Citizens South Banking Corporation (Nasdaq:CSBC), the holding
company for Citizens South Bank (the "Bank"), released its
unaudited results of operations and other financial information for
the three-month and twelve-month periods ended December 31, 2011.
Highlights from the fourth quarter of 2011 are as follows:
- Net loss available to shareholders totaled $2.3 million, or
$0.20 per diluted share, for the quarter ended December 31, 2011.
For the year ended December 31, 2011, the Company reported a net
loss available to shareholders of $1.3 million, or $0.11 per
diluted share.
- Excluding dividends and accretion of discount on preferred
stock, the Company had a net loss of $1.5 million, or $0.13 per
diluted share, for the fourth quarter of 2011, and net income of
$241,000, or $0.02 per diluted share, for the 12 months ending
December 31, 2011.
- In the fourth quarter of 2011, the Company repurchased all
outstanding warrants related to preferred stock issued by the U.S.
Treasury Department under the Troubled Asset Relief Program
("TARP"). The TARP preferred stock has been fully repaid. The
expense related to repurchasing these warrants amounted to
$584,000.
- The Company's net interest margin of 3.84% for the fourth
quarter of 2011 increased by eight basis points on a linked quarter
basis and by 59 basis points compared to the fourth quarter of
2010.
- The Company's pre-tax, pre-credit earnings of $3.5 million for
the fourth quarter of 2011 were $660,000 higher than the Company's
pre-tax, pre-credit earnings in the fourth quarter of 2010 and flat
on a linked quarter basis.
- Non-covered classified loans decreased by $6.6 million, or
18.8%, on a linked quarter basis to $28.7 million. Non-covered
classified assets, which includes both classified loans and other
real estate owned, decreased by $5.9 million, or 13.6%, on a linked
quarter basis to $37.7 million, or 36.5% of tier 1 capital.
- Nonperforming non-covered assets decreased by $986,000, or
3.4%, on a linked quarter basis to 2.57% of total assets at
December 31, 2011, compared to 2.61% of total assets at September
30, 2011.
- Non-covered past due loans 30 to 89 days delinquent and still
accruing interest totaled $4.9 million, or 0.86% of total
non-covered loans, at December 31, 2011. This represents the
fourth consecutive quarter that past due non-covered accruing loans
have been less than 1.0% of total non-covered loans.
- The Company's non-time core deposits grew by $2.7 million, or
2.3% annualized, during the fourth quarter of 2011 to $463.2
million at December 31, 2011.
President Kim S. Price stated, "While we are disappointed with
the loss in the fourth quarter, we believe that the steps we are
taking ultimately strengthen our balance sheet and position the
Company for an accelerated pace toward normalized
earnings. Financial metrics in almost every category including
nonperforming assets, classified assets, net interest margin and
loan demand are all trending positive. While the process of
recovery has been littered with stops and starts, we currently have
the clearest vision for normality than we have had in
sometime."
Fourth Quarter Financial
Results:
Asset Quality
During the fourth quarter of 2011 the Company conducted an
extensive internal loan review and recognized net loan charge-offs
of $5.9 million. These charge-offs resulted from re-valuations
on some properties and also from resolutions of problem assets
where a portion of the loan was charged-off. The net result of
these charge-offs was an overall reduction in nonperforming
non-covered assets from 2.61% of total assets at September 30,
2011, to 2.57% of total assets at December 31, 2011. In
addition, our classified assets, which totaled $43.6 million at
September 30, 2011, declined to $37.7 million at December 31, 2011.
This marks the second consecutive quarter of decline in
nonperforming non-covered loans and the fourth consecutive quarter
of decline in classified assets.
In conjunction with our internal loan portfolio review, we
undertook a forward looking evaluation of our portfolio. As a
result of that review and our declining levels of non-covered
nonperforming assets and classified assets, we released $1.2
million of our accumulated loan loss reserves, leaving our level of
loan loss reserves at 2.04% of total non-covered loans at December
31, 2011.
Loans and Core Deposits
We are experiencing some positive trends in local economic
conditions and loan demand continues to improve
gradually. While total non-covered loans decreased by $7.9
million on a linked quarter basis, or 5.5% annualized, this
decrease was largely due to two large loan repayments and the
elevated level of loan charge-offs during the quarter. Despite
this decrease in outstandings, the Company originated $36.0 million
in loans during the fourth quarter of 2011 and the Company's $33.5
million loan pipeline remains strong. Management continues to
focus on increasing business loans to the professional market,
owner-occupied commercial real estate loans, and residential and
personal loans. Our realigned lending team continues to be
more effective in developing quality business relationships and we
are on target with our Small Business Lending Fund initiative which
has reduced our preferred stock dividend rate from 5.0% to
3.3%. We expect to continue to expand our small business
lending in 2012 which will result in further reductions in our
dividend rate.
The Company continues to experience strong non-time core deposit
growth. From December 31, 2010 to December 31, 2011, non-time core
deposits increased by $61.2 million, or 15.2%, to $463.2
million. A portion of this growth was due to the $21.9 million
in non-time core deposits that were assumed in the New Horizons
Bank acquisition. On a linked-quarter basis, non-time core
deposits increased by $2.7 million, or 2.3% annualized. This growth
in non-time core deposits was largely attributable to a continued
focus on deposit gathering as part of our relationship banking
model.
Capital Position
The Company's capital position continues to be a source of
strength and provides a competitive advantage during these
uncertain economic times. At December 31, 2011, the Bank's
total risk-based, Tier 1 risk-based, and Tier 1 leverage capital
ratios were 15.9%, 14.7%, and 9.5%, respectively, compared to
16.8%, 15.6%, and 9.7% respectively, at December 31, 2010. The
Bank exceeded the regulatory minimum capital ratios to be
considered well-capitalized by 159.4%, 244.8%, and 189.8% for total
risk-based capital, Tier 1 risk-based capital, and Tier 1 leverage
capital, respectively, at December 31, 2011.
Increasing Net Interest Income and Net Interest
Margin
The Company's net interest income for the fourth quarter of 2011
increased by $1.1 million, or 15.1%, as compared to the fourth
quarter of 2010. The primary reason for this growth was a 59
basis point increase in the Company's net interest margin from
3.25% for the three months ended December 31, 2010, to 3.84% for
the three months ended December 31, 2011. The improvement in
the net interest margin was due to a 50 basis point decrease in the
Company's cost of funds and a 13 basis point increase in the
Company's yield on assets. On a linked quarter basis, the
Company's net interest margin increased by eight basis
points. Given the Company's high level of liquidity, coupled
with strong core deposit growth, we have been able to repay
maturing time deposits or reprice these time deposits at lower
market rates at maturity. In addition, we recently
renegotiated $15.0 million of Federal Home Loan Bank advances
resulting in a 197 basis point reduction in these funding sources,
and extended these maturities for an additional 2.7
years. This restructuring should reduce our interest expense
by approximately $300,000 annually beginning in the first quarter
of 2012.
Noninterest Income and Expense
Noninterest income decreased by $289,000 to $2.0 million for the
quarter ended December 31, 2011, as compared to the quarter ended
December 31, 2010. Excluding the effects of gains from
acquisitions and losses on sale of other assets, noninterest income
decreased by $148,000, or 6.8%, for the fourth quarter of 2011
compared to the fourth quarter of 2010. This decrease was
primarily due to an $83,000 reduction in mortgage banking income
and a $72,000 reduction in other noninterest income.
Noninterest expense increased by $861,000 during the fourth
quarter of 2011 compared to the fourth quarter of 2010.
Excluding valuation adjustments and other expenses on other
real estate owned, acquisition and integration expenses, and
impairment of securities, noninterest expense increased by
$480,000, or 7.0%, during the respective fourth quarter
periods. This increase was partially due to higher
compensation and other costs related to the Bank's acquisition of
New Horizons Bank in April 2011.
About Citizens South Banking Corporation and Citizens
South
Bank
Citizens South Bank was founded in 1904 and is
headquartered in Gastonia, North Carolina. Deposits are FDIC
insured up to applicable regulatory limits. At December 31,
2011, the Company had $1.1 billion in assets with 21 full-service
offices in the Charlotte and North Georgia regions, including
Gaston, Iredell, Rowan, Mecklenburg, and Union counties in North
Carolina, York County in South Carolina, and Towns, Union, Fannin,
and Gilmer counties in Georgia. Citizens South Bank is an
Equal Housing Lender and Member, FDIC. The Bank is a
wholly-owned subsidiary of Citizens South Banking Corporation, and
shares of the common stock of the Company trade on the NASDAQ
Global Market under the ticker symbol "CSBC." The Company
maintains a website at www.citizenssouth.com that includes
information on the Company, along with a list of products and
services, branch locations, current financial information, and
links to the Company's filings with the SEC. The
Citizens South Banking Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7099 Non-GAAP
Financial Measures
This press release contains non-GAAP financial measures and
should be read along with the accompanying tables which provide a
reconciliation of non-GAAP measures to GAAP measures.
Management believes that these non-GAAP measures provide a greater
understanding of ongoing operations and enhance comparability of
results with prior periods. Non-GAAP measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under accounting principles
generally accepted in the United States ("GAAP"), and investors
should consider the company's performance and financial condition
as reported under GAAP and all other relevant information when
assessing the performance or financial condition of the
company. Non-GAAP measures have limitations as
analytical tools, and investors should not consider them in
isolation, or as a substitute for analysis of the Company's results
or financial condition as reported under GAAP.
