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Citizens South Banking Q1 net income down

Citizens South Banking has reported net income of $970,000, or $0.13 per diluted share for the first quarter of 2008, compared to $1.4 million, or $0.18 per diluted share for the same period of 2007.

The bank’s net interest margin amounted to 2.89% for the first quarter of 2008, compared to 3.01% for the fourth quarter of 2007.

According to the bank, the primary reason for the decrease was net interest margin compression caused primarily by the Federal Reserve Bank’s actions to decrease short-term interest rates by 200 basis points during the first quarter of 2008. This resulted in lower yields on assets tied to the prime lending rate and other short-term indices.

On a linked-quarter basis, nonperforming assets totaled 0.39% of total assets at March 31, 2008, compared to 0.30% of total assets at December 31, 2007.

Kim Price, president and CEO of Citizens South Banking, said: At a time when our industry is under substantial pressure, we are pleased with our financial performance and particularly our having avoided the credit-related problems of many in our industry.