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

Citizens Republic Bancorp's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: CRBC

I’ll now turn the call over to Lisa and Mark to talk through the quarter in more detail. Lisa?

Lisa McNeely

Thanks, Cathy. As Cathy mentioned, we reported net income attributable to common shareholders for the quarter of $19 million. Provision expense of $8 million in the first quarter was $6.6 million less than last quarter as our credit metrics continue to improve. As the risk profile of our loan portfolio continues to improve, we would expect our allowance for loan loss reserve coverage to continue to move into closer alignment with our peers over the coming quarters.

Net interest margin was 3.56% in the first quarter, down 6 basis points compared to last quarter and up 3 basis points from the first quarter of last year. As we’ve said in the past, we expected our margin to be pressured given the low interest rate environment and substantial competition for quality earning assets. We have been successful in mitigating the majority of that pressure by maintaining disciplined loan pricing, decreasing non-performing assets, and excess on-balance sheet liquidity, and reducing our cost of funds.

Since the first quarter of 2011, interest bearing deposit costs have been reduced by 29 basis points. Compared to the fourth quarter, we were able to reduce these costs by 8 basis points. Similarly, our overall cost of funds fell by 6 and 24 basis points over fourth quarter and first quarter of last year respectively.

The reductions in these costs are the result of our bankers’ continued focus on growing core deposits and consistently carrying out our client relationship pricing strategy. Non-interest income was consistent with last quarter at $24 million. Gains from loans held-for-sale offset decreases in service charges.

Service charge income was right in line with our expectations as first quarter transaction levels generally trend down from the fourth quarter. We had worked diligently to offset the negative regulatory impact on our fee income as our bankers work with clients to fully utilize our competitively priced products that meet our clients’ transaction needs. We continue to focus on services and products that help provide a stable base of fee income.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

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 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

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