Cautionary Statement Regarding Forward-looking Statements
This news release contains certain forward-looking statements
which include, but are not limited to, statements of our earnings
expectations, statements regarding our operating strategy, and
estimates of our future costs and benefits. These
forward-looking statements are based on our current beliefs and
expectations and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of
which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect
to future business strategies and decisions that are subject to
change. Forward-looking statements speak only as of the date they
are made and the Company is under no duty to update these
forward-looking statements to reflect circumstances or events that
occur after the date of the forward-looking statements or to
reflect the occurrence of unanticipated events. A number of factors
could cause actual conditions, events or results to differ
significantly from those described in the forward-looking
statements. Factors that could cause such a difference
include, but are not limited to, changes in general economic
conditions – either locally or nationally, competition among
depository and financial institutions, the continuation of current
revenue and expense trends, significant changes in interest rates,
unforeseen changes in the Company's markets, and legal, regulatory,
or accounting changes. The Company's reports filed from time
to time with the Securities and Exchange Commission, including the
Company's Form 10-K for the year ended December 31, 2010, describe
some of these factors.
Quarterly Financial Highlights
(unaudited) |
At and For the
Quarters Ended |
|
|
2011 |
2010 |
|
|
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|
(Dollars in thousands, except share
and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Operations: |
|
|
|
|
|
|
Interest income - taxable
equivalent |
$ 11,089 |
$ 11,308 |
$ 11,488 |
$ 10,457 |
$ 11,055 |
|
Interest expense |
2,304 |
2,554 |
2,826 |
2,855 |
3,411 |
|
Net interest income -
taxable equivalent |
8,785 |
8,754 |
8,662 |
7,602 |
7,644 |
|
Less: Taxable-equivalent
adjustment |
65 |
62 |
69 |
70 |
70 |
|
Net interest income |
8,720 |
8,692 |
8,593 |
7,532 |
7,574 |
|
Provision for loan losses |
4,635 |
1,350 |
1,700 |
3,000 |
5,000 |
|
Net interest income after loan
loss provision |
4,085 |
7,342 |
6,893 |
4,532 |
2,574 |
|
Noninterest income |
1,985 |
1,990 |
5,886 |
1,478 |
2,274 |
|
Noninterest expense |
8,779 |
8,931 |
9,270 |
7,672 |
7,918 |
|
Net income (loss) before
income taxes |
(2,709) |
401 |
3,509 |
(1,662) |
(3,070) |
|
Income tax expense
(benefit) |
(1,172) |
28 |
1,213 |
(771) |
(1,331) |
|
Net income (loss) |
(1,537) |
373 |
2,296 |
(891) |
(1,739) |
|
Dividends and accretion of
discount on preferred stock |
767 |
247 |
256 |
256 |
256 |
|
Net income (loss)
available to common shareholders |
$ (2,304) |
$ 126 |
$ 2,040 |
$ (1,147) |
$ (1,995) |
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
Net income (loss): |
|
|
|
|
|
|
Basic |
$ (0.20) |
$ 0.01 |
$ 0.18 |
$ (0.10) |
$ (0.18) |
|
Diluted |
(0.20) |
0.01 |
0.18 |
(0.10) |
(0.18) |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
Basic |
11,470,599 |
11,462,107 |
11,455,642 |
11,491,734 |
11,173,174 |
|
Diluted |
11,470,599 |
11,462,107 |
11,455,642 |
11,491,734 |
11,173,174 |
|
End of period shares
outstanding |
11,506,324 |
11,506,324 |
11,506,324 |
11,508,750 |
11,508,750 |
|
Cash dividends declared |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
|
Book value |
6.27 |
6.44 |
6.44 |
6.22 |
6.32 |
|
Tangible book value |
6.13 |
6.31 |
6.29 |
6.09 |
6.17 |
|
|
|
