-----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, BNniB1hkr5lU1YVosmGAzdZn1aNr6LEs+q4t8uvYhY6CPtqr3n/KK/h/hhhTRpmx tTqPWL8C4nfMSBRbYqVgJQ== 0001169232-04-003774.txt : 20040728 0001169232-04-003774.hdr.sgml : 20040728 20040728080035 ACCESSION NUMBER: 0001169232-04-003774 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040728 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040728 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: 04934505 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 d60185_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: July 28, 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.) 519 South New Hope Road, Gastonia, North Carolina 28054-4040 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 704-868-5200 Item 7. Exhibits 99 Additional Exhibits: (a) Text of written presentation that Citizens South Banking Corporation intends to make available to interested investors and analysts on June 28, 2004 at the Keefe, Bruyette & Woods, Inc. Fifth Annual Community Bank Investor Conference in New York, New York. Item 9. Regulation FD Disclosure On July 28, 2004, Citizens South Banking Corporation intends to present to interested investors and analysts written investor presentation material, which includes, among other things, a review of financial results and trends through the period ended June 30, 2004. The information provided pursuant hereto shall not be deemed incorporated by reference by any general statement incorporating by reference the 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, 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.(A) 2 d60185_ex99a.txt INVESTOR PRESENTATION MATERIAL EXHIBIT 99 (a) Investor Presentation Material Citizens South Banking Corporation Keefe, Bruyette & Woods, Inc. Fifth Annual Community Bank Investor Conference The Pierre - Four Seasons New York, New York July 27 - 29, 2004 [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. OVERVIEW OF PRESENTATION o History of Citizens South Banking Corporation o At a Glance o Management and Market Area o Historical Financial Information o Vision and Business Strategy - 2003 Update 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, NC 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 (CSBC) Gastonia, NC (dollars in thousands) 12-31-03 06-30-04 -------- -------- o Assets $ 495,751 $ 500,586 o Loans receivable $ 298,029 $ 299,820 o Deposits $ 342,446 $ 370,700 o Equity/Assets 17.7% 14.3% o Shares Outstanding 8,670,313 7,522,044 o Branches Ten Ten o Employees (FTEs) 107 108 [LOGO] CITIZENS SOUTH BANKING CORPORATION AT A GLANCE Citizens South Banking Corporation 12-31-03 06-30-04 -------- -------- o Stock Price $ 13.95 $ 13.18 o Book Value $ 10.11 $ 9.53 o Price to Book 137.98% 138.30% o LTM EPS - basic $ 0.39 $ 0.35 o LTM EPS - diluted $ 0.39 $ 0.35 o LTM P/E Multiple 35.77x 37.66x o Quarterly Dividend $ 0.06 $ 0.065 [LOGO] CITIZENS SOUTH BANKING CORPORATION THE CITIZENS SOUTH TEAM Total Years Previous Bank Exp. Experience --------- ---------- o Kim S. Price 22 First National/ President and CEO FHLB o Paul L. Teem, Jr. 21 CSBC EVP and Chief Admin. Officer o V. Burton Brinson, Jr. 26 Wachovia EVP - Group Pres. Rowan/Iredell o Daniel M. Boyd, IV 19 First Gaston/ EVP - Group Pres. Gaston Wachovia o Gary F. Hoskins 17 CFSLA/ EVP and CFO FHLB/OTS o Michael R. Maguire 24 First Union/ SVP and Chief Credit Officer SCN o J. Stephen Huffstetler 24 First Community/ SVP - Group Pres. Financial Services First Union [LOGO] CITIZENS SOUTH BANKING CORPORATION BRANCH LOCATIONS [MAP OMITTED] [LOGO] CITIZENS SOUTH BANKING CORPORATION GROWTH OF CHARLOTTE IMPACTS CITIZENS SOUTH BANK [MAP OMITTED] o Growth of Area o Attractions o New Jobs - Replacing Textiles o Population Growth [LOGO] CITIZENS SOUTH BANKING CORPORATION GROWTH OF AREA o I-485 opens - new opportunities for CSBC [MAP OMITTED] [PHOTO OMITTED] [LOGO] CITIZENS SOUTH BANKING CORPORATION DEPOSIT MARKET SHARE - GASTON COUNTY
