Citizens Earns $45 Million in 3rd Quarter; Record $142 Million for Nine Months.PROVIDENCE Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. , R.I.--(BUSINESS WIRE)--July 22, 1997--Driven by record core operating results, Citizens Financial Group, Inc. ("Citizens") today reported net income of $45.1 million for the third quarter ended June June: see month. 30, compared to net income of $22.4 million earned in the quarter ended June 30, 1996. For the first nine months of the fiscal year, Citizens reported record net income of $142.3 million, compared to $100.2 million reported for the nine-month period last year, a 42 percent increase. The quarterly results reflect continued strong organic growth in loans and deposits, an improving net interest margin, and an increase in noninterest fee-based income. "The four-state franchise we've we've Contraction of we have. we've have assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. is growing rapidly and paying off in record earnings. Our customers value Citizens's products and they like our high level of service," said Chairman, President and Chief Executive Officer Lawrence Lawrence. 1 City (1990 pop. 26,763), Marion co., central Ind., a residential suburb of Indianapolis, on the West Fork of the White River. It has light manufacturing. 2 City (1990 pop. 65,608), seat of Douglas co., NE Kans. K. Fish. Assets for the four-state bank holding company rose to $15.8 billion at June 30, compared to $14.7 billion a year ago, a 7.6 percent increase reflecting completion of the acquisitions of Farmers & Mechanics Bank The Mechanics Bank, founded in 1905, is a financial service company based in the San Francisco Bay Area. The bank has $2.644 billion in assets and 33 branches in Contra Costa, Alameda, San Francisco, Sacramento, Napa, El Dorado, Marin, and Placer Counties. in Middletown Middletown, cities, United States Middletown. 1 Industrial city (1990 pop. 42,762), Middlesex co., central Conn., on the west bank of the Connecticut River; settled 1650, inc. 1784, town and city consolidated 1923. , CT in November 1996, and Grove Bank in Newton and Brookline, MA, in March 1997. Citizens acquired First NH in April 1996. Citizens is among the 50 largest banks nationally and one of the fastest growing in the country. The company has completed 11 acquisitions since 1992. The acquisition announced earlier this year of BNH BNH Banco Nacional de Habitação (Brazil; National Bank of Habitation Brazilian) BNH Brand New Heavies (UK band) BNH Bauer Nike Hockey Bancshares, Inc., parent of The Bank of New Haven New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many (CT), is expected to be completed in September. In the third quarter, the company also announced a strategic partnership with Star Market in which Citizens will open bank branches in 22 Star Markets within Route 495 and on Cape Cod Cape Cod, narrow peninsula of glacial origin, 399 sq mi (1,033 sq km), SE Mass., extending 65 mi (105 km) E and N into the Atlantic Ocean. It is generally flat, with sand dunes, low hills, and numerous lakes. , both in eastern Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. . The partnership with Star complements existing
relationships with Shaw's Supermarkets This article is about Shaw's Supermarkets. For the historic original Star Market chain owned by the Mugar family, see Star Market. Shaw's, along with sister store, Star Market, is a wholly owned subsidiary of Eden Prairie, Minnesota-based Supervalu. , Shop and Save, and Ro-Jacks in Massachusetts, New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). and Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. and will give Citizens approximately 50 supermarket branches by late 1997. Net Interest Income For the third quarter ending June, 30, Citizens reported net interest income of $147.8 million, compared with $119.4 million for the period ending June 30, 1996, a 24 percent increase. The increase was related, in part, to the company's acquisitions, and to across-the-board increases in the various categories of loans and leases, which grew overall during the period to $9.2 billion, an 11 percent increase over loans and leases of $8.2 billion at June 30, 1996. For the quarter, the net interest margin improved to 4.27 percent, up from 4.04 percent. Noninterest Income For the period ending June 30, noninterest income totaled $39.8 million, an 8.9 percent increase over noninterest income of $36.6 million earned in the same quarter a year ago. Fee income from mutual funds and annuities sales, trust, and banking services were up significantly in the quarter, attributable equally to organic and acquisition-related growth, while income from mortgage banking declined nearly $11 million, reflecting Citizens' decision to exit the 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. business and close wholesale mortgage offices outside New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . In the quarter, Citizens reported a $5.8 million gain on the sale of securities, compared to a loss in the same quarter last year of $392,000. Noninterest Expense Total noninterest expense for the period was $107.9 million, down 1.6 percent from total noninterest expenses of $109.6 million for the period ending June 30, 1996. The prior year quarter included a one-time $9.6 million charge related to the acquisition of First NH. Asset Quality 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 were $100.2 million, or .64 percent of total assets, compared to NPAs of $99.0 million at June 30, 1996. The reserve for problem loans and leases was $186.4 million at quarter end, representing 211.0 percent of problem loans, compared to a reserve of $163.4 million at June 30, 1996. In the quarter, Citizens set aside a provision of $4.8 million for possible credit losses, compared to a provision of $6.8 million set aside in the third quarter last year, a 29 percent decrease reflecting a stronger economy and improved credit quality. Key Performance and Capital Ratios Cash earnings -- earnings before the amortization of goodwill and nonqualifying core deposit intangibles -- were $55.0 million for the quarter ending June 30, compared with cash earnings of $30.5 million for the same period last year. For the quarter, cash return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.48 percent, cash return on equity was 26.77 percent, and efficiency ratio was 52.54 percent. At June 30, the leverage capital ratio was 6.92 percent and the total risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. was 11.95 percent, both well in excess of minimum federal regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . Citizens Financial Group, Inc., is a $15.8 billion 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. company headquartered in Providence, RI, with some 280 offices and more than 360 ATMs operating as Citizens Bank in Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). , Massachusetts, New Hampshire and Rhode Island. Citizens is owned 76.5 percent by The Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba plc, with the remainder held by Bank of Ireland This article is about the commercial banking company Bank of Ireland. For the central bank of the Republic of Ireland, see Central Bank of Ireland. The Bank of Ireland (Irish: Banc na hÉireann . -0-
CITIZENS FINANCIAL GROUP INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30,
%
(In thousands) 1997 1996 INC.(DEC.)
