Citizens Banking Corporation To Sell Illinois Franchise

Friday 2 April 2004 18:34 CET | News

Citizens Banking Corporation has signed a definitive agreement to sell its subsidiary - Citizens Bank-Illinois, N.A. - to Metropolitan Bank Group, of Chicago, Ill., in a cash transaction valued at $26,250,000.

Citizens, a $7.7 billion bank holding company, operates subsidiaries in Michigan, Wisconsin, Iowa and Illinois. Metropolitan Bank Group, a privately held company with assets of $2 billion, operates seven community banks with a total of 56 branches and more than 90 ATM locations in the Chicago area. Citizens Banking Corporation acquired Citizens Bank-Illinois in 1987. The subsidiary has three locations in Berwyn, Cicero, and Elk Grove, Ill. Citizens Bank-Illinois has approximately $84 million in loans, $167 million in deposits and total assets of $187 million (as of Feb. 29, 2004). Citizens Bank-Illinois employs a staff of 37. The sale is expected to close in the third quarter of 2004, subject to regulatory approval. Citizens expects to realize a gain of approximately $12 million on the sale, and anticipates re-deploying the proceeds into one or more strategic alternatives to achieve an equal or somewhat greater return. As such, the sale is anticipated to have a neutral to slightly positive impact on future earnings per share.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce