Citizens Trust Bank Acquires the Peoples Bank Full Service Branch in Lithonia, Georgia

/PRNewswire / -- Citizens Trust Bank, the banking subsidiary of Citizens Bancshares Corporation, is pleased to announce that it has completed the purchase of the Peoples Bank branch in Lithonia, Georgia. The acquisition of the Lithonia branch of Peoples Bank will provide Citizens Trust Bank with an estimated $50 million in additional deposits and a projected $400 million in total assets.

Under the leadership of President and CEO, James E. Young, Citizens Trust Bank is living up to its commitment to its shareholders and customers by continuing to grow while maintaining a strong and solid foundation. "We believe the purchase of this branch will add significantly to our already strong presence in DeKalb County. We welcome our new Lithonia associates to our family and are looking forward to working with them," stated Young. "Together, we are able to offer the customers personalized service with a familiar face and a more convenient banking experience."

The addition of the new location will increase Citizens Trust Bank's financial centers from 10 to 11, throughout Georgia and Alabama. Our new customers of Lithonia can look forward to the convenience of having more locations to do their banking. Citizens Trust Bank has completed several successful mergers and acquisitions; therefore we believe the transition for our customers from Peoples Bank to Citizens Trust Bank will be seamless.

Citizens Bancshares Corporation is a holding company that provides a full range of commercial and personal banking services to individual and corporate customers. Citizens Trust Bank, formed in 1921, is committed to enabling their customers and the community to realize dreams of economic empowerment. As a leader in the financial services industry, Citizens Trust Bank operates under a state charter and currently serves Georgia and Alabama with eleven financial centers. As of September 30, 2008, Citizens Bancshares Corporation had total consolidated assets of approximately $335 million, net loans of approximately $212 million, total deposits of approximately $287 million, and shareholders' equity of approximately $33 million. For more information on Citizens Trust Bank please visit www.CTBconnect.com.

Sandler O'Neill + Partners L.P. served as financial advisor to Citizens Trust Bank in the acquisition and Hunton & Williams LLP served as legal advisor to Citizens Trust Bank.

Statements concerning future performance, events, expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Specific factors include, but are not limited to, the ability to continue to grow Citizens Trust Bank and the services it provides, the ability to successfully integrate new business lines and expand into new markets, competition in the marketplace and general economic conditions. The information contained in this release should be read in conjunction with the consolidated financial statements and notes included in Citizens Bancshares Corporation's most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Results of operations for the most recent quarter are not necessarily indicative of operating results for any future periods. Any projections in this release are based on limited information currently available to management, which is subject to change. Although any such projections and the factors influencing them will likely change, the bank will not necessarily update the information, since management will only provide guidance at certain points during the year. Such information speaks only as of the date of this release. Additional information on these and other factors that could affect our financial results are included in filings by Citizens Bancshares Corporation with the Securities and Exchange Commission.

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Recession Puts a Major Strain On Social Security Trust Fund

The U.S. recession is wreaking havoc on yet another front: the Social Security trust fund. With unemployment rising, the payroll tax revenue that finances Social Security benefits for nearly 51 million retirees and other recipients is falling, according to a report from the Congressional Budget Office...

Washington Post article:
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/30/AR2009033003291.html

Banks Uncomfortable With Spending Restrictions of Taxpayer Bailout Money

/PRNewswire/ -- As history has shown and continues to prove, every time the U.S. government gets involved with something, whatever it is becomes slower, costs more, and satisfies less. James Wilson from ForeclosureWarehouse.com stated that our recent taxpayer-backed funds known as the economic stimulus plan has too little oversight according to citizens and many in government, and too many restrictions and controls according to some recipients. Because of executive pay restrictions, several banks of varying sizes have decided to give the money they received back or refuse it.

The funds were originally needed, it was proposed, to avoid collapse of financial institutions, but has exposed the willingness of banks to spend the money as they see fit, on corporate extravagance like jets and executive bonuses, and supporting local community projects like zoos and opera companies, for example.

The banks dislike being told that in order to receive the money from the stimulus plans intended to keep them from collapsing, the banks must postpone evictions, modify mortgages for distressed homeowners, slash dividends, cancel employee training and morale-building exercises, withdraw offers of employment to foreigners, and allow shareholders to vote on their executive pay packages.

If the government were restricted in the same way by the citizens, such as the repeated use of military aircraft to fly willy-nilly at the discretion of the speaker of the House, Nancy Pelosi, at the taxpayers' expense, for example, it is certain that the government would loudly complain.

