-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OFSlSceoI72QrQMHiy9SkMRPtsPirxAdMVLo77eQxJtfRhIg/6CpNqDvKUNVGwFG 7anz8VIvkvIySoXLP75F7A== 0001169232-03-004736.txt : 20030725 0001169232-03-004736.hdr.sgml : 20030725 20030725085543 ACCESSION NUMBER: 0001169232-03-004736 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030729 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIZENS SOUTH BANKING CORP CENTRAL INDEX KEY: 0001051871 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 542069979 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23971 FILM NUMBER: 03802062 BUSINESS ADDRESS: STREET 1: 245 WEST MAIN AVENUE CITY: GASTONIA STATE: NC ZIP: 28052-4140 BUSINESS PHONE: 7048685200 MAIL ADDRESS: STREET 1: P.O. BOX 2249 CITY: GASTONIA STATE: NC ZIP: 28053-2249 FORMER COMPANY: FORMER CONFORMED NAME: GASTON FEDERAL BANCORP INC DATE OF NAME CHANGE: 19971222 8-K 1 d56363_8-k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Date of Report (Date of earliest event reported): July 29, 2003 CITIZENS SOUTH BANKING CORPORATION (Exact Name of Registrant as Specified in Charter) Delaware 0-23971 54-2069979 (State or Other Jurisdiction (Commission File No.) (I.R.S. Employer of Incorporation) Identification No.) 245 West Main Avenue, Gastonia, North Carolina 28053 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 704-868-5200 Not Applicable (Former name or former address, if changed since last report) Items 1 through 6 and 8: Not Applicable Item 7. Financial Statements, Pro Forma Financial Information and Exhibits Exhibits. The following Exhibit is furnished as part of this report: 99.1: Text of written presentation Citizens South Banking Corporation intends to make available to interested analysts on July 29, 2003, which includes, among other things, a review of results and trends through the period ended June 30, 2003. Item 9. Regulation FD Disclosure Citizens South Banking Corporation presented to interested analysts its written investor presentation material, which includes among other things, a review of financial results and trends through the period ended June 30, 2003. The information provided pursuant hereto shall not be deemed incorporated by reference by any general statement incorporating by reference this Form 8-K into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and shall not otherwise be deemed filed under such Acts. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. CITIZENS SOUTH BANKING CORPORATION DATE: July 28, 2003 By: /s/ Kim S. Price ------------------------------------- Kim S. Price President and Chief Executive Officer By: /s/ Gary F. Hoskins ------------------------------------- Gary F. Hoskins Chief Financial Officer EX-99.1 3 d56363_ex99-1.txt INVESTOR PRESENTATION MATERIAL EXHIBIT 99.1 Investor Presentation Material - -------------------------------------------------------------------------------- Citizens South Banking Corporation - -------------------------------------------------------------------------------- Keefe, Bruyette & Woods, Inc. Honor Roll and Fourth Annual Community Bank Investor Conference The Metropolitan Club New York, New York July 29, 2003 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- FORWARD LOOKING STATEMENTS - -------------------------------------------------------------------------------- This presentation contains forward looking statements with respect to the financial condition and operations of Citizens South Banking Corporation and its wholly-owned subsidiary, Citizens South Bank. These forward looking statements involve risks and uncertainties. Factors that may cause actual results to differ materially from those projected in the forward looking statements include, among others, the following possibilities: 1) general economic conditions are less favorable than expected; 2) changes in market interest rates reduce interest margins; 3) risks in the loan portfolio, including prepayments, are greater than expected; 4) legislation or regulatory changes adversely affect the businesses in which the company is engaged and; 5) competitive pressures increase significantly. For further information and other factors that may affect the accuracy of forward looking statements, please refer to reports that the company files from time to time with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Readers are cautioned not to place undue reliance on these forward looking statements, which reflect management's judgements only as of the date hereof. The company undertakes no obligation to publicly revise these forward looking statements to reflect events and circumstances that may arise after the date hereof. [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- OVERVIEW OF PRESENTATION - -------------------------------------------------------------------------------- o History