Citizens Banking Corp. reports second quarter 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)--July 13, 1995--Citizens Banking Corp. earned net income of $7,469,000 for the quarter ended June June: see month. 30, 1995 compared with $7,226,000 in the second quarter of 1994, an increase of $243,000 or 3.36 percent. 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. net income per share was 51 cents compared with 50 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the second quarter of 1994. The acquisition of the four 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). banking affiliates of Banc One Corp. was completed on Feb. 28, 1995. The four banks, with assets of $675 million and 20 branches, were merged into Citizens Commercial & Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. as regional offices. The transaction was accounted for as a purchase and, accordingly, the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge include the results of operations of the four banks from the date of acquisition. For the first six months of 1995, net income was $14,853,000 or $1.02 per fully diluted share compared with $13,435,000 or 93 cents per share for the first six months of 1994. Return on average assets for the first six months was 0.95 percent compared with 1.00 percent a year ago. Return on average 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. for the first six months was 11.13 percent, up from 10.93 percent in 1994. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by R. Weeks, chairman and chief executive officer, stated that the increase in net income for the year reflects increases in net interest income and noninterest income that were offset, in part, by higher noninterest expense and an increase in the provision for loan losses. Net interest income was $9,360,000 higher during the first six months of 1995 than in 1994. Higher volumes and higher yields on most categories of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin more than offset the effects of higher deposit balances and rates. Net interest margin was 4.85 percent for the six month period, which declined from 4.88 percent in 1994, and was the result of the long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. issued to complete the acquisition noted above. Noninterest expense during the first half of 1995 was $60,548,000, an increase of $6,390,000 or 11.7 percent over 1994. The increase reflects the inclusion of the newly acquired banking offices as well as some non-recurring costs required to convert the new entities to Citizens' operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. . The systems conversions were completed during June 1995, and are expected to produce significant cost efficiencies and enhanced service Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; quality in future periods. Noninterest income was $16,860,000, up $177,000 or 1.06 percent from the first six months of 1994. At June 30, 1995, total assets were $3,436,099,000, up 25.4 percent from $2,739,181,000 at June 30, 1994. Total loans and leases increased 30.7 percent to $2,385,565,000 from $1,825,542,000 while deposits increased 23.5 percent to $2,815,731,000 from $2,279,337,000. Shareholders' equity totaled $279,356,000 or $19.69 per share compared with $254,217,000 or $18.08 per share a year ago. The ratio of net loans charged off to average loans during the first six months of 1995 was 0.10 percent, down from 0.16 percent in 1994. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. at June 30, 1995 were 0.98 percent of total loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most , down from 1.11 percent a year ago. Both of these ratios continue to be below industry averages. The provision for loan losses was $3 million, up $584,000 from $2,416,000 a year ago, and the allowance for loan losses was 1.42 percent of total loans, up from 1.29 percent in 1994. Citizens Banking Corp. is the sixth largest commercial bank holding company headquartered in Michigan and is the parent of seven commercial banks. They are: Citizens Commercial & Savings Bank of Flint, Second National Bank of Saginaw Saginaw, city, United States Saginaw (săg`ĭnô), city (1990 pop. 69,512), seat of Saginaw co., S Mich., on the Saginaw River, 15 mi (24 km) from its