And who can blame the citizens for wanting to rein in the spending of the government, something the government has never done and continues not to do.

Some say that the stimulus package conditions don't go far enough, while others complain of fascism - privately owned companies controlled by the government.

James Wilson agrees with banking experts who warn that expecting weak banks to carry out the policies of the government could exacerbate the situation, forcing banks to engage in lending practices that cause them more losses and places them into more precarious positions, involving the government even more, or closing their doors for good.

It has been reported that some in government, like Barney Frank and Chris Dodd, had for years, encouraged or pressured lending institutions Freddie Mac and Fannie Mae, to approve loans to more people that traditionally would not qualify for loans for the purpose of allowing more people to own their homes. Now that the government controls these two companies, these lenders have been told to spend billions of dollars buying bundles of mortgages (of which there are no buyers), and to allow homeowners to refinance their loans even with no equity on the part of the borrower. In other words, the banks will lose less money than by receiving foreclosed properties that would have to be sold at a discounted price resulting in a greater loss.

This scenario is similar to a gangster putting a gun to someone's head and telling them to "buy, or else." But public outrage over the continuously growing size of not one but several stimulus packages has pressured politicians to exercise more control over how the taxpayers' money will be used, or will not be used by the banks and businesses receiving part of the bailout.

Government mandates that banks must approve loans and must wait longer to collect their repayment, yet must not evict people who cannot repay their obligations leading to further bank losses and expenses. Keeping insolvent banks operational merely prolongs the inevitable collapse due to the weakening of the banks and their inability to collect money owed to them from borrowers.

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NIA Says Americans Should Prepare for Hyperinflation

/PRNewswire/ -- The National Inflation Association today released the following statement to its http://inflation.us/ members:

"The Federal Reserve's announcement on Wednesday to expand its balance sheet by $1.15 trillion puts our country on a direct path towards hyperinflation.

By spending $300 billion on long-term U.S. Treasuries, $750 billion on worthless mortgage-backed securities, and $100 billion on other federal agency debt; the Federal Reserve will be doing nothing more than printing $1.15 trillion out of thin air, which means Americans are guaranteed to see a sharp decline in the purchasing power of their U.S. Dollars.

Wednesday's news brings total funds allocated by the Federal Reserve and United States Treasury during the financial crisis up to $11.4 trillion and although only $2.8 trillion has so far been spent, we believe the full $11.4 trillion will inevitably be spent.

If the Federal Reserve simply allowed AIG to fail, the free-market would've efficiently reorganized the company in bankruptcy. The $165 million in employee bonus contracts, that Congress has been so eager to express outrage about, would've been wiped out completely. The failure of AIG would not have brought down the U.S. financial system. However, bailing out every financial firm on Wall Street will.

Federal Reserve Chairman Ben Bernanke commented this past weekend on 60 Minutes that our country's biggest risk is we don't have the political will and commitment to solve our current financial problems. We respectfully disagree with Chairman Bernanke and believe our country's biggest risk is hyperinflation, that will come as a result of the Federal Reserve's actions.

Up until now, the United States has been successful at keeping inflation somewhat under control by borrowing the money for much of its spending from China. However, China's Premier of the State Council Wen Jiabao said last week that he is worried about the safety of the U.S. Treasuries they are holding. By China publicly acknowledging their fears, not only is it possible China will stop buying U.S. Treasuries, but they could take advantage of the Federal Reserve buying U.S. Treasuries and use it as an opportunity to sell.

The U.S. Consumer Price Index rose in February by 0.4 percent, which equals an annualized inflation rate of 4.8 percent. We believe inflation would be much higher if it wasn't for all of the temporary factors driving consumer prices down such as the forced liquidations of hedge funds, de-leveraging of banks, going out of business sales of retail stores, etc.

These temporary factors will soon be gone. They are likely to end at the same time as the Federal Reserve begins printing trillions of Dollars and China potentially becomes a net seller of U.S. Treasuries. The perfect storm is ahead for massive inflation to begin in the second half of 2009. Being that our country already has an $11 trillion national debt and $55 trillion in unfunded liabilities for social security, Medicare, and other social programs; hyperinflation during the next decade is becoming less the worst case scenario and more the most likely scenario.

Our country's current financial crisis is a walk in the park compared to what is ahead. Despite rapidly rising unemployment rates, Americans today can still purchase very cheap food, clothing, and gas. We can't take this for granted and must prepare for what is ahead.

