-----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, LKjM7p8q/gYMyeId0E722qWBB1xLZF/dUO9gjiccnunGuAYPNId0r3f5hJazRBZO tpzh44CUER3EQBpBAFun7w== 0001169232-04-000336.txt : 20040128 0001169232-04-000336.hdr.sgml : 20040128 20040128150758 ACCESSION NUMBER: 0001169232-04-000336 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040126 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040128 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: 04549011 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 d58013_8-k.txt CURRENT REPORT 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: January 26, 2004 Citizens South Banking Corporation (Exact Name of Registrant as Specified in Charter) Delaware 0-23971 54-2069979 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 245 West Main Avenue, Gastonia, North Carolina 28052 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 704-868-5200 Item 7. Exhibits (c) The following exhibits are being furnished herewith: Exhibit No. Exhibit Description ----------- ------------------- 99.1: Earnings Press Release of Citizens South Banking Corporation 99.2: Dividend Press Release of Citizens South Banking Corporation Item 12. Results of Operations and Financial Condition On January 26, 2004, Citizens South Banking Corporation issued two press releases regarding 1) the Company's financial condition and results of operations at and for the quarterly and full-year period ended December 31, 2003, and 2) the declaration of quarterly dividends. The text of the press releases and related financial supplements are included as Exhibits 99.1 and 99.2 to this report. The information included in the text and financial supplements of the press releases is considered to be "furnished" under the Securities Exchange Act of 1934. The Company will include final financial statements and additional analyses for the period ended December 31, 2003, as part of its Form 10-K covering that period. 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: January 28, 2004 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 d58013_ex99-1.txt EARNINGS PRESS RELEASE EXHIBIT 99.1 EARNINGS PRESS RELEASE OF CITIZENS SOUTH BANKING CORPORATION CITIZENS SOUTH BANKING CORPORATION ANNOUNCES EARNINGS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003 GASTONIA, NC, January 26, 2004 --- Citizens South Banking Corporation (Nasdaq: CSBC), the holding company for Citizens South Bank, announced earnings for the quarter ended December 31, 2003, of $966,000, or $0.11 per diluted share, compared to $1,185,000, or $0.13 per diluted share, for the quarter ended December 31, 2002. The Company also reported earnings for the twelve months ended December 31, 2003, of $3.4 million, or $0.39 per diluted share, as compared to $4.5 million, or $0.51 per diluted share, for the twelve months ended December 31, 2002. The reduction in earnings from our record fourth quarter earnings of 2002 was primarily the result of a lower level of net interest income. Net interest income for the quarter ended December 31, 2003, totaled $3.3 million, as compared to $3.6 million for the quarter ended December 31, 2002. The change was principally due to a decrease in the yield on interest-earning assets resulting, in part, from a decrease in the prime interest rate, coupled with a reduction in outstanding residential mortgage loans. The Company did experience positive growth in its other loan portfolios. Commercial mortgage, business, and consumer loans increased by $30.9 million, or 19.4%, from December 31, 2002, to December 31, 2003. In addition, nonperforming assets improved from 0.37% of total assets as of December 31, 2002, to 0.14% of total assets as of December 31, 2003, and nonperforming loans remain well below industry peers at 0.17% of total loans at the end of 2003. Deposits also continued to grow from the previous year with the strongest growth coming in demand deposit accounts (including money market accounts) which increased by $19.1 million, or 26.2%, year over year. Total deposits increased by $1.6 million, or 0.5%, from December 31, 2002, to December 31, 2003. Noninterest income during the comparable quarters increased 61.5% from $1.3 million to $2.1 million, and noninterest expense increased 33.3% from $3.0 million to $4.0 million. These increases were largely the result of expenses associated with implementing a recognition and retention plan and a corresponding gain on the sale of investments utilized as funding for this plan. Kim S. Price, President and CEO commented, "We continue to be pleased with the progress we are making in transitioning the Company to a community commercial bank franchise. The interest rate environment and weak economy of 2003 have had only a minimal effect in impeding our earnings progress, and we are delighted to be able to continue to report very positive commercial loan, deposit, and asset quality trends. In addition, our linked quarter net interest margin is improving, demonstrating that