Citizens Banking Corp. has announced it plans to charge off between $16 million and $18 million during the third quarter in connection with a recent merger and a pending department reorganization.
The charges will include $5.8 million for integration, consolidation, and administrative costs associated with Citizens' merger with CB Financial Corp., an $827 million-asset bank based in Jackson, Mich.
Citizens, a $4.3-billion-asset bank, also plans to write down $6.5 million of assets to cover goodwill and core deposit intangibles.
In addition to the $12.3 million total charged off in connection with the CB Financial deal, Citizens expects to incur between $4 million and $6 million in expenses to reorganize its information technology operations.
The company said it does not expect the charges to affect dividends. - Laura Pavlenko Lutton