SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
For the fiscal year ended December 31, 2002
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED].
For the transition period from _______________ to ______________________
Commission File Number 000-23971
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Citizens South Bank Employees' Savings & Profit Sharing Plan and Trust
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Citizens South Banking Corporation
245 West Main Avenue
P.O. Box 2249
Gastonia, North Carolina 28053-2249
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SUMMARY ANNUAL REPORT
FOR CITIZENS SOUTH BANK EMPLOYEES' SAVINGS &
PROFIT SHARING PLAN AND TRUST
This is a summary of the annual report for the Citizens South Bank
Employees' Savings & Profit Sharing Plan and Trust, EIN 56-0233080, Plan No.
004, for the period January 1, 2002 through December 31, 2002. The annual report
has been filed with the Employee Benefits Security Administration, U.S.
Department of Labor, as required under the Employee Retirement Income Security
Act of 1974 (ERISA).
Basic Financial Statement
Benefits under the plan are provided through a trust fund. Plan expenses
were $359,625. These expenses included $340,487 in benefits paid to participants
and beneficiaries and $16,391 in other expenses. A total of 96 persons were
participants in or beneficiaries of the plan at the end of the plan year,
although not all of these persons had yet earned the right to receive benefits.
The value of plan assets, after subtracting liabilities of the plan, was
$3,882,511 as of December 31, 2002, compared to $3,166,986 as of January 1,
2002. During the plan year the plan experienced an increase in its net assets of
$715,525. This increase includes unrealized appreciation and depreciation in the
value of plan assets; that is, the difference between the value of the plan's
assets at the end of the year and the value of the assets at the beginning of
the year or the cost of assets acquired during the year. The plan had total
income of $1,075,150 including employer contributions of $89,071, employee
contributions of $255,912, and earnings from investments of $444,477.
Your Rights To Additional Information
You have the right to receive a copy of the full annual report, or any part
thereof, on request. The items listed below are included in that report:
1. financial information; and
2. information regarding any common or collective trusts, pooled separate
accounts, master trusts or 103-12 investment entities in which the plan
participates.
To obtain a copy of the full annual report, or any part thereof, write or
call Citizens South Bank, PO Box 2249 245 West Main Avenue, Gastonia, NC
28053-2249, (704) 868-5200.
You also have the right to receive from the plan administrator, on request
and at no charge, a statement of the assets and liabilities of the plan and
accompanying notes, or a statement of income and expenses of the plan and
accompanying notes, or both. If you request a copy of the full annual report
from the plan administrator, these two statements and accompanying notes will be
included as part of that report.
You also have the legally protected right to examine the annual report at
the main office of the plan (Citizens South Bank, PO Box 2249, 245 West Main
Avenue, Gastonia, NC 28053-2249) and at the U.S. Department of Labor in
Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon
payment of copying costs. Requests to the Department should be addressed to:
Public Disclosure Room, Room N1513, Employee Benefits Security Administration,
U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
CITIZENS SOUTH BANK EMPLOYEES'
SAVINGS & PROFIT SHARING PLAN AND TRUST
Date: June 24, 2003 By: /s/ Paul L. Teem, Jr.
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Name: Paul L. Teem, Jr.
Title: Executive Vice President,
Secretary and Chief
Administrative Officer