Citizens Banking Corp. reports third quarter and nine-month 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)--Oct. 11, 1995--Citizens Banking Corp. earned net income of $8,984,000 for the three months ended Sept. 30, 1995, compared with $7,745,000 in the third quarter of 1994, an increase of $1,239,000 or 16.0 percent. 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 were 61 cents compared with $0.54 per share in the third quarter of 1994. Returns on average assets and average equity during the third quarter of 1995 were 1.05 percent and 12.66 percent, respectively, compared with 1.13 percent and 11.97 percent, respectively, for the third quarter of 1994. Citizens completed its 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. on Feb. 28, 1995. Those 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 since the date of acquisition. On Aug. 8, 1995, the Federal Deposit Insurance Corp. established a new rate schedule for bank deposit insurance premiums. The new rate schedule is based on capital adequacy and other regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. measurements. Citizens' results for the third quarter of 1995 include a refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies of insurance assessments of $964,000 (net, after taxes) as a result of the lower rate schedule. For the first nine months of 1995, net income was $23,837,000 or $1.63 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, compared with $21,180,000 or $1.46 per share for the first nine months of 1994. Returns on average assets and average equity for the first nine months of 1995 were 0.99 percent and 11.66 percent, respectively, compared with 1.04 percent and 11.04 percent, respectively, for the first nine months of 1994. Net interest income was $14,090,000 higher during the first nine months of 1995 than in 1994. The increase resulted from higher levels 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 associated with the acquisition of the new regional offices. Net interest margin was 4.80 percent during the nine month period, compared with 4.95 percent during the same period in 1994. The decline in margin is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk , in part, to the cost of 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. associated with the acquisition of the new regional offices. The corporation recorded a provision for loan losses of $4,504,000 during the nine months ended Sept. 30, 1995, compared with $3,771,000 during the same period of 1994. The higher provision is the result of increased loans outstanding and the intent to maintain a strong allowance ratio. The ratio of net loans charged off to average loans during the first nine months of 1995 was 0.15 percent, down from 0.16 percent in 1994. Total 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 Sept. 30, 1995, were 0.74 percent of total assets, down from 0.81 percent a year ago. The allowance for loan losses stood at 1.40 percent of total loans, up from 1.35 percent in 1994. Noninterest expense during the first nine months of 1995 was $91,135,000 compared with $80,917,000 during the same period in 1994. The increase reflects the inclusion of the newly acquired banking offices as well as some nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. 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 June: see month. 1995 and are expected to generate 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 $26,446,000, up from $25,133,000 in the first nine months of 1994. At Sept. 30, 1995, total assets were $3,401,902,000, up 24.9 percent from $2,723,275,000 at Sept. 30, 1994. Total loans increased 34.7 percent to $2,424,110,000 at Sept. 30, 1995, from $1,800,335,000 a year ago, while total deposits increased 22.0 percent to $2,771,152,000. 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. was $286,612,000 or $20.08 per share at Sept. 30, 1995, compared with $257,805,000 or $18.28 per share a year ago. Citizens Banking Corp. is the sixth largest bank holding company headquartered in Michigan and is the parent of 7 commercial banks with 92 offices. They are: Citizens Commercial & Savings Bank, 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. , Second National Bank of Bay City, State Bank of Standish, National Bank of Royal Oak, 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 . (Financial highlights follow) -0- Selected Quarterly Information Citizens Banking Corp. and Subsidiaries
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
1995 1995 1995 1994 1994
_____________________________________________________________________
Summary of Operations
(thousands)
Interest income $62,779 $62,248 $51,821 $46,836 $45,849 Interest expense 27,734 26,887 20,268 16,305 15,534 Net interest income 35,045 35,361 31,553 30,531 30,315 Provision for loan losses 1,504 1,580 1,420 1,532 1,355 Net int. inc. after prov. for loan losses 33,541 33,781 30,133 28,999 28,960 Investment security gains (losses) 15 13 91 4 (35) Noninterest income 9,586 8,889 7,971 8,564 8,450 Noninterest expense 30,587 32,468 28,080 26,328 26,759 Income taxes 3,571 2,746 2,731 3,005 2,871 Net income 8,984 7,469 7,384 8,234 7,745 _____________________________________________________________________ At Period End (millions) Total assets $3,402 $3,436 $3,385 $2,704 $2,723 Total earning assets 3,116 3,093 3,059 2,485 2,481 Total loans 2,424 2,386 2,348 1,816 1,800 Total deposits 2,771 2,816 2,807 2,252 2,272 Total shareholders' equity 287 279 270 259 258 _____________________________________________________________________ Average Balances (millions) Total assets $3,392 $3,378 $2,914 $2,693 $2,715 Total earning assets 3,103 3,091 2,669 2,503 2,511 Total loans 2,409 2,365 1,998 1,801 1,809 Total deposits 2,780 2,788 2,424 2,251 2,269 Total shareholders' equity 282 275 263 257 257 Shareholders' equity/assets 8.31% 8.14% 9.03% 9.54% 9.47% _____________________________________________________________________
