Consolidated Balance Sheets (Unaudited) Citizens Banking
Corporation and Subsidiaries September 30, June 30, September 30,
(in thousands) 2006 2006 2005
--------------------------------------------------------------------------
Assets Cash and due from banks $151,591 $205,117 $184,135
Interest-bearing deposits with banks 165 1,478 1,366 Investment
Securities: Available-for-sale (amortized cost $1,381,225,
$1,434,595 and $1,662,299, respectively) U.S. Treasury and federal
agency securities 1,002,893 1,043,773 1,283,574 State and municipal
securities 367,721 363,095 381,914 Other securities 8,626 1,747 537
Held-to-maturity: State and municipal securities (fair value of
$104,397, $94,559 and $75,333, respectively) 102,667 96,789 74,943
FHLB and Federal Reserve stock 58,193 55,235 55,143 ---------
--------- --------- Total investment securities 1,540,100 1,560,639
1,796,111 Mortgage loans held for sale 11,689 18,013 29,847
Portfolio loans: Commercial 1,788,922 1,789,583 1,623,857
Commercial real estate 1,468,952 1,443,851 1,377,082 Residential
mortgage loans 545,171 551,048 531,953 Direct consumer 1,090,757
1,099,146 1,171,388 Indirect consumer 859,573 844,411 864,994
--------- --------- --------- Total portfolio loans 5,753,375
5,728,039 5,569,274 Less: Allowance for loan losses (113,076)
(114,560) (118,626) --------- --------- --------- Net portfolio
loans 5,640,299 5,613,479 5,450,648 Premises and equipment 117,821
120,154 120,755 Goodwill 54,527 54,527 54,527 Other intangible
assets 8,959 9,684 11,858 Bank owned life insurance 86,580 85,921
83,773 Other assets 136,839 145,158 118,330 --------- ---------
--------- Total assets $7,748,570 $7,814,170 $7,851,350 =========
========= ========= Liabilities Noninterest-bearing deposits
$893,320 $954,907 $939,560 Interest-bearing demand deposits 739,895
744,744 962,893 Savings deposits 1,467,622 1,537,098 1,445,838 Time
deposits 2,524,509 2,447,820 1,878,180 --------- ---------
--------- Total deposits 5,625,346 5,684,569 5,226,471 Federal
funds purchased and securities sold under agreements to repurchase
342,736 443,651 916,816 Other short-term borrowings 13,298 24,073
11,825 Other liabilities 73,752 78,881 83,553 Long-term debt
1,019,131 933,124 957,836 --------- --------- --------- Total
liabilities 7,074,263 7,164,298 7,196,501 Shareholders' Equity
Preferred stock - no par value --- --- --- Common stock - no par
value 79,730 78,920 87,405 Retained earnings 596,040 587,494
563,597 Accumulated other comprehensive income (1,463) (16,542)
3,847 --------- --------- --------- Total shareholders' equity
674,307 649,872 654,849 --------- --------- --------- Total
liabilities and shareholders' equity $7,748,570 $7,814,170
$7,851,350 ========= ========= ========= Consolidated Statements of
Income (Unaudited) Citizens Banking Corporation and Subsidiaries
Three Months Ended Nine Months Ended September 30, September 30,
(in thousands, except per share amounts) 2006 2005 2006 2005
-------------------------------------------------------------------------
Interest Income Interest and fees on loans $102,871 $88,536
$294,415 $251,283 Interest and dividends on investment securities:
Taxable 12,574 14,845 39,248 44,512 Tax-exempt 5,278 5,109 15,854
15,453 Money market investments 21 16 34 43 ------- ------- -------
------- Total interest income 120,744 108,506 349,551 311,291
------- ------- ------- ------- Interest Expense Deposits 40,004
21,859 106,301 59,052 Short-term borrowings 3,596 7,707 12,727
18,848 Long-term debt 11,499 9,298 31,413 26,737 ------- -------
------- ------- Total interest expense 55,099 38,864 150,441
104,637 ------- ------- ------- ------- Net Interest Income 65,645
69,642 199,110 206,654 Provision for loan losses 1,190 4,000 5,329