If you prepare for the worse, the best will always happen. Americans who begin preparing for hyperinflation now, not only could preserve their purchasing power in the years ahead, but could potentially become wealthy as Americans hoarding U.S. Dollars, bonds and other dollar-denominated assets lose everything. We believe there will soon be a Gold, Silver, and Agriculture boom that will make the dot-com and Real Estate booms look small in comparison."

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Recession Has No Effect on Mid-Income Retirement Hopes

/PRNewswire/ -- The recession has forced nearly two in five (39 percent) Americans to save less for their golden years, but it hasn't changed their perception about whether middle income families can save for retirement.

Thirty-five percent of Americans believe it is possible for a typical middle income family to save for a secure retirement, according to a new COUNTRY Financial Survey. While that percentage doesn't necessarily paint a positive picture, it's virtually unchanged from the prior two years - 36 percent in 2008 and 37 percent in 2007 - when the US economy was in a better state.

Yet, the recession is having an impact on people's plans as more than one-quarter of the adults (26 percent) surveyed say the effects of today's economy will cause them to delay their retirement.

"It's encouraging that all the bad news has not caused people to give up hope," says Keith Brannan, vice president of Financial Security Planning at COUNTRY. "If you're struggling, review and adjust your financial plan to get by in the short-term without losing sight of long-term goals like retirement. If you don't have a plan, you may want to talk to a professional who can help you create a tangible plan to get from where you are today to where you want to be in the future."

Genders split on best saving skills for the future
-- Overall, Americans think women (37 percent) are better at saving and
investing for the future than men (29 percent). However, men think
they are better at this task (42 percent) while women believe they
have the upper hand (49 percent).


Employers pull back on contributions
-- Nearly one-quarter of Americans (23 percent) who participate in a
work-sponsored plan like 401(k) say their employer has cut
contributions to their retirement account.


"If your employer has cut their contributions to your retirement account, you have several options to choose from to maximize your retirement plan," adds Brannan. "The worst thing you can do is to stop contributing to retirement just because you no longer have a company match."

Tips for maintaining retirement savings in tough times:
-- Establish and maintain an emergency fund. In these tough times, it's
important to have an emergency fund sufficient to cover at least three
months of your expenses saved in a highly-liquid account, such as a
money market mutual fund or a savings account.
-- Try not to borrow against your 401(k) account. Besides borrowing
against your future, if you leave your employer, you may still be
responsible for paying the loan back within 60 days. If you can't
repay it within that time, IRS penalties could be imposed.
-- If your employer stops matching your 401(k) contributions, consider
redirecting your contributions to a Roth IRA. In addition to
providing tax-free income once you retire, you can liquefy your
contributions at any time for any reason without IRS penalty or income
tax consequences.

For more information on Americans' sentiments about financial security, please visit www.countryfinancialsecurityindex.com.

The March COUNTRY Retirement survey is based on a national telephone survey of 3,000 Americans and is compiled by Rasmussen Reports, LLC (www.rasmussenreports.com), an independent research firm. The margin of sampling error for this survey is approximately +/- 2 percentage points with a 95 percent level of confidence.

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Peach State Credit Solutions Announces “Fresh Start” Program

(BUSINESS WIRE)--Peach State Credit Solutions is pleased to announce the “Fresh Start” program designed to award free credit repair to one individual per month.

It is no secret that some have become over-extended while others are still paying for credit mistakes made long ago. These factors, as well as others, lead to a lower credit score. Often times an individual’s credit score is not an accurate picture of their current situation. The simple service that Peach State Credit provides can give most people with bad credit a second chance.

All Peach State Credit Solutions customers will be automatically considered to win. The winning candidate will receive a full refund on the credit restoration service, a value of $695.00. Winners will be chosen on the last Friday of every month starting March 27, 2009.

“It is our ethical responsibility to do what we can do have a positive impact on the community. By helping to restore the credit rating of one individual per month for free, we can be part of the solution. Fresh Start can improve the standard of living for a very deserving individual,” says William Mikula, Manager of Peach State.

“Many can see the huge impact credit has on their daily lives to purchase a car or home, when applying for employment, or even in trying to obtain utility services. Our goal is to raise a general awareness of the individual credit score and the importance of resolving any outstanding issues,” explains Robert Groover, CEO of Peach State.

