Citizens Banking Corp. reports fourth quarter and full year 1996 earnings.FLINT flint, mineral flint, variety of quartz that commonly occurs in rounded nodules and whose crystal structure is not visible to the naked eye. Flint is dark gray, smoky brown, or black in color; pale gray flint is called chert. , Mich.--(BUSINESS WIRE)--Jan. 16, 1997--Citizens Banking Corp. earned net income of $9,817,000 for the three months ended Dec. 31, 1996, an increase of 0.6 percent from the same period of 1995. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of in the fourth quarter were 67 cents in 1996, the same as in 1995. "We had an unusually strong fourth quarter in 1995. Consequently, our fourth quarter 1996 results, although strong, represent only a modest increase from 1995," commented Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Vitito, president and chief executive officer. Returns on average equity and average assets during the fourth quarter of 1996 were 12.53 percent and 1.13 percent, respectively, compared with 13.32 percent and 1.13 percent, respectively, in the fourth quarter of 1995. For the year ended Dec. 31, 1996, Citizens earned $37,421,000, up 11.4 percent from 1995. Earnings per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share were $2.55, up 10.9 percent from 1995. "The year 1996 marks the fourteenth consecutive year of higher net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for Citizens. The record earnings reflect higher net interest income and non-interest revenue, offset, in part, by a higher provision for loan losses and increases in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ," added Vitito. Returns on average equity and average assets for 1996 improved to 12.31 percent and 1.08 percent, respectively, up from 12.10 percent and 1.02 percent, respectively, in 1995. Net interest income during 1996 increased to $146,116,000, up 6.3 percent from 1995. The improved net interest income reflects higher average earning asset Earning asset An asset that generates income, e.g., income from rental property. balances and a higher yielding asset mix. Net interest margin was 4.77 percent in 1996, unchanged from 1995. Non-interest income increased to $40,530,000, up from $36,434,000 in 1995. Excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain recognized on the sale of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights, non-interest income increased 7.0 percent from 1995. Non-interest expense increased by 4.0 percent from 1995 levels. Citizens provided $8,334,000 for possible loan losses in 1996, an increase of 29.4 percent from 1995. "The increased provision for loan losses is a function of higher average loan balances and our desire to maintain a strong reserve," said Vitito. Citizens credit quality remained strong, with net loan charge-offs of 0.28 percent of average loans, compared with 0.16 percent in 1995. During the third quarter of 1996, the corporation charged-off a single commercial credit of $1,250,000; a corresponding amount was added to the provision for loan losses. In the absence of this isolated item, net loan charge-offs for 1996 would have been more consistent with 1995 levels. Total non-performing assets were 0.59 percent of total assets at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1996, down from 0.61 percent at the end of 1995. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: assets at Dec. 31, 1996, were $3.484 billion, up 0.6 percent from Dec. 31, 1995. Total loans increased 7.9 percent from year-end 1995, while total deposits were unchanged from year-end 1995. Total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. on Dec. 31, 1996, was $315,242,000, compared with $297,186,000 at the end of 1995. During 1996, Citizens repurchased 128,500 shares of its common stock on the open market. These transactions were part of a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program that began in 1987. Citizens Banking Corp. provides a full range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to a broad customer base. Citizens operates 93 offices throughout Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). and suburban Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. . (Financial Highlights follow) -0-
Financial Summary and Comparison
Citizens Banking Corp. and Subsidiaries
Twelve Months Ended
December 31
______________________________________
1996 1995 % Change
____________________________________________________________________
Summary of Operations (thousands)
Interest income $255,914 $240,600 6.4%
Interest expense 109,798 103,105 6.5
Net interest income 146,116 137,495 6.3
Provision for loan losses 8,334 6,441 29.4
Net interest income after
provision for loan losses 137,782 131,054 5.1
Investment securities gains 101 198 (49.0)
Noninterest income 40,429 36,236 11.6