8,396 ------- ------- ------- ------- Net interest income after
provision for loan losses 64,455 65,642 193,781 198,258 -------
------- ------- ------- Noninterest Income Service charges on
deposit accounts 9,674 9,343 28,070 26,452 Trust fees 4,633 4,541
14,647 13,456 Mortgage and other loan income 2,267 2,450 6,383
6,884 Brokerage and investment fees 1,885 1,974 5,103 5,857 ATM
network user fees 988 1,194 2,993 3,291 Bankcard fees 1,213 976
3,399 2,777 Fair value change in CD swap derivatives --- --- (207)
--- Other 2,884 3,463 12,410 10,788 ------- ------- ------- -------
Total fees and other income 23,544 23,941 72,798 69,505 Investment
securities gains (losses) --- --- 61 43 ------- ------- -------
------- Total noninterest income 23,544 23,941 72,859 69,548
Noninterest Expense Salaries and employee benefits 32,569 34,060
97,515 99,762 Occupancy 5,604 5,255 16,837 16,500 Professional
services 3,486 4,517 11,267 12,442 Equipment 3,191 3,133 9,658
11,371 Data processing services 3,779 3,188 11,232 10,056
Advertising and public relations 1,211 1,717 4,179 5,283 Postage
and delivery 1,559 1,512 4,650 4,622 Telephone 1,394 1,242 4,250
4,148 Other loan expenses 1,407 720 3,040 1,969 Stationery and
supplies 653 726 2,011 2,247 Intangible asset amortization 725 725
2,174 2,174 Other 3,824 3,755 14,226 11,567 ------- ------- -------
------- Total noninterest expense 59,402 60,550 181,039 182,141
------- ------- ------- ------- Income Before Income Taxes 28,597
29,033 85,601 85,665 Income tax provision 7,616 8,041 22,957 24,028
------- ------- ------- ------- Net Income $20,981 $20,992 $62,644
$61,637 ------- ------- ------- ------- Net Income Per Common
Share: Basic $0.49 $0.49 $1.47 $1.43 Diluted 0.49 0.48 1.46 1.41
Cash Dividends Declared Per Common Share 0.290 0.285 0.865 0.855
Average Common Shares Outstanding: Basic 42,587 43,099 42,658
43,161 Diluted 42,709 43,453 42,795 43,507 Selected Quarterly
Information Citizens Banking Corporation and Subsidiaries 3rd Qtr
2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2006 2006 2006 2005 2005
--------------------------------------------------------------------------
Summary of Operations (thousands) Interest income $120,744 $116,416
$112,391 $111,958 $108,506 Interest expense 55,099 50,426 44,916
42,863 38,864 Net interest income 65,645 65,990 67,475 69,095
69,642 Provision for loan losses (1) 1,190 1,139 3,000 (7,287)
4,000 Net interest income after provision for loan losses 64,455
64,851 64,475 76,382 65,642 Total fees and other income (2) 23,544
23,691 25,563 19,930 23,941 Investment securities gains (losses)
(3) --- 54 7 (8,970) --- Noninterest expense 59,402 60,065 61,572
60,901 60,550 Income tax provision 7,616 7,624 7,717 7,553 8,041
Net income 20,981 20,907 20,756 18,888 20,992 Taxable equivalent
adjustment 3,413 3,383 3,416 3,432 3,284
--------------------------------------------------------------------------
At Period End (millions) Assets $7,749 $7,814 $7,663 $7,752 $7,851
Portfolio loans 5,753 5,728 5,592 5,616 5,569 Deposits 5,625 5,685
5,524 5,474 5,226 Shareholders' equity 674 650 652 656 655
--------------------------------------------------------------------------
Average Balances (millions) Assets $7,724 $7,671 $7,654 $7,754
$7,821 Portfolio loans 5,694 5,610 5,561 5,575 5,531 Deposits 5,680
5,560 5,513 5,305 5,239 Shareholders' equity 659 647 655 654 655
Shareholders' equity/ assets 8.53% 8.44% 8.55% 8.43% 8.38%
--------------------------------------------------------------------------
Credit Quality Statistics (thousands) Nonaccrual loans $31,564
$26,001 $27,689 $32,140 $35,527 Loans 90 or more days past due and
still accruing 303 887 547 238 92 Restructured loans 391 406 1,844
--- 13 -------- -------- -------- -------- -------- Total