our focus and emphasis in this area is beginning to bear the fruits of our labor." Citizens South Bank was founded in 1904 and has ten offices in three North Carolina counties - Gaston, Rowan, and Iredell, including eight cities - three in Gastonia and one each in Dallas, Mount Holly, Stanley, Salisbury, Statesville, Mooresville, and Rockwell. This news release contains certain forward-looking statements, which are subject to risks and uncertainties. A number of factors could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's reports filed from time to time with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 2002, describe some of these factors. Forward-looking statements speak only as of the date they are made and the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date of the forward-looking statements or to reflect the occurrence of unanticipated events. (Tables Follow) Citizens South Banking Corporation Selected Financial Information (dollars in thousands, except per share data)
- ----------------------------------------------------------------------------------------------------------------------------------- 2003 Years Ended December 31, ------------------------------------------------------ ------------------------ Fourth Third Second First Quarter Quarter Quarter Quarter 2003 2002 ---------- ----------- ---------- ---------- ---------- ---------- (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Income Statement Data: Interest income ............................... $ 5,215 $ 5,206 $ 5,645 $ 5,903 $ 21,969 $ 24,716 Interest expense .............................. 1,916 2,202 2,286 2,328 8,732 10,195 ---------- ----------- ---------- ---------- ---------- ---------- Net interest income ........................... 3,299 3,004 3,359 3,575 13,237 14,521 Provision for loan losses ..................... 15 15 15 15 60 225 ---------- ----------- ---------- ---------- ---------- ---------- Net int. income after provision for loan losses 3,284 2,989 3,344 3,560 13,177 14,296 Noninterest income ............................ 2,068 1,159 1,358 1,085 5,670 4,121 Noninterest expense ........................... 3,958 2,859 3,131 2,763 12,711 11,316 Prepayment penalty on FHLB advances ........... 0 1,289 0 0 1,289 65 ---------- ----------- ---------- ---------- ---------- ---------- Income before income taxes .................... 1,394 0 1,571 1,882 4,847 7,036 Income tax expense ............................ 428 (94) 447 675 1,456 2,528 ---------- ----------- ---------- ---------- ---------- ---------- Net income .................................... $ 966 $ 94 $ 1,124 $ 1,207 $ 3,391 $ 4,508 Per Share Data: Basic net income .............................. $ 0.11 $ 0.01 $ 0.13 $ 0.14 $ 0.39 $ 0.51 Diluted net income ............................ 0.11 0.01 0.13 0.14 0.39 0.51 Cash dividends declared ....................... 0.06 0.06 0.06 0.06 0.24 0.16 Period-end book value ......................... 10.07 10.42 10.67 10.68 10.07 10.64 Financial Ratios: Return on average stockholders' equity ........ 4.31% 0.40% 4.72% 5.00% 3.61% 7.61% Return on average assets ...................... 0.78 0.08 0.90 0.97 0.68 0.98 Efficiency ratio .............................. 89.67 100.29 66.96 59.26 78.16 61.11 Net interest margin ........................... 2.68 2.43 2.69 2.88 2.67 3.17 Average equity to average assets .............. 18.21 19.11 19.10 19.41 18.96 12.93 Asset Quality Data: Allowance for loan losses ..................... $ 2,969 $ 3,007 $ 3,002 $ 3,000 $ 2,969 $ 2,995 Nonperforming loans ........................... 529 1,102 802 570 529 516 Nonperforming assets .......................... 674 1,270 948 810 674 1,823 Allowance for loan losses to total loans ...... 0.98% 1.01% 0.98% 0.98% 0.98% 0.97% Nonperforming loans to total loans ............ 0.17 0.38 0.26 0.19 0.17 0.17 Nonperforming assets to total assets .......... 0.14 0.26 0.19 0.16 0.14 0.37 Average Balances: Total assets .................................. $ 492,567 $ 493,732 $ 498,901 $ 496,746 $ 495,138 $ 458,316 Loans receivable .............................. 292,925 294,980 305,750 299,722 298,344 320,505 Interest-earnings assets ...................... 446,270 448,698 454,675 453,110 450,688 416,748 Deposits ...................................... 343,662 337,595 348,817 338,799 340,468 337,422 Interest-bearing liabilities .................. 383,796 377,824 383,355 374,869 379,961 381,664 Stockholders' equity .......................... 89,690 94,408 95,268 96,648 93,873 59,243 Common shares outstanding, basic .............. 8,483,176 8,596,575 8,660,195 8,757,664 8,623,838 8,767,982 Common shares outstanding, diluted ............ 8,618,639 8,752,979 8,808,915 8,920,531 8,762,545 8,870,054 At Period End: Total assets .................................. $ 495,537 $ 489,341 $ 501,217 $ 501,216 $ 495,537 $ 492,567 Loans receivable, net ......................... 295,026 288,699 298,757 299,291 295,026 299,906 Interest-earnings assets ...................... 448,401 441,996 454,746 457,433 448,401 456,611 Deposits ...................................... 342,446 339,619 345,014 343,865 342,446 340,862 Interest-bearing liabilities .................. 388,434 379,967 384,239 383,287 388,434 377,234 Stockholders' equity .......................... 87,669 91,667 95,253 96,795 87,669 96,383 Other Data: Amortization of intangible assets ............. $ 81 $ 91 $ 106 $ 126 $ 404 $ 963 Net gain / (loss) on sale of assets ........... 953 23 42 4 1,022 105 - -----------------------------------------------------------------------------------------------------------------------------------
