This Day On The Street
Continue to site
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

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

Core deposit balances increased 9% over last year and continued to represent an important component of our total funding. Core deposits now fund 56% of our balance sheet compared to 42% 2.5 years ago. Time deposits are down 24% from last year as we continue to strategically reduce high cost, single service and broker time deposits.

Our strategic focus on C&I and consumer lending led to another quarter of growth in these lines of business. Today, C&I and consumer loans make up 64% of our loan portfolio, up from 62% last quarter and 57% a year ago. Compared to the second quarter of last year, C&I balances have increased 27%, and Indirect portfolio balances are up over 6%.

As anticipated, income-producing commercial real estate and residential mortgage loan balances continued to decline. Now I'll turn the call over to Lisa and Mark to talk through the details -- the quarter in more detail for you. Lisa?

Lisa T. McNeely

Thanks, Cathy. As Cathy mentioned, we reported net income attributable to common shareholders for the quarter of $297 million, which includes a $277 million tax benefit from eliminating the valuation allowance against our deferred tax asset. Provision expense was $5 million in the second quarter, reflecting continued improvement in our credit metrics. The allowance as a percentage of the portfolio loans was 2.47% at the end of the quarter. With continued improvement in the risk profile of our loan portfolio, we would expect this ratio to gradually move into closer alignment with our peers throughout the remainder of the year.

Net interest margin was 3.6% in the second quarter, up 4 basis points compared to last quarter and the second quarter of last year. In this environment of low interest rates and increased competition for quality earning assets, we have expected the net interest income and margin to be pressured. This quarter, and for the last several quarters, we have been successful in executing balance sheet strategies to mitigate that pressure.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs