me, that’s the coolest thing about our job.”

We’re advocating for innovators through Entrepreneurship-Led Economic Development (ELED). Learn more at GrowInHenry.com

This collaboration with other community partners includes the Business

Builders workshop series and pitch contest. The 2023 winner is CJ’s Candies.

The Enterprise Loan Fund (ELF) is a revolving loan fund that offers an attainable funding option for local businesses.

Your EDC hosts the East Central Indiana Small Business Development Center (SBDC). They offer free resources and business consulting services.