October 27, 2009 (FinancialWire) — Citizens South Banking Corp. (NASDAQ: CSBC) has launched a public offering of around $30 million in common stock. Keefe, Bruyette & Woods will act as lead bookrunning manager.

The company plans to grant the underwriters an option to purchase up to an additional 15% of the shares sold to cover over-allotments.

Citizens South plans to use the net proceeds for general corporate purposes and may contribute some portion of the net proceeds in the form of capital to its Citizens South Bank unit, which will use the funds for its general corporate purposes and for anticipated balance sheet growth.

The company also plans to use a portion of the net proceeds of the stock offering to redeem the preferred stock and related warrant Citizens South issued to the U.S. Department of the Treasury under the TARP Capital Purchase Program.

Gastonia, North Carolina-based Citizens South is the holding company for Citizens South Bank, which operates 16 offices in the Charlotte region.

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