nonperforming loans 32,258 27,294 30,080 32,378 35,632 Other
repossessed assets acquired (ORAA) 7,767 7,472 6,397 7,351 6,984
-------- -------- -------- -------- -------- Total nonperforming
assets $40,025 $34,766 $36,477 $39,729 $42,616 -------- --------
-------- -------- -------- Allowance for loan losses $113,076
$114,560 $115,423 $116,400 $118,626 Allowance for loan losses as a
percent of portfolio loans 1.97% 2.00% 2.06% 2.07% 2.13% Allowance
for loan losses as a percent of nonperforming assets 282.51 329.52
316.43 292.98 278.36 Allowance for loan losses as a percent of
nonperforming loans 350.54 419.73 383.72 359.50 332.92
Nonperforming assets as a percent of portfolio loans plus ORAA 0.69
0.61 0.65 0.71 0.76 Nonperforming assets as a percent of total
assets 0.52 0.44 0.48 0.51 0.54 Net loans charged off as a percent
of average portfolio loans (annualized) 0.19 0.14 0.29 (0.36) 0.38
Net loans charged off (000) $2,674 $2,002 $3,977 $(5,061) $5,341
--------------------------------------------------------------------------
Per Common Share Data Net Income: Basic $0.49 $0.49 $0.49 $0.44
$0.49 Diluted 0.49 0.49 0.48 0.44 0.48 Dividends 0.290 0.290 0.285
0.285 0.285 Market Value: High $27.04 $27.60 $28.66 $30.22 $32.15
Low 23.25 23.71 25.62 26.67 28.20 Close 26.26 24.41 26.85 27.75
28.40 Book value 15.72 15.15 15.23 15.28 15.21 Shares outstanding,
end of period (000) 42,904 42,887 42,770 42,968 43,044
--------------------------------------------------------------------------
Performance Ratios (annualized) Net interest margin (FTE) (4) 3.78%
3.84% 3.97% 3.95% 3.93% Return on average assets 1.08 1.09 1.10
0.97 1.06 Return on average shareholders' equity 12.63 12.96 12.86
11.46 12.71 Efficiency ratio (5) 64.15 64.54 63.84 65.87 62.51
--------------------------------------------------------------------------
(1) The provision for loan losses and note loans charged off during
the fourth quarter of 2005 reflect an insurance settlement of $9.1
million accounted for as a loan loss recovery. (2) Total fees and
other income includes a cumulative charge of $3.6 million on swaps
related to brokered certificates during the fourth quarter of 2005.
(3) Investment securities gains (losses) includes a net loss of
$9.0 million on the sale of securities as a result of restructuring
the investment portfolio during the fourth quarter of 2005. (4) 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%. (5) The Efficiency Ratio measures how efficiently a
bank spends its revenues. The formula is: Noninterest expense/(Net
interest income + Taxable equivalent adjustment + Total fees and
other income). Financial Summary and Comparison Citizens Banking
Corporation and Subsidiaries Nine months ended September 30, 2006
2005 % Change
--------------------------------------------------------------------------
Summary of Operations (thousands) Interest income $349,551 $311,291
12.3 % Interest expense 150,441 104,637 43.8 Net interest income
199,110 206,654 (3.7) Provision for loan losses 5,329 8,396 (36.5)
Net interest income after provision for loan losses 193,781 198,258
(2.3) Total fees and other income 72,798 69,505 4.7 Investment
securities gains (losses) 61 43 42.8 Noninterest expense 181,039
182,141 (0.6) Income tax provision 22,957 24,028 (4.5) Net income
62,644 61,637 1.6
--------------------------------------------------------------------------
At Period End (millions) Assets $7,749 $7,851 (1.3)% Portfolio
loans 5,753 5,569 3.3 Deposits 5,625 5,226 7.6 Shareholders' equity
674 655 3.0
--------------------------------------------------------------------------
Average Balances (millions) Assets $7,683 $7,786 (1.3)% Portfolio
loans 5,622 5,466 2.9 Deposits 5,585 5,280 5.8 Shareholders' equity