Noninterest expense 125,986 121,087 4.0
Income taxes 14,905 12,805 16.4
Net income 37,421 33,596 11.4
____________________________________________________________________
At Period End (millions)
Total assets $3,484 $3,464 0.6%
Total earning assets 3,213 3,149 2.0
Total loans 2,621 2,429 7.9
Total deposits 2,865 2,865 0.0
Total shareholders' equity 315 297 6.1
____________________________________________________________________
Average Balances (millions)
Total assets $3,455 $3,280 5.3%
Total earning assets 3,187 3,003 6.1
Total loans 2,533 2,302 10.0
Total deposits 2,857 2,702 5.7
Total shareholders' equity 304 278 9.4
Shareholders' equity/assets 8.80% 8.46% 4.0
____________________________________________________________________
Per Common Share Data
Net Income:
Primary $2.55 $2.31 10.4%
Fully diluted 2.55 2.30 10.9
Dividends 1.01 0.90 12.2
Market Value:
High $32.25 $33.25 (3.0)
Low 27.25 24.94 9.3
Close 31.50 29.75 5.9
Book value 21.98 20.73 6.0
Shares outstanding, end of
period (000) 14,340 14,334 0.0
____________________________________________________________________
Performance Ratios (annualized)
Net interest margin (FTE) 4.77% 4.77% 0.0%
Return on average assets 1.08 1.02 5.9
Return on average shareholders'
equity 12.31 12.10 1.7
Net loans charged off as a
percent of average loans 0.28 0.16 75.0
____________________________________________________________________
Selected Quarterly Information
Citizens Banking Corp. and Subsidiaries
____________________________________________________________________
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
1996 1996 1996 1996 1995
____________________________________________________________________
Summary of Operations (thousands)
Interest Income $64,632 $64,401 $63,912 $62,969 $63,752
Interest expense 27,827 27,202 27,045 27,724 28,216
Net interest income 36,805 37,199 36,867 35,245 35,536
Provision for loan
losses 1,771 3,021 1,771 1,771 1,937
Net interest income
after provision for
loan losses 35,034 34,178 35,096 33,474 33,599
Investment securities
gains 21 21 7 52 79
Noninterest income 9,776 11,424 9,741 9,488 9,790
Noninterest expense 31,119 32,190 31,853 30,824 29,952
Income taxes 3,895 3,830 3,731 3,449 3,757
Net income 9,817 9,603 9,260 8,741 9,759
____________________________________________________________________
At Period End (millions)
Total assets $3,484 $3,468 $3,476 $3,508 $3,464
Total earning assets 3,213 3,191 3,175 3,209 3,149
Total loans 2,621 2,588 2,551 2,487 2,429
Total deposits 2,865 2,849 2,867 2,916 2,865
Total shareholders'
equity 315 310 304 300 297
____________________________________________________________________
Average Balances (millions)
Total assets $3,470 $3,445 $3,460 $3,447 $3,428
Total earning assets 3,218 3,181 3,180 3,168 3,142
Total loans 2,590 2,575 2,516 2,448 2,431
Total deposits 2,856 2,849 2,874 2,848 2,812
Total shareholders'
equity 312 306 300 298 291
Shareholders'
equity/assets 8.98% 8.87% 8.68% 8.66% 8.48%
____________________________________________________________________
Credit Quality Statistics (thousands)
Nonaccrual loans $17,788 $16,642 $16,212 $17,791 $18,624
Loans 90 or more
days past due and
still accruing 1,362 637 834 517 432
Restructured loans 502 520 568 502 494
_______ _______ _______ _______ _______
Total nonperforming
loans 19,652 17,799 17,614 18,810 19,550
Other real estate
owned 749 1,086 1,350 1,532 1,568
_______ _______ _______ _______ _______
Total nonperforming
assets $20,401 $18,885 $18,964 $20,342 $21,118
_______ _______ _______ _______ _______
_______ _______ _______ _______ _______
Allowance for loan
losses ratio 1.37% 1.37% 1.38% 1.40% 1.43%
Allowance for loan
losses as a percent
of nonperforming
assets 176.45 187.11 185.91 171.27 164.65
Allowance for loan
losses as a percent
of nonperforming
loans 183.18 198.54 200.16 185.23 177.86
Nonperforming assets
as a percent of
total loans plus
OREO 0.78 0.73 0.74 0.82 0.87
Nonperforming assets
as a percent of
total assets 0.59 0.54 0.55 0.58 0.61
Net loans charged
off as a percent
of average loans
(annualized) 0.17 0.46 0.22 0.28 0.18
____________________________________________________________________
Per Common Share Data
Net Income:
Primary $0.67 $0.65 $0.63 $0.60 $0.67
Fully diluted 0.67 0.65 0.63 0.60 0.67
Dividends 0.26 0.26 0.26 0.23 0.23
Market Value:
High $32.25 $29.50 $31.50 $31.50 $32.50
Low 28.75 27.25 27.50 28.50 29.00
Close 31.50 28.63 29.00 30.50 29.75
Book value 21.98 21.51 21.02 20.85 20.73
Shares outstanding,
end of period (000) 14,340 14,401 14,439 14,395 14,334
____________________________________________________________________
Performance Ratios (annualized)
Net interest margin
(FTE) 4.75% 4.85% 4.83% 4.65% 4.70%
Return on average
assets 1.13 1.11 1.08 1.02 1.13
Return on average
shareholders' equity 12.53 12.50 12.40 11.78 13.32