June 30, 2002 June 30, 2003 ------------- ------------- Amount of Percent of Financial Institution Deposits Market % Deposits Market % Growth Growth --------------------- -------- -------- -------- -------- ------ ------ 1 Branch Banking and Trust $ 539,360 30.95% $ 526,101 30.19% ($ 13,259) -2.46% 2 Wachovia Bank $ 343,031 19.69% $ 307,570 17.65% ($ 35,461) -10.34% - -------------------------------------------------------------------------------------------------------------------------- 3 Citizens South Bank $ 185,007 10.62% $ 206,949 11.88% $ 21,942 11.86% - -------------------------------------------------------------------------------------------------------------------------- 4 First Gaston Bank $ 123,823 7.11% $ 157,733 9.05% $ 33,910 27.39% 5 Bank of America $ 124,864 7.17% $ 125,295 7.19% $ 431 0.35% 6 National Bank of Commerce $ 94,246 5.41% $ 90,462 5.19% ($ 3,784) -4.02% 7 RBC Centura Bank $ 96,332 5.53% $ 89,013 5.11% ($ 7,319) -7.60% 8 Belmont Federal S&LA $ 72,570 4.16% $ 75,854 4.35% $ 3,284 4.53% 9 Cherryville Federal S&LA $ 59,417 3.41% $ 61,736 3.54% $ 2,319 3.90% 10 First National Bank of Shelby $ 39,846 2.29% $ 39,853 2.29% $ 7 0.02% 11 Fidelity Bank $ 33,984 1.95% $ 31,934 1.83% ($ 2,050) -6.03% 12 SouthTrust Bank $ 31,313 1.80% $ 29,962 1.72% ($ 1,351) -4.31% - -------------------------------------------------------------------------------------------------------------------------- Total Deposits - Gaston County $1,743,793 $1,742,462 ($ 1,331) -0.08% ==========================================================================================================================
Source: 2003 Market Share Report published by the FDIC [LOGO] CITIZENS SOUTH BANKING CORPORATION DEPOSIT MARKET SHARE - ROWAN COUNTY
June 30, 2002 June 30, 2003 ------------- ------------- Amount of Percent of Financial Institution Deposits Market % Deposits Market % Growth Growth --------------------- -------- -------- -------- -------- ------ ------ 1 Farmers & Merchants Bank $ 278,740 23.64% $ 286,456 24.98% $ 7,716 2.77% 2 National Bank of Commerce $ 252,969 21.45% $ 232,418 20.27% ($ 20,551) -8.12% 3 Wachovia Bank $ 241,920 20.51% $ 207,398 18.09% ($ 34,522) -14.27% - ------------------------------------------------------------------------------------------------------------------------- 4 Citizens South Bank $ 115,470 9.79% $ 110,538 9.64% ($ 4,932) -4.27% - ------------------------------------------------------------------------------------------------------------------------- 5 Rowan Savings Bank, SSB $ 99,813 8.46% $ 106,057 9.25% $ 6,244 6.26% 6 Bank of America $ 41,750 3.54% $ 46,792 4.08% $ 5,042 12.08% 7 Bank of the Carolinas $ 43,501 3.69% $ 45,313 3.95% $ 1,812 4.17% 8 First Charter Bank $ 39,285 3.33% $ 40,246 3.51% $ 961 2.45% 9 First Bank $ 34,997 2.97% $ 38,611 3.37% $ 3,614 10.33% 10 Fidelity Bank $ 15,895 1.35% $ 17,656 1.54% $ 1,761 11.08% 11 South Trust Bank $ 14,973 1.27% $ 15,200 1.33% $ 227 1.52% - ------------------------------------------------------------------------------------------------------------------------- Total Deposits - Rowan County $1,179,313 100.00% $1,146,685 100.00% ($ 32,628) -2.77% =========================================================================================================================
Source: 2003 Market Share Report published by the FDIC [LOGO] CITIZENS SOUTH BANKING CORPORATION DEPOSIT MARKET SHARE - IREDELL COUNTY
