Exhibit 99.1

For Immediate Release		CONTACT:		Charles D. Christy
				Chief Financial Officer
				(810) 237-4200
				Charlie.Christy@cbcf-net.com
		CONTACT:		Kathleen Miller
				Investor Relations
				(810) 257-2506
				Kathleen.Miller@cbcf-net.com
		TRADED:		NASDAQ
		SYMBOL:		CBCF

October 20, 2005

CITIZENS BANKING CORPORATION
ANNOUNCES THIRD QUARTER 2005 RESULTS

FLINT, MICHIGAN -— Citizens Banking Corporation announced net income of $21.0 million for the three months ended September 30, 2005. This represents an increase of $0.4 million or 2.1% over the second quarter of 2005 net income of $20.6 million and an increase of $1.3 million or 6.9% over the third quarter of 2004 net income of $19.6 million. Diluted net income per share was $0.48, compared with $0.47 for the second quarter of 2005 and $0.45 for the same quarter of last year. Annualized returns on average assets and average equity during the third quarter of 2005 were 1.06% and 12.71%, respectively, compared with 1.06% and 12.62% for the second quarter of 2005 and 1.02% and 12.27% for the third quarter of 2004.

Net income for the first nine months of 2005 totaled $61.6 million or $1.41 per diluted share, which represents an increase in net income of $5.8 million or 10.4% and $0.13 per diluted share over the same period of 2004.

“We’re pleased to report another quarter of quality earnings growth in a challenging interest rate environment,” stated William R. Hartman, chairman, president and CEO. “Once again, our results were driven by solid loan growth with disciplined expense management,” continued Hartman.

Key Highlights in the Quarter:

•

Commercial and commercial real estate loans grew by $31.8 million or 1.1% from June 30, 2005 and $171.6 million or 6.1% from September 30, 2004 due to continued strong growth in our Southeast Michigan market, continued focus on the sales management process and several new relationships in key Michigan and Wisconsin markets.

•

Net charge-offs increased to $5.3 million in the third quarter of 2005 compared with $2.4 million in the second quarter of 2005 and $5.0 million in the third quarter of 2004. The net charge-offs in the third quarter of 2005 included $1.3 million related to the sale of nonperforming commercial loans with a balance of $6.7 million. The higher net charge-off level was reflected in the third quarter of 2005 provision for loan losses of $4.0 million, which was $2.6 million or 186.5% higher than the second quarter of 2005.

•

Nonperforming assets decreased $6.4 million or 13.1% from the second quarter to $42.6 million at September 30, 2005 and the nonperforming asset ratio improved to 0.76%, its lowest level in four years, from 0.89% at June 30, 2005. The decrease reflects the sale of nonperforming commercial loans, which was partially offset by an increase in repossessed assets and nonperforming consumer loans.

Balance Sheet

Citizens’ total assets at September 30, 2005 were $7.9 billion, an increase of $25.4 million or 0.3% compared with June 30, 2005 and an increase of $191.9 million or 2.5% from September 30, 2004. The increases were due to growth in total portfolio loans, the effect of which was partially offset by declines in the investment portfolio. Portfolio loans increased $46.0 million or 0.8% compared with June 30, 2005 and $265.8 million or 5.0% compared with September 30, 2004 as a result of growth in both consumer and commercial loans.

Commercial and commercial real estate loans increased $31.8 million or 1.1% at September 30, 2005 compared with June 30, 2005 and increased $171.6 million or 6.1% from September 30, 2004. The increases were a result of continued strong growth in the Southeast Michigan market, increased focus on the sales management process and several new relationships in key Michigan and Wisconsin markets, which were partially offset by a continued reduction of exposure on credits not meeting Citizens’ risk parameters, including the third quarter 2005 nonperforming loan sale, and normal competitive pressures.

Residential mortgage loans were $532.0 million at September 30, 2005, an increase of $7.2 million or 1.4% compared with June 30, 2005 and an increase of $29.2 million or 5.8% from September 30, 2004. The increases in the mortgage portfolio were the result of enhanced, more competitive adjustable-rate mortgage (ARM) product offerings, which are desirable for the bank to hold in the portfolio. Citizens continues to sell most new fixed rate production into the secondary market while retaining most new ARM production.

Total consumer loans, which are comprised of direct and indirect loans, were essentially unchanged from June 30, 2005 and increased $65.1 million or 3.3% over September 30, 2004. The growth over September 30, 2004 was the result of numerous marketing campaigns throughout the last twelve months. During the three month period ended September 30, 2005, direct consumer loans decreased $15.3 million or 1.3% and indirect loans increased $22.3 million or 2.6%. The decline in direct consumer loans was the result of not running a loan campaign during the last three months and weaker consumer demand in Citizens’ markets. The growth in indirect consumer loans was due to seasonality in marine and recreational vehicle volume as well as the bank’s continued emphasis on strong relationships with the dealer network.

Total deposits were $5.2 billion at September 30, 2005, essentially unchanged from June 30, 2005 and September 30, 2004. Core deposits, which exclude all time deposits, totaled $3.3 billion at September 30, 2005, a decrease of $62.8 million or 1.8% from June 30, 2005 and a decrease of $313.5 million or 8.6% from September 30, 2004. The decreases in core deposits were largely the result of clients migrating their funds into time deposits with higher yields and to promotional rate products within the market. Time deposits totaled $1.9 billion at September 30, 2005, an increase of $88.5 million or 4.9% compared with June 30, 2005 and an increase of $272.7 million or 17.0% from September 30, 2004. The increases in time deposits were partially due to an increase in brokered funds.

Other interest-bearing liabilities, which include federal funds purchased and securities sold under agreements to repurchase, other short-term borrowings, and long-term debt, were $1.9 billion at September 30, 2005, essentially unchanged from June 30, 2005 and an increase of $208.7 million or 12.4% from September 30, 2004. The increase was the result of Citizens’ response to the aforementioned loan and deposit changes.

