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CITIZENS BANKING CORPORATION REPORTS FOURTH QUARTER EARNINGS, FULL YEAR EARNINGS AND FIRST QUARTER DIVIDEND

 FLINT, Mich., Jan. 22 /PRNewswire/ -- Citizens Banking Corporation (NASDAQ-NMS: CBCF) reported 1992 fourth quarter earnings of $7,837,000 or $1.20 per share. Excluding nonrecurring items, Citizens earned $5,890,000 or $0.90 per share compared with $5,630,000 or $0.86 per share for the same period of 1991. Fourth quarter net income includes non-recurring items that, when combined, resulted in a net gain of $1,947,000 after income taxes.
 As previously reported on Dec. 2, 1992, these items included an after tax curtailment gain of $2,965,000, or $0.45 per share, recorded in accordance with generally accepted accounting principles, that resulted from modifying postretirement benefit plans for current employees. This was offset, in part, by a $955,000, or $0.14 per share, after tax charge for restructuring Citizens leasing subsidiary and a minor increase in postretirement benefit expense. The restructuring charge represents costs associated with the closing of certain offices and a writedown of goodwill and business related assets. None of the restructuring charge was attributable to credit quality problems in the lease portfolio.
 Citizens earned $10,564,000 for the year ended Dec. 31, 1992, compared with $21,075,000 in 1991. Net income per share was $1.62 compared with $3.23 a year ago. Excluding nonrecurring items, Citizens earned $22,317,000 or $3.41 per share in 1992, its 10th consecutive year of increases in net operating income. Without the extraordinary items, 1992 would have been Citizens' fifth consecutive year of record net income. Net income was reduced by charges, as previously reported, totaling $11,753,000 or $1.79 per share. This resulted from a combination of the aforementioned fourth quarter gain of $1,947,000 and mandatory adoption of Financial Accounting Standards Board Statement No. 106 "Postretirement Benefits Other Than Pensions." The aforementioned charges include a one-time after tax charge of $12,905,000, or $1.97 per share, which was recognized retroactively in the first quarter, and a $795,000 after tax increase in postretirement expense. None of the extraordinary items are expected to have an adverse impact on the results of continuing operations in future years.
 Charles R. Weeks, president and chief executive officer, stated that the increase for the year, excluding the effects of non-recurring items, reflects higher net interest income, noninterest income and a reduction in income taxes offset, in part, by increases in noninterest expense and the provision for loan losses. Net interest income for 1992 was $744,000 higher than last year. The improvement in net interest income can be attributed to a slightly higher volume of earning assets, principally an increase in mortgage loans, leases and government securities, and a slightly higher net interest margin. Investment brokerage fees were up $672,000 or 98.4 percent from 1991 and trust fees were $608,000 or 7.5 percent higher than a year ago. Excluding the one- time charges and a 10.8 percent or $450,000 increase in FDIC insurance premiums, noninterest expenses were up only 0.4 percent or $342,000 from 1991. The provision for loan losses for 1992 was $6,251,000, an increase of $165,000 when compared with 1991. The ratio of net loans charged off to average loans was 0.43 percent, well below industry averages and reflecting the quality of Citizens' loan portfolio. Nonperforming assets were 1.02 percent of total assets, down from 1.18 percent at Dec. 31, 1991. The allowance for loan losses was 1.25 percent of total loans, down slightly from 1.29 percent a year ago.
 At Dec. 31, 1992, total assets were $2,498,834,000, up 0.3 percent from $2,492,584,000 at Dec. 31, 1991. Total loans and leases increased 1.5 percent to $1,554,440,000 from $1,532,159,000, while deposits increased 1.1 percent to $2,086,144,000 from $2,064,024,000. Shareholders' equity totaled $219,276,000 or $33.47 per share compared with $218,183,000 or $33.36 per share a year ago.
 In other action, the board of directors of Citizens Banking Corporation today declared a regular quarterly cash dividend of $0.35 per share of common stock to shareholders of record on Feb. 1, 1993, with a payment date of Feb. 12, 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
 (In thousands except share data)
 12 Months Ended Three Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Summary of Operations
 Interest income $178,776 $210,599 $42,429 $50,771
 Net interest income 99,975 99,231 25,097 24,963
 Provision for loan
 losses 6,251 6,086 1,507 2,018
 Investment security
 gains (losses) (17) 19 (4) 1
 Noninterest income 27,082 26,509 6,883 7,088
 Noninterest expenses 92,555 93,509 20,673 23,341
 Income taxes 4,765 5,089 1,959 1,063
 Income before cumulative
 effect of change in
 accounting principle 23,469 21,075 7,837 5,630
 Net income 10,564 21,075 7,837 5,630
 Net operating
 income(a) 22,317 21,075 5,890 5,630
 Cash dividends 9,027 8,427 2,292 2,154
 Per Common Share Data
 Income before cumulative
 effect of change in
 accounting principle $3.59 $3.23 $1.20 $0.86
 Net income 1.62 3.23 1.20 0.86
 Net operating income(a) 3.41 3.23 0.90 0.86
 Cash dividends 1.38 1.29 0.35 0.33
 Book value 33.47 33.36 --- ---
 Average shares
 outstanding 6,539,475 6,530,455 6,550,257 6,529,285
 Performance Ratios (pct)
 Net interest margin 4.71 4.67 4.73 4.70
 Return on average
 assets 0.43 0.86 1.26 0.90
 Return on average
 assets(a) 0.91 0.86 0.95 0.90
 Return on average
 shareholders' equity 5.03 9.99 14.45 10.35
 Return on average
 shareholders'
 equity(a) 10.01 9.99 10.33 10.35
 Selected Balance Sheet Data Dec. 31, Percent
 1992 1991 Change
 At Period End
 Total assets $2,498,834 $2,492,584 0.3
 Total loans and leases 1,554,440 1,532,159 1.5
 Total deposits 2,086,144 2,064,024 1.1
 Total shareholders' equity 219,276 218,183 0.5
 Average Balances
 Total assets $2,472,245 $2,449,897 0.9
 Total loans and leases 1,537,171 1,544,554 (.5)
 Total deposits 2,061,613 2,035,156 1.3
 Total shareholders' equity 210,193 210,931 (0.3)
 Statistics
 Allowance for loan losses/loans 1.25 pct 1.29 pct (3.1) pct
 Nonperforming assets/loans &
 OREO 1.63 1.91 (14.7)
 Nonperforming assets/assets 1.02 1.18 (13.6)
 Net loans charged off/average loans 0.43 0.37 16.2
 Shareholders' equity/assets 8.78 8.75 0.3
 (a) Income from continuing operations (i.e. income before cumulative effect of change in accounting principle and other nonrecurring items).
