CITIZENS BANKING CORPORATION TO ACQUIRE ROYAL BANK GROUP, INC.
FLINT, Mich., March 19 /PRNewswire/ -- Edward B. LeFevre, chairman and president of Royal Bank Group, Inc., and Donald E. Johnson Jr., chairman, and Charles R. Weeks, president and chief executive officer of Citizens Banking Corporation (NASDAQ: CBCF), announced jointly an agreement whereby Citizens Banking Corporation would acquire Royal Bank Group, Inc. and its subsidiary, National Bank of Royal Oak. The agreement provides that shareholders of Royal Bank Group will receive Citizens Banking Corporation common stock or cash in exchange for Royal Bank Group, Inc. stock. The total value of the transaction is approximately $22.5 million. Located in Royal Oak, Mich., National Bank of Royal Oak is a $187 million asset community bank that provides retail and commercial banking services to individuals, corporations and other institutions through four banking offices. Two additional offices, one in Royal Oak and one in Southfield, Mich., are scheduled to be opened in 1993. Royal Bank Group, Inc. earned net income of $583,000 for the year 1992, compared with $1,372,000 in 1991. Excluding non-recurring items, Royal Bank Group earned $1,639,000 in 1992. Non-recurring items included a $1 million charge for a fraud-related loss involving a credit card merchant and $600,000 for resolution of soil contamination on a foreclosed property. Weeks stated, "We are pleased to have National Bank of Royal Oak join our family of affiliate banks. Royal Oak will provide an opportunity for Citizens and National Bank of Royal Oak to expand successful community banking strategies in an Oakland County market that has shown significant economic growth. We anticipate that National Bank of Royal Oak will return to normal levels of operating earnings in 1993." LeFevre stated that, "Citizens' affiliate banks have a strong record of actively supporting the communities that they serve. By joining Citizens, National Bank of Royal Oak customers will gain access to several new products and services including a full range of trust and brokerage services." The transaction, subject to approval by shareholders of Royal Bank Group, Inc. and regulatory authorities, is expected to be completed in the third quarter of 1993. Citizens Banking Corporation earned $10,564,000 for the year ended Dec. 31, 1992, compared with $21,075,000 in 1991. Net income per share was $1.62 compared with $3.23 a year ago. Excluding nonrecurring items, Citizens earned $22,317,000 or $3.41 per share in 1992, its 10th consecutive year of increases in net operating income. Without the extraordinary items, 1992 would have been Citizens' fifth consecutive year of a record net income. Net income was reduced by charges, as previously reported, totaling $11,753,000 or $1.79 per share. This resulted from adoption of new mandatory accounting treatment for retiree benefits (SFAS 106) and costs for reducing leasing company operations. None of these charges are expected to have an adverse impact on the results of continuing operations in future years. At Dec. 31, 1992, Citizens had total assets of $2,498,834,000. 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. -0- 3/19/93 /CONTACT: Wayne G. Schaeffer, senior vice president, treasurer and chief financial officer, Citizens Banking Corporation, 313-766-7978/ (CBCF)
CO: Citizens Banking Corporation; Royal Bank Group, Inc. ST: Michigan IN: FIN SU: TNM
KE-JS -- DE019 -- 7990 03/19/93 15:36 EST
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|Date:||Mar 19, 1993|
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