EXHIBIT 99.2

          DIVIDEND PRESS RELEASE OF CITIZENS SOUTH BANKING CORPORATION


         CITIZENS SOUTH BANKING CORPORATION DECLARES QUARTERLY DIVIDEND


         GASTONIA,  NC,  April 21,  2003 --- Kim S. Price,  President  and Chief
Executive  Officer  of  Citizens  South  Banking  Corporation  (Nasdaq:   CSBC),
announced  today  that the  Company's  Board of  Directors  has  declared a cash
dividend of six cents per share of common stock. The dividend will be payable to
stockholders of record as of May 1, 2003, and will be paid on May 15, 2003.

         Citizens  South  Banking  Corporation  is the  parent  corporation  for
Citizens  South Bank,  which was  established  in 1904 and is  headquartered  in
Gastonia, North Carolina. The Bank has nine full-service banking offices located
in the Central Piedmont region of North Carolina. At March 31, 2003, the Company
had  assets  of $501.2  million,  loans of $306.3  million,  deposits  of $343.9
million, and stockholders' equity of $96.8 million.


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