FLINT, Mich., June 14, 2011 /PRNewswire/ -- Citizens Republic
Bancorp, Inc. (NASDAQ: CRBC) announced today a 1-for-10 reverse
stock split of Citizens common stock. Citizens anticipates the
reverse stock split will be effective after the close of trading on
July 1, 2011 and that Citizens common
stock will begin trading on a split adjusted basis on The NASDAQ
Capital Market at the opening of trading on July 5, 2011.
In determining the reverse stock split ratio, the Board of
Directors considered several factors including the NASDAQ continued
listing requirements, the historical trading price, volatility and
volume of the common stock, administrative convenience, simplicity,
and current market and economic conditions. In addition, the
Board believes that a higher stock price per share could result in
greater interest in Citizens common stock from institutional
investors, members of the financial community and the investing
public in general. As a result, the Board determined that it
would be in the shareholders' best interests to choose the 1-for-10
ratio rather than one of the lower alternatives approved by
shareholders.
When the reverse stock split becomes effective, every ten shares
of issued and outstanding Citizens common stock will be
automatically combined into one issued and outstanding share of
common stock. This will proportionately reduce the number of
outstanding shares of Citizens common stock from approximately
397.8 million to approximately 39.8 million and the number of
authorized shares from 1,050,000,000 to 105 million. Citizens
common stock will continue trading on The NASDAQ Capital Market
under the symbol "CRBC" but will trade under a new CUSIP
number.
Proportional adjustments will be made to Citizens' outstanding
options, warrants and other securities entitling their holders to
purchase or receive shares of Citizens common stock so that the
reverse stock split will not materially affect any of the rights of
holders of those securities. The number of shares available under
Citizens' equity-based plans will also be proportionately reduced.
No fractional shares will be issued in connection with the
reverse stock split. Following the completion of the reverse stock
split, shareholders who would otherwise hold a fractional share
will receive a cash payment in lieu of such fractional share based
on the closing price of Citizens common stock on the effective date
of the reverse stock split (adjusted for the reverse split).
Additional information on the treatment of fractional shares
and other effects of the reverse split can be found in Citizens'
definitive proxy statement filed with the Securities and Exchange
Commission on April 4, 2011.
Shareholders do not need to take action at this time.
Citizens' transfer agent, American Stock Transfer and Trust
Company, will distribute a letter of transmittal to shareholders
with certificated shares with instructions for surrendering old
stock certificates.
Corporate Profile
Citizens Republic Bancorp, Inc. is a diversified financial
services company providing a wide range of commercial, consumer,
mortgage banking, trust and financial planning services to a broad
client base. Citizens serves communities in Michigan, Ohio, Wisconsin and Indiana with 220 offices and 249 ATMs.
Citizens Republic Bancorp is the largest bank holding company
headquartered in Michigan with
roots dating back to 1871 and is the 55th largest bank
holding company headquartered in the
United States. More information about Citizens
Republic Bancorp is available at www.citizensbanking.com.
SOURCE Citizens Republic Bancorp, Inc.