Citizens Bank in Transition

Is it time to abandon ship at Citizens Bank? Melissa Burden of The Flint Journal reports:

"John D. Schwab, executive vice president and chief credit officer, joined the company in November 2002 and oversaw the Flint-based bank holding company's credit approval and credit quality issues. He retires after 40 years in the banking business.

"Schwab's retirement follows the announcement late last month that Bill Hartman would retire as president and chief executive officer at the end of January and that Cathy Nash, who most recently headed regional banking for the company, was chosen to succeed Hartman."

The downward spiral of Citizens Republic Bancorp Inc. (CRBC) stock over the past three years.

Citizens Bank stock tanks

The stock performance of Citizens Republic Bancorp (CRBC) over the past five years reflects the troubled state of the overall banking system.

Flint's Citizens Bank is struggling.

Its stock, which was trading at more than $25/share at the beginning of the year, is barely north of $2, a victim of the the "deterioration in commercial real estate collateral values and continued challenges to the Midwest economy," according to a company statement.

Earlier this month, Dan Meisler of the Ann Arbor Business Review reported:

"Flint-based Citizens Republic Bancorp announced [June 5] a public offering of $200 million in securities to boost its capital position.

"That comes as the bank reports a $180 million "goodwill impairment" charge related to falling commercial real estate values, and a $47.1 million write-down on nonperforming commercial real estate and residential loans and repossessed assets.

"The bank said in its announcement that the additional capital from the stock offerings will help it 'remain focused on executing its strategic objectives and delivering long-term shareholder value as current economic and credit conditions improve.'"