Credit Quality

Nonperforming assets totaled $42.6 million at September 30, 2005, a decrease of $6.4 million or 13.1% compared with June 30, 2005 and a decrease of $9.8 million or 18.6% compared with September 30, 2004. Nonperforming assets at September 30, 2005 represented 0.76% of total loans plus other repossessed assets acquired compared with 0.89% at June 30, 2005 and 0.99% at September 30, 2004. Nonperforming commercial loan inflows decreased to $9.9 million in the third quarter of 2005 compared with $21.1 million in the second quarter of 2005 and $22.3 million in the third quarter of 2004 while outflows totaled $17.3 million for the third quarter of 2005 compared with $17.5 million in the second quarter of 2005 and $29.4 million in the third quarter of 2004. Nonperforming assets at September 30, 2005 reflect a sale of nonperforming commercial loans with a balance of $6.7 million.

Net charge-offs increased to $5.3 million or 0.38% of average portfolio loans in the third quarter of 2005 compared with $2.4 million or 0.17% of average portfolio loans in the second quarter of 2005 and $5.0 million or 0.38% of average portfolio loans in the third quarter of 2004. The third quarter net charge-offs included $1.3 million related to the sale of non performing commercial loans referenced above. The third quarter net charge-offs also included a $0.7 million charge-off on a large participated credit, an increase of $1.2 million in consumer loan charge-offs due to the seasonally low level in the second quarter of 2005 and an earlier than anticipated build-up of repossessed assets.

The provision for loan losses increased to $4.0 million in the third quarter of 2005 compared to $1.4 million in the second quarter of 2005 and decreased from $5.0 million in the third quarter of 2004. The increase in the provision over the second quarter reflects the higher net charge-off level as a result of the nonperforming commercial loan sale. The reduction in the provision for loan losses compared with the prior year reflects a continued improvement in the overall risk of the portfolio.

As a result of the changes in net charge-offs and provision for loan losses, the allowance for loan losses totaled $118.6 million or 2.13% of portfolio loans at September 30, 2005, a decrease of $1.3 million and $3.6 million from June 30, 2005 and September 30, 2004, respectively.

Based on seasonal business trends, anticipated improvement due to the recent nonperforming loan sale, and the overall risk in the loan portfolio, Citizens anticipates net charge-offs and provision expense in the fourth quarter to be lower than the third quarter of 2005.

Net Interest Margin and Net Interest Income

Net interest margin was 3.93% for the third quarter of 2005 compared with 3.92% for the second quarter of 2005 and 4.02% for the third quarter of 2004. The increase in net interest margin compared with the second quarter of 2005 resulted from an improvement in commercial loan interest income, largely offset by shifts within the deposit portfolio from lower cost savings and transaction products to time deposits and continued pressure on loan spreads. The improvement in commercial loan interest income was due to loan exit fees and recovered interest, which positively impacted the third quarter net interest margin percentage by two basis points. The decrease in net interest margin compared with the third quarter of 2004 was due to growth in higher yielding deposit products and pricing compression in commercial loans, partially offset by a shift in asset mix from investment securities to higher yielding commercial loans. For the nine months ended September 30, 2005, net interest margin declined to 3.94% compared with 4.00% for the same period of 2004 as a result of the aforementioned changes.

Net interest income was $69.6 million in the third quarter of 2005 compared with $68.8 million in the second quarter of 2005 and $69.3 million in the third quarter of 2004. The increase in net interest income compared with the second quarter of 2005 was driven by a higher net interest margin and growth in average earning assets. The slight increase compared with the third quarter of 2004 resulted from an increase in average earning assets, partially offset by a lower net interest margin. The earning asset increases were driven by growth in consumer and commercial loans outpacing declines in the securities portfolio.

Net interest income for the first nine months of 2005 totaled $206.7 million, essentially unchanged from the same period of 2004. The lower net interest margin was substantially offset by the effect of a $109.1 million increase in earning assets.

In the fourth quarter of 2005, Citizens anticipates net interest income will be slightly lower than the third quarter of 2005 as a result of anticipated margin compression and slightly lower investment portfolio balances.

Noninterest Income

Noninterest income for the third quarter of 2005 was $23.9 million, an increase of $0.8 million or 3.4% from the second quarter of 2005 and a decrease of $11.1 million or 31.8% from the third quarter of 2004. The increase from the prior quarter was due to increases in deposit service charges, mortgage and other loan income, and other income, which were partially offset by decreases in brokerage and investment fees. Compared to the same period of 2004, the decline was primarily the result of the $11.7 million gain on the sale of the Illinois bank in the third quarter of 2004. For the first nine months of 2005, noninterest income totaled $69.5 million, a decrease of $10.8 million or 13.5% from the $80.4 million in same period of 2004. The variance from the prior year was primarily the result of the aforementioned sale of the Illinois bank, partially offset by the $1.6 million net loss on sale of securities during 2004.

Deposit service charges for the third quarter of 2005 increased $0.5 million or 5.9% to $9.3 million compared with the second quarter of 2005 and increased $0.1 million or 1.6% from the third quarter of 2004. The increases were the result of higher transaction activity and continued focus on fee waiver management. For the first nine months of 2005, deposit service charges totaled $26.5 million, essentially unchanged from the same period of the prior year.

Trust fees for the third quarter of 2005 were essentially unchanged from the second quarter of 2005 and increased $0.3 million or 7.6% to $4.5 million compared with the third quarter of 2004. For the first nine months of 2005, trust fees totaled $13.5 million, an increase of $0.4 million or 3.0% from the same period of 2004. The increases were attributable to stronger financial markets, continued execution of the sales management process and improved pricing discipline, partially offset by attrition. Total trust assets under administration of $2.6 billion at September 30, 2005 were essentially unchanged from June 30, 2005 and decreased $41.5 million compared with September 30, 2004. The decline in trust assets from September 30, 2004 was due to the reduction of two institutional relationships and the exit of custody assets related to two relationships during the periods presented. The effect of these exits was

partially offset by stronger financial markets at September 30, 2005 and continued growth in the bank’s core segments of investment management and employee benefit plans.