654 653 0.1 Shareholders' equity / assets 8.51% 8.38% 1.6
--------------------------------------------------------------------------
Per Common Share Data Net Income: Basic $1.47 $1.43 2.8% Diluted
1.46 1.41 3.5 Dividends 0.865 0.855 1.2 Market Value: High $28.66
$34.81 (17.7) Low 23.25 26.35 (11.8) Close 26.26 28.40 (7.5) Book
value 15.72 15.21 3.4 Tangible book value 14.24 13.67 4.2 Shares
outstanding, end of period (000) 42,904 43,044 (0.3)
--------------------------------------------------------------------------
Performance Ratios (annualized) Net interest margin (FTE) (1) 3.86%
3.94% (2.0)% Return on average assets 1.09 1.06 2.8 Return on
average shareholders' equity 12.82 12.62 1.6 Net loans charged off
as a percent of average portfolio loans 0.21 0.29 (27.6)
-------------------------------------------------------------------------
(1) Net interest margin is presented on an annual basis and
includes taxable equivalent adjustments to interest income of $10.2
million and $10.0 million for the nine months ended September 30,
2006 and 2005, respectively, based on a tax rate of 35%.
Noninterest Income and Noninterest Expense (Unaudited) Citizens
Banking Corporation and Subsidiaries Three Months Ended
-------------------------------------------- Sep 30 Jun 30 Mar 31
Dec 31 Sep 30 (in thousands) 2006 2006 2006 2005 2005
-------------------------------------------------------------------------
NONINTEREST INCOME: Service charges on deposit accounts $9,674
$9,521 $8,875 $8,957 $9,343 Trust fees 4,633 4,972 5,042 4,989
4,541 Mortgage and other loan income 2,267 2,106 2,010 2,099 2,450
Brokerage and investment fees 1,885 1,703 1,515 1,946 1,974 ATM
network user fees 988 1,018 987 1,065 1,194 Bankcard fees 1,213
1,129 1,057 1,027 976 Fair value change in CD swap derivatives ---
--- (207) (3,604) --- Other income 2,884 3,242 6,284 3,451 3,463
------ ------ ------ ------ ------ Total fees and other income
23,544 23,691 25,563 19,930 23,941 Investment securities gains
(losses) --- 54 7 (8,970) --- ------ ------ ------ ------ ------
TOTAL NONINTEREST INCOME $23,544 $23,745 $25,570 $10,960 $23,941
======= ======= ======= ======= ======= NONINTEREST EXPENSE:
Salaries and employee benefits $32,569 $32,690 $32,256 $32,391
$34,060 Occupancy 5,604 5,291 5,942 5,631 5,255 Professional
services 3,486 3,703 4,078 4,837 4,517 Equipment 3,191 3,301 3,166
3,263 3,133 Data processing services 3,779 3,714 3,739 3,744 3,188
Advertising and public relations 1,211 934 2,034 2,570 1,717
Postage and delivery 1,559 1,629 1,462 1,591 1,512 Telephone 1,394
1,392 1,464 1,333 1,242 Other loan expenses 1,407 1,217 416 686 720
Stationery and supplies 653 631 727 844 726 Intangible asset
amortization 725 724 725 725 725 Other expense (1) 3,824 4,839
5,563 3,286 3,755 ------ ------ ------ ------ ------ TOTAL
NONINTEREST EXPENSE $59,402 $60,065 $61,572 $60,901 $60,550 =======
======= ======= ======= =======
--------------------------------------------------------------------------
(1) The quarter ended March 31, 2006 includes the $1.5 million
contribution to Citizens charitable foundation. Average Balances,
Yields and Rates Three Months Ended September 30, 2006 June 30,
2006 Average Average Average Average (dollars in thousands) Balance
Rate (1) Balance Rate (1)
--------------------------------------------------------------------------
Earning Assets Money market investments $2,048 4.08 1,373 0.45
Investment securities (3): Taxable 1,115,959 4.51 1,158,939 4.51
Tax-exempt 449,364 7.23 447,476 7.23 Mortgage loans held for sale
16,743 6.04 21,356 5.62 Portfolio loans (4): Commercial 1,740,592
7.54 1,704,447 7.26 Commercial real estate 1,458,104 7.26 1,426,911
7.13 Residential mortgage loans 545,907 5.75 544,850 5.75 Direct
