Fitch: Outlook Negative for Citizens Republic

The rating outlook for Citizens Republic Bancorp Inc. and its principal subsidiaries has been revised from Stable to Negative by Fitch Ratings, which cited increased losses and nonperforming loans related to a commercial real estate loan portfolio acquired from Republic Bancorp.CRBC has estimated that net chargeoffs in the second quarter will total $20-25 million, and it has announced a provision for loan losses of $30-35 million. The company reported that it detected "deterioration" in the commercial real estate loan portfolio in the second quarter and downgraded the risk rating of 180 CRE loans with outstanding balances of approximately $145 million. Fitch said nonperforming assets may increase further "if CRBC identifies additional credit concerns." The CRE loan portfolio was acquired from Republic Bancorp as a result of a merger in December 2006, the rating agency said. Fitch can be found on the Web at http://www.fitchratings.com.