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CITIZENS BANKING CORPORATION REPORTS THIRD-QUARTER EARNINGS

 FLINT, Mich., Oct. 13 /PRNewswire/ -- Citizens Banking Corporation (NASDAQ-NMS: CBCF) earned net income of $6,219,000 for the quarter ended Sept. 30, 1993, compared with $5,209,000 in the third quarter of 1992, an increase of $1,010,000 or 19.4 percent. Fully diluted net income per share was $0.46, an increase of 17.9 percent compared with $0.39 per share for the third quarter of 1992.
 For the first nine months of 1993, net income was $18,585,000 or $1.37 per fully diluted share compared with net income before cumulative effect of change in accounting principle of $15,632,000 or $1.17 per share for the first nine months of 1992. Return on average assets for the first nine months improved to 1.00 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 earnings for the first nine months of 1992 to be $2,727,000 or $0.20 per fully diluted share after adjustment.
 Charles R. Weeks, president and chief executive officer, stated that the increase for the nine-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 nine months was $1,357,000 higher than last year. A combination of higher levels of loans and leases and lower funding costs resulted in an improvement in net interest margin to 4.74 percent from 4.70 percent. Trust fees were up $419,000 or 6.5 percent from the first nine months of 1992. Noninterest expense was down $1,210,000 or 1.7 percent from a year ago primarily resulting from efficiencies achieved through consolidation of computer processing and other operations. The provision for loan losses was $4,302,000 compared with $4,744,000 in the first nine months of 1992. The ratio of net loans charged off to average loans was 0.27 percent well below industry averages and indicative of the quality of Citizens' loan portfolio. Nonperforming assets were 0.98 percent of total assets, down from 1.10 percent a year ago. The allowance for loan losses was 1.24 percent of total loans compared with 1.28 percent a year ago.
 At Sept. 30, 1993, total assets were $2,501,437,000 up 1.4 percent from $2,467,150,000 at Sept. 30, 1992. Total loans and leases increased 7.1 percent to $1,657,112,000 from $1,547,342,000 while deposits increased 0.9 percent to $2,059,981,000 from $2,041,323,000. Shareholders' equity totaled $230,029,000 or $17.56 per share compared with $213,317,000 or $16.34 per share a year ago.
 On Oct. 1, 1993, Citizens completed a merger with Royal Bank Group, Inc., parent of National Bank of Royal Oak. This bank adds $194 million in assets and six banking offices in Oakland County, bringing Citizens offices in that market to a total of eight. The transaction was accounted for as a purchase and thus had no impact on CBC's financial reporting for periods prior to that date.
 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; National Bank of Royal Oak; 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)
 Nine Months Ended Three Months Ended
 Sept. 30 Sept. 30
 1993 1992 1993 1992
 Summary of Operations:
 Interest income $122,948 $136,347 $40,752 $43,471
 Net interest income 76,235 74,878 25,589 24,798
 Provision for loan losses 4,302 4,744 1,366 1,568
 Investment security
 gains (losses) 443 (13) 421 ---
 Noninterest income 21,431 21,199 7,103 6,882
