Exhibit 99.1
For Immediate Release | CONTACT: | Charles D. Christy | ||
| Chief Financial Officer | ||||
| (810) 237-4200 | ||||
| Charlie.Christy@cbcf-net.com | ||||
| CONTACT: | Kathleen Miller | |||
| Investor Relations | ||||
| (810) 257-2506 | ||||
| Kathleen.Miller@cbcf-net.com | ||||
| TRADED: | NASDAQ | |||
| SYMBOL: | CBCF |
July 21, 2005
CITIZENS BANKING CORPORATION
ANNOUNCES SECOND QUARTER 2005 RESULTS
ANNOUNCES SECOND QUARTER 2005 RESULTS
FLINT, MICHIGAN —Citizens Banking Corporation announced net income of $20.6 million for the three months ended June 30, 2005. This represents an increase of $0.5 million or 2.4% over the first quarter of 2005 net income of $20.1 million and an increase of $1.8 million or 9.8% over the second quarter of 2004 net income of $18.7 million. Diluted net income per share was $0.47, compared with $0.46 for the first quarter of 2005 and $0.43 for the same quarter of last year. Annualized returns on average assets and average equity during the second quarter of 2005 were 1.06% and 12.62%, respectively, compared with 1.05% and 12.54% for the first quarter of 2005 and 0.97% and 12.00% for the second quarter of 2004.
Net income for the first six months of 2005 totaled $40.6 million or $0.93 per diluted share, which represents an increase in net income of $4.5 million or 12.4% and $0.10 per diluted share over the same period of 2004.
“Our strong earnings for the second quarter of 2005 were driven by quality loan growth in all categories and our lowest quarter of net charge-offs in five years,” stated William R. Hartman, chairman, president and CEO. “The growth in loans helped to partially offset the increase in margin pressure as a result of rising rates, the flattened yield curve, and industry challenges in deposit generation” continued Hartman.
Key Highlights in the Quarter:
| • | On an average basis, commercial and commercial real estate loans grew by $53.4 million or 1.8% from the first quarter of 2005 and $59.4 million or 2.0% from the second quarter of 2004 due to continued strong growth from our Southeast Michigan market, focus on the sales management process and several new relationships in key Michigan and Wisconsin markets. | |
| • | The Consumer Banking line of business launched “Take the Challenge”, a year-long consultative selling initiative. Some of the second quarter highlights from this initiative include: |
| o | A home equity campaign in April that significantly contributed to the $16.9 million in portfolio growth during the second quarter. | ||
| o | An Investment Center sales initiative in May that helped increase brokerage revenue by $0.7 million or 42.8% over the first quarter. |
| • | Net charge-offs declined to $2.4 million or 0.17% of average portfolio loans in the second quarter of 2005 compared with $4.2 million or 0.32% of average portfolio loans in the first quarter of 2005 and $4.4 million or 0.34% of average portfolio loans in the second quarter of 2004. Due to the continued reduction of risk in the commercial loan portfolio, the second quarter of 2005 provision for loan losses of $1.4 million was $1.6 million or 53.5% less than the first quarter of 2005 and $3.1 million or 69.0% less than the second quarter of 2004. | |
| • | Nonperforming assets increased $5.3 million or 12.1% from the first quarter to $49.0 million at June 30, 2005. A single commercial credit accounted for $3.4 million of the increase. The June 30, 2005 level represented a decrease of $9.2 million or 15.8% compared with June 30, 2004. |
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Balance Sheet
Citizens’ total assets at June 30, 2005 were $7.8 billion, an increase of $49.2 million or 0.6% compared with March 31, 2005 and an increase of $78.0 million or 1.0% from June 30, 2004. These increases were due to growth in total portfolio loans which were partially offset by declines in the investment portfolio. Portfolio loans increased $93.4 million or 1.7% compared with March 31, 2005 and $222.5 million or 4.2% compared with June 30, 2004 as growth in both consumer and commercial loans continued to more than offset the $78.5 million reduction in loans as a result of the third quarter 2004 Illinois Bank sale.
Citizens’ total assets at June 30, 2005 were $7.8 billion, an increase of $49.2 million or 0.6% compared with March 31, 2005 and an increase of $78.0 million or 1.0% from June 30, 2004. These increases were due to growth in total portfolio loans which were partially offset by declines in the investment portfolio. Portfolio loans increased $93.4 million or 1.7% compared with March 31, 2005 and $222.5 million or 4.2% compared with June 30, 2004 as growth in both consumer and commercial loans continued to more than offset the $78.5 million reduction in loans as a result of the third quarter 2004 Illinois Bank sale.
On a period-end basis, commercial and commercial real estate loans increased $28.7 million or 1.0% at June 30, 2005 compared with March 31, 2005 and increased $81.8 million or 2.8% from June 30, 2004. The increases were a result of continued strong growth in the Southeast Michigan market, increased focus on the sales management process and several new relationships in key Michigan and Wisconsin markets, which were partially offset by a continued reduction of exposure on credits not meeting Citizens’ risk parameters.
Residential mortgage loans were $524.7 million at June 30, 2005, an increase of $28.8 million or 5.8% compared with March 31, 2005 and an increase of $43.6 million or 9.1% from June 30, 2004. The increases in the mortgage portfolio were the result of enhanced, more competitive adjustable-rate mortgage (ARM) product offerings, which are desirable for the bank to hold in the portfolio. Citizens continues to sell most new fixed rate production into the secondary market while retaining most new ARM production.
Total consumer loans, which are comprised of direct and indirect loans, increased $35.9 million or 1.8% at June 30, 2005 compared with March 31, 2005 and increased $97.1 million or 5.0% over June 30, 2004. The consultative sales process, supported by the “Take the Challenge” campaign, has helped offset weak consumer loan demand in Citizens’ market areas. During the three month period ended June 30, 2005, direct consumer loans increased $13.4 million or 1.1% and indirect loans increased $22.5 million or 2.7%. Growth in indirect consumer loans was due to seasonality in marine and recreational vehicle volume as well as the bank’s continued emphasis on strong relationships with the dealer network.
Total deposits were $5.2 billion at June 30, 2005, a decrease of $88.8 million or 1.7% compared with March 31, 2005 and a decrease of $160.7 million or 3.0% from June 30, 2004. The decline from the first quarter of 2005 reflects the migration of low transaction interest-bearing checking and promotional rate savings products to alternate investment opportunities in the market. The change from June 30, 2004 was primarily a result of the third quarter 2004 Illinois Bank sale, which included $155.3 million in deposits on the sale date. Core deposits, which exclude all time deposits, totaled $3.4 billion at June 30, 2005, which represents a $165.6 million or 4.6% decrease from March 31, 2005 and a decrease of $212.1 million or 5.9% from June 30, 2004. The decrease in core deposits from the end of the first quarter of 2005 was largely the result of clients migrating their funds into time deposits with higher yields and to promotional rate products within the market. Time deposits totaled $1.8 billion at June 30, 2005, an increase of $76.8 million or 4.5% compared with March 31, 2005 and an increase of $51.4 million or 3.0% from June 30, 2004.
Other interest-bearing liabilities, which include federal funds purchased and securities sold under agreements to repurchase, other short-term borrowings, and long-term debt, were $1.9 billion at June 30, 2005, an increase of $123.0 million or 7.0% compared with March 31, 2005 and an increase of $205.7 million or 12.2% from June 30, 2004. These increases were the result of the aforementioned loan and deposit changes.
Credit Quality
Nonperforming assets totaled $49.0 million at June 30, 2005, an increase of $5.3 million or 12.1% compared with March 31, 2005 and a decrease of $9.2 million or 15.8% compared with June 30, 2004. Nonperforming assets at June 30, 2005 represented 0.89% of total loans plus other repossessed assets acquired compared with 0.80% at March 31, 2005 and 1.10% at June 30, 2004. Loans added to the commercial nonperforming loan category increased to $21.1 million in the second quarter of 2005 compared with $11.2 million in the first quarter of 2005 and $17.3 million in the second quarter of 2004 while loans removed from that category totaled $17.5 million for the second quarter of 2005 compared with $15.4 million in the first quarter of 2005 and $23.2 million in the second quarter of 2004.
Net charge-offs decreased to $2.4 million or 0.17% of average portfolio loans in the second quarter of 2005 compared with $4.2 million or 0.32% of average portfolio loans in the first quarter of 2005 and $4.4 million or 0.34% of average portfolio loans in the second quarter of 2004. The 44.0% decrease in net charge-offs from the first quarter of 2005 was due to continued improvement in the overall risk of the commercial loan portfolio, as well as a
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reduction in the inventory of repossessed assets due to seasonal fluctuations. The allowance for loan losses totaled $120.0 million or 2.17% of portfolio loans at June 30, 2005, a decrease of $1.0 million and $3.8 million from March 31, 2005 and June 30, 2004, respectively.
The provision for loan losses decreased to $1.4 million in the second quarter of 2005 compared with $3.0 million in the first quarter of 2005 and $4.5 million in the second quarter of 2004. The reduction in the provision for loan losses reflects a decrease in the level of net charge-offs as well as a continued improvement in the overall risk of the portfolio.
Based on seasonal business trends, anticipated improvement in a few specific nonperforming loans and the overall risk in the loan portfolio, Citizens anticipates net charge-offs and provision expense in the third quarter to be consistent with or slightly higher than the second quarter of 2005.