Mortgage and other loan income for the third quarter of 2005 increased $0.4 million or 18.1% to $2.5 million compared with the second quarter of 2005 and increased $0.7 million or 40.0% from the third quarter of 2004. The increases reflect better execution of secondary market sales. For the first nine months of 2005, mortgage and other loan income totaled $6.9 million, a decrease of $0.2 million or 2.4% from the same period of the prior year. The decline was a result of lower letter of credit fees.

Brokerage and investment fees for the third quarter of 2005 decreased $0.3 million or 13.6% to $2.0 million compared with the second quarter of 2005 and increased $0.3 million or 14.9% compared with the third quarter of 2004. The decrease was due to a successful sales campaign in the second quarter of 2005. The increase from the third quarter of 2004 was due to improved consultative selling efforts coordinated between the Wealth Management and Consumer Banking lines of business. For the first nine months of 2005, brokerage and investment fees totaled $5.9 million, a decrease of $0.3 million or 4.8% from the same period of 2004. The decline was the result of lower fixed annuity sales in 2005, primarily related to a bonus annuity rate offered during the second quarter of 2004, and the current interest rate environment.

For the third quarter of 2005, all other noninterest income categories, which include bankcard fees, gain on the sale of the Illinois bank subsidiary, other income, and investment securities gains (losses), increased $0.2 million or 3.1% to $5.6 million over the second quarter of 2005 and decreased $12.6 million or 69.0% from the third quarter of 2004. The increase from the second quarter of 2005 was the result of $0.4 million in income related to Citizens’ parent company’s venture capital investment in a limited partnership, which began in 1998, pursuing early stage investment opportunities in technology-driven businesses located in the Midwestern United States. The decrease from the third quarter of 2004 was primarily the result of three events that occurred during the third quarter of 2004: the $11.7 million gain on the sale of the Illinois bank, the $0.5 million gain on the sale of securities, and the income recorded in connection with the aforementioned venture capital investment. For the first nine months of 2005, all other noninterest income categories totaled $16.9 million, a decrease of $10.9 million or 39.3% from the same period of 2004. The decrease was largely the result of the aforementioned third quarter 2004 events and the sale of former branch and other bank premises during 2004, partially offset by a net loss on the sale of securities during 2004 of $1.6 million and several previously disclosed payments from third-parties received in the first and second quarters of 2005 totaling $1.0 million.

Citizens anticipates total noninterest income in the fourth quarter will be relatively consistent with or slightly lower than the third quarter of 2005 due to lower seasonal activity in deposit service charges, lower mortgage volume, and lower income related to the venture capital investment, partially offset by higher trust fees.

Noninterest Expense

Noninterest expense for the third quarter of 2005 was $60.6 million, a decrease of $0.4 million or 0.7% compared to the second quarter of 2005 and a decrease of $18.4 million or 23.3% from the third quarter of 2004. The decrease from the second quarter of 2005 was due to decreases in occupancy, equipment, data processing services, and other loan expenses, which were partially offset by increases in salaries, employee benefits, and professional services. The variance from the third quarter of 2004 was primarily a result of the $18.0 million prepayment penalty on high cost Federal Home Loan Bank (“FHLB”) debt incurred in the third quarter of 2004 and decreases in equipment, advertising and public relations, and other expenses, partially offset by increases in salaries and employee benefits, occupancy, professional services, and other loan expenses. For the first nine months of 2005, noninterest expenses totaled $182.1 million, a decrease of $19.5 million or 9.7% from $201.7 million for the same period of 2004. This decrease reflects the aforementioned FHLB prepayment penalty and declines in advertising and public relations, other loan expense, and other expenses, partially offset by increases in salaries and employee benefits, occupancy, and equipment.

Salaries and employee benefits for the third quarter of 2005 increased $1.7 million or 5.3% to $34.1 million compared with the second quarter of 2005 and increased $1.4 million or 4.3% compared with the third quarter of 2004. In total, salary costs increased as a result of higher stock-related compensation, higher incentive payouts, and one additional business day in the third quarter of 2005. Salary costs included $0.4 million in severance for each of the second and third quarters of 2005 and $0.2 million in the third quarter of 2004. Benefits increased as a result of higher health insurance and payroll taxes. Citizens had 2,144 full time equivalent employees at September 30, 2005, essentially unchanged from June 30, 2005 and down from 2,260 at September 30, 2004. For the first nine months of 2005, salaries and employee benefits totaled $99.8 million, an increase of $2.0 million or 2.0% from the $97.8 million for the same period of 2004. The increase was largely a result of higher incentive payouts, higher employee

benefit costs related to pension and insurance expenses, and personnel increases in Citizens’ Southeast Michigan market.

Occupancy costs for the third quarter of 2005 decreased $0.4 million or 7.6% to $5.3 million compared to the second quarter of 2005. The decrease was primarily a result of additional rental costs during the second quarter of 2005. Occupancy costs increased $0.4 million or 8.1% over the third quarter of 2004. For the first nine months of 2005, occupancy costs totaled $16.5 million, which represents a $1.4 million increase or 9.1% over the $15.1 million for the same period of 2004. These increases were largely the result of building rent and depreciation expenses related to the new branches and regional hubs opened in Southeast Michigan throughout 2004 and 2005, and the Michigan and Wisconsin re-branding projects.

