Citizens Republic Looks to Keep Improving

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Earnings season is here once again. We're about a week in, but we've already seen some impressive numbers from banking behemoths JPMorgan Chase (NYSE: JPM  ) , Wells Fargo (NYSE: WFC  ) , Citigroup (NYSE: C  ) , and Bank of America (NYSE: BAC  ) . While these results are important to those of us that follow the banking sector, my interest lies in some of the smaller banks beyond the behemoths.

The latest regional bank to check in with earnings is Citizens Republic Bancorp (Nasdaq: CRBC  ) , which will be released after the market closes on Thursday. With that in mind, here are some things I will be watching for in the earnings release.

What analysts are expecting
Analysts are expecting a decrease in both revenue and earnings from the same quarter last year, with $76.1 million in revenue and $0.48 in earnings per share. It wasn't so long ago that Citizens Republic was coming off of 12 consecutive quarters of losses, but the bank has rebounded quite nicely. For example, 2010 losses totaled $314.6 million as the bank decided to write down millions in bad loans. Last year saw improvement, with only a $16.3 million loss. This year, analysts are expecting a return to profitability for the Michigan bank, expecting approximately $84.7 million in income.

Balance sheet improvement
Citizens Republic checked in as the best performing regional bank in 2011, and it is well on its way to repeat again in 2012. Over the past 12 months, the bank joined Regions Financial (NYSE: RF  ) and Synovus Financial (NYSE: SNV  ) in outperforming Apple (NASDAQ: AAPL  ) , returning over 150% in the process. For this to happen, Citizens Republic needs to continue to improve its asset quality by reducing nonperforming loans and increasing deposits. If it manages to do so, it could be one of the most exciting regional bank opportunities going forward.

What else to look for
In announcing a merger with FirstMerit (Nasdaq: FMER  ) in September, Citizens Republic has put away its "for sale" sign. That's may be a disappointment to regional banking favorite Huntington Bancshares (Nasdaq: HBAN  ) , which had been rumored to be a potential suitor. Citizens investors will now want to turn their focus to determining whether they want to cash in their chips, or stick around to become shareholders of the combined banks.

It seems that Citizens Republic will soon be off the market, but there still appears to be ample opportunity among smaller banks in the U.S. You can read about another small, under-the-radar bank that's been called one of The Stocks Only the Smartest Investors Are Buying. Learn about it, and more, in our exclusive free report. Just click here to keep reading.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2095555, ~/Articles/ArticleHandler.aspx, 10/28/2016 8:19:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
CRBC.DL $0.00 Down +0.00 +0.00%
Citizens Republic… CAPS Rating: ****
FMER $0.00 Down +0.00 +0.00%
FirstMerit CAPS Rating: ***
HBAN $10.75 Up +0.05 +0.47%
Huntington Bancsha… CAPS Rating: *****
RF $10.84 Up +0.09 +0.84%
Regions Financial CAPS Rating: ****
SNV $33.30 Up +0.17 +0.51%
Synovus Financial CAPS Rating: ****