Cristin Reid, chairman and CEO of Capitol National Bank, knows the challenges that small community banks can face. Banks like Capitol National, which has less than $200 million in assets, can struggle if they lose just a handful of client relationships.
As rising interest rates began to put pressure on banks to attract and retain deposits, the Lansing, Michigan, bank's team knew it needed to focus on balance sheet liabilities, including client deposits.
With this in mind, the team implemented a rate-structuring program to meet customers' unique needs through strategies such as individual deposit terms and laddering. The goal was to benefit both customers and the bank. As of last December, the bank had retained its important deposit relationships while posting a strong 5.13% net interest margin.
Reid keeps the day-to-day lines of communication open at her bank. She has weekly meetings with the lending team and senior team members, and she is directly involved in customer development and problem-solving. One key focus is attracting small-business customers.
In 2022, Reid formed the Capitol Foundation to support the businesses of underserved populations. Along with providing small loans and grants to businesses, the foundation has contributed to charitable causes and community members, including an immigrant who was ineligible to receive a car loan and an unemployed teacher who was at risk of losing his home.
Reid also initiated Capitol National's internship program, which allows high school and college students to get the experience of working at a bank. This program is beneficial to the students and also to the bank, as it provides insight into staffing challenges.
Reid says the one thing that has paid off the most for her in her career is a simple one — asking questions.
"When walking into an important meeting, if you know the material better than anyone else, you will be in a better position to respond, analyze and create the best outcome," she said. "To be prepared, you have to put in the time and, most importantly, ask questions."
She notes that, while some may think asking questions is a sign of weakness, it actually creates strength.
"I work to encourage my team and board to ask questions," she said. "When they do, it allows us to identify flaws in our analysis, or generate confidence in our direction."
Reid has a keen focus on diversity and inclusion; women and other underrepresented groups make up 59% of the bank's employees, and women hold 71% of senior management positions.
"Diversity in the workplace creates opportunity, mostly for the company that creates it," she said, noting that when she was a young professional, she was often the only woman in the room.
"I am rarely the only woman in the room" in the banking industry today, she said. "At our bank, five of the top seven officers are women. In the industry, there are often other women present in the room, even though under 10% of our banks are led by women."
Outside of the office, Reid volunteers as a head coach for middle school cross-country and track-and-field programs. She herself has been a runner since she was 13. "This is my go-to stress reduction and relaxation activity," she said.