Credit Quality Statistics
(thousands)
Nonaccrual loans $22,450 $21,057 $18,676 $18,156 $17,776
Loans 90 or more days
past due and still
accruing 109 479 1,354 1,253 1,457
Restructured loans 527 560 394 299 100
_______ _______ _______ _______ _______
Total nonperforming
loans 23,086 22,096 20,424 19,708 19,333
Other real estate owned 1,980 1,890 3,175 2,230 2,612
_______ _______ _______ _______ _______
Total nonperforming
assets $25,066 $23,986 $23,599 $21,938 $21,945
_______ _______ _______ _______ _______
_______ _______ _______ _______ _______
Allowance for loans
losses ratio 1.40% 1.42% 1.40% 1.36% 1.35%
Allowance for loan
losses as a percent of
nonperforming assets 135.24 141.30 139.48 112.65 110.37
Allowance for loan
losses as a percent
of nonperforming loans 146.84 153.39 161.16 125.40 125.28
Nonperforming assets as
a percent of total loans
plus OREO 1.03 1.00 1.00 1.21 1.22
Nonperforming assets as a
percent of total assets 0.74 0.70 0.70 0.81 0.81
Net loans charged off as
a percent of average loans
(annualized) 0.25 0.10 0.09 0.23 0.15
_____________________________________________________________________
Per Common Share Data Net Income: Primary $0.62 $0.51 $0.51 $0.56 $0.54 Fully diluted 0.61 0.51 0.51 0.56 0.54 Dividends 0.23 0.23 0.21 0.21 0.21 Market value: High $33.25 $31.00 $27.00 $29.00 $26.75 Low 29.25 25.25 24.94 25.25 22.00 Close 30.38 29.75 26.50 27.75 25.50 Book value 20.08 19.69 19.06 18.31 18.28 Shares outstanding, end of period (000) 14,276 14,189 14,146 14,128 14,105 _____________________________________________________________________ Performance Ratios (annualized) Net interest margin (FTE) 4.70% 4.77% 4.95% 5.12% 5.08% Return on average assets 1.05 0.89 1.03 1.21 1.13 Return on average shareholders' equity 12.66 10.89 11.40 12.71 11.97 _____________________________________________________________________ Financial Summary and Comparison Citizens Banking Corp. and Subsidiaries
Nine Months Ended
Sept. 30, Year Ended
_________________________ Dec. 31,
1995 1994 % Change 1994
______________________________________________________________________
Summary of Operations (thousands)
Interest income $176,848 $133,153 32.8% $179,989
Interest expense 74,889 45,284 65.4 61,589
Net interest income 101,959 87,869 16.0 118,400
Provision for loan losses 4,504 3,771 19.4 5,303
Net interest income after
provision for loan losses 97,455 84,098 15.9 113,097
Investment security gains 119 153 (22.2) 157
Noninterest income 26,446 25,133 5.2 33,697
Noninterest expense 91,135 80,917 12.6 107,245
Income taxes 9,048 7,287 24.2 10,292
Net income 23,837 21,180 12.5 29,414
______________________________________________________________________
At Period End (millions)
Total assets $3,402 $2,723 24.9% $2,704
Total earning assets 3,116 2,461 26.6 2,485
Total loans 2,424 1,800 34.7 1,816
Total deposits 2,771 2,272 22.0 2,252
Total shareholders' equity 287 258 11.2 259
______________________________________________________________________
Average Balances (millions)
Total assets $3,230 $2,717 18.9% $2,711
Total earning assets 2,956 2,506 18.0 2,500
Total loans 2,259 1,796 25.8 1,797
Total deposits 2,665 2,266 17.6 2,262
Total shareholders' equity 273 256 6.6 257
Shareholders' equity/assets 8.46% 9.44% (10.4) 9.47%
______________________________________________________________________
Credit Quality Statistics (thousands)
Nonaccrual loans $22,450 $17,776 26.3% $18,156
Loans 90 or more days past due
and still accruing 109 1,457 (92.5) 1,253
Restructured loans 527 100 427.0 299
_______ _______ _______
Total nonperforming loans 23,086 19,333 19.4 19,708
Other real estate owned 1,980 2,612 (24.2) 2,230
_______ _______ _______
Total nonperforming assets $25,066 $21,945 14.2 $21,938
_______ _______ _______
_______ _______ _______
Allowance for loans losses ratio 1.40% 1.35% 3.7 1.36% Allowance for loan losses as a percent of nonperforming assets 135.24 110.37 22.5 112.65 Allowance for loan losses as a percent of nonperforming loans 146.84 125.28 17.2 125.40 Nonperforming assets as a percent of total loans plus OREO 1.03 1.22 (15.7) 1.21 Nonperforming assets as a percent of total assets 0.74 0.81 (8.6) 0.81 Net loans charged off as a percent of average loans (annualized) 0.15 0.16 (6.2) 0.17 ____________________________________________________________________ Per Common Share Data Net Income: Primary $1.64 $1.47 11.6% $2.03 Fully diluted 1.63 1.46 11.6 2.03 Dividends 0.67 0.61 9.8 0.82 Market value: High $33.25 $26.75 24.3 $29.00 Low 24.94 22.00 13.4 22.00 Close 30.38 25.50 19.1 27.75 Book value 20.08 18.28 9.8 18.31 Shares outstanding, end of period (000) 14,276 14,105 1.2 14,128 ____________________________________________________________________ Performance Ratios (annualized) Net interest margin (FTE) 4.80% 4.95% (3.0)% 4.99% Return on average assets 0.99 1.04 (4.8) 1.09 Return on average shareholders' equity 11.66 11.04 5.6 11.46 ____________________________________________________________________ CONTACT: Citizens Banking Corp., Flint John W. Ennest, 810/257-2557 |
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