-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Jm8gNSczvyV3h0beRfRpWD+nsWaXwjJPdHhzGKcb/5TPtWBZ4jr8xi3Mpc7TZGNP
 SPz57rsWC2my6WGWiuvvIA==

<SEC-DOCUMENT>0000943374-09-000479.txt : 20090318
<SEC-HEADER>0000943374-09-000479.hdr.sgml : 20090318
<ACCEPTANCE-DATETIME>20090318141330
ACCESSION NUMBER:		0000943374-09-000479
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090316
FILED AS OF DATE:		20090318
DATE AS OF CHANGE:		20090318

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Flowe Ira McDonald Jr
		CENTRAL INDEX KEY:			0001428494

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23971
		FILM NUMBER:		09690572

	MAIL ADDRESS:	
		STREET 1:		519 SOUTH NEW HOPE ROAD
		CITY:			GASTONIA
		STATE:			NC
		ZIP:			28054

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CITIZENS SOUTH BANKING CORP
		CENTRAL INDEX KEY:			0001051871
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				542069979
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		245 WEST MAIN AVENUE
		CITY:			GASTONIA
		STATE:			NC
		ZIP:			28052-4140
		BUSINESS PHONE:		7048685200

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 2249
		CITY:			GASTONIA
		STATE:			NC
		ZIP:			28053-2249

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GASTON FEDERAL BANCORP INC
		DATE OF NAME CHANGE:	19971222
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4_flowe-031709ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-03-16</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001051871</issuerCik>
        <issuerName>CITIZENS SOUTH BANKING CORP</issuerName>
        <issuerTradingSymbol>CSBC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001428494</rptOwnerCik>
            <rptOwnerName>Flowe Ira McDonald Jr</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>519 SOUTH NEW HOPE ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>GASTONIA</rptOwnerCity>
            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>28054</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Senior VP of Subsidiary Bank</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7000</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3382</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By his ESOP</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (Right to Buy)</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-03-16</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>201</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2019-03-16</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>201</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>201</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeHolding>
            <securityTitle>
                <value>Stock Option (Right to Buy)</value>
                <footnoteId id="F3"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>8</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2018-06-16</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>5000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>5000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Stock Option (Right to Buy)</value>
                <footnoteId id="F4"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>12.50</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2005-10-18</value>
            </exerciseDate>
            <expirationDate>
                <value>2014-10-18</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>7500</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Includes 5,000 Restricted Stock Awards that will vest over a five-year period, commencing on June 16, 2008, the date of the
 award, at the rate of 10% on June 16, 2009, 10% on June 16, 2010, 10% on June 16, 2011, 35% on June 16, 2012, and 35% on
 June 16, 2013; and includes 2,000 Recognition and Retention awards that will cliff vest on January 22, 2012, five years
 after the date of the award.  Accordingly, no shares have vested and 7,000 shares have not vested.</footnote>
        <footnote id="F2">This incentive stock option vests in five equal annual installments, with the first installment vesting one year from the
 date of grant, or on March 16, 2010, and continuing each anniversary thereafter through March 16, 2014.</footnote>
        <footnote id="F3">This incentive stock option vests in five equal annual installments, with the first installment vesting one year from the
 date of grant, or on June 16, 2009, and continuing each anniversary thereafter through June 16, 2013.</footnote>
        <footnote id="F4">This incentive option was granted on October 18, 2004, vests over a five year-period at the rate of 20% per year, and is 80%
 vested.  Accordingly, 6,000 options have vested and 6,701 options have not vested.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Ira McDonald Flowe, Jr.</signatureName>
        <signatureDate>2009-03-17</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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