mouth on Saginaw Bay (an inlet of Lake Huron); settled 1816, inc. 1857. , National Bank of Royal Oak, Second National Bank of Bay City, State Bank of Standish, Grayling grayling, common name for a brilliantly colored fish belonging to the genus Thymallus, of the family Salmonidae (salmon family), and closely allied to the smelt. Graylings are found chiefly in clear, cold, fresh waters of the Northern Hemisphere. State Bank and Commercial National Bank of Berwyn Berwyn (bûr`wĭn), city (1990 pop. 45,426), Cook co., NE Ill., a residential suburb of Chicago, on the Chicago Sanitary and Ship Canal; inc. 1891. It has varied light industry and manufactures. , Ill. The corporation's common stock trades on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: CBCF CBCF Canadian Breast Cancer Foundation CBCF Congressional Black Caucus Foundation CBCF Community Based Corrections Facilities CBCF Commander, Base Communications Facility . -0-
Citizens Banking Corp. and Subsidiaries
Financial Summary Three Months Ended Six Months Ended
June 30, June 30,
__________________ __________________
1995 1994 1995 1994
________ ________ ________ ________
Summary of Operations (000)
Interest income $ 62,248 $ 44,529 $114,069 $ 87,304
Net interest income 35,361 29,559 66,914 57,554
Provision for loan losses 1,580 1,358 3,000 2,416
Investment security gains 13 9 104 188
Noninterest income 8,889 8,369 16,860 16,683
Noninterest expense 32,468 26,701 60,548 54,158
Income taxes 2,746 2,652 5,477 4,416
Net income 7,469 7,226 14,853 13,435
____________________________________________________________________
Per Common Share Data
Net income - Primary $ 0.51 $ 0.50 $ 1.02 $ 0.93
- Fully diluted 0.51 0.50 1.02 0.93
Dividends 0.23 0.21 0.44 0.40
Book value 19.69 18.08
Shares outstanding - end
of period (000) 14,189 14,061
____________________________________________________________________
Performance Ratios (Annualized)
Net interest margin 4.77% 4.97% 4.85% 4.88%
Return on average assets 0.89 1.06 0.95 1.00
Return on average
shareholders' equity 10.89 11.44 11.13 10.93
_____________________________________________________________________
SELECTED BALANCE SHEET DATA Six Months Ended Year Ended
June 30, Dec. 31,
_____________________________ __________
1995 1994 % Change 1994
_____________________________ __________
At Period End (000)
Total assets $3,436,099 $2,739,181 25.4 $2,703,823
Total loans and leases 2,385,565 1,825,542 30.7 1,816,221
Total deposits 2,815,731 2,279,337 23.5 2,252,318
Total shareholders' equity 279,356 254,217 9.9 258,730
_____________________________________________________________________
Average Balances (000)
Total assets $3,147,457 $2,717,663 15.8 $2,710,747
Total loans and leases 2,182,585 1,789,132 22.0 1,797,153
Total deposits 2,607,065 2,264,368 15.1 2,262,182
Total shareholders' equity 269,006 256,332 4.9 256,607
_____________________________________________________________________
Nonperforming Assets (000)
Nonaccrual loans $ 21,057 $ 17,283 21.8 $ 18,156
Restructured loans 560 151 270.9 299
Other real estate owned 1,890 2,878 (34.3) 2,230
Total 23,507 20,312 15.7 20,685
_____________________________________________________________________
Statistics
Allowance for loan
losses/loans 1.42% 1.29% 10.1 1.36%
Nonperforming
assets/loans & OREO 0.98 1.11 (11.7) 1.14
Nonperforming assets/assets 0.68 0.74 (8.1) 0.77
Net loans charged off/average
loans 0.10 0.16 (37.5) 0.17
Shareholders' equity/assets 8.13 9.28 (12.4) 9.57
_____________________________________________________________________
Selected Quarterly
Information 1995 1994
____________________________________
Second First Fourth Third
_____________________________________________________________________
Summary of Operations (000)
Interest income $62,248 $51,821 $46,836 $45,849
Net interest income 35,361 31,553 30,531 30,315
Provision for loan losses 1,580 1,420 1,532 1,355
Investment security gains
(losses) 13 91 4 (35)
Noninterest income 8,889 7,971 8,564 8,450
Noninterest expense 32,468 28,080 26,328 26,759
Income taxes 2,746 2,731 3,005 2,871
Net income 7,469 7,384 8,234 7,745
_____________________________________________________________________
Per Common Share Data
Net income:
Primary $0.51 $0.51 $0.56 $0.54
Fully diluted 0.51 0.51 0.56 0.54
Dividends 0.23 0.21 0.21 0.21