June 30, 2002 June 30, 2003 ------------- ------------- Amount of Percent of Financial Institution Deposits Market % Deposits Market % Growth Growth --------------------- -------- -------- -------- -------- ------ ------ 1 Branch Banking and Trust Co. $ 312,648 20.80% $ 312,345 20.78% ($ 303) -0.10% 2 Bank of America $ 266,303 17.71% $ 273,917 18.22% $ 7,614 2.86% 3 Wachovia Bank $ 243,966 16.23% $ 245,828 16.35% $ 1,862 0.76% 4 Yadkin Valley Bank & Trust $ 182,704 12.15% $ 198,827 13.23% $ 16,123 8.82% 5 First Charter National Bank $ 94,368 6.28% $ 104,876 6.98% $ 10,508 11.14% 6 Mooresville Savings Bank, SSB $ 93,061 6.19% $ 96,603 6.43% $ 3,542 3.81% 7 First Citizens Bank and Trust $ 66,686 4.44% $ 73,725 4.90% $ 7,039 10.56% 8 RBC Centura Bank $ 0 0.00% $ 71,164 4.73% $ 71,164 NA 9 SouthTrust Bank $ 44,270 2.94% $ 53,575 3.56% $ 9,305 21.02% - -------------------------------------------------------------------------------------------------------------------------- 10 Citizens South Bank $ 48,411 3.22% $ 51,752 3.44% $ 3,341 6.90% - -------------------------------------------------------------------------------------------------------------------------- 11 Community Bank $ 23,258 1.55% $ 20,690 1.38% ($ 2,568) -11.04% 12 National Bank of Commerce $ 69,500 4.62% $ 0 0.00% ($ 69,500) -100.00% - -------------------------------------------------------------------------------------------------------------------------- Total Deposits - Iredell County $1,445,175 96.13% $1,503,302 100.00% $ 58,127 4.02% ==========================================================================================================================
Source: 2003 Market Share Report published by the FDIC [LOGO] CITIZENS SOUTH BANKING CORPORATION TOTAL ASSETS [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) 12/31/2000 $252,750 12/31/2001 $447,581 12/31/2002 $492,873 12/31/2003 $495,751 6/30/2004 $500,586 [LOGO] CITIZENS SOUTH BANKING CORPORATION LOANS RECEIVABLE [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] Total Loans 1-4 Family Other ----------- ---------- ----- (in thousands) 12/31/2000 $160,691 $109,907 $ 50,784 12/31/2001 $337,535 $196,572 $140,963 12/31/2002 $302,990 $148,844 $154,146 12/31/2003 $298,029 $114,121 $183,908 6/30/2004 $299,820 $ 95,335 $204,485 [LOGO] CITIZENS SOUTH BANKING CORPORATION COMMERCIAL LOAN PORTFOLIO [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] Commercial Loans (in thousands) 12/31/2000 $ 32,601 12/31/2001 $ 76,080 12/31/2002 $ 92,933 12/31/2003 $125,373 6/30/2004 $142,225 [LOGO] CITIZENS SOUTH BANKING CORPORATION CONSUMER LOAN PORTFOLIO [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] Consumer Loans (in thousands) 12/31/2000 $18,183 12/31/2001 $64,883 12/31/2002 $61,213 12/31/2003 $58,535 6/30/2004 $62,260 [LOGO] CITIZENS SOUTH BANKING CORPORATION LOAN PORTFOLIO MIX [THE FOLLOWING TABLES WERE REPRESENTED BY PIE CHARTS IN THE PRINTED MATERIAL.] Loan Mix - 12/31/01 One-to-four family 60.4% Commercial real estate 18.6% Commercial / Industrial 2.0% Consumer 18.9% Total 100.0% Loan Mix - 06/30/04 One-to-four family 31.8% Commercial real estate 43.4% Commercial / Industrial 4.1% Consumer 20.8% Total 100.0% [LOGO] CITIZENS SOUTH BANKING CORPORATION NONPERFORMING ASSETS TO TOTAL ASSETS [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] 12/31/2000 0.19% 12/31/2001 0.59% 12/31/2002 0.37% 12/31/2003 0.14% 6/30/2004 0.20% [LOGO] CITIZENS SOUTH BANKING CORPORATION TOTAL DEPOSITS [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) 12/31/2000 $167,931 12/31/2001 $353,692 12/31/2002 $340,862 12/31/2003 $342,446 6/30/2004 $370,700 [LOGO] CITIZENS SOUTH BANKING CORPORATION DEPOSIT PORTFOLIO MIX [THE FOLLOWING TABLES WERE REPRESENTED BY PIE CHARTS IN THE PRINTED MATERIAL.] Deposit Mix - 12/31/01 DDAs 9.4% Savings / MMDA 20.8% Time Deposits 69.8% Total 100.0% Deposit Mix - 09/30/04 DDAs 13.0% Savings / MMDA 25.0% Time Deposits 62.1% Total 100.0% [LOGO] CITIZENS SOUTH BANKING CORPORATION NET INTEREST MARGIN [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] 12/31/2000 2.92% 12/31/2001 2.52% 12/31/2002 3.17% 12/31/2003 2.67% 6/30/2004 2.58% [LOGO] CITIZENS SOUTH BANKING CORPORATION MARGIN IMPROVEMENT PLAN >> Fund commercial and