Citizens Republic Bancorp, Inc Management Discusses Q2 2012 Results - Earnings Call Transcript

During this conference call, statements may be made that are not historical facts, such as those regarding Citizens’ future financial and operating results, plans, objectives, expectations and intentions. Such forward-looking statements are subject to risks and uncertainties, which include but are not limited to, those discussed in Citizens’ annual and quarterly reports filed with the SEC.

Forward-looking statements are not guarantees of future performance and actual results could differ materially. These forward-looking statements reflect management’s judgment as of today, and we expressly disclaim any obligation to update or revise information contained in these statements in the future.

Now I'll turn the call over to our President and Chief Executive Officer, Cathy Nash. Cathy?

Cathleen H. Nash

Thank you, Kristine. We are very pleased to report another quarter of strong results that reflect our continued success in executing on key strategic initiatives. We achieved another important milestone this quarter with the reversal of the valuation against our deferred tax asset or DTA. We were able to restore the DTA due to the strong financial condition of our bank and expectations that we will be able to fully utilize the asset in the future.

Net income attributable to common shareholders for the second quarter was $297 million or $7.35 per share, which includes the $277 million tax benefit from restoring the DTA. Excluding that tax benefit, we reported continued solid results with net income of $20 million or $0.50 per share for the quarter and pretax pre-provisioned profit of $32 million.

Our continued improvements in credit quality metrics led to reduced credit cost again this quarter with provision expense dropping by 37% compared to last quarter. Net interest margin expanded 4 basis points compared to last quarter, reflecting our success in executing our strategic balance sheet initiative. And Lisa will talk more about that in just a moment.

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