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CITIZENS BANKING CORPORATION REPORTS FIRST-QUARTER EARNINGS

 FLINT, Mich., April 9 /PRNewswire/ -- Citizens Banking Corporation (NASDAQ: CBCF) reported 1993 first-quarter earnings of $6,050,000, up 13.3 percent from 1992 net earnings from operations (before cumulative effect of change in accounting principle) of $5,342,000. These earnings produced a return on average assets of 1.00 percent for first-quarter 1993 compared with 0.87 percent for the same period of 1992. On a per- share basis, Citizens earned $0.92, up 13.6 percent from $0.81 for the same period of 1992. Nonrecurring charges of $19,553,000 ($12,905,000 net of income taxes) recorded in first-quarter 1992 for adoption of new mandatory accounting for retiree benefits (recorded as a cumulative effect of change in accounting principle) caused earnings after that adjustment to be a loss of $7,563,000 or $1.16 per share.
 Charles R. Weeks, president and chief executive officer, stated that the increase for the quarter reflects an increase in noninterest income and reductions in noninterest expense and the provision for loan losses that were offset, in part, by lower net interest income and increased income taxes. Trust fees were up $184,000 or 8.5 percent from first- quarter 1992 levels. Noninterest expense was $913,000 or 3.8 percent lower than a year ago, reflecting Citizens' efforts to achieve efficiencies through consolidation of computer processing and other operations. Salaries and benefits, the largest component of noninterest expense, was down $771,000. The provision for loan losses was $1,461,000 compared with $1,600,000 in the first quarter of 1992. The ratio of net loans charged off to average loans was 0.26 percent, well below industry averages and reflecting the quality of Citizens' loan portfolio. Nonperforming assets were 1.07 percent of total assets, down from 1.24 percent a year ago. The allowance for loan losses was 1.26 percent of total loans, down slightly from 1.28 percent a year ago. Net interest income for 1992 was $169,000 lower than last year. The lower net interest income can be attributed to a decline in net interest margin and a slightly lower volume of earning assets.
 At March 31, 1993, total assets were $2,439,377,000, down 0.8 percent from $2,459,417,000 at March 31, 1992. Total loans and leases increased 3.4 percent to $1,577,447,000 from $1,524,854,000, while deposits decreased 1.4 percent to $2,025,356,000 from $2,054,892,000. Shareholders' equity totaled $222,637,000 or $34.03 per share compared with $208,459,000 or $31.87 per share a year ago.
 On March 19, 1993, Citizens announced an agreement to acquire Royal Bank Group, Inc., parent of National Bank of Royal Oak, for $22.5 million in an exchange of common stock. National Bank of Royal Oak, with assets of $187 million, serves the Royal Oak, Mich., market through four offices. The transaction, which is subject to approval by shareholders of Royal Bank Group, Inc. and regulatory authorities, is expected to be completed in the third quarter of 1993.
 Citizens Banking Corporation is the sixth-largest commercial bank holding company headquartered in Michigan and is the parent of Citizens Commercial & Savings Bank of Flint, Second National Bank of Saginaw, Second National Bank of Bay City, State Bank of Standish, Grayling State Bank, Century Life Insurance Company of Michigan, a credit life reinsurance company, and Commercial National Bank of Berwyn, Ill. The corporation's common stock is traded in the over-the-counter market (NASDAQ trading symbol: CBCF).
 CITIZENS BANKING CORPORATION AND SUBSIDIARIES
 FINANCIAL SUMMARY
 (Dollars in thousands except per-share data)
 Three Months Ended Percent Year Ended
 March 31, Change Dec. 31,
 Summary of Operations 1993 1992 1992
 Interest income $41,117 $47,317 (13.1) $178,776
 Net interest income 25,013 25,182 (0.7) 99,975
 Provision for loan losses 1,461 1,600 (8.7) 6,251
 Investment security
 gains (losses) 9 (14) --- (17)
 Noninterest income 6,934 6,716 3.3 27,082
 Noninterest expense(a) 23,054 23,967 (3.8) 95,600
 Income taxes(a) 1,391 975 42.7 3,730
 Nonrecurring net gain, net
 of income taxes --- --- --- 2,010
 Income before cumulative
 effect of change in
 actg. prin. 6,050 5,342 13.3 23,469
 Net income 6,050 (7,563) --- 10,564
 Per Common Share Data
 Income before cumulative
 effect of change in
 actg. prin. $0.92 $0.81 13.6 $3.59
 Net income 0.92 (1.16) --- 1.62
 Dividends 0.35 0.33 6.1 1.38
 Book value 34.03 31.87 6.8 33.47
 Average shares
 outstanding 6,543,217 6,536,812 0.1 6,539,475
 Performance Ratios
 (Annualized) (percents)
 Net interest margin 4.75 4.78 --- 4.71
 Return on average assets 1.00 (1.23) --- 0.43
 Return on average
 assets(b) 1.00 0.87 --- 0.87
 Return on average
 shareholders' equity 11.14 (14.73) --- 5.03
 Return on average
 shareholders' equity(b) 11.14 9.79 --- 9.64
 Selected Balance Sheet Data
 At Period End
 Total Assets $2,439,377 $2,459,417 (0.8) $2,498,834
 Total loans and
 leases 1,577,447 1,524,854 3.4 1,554,440
 Total deposits 2,025,356 2,054,892 (1.4) 2,086,144
 Total shareholders'
 equity 222,637 208,459 6.8 219,276
 Average Balances
 Total assets $2,454,914 $2,464,575 (0.4) $2,472,245
 Total loans and
 leases 1,558,168 1,532,442 1.7 1,537,171
 Total deposits 2,043,022 2,052,861 (0.5) 2,061,613
 Total shareholders'
 equity 220,197 206,456 6.7 210,193
 Nonperforming Assets
 Nonaccrual loans $19,597 $21,058 (6.9) $17,776
 Restructured loans 175 519 (66.3) 382
 Other real estate owned 6,273 8,834 (29.0) 7,316
 Total 26,045 30,411 (14.4) 25,474
 Statistics (percents)
 Allowance for loan
 losses/loans 1.26 1.28 (1.6) 1.25
 Nonperforming assets/
 loans & OREO 1.64 1.98 (17.2) 1.63
 Nonperforming assets/
 assets 1.07 1.24 (13.7) 1.02
 Net loans charged off/
 average loans
 (annualized) 0.26 0.48 (45.8) 0.43
 Shareholders' equity/
 assets 9.13 8.48 7.7 8.78
 (a) Excludes effect of nonrecurring net gain.
 (b) Presented on a proforma basis based on income before nonrecurring net gain and cumulative effect of change in accounting principle.
 -0- 4/9/93
 /CONTACT: Wayne G. Schaeffer, senior vice president, treasurer and chief financial officer, Citizens Banking Corporation, 313-766-7978/
 (CBCF)


CO: Citizens Banking Corporation ST: Michigan IN: FIN SU: ERN

JG-SM -- DE008 -- 4602 04/09/93 16:37 EDT
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Date:Apr 9, 1993
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