of Citizens South Banking Corporation o At a Glance o Historical Financial Information o Vision and Business Strategy o Why Own CSBC [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- HISTORY OF CITIZENS SOUTH BANKING CORPORATION - -------------------------------------------------------------------------------- o 1904 - Chartered as a North Carolina mutual building and loan association o 1982 - Acquired Mutual Building and Savings Association of Mount Holly o 1998 - Converted to a Mutual Holding Company o 2001 - Acquired Innes Street Financial Corporation o 2002 - Converted to a stock holding company [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- AT A GLANCE - -------------------------------------------------------------------------------- Citizens South Banking Corporation (dollars in thousands) 12-31-02 06-30-03 ---------- ---------- o Assets $ 492,567 $ 501,217 o Loans, net $ 299,906 $ 298,757 o Deposits $ 340,862 $ 345,014 o Equity $ 96,383 $ 95,253 o Shares Outstanding 9,062,727 8,926,908 o Branches Nine Ten o Employees (FTEs) 106 114 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- AT A GLANCE - -------------------------------------------------------------------------------- Citizens South Banking Corporation 12-31-02 06-30-03 -------- -------- o Stock Price $10.20 $13.24 o Book Value $10.64 $10.67 o Price to Book 95.86% 124.09% o LTM EPS - basic $ 0.51 $ 0.55 o LTM EPS - diluted $ 0.51 $ 0.55 o LTM P/E Multiple 20.0x 24.1x [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- EXECUTIVE MANAGEMENT TEAM - -------------------------------------------------------------------------------- Years with Total Yrs Prior CSBC Bank Exp. Employment ---- --------- ---------- o Kim S. Price 6 22 First Natl/ President and CEO FHLB o Paul L. Teem, Jr. 20 20 CSBC EVP and Chief Admin. Officer o Vance B. Brinson, Jr. 1 25 Wachovia EVP Commercial Banking o Daniel M. Boyd, IV 9 mos 18 First Gaston/ EVP Business Development Wachovia o Gary F. Hoskins 6 17 CFSLA/ EVP and CFO OTS o Michael R. Maguire 4 23 First Union SVP and Chief Credit Officer o J. Stephen Huffstetler 6 24 First Comm./ SVP Retail Banking First Union [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- BRANCH LOCATIONS - -------------------------------------------------------------------------------- [MAP OMITTED] [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION DEPOSIT MARKET SHARE - GASTON COUNTY
June 30, 2001 June 30, 2002 ------------- ------------- Amount of Percent of Financial Institution Deposits Market % Deposits Market % Growth Growth --------------------- -------- -------- -------- -------- --------- ---------- 1 Branch Banking and Trust $ 552,931 31.71% $ 539,360 30.93% ($13,571) -2.45% 2 Wachovia Bank (1) $ 329,910 18.92% $ 343,031 19.67% $ 13,121 3.98% - ------------------------------------------------------------------------------------------------------------------------------- 3 Citizens South Bank $ 182,057 10.44% $ 185,007 10.61% $ 2,950 1.62% - ------------------------------------------------------------------------------------------------------------------------------- 4 Bank of America $ 142,318 8.16% $ 124,864 7.16% ($17,454) -12.26% 5 First Gaston Bank $ 101,152 5.80% $ 123,823 7.10% $ 22,671 22.41% 6 RBC Centura Bank $ 94,969 5.45% $ 96,332 5.52% $ 1,363 1.44% 7 National Bank of Commerce $ 95,534 5.48% $ 94,246 5.40% ($1,288) -1.35% 8 Belmont Federal S&LA $ 72,025 4.13% $ 72,570 4.16% $ 545 0.76% 9 Cherryville Federal S&LA $ 56,204 3.22% $ 59,417 3.41% $ 3,213 5.72% 10 First National Bank of Shelby $ 36,804 2.11% $ 39,846 2.29% $ 3,042 8.27% 11 Fidelity Bank $ 33,630 1.93% $ 33,984 1.95% $ 354 1.05% 12 SouthTrust Bank $ 32,176 1.85% $ 31,313 1.80% ($863) -2.68% - ------------------------------------------------------------------------------------------------------------------------------- Total Deposits - Gaston County $1,729,710 $1,743,793 $ 14,083 0.81% ===============================================================================================================================
Footnotes: (1) Deposits for Wachovia and First Union were consolidated for 2001 in order to give a comparable analysis for 2002. Source: 2002 Market Share Report published by the FDIC [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- DEPOSIT MARKET SHARE - ROWAN COUNTY - --------------------------------------------------------------------------------