To apply, fill out the contact page at www.peachstatecredit.com or please email your name, contact phone number, and email address to contact@peachstatecredit.com. You can also apply by mail or in person at:

Peach State Credit Solutions, Inc.
5345 Bells Ferry Road
Atlanta, GA 30102

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Fed Urged to Require Banks to Get Customers' Permission First Before Enrolling Them in Expensive Overdraft Programs

/PRNewswire-USNewswire/ -- Banks shouldn't be allowed to automatically enroll their customers in expensive overdraft loan programs, according to Consumers Union, the nonprofit publisher of Consumer Reports. The group urged the Federal Reserve Board in a letter today to require banks to get their customers' permission first before signing them up for high fee overdraft loan programs for overdrafts triggered by ATM and debit transactions.

The Fed is currently considering whether consumers should be given the right to opt-in before banks can enroll them in overdraft programs covering ATM and debit transactions or simply a right to opt-out after the bank has signed them up for overdraft coverage. The Fed is accepting public comment on these two proposals through March 30. For a copy of Consumers Union's letter to the Fed, see: http://www.consumersunion.org/pub/pdf/overdraft-comments-309.pdf

"Most banks automatically enroll their customers in so-called 'overdraft protection' programs, which are really high-cost loans that cost consumers billions of dollars every year," said Lauren Zeichner Bowne, Staff Attorney for Consumers Union. "The Federal Reserve Board should protect consumers from unfair overdraft loan programs by stopping the fees unless the consumer makes the choice to opt-in to the loan program."

Banks collect an estimated $7.8 billion in fees from overdrafts triggered by debit and ATM transactions. These overdrafts could be prevented with a simple warning or if the transaction was declined. Instead, most banks let these transactions go through and charge consumers a fee for each overdraft. The FDIC found that the median fee for overdrafts is $27, even though the average overdraft is triggered by transactions totaling $17.

A national poll by the Consumer Reports National Research Center found that many consumers do not understand how overdraft programs work. According to the poll, 39 percent of consumers thought that their bank would either deny a debit transaction or allow it to proceed without charging a fee if it would overdraw their account. Nearly half of those polled (48 percent) thought their ATM card would not work if they attempted to withdraw more money than was available in their account.

Consumers Union released the poll results in comments filed in support of the opt-in proposal with the Federal Reserve Board. The group opposes the opt-out proposal because the evidence suggests that most consumers will not change their status if banks automatically enroll them in overdraft programs.

The vast majority of consumers have accounts at banks that automatically enroll customers in programs that allow debit and ATM transaction to trigger overdrafts. An FDIC study found that "institutions that use automated programs to cover overdraft obligations accounted for almost 73 percent of deposit dollars held in the study population banks."

Automatic fee-based overdraft programs are the most expensive option for consumers so banks don't have an incentive to sell lower cost services, such as linked accounts or lines of credit. The FDIC has concluded that the fees assessed for these other types of programs are significantly lower than for automatic overdraft loan programs.

The Consumer Reports poll found that the overwhelming number of consumers want a real choice when it comes to overdraft programs. The poll found that two-thirds of consumers (66 percent) said they prefer to expressly authorize overdraft coverage, so that there would be no overdraft loan -- or fee -- until they opted in to the service. Similarly, two thirds (65 percent) said that banks should deny a debit or ATM transaction if the checking account balance is too low.

In its comments to the Federal Reserve Board, Consumers Union also urged the Board to declare that fee-based overdraft loans are extensions of credit that should be subject to the Truth in Lending Act and Regulation Z requirements to disclose their cost in terms of an annual percentage rate. For the average overdraft, the APR would equal 4,140 percent.

The FDIC has found that banks commonly process transactions from largest to smallest, which increases the number of overdrafts. Consumers Union urged the Fed to restrict this practice when it issues its new overdraft regulations. In addition, the group called on the Fed to prohibit banks from charging fees if the overdraft was triggered because the bank placed a hold on a customer's deposit, and to cap the daily and monthly totals for allowable overdraft fees.

"If banks believe that overdraft programs are truly beneficial, then they should be required to persuade their customers to sign up before they can charge them such high fees," said Zeichner Bowne. "The Fed should end automatic enrollment in costly overdraft programs by giving consumers the choice to opt-in. Consumers concerned about high cost overdraft fees have until March 30 to support these important new rules." Consumers can learn more and submit comments to the Fed at: http://cu.convio.net/OverDraft

The Consumer Reports National Research Center conducted a telephone survey using a nationally representative probability sample of telephone households. 679 interviews were completed among adults aged 18+ who reported having a checking account with an ATM card or a debit card. Interviewing took place over February 5-8, 2009. The sampling error is +/- 3.8% at a 95% confidence level.

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.

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