|
|
|
|
|
Selected Financial Performance
Ratios (annualized): |
|
|
|
|
|
|
Return on average assets |
(0.85)% |
0.05% |
0.73% |
(0.44)% |
(0.74)% |
|
Return on average common
equity |
(12.45)% |
0.68% |
11.00% |
(6.39)% |
(10.68)% |
|
Noninterest income to average
total assets |
0.73% |
0.72% |
2.12% |
0.56% |
0.85% |
|
Noninterest expense to average
total assets |
3.24% |
3.23% |
3.34% |
2.91% |
2.95% |
|
|
|
|
|
|
|
|
Operating Earnings
(Non-GAAP): |
|
|
|
|
|
|
Net income (loss) available to
common shareholders |
$ (2,304) |
$ 126 |
$ 2,040 |
$ (1,147) |
$ (1,995) |
|
(Gain) loss on acquisition, net
of tax |
(15) |
29 |
(2,695) |
155 |
(90) |
|
Gain on sale of investments,
net of tax |
-- |
(67) |
-- |
-- |
-- |
|
Other-than-temporary impairment
on securities, net of tax |
-- |
-- |
-- |
-- |
365 |
|
Acquisition and integration
expenses, net of tax |
22 |
86 |
345 |
27 |
26 |
|
Accretion of unamortized
discount on preferred stock |
584 |
-- |
-- |
-- |
-- |
|
Net operating income
(loss) |
$ (1,713) |
$ 174 |
$ (310) |
$ (965) |
$ (1,694) |
|
|
|
|
|
|
|
|
Operating net income (loss) per
common share: |
|
|
|
|
|
|
Basic |
$ (0.15) |
$ 0.02 |
$ (0.03) |
$ (0.08) |
$ (0.15) |
|
Diluted |
(0.15) |
0.02 |
(0.03) |
(0.08) |
(0.15) |
|
|
|
|
|
|
|
|
Pre-tax, pre-credit
earnings (1) |
$ 3,545 |
$ 3,545 |
$ 3,902 |
$ 2,638 |
$ 2,885 |
|
|
|
|
|
|
|
|
Operating return on average
assets |
(0.63)% |
0.06% |
(0.11)% |
(0.37)% |
(0.63)% |
|
Operating return on average
common equity |
(7.29)% |
0.73% |
(1.30)% |
(4.13)% |
(7.15)% |
|
Operating efficiency
ratio (2) |
69.52% |
67.52% |
65.92% |
69.97% |
70.49% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated using net interest
income plus noninterest income less noninterest expense adjusted
for the following items: 1) gains or losses from acquisition or
sale of investments or sale of other assets; 2)
other-than-temporary impairment on securities; 3) amortization of
intangible assets; 4) other real estate owned valuation adjustments
and expenses; and 5) acquisition and integration
expenses. |
(2) Calculated by dividing
noninterest expense by net interest income plus noninterest income
excluding the following items: 1) gains or losses from acquisition
or sale of investments; 2) other-than-temporary impairment on
securities; 3) other real estate owned valuation adjustments and
expenses; and 4) acquisition and integration expenses. |
|
|
|
|
|
|
|
|
|
Quarterly Financial Highlights
(unaudited) |
At and For the
Quarters Ended |
|
|
2011 |
2010 |
|
|
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|
(Dollars in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Information and
Ratios: |
|
|
|
|
|
|
Allowance for loan losses -
beginning of period |
$ 12,956 |
$ 12,742 |
$ 12,006 |
$ 11,924 |
$ 10,752 |
|
Add: Provision for loan
losses |
4,635 |
1,350 |
1,700 |
3,000 |
5,000 |
|
Less: Net charge-offs |
5,878 |
1,136 |
964 |
2,918 |
3,828 |
|
Allowance for loan losses - end
of period |
$ 11,713 |
$ 12,956 |
$ 12,742 |
$ 12,006 |
$ 11,924 |
|
|
|
|
|
|
|
|
Assets not covered by FDIC
loss-share agreements: |
|
|
|
|
|
|
Past due loans (30-89 days)
accruing |
$ 4,933 |
$ 4,479 |
$ 5,687 |
$ 5,692 |
$ 13,787 |
|
Past due loans (30-89 days) to
total non-covered loans |
0.86% |
0.77% |
0.99% |
0.97% |
2.34% |
|
|
|
|
|
|
|
|
Nonperforming non-covered
loans: |
|
|
|
|
|
|
One-to-four family
residential |
$ 2,407 |
$ 1,556 |
$ 1,406 |
$ 2,373 |
$ 1,864 |
|
Construction |
-- |
-- |
-- |
72 |
14 |
|
Acquisition and
development |
6,474 |
6,459 |
5,155 |
4,675 |
2,560 |
|
Commercial land |
2,631 |
3,176 |
3,167 |
4,653 |
4,360 |
|
Other commercial real