 Noninterest expense 70,672 71,882 23,981 24,005
 Income taxes 4,550 2,806 1,547 898
 Income before cumulative effect
 of change in actg prin 18,585 15,632 6,219 5,209
 Net income 18,585 2,727 6,219 5,209
 Per Common Share Data (Adj. for May-93, 2-for-1 split)
 Income before cumulative effect of change in actg prin:
 Primary $1.38 $1.18 $0.46 $0.39
 Fully diluted 1.37 1.17 0.46 0.39
 Net income:
 Primary 1.38 0.21 0.46 0.39
 Fully diluted 1.37 0.20 0.46 0.39
 Dividends 0.555 0.515 0.190 0.175
 Book value 17.56 16.34 --- ---
 Shares outstanding - end of
 period (000) 13,102 13,053 --- ---
 Performance Ratios (Annualized):
 Net interest margin (pct.) 4.74 4.70 4.69 4.64
 Return on average assets 1.00 0.15 0.99 0.84
 Return on average assets (A) 1.00 0.85 0.99 0.84
 Return on average
 shareholders' equity 11.10 1.75 10.86 9.88
 Return on average
 shareholders' equity (A) 11.10 10.02 10.86 9.88
 Selected Balance Sheet Data
 Nine Months Ended Pct. 12 Months Ended
 Sept. 30 Change Dec. 31, 1992
 1993 1992
 At Period End:
 Total assets $2,501,437 $2,467,150 1.4 $2,498,834
 Total loans and
 leases 1,657,112 1,547,342 7.1 1,554,440
 Total deposits 2,059,981 2,041,323 0.9 2,086,144
 Total shareholders'
 equity 230,029 213,317 7.8 219,276
 Average Balances:
 Total assets $2,478,674 $2,470,480 0.3 $2,472,245
 Total loans and
 leases 1,599,007 1,531,415 4.4 1,537,171
 Total deposits 2,061,383 2,058,599 0.1 2,061,613
 Total shareholders'
 equity 223,782 208,309 7.4 210,193
 Nonperforming Assets:
 Nonaccrual Loans $20,097 $20,658 (2.7) 17,776
 Restructured Loans 172 371 (53.6) 382
 Other Real Estate Owned 4,347 6,228 (30.2) 7,316
 Total 24,616 27,257 (9.7) 25,474
 Statistics:
 Allowance for loan
 losses/loans (pct.) 1.23 1.28 (3.9) 1.25
 Nonperforming assets/
 loans & OREO 1.48 1.75 (15.4) 1.63
 Nonperforming assets/
 assets 0.98 1.10 (10.9) 1.02
 Net loans charged off/average
 loans (Annualized) 0.27 0.41 (34.1) 0.43
 Shareholders' equity/
 assets 9.20 8.65 6.4 8.78
 Selected Quarterly Information
 1993
 Third Second First
 Summary of Operations (000)
 Interest income $40,752 $41,079 $41,117
 Net interest income 25,589 25,633 25,013
 Provision for loan losses 1,366 1,475 1,461
 Investment security gains (losses) 421 13 9
 Noninterest income 7,103 7,394 6,934
 Noninterest expense 23,981 23,637 23,054
 Income taxes 1,547 1,612 1,391
 Income before cumulative
 effect of change in
 accounting principle 6,219 6,316 6,050
 Net income (loss) 6,219 6,316 6,050
 Per Share of Common Stock
 (Adjusted for May-93, 2-for-1 split)
 Income before cumulative
 effect of change in accounting principle:
 Primary $0.46 $0.47 $0.45
 Fully diluted 0.46 0.47 0.45
 Net income:
 Primary 0.46 0.47 0.45
 Fully diluted 0.46 0.47 0.45
 Cash dividends declared 0.190 0.190 0.175
 Book value 17.56 17.29 17.01
 Market value:
 High 28.50 22.25 20.50
 Low 21.00 20.00 18.50
 Closing price 25.00 21.75 20.00
 Shares outstanding -
 end of period (000) 13,102 13,072 13,085
 Performance Ratios (Annualized)
 Net interest margin (pct.) 4.69 4.80 4.77
 Return on average assets 0.99 1.02 1.00
 Return on average assets (A) 0.99 1.02 1.00
 Return on average
 shareholders' equity 10.86 11.32 11.14
 Return on average
 shareholders' equity (A) 10.86 11.32 11.14
 At Period End (millions)
