EXHIBIT 99.1
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Citizens South Banking Corporation
Janney Montgomery Scott
The Bank and Thrift Conference
Philadelphia, PA
May 13-14, 2010
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Forward Looking Statements
Statements contained in this presentation, which are
not historical facts, are forward looking statements. The
Company’s senior management or directors may from
time to time make public forward looking statements
concerning matters herein. Such forward looking
statements are estimates reflecting the best judgment of
senior management or the directors based on current
information. A number of factors that could affect the
accuracy of such forward looking statements are identified
in the public filings made by the Company with the
Securities and Exchange Commission on Forms 10-Q
and 10-K. The Company undertakes no obligation to
publicly revise any forward looking statements to reflect
events and circumstances that may arise after the date
hereof. There can be no assurance the such factors will
not affect the accuracy of such forward looking
statements.
not historical facts, are forward looking statements. The
Company’s senior management or directors may from
time to time make public forward looking statements
concerning matters herein. Such forward looking
statements are estimates reflecting the best judgment of
senior management or the directors based on current
information. A number of factors that could affect the
accuracy of such forward looking statements are identified
in the public filings made by the Company with the
Securities and Exchange Commission on Forms 10-Q
and 10-K. The Company undertakes no obligation to
publicly revise any forward looking statements to reflect
events and circumstances that may arise after the date
hereof. There can be no assurance the such factors will
not affect the accuracy of such forward looking
statements.
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Overview of Presentation
Ø Corporate Profile
Ø Charlotte Market Data
Ø Stock / Financial Information
Ø FDIC-Assisted Acquisition of
Bank of Hiawassee
Bank of Hiawassee
Ø CSBC Business Strategy
Ø Historical Financial Performance
Ø Why own CSBC stock?
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Corporate Profile
Ø Founded in 1904
Ø Converted from a Mutual in 1998
Ø Three acquisitions since 2001
Ø One FDIC-assisted
Ø Twenty-one offices in NC, SC, and GA
Ø Assets exceeding $1.1 billion
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Market Area and Branch Footprint
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ØEight Fortune 500 companies are
represented in Charlotte.
represented in Charlotte.
ØHousing prices in the market have
recently stabilized. (1)
recently stabilized. (1)
ØIncreasing business diversification is a
source of strength.
source of strength.
(1)Case-Shiller home-price index
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03-31-2010
Total Assets $ 1,132,652
Gross Loans $ 787,643
Total Deposits $ 884,127
Common Equity $ 67,500
TARP $ 20,610
Preferred Stock $ 8,280
Total Capital $ 96,390
Balance Sheet Data (000’s)
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Stock Information
Stock Price (05-10-2010) $ 6.15
Price to BV 83.22 %
Price to TBV 85.89 %
Dividend Yield ($0.16) 2.6 %
NASDAQ Global Market - CSBC
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Selected Financial Ratios
03-31-2010
Net Interest Margin 3.20 %
NPA’s / Total Assets 1.78 %
Efficiency Ratio (1) 77.35 %
TCE / Tang. Assets (2) 6.51 %
Total RB-Capital Ratio 15.53 %
(1) Efficiency Ratio excludes $18.7 million gain on acquisition of Bank of
Hiawassee in the quarter ended March 31, 2010.
Hiawassee in the quarter ended March 31, 2010.
(2) Includes 8,280 shares of convertible preferred stock that are expected to
convert to 1,840,000 shares of common stock.
convert to 1,840,000 shares of common stock.
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Net Interest Margin
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Note: Peer group is composed of regional institutions of a comparable financial condition, including: First Bancorp. SCBT Financial
Corporation, First Community Bancshares, Inc., Yadkin Valley Financial Corporation, FNB United Corporation, NewBridge Bancorp,
Southern Community Financial Corporation, Capital Bank Corporation, BNC Bancorp, Bank of Granite Corporation, Crescent Financial
Corporation, Peoples Bancorp of North Carolina, Inc., and American National Bankshares, Inc.
Corporation, First Community Bancshares, Inc., Yadkin Valley Financial Corporation, FNB United Corporation, NewBridge Bancorp,
Southern Community Financial Corporation, Capital Bank Corporation, BNC Bancorp, Bank of Granite Corporation, Crescent Financial
Corporation, Peoples Bancorp of North Carolina, Inc., and American National Bankshares, Inc.
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(1) Includes only “non-covered” assets
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Acquisition of Bank of Hiawassee
Ø Acquisition date-March 19, 2010
Ø At acquisition, Bank of Hiawassee had over
$300 million in assets
$300 million in assets
Ø Approximately $227 million in loans
Ø Approximately $295 million in deposits
Ø Located in Northeast Georgia
Ø Over 100 years old
Ø Five full service locations
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2010 Key Points
Ø Well Capitalized
- 15.53 % Total Risk-based Capital
Ø Strong Credit Quality Ratios
- 1.78 % NPAs to Total Assets
Ø FDIC-assisted acquisition of Bank of
Hiawassee
Hiawassee
Ø $15 million capital raise through private
placement alongside acquisition
placement alongside acquisition
Note: Ratios are as of March 31, 2010
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Citizens South Long Term Objectives
Ø Create the Dominant Community Banking
Franchise in the Markets that We Serve
Franchise in the Markets that We Serve
Ø Focus on Gathering Core Deposits
Ø Asset Quality - Job One
Ø Personal Attention to our Customers
Ø Pricing and Growth Discipline
Ø Continued Interest in FDIC-assisted Acquisitions
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Nonperforming Loans
(Includes non-covered loans only)
(Includes non-covered loans only)
Non-covered Loan Portfolio (March 31, 2010) | Balance (000's) | NPL’s (000’s) | % Portfolio Non- performing |
Residential Permanent Loans | $ 92,023 | $ 1,618 | 1.76% |
Residential Construction Loans | $ 9,869 | $ 443 | 4.49% |
Commercial Construction Loans | $ 11,647 | $ - | 0.00% |
Land Loans | $ 42,482 | $ 6,148 | 14.47% |
Residential A&D Loans | $ 34,321 | $ 2,890 | 8.42% |
Multifamily Property Loans | $ 25,378 | $ - | 0.00% |
Other Commercial RE Loans | $235,479 | $ 1,422 | 0.60% |
Commercial Business Loans | $ 37,523 | $ 131 | 0.35% |
Consumer Loans | $117,470 | $ 1,083 | 0.92% |
Total Non-covered Loans | $606,192 | $13,735 | 2.27% |
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Total Core Non-Time Deposits
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Why Own CSBC Stock?
Ø Capital Strength
Ø Solid Asset Quality
Ø Strong Core Deposit Franchise
Ø Market Share Strength
Ø Experienced Management Team
Ø Opportunistic Position
Ø Attractive Valuation
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We appreciate your interest
in Citizens South Banking
Corporation.
in Citizens South Banking
Corporation.
Thank You