FLINT, Mich., (AFX) - Citizens Banking Corp., which operates banking centers in Michigan, Wisconsin and Iowa, said Thursday second-quarter net income rose nearly 2 percent, in line with analysts' predictions.
Citizens reported earnings of $20.9 million or 49 cents a share, versus profit of $20.6 million, or 47 cents a share for the same period last year.
Analysts surveyed by Thomson Financial forecast earnings of 49 cents a share.
Net interest income fell 4.1 percent to $66 million for the quarter, compared with $68.8 million last year. The bank said the drop came from a decline in net interest margin, lower average earning assets from a $251.1 million reduction in its investment portfolio, and fewer consumer loans.
Noninterest income rose 2.6 percent to $23.7 million, driven by increases in service charges on deposits and trust fees.
Citizens repurchased 80,000 shares of its stock during the quarter at an average price of $26.23, leaving more than 1.9 million shares to be purchased under a program approved in 2003.
Citizens also declared a cash dividend of 29 cents per share payable on Aug. 10, to shareholders of record on Aug. 1.
On June 27, Citizens said it planned to buy Republic Bancorp in a mostly stock deal worth about $1.05 billion, expected to close in the fourth quarter.
Citizens fell 79 cents, more than 3 percent, to close at $24.29 on the Nasdaq, near the low end of a 52-week range of $23.25 to $32.15. Republic Bancorp ended down 32 cents, over 2 percent, at $12.43.
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