Professional services for the third quarter of 2005 increased $0.8 million or 21.2% to $4.5 million compared with the second quarter of 2005 and increased $0.4 million or 9.3% compared with the third quarter of 2004. The increases were primarily the result of higher consulting fees associated with several initiatives targeted at developing corporate strategies to produce enhanced profitability and revenue momentum, enhancing overall corporate risk management and ensuring regulatory compliance. For the first nine months of 2005, professional services totaled $12.4 million, essentially unchanged from the same period of 2004.

Equipment costs for the third quarter of 2005 decreased $1.8 million or 36.5% to $3.1 million compared to the second quarter of 2005 and decreased $0.4 million or 10.2% compared with the third quarter of 2004. For the first nine months of 2005, equipment costs totaled $11.4 million, an increase of $0.6 million or 5.3% over the same period of 2004. These variances were primarily due to $1.5 million in additional depreciation during the second quarter of 2005 as a result of aligning the service life for these items with the current capitalization policy.

Advertising and public relations expense for the third quarter of 2005 decreased $0.1 million or 5.7% compared to the second quarter of 2005 and decreased $0.4 million or 17.8% compared with the third quarter of 2004. For the first nine months of 2005, advertising and public relations totaled $5.3 million, a decrease of $1.0 million or 15.8% from the same period of 2004. The decreases were the result of reduced advertising and marketing expenses associated with the Southeast Michigan initiative.

Other loan expenses for the third quarter of 2005 decreased $0.2 million or 17.6% to $0.7 million compared to the second quarter of 2005 and increased $0.3 million or 87.6% compared with the third quarter of 2004. The variance for both periods was the result of provisioning to fund the reserve for unused loan commitments, which fluctuates with the amount of unadvanced customer lines of credit. For the first nine months of 2005, other loan expenses totaled $2.0 million, a decrease of $1.2 million or 37.4% from the $3.1 million for the same period of 2004. The decrease was primarily the result of lower consumer loan volumes and process improvements implemented in the consumer loan processing department during the third quarter of 2004.

For the third quarter of 2005, all other noninterest expense categories, which include data processing services, postage and delivery, telephone, stationery and supplies, intangible asset amortization, prepayment penalty on FHLB advances, and other expenses, decreased $0.4 million or 3.9% to $11.1 million from the second quarter of 2005 and decreased $20.2 million or 64.5% from the third quarter of 2004. The decrease from the second quarter of 2005 was the result of lower telecommunication and data processing expenses. The decrease from the third quarter of 2004 was primarily a result of the $18.0 million prepayment penalty on high cost FHLB debt and certain tax related reconciliation items incurred in the third quarter of 2004. For the first nine months of 2005, all other noninterest expense categories decreased $21.4 million or 38.1% to $34.8 million compared to the same period of 2004. The decrease was the result of the aforementioned FHLB prepayment penalty and reconciliation items as well as reduced supply costs due to the 2005 implementation of an online supplies procurement system that improved awareness of these expenses.

Citizens anticipates that noninterest expenses for the fourth quarter will be lower than the third quarter of 2005 due to anticipated reductions in benefits, professional services, and other expenses.

Income Tax Provision

Income tax provision for the third quarter of 2005 was $8.0 million, a decrease of $0.9 million or 10.4% compared to the second quarter of 2005 and an increase of $7.3 million over the third quarter of 2004. For the first nine months of 2005, income tax provision totaled $24.0 million, an increase of $10.7 million or 80.7% over the same period of 2004. The increases were attributable to higher pre-tax income, a $1.3 million ($0.8 million after-tax) reduction in the deferred Wisconsin state income tax asset as a result of the April 2005 merger of the Michigan and Wisconsin bank charters and the third quarter 2004 tax benefit from the Illinois bank sale.

The effective tax rate was 27.70% for the third quarter of 2005 compared to 30.38% for the second quarter of 2005 and 3.82% for the third quarter of 2004. On a year-to-date basis, the effective tax rate was 28.05% and 19.24% for 2005 and 2004, respectively. The increases were a result of the aforementioned Wisconsin deferred tax asset release and the Illinois bank sale.

Citizens anticipates that the income tax provision for the fourth quarter will be consistent with the third quarter of 2005.

Other News

New Branch Facility in Southeast Michigan

A newly constructed branch featuring distinctive architecture was opened in September. This facility replaces a temporary structure located at our Novi hub office near 12 Mile and Haggerty. Some of the unique features of the new branch include: Business X-Press teller area to accommodate commercial clients, e-teller offering clients an alternate banking source, web-based self-service banking area, and client-focused information presented via state-of-the-art plasma screens.

Citizens Bank Contributes $50,000 to the American Red Cross Hurricane Katrina Disaster Relief

As previously announced on September 15, 2005, Citizens contributed $50,000 to the American Red Cross Hurricane Katrina disaster relief efforts. The company also matched contributions made by its employees through October 16, 2005, which totaled $17,668. The company encouraged the public to donate as well and arranged to accept checks payable to the American Red Cross at its Citizens Bank and F&M Bank locations through October 16, 2005.

Stock Repurchase Program

During the third quarter of 2005, Citizens repurchased a total of 288,000 shares of its stock at an average price of $29.98. As of September 30, 2005 there are 2,376,200 shares remaining to be purchased under the program approved by the company’s Board of Directors on October 16, 2003.

Dividend Announcement

The Board of Directors of Citizens Banking Corporation declared a cash dividend of $0.285 per share of common stock. The dividend is payable on November 11, 2005, to shareholders of record on November 2, 2005.

Investor Conference Call

William R. Hartman, chairman, president and CEO, Charles D. Christy, CFO, John D. Schwab, chief credit officer, and Martin E. Grunst, treasurer, will review the quarter’s results in a conference call for investors and analysts beginning at 10:00am EDT on Friday, October 21, 2005.