Net Interest Margin and Net Interest Income
Net interest margin was 3.92% for the second quarter of 2005 compared with 3.96% for the first quarter of 2005 and 3.98% for the second quarter of 2004. The decrease in net interest margin compared with the first quarter of 2005 resulted from mix shifts within the deposit portfolio from lower cost savings and transaction products to time deposits and continued pressure on loan spreads. The decrease in net interest margin compared with the second quarter of 2004 was due to growth in higher yielding deposit products and pricing compression in commercial loans. For the six months ended June 30, 2005, net interest margin declined to 3.94% compared with 3.99% for the same period of 2004 as a result of the aforementioned changes.
Net interest margin was 3.92% for the second quarter of 2005 compared with 3.96% for the first quarter of 2005 and 3.98% for the second quarter of 2004. The decrease in net interest margin compared with the first quarter of 2005 resulted from mix shifts within the deposit portfolio from lower cost savings and transaction products to time deposits and continued pressure on loan spreads. The decrease in net interest margin compared with the second quarter of 2004 was due to growth in higher yielding deposit products and pricing compression in commercial loans. For the six months ended June 30, 2005, net interest margin declined to 3.94% compared with 3.99% for the same period of 2004 as a result of the aforementioned changes.
Net interest income was $68.8 million in the second quarter of 2005 compared with $68.2 million in the first quarter of 2005 and $69.2 million in the second quarter of 2004. The increase in net interest income compared with the first quarter of 2005 was driven by growth in average earning assets and there being more days in the quarter, partially offset by a lower net interest margin. The decrease compared with the second quarter of 2004 resulted from a lower net interest margin, which was partially offset by an increase in average earning assets of $49.9 million. The earning asset increase was driven by growth in consumer and commercial loans, partially offset by declines in the securities portfolio.
Net interest income for the first six months of 2005 totaled $137.0 million, which is a $0.5 million decrease from the $137.5 million in the same period of 2004. The decrease was driven by the lower net interest margin partially offset by a $76.0 million increase in earning assets.
In the third quarter of 2005, Citizens anticipates net interest income will be slightly lower than the second quarter of 2005 as a result of anticipated margin compression and slightly lower investment portfolio balances.
Noninterest Income
Noninterest income for the second quarter of 2005 was $23.1 million, an increase of $0.7 million or 3.1% from the first quarter of 2005 and an increase of $0.3 million or 1.5% over the second quarter of 2004. Compared to the prior quarter, increases in deposit service charges, trust fees, and brokerage and investment fees were partially offset by decreases in mortgage and other loan income and other income. For the first six months of 2005, noninterest income totaled $45.6 million, which is an increase of $0.3 million or 0.6% over the $45.3 million in same period of 2004. The three-month and six-month increases over the prior year were largely due to the $2.1 million loss on sale of securities which occurred during the second quarter of 2004.
Noninterest income for the second quarter of 2005 was $23.1 million, an increase of $0.7 million or 3.1% from the first quarter of 2005 and an increase of $0.3 million or 1.5% over the second quarter of 2004. Compared to the prior quarter, increases in deposit service charges, trust fees, and brokerage and investment fees were partially offset by decreases in mortgage and other loan income and other income. For the first six months of 2005, noninterest income totaled $45.6 million, which is an increase of $0.3 million or 0.6% over the $45.3 million in same period of 2004. The three-month and six-month increases over the prior year were largely due to the $2.1 million loss on sale of securities which occurred during the second quarter of 2004.
Deposit service charges for the second quarter of 2005 increased $0.5 million or 6.4% to $8.8 million compared with the first quarter of 2005 and decreased $0.2 million or 2.7% from the second quarter of 2004. The increase from the first quarter of 2005 was the result of an increase in transaction activity, improved fee waiver management, and the higher number of processing days. The decrease from the second quarter of 2004 was due to the rising rate environment, which resulted in higher customer earnings credits against commercial deposit service charges based on commercial deposit balances, partially offset by changes in the penalty fee structure. For the first six months of 2005, deposit service charges totaled $17.1 million, essentially unchanged from the same period of the prior year.
Trust fees for the second quarter of 2005 increased $0.1 million or 2.1% to $4.5 million compared with the first quarter of 2005 and were essentially unchanged from the second quarter of 2004. For the first six months of 2005, trust fees totaled $8.9 million, essentially unchanged from the same period of 2004. Total trust assets under administration decreased $25.1 million to $2.6 billion at June 30, 2005 compared with March 31, 2005 and decreased $46.6 million compared with June 30, 2004. The decline in trust assets from March 31, 2005 was due to
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the reduction of an institutional relationship in the second quarter of 2005 partially offset by stronger financial markets at June 30, 2005. The decline in trust assets from June 30, 2004 was due to the reduction of two institutional relationships during the periods presented, and the exit of custody assets related to two relationships in the first quarter of 2005. The effect of these exits was partially offset by stronger financial markets at June 30, 2005 and continued growth in the bank’s core segments of personal trust and employee benefit plans.
Mortgage and other loan income for the second quarter of 2005 decreased $0.3 million or 12.1% to $2.1 million compared with the first quarter of 2005 and decreased $1.0 million or 31.9% from the second quarter of 2004. The decreases reflect stronger ARM production, which resulted in more mortgages being held in the portfolio rather than being sold in the secondary market. For the first six months of 2005, mortgage and other loan income totaled $4.4 million, a decrease of $0.9 million or 16.4% from the same period of the prior year. The decline was a result of retaining more mortgage production.
Brokerage and investment fees for the second quarter of 2005 increased $0.7 million or 42.9% to $2.3 million over the first quarter of 2005 and decreased by $0.4 million or 13.9% compared with the second quarter of 2004. The increase from the first quarter was due to an improvement in consultative selling efforts and a successful sales campaign coordinated between the Wealth Management and Consumer Banking lines of business. The decline from the second quarter of 2004 was due to lower annuity sales primarily related to a bonus annuity rate offered during the sales campaign in the second quarter of 2004. For the first six months of 2005, brokerage and investment fees totaled $3.9 million, a decrease of $0.6 million or 12.4% from the same period of 2004. The decline was the result of lower annuity sales in January and February 2005 due to competitive pressures from other interest-bearing products and the aforementioned bonus annuity rate offered during the second quarter of 2004.
For the second quarter of 2005, all other noninterest income categories, which include bankcard fees, other income, and investment securities gains (losses), decreased $0.3 million or 5.9% to $5.5 million over the first quarter of 2005 and increased $2.0 million or 55.8% over the second quarter of 2004. The decrease from the first quarter of 2005 was the result of a performance-related penalty of $0.3 million from a third party vendor and a preference payment of $0.3 million on Citizens’ membership interest in the PULSE ATM Network, which were both received in the first quarter of 2005. The increase from the second quarter of 2004 was primarily the result of the $2.1 million loss on the sale of securities which occurred during the second quarter of 2004. For the first six months of 2005, all other noninterest income categories totaled $11.3 million, an increase of $1.6 million or 17.0% from the same period of 2004. The increase was largely the result of the aforementioned second quarter 2004 loss on sale of securities and a first quarter 2005 bank-owned life insurance policy payout which were partially offset by gains recognized upon the sale of former branch and other bank premises in the first quarter 2004.
Citizens anticipates total noninterest income in the third quarter will be slightly lower than the second quarter of 2005 due to lower sold mortgage activity and fewer bank-owned life insurance payouts.
Noninterest Expense
Noninterest expense for the second quarter of 2005 was $61.0 million, an increase of $0.4 million or 0.6% compared to the first quarter of 2005 and a decrease of $1.2 million or 1.9% from the second quarter of 2004. Compared to the first quarter of 2005, decreases in salaries and employee benefits, professional services, stationery and supplies and other expenses were more than offset by increases in occupancy, equipment, data processing, and other loan expenses. The variance from the second quarter of 2004 was a result of decreases in salaries and benefits, professional services, advertising, postage and delivery, other loan expenses, stationery and supplies and other expense, partially offset by increases in occupancy, equipment and data processing costs. For the first six months of 2005, noninterest expenses totaled $121.6 million, a decrease of $1.1 million or 0.9% from the $122.7 million for the same period of 2004. This decrease reflects declines in professional services, advertising and public relations, other loan expense, and other expenses, partially offset by increases in salaries and employee benefits, occupancy, and equipment.
Noninterest expense for the second quarter of 2005 was $61.0 million, an increase of $0.4 million or 0.6% compared to the first quarter of 2005 and a decrease of $1.2 million or 1.9% from the second quarter of 2004. Compared to the first quarter of 2005, decreases in salaries and employee benefits, professional services, stationery and supplies and other expenses were more than offset by increases in occupancy, equipment, data processing, and other loan expenses. The variance from the second quarter of 2004 was a result of decreases in salaries and benefits, professional services, advertising, postage and delivery, other loan expenses, stationery and supplies and other expense, partially offset by increases in occupancy, equipment and data processing costs. For the first six months of 2005, noninterest expenses totaled $121.6 million, a decrease of $1.1 million or 0.9% from the $122.7 million for the same period of 2004. This decrease reflects declines in professional services, advertising and public relations, other loan expense, and other expenses, partially offset by increases in salaries and employee benefits, occupancy, and equipment.
