This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Regional Bank Stock Best Bets From KBW

Citizens Republic Bancorp
Shares of Citizens Republic Bancorp of Flint Mich., closed at $15.87 Tuesday, returning a whopping 39% year-to-date, following a whopping 85% return during 2011.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

The shares underwent a 1-for-10 reverse split on July 5, 2011.

The company had $9.5 billion in total assets as of Dec. 30.

Citizens Republic owes $300 million in federal bailout funds received through the Troubled Assets Relief Program, or TARP, and has deferred its last eight quarterly dividends to the government. CEO Cathleen Nash said in a letter to shareholders on Feb. 29 that "we expect to pay the accrued dividends on our trust preferred and TARP obligations. We also continue to explore options to repay TARP in the most shareholder friendly way possible, though no firm timetable has been established to do so."

A big hope for the company's shareholders is its "deferred tax asset, which was valued at $311 million at year end," according to Nash. Now that the company has been profitable for three quarters, it is looking to "reverse the valuation allowance in 2012," with Nash estimating that "our current valuation allowance would have the effect of increasing our tangible common equity by over 76% as of December 31, 2011."

The shares trade for 1.6 times tangible book value, according to HighlineFI, and for 12.5 times the consensus 2013 earnings estimate of $1.27, among analysts polled by Thomson Reuters.

KBW on Wednesday raised its price target for Citizens Republic by a dollar to $16, while leaving its first-quarter EPS estimate of 30 cents, and its 2012 estimate of $1.15 unchanged. KBW raised its 2013 EPS estimate by a nickel to $1.40, "primarily due to our expectation for the company to raise common equity at a more attractive price when it exits TARP."

KBW's earnings estimates "assume the company raises $100 million of common equity at $16 per share (versus our previous estimate of $14), which represents approximately 85% of expected tangible book value .

Interested in more on Citizens Republic Bancorp? See TheStreet Ratings' report card for this stock.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs