Citizens South
Banking Corporation
Banking Corporation
Keefe, Bruyette & Woods, Inc.
Community Bank Investor Conference
New York, NY
July 26-28, 2010
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.
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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Agenda
• Overview
• Strategy / Markets / Management
• Financial Performance
• FDIC-Assisted Acquisition of Bank
of Hiawassee
of Hiawassee
• 2010 Outlook
• Q & A
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Overview
• Largest community bank headquartered in Charlotte region
• Founded in 1904
• Converted from a MHC in 1998
• Fully Public in 2001
• Three acquisitions since 2001 (one FDIC-assisted)
• Assets of $1.1 billion
• 16 offices in Charlotte region - 5 in North Georgia
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Investment Highlights
• Attractive branch footprint in growth markets
• Experienced management team
• Strong asset quality and capital position
• Proven acquirer and integrator
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Citizens South Headquarters
Current Locations
Market Area-2010
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Charlotte Market Data
• Eight Fortune 500 companies are headquartered in Charlotte.(1)
• Housing prices in the market have stabilized.(2)
• Increasing business diversification is a source of strength.
• NASCAR
• Energy
• Technology
(1) Charlotte Chamber of Commerce
(2) Case-Shiller home-price index, April 2010
Charlotte Area's Fortune 500 Headquarters | ||
Name | Revenue | Rank |
Bank of America (Banking) | $150.5 billion | 5 |
Lowe's (Retail) | $47.2 billion | 42 |
Duke Energy (Utilities) | $12.7 billion | 181 |
Nucor (Metals) | $11.2 billion | 206 |
Family Dollar (Retail) | $7.4 billion | 305 |
Goodrich Corp. (Aerospace and Defense) | $6.7 billion | 334 |
Sonic Automotive (Automotive Retailing) | $6.3 billion | 345 |
SPX (Electronics) | $4.9 billion | 427 |
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Experienced Management
Name and Experience
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Financial Performance
Gary F. Hoskins
Executive Vice President
Chief Financial Officer
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Balance Sheet
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Financial Performance
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Stock Price (07/22/2010) | $5.16 |
Tangible Book Value (06/30/2010) | $6.73 |
Price to Tangible Book Value | 76.7% |
Dividend Yield ($0.16) | 3.1 % |
NASDAQ Global Market | CSBC |
Stock Information
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Non-Covered Loan Portfolio
Composition
Composition
All data as of 06/30/2010
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Asset Quality
All data as of 06/30/2010
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Nonperforming Loans by Type
All data as of 06/30/2010
Refers to non-covered loans only |
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All data as of 06/30/2010
Deposit Composition
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Net Interest Margin
Note: Net interest margin is calculated on a fully tax equivalent basis. |
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FDIC-Assisted Acquisition of
Bank of Hiawassee
Dan M. Boyd
Executive Vice President
Chief Operating Officer
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Bank of Hiawassee Acquisition
• Closed March 19, 2010
• Five offices in North Georgia along North Carolina border
• Bank of Hiawassee had over $300 million in assets
• Approximately $227 million in loans
• Approximately $295 million in deposits
• Located in Northeast Georgia
• Over 100 year old with “sticky” deposits
• FDIC assistance created $10 million after-tax BPO
• $15 million capital raise - private placement
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Georgia Franchise
• Successfully hired experienced
North Georgia management
North Georgia management
• Data Conversion - July 23,
2010
2010
• $6.0 Million estimated cost
saves
saves
• 80 % / 95% FDIC loss-share
agreement
agreement
• Numerous additional FDIC-
assisted opportunities in North
Georgia to fill out franchise
footprint
assisted opportunities in North
Georgia to fill out franchise
footprint
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2010 Outlook and Priorities
Kim S. Price
President
Chief Executive Officer
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Long Term Objectives
• Create the dominant community banking franchise in our markets
• Focus on gathering core deposits
• Asset Quality - Job One
• Personal attention to our customers
• Pricing and growth discipline
• Continued interest in FDIC-assisted acquisitions
• Repay TARP
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• Capital Strength
• Solid Asset Quality
• Strong Core Deposit Franchise
• Market Share Strength
• Experienced Management Team
• Opportunistic Position
• Attractive Valuation
Why Own Citizens South Stock?
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Thank You
We appreciate your interest in
Citizens South Banking Corporation
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Contact Information
Citizens South Banking Corporation
Nasdaq: CSBC
519 South New Hope Road
Gastonia, NC 28054
For More Information Contact
Kim S. Price
President and Chief Executive Officer
Citizens South Banking Corporation
(704) 884-2260
Welcome to the South
Banks used to be symbols of
responsibility and security.
responsibility and security.
For us, they still are. Thank you
for your interest in Citizens
South Banking Corporation.
for your interest in Citizens
South Banking Corporation.
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