Salaries and employee benefits for the second quarter of 2005 decreased $1.0 million or 3.0% to $32.4 million compared with the first quarter of 2005 and decreased $0.8 million or 2.5% compared with the second quarter of 2004. Salary costs declined in the second quarter of 2005, despite recognizing $0.4 million in severance, as a result of reduced headcount, lower incentive compensation expense and lower payroll tax expense during the quarter. Citizens had 2,150 full time equivalent employees at June 30, 2005, down from 2,175 at March 31, 2005 and 2,325 at June 30, 2004. For the first six months of 2005, salaries and employee benefits totaled $65.7 million, which represents an increase of $0.6 million or 0.9% from the $65.1 million for the same period of 2004. The increase was largely a result of higher employee benefit costs related to pension and insurance expenses.
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Occupancy costs for the second quarter of 2005 increased $0.1 million or 2.3% to $5.7 million in the second quarter of 2005 compared to the first quarter of 2005 and increased $0.8 million or 15.5% over the second quarter of 2004. For the first six months of 2005, occupancy costs totaled $11.2 million, which represents a $1.0 million increase or 9.6% over the $10.3 million for the same period of 2004. These increases were largely the result of rent related to the opening of new branches and regional hubs opened in Southeast Michigan throughout 2004, depreciation associated with new branch construction in Southeast Michigan and the Michigan re-branding project.
Professional services for the second quarter of 2005 decreased $0.5 million or 11.3% to $3.7 million compared with the first quarter of 2005 and decreased $0.6 million or 13.0% compared with the second quarter of 2004. Expenses related to the evaluation, documentation, and testing of internal controls and issuance of the related reports to comply with Sarbanes-Oxley Section 404 were significantly lower in the second quarter compared to the first quarter of 2005. In addition, technology and network support costs decreased compared to the second quarter of 2004. For the first six months of 2005, professional services totaled $7.9 million, a decrease of $0.3 million or 3.5% over the $8.2 million for the same period of 2004. The decrease was largely a result of lower technology and network support costs resulting from a change in service provider.
Equipment costs for the second quarter of 2005 increased $1.6 million or 49.6% to $4.9 million compared to the first quarter of 2005 and increased $1.3 million or 34.6% compared with the second quarter of 2004. For the first six months of 2005, equipment costs totaled $8.2 million, an increase of $0.9 million or 12.7% over the same period of 2004. These increases were mainly due to $1.5 million in asset write-downs as a result of aligning the service life for these items with the current capitalization policy.
Advertising and public relations expense for the second quarter of 2005 was relatively flat at $1.8 million compared to the first quarter of 2005 and decreased $0.2 million or 10.7% compared with the second quarter of 2004. The decrease was due to reduced advertising and marketing expenses for the Southeast Michigan initiative and the Wealth Management line of business. For the first six months of 2005, advertising and public relations totaled $3.6 million, a decrease of $0.6 million or 14.8% from the $4.2 million for the same period of 2004. The decrease was the result of lower corporate advertising expenses and the timing of promotion campaigns.
Other loan expenses for the second quarter of 2005 increased $0.5 million to $0.9 million compared to the first quarter of 2005 and decreased $0.8 million or 46.4% compared with the second quarter of 2004. The increase from the first quarter was the result of an increase in provisioning to fund the reserve for unused commitments compared to a reduction of the provision in the first quarter. The decrease from the same period of last year was largely due to lower consumer loan processing expenses resulting from process improvements and lower loan volumes. For the first six months of 2005, other loan expenses totaled $1.2 million, which represents a decrease of $1.5 million or 54.7% from the $2.8 million for the same period of 2004. The decrease was the result of lower consumer loan volumes and process improvements implemented in the consumer loan processing department during the third quarter of 2004.
For the second quarter of 2005, all other noninterest expense categories, which include data processing services, postage and delivery, telephone, stationery and supplies, intangible asset amortization, and other expense, decreased $0.5 million or 3.9% to $11.6 million from the first quarter of 2005 and decreased $0.8 million or 6.6% from the second quarter of 2004. The decreases were largely the result of a focused effort to reduce supply costs across the corporation through increased awareness and the utilization of a recently implemented online procurement system. For the first six months of 2005, all other noninterest expense categories decreased $1.2 million or 4.7% to $23.7 million compared to the same period of 2004. The decrease was the result of reduced supplies and travel expenses, and non-credit related losses that were incurred in the first six months of 2004.
Citizens anticipates that noninterest expenses for the third quarter will be lower than the second quarter of 2005 due to anticipated reductions in benefits, incentives, severance, equipment depreciation, and other expenses.
Income Tax Provision
Income tax provision for the second quarter of 2005 was $9.0 million, an increase of $2.0 million or 28.0% compared to the first quarter of 2005 and an increase of $2.3 million or 34.8% over the second quarter of 2004. For the first six months of 2005, income tax provision totaled $16.0 million, an increase of $3.5 million or 27.7% over the same period of 2004. The increases were attributable to higher pre-tax net income and a $1.3 million ($0.8 million after-tax) reduction in the deferred Wisconsin state income tax asset as a result of the April merger of the Michigan and Wisconsin bank charters
Income tax provision for the second quarter of 2005 was $9.0 million, an increase of $2.0 million or 28.0% compared to the first quarter of 2005 and an increase of $2.3 million or 34.8% over the second quarter of 2004. For the first six months of 2005, income tax provision totaled $16.0 million, an increase of $3.5 million or 27.7% over the same period of 2004. The increases were attributable to higher pre-tax net income and a $1.3 million ($0.8 million after-tax) reduction in the deferred Wisconsin state income tax asset as a result of the April merger of the Michigan and Wisconsin bank charters
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The effective tax rate was 30.38% for the second quarter of 2005 compared to 25.89% for the first quarter of 2005 and 26.23% for the second quarter of 2004. On a year-to-date basis, the effective tax rate was 28.23% and 25.71% for 2005 and 2004, respectively. The increases were a result of the Wisconsin deferred tax asset release.
Citizens anticipates income tax provision for the third quarter will be lower than the second quarter of 2005 but higher than the first quarter of 2005 due to the apportionment calculation now used for the consolidated Michigan and Wisconsin bank.
Other News
Citizens Transitions to a New Commercial Distribution and Delivery Model
Citizens began the market by market transition to its new commercial distribution and delivery model at the end of the first quarter of 2005, and expects to have it fully implemented during the fourth quarter of 2005. The model is comprised of three elements which provide market delivery, professional credit, and commercial client services. It focuses on better customer service with faster turnaround times through client/market segmentation and aligning the right resources with the right opportunities.
Citizens Transitions to a New Commercial Distribution and Delivery Model
Citizens began the market by market transition to its new commercial distribution and delivery model at the end of the first quarter of 2005, and expects to have it fully implemented during the fourth quarter of 2005. The model is comprised of three elements which provide market delivery, professional credit, and commercial client services. It focuses on better customer service with faster turnaround times through client/market segmentation and aligning the right resources with the right opportunities.
Wisconsin Re-branding Completed
On April 25, 2005 all F&M Bank-Wisconsin locations were re-branded as Citizens Bank. This initiative included new Citizens Bank signage at all of the company’s Wisconsin locations and the replacement of the F&M Bank trade name and brand image with Citizens Bank on all brochures and materials. This change has been positively received by clients and staff alike. The change creates a more efficient banking franchise by allowing the combined banks to operate as a single entity. It eliminates the need for separate regulatory reporting, accounting and financial tracking by the two banks and allows the company to make more efficient use of its capital.
On April 25, 2005 all F&M Bank-Wisconsin locations were re-branded as Citizens Bank. This initiative included new Citizens Bank signage at all of the company’s Wisconsin locations and the replacement of the F&M Bank trade name and brand image with Citizens Bank on all brochures and materials. This change has been positively received by clients and staff alike. The change creates a more efficient banking franchise by allowing the combined banks to operate as a single entity. It eliminates the need for separate regulatory reporting, accounting and financial tracking by the two banks and allows the company to make more efficient use of its capital.
Citizens Names Three New Executives
On May 20, 2005, Stephen Figliuolo was appointed executive vice president and corporate risk officer and Jeffrey Powell was appointed senior vice president, controller, and principal accounting officer. On July 21, 2005, Judi Klawinski was appointed senior vice president and head of retail delivery.
On May 20, 2005, Stephen Figliuolo was appointed executive vice president and corporate risk officer and Jeffrey Powell was appointed senior vice president, controller, and principal accounting officer. On July 21, 2005, Judi Klawinski was appointed senior vice president and head of retail delivery.
Citizens Named a ‘Preferred Lender’ with the Federal Farm Service Agency
On June 6, 2005, Citizens announced that it has been named a preferred lender with the Farm Service Agency (FSA) for the state of Wisconsin. By holding this designation, Citizens is able to significantly streamline underwriting and servicing operations for FSA program requests, which resulted in quicker responses for clients.
On June 6, 2005, Citizens announced that it has been named a preferred lender with the Farm Service Agency (FSA) for the state of Wisconsin. By holding this designation, Citizens is able to significantly streamline underwriting and servicing operations for FSA program requests, which resulted in quicker responses for clients.
Citizens Offers Retail Lockbox Service
On June 7, 2005, Citizens announced that it is gaining a competitive edge with medium-size business clients in need of automated, high-volume check processing by offering retail lockbox services. This service employs high-speed processing and optical character-recognition technology to automate procedures, reduce errors and includes an option to image incoming items.
