EX-8.2 8 dex82.txt EXHIBIT 8.2 EXHIBIT 8.2 Exhibit 8.2 [Letterhead of RP Financial, LC.] June 25, 2002 Board of Directors Citizens South Holdings, MHC Citizens South Banking Corporation Citizen South Bank 245 West Main Avenue Gastonia, North Carolina 28052 Re: Plan of Conversion and Reorganization Citizens South Holdings, MHC Citizens South Banking Corporation Members of the Boards of Directors: All capitalized terms not otherwise defined in this letter have the meanings given such terms in the Plan of Conversion and Reorganization (the "Plan") adopted by the Board of Directors of Citizens South Holdings, MHC. (the "Mutual Holding Company") and Citizens South Banking Corporation (the "Company"). The Plan provides for the conversion of the Mutual Holding Company into the capital stock form of organization. The Mutual Holding Company currently owns a majority of the common stock of the Company, a federally chartered stock holding company, which owns 100 percent of the common stock of Citizens South Bank (the "Bank"), a federally chartered community bank headquartered in Gastonia, North Carolina. Pursuant to the Plan, the Company will sell shares of common stock in an offering that will represent the ownership interest in the Company now owned by the Mutual Holding Company. We understand that in accordance with the Plan, subscription rights to purchase shares of common stock in the Holding Company are to be issued to: (1) Eligible Account Holders; (2) Tax-Qualified Plans; (3) Supplemental Eligible Account Holders; and (4) Other Members. Based solely upon our observation that the subscription rights will be available to such parties without cost, will be legally non-transferable and of short duration, and will afford such parties the right only to purchase shares of common stock at the same price as will be paid by members of the general public in the community offering, but without undertaking any independent investigation of state or federal law or the position of the Internal Revenue Service with respect to this issue, we are of the belief that, as a factual matter: (1) the subscription rights will have no ascertainable market value; and, (2) the price at which the subscription rights are exercisable will not be more or less than the pro forma market value of the shares upon issuance. Changes in the local and national economy, the legislative and regulatory environment, the stock market, interest rates, and other external forces (such as natural disasters or significant world events) may occur from time to time, often with great unpredictability and may materially impact the value of thrift stocks as a whole or the Company's value alone. Accordingly, no assurance can be given that persons who subscribe to shares of common stock in the subscription offering will thereafter be able to buy or sell such shares at the same price paid in the subscription offering. Sincerely, /s/ RP Financial, LC. RP FINANCIAL, LC.