Citizens Banking Corp. reports higher first quarter 1997 earnings.FLINT, Mich.--(BUSINESS WIRE)--April 10, 1997--Citizens Banking Corp. earned net income of $9,208,000 for the three months ended March 31, 1997, an increase of 5.3 percent over the first quarter of 1996. Fully diluted earnings per share in the first quarter were 63 cents in 1997, compared with 60 cents in 1996. Returns on average equity and average assets during the first quarter of 1997 improved to 11.82 percent and 1.07 percent, respectively, from 11.78 percent and 1.02 percent, respectively, in the first quarter of 1996. Net interest income was $37,447,000 during the three months ended March 31, 1997, an increase of 6.2 percent over the corresponding quarter of 1996. Robert J. Vitito, president & chief executive officer, commented, "Strong loan growth fueled the improvement in our interest revenue." Additionally, during the first quarter of 1997, average loans comprised 81.4 percent of average earning assets, compared with 77.3 percent in the first quarter of 1996. Further, the corporation's overall cost of funds remained steady. As a result, Citizens' net interest margin increased to 4.82 percent during the first quarter of 1997, compared with 4.65 percent in 1996. Citizens continues to demonstrate strong credit quality. Total nonperforming assets were 0.61 percent of total assets at March 31, compared with 0.59 percent at year-end 1996 and 0.58 percent a year ago. Net loan charge-offs as a percent of average loans were 0.18 percent during the first quarter, compared with 0.17 percent during the fourth quarter of 1996 and 0.28 percent in the first quarter of 1996. Total assets at March 31, 1997, were $3.520 billion, an increase of 1.0 percent from year-end 1996. Total earning assets increased to $3.255 billion, up 1.3 percent from year-end 1996. Total deposits grew to $2.923 billion, an increase of 2.0 percent from the end of 1996. At March 31, 1997, Citizens Banking Corp. and its banking subsidiaries met all regulatory capital adequacy requirements and were considered "well capitalized." On Jan. 27, 1997, Citizens announced that it will acquire CB Financial Corp., headquartered in Jackson, Mich., in a stock-for-stock merger transaction. The affiliation is subject to regulatory and shareholder approval and is expected to be completed by the end of the second quarter of 1997. Citizens Banking Corp. provides a full range of consumer and commercial financial services to a broad client base. Citizens operates 92 offices throughout Michigan and in suburban Chicago. -0-
Consolidated Balance Sheets (Unaudited)
Citizens Banking Corp. and Subsidiaries
March 31, Dec. 31,
(in thousands) 1997 1996
_________ _________
Assets
Cash and due from banks $ 132,874 $ 137,867
Money market investments:
Interest-bearing deposits with banks 115 84
Federal funds sold 10,000 --
Term federal funds and other 1,960 12,043
_________ _________
Total money market investments 12,075 12,127
Securities available-for-sale:
U.S. Treasury and federal agency
securities 397,838 374,617
State and municipal securities 186,625 191,373
Other securities 14,513 14,181
_________ ________
Total investment securities 598,976 580,171
Loans:
Commercial 973,361 975,628
Real estate construction 33,800 37,803
Real estate mortgage 545,516 541,809
Consumer 1,046,943 1,018,318
Lease financing 44,050 47,173
_________ _________
Total loans 2,643,670 2,620,731
Less: Allowance for loan losses (36,975) (35,997)
_________ _________
Net loans 2,606,695 2,584,734
Premises and equipment 60,202 61,331
Intangible assets 63,546 64,916
Other assets 45,424 42,704
_________ _________
Total assets $3,519,792 $3,483,850
_________ _________
_________ _________
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing $ 450,782 $ 471,780
Interest-bearing 2,471,897 2,393,027
_________ _________
Total deposits 2,922,679 2,864,807
Federal funds purchased and securities
sold under agreements to repurchase 131,420 146,903
Other short-term borrowings 32,532 29,515
