Citizens Reports 61% Increase in Second Quarter Operating Earnings.PROVIDENCE, R.I.--(BUSINESS WIRE)--May 7, 1998--Citizens Financial Group, Inc. ("Citizens") today reported net income of $54.3 million for the quarter ended March 31, 1998, a 61 percent increase over the operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $33.7 million reported for the comparable quarter of 1997. Net income for the quarter ended March 31, 1997 also included an after tax gain of $15.1 million from the sale of 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. . Net income for the six-month period ended March 31, 1998 was $100.5 million, a 45 percent increase over operating earnings of $69.3 million reported for the comparable period of 1997. Net income for the six-month period ended March 31, 1997 also included an after tax gain of $27.8 million from the sale of mortgage servicing. "We are very pleased with another record quarter at Citizens. These results reflect outstanding core growth within the company. Our strategy of building a regional supercommunity bank which puts the customer first is clearly creating real, long term value in the marketplace," said Citizens Chairman, President and Chief Executive Officer Lawrence K. Fish. Assets for the four-state bank holding company rose to $16.8 billion at March 31, 1998 compared to $15.5 billion a year ago, reflecting continued consumer and commercial loan and deposit growth and completion of the acquisition , in August 1997, 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 ($300 million in assets) in New Haven, CT. Citizens recently announced two new acquisitions: Woburn National Corporation, a commercial bank in Woburn, Massachusetts Woburn (/'wu.bə(r)n/) is a city in Middlesex County, Massachusetts, USA. The population was 37,258 at the 2000 census. Woburn is the birthplace of Anglo-American scientist Benjamin Thompson, a.k.a. ; and four branches from 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. in Connecticut. The Woburn acquisition will add $160 million in assets to Citizens' Massachusetts franchise. The Branford acquisition will add $67 million in deposits. Both acquisitions are expected to close in the summer of 1998. Net Interest Income Net interest income for the quarter ended March 31, 1998 was $154.5 million, up 10.6 percent over net interest income of $139.6 million earned in the comparable period a year ago. The increase was due to continued loan and deposit growth and the effect of the company's acquisitions during the year. Noninterest Income Noninterest income for the quarter ended March 31, 1998 was $53.8 million, a 47 percent increase over core noninterest income of $36.5 million reported for the comparable quarter of 1997. The quarter ended March 31, 1997 also included a $23.8 million gain associated with the sale of mortgage servicing rights. Acquisitions during the year accounted for only $.9 million of the increase. Other noteworthy increases included a $3.3 million increase in service operations income. Income from the sale of mutual funds and annuities continued to experience growth with an increase of $1.7 million or 78 percent over the quarter ended March 31, 1997. Net gains on the sale of securities increased to $9.6 million for the quarter ended March 31, 1998 from $3.0 million for the comparable period a year ago. Noninterest Expense Total noninterest expense for the quarter ended March 31, 1998 was $125.6 million, an increase of $11.3 million or 9.9 percent over the second quarter of 1997. The increase is related in part to increased compensation and benefit costs primarily in the areas of normal salary and benefit increases, additional incentive costs tied to Citizens' performance, and commissions on mutual fund sales and mortgage company activity. Also, Citizens has incurred additional consultant and computer charges related to technological advances. 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 March 31, 1998 totaled $83.6 million, or .50 percent of total assets, compared to $109 million, or .70 percent of total assets at March 31, 1997. The allowance for possible credit losses was $200.5 million at March 31, 1998 representing 2.16 percent of total loans, compared to a reserve of $186 million at March 31, 1997. Key Performance and Capital Ratios Cash earnings - earnings before the amortization of goodwill and nonqualifying core deposit intangibles - were $65.0 million for the quarter ended March 31, 1998, compared with cash earnings of $58.1 million ($43.0 million excluding mortgage servicing gain) for the comparable prior period. For the second quarter of 1998, 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 1.64 percent, cash return on equity was 25.89 percent, and the efficiency ratio was 57.21 percent. For the second quarter of 1997, cash return on assets was 1.62 percent (1.20 percent excluding mortgage servicing gain), cash return on equity was 28.45 percent (21.06 percent excluding the mortgage servicing gain), and the efficiency ratio was 59.17 percent. At March 31, 1998 the leverage capital ratio was 7.38 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 12.61 percent, both well in excess of minimum federal regulatory requirements. Citizens Financial Group, Inc., is a $16.8 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 274 branch offices and 420 ATMs. It operates as Citizens Bank in Connecticut, 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. . 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 . Please visit our website at www.CitizensBank.com. CONTACT: Citizens Bank Arlene Fortunato, 617/725-5840 |
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