estate |
4,173 |
6,602 |
10,306 |
9,636 |
4,800 |
|
Commercial business |
168 |
306 |
201 |
309 |
287 |
|
Consumer |
2,958 |
2,426 |
2,440 |
2,639 |
2,529 |
|
Total nonperforming non-covered
loans |
18,811 |
20,525 |
22,675 |
24,357 |
16,414 |
|
Other nonperforming non-covered
assets |
8,936 |
8,208 |
10,723 |
8,463 |
7,650 |
|
Total nonperforming non-covered
assets |
$ 27,747 |
$ 28,733 |
$ 33,398 |
$ 32,820 |
$ 24,064 |
|
|
|
|
|
|
|
|
Allowance for loan losses to
total non-covered loans |
2.04% |
2.23% |
2.22% |
2.05% |
2.02% |
|
Net charge-offs to average
non-covered loans (annualized) |
4.07% |
0.79% |
0.66% |
2.00% |
2.59% |
|
Nonperforming non-covered loans
to non-covered loans |
3.28% |
3.53% |
3.95% |
4.15% |
2.79% |
|
Nonperforming non-covered
assets to total assets |
2.57% |
2.61% |
2.99% |
3.15% |
2.26% |
|
Nonperforming non-covered
assets to total non-covered loans and other real estate owned |
4.76% |
4.87% |
5.72% |
5.51% |
4.03% |
|
|
|
|
|
|
|
|
Assets covered
by FDIC loss-share agreements: |
|
|
|
|
|
|
Past due loans (30-89 days)
accruing (3) |
$ 5,372 |
$ 6,430 |
$ 12,987 |
$ 7,006 |
$ 5,767 |
|
Past due loans (30-89 days) to
total covered loans |
3.36% |
3.81% |
7.34% |
5.09% |
3.91% |
|
|
|
|
|
|
|
|
Total covered nonperforming
loans (4) |
$ 44,056 |
$ 37,074 |
$ 35,830 |
$ 24,791 |
$ 25,541 |
|
Other covered nonperforming
assets |
8,746 |
12,765 |
14,127 |
8,225 |
7,108 |
|
Total covered nonperforming
assets |
$ 52,802 |
$ 49,839 |
$ 49,957 |
$ 33,016 |
$ 32,649 |
|
|
|
|
|
|
|
|
Classified
Assets (5) |
|
|
|
|
|
|
Non-covered classified
loans |
$ 28,727 |
$ 35,357 |
$ 41,515 |
$ 42,915 |
$ 44,532 |
|
OREO and other nonperforming
assets |
8,936 |
8,208 |
10,723 |
8,463 |
7,650 |
|
Total classified assets |
$ 37,663 |
$ 43,565 |
$ 52,238 |
$ 51,378 |
$ 52,182 |
|
|
|
|
|
|
|
|
Tier 1 capital |
$ 103,069 |
$ 104,487 |
$ 105,088 |
$ 102,628 |
$ 103,233 |
|
|
|
|
|
|
|
|
Total classified assets to Tier 1
capital |
36.54% |
41.69% |
49.71% |
50.06% |
50.55% |
|
|
|
|
|
|
|
|
(3) The contractual balance of
past due loans covered by FDIC loss-share agreements totaled
$7.0 million, $7.7 million $13.7 million, $8.2 million and $7.0 at
December 31, 2010, March 31, 2011, June 30, 2011, September 30,
2011, and December 31, 2011, respectively. |
(4) The contractual balance of
nonperforming loans covered by FDIC loss-share agreements
totaled $31.2 million, $28.7 million, $39.3 million, $48.8 million
and $55.4 million at December 31, 2010, March 31, 2011, June 30,
2011, September 30, 2011, and December 31, 2011, respectively. |
(5) Excludes loans and OREO
covered by FDIC loss-share agreements. |
|
|
|
|
|
|
Quarterly Financial Highlights
(unaudited) |
At and For the
Quarters Ended |
|
2011 |
2010 |
|
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
(Dollars in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
(annualized): |
|
|
|
|
|
Yield on earning assets |
4.81% |
4.84% |
4.95% |
4.62% |
4.68% |
Cost of funds |
1.01% |
1.11% |
1.23% |
1.32% |
1.51% |
Net interest rate spread |
3.80% |
3.73% |
3.72% |
3.30% |
3.17% |
Net interest margin (taxable
equivalent) |
3.84% |
3.76% |
3.78% |
3.42% |
3.25% |
|
|
|
|
|
|
Selected End of Period
Balances: |
|
|
|
|
|
Loans covered by FDIC
loss-share agreements |
$ 159,688 |
$ 168,940 |
$ 177,047 |
$ 137,758 |
$ 147,576 |
Loans not covered by FDIC
loss-share agreements |
574,100 |
582,065 |
573,603 |
586,897 |
588,934 |
Total loans, net |
733,788 |
751,005 |
750,650 |
724,655 |
736,510 |
Investment securities |
147,899 |
132,443 |
156,328 |
154,006 |
111,586 |
Total interest-earning
assets |
895,003 |
913,910 |
927,463 |
