Exhibit 99

              Citizens South Bank Launches Strategic Alliance with
             Banorte, Mexico's Fourth Largest Financial Institution

    GASTONIA, N.C., Oct. 18 /PRNewswire-FirstCall/ -- Citizens South Bank
(Nasdaq: CSBC) has developed a strategic alliance with Banorte Bank in Mexico
in a unique effort to provide financial services for Hispanics residing in the
Carolinas.  Banorte is a $40-billion bank and the fourth largest financial
institution in Mexico.  Banorte is the only bank in Mexico that is wholly-
owned by Mexican citizens.
    Citizens South Bank and Banorte will offer banking services through
"Bodega Banks(TM)," which are kiosk branches located inside community retail
stores known as "Bodegas" serving the Hispanic community in the United States.
The Bodega Bank(TM) is a concept developed by Citizens South Bank after
extensive research and consultation with Banorte officials regarding the
Hispanic population in the U.S. and their particular financial needs.  The
Bodega Bank(TM) is designed to remove the cultural and language barriers
between Americans and Hispanics, and to provide a more user-friendly and
easier banking experience for Hispanic customers.  In addition, the concept
should strengthen the local and regional economy by retaining in the local
market significant amounts of Hispanics' funds.  The Bodega Bank(TM) operates
as an officially recognized branch of Citizens South Bank within a Bodega
community store, offering specific financial products and services targeted to
the needs of the Hispanic market.  Bilingual tellers and new accounts officers
are culturally sensitive and trained to serve Hispanics' lifestyles and
experiences.  Banorte Bank will provide funds transfers for customers of the
Bodega Bank(TM) as well as financial services to the families located in
Mexico through Banorte's 2,500 ATMS and 1,000-branch network.
    Banorte specializes in financial services to Hispanics in the U.S. through
its remittances program with large American regional and money center banks.
Last year, Banorte received remittances in excess of $600 million to Mexican
Beneficiaries.  With Citizens South Bank, Banorte extends its ability to
assist Hispanics living in more rural and suburban communities in the U.S.
through local community banks, such as Citizens South.
    The Citizens South Bank branch located at 1650 East Franklin Boulevard,
Gastonia, within the Bodega operated by Cedeno Enterprises, Inc., opened on
Monday, October 18, 2004.  Citizens South Bank has plans to extend the
prototype "Bodega Bank(TM)" to Hispanic markets throughout its market area in
North Carolina and plans to partner with Banorte Bank, Cedeno Enterprises,
Inc., and Godbold Financial Associates, Inc. to assist other community banks
throughout the Southeast in establishing Bodega Banks(TM).  Citizens South,
along with its partners, would provide a business model as well as
technological and consulting services to assist other community banks in
offering the full range of banking products including savings accounts,
remittances, demand deposit accounts, phone cards, and money orders, as well
as other financial intermediary services.
    "North Carolina is one of the states that have experienced the highest
growth rates of Mexican population over the past years.  Therefore, this
alliance symbolizes the beginning of an important strategy that involves
several regional/community banks located in areas with a large Mexican
population.  Banorte's business priority is to reach the highest number of
fellow citizens living in our neighbor country, in order to offer a better
service to their families in Mexico," stated Luis Pena, CEO of Grupo
Financiero Banorte.
    Alonso Garfias serves a dual role at the Bodega Branch.  Mr. Garfias is a
Manager at Banorte Bank in Monterrey, Mexico, and is the Vice President of
Hispanic Banking at Citizens South Bank.  He noted, "Historically, Hispanics
keep large amounts of cash on hand for a variety of reasons including language
barriers.  In fact, seventy-five percent of Hispanics who send remittances
(funds transfers) do not have a bank account.  This relationship creates the
perfect opportunity to bridge the banking barrier between the Hispanic
community and U.S. banks."
    The first Bodega Branch of Citizens South Bank will operate at the Cedeno
Enterprises store at 1650 East Franklin Boulevard, near the intersection of
North New Hope Road.  Hours of operation are Monday through Thursday,
10:00 a.m. to 5:00 p.m.; Friday, 9:00 a.m. to 6:00 p.m.; Saturday, 9:00 a.m.
to 3:00 p.m.; and Sunday, 9:00 a.m. to 2:00 p.m.  The Branch's hours of
operation are conveniently tailored to the working hours of Hispanic and
non-Hispanic residents who may be employed in jobs in the local economy with
non-traditional work schedules.  All employees of the Bodega Branch are fluent
in both Spanish and English.
    Rafael Manjarrez, Vice President of Cedeno Enterprises, commented, "We
have been seeking a banking partner for several years to provide much needed
financial services to the Hispanic community.  The Citizens South/Banorte
alliance brings together the financial and cultural experience to provide
financial services to a largely unbanked population."
    John Godbold, President of Godbold Financial Associates, a leading
marketer of retail services to community banks in North and South Carolina,
stated, "Citizens South and Banorte have done the research and built a model
for other community banks searching for a program, and a formula, to serve the
rapidly growing Hispanic population."
    According to Kim S. Price, President and CEO of Citizens South Bank, "The
alliance was created in response to the exponential growth of the Hispanic
population in our service area and throughout the southeastern United States.
Our management, and particularly Steve Huffstetler, Senior Vice President for
the Financial Services Division, who attended the internationally known
Graduate School of Banking at Louisiana State University (LSU) for three years
in Baton Rouge, Louisiana, with Banorte's Alonso Garfias, pondered the
prospect of banking the rapidly expanding Hispanic community.  Recognition by
Rafael Manjarrez of Cedeno Enterprises, of the need, coupled with the LSU
classroom experiences of Huffstetler and Garfias, provided the impetus for the
project.  After almost two years of research, due diligence, regulatory
meetings, and visits with our partners, we are excited about kicking off what
we believe is a true community service to an unbanked population.  We hope to
provide resources to communities and community banks striving to deal with the
cultural barriers of integrating Hispanics into American society."

    Citizens South Bank, currently celebrating its one hundredth anniversary,
is a $500 million company with a market capitalization of $93.56 million,
headquartered at 519 South New Hope Road in Gastonia, North Carolina.  The
Bank's stock is publicly traded under the symbol CSBC on Nasdaq National
Markets.  The Bank offers full service banking through 11 locations in Gaston,
Rowan, and Iredell Counties in North Carolina. Visit Citizens South Bank
at http://www.citizenssouth.com .

    Grupo Financiero Banorte is the fourth largest financial group in Mexico,
with a 15% market share.  Banorte has attained nationwide expansion coupled
with one of the highest levels of profitability in the Mexican financial
sector.  Banorte has over 1,000 branches and 2,500 ATMs throughout Mexico.
Recently, Banorte has announced several alliances focused on the improvement
of services to the Hispanic market in the U.S., such as an agreement with
Wells Fargo, which makes available to the Hispanic population 6,000 branches
and 6,200 ATMs in the U.S.  Visit Banorte at http://www.banorte.com .

SOURCE  Citizens South Bank
    -0-                             10/18/2004
    /CONTACT:  Steve Huffstetler, Senior Vice President, or Alonso Garfias,
Vice President of Citizens South Bank, +1-704-868-5200/
    /Web site:  http://www.citizenssouth.com
                http://www.banorte.com /
    (CSBC)

CO:  Citizens South Bank; Grupo Financiero Banorte; Banorte Bank; Cedeno
     Enterprises, Inc.; Godbold Financial Associates, Inc.
ST:  North Carolina, Mexico
IN:  FIN
SU:  HSP