consumer loan growth over the next 24 months from MBS cash flows and maturing investments ($50 to $75 million); >> Continue to grow DDA's and other non-time deposits; >> Balance sheet positioned to benefit from moderate rate increases (positive gap); >> 1-4 mortgage loan prepayments will slow with rising rates facilitating improved loan growth [LOGO] CITIZENS SOUTH BANKING CORPORATION NONINTEREST OPERATING INCOME [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) 12/31/2000 $2,202 12/31/2001 $2,438 12/31/2002 $3,484 12/31/2003 $3,829 6 mos ended 06/30/04 $2,006 [LOGO] CITIZENS SOUTH BANKING CORPORATION Bank-Like Interest Sensitivity ONE YEAR CUMULATIVE GAP TO TOTAL ASSETS [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] 12/31/2000 -21.00% 12/31/2001 -8.70% 12/31/2002 11.95% 12/31/2003 7.72% 3/31/2004 14.93% [LOGO] CITIZENS SOUTH BANKING CORPORATION QUARTERLY DILUTED EPS [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] 3/31/2001 $0.06 6/30/2001 $0.06 9/30/2001 $0.05 12/31/2001 $0.03 3/31/2002 $0.11 6/30/2002 $0.13 9/30/2002 $0.14 12/31/2002 $0.14 3/31/2003 $0.14 6/30/2003 $0.13 9/30/2003 $0.01 12/31/2003 $0.11 3/31/2004 $0.12 6/30/2004 $0.12 [LOGO] CITIZENS SOUTH BANKING CORPORATION CAPITAL TO ASSETS RATIO [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] 12/31/00 15.73% 12/31/01(1) 9.30% 12/31/02(2) 19.56% 12/31/03 17.68% 6/30/04 14.32% (1) Innes Street Acquisition (2) Second Step Stock Conversion [LOGO] CITIZENS SOUTH BANKING CORPORATION SHARES OUTSTANDING [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.] (in thousands) 12/31/2000 4,219 12/31/2001 4,209 12/31/2002(1) 9,063 12/31/2003 8,670 6/30/2004 7,522 (1) Second step conversion on 09-30-02 which increased number of shares by approximately 5.3 million. [LOGO] CITIZENS SOUTH BANKING CORPORATION KBW CONFERENCE 2003 VISION AND BUSINESS STRATEGY 2004 I. Create a Bank-Like Organization CSBC Grade ---------- A. Management / Culture B- B. Transitioning Balance Sheet B+ C. Grow Market Share B D. Generate Noninterest Sources B of Revenue E. Reduce Interest Rate Risk B+ [LOGO] CITIZENS SOUTH BANKING CORPORATION KBW CONFERENCE 2003 VISION AND BUSINESS STRATEGY 2004 CSBC Grade ---------- II. Franchise Development C A. De novo Offices 1. Mooresville 2. Belmont 3. York County, SC B. Operations Center Consolidation C. Branch / Corporate Office Relocation [LOGO] CITIZENS SOUTH BANKING CORPORATION KBW CONFERENCE 2003 VISION AND BUSINESS STRATEGY 2004 III. Enhance Shareholder Value CSBC Grade ---------- A. Leverage Capital B+ 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 A- 1. Execute Stock Repurchase Plan 2. Evaluate Dividend Policy [LOGO] CITIZENS SOUTH BANKING CORPORATION 2004 PROJECTS ON THE HORIZON >> Kickoff Hispanic Banking Initiative - Hired Hispanic Management - Pursuing Alliance with Mexican Bank >> Expand Investment / Brokerage Services - Trust Company Investment - Wealth Management - Human Talent [LOGO] CITIZENS SOUTH BANKING CORPORATION WHY OWN CSBC o Management Team (Bankers Converting Thrift) o Thrift to Bank Balance Sheet Transformation o Thrift to Bank Cultural Transformation o Dynamic Market - Charlotte, NC Region o Proven Ability to Leverage Capital o Attractive Price o Margin Improvement Plan [LOGO] CITIZENS SOUTH BANKING CORPORATION TOTAL RETURN PERFORMANCE [LINE CHART OMITTED]
Period Ending Index 04/13/98 12/31/98 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 06/30/04 Citizens South Banking Corporation 10,000 13,094 11,648 11,517 16,120 23,843 33,225 31,683 Russell 2000 10,000 8,864 10,748 10,423 10,682 8,494 12,507 13,354 SNL Southeast Thrift Index 10,000 7,926 7,864 7,740 11,834 13,882 21,052 21,069
Source : SNL Financial LC, Charlottesville, VA [LOGO] CITIZENS SOUTH BANKING CORPORATION We thank you for your interest in "CSBC" [LOGO] CITIZENS SOUTH BANKING CORPORATION -----END PRIVACY-ENHANCED MESSAGE-----