Other liabilities 43,417 43,250
Long-term debt 71,662 84,133
_________ _________
Total liabilities 3,201,710 3,168,608
Shareholders' Equity
Preferred stock - no par value -- --
Common stock - no par value 89,380 89,231
Retained earnings 230,593 225,112
Net unrealized gain (loss) on securities
available-for-sale, net of tax (1,891) 899
_________ _________
Total shareholders' equity 318,082 315,242
_________ _________
Total liabilities and shareholders'
equity $3,519,792 $3,483,850
_________ _________
_________ _________
Consolidated Statements of Income (Unaudited)
Citizens Banking Corp. and Subsidiaries
Three Months Ended
March 31,
(in thousands, except per share data) 1997 1996
____________________________________________________________________
Interest Income
Interest and fees on loans $ 56,312 $ 53,136
Interest and dividends on investment
securities:
Taxable 6,401 5,788
Nontaxable 2,170 2,260
Money market investments 201 1,785
___________ ___________
Total interest income 65,084 62,969
Interest Expense
Deposits 24,243 24,145
Short-term borrowings 1,966 1,722
Long-term debt 1,428 1,857
___________ ___________
Total interest expense 27,637 27,724
___________ ___________
Net Interest Income 37,447 35,245
Provision for loan losses 2,145 1,771
___________ ___________
Net interest income after provision
for loan losses 35,302 33,474
Noninterest Income
Trust fees 3,446 3,154
Service charges on deposit accounts 2,448 2,435
Bankcard fees 1,465 1,344
Other loan income 214 532
Investment securities gains (losses) (14) 52
Other 2,137 2,023
___________ ___________
Total noninterest income 9,696 9,540
Noninterest Expense
Salaries and employee benefits 17,079 16,758
Equipment 2,593 2,424
Occupancy 2,391 2,352
Intangible assets amortization 1,370 1,357
Bankcard fees 902 772
Stationery and supplies 946 778
Postage and delivery 918 824
Advertising and public relations 994 944
Other 4,869 4,615
___________ ___________
Total noninterest expense 32,062 30,824
___________ ___________
Income before income taxes 12,936 12,190
Income taxes 3,728 3,449
___________ ___________
Net income $ 9,208 $ 8,741
___________ ___________
___________ ___________
Primary and Fully Diluted Income Per Share $ 0.63 $ 0.60
___________ ___________
___________ ___________
Average Shares Outstanding:
Primary 14,634,949 14,675,356
Fully Diluted 14,652,835 14,677,184
____________________________________________________________________
Financial Summary and Comparison
Citizens Banking Corp. and Subsidiaries
Three Months Ended
March 31
_____________________________________
1997 1996 % Change
____________________________________________________________________
Summary of Operations
(thousands)
Interest income $65,084 $62,969 3.4%
Interest expense 27,637 27,724 (0.3)
Net interest income 37,447 35,245 6.2
Provision for loan losses 2,145 1,771 21.1
Net interest income after
provision for loan losses 35,302 33,474 5.5
Investment securities
gains (losses) (14) 52 (126.9)
Noninterest income 9,710 9,488 2.3
Noninterest expense 32,062 30,824 4.0
Income taxes 3,728 3,449 8.1
Net income 9,208 8,741 5.3
____________________________________________________________________
At Period End (millions)
Total assets $ 3,520 $ 3,508 0.3%
Total earning assets 3,255 3,209 1.4
Total loans 2,644 2,487 6.3
Total deposits 2,923 2,916 0.2
Total shareholders' equity 318 300 6.0
____________________________________________________________________
Average Balances (millions)
Total assets $ 3,486 $ 3,447 1.1%
Total earning assets 3,240 3,168 2.3
Total loans 2,636 2,448 7.7
Total deposits 2,874 2,848 0.9
Total shareholders' equity 316 298 6.0
Shareholders' equity / assets 9.07% 8.66% 4.7
____________________________________________________________________
Per Common Share Data
Net Income:
Primary $0.63 $0.60 5.0%
Fully diluted 0.63 0.60 5.0
Dividends 0.26 0.23 13.0
Market Value:
High $33.50 $32.25 3.9
Low 30.00 28.50 5.3
Close 33.00 30.50 8.2
Book value 22.15 20.85 6.2
Shares outstanding, end
of period (000) 14,361 14,395 (0.2)
