1999 a record setter at Citizens
PROVIDENCE — Citizens Financial Group reports record operating income of $238 million for its fiscal year ending Sept. 30, 1999. Operating income increased 14 percent for the year, excluding a prior year $55.4 million pretax gain and related tax effect on the disposal of the bankcard portfolio. Prior year profits were $244.2 million, including the gain. For the quarters ended Sept. 30, 1999 and 1998, Citizens reported net income of $65.6 million and $93.7 million, respectively. Excluding the above-mentioned fourth quarter bankcard gain from 1998 results, operating earnings increased 12 percent over the prior year’s fourth quarter.
Citizens’ balance sheet grew to $20 billion at Sept. 30, 1999, up from $17.3 billion a year ago.
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Citizens enjoyed strong growth in its commercial loan and lease portfolios (28 percent) and consumer loan portfolios (22 percent). Deposits also increased, with significant growth in checking accounts (16 percent), savings accounts (8 percent), and checking with interest products (9 percent). Increasing profits generated by Citizens’ expanding balance sheet were partially offset by increases in non-interest expenses, primarily due to Y2K costs.
On Oct. 1, 1999, Citizens completed the purchase of State Street Bank’s commercial banking business, acquiring assets of $2.7 billion, which brought Citizens current balance sheet assets to $22.7 billion. The acquisition of UST Corp. Inc., expected to close in January 2000, will add assets of $5.9 billion, bringing the bank’s total assets to $28 billion.
To accommodate this growth, Citizens recently announced plans to open additional operations facilities in Cranston, and Medford, Massachusetts. These facilities are expected eventually to house 900 employees.
“This has been a tremendous year for Citizens,” said Lawrence K. Fish, chairman, president and chief executive officer of Citizens Financial Group. “Throughout 1999 we had substantial growth in our commercial, consumer and deposit businesses. This growth, combined with our acquisition of State Street’s commercial banking business and our expected acquisition of USTrust in the new year, has given us considerable momentum in the marketplace.”
In other news at Citizens, the bank was honored recently the by U.S. Small Business Administration, which named it the number one small business lender for the fifth year in a row.
Citizens Bank topped all Rhode Island SBA lenders in both number of loans and dollar amount with 230 loans totaling more than $24 million. In all, the Rhode Island SBA District Office had 641 loan approvals totaling $107,397,000 in fiscal year 1999.
Citizens Financial Group was also named the number one “New Market Lender” for the New England region. The SBA defines “New Market Lending” as loans to women, Native-Americans, African-Americans, Hispanics, Asians and veterans.
“We’ve earned the status of being the number one SBA lender in Rhode Island for the fifth year in a row by understanding the challenges small businesses face in today’s economic environment and because we can respond quickly to meet their unique needs,” said Mark J. Formica, Citizens’ vice chairman.
“To exceed $107 million in loans, $24 million attributable to Citizens alone, shows the value of SBA programs and the need for these programs in the community,” said Mark S. Hayward, the SBA’s Acting District Director.
Citizens Bank is a $6 billion subsidiary of Citizens Financial Group, Inc.
Fleet Trusts declare quarterly dividends
BOSTON — The Trustees of Fleet Capital Trust I, a Delaware business trust established by FleetBoston Financial, have declared a quarterly dividend of $.50 on its 8.00 percent Trust Originated Preferred Securities (SM). The securities are listed on the New York Stock Exchange. The dividends will be payable on Dec. 31, 1999 to holders of record on Dec. 15, 1999.
The Trustees of Fleet Capital Trust III, a Delaware business trust, declared a quarterly dividend of $.4406 on its 7.05 percent Trust Originated Preferred Securities (SM). The dividends will be payable on Dec. 31, 1999 to holders of record on Dec. 30, 1999.
Also, the Trustees of Fleet Capital Trust IV, a Delaware business trust, declared a quarterly dividend of $.4481 on its 7.17 percent Trust Originated Preferred Securities (SM). The dividends will be payable on Dec. 31, 1999 to holders of record on Dec. 30, 1999.
