Citizens South Bank

Gastonia, NC · Cert 28833

FDIC

Q3 2012

$938.2MAssets

$707.6MLoans

$826.7MDeposits

$93.6MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of -1.35%, down 165 bps year over year; NIM at 3.32%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 1.63%.
Funding: loans stand at 85.59% of deposits as of Q3 2012.

Return on Assets (YTD, annualized)

-1.35%-165 bps YoY

Net Interest Margin (YTD, annualized)

3.32%

Efficiency Ratio (YTD, annualized)

131.81%

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q4 2010	Q1 2011	Q2 2011	Q3 2011	Q4 2011	Q1 2012	Q2 2012	Q3 2012	YoY Δ	Trend
Earnings
Return on Assets	0.97%	-0.26%	0.34%	0.30%	0.10%	-0.72%	-0.41%	-1.35%	-165 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	-7.46%	-4.30%	-13.91%	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	3.05%	3.20%	3.20%	3.32%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	70.54%	76.06%	76.90%	131.81%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	2.00%	2.39%	2.42%	4.48%	n/a
Growth
Asset Growth (YoY)	33.78%	-7.94%	4.12%	0.54%	1.64%	3.11%	-6.36%	-14.62%	-1,517 bps
Loan Growth (YoY)	21.19%	-8.30%	-3.38%	-1.09%	1.08%	2.75%	-2.88%	-4.21%	-313 bps
Deposit Growth (YoY)	39.25%	-6.02%	5.81%	2.88%	3.03%	4.63%	-5.81%	-7.35%	-1,023 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	1.48%	3.51%	2.32%	1.63%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	1.59%	1.58%	1.63%	1.68%	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	15.61%	15.50%	15.59%	14.49%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	9.67%	9.52%	9.73%	9.97%	n/a
Liquidity & Funding
Loans / Deposits	85.43%	85.46%	81.62%	82.79%	83.81%	83.92%	84.16%	85.59%	+281 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	15.82%	18.95%	19.03%	11.61%	+1,161 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a