On June 7, 2005, Citizens announced that it is gaining a competitive edge with medium-size business clients in need of automated, high-volume check processing by offering retail lockbox services. This service employs high-speed processing and optical character-recognition technology to automate procedures, reduce errors and includes an option to image incoming items.
Stock Repurchase Program
During the second quarter of 2005, Citizens repurchased a total of 100,000 shares of its stock at an average price of $29.62. As of June 30, 2005 there are 2,664,200 shares remaining to be purchased under the program approved by the company’s Board of Directors on October 16, 2003.
During the second quarter of 2005, Citizens repurchased a total of 100,000 shares of its stock at an average price of $29.62. As of June 30, 2005 there are 2,664,200 shares remaining to be purchased under the program approved by the company’s Board of Directors on October 16, 2003.
Dividend Announcement
The Board of Directors of Citizens Banking Corporation declared a cash dividend of $0.285 per share of common stock. The dividend is payable on August 11, 2005, to shareholders of record on August 2, 2005.
The Board of Directors of Citizens Banking Corporation declared a cash dividend of $0.285 per share of common stock. The dividend is payable on August 11, 2005, to shareholders of record on August 2, 2005.
Investor Conference Call
William R. Hartman, chairman, president and CEO, Charles D. Christy, CFO, John D. Schwab, chief credit officer, and Martin E. Grunst, treasurer, will review the quarter’s results in a conference call for investors and analysts beginning at10:00am EDT on Friday, July 22, 2005.
William R. Hartman, chairman, president and CEO, Charles D. Christy, CFO, John D. Schwab, chief credit officer, and Martin E. Grunst, treasurer, will review the quarter’s results in a conference call for investors and analysts beginning at10:00am EDT on Friday, July 22, 2005.
A live audio web cast is available athttp://www.vcall.com/CEPage.asp?ID=92586. To participate in the conference call, please call the number below approximately 10 minutes prior to the scheduled conference time: US/Canada Dial-In Number: (877) 407-9205 International Dial-In Number: (201) 689-8054 Conference ID: 159719 Conference Name: “Citizens Banking Corporation Second Quarter Earnings Conference Call” R.S.V.P. is not required.
A playback of the conference call will be available after 12:00 p.m. EDT through August 8, 2005, by dialing US/Canada Dial-In Number: (877) 660-6853 or International Dial-In Number: (201) 612-7415, Account Number:
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286, Conference ID: 159719. Also, the call can be accessed via Citizens’ Web site, through the Investor Relations section athttp://www.citizensonline.com
Corporate Profile
Citizens Banking Corporation is a diversified financial services company providing a full range of commercial, consumer, mortgage banking, trust and financial planning services to a broad client base. Citizens operates 181 branch, private banking, and financial center locations and 189 ATMs throughout Michigan, Wisconsin, and Iowa.
Citizens Banking Corporation is a diversified financial services company providing a full range of commercial, consumer, mortgage banking, trust and financial planning services to a broad client base. Citizens operates 181 branch, private banking, and financial center locations and 189 ATMs throughout Michigan, Wisconsin, and Iowa.
Safe Harbor Statement
Discussions in this release that are not statements of historical fact (including statements that include terms such as “will” “may,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” and “plan”) are forward-looking statements that involve risks and uncertainties, and Citizens’ actual future results could materially differ from those discussed. Factors that could cause or contribute to such differences include, without limitation, adverse changes in Citizens’ loan and lease portfolios and the resulting credit risk-related losses and expenses (including losses due to fraud and economic factors), Citizens’ future lending and collections experience and the potential inadequacy of Citizens’ loan loss reserves, interest rate fluctuations and the effects on net interest income of changes in Citizens’ interest rate risk position, the potential inability to hedge certain risks economically, other adverse changes in economic or financial market conditions, the effects of terrorist attacks and potential attacks, Citizens’ potential inability to continue to attract core deposits, Citizens’ potential inability to continue to obtain third party financing on favorable terms, adverse changes in competition and pricing environments, Citizens’ potential failure to maintain or improve loan quality levels and origination volume, unanticipated expenses and payments relating to litigation brought against Citizens from time to time, unanticipated technological changes that require major capital expenditures, adverse changes in applicable laws and regulatory requirements, the potential lack of market acceptance of Citizens’ products and services, adverse changes in Citizens’ relationship with major customers, changes in accounting rules that negatively impact results of operations or capital, the potential inadequacy of Citizens’ business continuity plans, the potential failure of Citizens’ external vendors to fulfill their contractual obligations to Citizens, Citizens’ potential inability to integrate acquired operations or complete its restructuring, unanticipated environmental liabilities or costs, impairment of the ability of the banking subsidiaries to pay dividends to the holding company parent, Citizens’ success in managing the risks involved in the foregoing, and other risks and uncertainties detailed from time to time in its filings with the Securities and Exchange Commission. Other factors not currently anticipated by management may also materially and adversely affect Citizens’ results of operations. There can be no assurance that the future results will meet expectations. While Citizens believes that its forward-looking statements are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Citizens does not undertake, and expressly disclaims any obligation, to update or alter its statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Discussions in this release that are not statements of historical fact (including statements that include terms such as “will” “may,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” and “plan”) are forward-looking statements that involve risks and uncertainties, and Citizens’ actual future results could materially differ from those discussed. Factors that could cause or contribute to such differences include, without limitation, adverse changes in Citizens’ loan and lease portfolios and the resulting credit risk-related losses and expenses (including losses due to fraud and economic factors), Citizens’ future lending and collections experience and the potential inadequacy of Citizens’ loan loss reserves, interest rate fluctuations and the effects on net interest income of changes in Citizens’ interest rate risk position, the potential inability to hedge certain risks economically, other adverse changes in economic or financial market conditions, the effects of terrorist attacks and potential attacks, Citizens’ potential inability to continue to attract core deposits, Citizens’ potential inability to continue to obtain third party financing on favorable terms, adverse changes in competition and pricing environments, Citizens’ potential failure to maintain or improve loan quality levels and origination volume, unanticipated expenses and payments relating to litigation brought against Citizens from time to time, unanticipated technological changes that require major capital expenditures, adverse changes in applicable laws and regulatory requirements, the potential lack of market acceptance of Citizens’ products and services, adverse changes in Citizens’ relationship with major customers, changes in accounting rules that negatively impact results of operations or capital, the potential inadequacy of Citizens’ business continuity plans, the potential failure of Citizens’ external vendors to fulfill their contractual obligations to Citizens, Citizens’ potential inability to integrate acquired operations or complete its restructuring, unanticipated environmental liabilities or costs, impairment of the ability of the banking subsidiaries to pay dividends to the holding company parent, Citizens’ success in managing the risks involved in the foregoing, and other risks and uncertainties detailed from time to time in its filings with the Securities and Exchange Commission. Other factors not currently anticipated by management may also materially and adversely affect Citizens’ results of operations. There can be no assurance that the future results will meet expectations. While Citizens believes that its forward-looking statements are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Citizens does not undertake, and expressly disclaims any obligation, to update or alter its statements whether as a result of new information, future events or otherwise, except as required by applicable law.