____________________________________________________________________
Performance Ratios (annualized)
Net interest margin (FTE) 4.82% 4.65% 3.7%
Return on average assets 1.07 1.02 4.9
Return on average
shareholders' equity 11.82 11.78 0.3
Net loans charged off as
a percent of average loans 0.18 0.28 (35.7)
____________________________________________________________________
Selected Quarterly Information
Citizens Banking Corp. and Subsidiaries
____________________________________________________________________
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
1997 1996 1996 1996 1996
____________________________________________________________________
Summary of Operations
(thousands)
Interest Income $65,084 $64,632 $64,401 $63,912 $62,969
Interest expense 27,637 27,827 27,202 27,045 27,724
Net interest income 37,447 36,805 37,199 36,867 35,245
Provision for loan
losses 2,145 1,771 3,021 1,771 1,771
Net interest income
after provision for
loan losses 35,302 35,034 34,178 35,096 33,474
Investment securities
gains (losses) (14) 21 21 7 52
Noninterest income 9,710 9,776 11,424 9,741 9,488
Noninterest expense 32,062 31,119 32,190 31,853 30,824
Income taxes 3,728 3,895 3,830 3,731 3,449
Net income 9,208 9,817 9,603 9,260 8,741
____________________________________________________________________
At Period End (millions)
Total assets $3,520 $3,484 $3,468 $3,476 $3,508
Total earning assets 3,255 3,213 3,191 3,175 3,209
Total loans 2,644 2,621 2,588 2,551 2,487
Total deposits 2,923 2,865 2,849 2,867 2,916
Total shareholders'
equity 318 315 310 304 300
____________________________________________________________________
Average Balances (millions)
Total assets $3,486 $3,470 $3,445 $3,460 $3,447
Total earning assets 3,240 3,218 3,181 3,180 3,168
Total loans 2,636 2,590 2,575 2,516 2,448
Total deposits 2,874 2,856 2,849 2,874 2,848
Total shareholders'
equity 316 312 306 300 298
Shareholders'
equity / assets 9.07% 8.98% 8.87% 8.68% 8.66%
____________________________________________________________________
Credit Quality Statistics (thousands)
Nonaccrual loans $19,929 $17,788 $16,642 $16,212 $17,791
Loans 90 or more
days past due and
still accruing 299 1,362 637 834 517
Restructured loans 425 502 520 568 502
_______ _______ _______ _______ _______
Total nonperforming
loans 20,653 19,652 17,799 17,614 18,810
Other real estate
owned 691 749 1,086 1,350 1,532
_______ _______ _______ _______ _______
Total nonperforming
assets $21,344 $20,401 $18,885 $18,964 $20,342
_______ _______ _______ _______ _______
_______ _______ _______ _______ _______
Allowance for loan
losses ratio 1.40% 1.37% 1.37% 1.38% 1.40%
Allowance for loan
losses as a percent
of nonperforming
assets 173.23 176.45 187.11 185.91 171.27
Allowance for loan
losses as a percent
of nonperforming
loans 179.03 183.18 198.54 200.16 185.23
Nonperforming assets
as a percent of
total loans plus
OREO 0.81 0.78 0.73 0.74 0.82
Nonperforming assets
as a percent of
total assets 0.61 0.59 0.54 0.55 0.58
Net loans charged
off as a percent
of average loans
(annualized) 0.18 0.17 0.46 0.22 0.28
____________________________________________________________________
Per Common Share Data
Net Income:
Primary $0.63 $0.67 $0.65 $0.63 $0.60
Fully diluted 0.63 0.67 0.65 0.63 0.60
Dividends 0.26 0.26 0.26 0.26 0.23
Market Value:
High $33.50 $32.25 $29.50 $31.50 $31.50
Low 30.00 28.75 27.25 27.50 28.50
Close 33.00 31.50 28.63 29.00 30.50
Book value 22.15 21.98 21.51 21.02 20.85
Shares outstanding,
end of period (000) 14,361 14,340 14,401 14,439 14,395
____________________________________________________________________
Performance Ratios (annualized)
Net interest margin
(FTE) 4.82% 4.75% 4.85% 4.83% 4.65%
Return on average
assets 1.07 1.13 1.11 1.08 1.02
Return on average
shareholders' equity 11.82 12.53 12.50 12.40 11.78
____________________________________________________________________
CONTACT: Citizens Banking Corp., Flint John W. Ennest, 810/257-2557 |
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