____________________________________________________________________
____________________________________________________________________
Consolidated Balance Sheets (Unaudited)
Citizens Banking Corp. and Subsidiaries
December 31, December 31,
(in thousands) 1996 1995
____________________________________________________________________
Assets
Cash and due from banks $137,867 $172,754
Money market investments:
Interest-bearing deposits with banks 84 10,090
Federal funds sold -- 50,000
Term federal funds and other 12,043 89,744
________ ________
Total money market investments 12,127 149,834
Securities available-for-sale:
U.S. Treasury and federal
agency securities 374,618 346,485
State and municipal securities 191,373 213,491
Other securities 14,180 10,936
________ ________
Total investment securities 580,171 570,912
Loans:
Commercial 975,628 905,947
Real estate construction 37,803 33,984
Real estate mortgage 541,809 457,758
Consumer 1,018,318 970,755
Lease financing 47,173 60,069
_________ _________
Total loans 2,620,731 2,428,513
Less: Allowance for loan losses (35,997) (34,771)
_________ _________
Net loans 2,584,734 2,393,742
Premises and equipment 61,331 63,147
Intangible assets 64,916 70,385
Other assets 42,704 43,148
__________ __________
Total assets $3,483,850 $3,463,922
__________ __________
__________ __________
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing $471,780 $506,116
Interest-bearing 2,393,027 2,358,585
_________ _________
Total deposits 2,864,807 2,864,701
Federal funds purchased and
securities sold under agreements
to repurchase 146,903 130,556
Other short-term borrowings 29,515 15,468
Other liabilities 43,250 50,600
Long-term debt 84,133 105,411
_________ _________
Total liabilities 3,168,608 3,166,736
Shareholders' Equity
Preferred stock - No par value -- --
Common stock - No par value 89,231 91,480
Retained earnings 225,112 202,219
Net unrealized gain on
securities available-for-sale,
net of tax 899 3,487
________ ________
Total shareholders' equity 315,242 297,186
________ ________
Total liabilities and
shareholders' equity $3,483,850 $3,463,922
__________ __________
__________ __________
____________________________________________________________________
Consolidated Statements of Income (Unaudited)
Citizens Banking Corp. and Subsidiaries
Three Months Ended Twelve Months Ended
(in thousands, except December 31, December 31,
per share data) 1996 1995 1996 1995
____________________________________________________________________
Interest Income
Interest and fees on loans $55,676 $53,800 $219,266 $201,242
Interest and dividends on
investment securities:
Taxable 5,928 5,754 24,048 22,531
Nontaxable 2,221 2,259 9,085 9,403
Money market investments 807 1,939 3,515 7,424
_______ _______ _______ _______
Total interest income 64,632 63,752 255,914 240,600
_______ _______ _______ _______
Interest Expense
Deposits 24,280 24,041 96,035 88,157
Short-term borrowings 1,973 1,966 7,466 7,221
Long-term debt 1,574 2,209 6,297 7,727
_______ _______ _______ _______
Total interest expense 27,827 28,216 109,798 103,105
_______ _______ _______ _______
Net Interest Income 36,805 35,536 146,116 137,495
Provision for loan losses 1,771 1,937 8,334 6,441
_______ _______ _______ _______
Net interest income
after provision for
loan losses 35,034 33,599 137,782 131,054
_______ _______ _______ _______
Noninterest Income
Trust fees 3,042 2,841 12,316 11,314
Service charges on
deposit accounts 2,617 2,461 10,242 9,717
Bankcard fees 1,630 1,811 5,968 5,635
Investment securities gains 21 79 101 198
Other 2,487 2,677 11,903 9,570
_______ _______ _______ _______
Total noninterest
income 9,797 9,869 40,530 36,434
_______ _______ _______ _______
Noninterest Expense
Salaries and employee
benefits 17,025 16,329 68,242 64,357
Equipment 2,470 2,415 9,804 9,709
Occupancy 2,158 2,410 9,294 9,000
Intangible asset
amortization 1,371 1,324 5,469 4,687
FDIC insurance premiums 1 269 9 3,250
Bankcard fees 1,148 1,296 3,831 3,418
Stationery and supplies 1,085 968 3,649 3,570
Postage and delivery 783 872 3,419 3,189
Other 5,078 4,069 22,269 19,907
_______ _______ _______ _______
Total noninterest expense 31,119 29,952 125,986 121,087
_______ _______ _______ _______
Income Before Income Taxes 13,712 13,516 52,326 46,401
Income taxes 3,895 3,757 14,905 12,805
_______ _______ _______ _______
Net Income $ 9,817 $ 9,759 $37,421 $33,596
_______ _______ _______ _______
_______ _______ _______ _______
Net Income Per Share:
Primary $ 0.67 $ 0.67 $ 2.55 $ 2.31
Fully Diluted $ 0.67 $ 0.67 $ 2.55 $ 2.30
_______ _______ _______ _______
_______ _______ _______ _______
Average Shares Outstanding:
Primary 14,619 14,662 14,666 14,575
Fully Diluted 14,647 14,662 14,697 14,612
CONTACT: Citizens Banking Corp., Flint John W. Ennest, 810/257-2557 |
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