Citizens Takes CRE-Linked Charges

Citizens Republic Bancorp., Flint, Mich., has recorded a $180 million noncash goodwill impairment charge and a $47.1 million writedown related to deterioration in the credit quality of its commercial real estate portfolio. The company said the goodwill impairment stemmed from volatility in the financial industry and a decrease in its market capitalization to a level below tangible book value as well as the deterioration in its CRE portfolio. The writedown consists of the following fair-value adjustments: $38.5 million on $131.4 million of nonperforming CRE and residential mortgage loans; $2.7 million on $30.3 million of commercial loans held for sale; and $5.9 million on $37.6 million of commercial and residential repossessed assets. The company can be found on the Web at http://www.citizensbanking.com.