Citizens Banking Corporation Announces Enhanced Trust Preferred Offering

FLINT, Mich., Sept. 29  /PRNewswire-FirstCall/ -- Citizens Banking Corporation ("Citizens") (NASDAQ:CBCF) announced today that Citizens Funding Trust I (the "Trust") priced an offering of $150.0 million aggregate liquidation amount of enhanced trust preferred securities.  The enhanced trust preferred securities are expected to be approved for listing on the New York Stock Exchange and to begin trading within 30 days of issuance.  Distributions on the securities, which represent undivided beneficial interests in the assets of the Trust, will accrue from the original issue date and will be payable quarterly in arrears at an annual rate of 7.50%.  The sale of the securities is expected to be completed on or about October 3, 2006, subject to customary closing conditions.  The proceeds from the offering will be used to finance the cash portion of the consideration to be paid in Citizens' previously announced merger with Republic Bancorp, Inc. and for general corporate purposes.

UBS Investment Bank, Morgan Stanley, Citigroup and Wachovia Securities are acting as joint bookrunning managers for the offering.  Keefe, Bruyette & Woods and Credit Suisse are co-managers.

Copies of the prospectus and the prospectus supplement are located on the Citizens website at http://www.citizensonline.com/ under the Investor Relations heading and SEC Filings selection and are also available by contacting the underwriters.

Corporate Profile

Citizens Banking Corporation 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 operates 182 branch, private banking, and financial center locations and 193 ATMs throughout Michigan, Wisconsin, and Iowa.  More information is available at http://www.citizensonline.com/ .

Citizens Funding Trust I is a Delaware statutory trust formed by Citizens Banking Corporation.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.

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DATASOURCE: Citizens Banking Corporation



CONTACT:  Charles D. Christy, Chief Financial Officer, [phone],

 , or Kathleen Miller, Investor Relations,

[phone],  , both of Citizens Banking

Corporation



Web site:  http://www.citizensonline.com/ 

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