 Total assets $2,501 $2,530 $2,439
 Total loans and leases 1,657 1,622 1,577
 Total deposits 2,060 2,091 2,025
 Total shareholders' equity 230 226 223
 Average Balances (millions)
 Total assets $2,502 $2,478 $2,455
 Total loans and leases 1,634 1,604 1,558
 Total deposits 2,074 2,066 2,043
 Total shareholders' equity 227 224 220
 Nonperforming Assets (000)
 Nonaccrual Loans $20,097 $20,333 $19,597
 Restructured Loans 172 208 175
 Other Real Estate Owned 4,347 4,942 6,273
 Total 24,616 25,483 26,045
 Statistics
 Allowance for loan losses/
 loans (pct.) 1.23 1.21 1.26
 Nonperforming assets/loans
 & OREO 1.48 1.57 1.64
 Nonperforming assets/assets 0.98 1.01 1.07
 Net loans chrgd off/avg loans
 (Annualized) 0.15 0.41 0.26
 Shareholders' equity/assets 9.20 8.93 9.13
 1992
 Fourth Third Second First
 Summary of Operations (000)
 Interest income $42,429 $43,471 $45,559 $47,317
 Net interest income 25,097 24,798 24,898 25,182
 Provision for loan losses 1,507 1,568 1,576 1,600
 Investment security gains (losses) (4) --- 1 (14)
 Noninterest income 6,883 6,882 6,601 6,716
 Noninterest expense 20,673 24,005 23,910 23,967
 Income taxes 1,959 898 933 975
 Income before cumulative
 effect of change in
 accounting principle 7,837 5,209 5,081 5,342
 Net income (loss) 7,837 5,209 5,081 (7,563)
 Per Share of Common Stock
 (Adjusted for May-93, 2-for-1 split)
 Income before cumulative
 effect of accounting principle:
 Primary $0.59 $0.39 $0.38 $0.41
 Fully diluted 0.59 0.39 0.38 0.40
 Net income:
 Primary 0.59 0.39 0.38 (0.57)
 Fully diluted 0.59 0.39 0.38 (0.57)
 Cash dividends declared 0.175 0.175 0.175 0.165
 Book value 16.73 16.34 16.13 15.93
 Market value:
 High 19.25 18.25 18.25 16.38
 Low 16.50 16.88 16.19 13.63
 Closing price 19.25 17.38 17.75 16.38
 Shares outstanding -
 end of period (000) 13,103 13,053 13,087 13,083
 Performance Ratios (Annualized)
 Net interest margin (pct.) 4.73 4.64 4.68 4.78
 Return on average assets 1.26 0.84 0.83 (1.23)
 Return on average assets (A) 1.26 0.84 0.83 0.87
 Return on average
 shareholders' equity 14.45 9.88 9.79 (14.73)
 Return on average
 shareholders' equity (A) 14.45 9.88 9.79 10.41
 At Period End (millions)
 Total assets $2,499 $2,467 $2,508 $2,459
 Total loans and leases 1,554 1,547 1,532 1,525
 Total deposits 2,086 2,041 2,086 2,055
 Total shareholders' equity 219 213 211 208
 Average Balances (millions)
 Total assets $2,478 $2,473 $2,474 $2,465
 Total loans and leases 1,554 1,537 1,525 1,532
 Total deposits 2,071 2,057 2,066 2,053
 Total shareholders' equity 216 210 209 206
 Nonperforming Assets (000)
 Nonaccrual Loans $17,776 $20,658 $19,037 $21,058
 Restructured Loans 382 371 344 519
 Other Real Estate Owned 7,316 6,228 6,860 8,834
 Total 25,474 27,257 26,241 30,411
 Statistics
 Allowance for loan losses/
 loans (pct.) 1.25 1.28 1.27 1.28
 Nonperforming assets/loans
 & OREO 1.63 1.75 1.71 1.98
 Nonperforming assets/assets 1.02 1.10 1.05 1.24
 Net loans chrgd off/avg loans
 (Annualized) 0.39 0.32 0.42 0.48
 Shareholders' equity/assets 8.78 8.65 8.42 8.48
 (A) Presented on a pro forma basis based on income before cumulative effect of change in accounting principle.
 -0- 10/13/93
 /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

JG -- DE042 -- 1828 10/13/93 16:07 EDT
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