887,706 |
914,455 |
Total assets |
1,080,460 |
1,098,974 |
1,117,993 |
1,041,444 |
1,064,487 |
Noninterest-bearing
deposits |
87,740 |
87,413 |
82,305 |
78,342 |
70,056 |
Interest-bearing deposits |
788,316 |
801,167 |
822,273 |
754,461 |
780,400 |
Total deposits |
876,056 |
888,580 |
904,578 |
832,803 |
850,456 |
Total borrowings and other
debt |
103,939 |
105,778 |
108,011 |
107,646 |
110,678 |
Shareholders' equity |
92,659 |
94,782 |
94,771 |
92,276 |
93,443 |
|
|
|
|
|
|
Selected Quarterly Average
Balances: |
|
|
|
|
|
Loans covered by FDIC
loss-share agreements |
$ 164,314 |
$ 173,755 |
$ 170,580 |
$ 142,353 |
$ 154,998 |
Loans not covered by FDIC
loss-share agreements |
578,083 |
576,846 |
583,294 |
583,993 |
592,056 |
Average loans, net |
742,397 |
750,601 |
753,874 |
726,346 |
747,054 |
Investment securities |
140,846 |
146,017 |
157,513 |
135,645 |
100,691 |
Average interest-earning
assets |
906,064 |
920,932 |
918,118 |
902,141 |
928,756 |
Average total assets |
1,084,313 |
1,107,687 |
1,110,740 |
1,053,747 |
1,075,338 |
Noninterest-bearing
deposits |
87,770 |
84,001 |
81,617 |
72,235 |
69,675 |
Interest-bearing deposits |
789,233 |
810,469 |
814,736 |
769,152 |
783,510 |
Average total deposits |
877,003 |
894,470 |
896,353 |
841,387 |
853,185 |
Average borrowings and other
debt |
105,872 |
106,696 |
107,872 |
109,385 |
111,271 |
Shareholders' equity |
94,028 |
94,711 |
95,116 |
93,533 |
94,761 |
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
Total equity to total
assets |
8.58% |
8.62% |
8.48% |
8.86% |
8.78% |
Tangible common equity to
tangible assets |
6.56% |
6.61% |
6.49% |
6.73% |
6.69% |
Total Risk-Based Capital (Bank
only) |
15.94% |
17.32% |
17.29% |
16.70% |
16.80% |
Tier 1 Risk-Based Capital (Bank
only) |
14.69% |
16.06% |
16.03% |
15.44% |
15.54% |
Tier 1 Leverage Capital (Bank
only) |
9.49% |
9.53% |
9.42% |
9.89% |
9.74% |
|
|
|
|
|
|
|
|
|
CITIZENS SOUTH BANKING
CORPORATION |
|
|
CONSOLIDATED STATEMENTS
OF FINANCIAL CONDITION (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31 |
Amount |
Percent |
|
2011 |
2010 |
Change |
Change |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
88,344 |
120,899 |
(32,555) |
-26.93% |
Investment securities available for sale, at
fair value |
95,763 |
74,308 |
21,455 |
28.87% |
Investment securities held to maturity, at
amortized cost |
52,136 |
37,278 |
14,858 |
39.86% |
Federal Home Loan Bank stock, at cost |
5,067 |
5,715 |
(648) |
-11.34% |
Presold loans in process of settlement |
2,146 |
4,034 |
(1,888) |
-46.80% |
Loans: |
|
|
|
|
Covered by FDIC
loss-share agreements |
159,688 |
147,576 |
12,112 |
8.21% |
Not covered by FDIC
loss-share agreements |
574,100 |
588,934 |
(14,834) |
-2.52% |
Allowance for loan
losses |
(11,713) |
(11,924) |
211 |
-1.77% |
Loans, net |
722,075 |
724,586 |
(2,511) |
-0.35% |
Other real estate owned |
17,682 |
14,652 |
3,030 |
20.68% |
Premises and equipment, net |
25,888 |
23,785 |
2,103 |
8.84% |
FDIC loss share receivable |
38,931 |
24,848 |
14,083 |
56.68% |
Accrued interest receivable |
2,773 |
3,001 |
(228) |
-7.60% |
Bank-owned life insurance |
18,978 |
18,230 |
748 |
4.10% |
Intangible assets |
1,373 |
1,690 |
(317) |
-18.76% |
Other assets |
9,304 |
11,461 |
(2,157) |
-18.82% |
Total
assets |
$ 1,080,460 |
$ 1,064,487 |
$ 15,973 |
1.50% |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
Deposits: |
|
|
|
|
Noninterest-bearing
demand deposits |
$ 87,740 |
$ 70,056 |
$ 17,684 |
25.24% |
Interest-bearing demand
and savings |
375,497 |
331,956 |
43,541 |
13.12% |
Time deposits |
412,819 |
448,444 |
(35,625) |
-7.94% |
Total deposits |
876,056 |
850,456 |
25,600 |