####
(Financial highlights follow)
(Financial highlights follow)
Visit our Web site at http://www.CitizensOnline.com
7
Consolidated Balance Sheets (Unaudited)
Citizens Banking Corporation and Subsidiaries
Citizens Banking Corporation and Subsidiaries
| June 30, | March 31, | June 30, | ||||||||||
| (in thousands) | 2005 | 2005 | 2004 | |||||||||
Assets | ||||||||||||
| Cash and due from banks | $ | 163,461 | $ | 145,707 | $ | 173,117 | ||||||
| Interest-bearing deposits with banks | 1,128 | 1,596 | 2,169 | |||||||||
| Investment Securities: | ||||||||||||
| Available-for-sale: | ||||||||||||
| U.S. Treasury and federal agency securities | 1,341,398 | 1,377,766 | 1,452,159 | |||||||||
| State and municipal securities | 379,625 | 386,515 | 410,635 | |||||||||
| Other securities | 56,118 | 68,983 | 70,763 | |||||||||
| Held-to-maturity: | ||||||||||||
| State and municipal securities (fair value of $69,263, $58,622 and $41,232, respectively) | 67,813 | 58,942 | 42,523 | |||||||||
| Total investment securities | 1,844,954 | 1,892,206 | 1,976,080 | |||||||||
| Mortgage loans held for sale | 29,751 | 34,627 | 26,323 | |||||||||
| Loans: | ||||||||||||
| Commercial | 1,634,924 | 1,626,541 | 1,632,726 | |||||||||
| Commercial real estate | 1,334,169 | 1,313,825 | 1,254,588 | |||||||||
| Residential mortgage loans | 524,735 | 495,953 | 481,132 | |||||||||
| Direct consumer | 1,186,659 | 1,173,234 | 1,131,827 | |||||||||
| Indirect consumer | 842,741 | 820,289 | 800,476 | |||||||||
| Total loans | 5,523,228 | 5,429,842 | 5,300,749 | |||||||||
| Less: Allowance for loan losses | (119,967 | ) | (120,945 | ) | (123,805 | ) | ||||||
| Net loans | 5,403,261 | 5,308,897 | 5,176,944 | |||||||||
| Premises and equipment | 120,353 | 121,107 | 118,675 | |||||||||
| Goodwill | 54,527 | 54,527 | 54,785 | |||||||||
| Other intangible assets | 12,582 | 13,307 | 15,482 | |||||||||
| Bank owned life insurance | 83,183 | 83,072 | 81,452 | |||||||||
| Other assets | 112,737 | 121,690 | 122,880 | |||||||||
Total assets | $ | 7,825,937 | $ | 7,776,736 | $ | 7,747,907 | ||||||
Liabilities | ||||||||||||
| Noninterest-bearing deposits | $ | 927,270 | $ | 891,849 | $ | 919,924 | ||||||
| Interest-bearing demand deposits | 1,008,599 | 1,106,744 | 1,268,185 | |||||||||
| Savings deposits | 1,475,220 | 1,578,058 | 1,435,088 | |||||||||
| Time deposits | 1,789,649 | 1,712,883 | 1,738,237 | |||||||||
| Total deposits | 5,200,738 | 5,289,534 | 5,361,434 | |||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 930,499 | 853,926 | 700,279 | |||||||||
| Other short-term borrowings | 17,952 | 6,157 | 47,641 | |||||||||
| Other liabilities | 78,072 | 79,656 | 79,415 | |||||||||
| Long-term debt | 936,527 | 901,875 | 931,390 | |||||||||
| Total liabilities | 7,163,788 | 7,131,148 | 7,120,159 | |||||||||
Shareholders’ Equity | ||||||||||||
| Preferred stock - no par value | — | — | — | |||||||||
| Common stock - - no par value | 94,100 | 94,966 | 99,333 | |||||||||
| Retained earnings | 555,017 | 546,882 | 523,581 | |||||||||
| Accumulated other comprehensive income | 13,032 | 3,740 | 4,834 | |||||||||
| Total shareholders’ equity | 662,149 | 645,588 | 627,748 | |||||||||
Total liabilities and shareholders’ equity | $ | 7,825,937 | $ | 7,776,736 | $ | 7,747,907 | ||||||
8
Consolidated Statements of Income (Unaudited)
Citizens Banking Corporation and Subsidiaries
Citizens Banking Corporation and Subsidiaries
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30 , | June 30, | ||||||||||||||||
| (in thousands, except per share amounts) | 2005 | 2004 | 2005 | 2004 | |||||||||||||
Interest Income | |||||||||||||||||
| Interest and fees on loans | $ | 83,475 | $ | 74,073 | $ | 162,747 | $ | 147,779 | |||||||||
| Interest and dividends on investment securities: | |||||||||||||||||
| Taxable | 14,979 | 16,021 | 29,667 | 31,463 | |||||||||||||
| Tax-exempt | 5,147 | 5,279 | 10,344 | 10,523 | |||||||||||||
| Money market investments | 18 | 2 | 27 | 4 | |||||||||||||
| Total interest income | 103,619 | 95,375 | 202,785 | 189,769 | |||||||||||||
Interest Expense | |||||||||||||||||
| Deposits | 19,122 | 15,892 | 37,193 | 32,343 | |||||||||||||
| Short-term borrowings | 6,700 | 1,798 | 11,141 | 3,070 | |||||||||||||
| Long-term debt | 9,018 | 8,467 | 17,439 | 16,810 | |||||||||||||
| Total interest expense | 34,840 | 26,157 | 65,773 | 52,223 | |||||||||||||
Net Interest Income | 68,779 | 69,218 | 137,012 | 137,546 | |||||||||||||
| Provision for loan losses | 1,396 | 4,500 | 4,396 | 11,500 | |||||||||||||
| Net interest income after provision for loan losses | 67,383 | 64,718 | 132,616 | 126,046 | |||||||||||||
Noninterest Income | |||||||||||||||||
| Service charges on deposit accounts | 8,822 | 9,069 | 17,109 | 17,111 | |||||||||||||
| Trust fees | 4,503 | 4,528 | 8,915 | 8,838 | |||||||||||||
| Mortgage and other loan income | 2,074 | 3,047 | 4,434 | 5,303 | |||||||||||||
| Brokerage and investment fees | 2,284 | 2,651 | 3,883 | 4,433 | |||||||||||||
| Bankcard fees | 961 | 911 | 1,801 | 1,694 | |||||||||||||
| Other | 4,465 | 4,650 | 9,422 | 9,989 | |||||||||||||
| Total fees and other income | 23,109 | 24,856 | 45,564 | 47,368 | |||||||||||||
| Investment securities gain | 37 | (2,053 | ) | 43 | (2,053 | ) | |||||||||||
| Total noninterest income | 23,146 | 22,803 | 45,607 | 45,315 | |||||||||||||
Noninterest Expense | |||||||||||||||||
| Salaries and employee benefits | 32,351 | 33,185 | 65,702 | 65,124 | |||||||||||||
| Occupancy | 5,685 | 4,922 | 11,245 | 10,264 | |||||||||||||
| Professional services | 3,726 | 4,281 | 7,925 | 8,209 | |||||||||||||
| Equipment | 4,937 | 3,668 | 8,238 | 7,310 | |||||||||||||
| Data processing services | 3,499 | 3,440 | 6,868 | 7,086 | |||||||||||||
| Advertising and public relations | 1,820 | 2,038 | 3,566 | 4,183 | |||||||||||||
| Postage and delivery | 1,520 | 1,862 | 3,110 | 3,418 | |||||||||||||
| Telephone | 1,465 | 1,451 | 2,906 | 2,985 | |||||||||||||
| Other loan expenses | 874 | 1,631 | 1,249 | 2,760 | |||||||||||||
| Stationery and supplies | 602 | 916 | 1,521 | 1,758 | |||||||||||||
| Intangible asset amortization | 724 | 724 | 1,449 | 1,449 | |||||||||||||
| Other | 3,787 | 4,025 | 7,812 | 8,131 | |||||||||||||
| Total noninterest expense | 60,990 | 62,143 | 121,591 | 122,677 | |||||||||||||
Income Before Income Taxes | 29,539 | 25,378 | 56,632 | 48,684 | |||||||||||||
| Income tax provision | 8,974 | 6,656 | 15,987 | 12,519 | |||||||||||||
Net Income | $ | 20,565 | $ | 18,722 | $ | 40,645 | $ | 36,165 | |||||||||
Net Income Per Share: | |||||||||||||||||
| Basic | $ | 0.48 | $ | 0.43 | $ | 0.94 | $ | 0.83 | |||||||||
| Diluted | 0.47 | 0.43 | 0.93 | 0.83 | |||||||||||||
Cash Dividends Declared Per Share | 0.285 | 0.285 | 0.570 | 0.570 | |||||||||||||
Average Shares Outstanding: | |||||||||||||||||
| Basic | 43,160 | 43,292 | 43,192 | 43,303 | |||||||||||||
| Diluted | 43,424 | 43,752 | 43,534 | 43,806 | |||||||||||||
9
Selected Quarterly Information
Citizens Banking Corporation and Subsidiaries
Citizens Banking Corporation and Subsidiaries
| 2nd Qtr 2005 | 1st Qtr 2005 | 4th Qtr 2004 | 3rd Qtr 2004 | 2nd Qtr 2004 | ||||||||||||||||
Summary of Operations (thousands) | ||||||||||||||||||||
| Interest income | $ | 103,619 | $ | 99,166 | $ | 97,170 | $ | 96,029 | $ | 95,375 | ||||||||||
| Interest expense | 34,840 | 30,933 | 28,690 | 26,728 | 26,157 | |||||||||||||||
| Net interest income | 68,779 | 68,233 | 68,480 | 69,301 | 69,218 | |||||||||||||||
