Citizens Banking Corporation Focusing on Drivers of Future Earnings Growth.

SAN FRANCISCO -- William R. Hartman, chairman, president and CEO of Citizens Banking Corporation (Nasdaq:CBCF), said today the company is focused on the drivers of future earnings growth after making impressive strides since undergoing a major restructuring initiative that began in 2002.

"Citizens is looking at continued and increased success of our consumer banking platform, the turnaround of our commercial line of business, the invigoration of our wealth management line, and we have made a successful entry into Oakland County, Michigan, one of the best and fastest growing markets in the country," Hartman said during remarks at the West Coast SuperCommunity Bank Conference here. "We have a proven new management team committed to long-term growth and shareholder value, a new vision and direction for the company, and the long-term outlook for earnings growth is positive."

Hartman, who joined Citizens Banking Corporation in 2002, led the company through a restructuring that reduced layers of management, making decision-making quicker and easier. "Citizens has established Market Leadership Teams and community presidents, invested in new product capability and staff training and education, and we're working to ensure the success of the bank's expansion initiative in Oakland County," Hartman said.

Citizens Bank announced last November that its Oakland County expansion would include two new hub offices and the opening of 10 to 14 new branches. The initiative has resulted in the hiring of 85 people in Oakland County over the past year and will continue to significantly add to the company's current Oakland County presence of 12 locations. "The initiative gives Citizens' local bankers greater authority to handle client needs and act quickly on loan applications and other decisions, and provides the marketplace with convenient access to bankers," Hartman said.

He said the company's priorities are accelerated revenue growth, continued improvement in credit quality, rationalization of existing markets, and the continued development of a "high energy, boundaryless, market-driven high-performance culture."

Hartman also described Citizens' new brand image campaign, which includes an updated logo and theme. "We have a more sophisticated, action-oriented logo that better reflects the company's new vision and culture, and our new 'Let's Make It Happen' theme reflects the company's proactive approach to providing clients with superior financial solutions."

He said Citizens is re-branding all of its 115 Michigan locations this year, with Wisconsin and Iowa locations to follow in 2005.

Charles D. Christy, chief financial officer for the corporation, presented the company's financial highlights to conference attendees, pointing out that Citizens' performance trends are improving and that the company has a strong capital position. Christy pointed to improvements between 2002 and 2003 in net operating income, earnings per share, return on assets, and return on equity. Christy also discussed improvements in second quarter 2004 results compared with the second quarter 2003 and the first quarter of this year.

Citizens Banking Corporation is a diversified financial services company, providing a wide range of commercial, consumer, mortgage banking, trust investment and financial planning services to a broad client base. Citizens Banking Corporation serves markets through Citizens Bank offices in Michigan, and through F&M Bank offices in Wisconsin and Iowa. Citizens Banking Corporation is the second-largest bank holding company headquartered in Michigan, with assets of $7.748 billion as of June 30, 2004. More information about Citizens Banking Corporation is available at www.citizensonline.com.