SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 11-K

                                  ANNUAL REPORT
                        PURSUANT TO SECTION 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].

For the fiscal year ended           December 31, 2001

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934 [NO FEE REQUIRED].

For the transition period from _______________ to  ______________________

                        Commission File Number 000-23971

A.  Full title of the plan and the address of the plan, if different from that
    of the issuer named below:

     Gaston Federal Savings and Loan Association Employees' Savings & Profit
                             Sharing Plan and Trust

B.  Name of issuer of the securities held pursuant to the plan and the address
    of its principal executive office:

                       Citizens South Banking Corporation
                              245 West Main Avenue
                                  P.O. Box 2249
                       Gastonia, North Carolina 28053-2249


                              SUMMARY ANNUAL REPORT

                  FOR GASTON FEDERAL BANK EMPLOYEES' SAVINGS &
                          PROFIT SHARING PLAN AND TRUST

This is a summary of the annual  report for the Gaston  Federal Bank  Employees'
Savings & Profit Sharing Plan and Trust,  EIN 56-0233080,  Plan No. 004, for the
period  January 1, 2001 through  December 31, 2001.  The annual  report has been
filed with the Pension and Welfare Benefits  Administration,  U.S. Department of
Labor,  as required under the Employee  Retirement  Income  Security Act of 1974
(ERISA).

                            Basic Financial Statement

Benefits  under the plan are provided  through a trust fund.  Plan expenses were
$170,941.  These expenses included $155,995 in benefits paid to participants and
beneficiaries  and  $14,946  in  other  expenses.  A total  of 67  persons  were
participants  in or  beneficiaries  of the  plan  at the end of the  plan  year,
although not all of these persons had yet earned the right to receive benefits.

The  value of plan  assets,  after  subtracting  liabilities  of the  plan,  was
$3,166,986  as of December 31,  2001,  compared to  $2,764,469  as of January 1,
2001. During the plan year the plan experienced an increase in its net assets of
$402,517. This increase includes unrealized appreciation and depreciation in the
value of plan assets;  that is, the  difference  between the value of the plan's
assets at the end of the year and the value of the  assets at the  beginning  of
the year or the cost of assets  acquired  during  the  year.  The plan had total
income  of  $573,458  including  employer  contributions  of  $66,877,  employee
contributions of $169,795, and earnings from investments of $336,786.

                      Your Rights To Additional Information

You have the right to  receive  a copy of the full  annual  report,  or any part
thereof, on request. The items listed below are included in that report:

1.  financial information; and
2.  information regarding any common or collective trusts, pooled separate
    accounts, master trusts or 103-12 investment entities in which the plan
    participates.

To obtain a copy of the full annual report,  or any part thereof,  write or call
Gaston Federal Bank, PO Box 2249 245 West Main Avenue,  Gastonia, NC 28053-2249,
(704) 868-5200.

You also have the right to receive from the plan  administrator,  on request and
at no  charge,  a  statement  of the  assets  and  liabilities  of the  plan and
accompanying  notes,  or a  statement  of income  and  expenses  of the plan and
accompanying  notes,  or both.  If you request a copy of the full annual  report
from the plan administrator, these two statements and accompanying notes will be
included as part of that report.

You also have the legally  protected  right to examine the annual  report at the
main office of the plan (Gaston Federal Bank, PO Box 2249, 245 West Main Avenue,
Gastonia,  NC  28053-2249)  and at the U.S.  Department of Labor in  Washington,
D.C.,  or to obtain a copy from the U.S.  Department  of Labor  upon  payment of
copying  costs.  Requests  to the  Department  should be  addressed  to:  Public
Disclosure Room, Room N1513, Pension and Welfare Benefits  Administration,  U.S.
Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.



                                   SIGNATURES


     The Plan.  Pursuant to the  requirements of the Securities  Exchange Act of
1934, the trustees (or other persons who  administer the employee  benefit plan)
have  duly  caused  this  annual  report  to be  signed  on  its  behalf  by the
undersigned hereunto duly authorized.


                                             GASTON FEDERAL SAVINGS AND LOAN
                                             ASSOCIATION EMPLOYEES' SAVINGS &
                                             PROFIT SHARING PLAN AND TRUST


Date:  May 20, 2002                          By:  /s/ Paul L. Teem, Jr.
                                                ------------------------------
                                                Name:  Paul L. Teem, Jr.
                                                Title: Executive  Vice President
                                                       and Secretary, Citizens
                                                       South Bank, successor to
                                                       Gaston Federal Savings
                                                       and Loan Association