CITIZENS SOUTH BANKING CORP - FORM 8-K/A - EX-99 - EXHIBIT 99.1 - August 11, 2011

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Exhibit 99.1
 
Quarterly Financial Highlights (unaudited)
  
At and For the Quarters Ended
  
   
2011
    
2010
  
   
June 30
    
March 31
    
December 31
    
September 30
    
June 30
  
(Dollars in thousands, except per share data)
                              
                               
Summary of Operations:
              
 
    
 
    
 
  
Interest income - taxable equivalent
   $ 11,488     $ 10,457     $ 11,055     $ 11,675     $ 12,308  
Interest expense
     2,826       2,855       3,411       3,790       4,083  
Net interest income - taxable equivalent
     8,662       7,602       7,644       7,885       8,225  
Less: Taxable-equivalent adjustment
     69       70       70       79       114  
Net interest income
     8,593       7,532       7,574       7,806       8,111  
Provision for loan losses
     1,700       3,000       5,000       3,000       3,000  
Net interest income after loan loss provision
     6,893       4,532       2,574       4,806       5,111  
Noninterest income
     5,886       1,478       2,274       2,290       2,415  
Noninterest expense
     9,270       7,672       7,918       7,781       7,279  
Net income (loss) before income taxes
     3,509       (1,662 )     (3,070 )     (685 )     247  
Income tax expense (benefit)
     1,213       (771 )     (1,331 )     (413 )     (108 )
Net income (loss)
     2,296       (891 )     (1,739 )     (272 )     355  
Dividends on preferred stock
     256       256       256       256       257  
Net income (loss) available to common shareholders
   $ 2,040     $ (1,147 )   $ (1,995 )   $ (528 )   $ 98  
                                         
Per Common Share Data:
                                        
Net income (loss):
                                        
Basic
   $ 0.18     $ (0.10 )   $ (0.18 )   $ (0.05 )   $ 0.01  
Diluted
     0.18       (0.10 )     (0.18 )     (0.05 )     0.01  
Weighted average shares outstanding:
                                        
Basic
     11,455,642       11,491,734       11,173,174       10,844,386       9,077,042  
Diluted
     11,455,642       11,491,734       11,173,174       10,844,386       9,077,042  
End of period shares outstanding
     11,506,324       11,508,750       11,508,750       10,964,146       10,965,941  
Cash dividends declared
   $ 0.01     $ 0.01     $ 0.01     $ 0.04     $ 0.04  
Book value
     6.44       6.22       6.32       6.86       6.91  
Tangible book value
     6.29       6.09       6.17       6.70       6.73  
                                         
Selected Financial Performance Ratios (annualized):
                                        
Return on average assets
     0.73 %     -0.44 %     -0.74 %     -0.20 %     0.04 %
Return on average common equity
     11.00 %     -6.39 %     -10.68 %     -2.77 %     0.56 %
Noninterest income to average total assets
     2.12 %     0.56 %     0.85 %     0.85 %     0.87 %
Noninterest expense to average total assets
     3.34 %     2.91 %     2.95 %     2.88 %     2.63 %
                                         
Operating Earnings (Non-GAAP):
                                        
Net income (loss) available to common shareholders
   $ 2,040     $ (1,147 )   $ (1,995 )   $ (528 )   $ 98  
(Gain) loss on acquisition, net of tax
     (2,695 )     155       (90 )     (118 )     (368 )
(Gain) loss on sale of investments, net of tax
     -       -       -       (186 )     (6 )
Other-than-temporary impairment on securities, net of tax
     -       -       365       -       -  
Acquisition and integration expenses, net of tax
     345       27       26       86       57  
Net operating loss
   $ (310 )   $ (965 )   $ (1,694 )   $ (746 )   $ (219 )
                                         
Operating net loss per common share:
                                        
Basic
   $ (0.03 )   $ (0.08 )   $ (0.15 )   $ (0.07 )   $ (0.02 )
Diluted
     (0.03 )     (0.08 )     (0.15 )     (0.07 )     (0.02 )
                                         
Net Interest Margin (annualized):
                                        
Yield on earning assets
     4.95 %     4.62 %     4.68 %     4.91 %     4.96 %
Cost of funds
     1.23 %     1.32 %     1.51 %     1.66 %     1.72 %
Net interest rate spread
     3.72 %     3.30 %     3.17 %     3.25 %     3.24 %
Net interest margin (taxable equivalent)
     3.78 %     3.42 %     3.25 %     3.42 %     3.48 %
 
 
 
 
 
Quarterly Financial Highlights (unaudited)
  