consumer 1,093,724 7.69 1,103,024 7.49 Indirect consumer 855,229
6.66 831,012 6.61 --------- --------- Total portfolio loans
5,693,556 7.20 5,610,244 7.03 --------- --------- Total earning
assets 7,277,670 6.78 7,239,388 6.63 Nonearning Assets Cash and due
from banks 165,403 157,670 Bank premises and equipment 119,246
120,650 Investment security fair value adjustment (12,203) (18,523)
Other nonearning assets 288,493 287,048 Allowance for loan losses
(114,302) (115,274) --------- --------- Total assets $7,724,307
$7,670,959 ========= ========= Interest-Bearing Liabilities
Deposits: Interest-bearing demand $753,412 0.64 $789,168 0.65
Savings deposits 1,511,956 2.81 1,471,803 2.58 Time deposits
2,489,653 4.47 2,386,346 4.13 Short-term borrowings 321,140 4.44
487,549 4.44 Long-term debt 980,584 4.66 895,056 4.36 ---------
--------- Total interest-bearing liabilities 6,056,745 3.61
6,029,922 3.35 Noninterest-Bearing Liabilities and Shareholders'
Equity Noninterest-bearing demand 925,004 913,181 Other liabilities
83,749 80,727 Shareholders' equity 658,809 647,129 ---------
--------- Total liabilities and shareholders' equity $7,724,307
$7,670,959 ========= ========= Interest Spread 3.17% 3.28%
Contribution of noninterest bearing sources of funds 0.61 0.56 Net
Interest Income as a Percent of Earning Assets 3.78% 3.84%
--------------------------------------------------------------------------
(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. Average Balances, Yields and Rates Three Months
Ended September 30, 2005 Average Average (dollars in thousands)
Balance (2) Rate (1)(2)
-------------------------------------------------------------------------
Earning Assets Money market investments 2,691 2.30 Investment
securities (3): Taxable 1,381,469 4.30 Tax-exempt 428,534 7.34
Mortgage loans held for sale 40,836 5.18 Portfolio loans (4):
Commercial 1,622,724 6.36 Commercial real estate 1,352,733 6.43
Residential mortgage loans 520,861 5.54 Direct consumer 1,178,476
6.46 Indirect consumer 856,207 6.58 --------- Total portfolio loans
5,531,001 6.36 --------- Total earning assets 7,384,531 6.02
Nonearning Assets Cash and due from banks 158,631 Bank premises and
equipment 121,142 Investment security fair value adjustment 8,321
Other nonearning assets 267,861 Allowance for loan losses (119,695)
--------- Total assets $7,820,791 ========= Interest-Bearing
Liabilities Deposits: Interest-bearing demand $1,016,366 0.67
Savings deposits 1,471,878 1.55 Time deposits 1,810,928 3.16
Short-term borrowings 900,520 3.40 Long-term debt 942,624 3.92
--------- Total interest-bearing liabilities 6,142,316 2.51
Noninterest-Bearing Liabilities and Shareholders' Equity
Noninterest-bearing demand 939,668 Other liabilities 83,671
Shareholders' equity 655,136 Total liabilities and shareholders'
equity $7,820,791 ========= Interest Spread 3.51% Contribution of
noninterest bearing sources of funds 0.42 Net Interest Income as a
Percent of Earning Assets 3.93%
--------------------------------------------------------------------------
(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. Average Balances, Yields and Rates Nine Months
Ended September 30, 2006 2005 Average Average Average Average
(dollars in thousands) Balance Rate(1) Balance(2) Rate(1)(2)
--------------------------------------------------------------------------
Earning Assets Money market investments 1,703 2.69 2,570 2.22
Investment securities (3): Taxable 1,151,859 4.54 1,417,647 4.19
Tax-exempt 447,842 7.26 423,564 7.48 Mortgage loans held for sale
18,191 5.75 36,920 5.41 Portfolio loans (4): Commercial 1,697,656
7.28 1,626,133 5.96 Commercial real estate 1,433,563 7.09 1,321,703
6.27 Residential mortgage loans 544,065 5.72 506,154 5.55 Direct
