Citizens Reports 15% Increase in Third Quarter Earnings.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 14, 1999-- Citizens Financial Group, Inc. ("Citizens") today reported net income of $57.6 million for the quarter ended June June: see month. 30, 1999, a 15 percent increase over the earnings of $50.1 million reported for the comparable quarter in 1998. Net income for the nine-month period ended June 30, 1999 was $172.4 million, a 15 percent increase over earnings of $150.5 million reported for the comparable period in 1998. Citizens' fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. is September September: see month. 30. At June 30, 1999 total assets were $19.8 billion for the four-state bank holding company, compared to $17.0 billion in 1998, reflecting strong growth in commercial loans, consumer loans and deposits. Two recently announced acquisitions will bring total assets to $28 billion in early 2000, making Citizens the 33rd largest bank in the country. The purchase of State Street Bank's commercial banking business will add $2.2 billion by the end of 1999, and the acquisition of UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) Corp., expected to close in early 2000, will add $5.9 billion to Citizens' balance sheet. "We are very pleased with the exciting developments in our 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. franchise. The current quarter shows continued evidence of our strong organic growth. The acquisitions of State Street's commercial banking business and USTrust give us real momentum as we strive to become the bank of choice for commercial and retail customers in New England," said 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, Chairman, President, and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Citizens Financial Group, Inc. Net Interest Income Net interest income for the quarter was $170.0 million, up 8 percent from the year ago quarter. Citizens' total loan and lease portfolios grew 10 percent over the prior year, including 26 percent growth in the commercial loan and mortgage portfolio, and 131 percent growth in the leasing portfolio. Citizens' consumer loans increased 23 percent, reflecting increased volume in home equity, automobile, and student loans. These increases were offset by declining balances in consumer mortgage (22 percent, primarily due to declining rates) and bankcard bank·card n. A card issued by a bank authorizing the holder to receive bank services and often functioning as a debit card. (due to the sale of the business in September 1998). The investment portfolio increased 26 percent during the year to $7.2 billion at June 30, 1999. Deposit growth was very strong during the last year, with total deposits increasing 5 percent, led by a 16 percent increase in demand deposits. This growth reflects the continued success of Citizens' Circle Account deposit products. Noninterest Income Excluding gains on securities sales of $1.8 million and $4.3 million for the quarters ended June 30, 1999 and 1998, and excluding the run rate impact of exiting the bankcard business, noninterest income was $49.3 million, an increase of 14 percent over the prior year. Noninterest Expense Total noninterest expense was $129.4 million for the quarter compared to $124.5 million in the prior year. Compensation and employee benefit expenses increased $.9 million from the prior year reflecting a 3 percent increase in headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. . Occupancy and equipment costs were $2.6 million higher than in 1998, and outside services increased $2.5 million, both primarily due to Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 costs. Other noteworthy items include a decrease in acquisition expenses and an increase in amortization expenses due to the 1998 acquisitions of Woburn Woburn, village, England Woburn (w  `bərn), village, Bedfordshire, S central England. National Bank and
Branford 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. .Asset Quality Reflecting positive credit quality trends, 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. decreased $13.8 million, from $55.9 million, or .33 percent of total assets, to $42.1 million, or .21 percent of total assets at June 30, 1999. The allowance for possible credit losses was $173.6 million at June 30, 1999 representing 1.65 percent of total loans, compared to a reserve of $198.6 million at June 30, 1998, which was 2.09 percent of total loans. The reduction in the allowance for possible credit losses and the related decrease in the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. provision expense primarily reflect the 1998 sale of the bankcard business, which by its nature tends to carry more reserves than other portfolios. Key Performance Ratios Cash earnings -- earnings before the amortization of goodwill and nonqualifying core deposit intangibles -- were $68.6 million for the quarter ended June 30, 1999, compared with $58.2 million for the year ago quarter, an increase of 18 per cent. 