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Citizens Republic Bancorp Issues $300 Million in Preferred Stock to the U.S. Treasury Through the Capital Purchase Program

December 15, 2008 | About:
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Press Release: Citizens Republic Bancorp Issues $300 Million in Preferred Stock to the U.S. Treasury Through the Capital Purchase Program

CITIZENS BANKING CORP. (MI) is a multibank holding company offering a variety of financial services to corporate commercial correspondent and individual bank customers. These services include commercial mortgage and consumer lending demand and time deposits trust services investment services safe deposit facilities and other financial products and services. Citizens Republic Bancorp Inc. has a market cap of $286.05 million; its shares were traded at around $2.33 with a P/E ratio of 25.22 and P/S ratio of 0.31. Citizens Republic Bancorp Inc. had an annual average earning growth of 1.5% over the past 5 years.

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Press Release:



FLINT, Mich., Dec. 15 /PRNewswire-FirstCall/ -- Citizens Republic Bancorp,Inc. (Nasdaq: CRBC) announced today that on December 12, 2008 it issued300,000 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, SeriesA, ("preferred stock") to the U.S. Department of the Treasury ("Treasury) aspart of the Treasury's Capital Purchase Program. The aggregate value oftransaction is $300 million. In addition, Citizens issued a ten-year warrantto the Treasury to purchase up to 17,578,125 shares of Citizens' common stock,no par value, at an exercise price of $2.56 per share. The preferred stockand warrants will be treated as additions to Citizens' regulatory Tier 1 andTotal capital and will increase Citizens' already strong Tier 1 capital ratiofrom 10.88% at September 30, 2008 to approximately 13.85% on a pro formabasis. (Logo: http://www.newscom.com/cgi-bin/prnh/20050421/DETH014LOGO ) "We are pleased to participate in this program and believe it represents avote of confidence in Citizens. The additional capital gives us flexibilityto continue to support our customers' borrowing needs in this demandingeconomic environment and to continue to support growth in the communities weserve," said William R. Hartman, chairman, president and chief executiveofficer. The preferred stock has no par value, will carry a liquidation price of$1,000 per share, and will pay cumulative dividends at a rate of 5% per yearfor the first five years and 9% per year thereafter. Citizens cannot redeemthe preferred securities during the first three years after issuance exceptwith the proceeds from a "qualified equity offering." Any redemption, eitherbefore three years or thereafter, will be at the liquidation price and willrequire Federal Reserve approval. Corporate Profile Citizens Republic Bancorp is a diversified financial services companyproviding a wide range of commercial, consumer, mortgage banking, trust andfinancial planning services to a broad client base. Citizens servescommunities in Michigan, Ohio, Wisconsin, and Indiana as Citizens Bank and inIowa as F&M Bank, with 233 offices and 264 ATMs. Citizens Republic Bancorp isthe largest bank holding company headquartered in Michigan with roots datingback to 1871 and the 43rd largest bank holding company headquartered in theUnited States. More information about Citizens Republic Bancorp is availableat www.citizensbanking.com. Safe Harbor Statement Discussions and statements in this release that are not statements ofhistorical fact, including statements that include terms such as "will,""may," "should," "believe," "expect," "anticipate," "estimate," "project,""intend," and "plan," including without limitation future financial andoperating results, plans, objectives, expectations and intentions and otherstatements that are not historical facts, are forward-looking statements thatinvolve risks and uncertainties. Any forward-looking statement is not aguarantee of future performance and actual results could differ materiallyfrom those contained in the forward-looking information. Factors and other risks and uncertainties that could cause the actualresults to differ are detailed from time to time in Citizens' filings with theSEC, which are available at the SEC's web site www.sec.gov. Other factors notcurrently anticipated may also materially and adversely affect Citizens'results of operations, cash flows and financial position. There can be noassurance that future results will meet expectations. While Citizens believesthat the forward-looking statements in this release are reasonable, you shouldnot place undue reliance on any forward-looking statement. In addition, thesestatements speak only as of the date made. Citizens does not undertake, andexpressly disclaims any obligation to update or alter any statements, whetheras a result of new information, future events or otherwise, except as requiredby applicable law.


Source: PRNewsWire

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