| Provision for loan losses | 1,396 | 3,000 | 4,609 | 4,985 | 4,500 | |||||||||||||||
| Net interest income after provision for loan losses | 67,383 | 65,233 | 63,871 | 64,316 | 64,718 | |||||||||||||||
| Total fees and other income | 23,109 | 22,455 | 23,644 | 34,548 | 24,856 | |||||||||||||||
| Investment securities gains (losses) | 37 | 6 | 10 | 534 | (2,053 | ) | ||||||||||||||
| Noninterest expense | 60,990 | 60,601 | 61,117 | 78,973 | 62,143 | |||||||||||||||
| Income tax provision | 8,974 | 7,013 | 6,122 | 779 | 6,656 | |||||||||||||||
| Net income | 20,565 | 20,080 | 20,286 | 19,646 | 18,722 | |||||||||||||||
| Taxable equivalent adjustment | 3,324 | 3,353 | 3,324 | 3,350 | 3,356 | |||||||||||||||
At Period End (millions) | ||||||||||||||||||||
| Total assets | $ | 7,826 | $ | 7,777 | $ | 7,706 | $ | 7,659 | $ | 7,748 | ||||||||||
| Total earning assets | 7,399 | 7,358 | 7,292 | 7,233 | 7,305 | |||||||||||||||
| Total loans including held for sale | 5,553 | 5,464 | 5,421 | 5,319 | 5,327 | |||||||||||||||
| Total deposits | 5,201 | 5,290 | 5,300 | 5,267 | 5,361 | |||||||||||||||
| Total shareholders’ equity | 662 | 646 | 654 | 650 | 628 | |||||||||||||||
Average Balances (millions) | ||||||||||||||||||||
| Total assets | $ | 7,807 | $ | 7,728 | $ | 7,661 | $ | 7,669 | $ | 7,769 | ||||||||||
| Total earning assets | 7,386 | 7,302 | 7,238 | 7,235 | 7,338 | |||||||||||||||
| Total loans including held for sale | 5,510 | 5,424 | 5,337 | 5,289 | 5,312 | |||||||||||||||
| Total deposits | 5,254 | 5,349 | 5,258 | 5,336 | 5,435 | |||||||||||||||
| Total shareholders’ equity | 654 | 649 | 649 | 637 | 628 | |||||||||||||||
| Shareholders’ equity / assets | 8.37 | % | 8.40 | % | 8.48 | % | 8.31 | % | 8.08 | % | ||||||||||
Credit Quality Statistics (thousands) | ||||||||||||||||||||
| Nonaccrual loans | $ | 42,191 | $ | 36,593 | $ | 42,819 | $ | 41,706 | $ | 48,191 | ||||||||||
| Loans 90 or more days past due and still accruing | 2 | 11 | 40 | 324 | 298 | |||||||||||||||
| Restructured loans | 32 | 42 | 42 | 52 | 52 | |||||||||||||||
| Total nonperforming loans | 42,225 | 36,646 | 42,901 | 42,082 | 48,541 | |||||||||||||||
| Other repossessed assets acquired (ORAA) | 6,817 | 7,118 | 7,946 | 10,303 | 9,673 | |||||||||||||||
| Total nonperforming assets | $ | 49,042 | $ | 43,764 | $ | 50,847 | $ | 52,385 | $ | 58,214 | ||||||||||
| Allowance for loan losses | $ | 119,967 | $ | 120,945 | $ | 122,184 | $ | 122,184 | $ | 123,805 | ||||||||||
| Allowance for loan losses as a percent of portfolio loans | 2.17 | % | 2.23 | % | 2.27 | % | 2.30 | % | 2.34 | % | ||||||||||
| Allowance for loan losses as a percent of nonperforming assets | 244.62 | 276.36 | 240.30 | 233.24 | 212.67 | |||||||||||||||
| Allowance for loan losses as a percent of nonperforming loans | 284.11 | 330.04 | 284.80 | 290.35 | 255.05 | |||||||||||||||
| Nonperforming assets as a percent of portfolio loans plus ORAA | 0.89 | 0.80 | 0.94 | 0.99 | 1.10 | |||||||||||||||
| Nonperforming assets as a percent of total assets | 0.63 | 0.56 | 0.66 | 0.68 | 0.75 | |||||||||||||||
| Net loans charged off as a percent of average portfolio loans (annualized) | 0.17 | 0.32 | 0.35 | 0.38 | 0.34 | |||||||||||||||
| Net loans charged off (000) | $ | 2,374 | $ | 4,239 | $ | 4,609 | $ | 4,984 | $ | 4,398 | ||||||||||
Per Common Share Data | ||||||||||||||||||||
| Net Income: | ||||||||||||||||||||
| Basic | $ | 0.48 | $ | 0.46 | $ | 0.47 | $ | 0.46 | $ | 0.43 | ||||||||||
| Diluted | 0.47 | 0.46 | 0.46 | 0.45 | 0.43 | |||||||||||||||
| Dividends | 0.285 | 0.285 | 0.285 | 0.285 | 0.285 | |||||||||||||||
| Market Value: | ||||||||||||||||||||
| High | $ | 30.98 | $ | 34.81 | $ | 35.43 | $ | 33.36 | $ | 33.99 | ||||||||||
| Low | 26.35 | 29.02 | 32.01 | 29.42 | 28.31 | |||||||||||||||
| Close | 30.22 | 29.36 | 34.35 | 32.57 | 31.05 | |||||||||||||||
| Book value | 15.31 | 14.95 | 15.13 | 15.03 | 14.51 | |||||||||||||||
| Shares outstanding, end of period (000) | 43,261 | 43,173 | 43,240 | 43,234 | 43,263 | |||||||||||||||
Performance Ratios (annualized) | ||||||||||||||||||||
Net interest margin (FTE) (1) | 3.92 | % | 3.96 | % | 3.97 | % | 4.02 | % | 3.98 | % | ||||||||||
| Return on average assets | 1.06 | 1.05 | 1.05 | 1.02 | 0.97 | |||||||||||||||
| Return on average shareholders’ equity | 12.62 | 12.54 | 12.43 | 12.27 | 12.00 | |||||||||||||||
Efficiency ratio (2) | 64.06 | 64.44 | 64.21 | 63.86 | 63.78 | |||||||||||||||
| (1) | Net interest margin is presented on an annual basis, includes taxable equivalent adjustments to interest income and is based on a tax rate of 35%. | |
| (2) | Efficiency Ratio = Noninterest expense/(Net interest income + Taxable equivalent adjustment + Total fees and other income). It measures how efficiently a bank spends its revenues. The fourth quarter 2004 excludes a special charge recovery of $0.2 million and the third quarter 2004 excludes the gain on the sale of the Illinois Bank subsidiary of $11.7 million and a prepayment penalty on FHLB advances of $18.0 million. | |
| The efficiency ratio for the fourth and third quarters of 2004 would equal 64.03% and 73.67%, respectively, if these items were included in the calculation. | ||
10
Financial Summary and Comparison
Citizens Banking Corporation and Subsidiaries
Citizens Banking Corporation and Subsidiaries
| For the six months ended | ||||||||||||
| June 30, | ||||||||||||
| 2005 | 2004 | % Change | ||||||||||
Summary of Operations (thousands) | ||||||||||||
| Interest income | $ | 202,785 | $ | 189,769 | 6.9 | % | ||||||
| Interest expense | 65,773 | 52,223 | 25.9 | |||||||||
| Net interest income | 137,012 | 137,546 | (0.4 | ) | ||||||||
| Provision for loan losses | 4,396 | 11,500 | (61.8 | ) | ||||||||
| Net interest income after provision for loan losses | 132,616 | 126,046 | 5.2 | |||||||||
| Total fees and other income | 45,564 | 47,368 | (3.8 | ) | ||||||||
| Investment securities gains (losses) | 43 | (2,053 | ) | (102.1 | ) | |||||||
| Noninterest expense | 121,591 | 122,677 | (0.9 | ) | ||||||||
| Income tax provision | 15,987 | 12,519 | 27.7 | |||||||||
| Net income | 40,645 | 36,165 | 12.4 | |||||||||
At Period End (millions) | ||||||||||||
| Total assets | $ | 7,826 | $ | 7,748 | 1.0 | % | ||||||
| Total earning assets | 7,399 | 7,305 | 1.3 | |||||||||
| Total loans including held for sale | 5,553 | 5,327 | 4.2 | |||||||||
| Total deposits | 5,201 | 5,361 | (3.0 | ) | ||||||||
| Total shareholders’ equity | 662 | 628 | 5.5 | |||||||||
Average Balances (millions) | ||||||||||||
| Total assets | $ | 7,768 | $ | 7,705 | 0.8 | % | ||||||
| Total earning assets | 7,344 | 7,283 | 0.8 | |||||||||
| Total loans including held for sale | 5,468 | 5,271 | 3.7 | |||||||||
| Total deposits | 5,301 | 5,455 | (2.8 | ) | ||||||||
| Total shareholders’ equity | 652 | 636 | 2.5 | |||||||||
| Shareholders’ equity / assets | 8.39 | % | 8.25 | % | 1.6 | |||||||
Per Common Share Data | ||||||||||||
| Net Income: | ||||||||||||
| Basic | $ | 0.94 | $ | 0.83 | 13.3 | % | ||||||
| Diluted | 0.93 | 0.83 | 12.0 | |||||||||
| Dividends | 0.570 | 0.570 | — | |||||||||
| Market Value: | ||||||||||||
| High | $ | 34.81 | $ | 34.00 | 2.4 | |||||||
| Low | 26.35 | 28.31 | (6.9 | ) | ||||||||
| Close | 30.22 | 31.50 | (4.1 | ) | ||||||||
| Book value | 15.31 | 14.51 | 5.5 | |||||||||
| Tangible book value | 13.75 | 12.89 | 6.7 | |||||||||
| Shares outstanding, end of period (000) | 43,261 | 43,263 | — | |||||||||
Performance Ratios (annualized) | ||||||||||||
Net interest margin (FTE) (1) | 3.94 | % | 3.99 | % | (1.3 | )% | ||||||
| Return on average assets | 1.06 | 0.94 | 12.8 | |||||||||
| Return on average shareholders’ equity | 12.58 | 11.44 | 10.0 | |||||||||
| Net loans charged off as a percent of average portfolio loans | 0.25 | 0.43 | (41.9 | ) | ||||||||
| (1) | Net interest margin is presented on an annual basis and includes taxable equivalent adjustments to interest income of $6.7 million and $6.7 million for the six months ended June 30, 2005 and 2004, respectively, based on a tax rate of 35%. | |
11
Noninterest Income and Noninterest Expense (Unaudited)
Citizens Banking Corporation and Subsidiaries
Citizens Banking Corporation and Subsidiaries
| Quarter Ended | ||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||
| (in thousands) | 2005 | 2005 | 2004 | 2004 | 2004 | |||||||||||||||
| NONINTEREST INCOME: | ||||||||||||||||||||
| Service charges on deposit accounts | $ | 8,822 | $ | 8,287 | $ | 8,814 | $ | 9,196 | $ | 9,069 | ||||||||||
| Trust fees | 4,503 | 4,412 | 4,794 | 4,222 | 4,528 | |||||||||||||||
| Mortgage and other loan income | 2,074 | 2,360 | 2,562 | 1,750 | 3,047 | |||||||||||||||
| Brokerage and investment fees | 2,284 | 1,599 | 1,733 | 1,719 | 2,651 | |||||||||||||||
| Bankcard fees | 961 | 840 | 897 | 853 | 911 | |||||||||||||||
| Gain on sale of Illinois bank subsidiary | — | — | — | 11,650 | — | |||||||||||||||
| Other income | 4,465 | 4,957 | 4,844 | 5,158 | 4,650 | |||||||||||||||
| Total fees and other income | 23,109 | 22,455 | 23,644 | 34,548 | 24,856 | |||||||||||||||
| Investment securities gains (losses) | 37 | 6 | 10 | 534 | (2,053 | ) | ||||||||||||||
| TOTAL NONINTEREST INCOME | $ | 23,146 | $ | 22,461 | $ | 23,654 | $ | 35,082 | $ | 22,803 | ||||||||||
| NONINTEREST EXPENSE: | ||||||||||||||||||||
| Salaries and employee benefits | $ | 32,351 | $ | 33,351 | $ | 31,320 | $ | 32,649 | $ | 33,185 | ||||||||||
| Occupancy | 5,685 | 5,560 | 5,077 | 4,859 | 4,922 | |||||||||||||||
| Professional services | 3,726 | 4,199 | 3,911 | 4,131 | 4,281 | |||||||||||||||
| Equipment | 4,937 | 3,301 | 3,575 | 3,486 | 3,668 | |||||||||||||||
| Data processing services | 3,499 | 3,369 | 3,074 | 3,192 | 3,440 | |||||||||||||||
| Advertising and public relations | 1,820 | 1,746 | 2,907 | 2,090 | 2,038 | |||||||||||||||
| Postage and delivery | 1,520 | 1,590 | 1,600 | 1,516 | 1,862 | |||||||||||||||
| Telephone | 1,465 | 1,441 | 1,502 | 1,543 | 1,451 | |||||||||||||||
| Other loan expenses | 874 | 375 | 840 | 384 | 1,631 | |||||||||||||||
| Stationery and supplies | 602 | 919 | 1,046 | 947 | 916 | |||||||||||||||
| Intangible asset amortization | 724 | 725 | 725 | 725 | 724 | |||||||||||||||
| Prepayment penalty on FHLB advances | — | — | — | 17,959 | — | |||||||||||||||
| Other expense | 3,787 | 4,025 | 5,540 | 5,492 | 4,025 | |||||||||||||||
| TOTAL NONINTEREST EXPENSE | $ | 60,990 | $ | 60,601 | $ | 61,117 | $ | 78,973 | $ | 62,143 | ||||||||||
12
Average Balances, Yields and Rates
| Three Months Ended | ||||||||||||||||||||||||
| June 30, 2005 | March 31, 2005 | June 30, 2004 | ||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||||||||
| (in thousands) | Balance | Rate(1) | Balance | Rate(1) | Balance(2) | Rate(1)(2) | ||||||||||||||||||
Earning Assets | ||||||||||||||||||||||||
| Money market investments | $ | 3,209 | 2.28 | % | $ | 1,799 | 2.01 | % | $ | 1,904 | 0.38 | % | ||||||||||||
Investment securities(3): | ||||||||||||||||||||||||
| Taxable | 1,436,384 | 4.17 | 1,435,683 | 4.09 | 1,579,622 | 4.06 | ||||||||||||||||||
| Tax-exempt | 421,144 | 7.52 | 420,931 | 7.60 | 427,115 | 7.61 | ||||||||||||||||||
| Mortgage loans held for sale | 38,478 | 5.59 | 31,341 | 5.49 | 50,409 | 5.31 | ||||||||||||||||||
Loans(4): | ||||||||||||||||||||||||
| Commercial | 1,640,287 | 5.90 | 1,615,304 | 5.62 | 1,630,970 | 5.15 | ||||||||||||||||||
| Commercial real estate | 1,320,077 | 6.28 | 1,291,629 | 6.08 | 1,270,011 | 5.69 | ||||||||||||||||||
| Residential mortgage loans | 499,425 | 5.64 | 497,925 | 5.47 | 476,453 | 5.82 | ||||||||||||||||||
| Direct consumer | 1,181,656 | 6.15 | 1,167,894 | 6.03 | 1,114,664 | 5.51 | ||||||||||||||||||
| Indirect consumer | 830,330 | 6.53 | 820,291 | 6.66 | 769,978 | 6.73 | ||||||||||||||||||
| Total portfolio loans | 5,471,775 | 6.12 | 5,393,043 | 5.96 | 5,262,076 | 5.65 | ||||||||||||||||||
| Total earning assets | 7,370,990 | 5.81 | 7,282,797 | 5.68 | 7,321,126 | 5.41 | ||||||||||||||||||
Nonearning Assets | ||||||||||||||||||||||||
| Cash and due from banks | 152,838 | 158,195 | 161,584 | |||||||||||||||||||||
| Bank premises and equipment | 121,863 | 120,902 | 118,846 | |||||||||||||||||||||
| Investment security fair value adjustment | 15,326 | 18,974 | 17,220 | |||||||||||||||||||||
| Other nonearning assets | 266,932 | 268,861 | 275,225 | |||||||||||||||||||||
| Allowance for loan losses | (120,560 | ) | (121,267 | ) | (125,200 | ) | ||||||||||||||||||
| Total assets | $ | 7,807,389 | $ | 7,728,462 | $ | 7,768,801 | ||||||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Interest-bearing demand | $ | 1,071,211 | 0.67 | $ | 1,153,239 | 0.70 | $ | 1,315,875 | 0.72 | |||||||||||||||
| Savings deposits | 1,512,212 | 1.28 | 1,626,232 | 1.27 | 1,383,164 | 0.64 | ||||||||||||||||||
| Time deposits | 1,742,621 | 2.88 | 1,662,673 | 2.68 | 1,818,784 | 2.50 | ||||||||||||||||||
| Short-term borrowings | 890,444 | 3.02 | 717,971 | 2.51 | 687,927 | 1.05 | ||||||||||||||||||
| Long-term debt | 925,817 | 3.91 | 927,497 | 3.67 | 935,479 | 3.64 | ||||||||||||||||||
| Total interest-bearing liabilities | 6,142,305 | 2.27 | 6,087,612 | 2.06 | 6,141,229 | 1.71 | ||||||||||||||||||
Noninterest-Bearing Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Noninterest-bearing demand | 927,566 | 906,615 | 917,203 | |||||||||||||||||||||
| Other liabilities | 83,828 | 84,766 | 82,768 | |||||||||||||||||||||
| Shareholders’ equity | 653,690 | 649,469 | 627,601 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,807,389 | $ | 7,728,462 | $ | 7,768,801 | ||||||||||||||||||
Interest Spread | 3.54 | % | 3.62 | % | 3.70 | % | ||||||||||||||||||
| Contribution of noninterest bearing sources of funds | 0.38 | 0.34 | 0.28 | |||||||||||||||||||||
Net Interest Income as a Percent of Earning Assets | 3.92 | % | 3.96 | % | 3.98 | % | ||||||||||||||||||
| (1) | Average rates are presented on an annual basis and include taxable equivalent adjustments to interest income. | |
| (2) | Certain amounts have been reclassified to conform with current year presentation. | |
| (3) | For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. | |
| (4) | Nonaccrual loans are included in average balances. | |
13
Average Balances, Yields and Rates
| Six Months Ended June 30, | ||||||||||||||||
| 2005 | 2004 | |||||||||||||||
| Average | Average | Average | Average | |||||||||||||
| (in thousands) | Balance | Rate(1) | Balance(2) | Rate(1)(2) | ||||||||||||
Earning Assets | ||||||||||||||||
| Money market investments | $ | 2,508 | 2.18 | % | $ | 1,941 | 0.43 | % | ||||||||
Investment securities(3): | ||||||||||||||||
| Taxable | 1,436,036 | 4.13 | 1,554,226 | 4.05 | ||||||||||||
| Tax-exempt | 421,038 | 7.56 | 424,352 | 7.63 | ||||||||||||
| Mortgage loans held for sale | 34,929 | 5.54 | 40,572 | 5.47 | ||||||||||||
Loans(4): | ||||||||||||||||
| Commercial | 1,627,864 | 5.76 | 1,625,824 | 5.05 | ||||||||||||
| Commercial real estate | 1,305,932 | 6.18 | 1,284,958 | 5.83 | ||||||||||||
| Residential mortgage loans | 498,679 | 5.55 | 487,027 | 5.78 | ||||||||||||