June 30, 2001 June 30, 2002 ------------- ------------- Amount of Percent of Financial Institution Deposits Market % Deposits Market % Growth Growth --------------------- -------- -------- -------- -------- --------- ---------- 1 Farmers & Merchants Bank $ 259,454 22.98% $ 278,740 23.64% $ 19,286 7.43% 2 National Bank of Commerce $ 252,386 22.35% $ 252,969 21.45% $ 583 0.23% 3 Wachovia Bank (1) $ 263,611 23.34% $ 241,920 20.51% ($21,691) -8.23% - ------------------------------------------------------------------------------------------------------------------------------------ 4 Citizens South Bank $ 119,177 10.55% $ 115,470 9.79% ($ 3,707) -3.11% - ------------------------------------------------------------------------------------------------------------------------------------ 5 Rowan Savings Bank, SSB $ 94,186 8.34% $ 99,813 8.46% $ 5,627 5.97% 6 Bank of the Carolinas $ 30,960 2.74% $ 43,501 3.69% $ 12,541 40.51% 7 Bank of America $ 35,299 3.13% $ 41,750 3.54% $ 6,451 18.28% 8 First Charter Bank $ 38,568 3.42% $ 39,285 3.33% $ 717 1.86% 9 First Bank (2) $ 10,043 0.89% $ 34,997 2.97% $ 24,954 248.47% 10 Fidelity Bank $ 15,506 1.37% $ 15,895 1.35% $ 389 2.51% 11 South Trust Bank $ 10,098 0.89% $ 14,973 1.27% $ 4,875 48.28% - ------------------------------------------------------------------------------------------------------------------------------------ Total Deposits - Rowan County $1,129,288 100.00% $1,179,313 100.00% $ 50,025 4.43% ====================================================================================================================================
Footnotes: (1) Deposits for Wachovia and First Union were consolidated for 2001 in order to give a comparable analysis for 2002. (2) Purchased deposits and office from former First Union Source: 2002 Market Share Report published by the FDIC [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- DEPOSIT MARKET SHARE - IREDELL COUNTY - --------------------------------------------------------------------------------
June 30, 2001 June 30, 2002 ------------- ------------- Amount of Percent of Financial Institution Deposits Market % Deposits Market % Growth Growth --------------------- -------- -------- -------- -------- --------- ---------- 1 Branch Banking and Trust Co. $ 307,837 21.30% $ 312,648 21.63% $ 4,811 1.56% 2 Bank of America $ 255,923 17.71% $ 266,303 18.43% $ 10,380 4.06% 3 Wachovia Bank (1) $ 237,427 16.43% $ 243,966 16.88% $ 6,539 2.75% 4 Piedmont Bank $ 154,374 10.68% $ 182,704 12.64% $ 28,330 18.35% 5 First Charter National Bank $ 102,262 7.08% $ 94,368 6.53% ($7,894) -7.72% 6 Mooresville Savings Bank, SSB $ 96,151 6.65% $ 93,061 6.44% ($3,090) -3.21% 7 National Bank of Commerce $ 70,764 4.90% $ 69,500 4.81% ($1,264) -1.79% 8 First Citizens Bank and Trust $ 68,563 4.74% $ 66,686 4.61% ($1,877) -2.74% - ----------------------------------------------------------------------------------------------------------------------------- 9 Citizens South Bank $ 52,796 3.65% $ 48,411 3.35% ($4,385) -8.31% - ----------------------------------------------------------------------------------------------------------------------------- 10 SouthTrust Bank $ 48,591 3.36% $ 44,270 3.06% ($4,321) -8.89% 11 Community Bank $ 20,540 1.42% $ 23,258 1.61% $ 2,718 13.23% - ----------------------------------------------------------------------------------------------------------------------------- Total Deposits - Iredell County $1,415,228 97.93% $1,445,175 100.00% $ 29,947 2.12% =============================================================================================================================
Footnotes: (1) Deposits for Wachovia and First Union were consolidated for 2001 in order to give a comparable analysis for 2002. Source: 2002 Market Share Report published by the FDIC [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- TOTAL ASSETS - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) $235,742 $252,750 $447,581 $492,567 $501,217 - -------------------------------------------------------------------------------- 12/31/1999 12/31/2000 12/31/2001 (1) 12/31/2002 6/30/2003 (1) Includes the assets of Innes Street Financial Corporation which at the time of the acquisition were $222 million [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- LOANS RECEIVABLE, NET - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) $169,931 $158,820 $334,321 $299,906 $298,757 - -------------------------------------------------------------------------------- 12/31/1999 12/31/2000 12/31/2001 (1) 12/31/2002 6/30/2003 (1) Includes the loans of Innes Street Financial Corporation which at the time of the acquisition were $171 million [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- LOAN PORTFOLIO MIX - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] Consumer 19.1% Consumer 18.9% Commercial / Industrial 4.5% Commercial / Industrial 2.0% Commercial real estate 25.9% Commercial real estate 14.4% Construction 4.9% Construction 4.8% Multifamily 3.8% Multifamily 2.5% One-to-four family 57.3% At June 30, 2003 December 31, 2001 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- NONPERFORMING ASSETS TO TOTAL ASSETS - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.] 