Citizens South Banking Corporation Consolidated Statements of Financial Condition (dollars in thousands)
December, 31 December 31, 2003 2002 --------- --------- (unaudited) ASSETS Cash and due from banks ...................................................................... $ 5,355 $ 7,607 Interest-earning bank balances ............................................................... 2,859 39,392 --------- --------- Cash and cash equivalents ................................................................. 8,214 46,999 Investment securities available-for-sale, at fair value ...................................... 56,233 39,594 Mortgage-backed securities available-for-sale, at fair value ................................. 89,168 70,409 Loans receivable, net unearned income ........................................................ 297,995 302,901 Allowance for loan losses .................................................................... (2,969) (2,995) --------- --------- Loans receivable, net ..................................................................... 295,026 299,906 Real estate acquired through foreclosure, net ................................................ 145 1,307 Accrued interest receivable .................................................................. 1,943 1,913 Premises and equipment, net .................................................................. 14,939 8,807 Federal Home Loan Bank stock, at cost ........................................................ 2,915 2,639 Cash value of life insurance policies ........................................................ 12,317 6,834 Core deposit intangible ...................................................................... 1,080 1,484 Goodwill ..................................................................................... 6,670 6,670 Other assets ................................................................................. 6,887 6,005 --------- --------- Total assets .............................................................................. $ 495,537 $ 492,567 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Noninterest-bearing demand accounts .......................................................... $ 12,906 $ 11,203 Interest-bearing demand accounts ............................................................. 30,780 25,773 Money market deposit accounts ................................................................ 48,189 35,811 Savings accounts ............................................................................. 36,754 43,670 Time deposits ................................................................................ 213,817 224,405 --------- --------- Total deposits ............................................................................ 342,446 340,862 Borrowed money ............................................................................... 58,981 47,575 Advances from borrowers for property taxes and insurance ..................................... 259 440 Accrued interest payable ..................................................................... 173 382 Other liabilities ............................................................................ 6,009 6,925 --------- --------- Total liabilities ......................................................................... 407,868 396,184 Stockholders' Equity: Common stock issued and outstanding, $0.01 par value, 20,000,000 shares authorized, 9,062,727 shares issued and outstanding at December 31, 2002; 8,703,113 shares issued and outstanding at December 31, 2003 .............................. 88 91 Additional paid-in-capital ................................................................... 59,610 68,176 Unallocated common stock held by Employee Stock Ownership Plan ............................... (1,978) (2,162) Treasury stock of 359,614 shares at cost at December 31, 2003 ................................ (4) 0 Retained earnings, substantially restricted .................................................. 29,993 28,739 Accumulated unrealized gain on securities available-for-sale, net of tax ..................... (40) 1,539 --------- --------- Total stockholders' equity ................................................................ 87,669 96,383 --------- --------- Total liabilities and stockholders' equity ................................................... $ 495,537 $ 492,567 ========= =========