3.01% |
Securities sold under repurchase
agreements |
9,787 |
9,432 |
355 |
3.76% |
Borrowed money |
78,688 |
85,782 |
(7,094) |
-8.27% |
Subordinated debt |
15,464 |
15,464 |
-- |
0.00% |
Other liabilities |
7,806 |
9,910 |
(2,104) |
-21.23% |
Total liabilities |
987,801 |
971,044 |
16,757 |
1.73% |
Shareholders' Equity |
|
|
|
|
Preferred stock |
20,500 |
20,672 |
(172) |
-0.83% |
Common stock |
124 |
124 |
-- |
0.00% |
Additional paid-in-capital |
63,888 |
63,000 |
888 |
1.41% |
Retained earnings, substantially
restricted |
7,854 |
9,663 |
(1,809) |
-18.72% |
Accumulated other comprehensive income
(loss) |
293 |
(16) |
309 |
-1931.25% |
Total shareholders'
equity |
92,659 |
93,443 |
(784) |
-0.84% |
Total liabilities
and shareholders' equity |
$ 1,080,460 |
$ 1,064,487 |
$ 15,973 |
1.50% |
|
|
|
CITIZENS SOUTH BANKING
CORPORATION |
CONSOLIDATED STATEMENTS
OF OPERATIONS (unaudited) |
|
Three Months
Ended |
|
|
|
December
31 |
Amount |
Percent |
|
2011 |
2010 |
Change |
Change |
(Dollars in thousands) |
|
|
|
|
Interest Income: |
|
|
|
|
Interest and fees on loans |
$ 10,135 |
$ 10,297 |
$ (162) |
-1.57% |
Investment securities: |
|
|
|
|
Taxable interest income |
743 |
543 |
200 |
36.83% |
Tax-exempt interest income |
95 |
67 |
28 |
41.79% |
Other interest income |
51 |
78 |
(27) |
-34.62% |
Total interest income |
11,024 |
10,985 |
39 |
0.36% |
Interest Expense: |
|
|
|
|
Deposits |
1,445 |
2,391 |
(946) |
-39.57% |
Repurchase agreements |
10 |
23 |
(13) |
-56.52% |
Borrowed money |
739 |
790 |
(51) |
-6.46% |
Subordinated debt |
110 |
207 |
(97) |
-46.86% |
Total interest expense |
2,304 |
3,411 |
(1,107) |
-32.45% |
|
|
|
|
|
Net interest income |
8,720 |
7,574 |
1,146 |
15.13% |
Provision for loan losses |
4,635 |
5,000 |
(365) |
-7.30% |
Net interest income after
provision for loan losses |
4,085 |
2,574 |
1,511 |
58.70% |
Noninterest Income: |
|
|
|
|
Service charges on deposit
accounts |
1,066 |
1,039 |
27 |
2.60% |
Mortgage banking income |
414 |
497 |
(83) |
-16.70% |
Commissions on sales of
financial products |
61 |
67 |
(6) |
-8.96% |
Income from bank-owned life
insurance |
191 |
205 |
(14) |
-6.83% |
Gain from acquisition |
25 |
148 |
(123) |
-83.11% |
Loss on sale of other
assets |
(57) |
(39) |
(18) |
46.15% |
Other income |
285 |
357 |
(72) |
-20.17% |
Total noninterest income |
1,985 |
2,274 |
(289) |
-12.71% |
Noninterest Expense: |
|
|
|
|
Compensation and benefits |
3,810 |
3,529 |
281 |
7.96% |
Occupancy and
equipment |
854 |
848 |
6 |
0.71% |
Data processing and other
technology |
248 |
261 |
(13) |
-4.98% |
Professional services |
264 |
252 |
12 |
4.76% |
Advertising and business
development |
81 |
101 |
(20) |
-19.80% |
Loan collection and other
expenses |
534 |
276 |
258 |
93.48% |
Deposit insurance |
419 |
356 |
63 |
17.70% |
Other real estate owned
valuation adjustments |
1,027 |
295 |
732 |
248.14% |
Other real estate owned
expenses |
396 |
308 |
88 |
28.57% |
Amortization of intangible
assets |
126 |
144 |
(18) |
-12.50% |
Impairment of investment
securities |
-- |
435 |
(435) |
-100.00% |
Acquisition and integration
expenses |
38 |
42 |
(4) |
-9.52% |
Other expenses |
982 |
1,071 |
(89) |
-8.31% |
Total noninterest expense |
8,779 |
7,918 |
861 |
10.87% |
|
|
|
|
|
Net loss before income tax benefit |
(2,709) |
(3,070) |
361 |
-11.76% |
Income tax benefit |
(1,172) |
(1,331) |
159 |
-11.95% |
Net loss |
(1,537) |
(1,739) |
202 |
-11.62% |
Dividends and accretion of
discount on preferred stock |
767 |
256 |
511 |
199.61% |
|
|
|
|
|
Net loss allocable to common
shareholders |
$ (2,304) |
$ (1,995) |
$ (309) |
15.49% |
|
|
|
|
|
Net loss per common share -