A live audio webcast is available at http://www.vcall.com/CEPage.asp?ID=95379 To participate in the conference call, please call the number below approximately 10 minutes prior to the scheduled conference time: US/Canada Dial-In Number: (877) 407-9205 International Dial-In Number: (201) 689-8054 Conference ID: 170724 Conference Name: “Citizens Banking Corporation 3rd Quarter Earnings Conference Call” R.S.V.P. is not required.

A playback of the conference call will be available after 12:00pm EDT through November 4, 2005, by dialing US/Canada Dial-In Number: (877) 660-6853 or International Dial-In Number: (201) 612-7415, Account Number: 286, Conference ID: 170724. Also, the call can be accessed via Citizens’ Web site, through the Investor Relations section at http://www.citizensonline.com

Corporate Profile

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 182 branch, private banking, and financial center locations and 190 ATMs throughout Michigan, Wisconsin, and Iowa.

Safe Harbor Statement

Discussions in this release that are not statements of historical fact (including statements that include terms such as “will” “may,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” and “plan”) are forward-looking statements that involve risks and uncertainties, and Citizens’ actual future results could materially differ from those discussed. Factors that could cause or contribute to such differences include, without limitation, adverse changes in Citizens’ loan and lease portfolios and the resulting credit risk-related losses and expenses (including losses due to

fraud and economic factors), Citizens’ future lending and collections experience and the potential inadequacy of Citizens’ loan loss reserves, interest rate fluctuations and the effects on net interest income of changes in Citizens’ interest rate risk position, the potential inability to hedge certain risks economically, other adverse changes in economic or financial market conditions, the effects of terrorist attacks and potential attacks, Citizens’ potential inability to continue to attract core deposits, Citizens’ potential inability to continue to obtain third party financing on favorable terms, adverse changes in competition and pricing environments, Citizens’ potential failure to maintain or improve loan quality levels and origination volume, unanticipated expenses and payments relating to litigation brought against Citizens from time to time, unanticipated technological changes that require major capital expenditures, adverse changes in applicable laws and regulatory requirements, the potential lack of market acceptance of Citizens’ products and services, adverse changes in Citizens’ relationship with major customers, changes in accounting and tax rules and interpretations that negatively impact results of operations or capital, the potential inadequacy of Citizens’ business continuity plans, the potential failure of Citizens’ external vendors to fulfill their contractual obligations to Citizens, Citizens’ potential inability to integrate acquired operations, unanticipated environmental liabilities or costs, impairment of the ability of the banking subsidiaries to pay dividends to the holding company parent, Citizens’ success in managing the risks involved in the foregoing, and other risks and uncertainties detailed from time to time in its filings with the Securities and Exchange Commission. Other factors not currently anticipated by management may also materially and adversely affect Citizens’ results of operations. There can be no assurance that the future results will meet expectations. While Citizens believes that its forward-looking statements are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Citizens does not undertake, and expressly disclaims any obligation, to update or alter its statements whether as a result of new information, future events or otherwise, except as required by applicable law.

####
(Financial highlights follow)

Visit our Web site at http://www.CitizensOnline.com

Consolidated Balance Sheets (Unaudited)
Citizens Banking Corporation and Subsidiaries

		September 30,				June 30,				September 30,
(in thousands)		2005				2005				2004
Assets
Cash and due from banks		$	184,135			$	163,461			$	166,936
Interest-bearing deposits with banks			1,366				1,128				1,933
Investment Securities:
Available-for-sale:
U.S. Treasury and federal agency securities			1,283,574				1,341,398				1,384,546
State and municipal securities			381,914				379,625				407,226
Other securities			55,680				56,118				70,902
Held-to-maturity:
State and municipal securities (fair value of $75,333, $69,263 and $49,646, respectively)			74,943				67,813				48,878
Total investment securities			1,796,111				1,844,954				1,911,552
Mortgage loans held for sale			29,847				29,751				15,715
Loans:
Commercial			1,623,857				1,634,924				1,618,678
Commercial real estate			1,377,082				1,334,169				1,210,661
Residential mortgage loans			531,953				524,735				502,784
Direct consumer			1,171,388				1,186,659				1,133,644
Indirect consumer			864,994				842,741				837,664
Total loans			5,569,274				5,523,228				5,303,431
Less: Allowance for loan losses			(118,626	)			(119,967	)			(122,184	)
Net loans			5,450,648				5,403,261				5,181,247
Premises and equipment			120,755				120,353				117,743
Goodwill			54,527				54,527				54,527
Other intangible assets			11,858				12,582				14,758
Bank owned life insurance			83,773				83,183				82,022
Other assets			118,330				112,737				113,017
Total assets		$	7,851,350			$	7,825,937			$	7,659,450
Liabilities
Noninterest-bearing deposits		$	939,560			$	927,270			$	933,864
Interest-bearing demand deposits			962,893				1,008,599				1,206,540
Savings deposits			1,445,838				1,475,220				1,521,415
Time deposits			1,878,180				1,789,649				1,605,520
Total deposits			5,226,471				5,200,738				5,267,339
Federal funds purchased and securities sold under agreements to repurchase			916,816				930,499				707,219
Other short-term borrowings			11,825				17,952				44,266
Other liabilities			83,553				78,072				64,588
Long-term debt			957,836				936,527				926,318
Total liabilities			7,196,501				7,163,788				7,009,730
Shareholders’ Equity
Preferred stock — no par value			—				—				—
Common stock — no par value			87,405				94,100				97,882
Retained earnings			563,597				555,017				530,896
Accumulated other comprehensive income			3,847				13,032				20,942
Total shareholders’ equity			654,849				662,149				649,720
Total liabilities and shareholders’ equity		$	7,851,350			$	7,825,937			$	7,659,450

Consolidated Statements of Income (Unaudited)
Citizens Banking Corporation and Subsidiaries