Citizens South Banking Corporation Consolidated Statements of Operations (in thousands, except per share data)
Three Months Twelve Months Ended December 31, Ended December 31, --------------------------- --------------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- (unaudited) (unaudited) (unaudited) Interest Income Loans receivable ............................................... $ 3,887 $ 4,917 $ 16,798 $ 21,232 Investment securities .......................................... 495 417 1,495 1,482 Interest-bearing deposits ...................................... 31 304 250 600 Mortgage-backed and related securities ......................... 802 481 3,426 1,402 ---------- ---------- ---------- ---------- Total interest income ....................................... 5,215 6,119 21,969 24,716 Interest Expense Deposits ....................................................... 1,465 1,934 6,501 7,962 Borrowed funds ................................................. 451 561 2,231 2,233 ---------- ---------- ---------- ---------- Total interest expense ......................................... 1,916 2,495 8,732 10,195 ---------- ---------- ---------- ---------- Net interest income ............................................ 3,299 3,624 13,237 14,521 Provision for loan losses ...................................... 15 20 60 225 ---------- ---------- ---------- ---------- Net interest income after provision for loan losses ......... 3,284 3,604 13,177 14,296 Noninterest Income Fee income on deposit accounts ................................. 667 597 2,459 2,288 Fee income on loan accounts .................................... 78 272 832 770 Dividends on Federal Home Loan Bank stock ...................... 23 33 102 177 Fair value adjustment on Rabbi trust accounts .................. 133 65 312 2 Gain on sale of assets ......................................... 953 176 1,121 243 Other noninterest income ....................................... 214 189 844 641 ---------- ---------- ---------- ---------- Total noninterest income .................................... 2,068 1,332 5,670 4,121 Noninterest Expense Compensation and benefits ...................................... 2,472 1,508 6,969 5,553 Fair value adjustment on deferred compensation ................. 133 65 312 2 Occupancy and equipment expense ................................ 353 367 1,345 1,430 Professional services .......................................... 137 97 581 327 Amortization of intangible assets .............................. 81 155 404 963 Loss on sale of assets ......................................... 0 4 99 138 Mark-to-market adjustments on OREO ............................. 0 169 0 169 Prepayment penalty on Federal Home Loan Bank advance ........... 0 0 1,289 65 Other noninterest expenses ..................................... 782 705 3,001 2,734 ---------- ---------- ---------- ---------- Total noninterest expense ................................... 3,958 3,070 14,000 11,381 Income before income taxes ..................................... 1,394 1,866 4,847 7,036 Provision for income taxes ..................................... 428 681 1,456 2,528 ---------- ---------- ---------- ---------- Net income ..................................................... $ 966 $ 1,185 $ 3,391 $ 4,508 ========== ========== ========== ========== - ------------------------------------------------------------------------------------------------------------------------------------ Basic earnings per share ....................................... $ 0.11 $ 0.13 $ 0.39 $ 0.51 Diluted earnings per share ..................................... $ 0.11 $ 0.13 $ 0.39 $ 0.51 Basic average common shares outstanding ........................ 8,483,176 8,733,665 8,623,838 8,767,983 Diluted average common shares outstanding ...................... 8,618,639 8,891,474 8,762,545 8,870,055
EX-99.2 4 d58013_ex99-2.txt DIVIDEND PRESS RELEASE EXHIBIT 99.2 DIVIDEND PRESS RELEASE OF CITIZENS SOUTH BANKING CORPORATION CITIZENS SOUTH BANKING CORPORATION DECLARES QUARTERLY DIVIDEND GASTONIA, NC, January 26, 2004 --- Kim S. Price, President and Chief Executive Officer of Citizens South Banking Corporation (Nasdaq: CSBC), announced today that the Company's Board of Directors has declared a cash dividend of six cents per share of common stock. The dividend will be payable to stockholders of record as of February 1, 2004, and will be paid on February 15, 2004. Citizens South Banking Corporation is the parent corporation for Citizens South Bank, which was established in 1904 and is headquartered in Gastonia, North Carolina. The Bank has ten full-service banking offices located in the Central Piedmont region of North Carolina. At December 31, 2003, the Company had assets of $495.5 million, loans of $295.0 million, deposits of $342.4 million, and stockholders' equity of $87.7 million. # # # -----END PRIVACY-ENHANCED MESSAGE-----