basic |
$ (0.20) |
$ (0.18) |
$ (0.02) |
12.49% |
Net loss per common share -
diluted |
(0.20) |
(0.18) |
(0.02) |
12.49% |
|
|
|
CITIZENS SOUTH BANKING
CORPORATION |
CONSOLIDATED STATEMENTS
OF OPERATIONS (unaudited) |
|
|
|
12 months
ended |
|
|
|
|
|
December
31 |
Amount |
Percent |
|
|
|
2011 |
2010 |
Change |
Change |
(Dollars in thousands) |
|
|
|
|
Interest
Income: |
|
|
|
|
Interest and fees
on loans |
$ 40,158 |
$ 40,540 |
$ (382) |
-0.94% |
Investment
securities: |
|
|
|
|
Taxable interest
income |
3,412 |
2,517 |
895 |
35.56% |
Tax-exempt interest
income |
304 |
544 |
(240) |
-44.12% |
Other interest
income |
202 |
314 |
(112) |
-35.67% |
Total interest
income |
44,076 |
43,915 |
161 |
0.37% |
Interest
Expense: |
|
|
|
|
Deposits |
7,128 |
10,262 |
(3,134) |
-30.54% |
Repurchase
agreements |
60 |
107 |
(47) |
-43.93% |
Borrowed money |
3,022 |
3,395 |
(373) |
-10.99% |
Subordinated
debt |
328 |
914 |
(586) |
-64.11% |
Total interest
expense |
10,538 |
14,678 |
(4,140) |
-28.21% |
|
|
|
|
|
|
|
Net interest income |
33,538 |
29,237 |
4,301 |
14.71% |
Provision for loan losses |
10,685 |
14,050 |
(3,365) |
-23.95% |
Net interest income
after provision for loan losses |
22,853 |
15,187 |
7,666 |
50.48% |
Noninterest
Income: |
|
|
|
|
Service charges on
deposit accounts |
4,154 |
3,932 |
222 |
5.65% |
Mortgage banking
income |
1,255 |
1,525 |
(270) |
-17.70% |
Commissions on
sales of financial products |
267 |
426 |
(159) |
-37.32% |
Income from
bank-owned life insurance |
777 |
832 |
(55) |
-6.61% |
Gain from
acquisition |
4,140 |
19,679 |
(15,539) |
-78.96% |
Gain on sale of
investments, available for sale |
111 |
349 |
(238) |
-68.19% |
Loss on sale of
other assets |
(342) |
(490) |
148 |
-30.20% |
Other income |
979 |
883 |
96 |
10.87% |
Total noninterest
income |
11,341 |
27,136 |
(15,795) |
-58.21% |
Noninterest
Expense: |
|
|
|
|
Compensation and
benefits |
15,000 |
13,598 |
1,402 |
10.31% |
Occupancy and
equipment |
3,421 |
3,302 |
119 |
3.60% |
Data processing and
other technology |
1,063 |
702 |
361 |
51.42% |
Professional
services |
1,003 |
981 |
22 |
2.24% |
Advertising and
business development |
320 |
333 |
(13) |
-3.90% |
Loan collection and
other expenses |
1,361 |
447 |
914 |
204.47% |
Deposit
insurance |
1,535 |
1,326 |
209 |
15.76% |
Other real estate
owned valuation adjustments |
4,319 |
1,382 |
2,937 |
212.52% |
Other real estate
owned expenses |
1,302 |
993 |
309 |
31.12% |
Amortization of
intangible assets |
538 |
517 |
21 |
4.06% |
Impairment of
investment securities |
-- |
435 |
(435) |
-100.00% |
Acquisition and
integration expenses |
792 |
1,064 |
(272) |
-25.56% |
Other expenses |
4,001 |
4,255 |
(254) |
-5.97% |
Total noninterest
expense |
34,655 |
29,335 |
5,320 |
18.14% |
|
|
|
|
|
|
|
Net income (loss) before income
tax expense (benefit) |
(461) |
12,988 |
(13,449) |
-103.55% |
Income tax expense
(benefit) |
(702) |
4,349 |
(5,051) |
-116.14% |
Net income |
241 |
8,639 |
(8,398) |
-97.21% |
Dividends and
accretion of discount on preferred stock |
1,526 |
1,025 |
501 |
48.88% |
|
|
|
|
|
|
|
Net income (loss)
available (allocable) to common shareholders |
$ (1,285) |
$ 7,614 |
$ (8,899) |
-116.88% |
|
|
|
|
|
|
|
Net loss per common
share - basic |
$ (0.11) |
$ 0.78 |
$ (0.89) |
-114.35% |
Net loss per common
share - diluted |
(0.11) |
0.78 |
(0.89) |
-114.35% |
CONTACT: Gary F. Hoskins, CFO
(704) 884-2263
gary.hoskins@citizenssouth.com
Citizens South Banking Corp. (MM) (NASDAQ:CSBC)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Citizens South Banking Corp. (MM) (NASDAQ:CSBC)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024