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
(in thousands, except per share amounts)		2005				2004				2005				2004
Interest Income
Interest and fees on loans		$	88,536			$	75,470			$	251,283			$	223,249
Interest and dividends on investment securities:
Taxable			14,845				15,312				44,512				46,775
Tax-exempt			5,109				5,243				15,453				15,766
Money market investments			16				4				43				8
Total interest income			108,506				96,029				311,291				285,798
Interest Expense
Deposits			21,859				15,634				59,052				47,977
Short-term borrowings			7,707				2,701				18,848				5,771
Long-term debt			9,298				8,393				26,737				25,203
Total interest expense			38,864				26,728				104,637				78,951
Net Interest Income			69,642				69,301				206,654				206,847
Provision for loan losses			4,000				4,985				8,396				16,485
Net interest income after provision for loan losses			65,642				64,316				198,258				190,362
Noninterest Income
Service charges on deposit accounts			9,343				9,196				26,452				26,307
Trust fees			4,541				4,222				13,456				13,060
Mortgage and other loan income			2,450				1,750				6,884				7,053
Brokerage and investment fees			1,974				1,719				5,857				6,152
Bankcard fees			976				853				2,777				2,547
Gain on sale of Illinois bank subsidiary			—				11,650				—				11,650
Other			4,657				5,158				14,079				15,147
Total fees and other income			23,941				34,548				69,505				81,916
Investment securities gains			0				534				43				(1,519	)
Total noninterest income			23,941				35,082				69,548				80,397
Noninterest Expense
Salaries and employee benefits			34,060				32,649				99,762				97,773
Occupancy			5,255				4,859				16,500				15,123
Professional services			4,517				4,131				12,442				12,340
Equipment			3,133				3,486				11,371				10,796
Data processing services			3,188				3,192				10,056				10,278
Advertising and public relations			1,717				2,090				5,283				6,273
Postage and delivery			1,512				1,516				4,622				4,934
Telephone			1,242				1,543				4,148				4,528
Other loan expenses			720				384				1,969				3,144
Stationery and supplies			726				947				2,247				2,705
Intangible asset amortization			725				725				2,174				2,174
Prepayment penalty on FHLB advances			—				17,959				—				17,959
Other			3,755				5,492				11,567				13,623
Total noninterest expense			60,550				78,973				182,141				201,650
Income Before Income Taxes			29,033				20,425				85,665				69,109
Income tax provision			8,041				779				24,028				13,298
Net Income		$	20,992			$	19,646			$	61,637			$	55,811
Net Income Per Common Share:
Basic		$	0.49			$	0.46			$	1.43			$	1.29
Diluted			0.48				0.45				1.41				1.28
Cash Dividends Declared Per Common Share			0.285				0.285				0.855				0.855
Average Common Shares Outstanding:
Basic			43,099				43,224				43,161				43,277
Diluted			43,453				43,677				43,507				43,763

Selected Quarterly Information
Citizens Banking Corporation and Subsidiaries

		3rd Qtr 2005				2nd Qtr 2005				1st Qtr 2005				4th Qtr 2004				3rd Qtr 2004
Summary of Operations (thousands)
Interest income		$	108,506			$	103,619			$	99,166			$	97,170			$	96,029
Interest expense			38,864				34,840				30,933				28,690				26,728
Net interest income			69,642				68,779				68,233				68,480				69,301
Provision for loan losses			4,000				1,396				3,000				4,609				4,985
Net interest income after provision for loan losses			65,642				67,383				65,233				63,871				64,316
Total fees and other income			23,941				23,109				22,455				23,644				34,548
Investment securities gains (losses)			0				37				6				10				534
Noninterest expense			60,550				60,990				60,601				61,117				78,973
Income tax provision			8,041				8,974				7,013				6,122				779
Net income			20,992				20,565				20,080				20,286				19,646
Taxable equivalent adjustment			3,284				3,324				3,353				3,324				3,350
At Period End (millions)
Total assets		$	7,851			$	7,826			$	7,777			$	7,706			$	7,659
Total earning assets			7,397				7,399				7,358				7,292				7,233
Total loans including held for sale			5,599				5,553				5,464				5,421				5,319
Total deposits			5,226				5,201				5,290				5,300				5,267
Total shareholders’ equity			655				662				646				654				650
Average Balances (millions)
Total assets		$	7,821			$	7,807			$	7,728			$	7,661			$	7,669
Total earning assets			7,393				7,386				7,302				7,238				7,235
Total loans including held for sale			5,572				5,510				5,424				5,337				5,289
Total deposits			5,239				5,254				5,349				5,258				5,336
Total shareholders’ equity			655				654				649				649				637
Shareholders’ equity / assets			8.38	%			8.37	%			8.40	%			8.48	%			8.31	%
Credit Quality Statistics (thousands)
Nonaccrual loans		$	35,527			$	42,191			$	36,593			$	42,819			$	41,706
Loans 90 or more days past due and still accruing			92				2				11				40				324
Restructured loans			13				32				42				42				52
Total nonperforming loans			35,632				42,225				36,646				42,901				42,082
Other repossessed assets acquired (ORAA)			6,984				6,817				7,118				7,946				10,303
Total nonperforming assets		$	42,616			$	49,042			$	43,764			$	50,847			$	52,385
Allowance for loan losses		$	118,626			$	119,967			$	120,945			$	122,184			$	122,184
Allowance for loan losses as a percent of portfolio loans			2.13	%			2.17	%			2.23	%			2.27	%			2.30	%
Allowance for loan losses as a percent of nonperforming assets			278.36				244.62				276.36				240.30				233.24
Allowance for loan losses as a percent of nonperforming loans			332.92				284.11				330.04				284.80				290.35
Nonperforming assets as a percent of portfolio loans plus ORAA			0.76				0.89				0.80				0.94				0.99
Nonperforming assets as a percent of total assets			0.54				0.63				0.56				0.66				0.68
Net loans charged off as a percent of average portfolio loans (annualized)			0.38				0.17				0.32				0.35				0.38
Net loans charged off (000)		$	5,341			$	2,374			$	4,239			$	4,609			$	4,984
Per Common Share Data
Net Income:
Basic		$	0.49			$	0.48			$	0.46			$	0.47			$	0.46
Diluted			0.48				0.47				0.46				0.46				0.45
Dividends			0.285				0.285				0.285				0.285				0.285
Market Value:
High		$	32.15			$	30.98			$	34.81			$	35.43			$	33.36
Low			28.20				26.35				29.02				32.01				29.42
Close			28.40				30.22				29.36				34.35				32.57
Book value			15.21				15.31				14.95				15.13				15.03
Shares outstanding, end of period (000)			43,044				43,261				43,173				43,240				43,234
Performance Ratios (annualized)
Net interest margin (FTE) (1)			3.93	%			3.92	%			3.96	%			3.97	%			4.02	%
Return on average assets			1.06				1.06				1.05				1.05				1.02
Return on average shareholders’ equity			12.71				12.62				12.54				12.43				12.27
Efficiency ratio (2)			62.51				64.06				64.44				64.21				63.86