 CITIZENS BANKING CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (In thousands except share data)
 Dec. 31, Dec. 31,
 1992 1991
 Assets
 Cash and due from banks $121,430 $122,932
 Money market investments:
 Interest-bearing deposits with banks 25,058 40,102
 Federal funds sold 30,000 35,600
 Term federal funds 30,000 50,000
 Other 223 202
 Total money market investments 85,281 125,904
 Investment securities:
 U.S. Treasury and federal agency securities 310,606 285,744
 State and municipal securities 322,825 270,960
 Other securities 27,619 73,321
 Total investment securities 661,050 630,025
 Loans:
 Commercial loans 420,287 440,020
 Real estate - construction 23,427 13,735
 Real estate - mortgage 552,848 567,953
 Consumer installment 478,107 462,948
 Lease financing 79,771 47,503
 Total loans 1,554,440 1,532,159
 Less: allowance for loan losses (19,404) (19,759)
 Net loans 1,535,036 1,512,400
 Premises and equipment 47,920 51,075
 Other assets 48,117 50,248
 Total assets $2,498,834 $2,492,584
 Liabilities and Shareholders' Equity
 Deposits:
 Noninterest-bearing $325,316 $284,671
 Interest-bearing 1,760,828 1,779,353
 Total deposits 2,086,144 2,064,024
 Federal funds purchased and securities
 sold under agreements to repurchase 107,396 117,602
 Other short-term borrowings 31,667 43,588
 Other liabilities 39,258 28,782
 Long-term debt 15,093 20,405
 Total liabilities 2,279,558 2,274,401
 Shareholders' Equity
 Preferred stock - no par value --- ---
 Common stock - no par value, 1992;
 $10 par value, 1991 80,575 68,945
 Surplus --- 9,941
 Retained earnings 147,703 146,166
 Cost of common stock in treasury (9,002) (6,869)
 Total shareholders' equity 219,276 218,183
 Total liabilities and shareholders' equity $2,498,834 $2,492,584
 CITIZENS BANKING CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (in thousands except share data)
 Three Months Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Interest Income
 Interest and fees
 on loans $33,456 $37,870 $138,118 $157,847
 Interest and dividends
 on investment securities:
 Taxable 4,820 7,228 22,949 30,507
 Nontaxable 3,394 3,616 13,047 11,926
 Money market
 investments 759 2,057 4,662 10,319
 Total interest income 42,429 50,771 178,776 210,599
 Interest Expense
 Deposits 16,087 23,462 72,707 100,833
 Short-term borrowings 1,041 1,810 5,042 7,960
 Long-term debt 204 536 1,052 2,575
 Total interest expense 17,332 25,808 78,801 111,368
 Net Interest Income 25,097 24,963 99,975 99,231
 Provision for loan
 losses 1,507 2,018 6,251 6,086
 Net interest income
 after provision for
 loan losses 23,590 22,945 93,724 93,145
 Noninterest Income
 Trust fees 2,208 2,046 8,669 8,061
 Service charges on
 deposit accounts 1,915 1,827 7,245 7,085
 Bankcard fees 863 951 3,549 3,671
 Investment securities
 gains (losses) (4) 1 (17) 19
 Other 1,897 2,264 7,619 7,692
 Total noninterest
 income 6,879 7,089 27,065 26,528
 Noninterest Expense
 Salaries and employee
 benefits 8,763 12,522 49,597 50,866
 Equipment 1,888 1,947 7,648 8,119
 Occupancy 1,698 1,704 6,766 6,906
 FDIC insurance premiums 1,169 1,134 4,626 4,176
 Postage and delivery 499 492 2,171 2,213
 Stationery and supplies 508 546 2,067 2,393
 Restructuring costs 1,447 --- 1,447 ---
 Other 4,701 4,996 18,233 18,836
 Total noninterest
 expense 20,673 23,341 92,555 93,509
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 9,796 6,693 28,234 26,164
 Income taxes 1,959 1,063 4,765 5,089
 Income before cumulative
 effect of change in
 accounting principle 7,837 5,630 23,469 21,075
 Cumulative effect on
 prior years of changing
 method of accounting
 for postretirement
 benefits --- --- 12,905 ---
 Net income $7,837 $5,630 $10,564 $21,075
 Per common share:
 Income before
 cumulative effect of
 change in accounting
 principle $1.20 $0.86 $3.59 $3.23
 Cumulative effect on
 prior years of
 changing method of
 accounting for post-
 retirement benefits --- --- 1.97 ---
 Net income $1.20 $0.86 $1.62 $3.23
 Average shares
 outstanding 6,550,257 6,529,285 6,539,475 6,530,455
 -0- 1/22/93
 /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 DIV

KE-SM -- DE016 -- 7941 01/22/93 13:20 EST
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Date:Jan 22, 1993
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