| Direct consumer | 1,174,813 | 6.09 | 1,077,603 | 5.60 | ||||||||||||
| Indirect consumer | 825,338 | 6.59 | 754,594 | 6.81 | ||||||||||||
| Total portfolio loans | 5,432,626 | 6.04 | 5,230,006 | 5.68 | ||||||||||||
| Total earning assets | 7,327,137 | 5.75 | 7,251,097 | 5.44 | ||||||||||||
Nonearning Assets | ||||||||||||||||
| Cash and due from banks | 155,502 | 161,174 | ||||||||||||||
| Bank premises and equipment | 121,385 | 116,495 | ||||||||||||||
| Investment security fair value adjustment | 17,140 | 32,131 | ||||||||||||||
| Other nonearning assets | 267,891 | 269,058 | ||||||||||||||
| Allowance for loan losses | (120,912 | ) | (125,419 | ) | ||||||||||||
| �� | ||||||||||||||||
| Total assets | $ | 7,768,143 | $ | 7,704,536 | ||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Interest-bearing demand | $ | 1,111,998 | 0.69 | $ | 1,337,216 | 0.73 | ||||||||||
| Savings deposits | 1,568,907 | 1.27 | 1,335,716 | 0.58 | ||||||||||||
| Time deposits | 1,702,868 | 2.78 | 1,886,910 | 2.52 | ||||||||||||
| Short-term borrowings | 804,684 | 2.79 | 598,090 | 1.03 | ||||||||||||
| Long-term debt | 926,653 | 3.79 | 937,078 | 3.61 | ||||||||||||
| Total interest-bearing liabilities | 6,115,110 | 2.17 | 6,095,010 | 1.72 | ||||||||||||
Noninterest-Bearing Liabilities and Shareholders’ Equity | ||||||||||||||||
| Noninterest-bearing demand | 917,148 | 894,704 | ||||||||||||||
| Other liabilities | 84,294 | 78,939 | ||||||||||||||
| Shareholders’ equity | 651,591 | 635,883 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,768,143 | $ | 7,704,536 | ||||||||||||
Interest Spread | 3.58 | % | 3.72 | % | ||||||||||||
| Contribution of noninterest bearing sources of funds | 0.36 | 0.27 | ||||||||||||||
Net Interest Income as a Percent of Earning Assets | 3.94 | % | 3.99 | % | ||||||||||||
| (1) | Average rates are presented on an annual basis and include taxable equivalent adjustments to interest income. | |
| (2) | Certain amounts have been reclassified to conform with current year presentation. | |
| (3) | For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. | |
| (4) | Nonaccrual loans are included in average balances. | |
14
Nonperforming Assets
Citizens Banking Corporation and Subsidiaries
Citizens Banking Corporation and Subsidiaries
| Quarter Ended | ||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||
| (in thousands) | 2005 | 2005 | 2004 | 2004 | 2004 | |||||||||||||||
Commercial(1) | ||||||||||||||||||||
| Commercial | $ | 17,903 | $ | 12,991 | $ | 13,774 | $ | 16,407 | $ | 20,815 | ||||||||||
| Commercial real estate | 9,692 | 11,004 | 14,464 | 12,290 | 14,982 | |||||||||||||||
| Total commercial | 27,595 | 23,995 | 28,238 | 28,697 | 35,797 | |||||||||||||||
| Consumer: | ||||||||||||||||||||
| Direct | 3,726 | 3,474 | 3,518 | 3,682 | 4,042 | |||||||||||||||
| Indirect | 1,042 | 1,025 | 2,420 | 1,158 | 655 | |||||||||||||||
| Residential mortgage | 9,828 | 8,099 | 8,643 | 8,169 | 7,697 | |||||||||||||||
| Loans 90 days or more past due and still accruing | 2 | 11 | 40 | 324 | 298 | |||||||||||||||
| Restructured loans | 32 | 42 | 42 | 52 | 52 | |||||||||||||||
| Total Nonperforming Loans | 42,225 | 36,646 | 42,901 | 42,082 | 48,541 | |||||||||||||||
| Other Repossessed Assets Acquired | 6,817 | 7,118 | 7,946 | 10,303 | 9,673 | |||||||||||||||
| Total Nonperforming Assets | $ | 49,042 | $ | 43,764 | $ | 50,847 | $ | 52,385 | $ | 58,214 | ||||||||||
| (1) | Changes in commercial nonperforming loans for the quarter (in millions): | |
| Inflows | $ | 21.1 | $ | 11.2 | $ | 18.4 | $ | 22.3 | $ | 17.3 | ||||||||||
| Outflows | (17.5 | ) | (15.4 | ) | (18.9 | ) | (29.4 | ) | (23.2 | ) | ||||||||||
| Net change | $ | 3.6 | $ | (4.2 | ) | $ | (0.5 | ) | $ | (7.1 | ) | $ | (5.9 | ) | ||||||
Summary of Loan Loss Experience
Citizens Banking Corporation and Subsidiaries
Citizens Banking Corporation and Subsidiaries
| Quarter Ended | ||||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||
| (in thousands) | 2005 | 2005 | 2004 | 2004 | 2004 | |||||||||||||||
| Allowance for loan losses — beginning of period | $ | 120,945 | $ | 122,184 | $ | 122,184 | $ | 123,805 | $ | 123,703 | ||||||||||
| Less: Allowance of sold bank | — | — | — | (1,622 | ) | — | ||||||||||||||
| Provision for loan losses | 1,396 | 3,000 | 4,609 | 4,985 | 4,500 | |||||||||||||||
| Charge-offs: | ||||||||||||||||||||
| Commercial | 2,722 | 2,463 | 1,876 | 3,216 | 3,149 | |||||||||||||||
| Commercial real estate | 200 | 678 | 5,754 | 1,763 | 1,918 | |||||||||||||||
| Total commercial | 2,922 | 3,141 | 7,630 | 4,979 | 5,067 | |||||||||||||||
| Residential mortgage | 127 | 324 | 238 | 324 | 305 | |||||||||||||||
| Direct consumer | 1,227 | 1,424 | 1,600 | 1,471 | 1,220 | |||||||||||||||
| Indirect consumer | 1,534 | 2,236 | 2,155 | 1,888 | 1,630 | |||||||||||||||
| Total charge-offs | 5,810 | 7,125 | 11,623 | 8,662 | 8,222 | |||||||||||||||
| Recoveries: | ||||||||||||||||||||
| Commercial | 2,117 | 1,162 | 5,459 | 2,345 | 2,309 | |||||||||||||||
| Commercial real estate | 227 | 707 | 609 | 339 | 225 | |||||||||||||||
| Total commercial | 2,344 | 1,869 | 6,068 | 2,684 | 2,534 | |||||||||||||||
| Residential mortgage | — | — | — | 34 | 23 | |||||||||||||||
| Direct consumer | 377 | 343 | 364 | 342 | 560 | |||||||||||||||
| Indirect consumer | 715 | 674 | 582 | 618 | 707 | |||||||||||||||
| Total recoveries | 3,436 | 2,886 | 7,014 | 3,678 | 3,824 | |||||||||||||||
| Net charge-offs | 2,374 | 4,239 | 4,609 | 4,984 | 4,398 | |||||||||||||||
| Allowance for loan losses — end of period | $ | 119,967 | $ | 120,945 | $ | 122,184 | $ | 122,184 | $ | 123,805 | ||||||||||
| Reserve for loan commitments — end of period | $ | 2,868 | $ | 2,596 | $ | 2,833 | $ | 2,630 | $ | 3,000 | ||||||||||
| For the Quarter Ended June 30, 2005 | For the Six Months Ended June 30, 2005 | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | Residential | Direct | Indirect | Commercial | Residential | Direct | Indirect | |||||||||||||||||||||||||||||||||||||||||
| Commercial | real estate | mortgage | consumer | consumer | Total | Commercial | real estate | mortgage | consumer | consumer | Total | |||||||||||||||||||||||||||||||||||||
| Charge-offs: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Michigan | $ | 1,271 | $ | 116 | $ | 85 | $ | 1,026 | $ | 1,534 | $ | 4,032 | $ | 2,706 | $ | 164 | $ | 323 | $ | 2,046 | $ | 3,770 | $ | 9,009 | ||||||||||||||||||||||||
| Wisconsin | 1,204 | 84 | 8 | 186 | — | 1,482 | 2,182 | 714 | 88 | 469 | — | 3,453 | ||||||||||||||||||||||||||||||||||||
| Iowa | 247 | — | 34 | 15 | — | 296 | 297 | — | 40 | 136 | — | 473 | ||||||||||||||||||||||||||||||||||||
| Total charge-offs | 2,722 | 200 | 127 | 1,227 | 1,534 | 5,810 | 5,185 | 878 | 451 | 2,651 | 3,770 | 12,935 | ||||||||||||||||||||||||||||||||||||
| Recoveries: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Michigan | 1,207 | 144 | — | 310 | 715 | 2,376 | 1,782 | 732 | — | 595 | 1,389 | 4,498 | ||||||||||||||||||||||||||||||||||||
| Wisconsin | 816 | 83 | — | 48 | — | 947 | 1,322 | 202 | — | 87 | — | 1,611 | ||||||||||||||||||||||||||||||||||||
| Iowa | 94 | — | — | 19 | — | 113 | 175 | — | — | 38 | — | 213 | ||||||||||||||||||||||||||||||||||||
| Total recoveries | 2,117 | 227 | — | 377 | 715 | 3,436 | 3,279 | 934 | — | 720 | 1,389 | 6,322 | ||||||||||||||||||||||||||||||||||||
| Net charge-offs | $ | 605 | $ | (27 | ) | $ | 127 | $ | 850 | $ | 819 | $ | 2,374 | $ | 1,906 | $ | (56 | ) | $ | 451 | $ | 1,931 | $ | 2,381 | $ | 6,613 | ||||||||||||||||||||||
15