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 and cash return on equity was 20.75 percent, compared to prior year returns of 1.45 percent on assets and 21.37 percent on equity. The cash basis efficiency ratio, which shows expenses (excluding amortization) as a percentage of income, (excluding security gains) was 53.06 percent for the third quarter, compared to 56.79 percent in the prior year. This improvement reflects Citizens' strong growth in net interest income and noninterest income, and an increasing level of operational efficiency. Citizens Financial Group, Inc., is a $19.8 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. It operates 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 Massachusetts (măsəch `sĭts), most populous of the New England states of the NE United States. , 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 StatesRhode 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. . Citizens is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of The Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba plc. With 279 branches and 564 ATMs in Connecticut, Massachusetts, New Hampshire, and Rhode Island, Citizens is the third largest bank holding company in New England, and among the 50 largest 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. . For more information, please contact us at our website www.citizensbank.com. -0-
CITIZENS FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
JUNE 30,
(In Thousands) 1999 1998
Assets
Cash and due from banks $ 564,369 $ 609,560
Federal funds sold and other
short-term investments 55,386 109,355
Securities 7,240,478 5,712,950
Loans and leases:
Consumer mortgages 2,186,748 2,731,452
Commercial real estate 2,094,869 1,848,022
Commercial and industrial 2,480,272 1,872,700
Consumer 3,164,838 2,834,678
Lease financing 606,518 259,250
Other 10,199 3,643
Total loans and leases 10,543,444 9,549,745
Less: Allowance for possible
credit losses 173,625 198,633
Net loans and leases 10,369,819 9,351,112
Mortgages held for sale 56,619 73,520
Premises and equipment 206,333 190,286
Goodwill and core deposit intangible 587,815 602,045
Other assets 684,947 364,875
Total assets $ 19,765,766 $ 17,013,703
Liabilities and Stockholder's Equity
Deposits:
Demand $ 1,950,904 $ 1,713,017
Savings 6,407,151 5,840,580
Term deposits 5,995,821 6,025,588
Total deposits 14,353,876 13,579,185
Borrowed funds 3,226,150 1,389,649
Trust preferred 150,000 150,000
Other liabilities 178,746 171,782
Total liabilities 17,908,772 15,290,616
Stockholder's Equity:
Common stock:
$.01 par value, 5,000 shares
authorized, 2,000 shares issued
and outstanding -- --
Capital surplus 996,404 996,404
Retained earnings 968,642 702,570
Unrealized gain/(loss) on securities (108,052) 24,113
Total stockholder's equity 1,856,994 1,723,087
Total liabilities and
stockholder's equity $ 19,765,766 $ 17,013,703
CITIZENS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
(In Thousands) 1999 1998 1999 1998
Interest Income:
Loans and leases $203,414 $200,459 $601,824 $605,624
Securities and
short-term investments 112,824 94,245 320,749 276,110
Total interest income 316,238 294,704 922,573 881,734
Interest expense 146,234 137,682 425,636 419,001
Net interest income 170,004 157,022 496,937 462,733
Provision for credit losses 6,828 4,451 12,729 17,222
Net interest income
after provision
for credit losses 163,176 152,571 484,208 445,511
Noninterest income:
Mortgage banking 2,194 3,162 8,511 8,721
Mutual funds and annuities 5,243 4,294 11,609 11,188
Trust income 5,708 5,848 17,327 15,845
Service operations 29,801 26,021 87,079 77,748
Net gains on sales
of securities 1,814 4,277 16,863 21,480
Other noninterest income 7,855 6,776 22,402 18,664
Total noninterest income 52,615 50,378 163,791 153,646
Noninterest expense:
Compensation and
employee benefits 63,359 62,431 182,769 173,535
Occupancy and equipment 21,784 19,228 64,264 56,209
Outside services 16,054 13,559 47,393 40,694
Promotional expenses 5,522 5,165 16,341 15,921
Amortization of goodwill
and core deposit intangible 12,217 9,533 36,711 33,271
Other noninterest expense 10,427 14,557 41,886 49,968
Total noninterest expense 129,363 124,473 389,364 369,598
Income before taxes 86,428 78,476 258,635 229,559
Income taxes 28,814 28,416 86,263 79,020
Net income $ 57,614 $ 50,060 $172,372 $150,539
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