(1)

Net interest margin is presented on an annual basis, includes taxable equivalent adjustments to interest income and is based on a tax rate of 35%.

(2)		Efficiency Ratio = Noninterest expense/(Net interest income + Taxable equivalent adjustment + Total fees and other income). It measures how efficiently a bank spends its revenues. The fourth quarter 2004 excludes a special charge recovery of $0.2 million and the third quarter 2004 excludes the gain on the sale of the Illinois Bank subsidiary of $11.7 million and a prepayment penalty on FHLB advances of $18.0 million.
		The efficiency ratio for the fourth and third quarters of 2004 would equal 64.03% and 73.67%, respectively, if these items were included in the calculation.

Financial Summary and Comparison
Citizens Banking Corporation and Subsidiaries

		Nine months ended
		September 30,
		2005				2004				% Change
Summary of Operations (thousands)
Interest income		$	311,291			$	285,798				8.9	%
Interest expense			104,637				78,951				32.5
Net interest income			206,654				206,847				(0.1	)
Provision for loan losses			8,396				16,485				(49.1	)
Net interest income after provision for loan losses			198,258				190,362				4.1
Total fees and other income			69,505				81,916				(15.2	)
Investment securities gains (losses)			43				(1,519	)			N/M
Noninterest expense			182,141				201,650				(9.7	)
Income tax provision			24,028				13,298				80.7
Net income			61,637				55,811				10.4
At Period End (millions)
Total assets		$	7,851			$	7,659				2.5	%
Total earning assets			7,397				7,233				2.3
Total loans including held for sale			5,599				5,319				5.3
Total deposits			5,226				5,267				(0.8	)
Total shareholders’ equity			655				650				0.8
Average Balances (millions)
Total assets		$	7,786			$	7,693				1.2	%
Total earning assets			7,361				7,267				1.3
Total loans including held for sale			5,503				5,277				4.3
Total deposits			5,280				5,415				(2.5	)
Total shareholders’ equity			653				636				2.6
Shareholders’ equity / assets			8.38	%			8.27	%			1.4
Per Common Share Data
Net Income:
Basic		$	1.43			$	1.29				10.9	%
Diluted			1.41				1.28				10.2
Dividends			0.855				0.855				0.0
Market Value:
High		$	34.81			$	34.00				2.4
Low			26.35				28.31				(6.9	)
Close			28.40				32.57				(12.8	)
Book value			15.21				15.03				1.2
Tangible book value			13.67				13.43				1.8
Shares outstanding, end of period (000)			43,044				43,234				(0.4	)
Performance Ratios (annualized)
Net interest margin (FTE) (1)			3.94	%			4.00	%			(1.5	)%
Return on average assets			1.06				0.97				9.3
Return on average shareholders’ equity			12.62				11.72				7.7
Net loans charged off as a percent of average portfolio loans			0.29				0.41				(29.3	)

(1)

Net interest margin is presented on an annual basis and includes taxable equivalent adjustments to interest income of $10.0 million and $10.1 million for the nine months ended September 30, 2005 and 2004, respectively, based on a tax rate of 35%.

N/M — not meaningful

Noninterest Income and Noninterest Expense (Unaudited)
Citizens Banking Corporation and Subsidiaries

		Three Months Ended
		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(in thousands)		2005				2005				2005				2004				2004
NONINTEREST INCOME:
Service charges on deposit accounts		$	9,343			$	8,822			$	8,287			$	8,814			$	9,196
Trust fees			4,541				4,503				4,412				4,794				4,222
Mortgage and other loan income			2,450				2,074				2,360				2,562				1,750
Brokerage and investment fees			1,974				2,284				1,599				1,733				1,719
Bankcard fees			976				961				840				897				853
Gain on sale of Illinois bank subsidiary			—				—				—				—				11,650
Other income			4,657				4,465				4,957				4,844				5,158
Total fees and other income			23,941				23,109				22,455				23,644				34,548
Investment securities gains			0				37				6				10				534
TOTAL NONINTEREST INCOME		$	23,941			$	23,146			$	22,461			$	23,654			$	35,082
NONINTEREST EXPENSE:
Salaries and employee benefits		$	34,060			$	32,351			$	33,351			$	31,320			$	32,649
Occupancy			5,255				5,685				5,560				5,077				4,859
Professional services			4,517				3,726				4,199				3,911				4,131
Equipment			3,133				4,937				3,301				3,575				3,486
Data processing services			3,188				3,499				3,369				3,074				3,192
Advertising and public relations			1,717				1,820				1,746				2,907				2,090
Postage and delivery			1,512				1,520				1,590				1,600				1,516
Telephone			1,242				1,465				1,441				1,502				1,543
Other loan expenses			720				874				375				840				384
Stationery and supplies			726				602				919				1,046				947
Intangible asset amortization			725				724				725				725				725
Prepayment penalty on FHLB advances			—				—				—				—				17,959
Other expense			3,755				3,787				4,025				5,540				5,492
TOTAL NONINTEREST EXPENSE		$	60,550			$	60,990			$	60,601			$	61,117			$	78,973

