Citizens Banking to buy Republic for $1.05 billion

0 Comments | Deseret News (Salt Lake City), Jun 28, 2006

DETROIT (AP) -- Citizens Banking Corp. has agreed to buy Republic Bancorp Inc. for about $1.05 billion in cash and stock to form a new Midwestern regional bank called Citizens Republic Bancorp, the two Michigan-based companies said Tuesday.

The combined bank would be the 45th largest headquartered in the U.S., with assets of $13.9 billion and $8.6 billion in deposits, the companies said in a statement. Flint-based Citizens has $7.7 billion in assets, while Ann Arbor-based Republic has $6.2 billion, the companies say on their Web sites.

Citizens' share price took a dive on the announcement. It fell $2.37, or 8.8 percent, to close at $24.66 on the Nasdaq Stock Market. Republic's shares shot up $1.88, or 18 percent, to finish at $12.45.

The companies said they expect to close the deal in the fourth quarter of 2006, if regulators and shareholders approve.

"Republic's top-notch management team has built a solid, focused organization through consistent growth" since starting as a bank 21 years ago, Jerry D. Campbell, chairman and founder of Republic, said in a statement. "We're excited to join Republic with Citizens to create a leading Midwestern franchise."

The combination "enhances our core markets, sales culture, product capabilities and credit competencies as well as improves our presence in attractive, high-growth markets," said William R. Hartman, Citizens' chairman, president and chief executive.

Campbell will serve as chairman and Hartman as chief executive of Citizens Republic Bancorp, the companies said.