At and For the Quarters Ended
  
   
2011
    
2010
  
   
June 30
    
March 31
    
December 31
    
September 30
    
June 30
  
(Dollars in thousands, except per share data)
                              
                               
Selected End of Period Balances:
  
 
    
 
    
 
    
 
    
 
  
Loans, net
   $ 750,650     $ 724,655     $ 736,510     $ 754,740     $ 776,234  
Investment securities
     156,328       154,006       111,586       87,255       97,678  
Total interest-earning assets
     931,156       886,872       914,456       937,278       927,757  
Total assets
     1,117,993       1,041,444       1,064,487       1,087,558       1,077,431  
Deposits
     904,578       832,803       850,456       865,786       853,526  
Shareholders' equity
     94,771       92,276       93,443       95,682       96,410  
                                         
Selected Quarterly Average Balances:
                                        
Loans, net
   $ 753,874     $ 726,346     $ 747,054     $ 767,381     $ 780,209  
Investment securities
     157,513       135,645       100,691       91,361       100,501  
Total interest-earning assets
     918,118       902,141       928,756       915,882       949,130  
Total assets
     1,110,740       1,053,747       1,075,338       1,080,680       1,105,788  
Deposits
     896,353       841,387       853,185       853,902       859,408  
Shareholders' equity
     95,116       93,533       94,761       96,258       96,282  
                                         
Credit Quality Information and Ratios:
                                        
Allowance for loan losses - beginning of period
   $ 12,006     $ 11,924     $ 10,752     $ 9,796     $ 9,230  
Add:  Provision for loan losses
     1,700       3,000       5,000       3,000       3,000  
Less:  Net charge-offs
     964       2,918       3,828       2,044       2,433  
Allowance for loan losses - end of period
     12,742       12,006       11,924       10,752       9,797  
 
                                        
Assets not covered by FDIC loss-share agreements:
                                  
Past due loans (30-89 days) accruing
     5,687       5,692       13,787       6,602       10,145  
Past due loans to total non-covered loans
     0.99 %     0.97 %     2.34 %     1.11 %     1.68 %
                                         
Nonperforming non-covered loans:
                                        
One-to-four family residential
     1,406       2,373       1,864       2,068       1,646  
Construction
     -       72       14       163       896  
Acquisition and development
     5,155       4,675       2,560       340       691  
Commercial land
     3,167       4,653       4,360       5,034       3,252  
Other commercial real estate
     10,306       9,636       4,800       9,566       4,127  
Commercial business
     201       309       287       720       742  
Consumer
     2,440       2,639       2,529       1,930       1,652  
Total nonperforming non-covered loans
     22,675       24,357       16,414       19,821       13,006  
Other nonperforming non-covered assets
     10,723       8,463       7,650       8,557       8,239  
Total nonperforming non-covered assets
     33,398       32,820       24,064       28,378       21,245  
                                         
Allowance for loan losses to total non-covered loans
     2.22 %     2.05 %     2.02 %     1.81 %     1.62 %
Net charge-offs to average non-covered loans (annualized)
     0.66 %     1.99 %     2.59 %     1.36 %     3.22 %
Nonperforming non-covered loans to non-covered loans
     3.95 %     4.15 %     2.79 %     3.33 %     2.15 %
Nonperforming non-covered assets to total assets
     2.99 %     3.15 %     2.26 %     2.61 %     1.97 %
Nonperforming non-covered assets to total non-covered loans and other real estate owned
     5.72 %     5.51 %     4.03 %     4.71 %     3.46 %
                                         
Assets covered by FDIC loss-share agreements:
                                        
Past due loans (30-89 days) accruing
     12,987       7,006       5,767       8,701       5,257  
Past due loans to total covered loans
     7.34 %     5.09 %     3.91 %     5.43 %     3.07 %
                                         
Total covered nonperforming loans
     35,830       24,791       25,541       22,416       24,924  
Other covered nonperforming assets
     14,127       8,225       7,108       3,183       2,343  
Total covered nonperforming assets
     49,957       33,016       32,649       25,599       27,267  
                                         
Capital Ratios:
                                        
Tangible common equity
     6.49 %     6.73 %     6.69 %     6.74 %     6.86 %
Total Risk-Based Capital (Bank only)
     17.29 %     16.70 %     16.80 %     16.83 %     16.78 %
Tier 1 Risk-Based Capital (Bank only)
     16.03 %     15.44 %     15.54 %     15.58 %     15.52 %
Tier 1 Leverage Capital (Bank only)
     9.42 %     9.89 %     9.74 %     9.58 %     9.74 %

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