consumer 1,106,930 7.47 1,176,047 6.22 Indirect consumer 839,972
6.62 835,741 6.59 --------- --------- Total portfolio loans
5,622,186 7.02 5,465,778 6.15 --------- --------- Total earning
assets 7,241,781 6.64 7,346,479 5.84 Nonearning Assets Cash and due
from banks 162,992 156,556 Bank premises and equipment 120,407
121,303 Investment security fair value adjustment (11,377) 14,168
Other nonearning assets 284,734 267,881 Allowance for loan losses
(115,235) (120,502) --------- --------- Total assets $7,683,302
$7,785,885 ========= ========= Interest-Bearing Liabilities
Deposits: Interest-bearing demand $799,570 0.64 $1,079,770 0.68
Savings deposits 1,477,773 2.55 1,536,209 1.36 Time deposits
2,386,736 4.16 1,739,284 2.91 Short-term borrowings 399,412 4.26
836,980 3.01 Long-term debt 960,107 4.37 932,035 3.83 ---------
--------- Total interest-bearing liabilities 6,023,598 3.34
6,124,278 2.28 Noninterest-Bearing Liabilities and Shareholders'
Equity Noninterest-bearing demand 920,992 924,737 Other liabilities
85,182 84,084 Shareholders' equity 653,530 652,786 ---------
--------- Total liabilities and shareholders' equity $7,683,302
$7,785,885 ========= ========= Interest Spread 3.30% 3.56%
Contribution of noninterest bearing sources of funds 0.56 0.38 Net
Interest Income as a Percent of Earning Assets 3.86% 3.94%
--------------------------------------------------------------------------
(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. Nonperforming Assets Citizens Banking Corporation
and Subsidiaries Three Months Ended
------------------------------------------- Sep 30 Jun 30 Mar 31
Dec 31 Sep 30 (in thousands) 2006 2006 2006 2005 2005
-------------------------------------------------------------------------
Commercial(1) Commercial $8,440 $8,795 $10,594 $11,880 $14,457
Commercial real estate 7,835 4,956 5,219 5,068 5,720 -------
------- ------- ------- ------- Total commercial 16,275 13,751
15,813 16,948 20,177 Consumer: Direct 3,972 3,167 3,911 4,326 4,459
Indirect 781 904 569 2,454 962 Residential mortgage 10,536 8,179
7,396 8,412 9,929 Loans 90 days or more past due and still accruing
303 887 547 238 92 Restructured loans 391 406 1,844 --- 13 -------
------- ------- ------- ------- Total Nonperforming Loans 32,258
27,294 30,080 32,378 35,632 Other Repossessed Assets Acquired 7,767
7,472 6,397 7,351 6,984 ------- ------- ------- ------- -------
Total Nonperforming Assets $40,025 $34,766 $36,477 $39,729 $42,616
======= ======= ======= ======= =======
-------------------------------------------------------------------------
(1) Changes in commercial nonperforming loans (including
restructured loans) for the quarter (in millions): Inflows $7.5
$10.4 $9.8 $10.6 $9.9 Outflows (5.0) (13.9) (9.1) (13.8) (17.3)
------- ------- ------- ------- ------- Net change $2.5 $(3.5) $0.7
$(3.2) $(7.4) ======= ======= ======= ======= =======
-------------------------------------------------------------------------
Summary of Loan Loss Experience Citizens Banking Corporation and
Subsidiaries Three Months Ended
------------------------------------------- Sep 30 Jun 30 Mar 31
Dec 31 Sep 30 (in thousands) 2006 2006 2006 2005 2005
-------------------------------------------------------------------------
Allowance for loan losses - beginning of period $114,560 $115,423
$116,400 $118,626 $119,967 Provision for loan losses 1,190 1,139
3,000 (7,287) 4,000 Charge-offs: Commercial 597 854 921 2,068 1,912
Commercial real estate 585 606 616 912 1,965 ------- -------
------- ------- ------- Total commercial 1,182 1,460 1,537 2,980
3,877 Residential mortgage 252 305 198 519 182 Direct consumer 983
1,216 1,669 1,382 1,257 Indirect consumer 1,840 1,575 2,829 3,075
2,640 ------- ------- ------- ------- ------- Total charge-offs