Average Balances, Yields and Rates

		Three Months Ended
		September 30, 2005								June 30, 2005								September 30, 2004
		Average				Average				Average				Average				Average				Average
(in thousands)		Balance				Rate (1)				Balance				Rate (1)				Balance (2)				Rate (1)(2)
Earning Assets
Money market investments		$	2,691				2.30				3,209				2.28				2,592				0.57
Investment securities (3):
Taxable			1,381,469				4.30				1,436,384				4.17				1,491,700				4.11
Tax-exempt			428,534				7.34				421,144				7.52				426,893				7.56
Mortgage loans held for sale			40,836				5.18				38,478				5.59				24,368				5.64
Loans (4):
Commercial			1,622,724				6.36				1,640,287				5.90				1,606,257				5.19
Commercial real estate			1,352,733				6.43				1,320,077				6.28				1,223,116				5.90
Residential mortgage loans			520,861				5.54				499,425				5.64				486,879				5.76
Direct consumer			1,178,476				6.46				1,181,656				6.15				1,124,344				5.57
Indirect consumer			856,207				6.58				830,330				6.53				824,030				6.66
Total portfolio loans			5,531,001				6.36				5,471,775				6.12				5,264,626				5.72
Total earning assets			7,384,531				6.02				7,370,990				5.81				7,210,179				5.49
Nonearning Assets
Cash and due from banks			158,631								152,838								170,013
Bank premises and equipment			121,142								121,863								118,110
Investment security fair value adjustment			8,321								15,326								24,664
Other nonearning assets			267,861								266,932								270,491
Allowance for loan losses			(119,695	)							(120,560	)							(124,197	)
Total assets		$	7,820,791							$	7,807,389							$	7,669,260
Interest-Bearing Liabilities
Deposits:
Interest-bearing demand		$	1,016,366				0.67			$	1,071,211				0.67			$	1,269,994				0.76
Savings deposits			1,471,878				1.55				1,512,212				1.28				1,493,434				0.84
Time deposits			1,810,928				3.16				1,742,621				2.88				1,634,243				2.44
Short-term borrowings			900,520				3.40				890,444				3.02				694,850				1.55
Long-term debt			942,624				3.92				925,817				3.91				923,476				3.62
Total interest-bearing liabilities			6,142,316				2.51				6,142,305				2.27				6,015,997				1.77
Noninterest-Bearing Liabilities and Shareholders’ Equity
Noninterest-bearing demand			939,668								927,566								938,155
Other liabilities			83,671								83,828								77,905
Shareholders’ equity			655,136								653,690								637,203
Total liabilities and shareholders’ equity		$	7,820,791							$	7,807,389							$	7,669,260
Interest Spread							3.51	%							3.54	%							3.72	%
Contribution of noninterest bearing sources of funds							0.42								0.38								0.30
Net Interest Income as a Percent of Earning Assets							3.93	%							3.92	%							4.02	%

(1)		Average rates are presented on an annual basis and include taxable equivalent adjustments to interest income.
(2)		Certain amounts have been reclassified to conform with current year presentation.
(3)		For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(4)		Nonaccrual loans are included in average balances.

Average Balances, Yields and Rates

		Nine Months Ended September 30,
		2005								2004
		Average				Average				Average				Average
(in thousands)		Balance				Rate (1)				Balance (2)				Rate (1)(2)
Earning Assets
Money market investments			2,570				2.22				2,159				0.49
Investment securities (3):
Taxable			1,417,647				4.19				1,533,232				4.07
Tax-exempt			423,564				7.48				425,205				7.61
Mortgage loans held for sale			36,920				5.41				35,132				5.51
Loans (4):
Commercial			1,626,133				5.96				1,619,255				5.10
Commercial real estate			1,321,703				6.27				1,264,193				5.85
Residential mortgage loans			506,154				5.55				486,977				5.77
Direct consumer			1,176,047				6.22				1,093,297				5.59
Indirect consumer			835,741				6.59				777,908				6.75
Total portfolio loans			5,465,778				6.15				5,241,630				5.69
Total earning assets			7,346,479				5.84				7,237,358				5.46
Nonearning Assets
Cash and due from banks			156,556								164,142
Bank premises and equipment			121,303								117,037
Investment security fair value adjustment			14,168								29,624
Other nonearning assets			267,881								269,539
Allowance for loan losses			(120,502	)							(125,008	)
Total assets		$	7,785,885							$	7,692,692
Interest-Bearing Liabilities
Deposits:
Interest-bearing demand		$	1,079,770				0.68			$	1,314,645				0.74
Savings deposits			1,536,209				1.36				1,388,673				0.68
Time deposits			1,739,284				2.91				1,802,073				2.50
Short-term borrowings			836,980				3.01				630,578				1.22
Long-term debt			932,035				3.83				932,511				3.61
Total interest-bearing liabilities			6,124,278				2.28				6,068,480				1.74
Noninterest-Bearing Liabilities and Shareholders’ Equity
Noninterest-bearing demand			924,737								909,293
Other liabilities			84,084								78,593
Shareholders’ equity			652,786								636,326
Total liabilities and shareholders’ equity		$	7,785,885							$	7,692,692
Interest Spread							3.56	%							3.72	%
Contribution of noninterest bearing sources of funds							0.38								0.28
Net Interest Income as a Percent of Earning Assets							3.94	%							4.00	%