For one local family-owned business, an economic downturn actually can mean more customers.
Citizens Savings & Loan Corp., which specializes in small loans ranging from about $2,000 to $40,000, tends to see its better customers gravitate toward large banks when times are good. But during tough economic times they typically come back, said the company's president and chief executive officer, Pat St. Charles.
"In late 2008 and 2009, like a lot of other financial companies and lenders, we did see delinquencies up as people's pay and hours were cut back, and along with that our business was somewhat flat," St. Charles said. "But it has increased some as we have continued to lend where others have cut back."
In the past year, the company has opened branches in Knoxville and Murfreesboro, Tenn., and recently expanded its Hixson location. The branch on Austin Road reopened in August after undergoing a renovation and expansion to fill its entire building, instead of using just half, said Curt Gwaltney, Citizens' chief operating officer.
"We needed to expand," Gwaltney said. "That office just keeps growing, and we've been on an upward growth line with that branch for a number of years now."
He said the company's dedication to customers makes it stand out and has made it easier to continue lending in the downturn.
Instead of following hard and fast rules, Gwaltney said, Citizens takes each loan on a case-by-case basis.
As delinquencies have declined and the small lending market has somewhat stabilized this year, more people are looking for auto and real estate loans, executives said.
With the addition of the two new branches and the Hixson expansion, St. Charles said the company is positioned well for growth.
"It's a good thing," he said. "As far as future plans, it's a little bit of wait-and-see."
He noted the national Dodd-Frank Wall Street Reform and Consumer Protection Act passed earlier this year, meant to promote financial stability, has left the industry with many questions.
"From a prudent business perspective, we need to see what those changes bring," St. Charles said. "We need to be conservative ... but basically we have not changed what we're doing at this point. We're continuing to lend as we've always lent."