0.16% 0.19% 0.59% 0.37% 0.19% - -------------------------------------------------------------------------------- 12/31/1999 12/31/2000 12/31/2001 12/31/2002 6/30/2003 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- TOTAL DEPOSITS - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) $158,603 $167,931 $353,692 $340,862 $345,014 - -------------------------------------------------------------------------------- 12/31/1999 12/31/2000 12/31/2001(1) 12/31/2002 6/30/2003 (1) Includes the deposits of Innes Street Financial Corporation which at the time of the acquisition were $174 million [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- DEPOSIT PORTFOLIO MIX - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] Money Market 12.4% Money Market 8.3% Checking 8.3% Checking 7.2% Non-interest Bearing 3.8% Non-interest Bearing 2.2% Savings 11.4% Savings 12.4% Time Deposits 64.0% Time Deposits 69.8% June 30, 2003 December 31, 2001 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- NONINTEREST INCOME - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) $2,470 $2,473 $3,006 $4,121 $2,443 - -------------------------------------------------------------------------------- 12/31/1999 12/31/2000 12/31/2001 12/31/2002 6 mos ended 06/30/03 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- NET INTEREST MARGIN - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.] 3.20% 2.92% 2.52% 3.17% 2.79% - -------------------------------------------------------------------------------- 12/31/1999 12/31/2000 12/31/2001 12/31/2002 6/30/2003 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- QUARTERLY DILUTED EPS - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.] $0.06 $0.06 $0.05 $0.03 $0.11 $0.13 $0.14 $0.14 $0.14 $0.13 - --------------------------------------------------------------------------------------------------------------------------- 3/31/2001 6/30/2001 9/30/2001 12/31/2001 3/31/2002 6/30/2002 9/30/2002 12/31/2002 3/31/2003 6/30/2003
[LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- VISION AND BUSINESS STRATEGY - -------------------------------------------------------------------------------- I. Create a Banklike Organization A. Management / Culture B. Transitioning Balance Sheet C. Grow Market Share D. Generate Noninterest Sources of Revenue E. Reduce Interest Rate Risk [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- VISION AND BUSINESS STRATEGY - -------------------------------------------------------------------------------- II. Franchise Development A. De novo Offices 1. Mooresville 2. Belmont 3. York County, SC B. Remodel Salisbury and Rockwell Offices C. Operations Center Consolidation D. Branch / Corporate Office Relocation [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION Rockwell, NC Branch Renovation [GRAPHIC OMITTED] - -------------------------------------------------------------------------------- VISION AND BUSINESS STRATEGY - -------------------------------------------------------------------------------- III. Enhance Shareholder Value A. Leverage Capital 1. Grow retail and business banking 2. Establish de novo branches 3. Investigate branch acquisitions 4. Seek related business opportunities 5. Patient pursuit of acquisitions B. Manage Capital 1. Execute Stock Repurchase Plan 2. Evaluate Dividend Policy [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- WHY OWN CSBC - -------------------------------------------------------------------------------- o Management Team o Thrift to Bank Balance Sheet Transformation o Thrift to Bank Cultural Transformation o Dynamic Market - Charlotte/Gastonia/Rock Hill MSA o Proven Ability to Leverage Capital o Attractive Price [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION - -------------------------------------------------------------------------------- TOTAL RETURN PERFORMANCE - -------------------------------------------------------------------------------- Total Return Performance [LINE CHART OMITTED]
Index 04/13/98 12/31/98 12/31/99 12/31/00 12/31/01 12/31/02 06/30/03 -------- -------- -------- -------- -------- -------- -------- Citizens South Banking Corp. 10,000 13,094 11,648 11,517 16,120 23,843 31,272 Russell 2000 10,000 8,864 10,748 10,423 10,682 8,494 10,013 SNL Southeast Thrift Index 10,000 7,926 7,864 7,740 11,834 13,882 16,342
Note: Citizens South Banking Corp. data based upon original $10.00 IPO price. Note: Russell 2000 and SNL Southeast Thrift Index values based upon closing values on 4/12/98. - -------------------------------------------------------------------------------- Source : SNL Financial LC, Charlottesville, VA (434) 977-1600 (C) 2003 [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION We thank you for your interest in "CSBC" [LOGO] CITIZENS SOUTH --------------------- BANKING CORPORATION -----END PRIVACY-ENHANCED MESSAGE-----