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. McNeelyThanks, 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV