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CITIZENS BANKING CORPORATION REPORTS SECOND-QUARTER EARNINGS

 FLINT, Mich., July 14 /PRNewswire/ -- Citizens Banking Corporation (NASDAQ-NMS: CBCF) earned net income of $6,316,000 for the quarter ended June 30, 1993, compared with $5,081,000 in the second quarter of 1992, an increase of $1,235,000, or 24.3 percent. Fully diluted net income per share was $0.47, an increase of 23.7 percent compared with $0.38 per share for the second quarter of 1992.
 For the first six months of 1993, net income was $12,366,000 or $0.92 per fully diluted share, compared with net income before cumulative effect of change in accounting principle of $10,423,000, or $0.78 per share for the first six months of 1992. Return on average assets for the first six months improved to 1.01 percent from 0.85 percent (before cumulative effect of accounting change) a year ago. A first-quarter 1992, non-recurring charge of $19,553,000 ($12,905,000 net of income taxes) for mandatory adoption of the accrual method of accounting for retiree benefits (recorded as a cumulative effect of change in accounting principle) caused 1992 first-half earnings after adjustment to be a loss of $2,482,000, or $0.19 per fully diluted share.
 Charles R. Weeks, president and chief executive officer, stated that the increase for the six-month period reflects increases in net interest income and noninterest income, and reductions in noninterest expense and provisions for loan losses. Net interest income for the first half was $566,000 higher than last year. A combination of higher levels of loans and leases and lower funding costs provided for an improvement in the net interest margin to 4.77 percent from 4.73 percent. Trust fees were up $348,000 or 8.1 percent from the first half of 1992. Noninterest expense was down $1,186,000, or 2.5 percent from a year ago reflecting Citizens efforts to achieve efficiencies through consolidation of computer processing and other operations. The provision for loan losses was $2,936,000 compared with $3,176,000 in the first half of 1992. The ratio of net loans charged off to average loans was 0.34 percent, well below industry averages and reflecting the quality of Citizens' loan portfolio. Nonperforming assets were 1.01 percent of total assets, down from 1.05 percent a year ago. The allowance for loan losses was 1.21 percent of total loans compared with 1.27 percent a year ago.
 At June 30, 1993, total assets were $2,529,724,000, up 0.9 percent from $2,507,952,000 at June 30, 1992. Total loans and leases increased 5.9 percent to $1,622,117,000 from $1,532,149,000, while deposits increased 0.2 percent to $2,090,710,000 from $2,086,322,000. Shareholders' equity totaled $226,022,000 or $17.29 per share compared with $211,114,000 or $16.13 per share a year ago.
 On March 19, 1993, Citizens announced an agreement to acquire Royal Bank Group, Inc., parent of National Bank of Royal Oak, for $22.5 million in an exchange of common stock. National Bank of Royal Oak, with assets of $187 million, serves the Royal Oak, Mich., market through four offices. The transaction, which is subject to approval by shareholders of Royal Bank Group, Inc. and regulatory authorities, is expected to be completed early in the fourth quarter of 1993.
 Citizens Banking Corporation is the sixth-largest commercial bank holding company headquartered in Michigan and is the parent of Citizens Commercial & Savings Bank of Flint, Second National Bank of Saginaw, Second National Bank of Bay City, State Bank of Standish, Grayling State Bank, Century Life Insurance Company of Michigan, a credit life reinsurance company, and Commercial National Bank of Berwyn, Ill. The corporation's common stock is traded in the over-the-counter market (NASDAQ trading symbol: CBCF).
 CITIZENS BANKING CORPORATION AND SUBSIDIARIES FINANCIAL SUMMARY
 (Dollars in thousands except per share data)
 Six Months Ended Three Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Summary of Operations:
 Interest income $82,196 $92,876 $41,079 $45,559
 Net interest income 50,646 50,080 25,633 24,898
 Provision for loan losses 2,936 3,176 1,475 1,576
 Investment security
 gains (losses) 22 (13) 13 1
 Noninterest income 14,328 13,317 7,394 6,601
 Noninterest expense 46,691 47,877 23,637 23,910
 Income taxes 3,003 1,908 1,612 933
 Income before cumulative effect
 of change in actg prin 12,366 10,432 6,316 5,081
 Net income 12,366 (2,482) 6,316 5,081
 Per Common Share Data (Adj. for May-93, 2-for-1 split)
 Income before cumulative effect of change in actg prin:
 Primary 0.92 0.78 0.47 0.38
 Fully diluted 0.92 0.78 0.47 0.38
 Net income:
 Primary 0.92 (0.19) 0.47 0.38
 Fully diluted 0.92 (0.19) 0.47 0.38
 Dividends 0.365 0.340 0.190 0.175
 Book value 17.29 16.13 --- ---
 Average shares outstanding -
 fully diluted 13,448,111 13,338,180 13,445,404 13,337,231
 Performance Ratios (Annualized):
 Net interest margin (pct.) 4.77 4.73 4.79 4.68
 Return on average assets 1.01 (0.20) 1.02 0.83
 Return on average assets (a) 1.01 0.85 1.02 0.83
 Return on average
 shareholders' equity 11.23 (2.40) 11.32 9.79
 Return on average
 shareholders' equity (a) 11.23 10.10 11.32 9.79
 Selected Balance Sheet Data
 Six Months Ended Pct. 12 Months Ended
 June 30 Change Dec. 31, 1992
 1993 1992
 At Period End:
 Total assets $2,529,724 $2,507,952 0.9 $2,498,834
 Total loans and
 leases 1,622,117 1,532,149 5.9 1,554,440
 Total deposits 2,090,710 2,086,322 0.2 2,086,144
 Total shareholders'
 equity 226,022 211,114 7.1 219,276
 Average Balances:
 Total assets 2,466,571 2,469,121 (0.1) 2,472,245
 Total loans and
 leases 1,581,387 1,528,806 3.4 1,537,171
 Total deposits 2,054,782 2,059,641 (0.2) 2,061,613
 Total shareholders'
 equity 222,036 207,562 7.0 210,193
 Nonperforming Assets:
 Nonaccrual Loans 20,333 19,037 6.8 17,776
 Restructured Loans 208 344 (39.5) 382
 Other Real Estate Owned 4,942 6,860 (28.0) 7,316
 Total 25,483 26,241 (2.9) 25,474
 Statistics:
 Allowance for loan
 losses/loans (pct.) 1.21 1.27 (4.7) 1.25
 Nonperforming assets/
 loans & OREO 1.57 1.71 (8.2) 1.63
 Nonperforming assets/
 assets 1.01 1.05 (3.8) 1.02
 Net loans charged off/average
 loans (Annualized) 0.34 0.45 (24.4) 0.43
 Shareholders' equity/
 assets 8.93 8.42 6.1 8.78
 (a) Presented on a pro forma basis based on income before cumulative effect of change in accounting principle.
 -0- 7/14/93
 /CONTACT: Wayne G. Schaeffer, senior vice president, treasurer, chief financial officer of Citizens Banking Corporation, 313-766-7978/
 (CBCF)


CO: Citizens Banking Corporation ST: Michigan IN: FIN SU: ERN

DD-KE -- DE020 -- 0250 07/14/93 14:25 EDT
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