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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 31, 1999
CITIZENS BANKING CORPORATION
(Exact name of Registrant as specified in its charter)
Michigan 0-10535 38-2378932
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
328 South Saginaw Street, Flint, Michigan 48502
(Address of principal executive offices)
Registrant's telephone number, including area code: (810)766-7500
N/A
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On August 31, 1999, Citizens Banking Corporation issued the press
release attached to this report as Exhibit 99.1 and incorporated herein by
reference, announcing that it has been the victim of an illegal check-kiting
scheme involving a bank customer and other parties.
The foregoing disclosure contains "forward-looking statements" within
the meaning of the Securities Act of 1933 and the Securities Exchange Act of
1934, both as amended, with respect to expectations for future periods. These
forward-looking statements involved are subject to risk and uncertainties that
could cause actual results to differ. These risks and uncertainties include
unanticipated changes in the competitive environment and relationships with
third party vendors and clients and certain other factors discussed in this
report. Management believes that the expectations used in the forward-looking
statements are reasonable, however, actual results may vary significantly.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
(c) Exhibits:
Ex. No. Description
99.1 Press Release issued August 31, 1999.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CITIZENS BANKING CORPORATION
/s/ Thomas W. Gallagher
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Dated: September 2, 1999 Thomas W. Gallagher, Secretary
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EXHIBIT INDEX
Ex. No. Description
- ------- -----------
99.1 Press Release issued August 31, 1999
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EXHIBIT 99.1
Citizens Banking Corporation
328 S. Saginaw Street
Flint, Michigan 48502-1943
(810) 766-7500
For Immediate Release Contact: Robert J. Vitito
Chairman, President and
Chief Executive Officer
(810) 766-7766
Thomas W. Gallagher
Senior Vice President and
General Counsel
(810) 766-7788
Traded: Nasdaq
Symbol: CBCF
August 31, 1999
CITIZENS BANKING CORPORATION
REPORTS FRAUD LOSS
Citizens Banking Corporation has determined that it has been the victim of an
illegal check-kiting scheme involving a bank customer and other parties. The
Corporation will take a one-time charge in the third quarter of 1999 of
approximately $3.9 million or $.14 per share, after tax.
We are vigorously pursuing legal remedies to recover the funds, but are
presently unable to quantify the ultimate amount of any recoveries or the timing
of such recoveries.
As a result of this illegal check-kiting scheme, we have taken quick action
where appropriate to further review and strengthen our procedures to prevent
similar future occurrences.
The Corporation has also decided to reduce the funding of a previously announced
charitable trust by $3.75 million ($2.4 million after tax) which along with
other management actions will lessen the impact of the fraud.
Citizens Banking Corporation is a diversified financial services company
providing a full range of commercial, consumer, mortgage banking, trust and
financial planning services to a broad client base. Citizens operates 123
branch, private banking, and financial center locations throughout Michigan and
in suburban Chicago, Illinois.
