Attached files
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| 8-K/A - AMENDMENT NO. 1 TO FORM 8-K - CITIZENS SOUTH BANKING CORP | d8ka.htm |
 March
2010 FDIC-Assisted Acquisition of Bank of Hiawassee $15 Million Capital Raise NASDAQ / CSBC Citizens South Banking Corporation Exhibit 99.1 |
 2 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. There can be no assurance the such factors will not affect the accuracy of such forward looking statements. Additionally, there can be no assurance that the Company will realize the anticipated benefits related to the Bank of Hiawassee acquisition. The Company undertakes no obligation to publicly revise any forward looking statements to reflect events and circumstances that may arise after the date hereof. |
 3 Transaction Summary Acquired $300 million in assets and assumed $324 million in liabilities of Hiawassee, Georgia-based Bank of Hiawassee Loss sharing agreement covers substantially all acquired loans, reimburses 80% of losses up to $102 million and 95% of losses thereafter Citizens South increases total assets to over $1.1 billion and expands footprint to 21 branches across three states Completed simultaneous capital raise of $15 million |
 4 Deposit Market Share Columbia Knoxville Spartanburg Greenville South Carolina Georgia Tennessee Charlotte Hiawassee Blairsville Greensboro Atlanta North Carolina Chattanooga Winston-Salem Columbia Knoxville Spartanburg Greenville South Carolina Georgia Tennessee Charlotte Hiawassee Blairsville Greensboro Atlanta North Carolina Chattanooga Winston-Salem CSBC Bank of Hiawassee Total Market Deposits Share Rank Institution ($MM) (%) Branches 1 CSBC Pro Forma $263.7 61.75 3 2 United Community Banks Inc. 115.6 27.08 1 3 Stephens Federal Bank 24.0 5.61 1 4 SCBT Financial Corp. 23.7 5.55 1 Market Total $427.0 6 Total Market Deposits Share Rank Institution ($MM) (%) Branches 1 United Community Banks Inc. $1,285.3 87.52 3 2 Community & Southern Hldgs Inc 115.6 7.87 1 3 CSBC Pro Forma 63.2 4.30 1 4 Cadence Financial Corp. 4.5 0.31 1 Market Total $1,468.5 6 Total Market Deposits Share Rank Institution ($MM) (%) Branches 1 United Community Banks Inc. $277.2 49.92 3 2 Community & Southern Hldgs Inc 100.9 18.17 1 3 BB&T Corp. 55.1 9.93 2 4 Appalachian Bancshares Inc. 34.0 6.12 1 5 CSBC Pro Forma 33.2 5.98 1 6 Cadence Financial Corp. 29.0 5.23 1 7 SunTrust Banks Inc. 25.9 4.66 1 Market Total $555.3 10 Towns County, GA Union County, GA Fannin County, GA Source: SNL Financial Includes deposit market share data for Bank of Hiawassee’s counties of operation Data as of 6/30/09 |
 5 1-4 Family 34% C&D 22% Consumer / Other 1% CRE 33% C&I 6% Multifamily 4% 1-4 Family 24% Multifamily 3% C&I 6% CRE 25% Consumer / Other 4% C&D 38% 1-4 Family 31% Multifamily 3% C&I 6% CRE 31% Consumer / Other 2% C&D 27% Loan Portfolio – 12/31/09 Citizens South Bank Bank of Hiawassee Pro Forma* Loan Portfolio ($000) Amount % of Total Construction & Land Development $131,259 21.60 % 1-4 Family 209,073 34.40 Multifamily Residential 21,857 3.60 Commercial Real Estate 202,409 33.31 Commercial & Industrial 39,158 6.44 Consumer / Other 3,943 0.65 Gross Loans & Leases $607,699 100.00 % Loan Portfolio ($000) Amount % of Total Construction & Land Development $108,400 38.45 % 1-4 Family 68,589 24.33 Multifamily Residential 7,974 2.83 Commercial Real Estate 70,212 24.90 Commercial & Industrial 16,339 5.80 Consumer / Other 10,425 3.70 Gross Loans & Leases $281,939 100.00 % Loan Portfolio ($000) Amount % of Total Construction & Land Development $239,659 26.94 % 1-4 Family 277,662 31.21 Multifamily Residential 29,831 3.35 Commercial Real Estate 272,621 30.64 Commercial & Industrial 55,497 6.24 Consumer / Other 14,368 1.62 Gross Loans & Leases $889,638 100.00 % Source: SNL Financial Data bank level as of 12/31/09 *Estimated pro forma does not include purchase accounting marks or possible exclusion of select
loans |
 6 Deposit Composition – 12/31/09 Citizens South Bank Bank of Hiawassee Pro Forma* Deposit Portfolio ($000) Amount % of Total Demand Deposits $46,117 7.54 % NOW Accounts 113,564 18.56 Money Market & Savings 131,662 21.51 Retail Time Deposits 178,102 29.10 Jumbo Time Deposits 142,578 23.30 Total Deposits $612,023 100.00 % Deposit Portfolio ($000) Amount % of Total Demand Deposits $16,158 4.76 % NOW Accounts 24,779 7.30 Money Market & Savings 75,264 22.16 Retail Time Deposits 142,186 41.87 Jumbo Time Deposits 81,210 23.91 Total Deposits $339,597 100.00 % Deposit Portfolio ($000) Amount % of Total Demand Deposits $62,275 6.54 % NOW Accounts 138,343 14.54 Money Market & Savings 206,926 21.74 Retail Time Deposits 320,288 33.66 Jumbo Time Deposits 223,788 23.52 Total Deposits $951,620 100.00 % NOW Accounts 7% Money Market & Savings 22% Jumbo Time Deposits 24% Retail Time Deposits 42% Demand Deposits 5% NOW Accounts 19% Demand Deposits 8% Retail Time Deposits 29% Jumbo Time Deposits 23% Money Market & Savings 22% NOW Accounts 15% Demand Deposits 7% Retail Time Deposits 34% Jumbo Time Deposits 24% Money Market & Savings 22% Source: SNL Financial Data bank level as of 12/31/09 *Estimated pro forma does not include possible exclusion of select deposits
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 7 Summary Estimated after-tax gain on bargain purchase option of approximately $10 million Based on preliminary analysis and subject to significant modification, the Company currently estimates the transaction will contribute approximately $0.16 to $0.24 to earnings per share for each of the next few years, pro forma for the capital raise Slightly accretive to tangible book value per share at closing, pro forma for the capital raise Attractive core deposit base from 100+ year operating history Approximately neutral to TCE/TA, assuming conversion of preferred securities Strong pro forma capital ratios Loan loss protection on substantially all acquired loans |
 March
2010 FDIC-Assisted Acquisition & Capital Raise NASDAQ / CSBC Citizens South Banking Corporation |