4,257 4,556 6,233 7,956 7,956 ------- ------- ------- -------
------- Recoveries: Commercial 543 1,001 1,175 11,914 1,334
Commercial real estate 50 485 79 28 232 ------- ------- -------
------- ------- Total commercial 593 1,486 1,254 11,942 1,566
Residential mortgage 22 48 55 37 32 Direct consumer 485 332 285 329
370 Indirect consumer 483 688 662 709 647 ------- ------- -------
------- ------- Total recoveries 1,583 2,554 2,256 13,017 2,615
------- ------- ------- ------- ------- Net charge-offs 2,674 2,002
3,977 (5,061) 5,341 ------- ------- ------- ------- -------
Allowance for loan losses - end of period $113,076 $114,560
$115,423 $116,400 $118,626 ------- ------- ------- ------- -------
Reserve for loan commitments - end of period $2,976 $2,937 $2,684
$3,023 $3,023 ------- ------- ------- ------- -------
-------------------------------------------------------------------------
--------------------------------------------------------------------------
Three Months Ended September 30, 2006
------------------------------------------------- Commercial
Residential (in thousands) Commercial real estate mortgage
------------------------------------------------- Charge-offs:
Michigan $521 $418 $252 Wisconsin 68 167 --- Iowa 8 --- ---
----------- ----------- ----------- Total charge-offs 597 585 252
----------- ----------- ----------- Recoveries: Michigan 407 50 22
Wisconsin 132 --- --- Iowa 4 --- --- ----------- -----------
----------- Total recoveries 543 50 22 ----------- -----------
----------- Net charge-offs $54 $535 $230 =========== ===========
=========== -------------------------------------------------
Direct Indirect (in thousands) consumer consumer Total
------------------------------------------------- Charge-offs:
Michigan $850 $1,840 $3,881 Wisconsin 92 --- 327 Iowa 41 --- 49
----------- ----------- ----------- Total charge-offs 983 1,840
4,257 ----------- ----------- ----------- Recoveries: Michigan 415
483 1,377 Wisconsin 59 --- 191 Iowa 11 --- 15 -----------
----------- ----------- Total recoveries 485 483 1,583 -----------
----------- ----------- Net charge-offs $498 $1,357 $2,674
=========== =========== ===========
--------------------------------------------------------------------------
Nine Months Ended September 30, 2006
------------------------------------------------- Commercial
Residential (in thousands) Commercial real estate mortgage
------------------------------------------------- Charge-offs:
Michigan $1,786 $1,294 $656 Wisconsin 578 513 98 Iowa 8 --- 1
----------- ----------- ----------- Total charge-offs 2,372 1,807
755 ----------- ----------- ----------- Recoveries: Michigan 1,368
470 113 Wisconsin 1,340 135 8 Iowa 11 9 4 ----------- -----------
----------- Total recoveries 2,719 614 125 ----------- -----------
----------- Net charge-offs $(347) $1,193 $630 ===========
=========== ===========
------------------------------------------------- Direct Indirect
(in thousands) consumer consumer Total
------------------------------------------------- Charge-offs:
Michigan $3,178 $6,244 $13,158 Wisconsin 587 --- 1,776 Iowa 103 ---
112 ----------- ----------- ----------- Total charge-offs 3,868
6,244 15,046 ----------- ----------- ----------- Recoveries:
Michigan 883 1,833 4,667 Wisconsin 191 --- 1,674 Iowa 28 --- 52
----------- ----------- ----------- Total recoveries 1,102 1,833
6,393 ----------- ----------- ----------- Net charge-offs $2,766
$4,411 $8,653 =========== =========== =========== Visit our website
at http://www.citizensonline.com/ (Logo:
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DATASOURCE: Citizens Banking Corporation Web site:
http://www.citizensonline.com/
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