Book value 19.69 19.06 18.31 18.28
Market value:
High 31.00 27.00 29.00 26.75
Low 25.25 24.94 25.25 22.00
Close 29.75 26.50 27.75 25.50
_____________________________________________________________________
Shares outstanding end
of period (000) 14,189 14,146 14,128 14,105
_____________________________________________________________________
Performance Ratios (Annualized)
Net interest margin 4.77% 4.95% 5.12% 5.08%
Return on average assets 0.89 1.03 1.21 1.13
Return on average
shareholders' equity 10.89 11.40 12.71 11.97
_____________________________________________________________________
At Period End (millions)
Total assets $3,436 $3,385 $2,704 $2,723
Total loans and leases 2,386 2,348 1,816 1,800
Total deposits 2,816 2,807 2,252 2,272
Total shareholders' equity 279 270 259 258
_____________________________________________________________________
Average Balances (millions)
Total assets $3,378 $2,914 $2,693 $2,715
Total loans and leases 2,365 1,998 1,801 1,809
Total deposits 2,788 2,424 2,251 2,269
Total shareholders' equity 275 263 257 257
_____________________________________________________________________
Nonperforming Assets (000)
Nonaccrual loans $21,057 $18,676 $18,156 $17,776
Restructured loans 560 394 299 100
Other real estate owned 1,890 3,175 2,230 2,612
Total 23,507 22,245 20,685 20,488
_____________________________________________________________________
Statistics
Allowance for loan
losses/loans 1.42% 1.40% 1.36% 1.35%
Nonperforming assets/loans
& OREO 0.98 0.95 1.14 1.14
Nonperforming assets/assets 0.68 0.66 0.77 0.75
Net ins chrgd off/avg ins
(annualized) 0.10 0.09 0.23 0.15
Shareholders' equity/assets 8.13 7.96 9.57 9.47
_____________________________________________________________________
1994 1993
____________________________________
Second First Fourth Third
_____________________________________________________________________
Summary of Operations (000)
Interest income $44,529 $42,775 $43,504 $40,752
Net interest income 29,559 27,995 28,099 25,589
Provision for loan losses 1,358 1,058 1,295 1,366
Investment security gains
(losses) 9 179 320 421
Noninterest income 8,369 8,314 9,021 7,103
Noninterest expense 26,701 27,457 26,596 23,981
Income taxes 2,652 1,764 2,364 1,547
Net income 7,226 6,209 7,185 6,219
_____________________________________________________________________
Per Common Share Data
Net income:
Primary $0.50 $0.43 $0.50 $0.46
Fully diluted 0.50 0.43 0.49 0.46
Dividends 0.21 0.19 0.19 0.19
Book value 18.08 18.06 18.08 17.56
Market value:
High 26.00 26.00 25.75 28.50
Low 22.75 22.75 23.25 21.00
Close 24.50 22.75 25.00 25.00
_____________________________________________________________________
Shares outstanding end
of period (000) 14,061 14,063 14,115 13,102
_____________________________________________________________________
Performance Ratios (Annualized)
Net interest margin 4.97% 4.78% 4.77% 4.69%
Return on average assets 1.06 0.93 1.06 0.99
Return on average
shareholders' equity 11.44 9.71 11.26 10.86
_____________________________________________________________________
At Period End (millions)
Total assets $2,739 $2,761 $2,714 $2,501
Total loans and leases 1,826 1,799 1,780 1,659
Total deposits 2,279 2,288 2,247 2,060
Total shareholders' equity 254 254 255 230
_____________________________________________________________________
Average Balances (millions)
Total assets $2,732 $2,703 $2,702 $2,502
Total loans and leases 1,804 1,774 1,767 1,636
Total deposits 2,282 2,247 2,251 2,074
Total shareholders' equity 253 259 253 227
_____________________________________________________________________
Nonperforming Assets (000)
Nonaccrual loans $17,283 $21,790 $21,271 $21,997
Restructured loans 151 158 238 172
Other real estate owned 2,878 1,768 2,185 2,447
Total 20,312 23,716 23,694 24,616
_____________________________________________________________________
Statistics
Allowance for loan
losses/loans 1.29% 1.29% 1.27% 1.23%
Nonperforming assets/loans
& OREO 1.11 1.32 1.33 1.49
Nonperforming assets/assets 0.74 0.86 0.87 0.98
Net ins chrgd off/avg ins
(annualized) 0.23 0.09 0.19 0.15
Shareholders' equity/assets 9.28 9.20 9.40 9.20
_____________________________________________________________________
CONTACT: Citizens Banking Corp., Flint John W. Ennest, 810/257-2557 |
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