Assets
Cash and due from banks $522,037 $603,188 (13.5)
Federal funds sold and other
short-term investments 72,639 49,688 46.2
Securities 4,521,479 4,520,703 0.0
Loans and leases:
Consumer mortgages 3,467,807 3,228,653 7.4
Commercial real estate 1,728,988 1,529,891 13.0
Commercial and industrial 1,477,748 1,212,326 21.9
Consumer 2,367,417 2,120,224 11.7
Lease financing 145,093 101,537 42.9
Other 2,827 36,713 (92.3)
Total loans and leases 9,189,880 8,229,344 11.7
Less: Allowance for
possible credit losses 186,360 163,430 14.0
Net loans and leases 9,003,520 8,065,914 11.6
Mortgages held for sale 43,328 115,264 (62.4)
Premises and equipment 204,345 200,630 1.9
Accrued interest receivable 88,754 115,961 (23.5)
Goodwill and core deposit
intangible 617,632 588,255 5.0
Mortgage servicing rights - 70,147 (100.0)
Other assets 690,846 323,717 113.4
Total assets $15,764,580 $14,653,467 7.6
Liabilities and Stockholders' Equity
Deposits:
Demand 1,429,814 1,279,716 11.7
Mortgage escrow accounts 19,440 155,888 (87.5)
Savings 5,477,520 4,798,725 14.1
Term deposits 6,046,916 5,264,270 14.9
Total deposits 12,973,690 11,498,599 12.8
Borrowed funds 996,170 1,669,932 (40.3)
Trust Preferred 150,000 - 100.0
Other liabilities 147,319 188,816 (22.0)
Total liabilities 14,267,179 13,357,347 6.8
Stockholders' Equity:
Common stock:
$.01 par value, 5,000 shares
authorized, 2,000 shares
issued and outstanding. - -
Capital surplus 996,404 996,404 -
Retained earnings 509,692 339,447 50.2
Unrealized gain/(loss) on
securities (8,695) (39,731) (78.1)
Total stockholders' equity 1,497,401 1,296,120 15.5
Total liabilities and
stockholders' equity $15,764,580 $14,653,467 7.6
-0-
CITIZENS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
June 30,
(In Thousands) 1997 1996
Interest income:
Loans and leases $197,341 $164,767
Securities and short-term
investments 81,486 64,997
Total interest income 278,827 229,764
Interest expense 130,992 110,341
Net interest income 147,835 119,423
Provision for credit losses 4,845 6,802
Net interest income after
provision for credit losses 142,990 112,621
Noninterest income:
Mortgage banking 1,678 12,406
Mutual funds and annuities 2,457 1,526
Trust income 4,802 3,843
Service operations 22,567 15,097
Net gains on sales of securities 5,773 (392)
Gain on sale of mortgage servicing - -
All other noninterest income 2,527 4,083
Total noninterest income 39,804 36,563
Noninterest expense:
Compensation and employee benefits 50,777 46,574
Occupancy and equipment 17,732 17,559
Outside services 10,487 14,118
Insurance and other taxes 2,127 2,071
Promotional expenses 4,801 4,965
Amortization of goodwill and core
deposit intangible 11,383 9,924
Amortization of mortgage servicing
rights 32 4,621
Nonperforming asset charges 683 834
All other noninterest expense 9,828 8,957
Total noninterest expense 107,850 109,623
Income before taxes 74,944 39,561
Applicable income taxes 29,797 17,155
Net income $45,147 $22,406
Nine months ended
June 30,
(In Thousands) 1997 1996
Interest income:
Loans and leases $566,723 $423,586
Securities and short-term
investments 237,358 163,639
Total interest income 804,081 587,225
Interest expense 380,614 285,556
Net interest income 423,467 301,669
Provision for credit losses 19,195 (15,797)
Net interest income after
provision for credit losses 404,272 317,466
Noninterest income:
Mortgage banking 14,714 30,072
Mutual funds and annuities 6,583 4,447
Trust income 13,607 7,523
Service operations 64,696 34,643
Net gains on sales of securities 13,088 25,565
Gain on sale of mortgage servicing 45,019 -
All other noninterest income 8,339 7,547
Total noninterest income 166,046 109,797
Noninterest expense:
Compensation and employee benefits 151,947 113,253
Occupancy and equipment 53,065 41,352
Outside services 38,753 23,282
Insurance and other taxes 5,694 6,446
Promotional expenses 14,858 11,519
Amortization of goodwill and core
deposit intangible 32,069 23,815
Amortization of mortgage servicing
rights 2,321 10,092
Nonperforming asset charges 2,819 2,442
All other noninterest expense 33,024 22,115
Total noninterest expense 334,550 254,316
Income before taxes 235,768 172,947
Applicable income taxes 93,505 72,761
Net income $142,263 $100,186
Note: The financial information contained herein has been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). CONTACT: Citizens Financial Group Jim Dorsey
Jim Dorsey is an American lawyer with the firm Fredrikson & Byron.[1] Dorsey specializes in Commercial litigation and is a founder of Minnesota Advocates for Human Rights. , (401) 455-5934 Arlene Fortunato, (617) 422-8391 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion