8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the

Securities and Exchange Act of 1934

Date of Report: ­July 28, 2009

Citizens South Banking Corporation

(Exact Name of Registrant as Specified in Charter)

Delaware	0-23971	54-2069979
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer
of incorporation)		Identification No.)

519 South New Hope Road, Gastonia, North Carolina	28054-4040
(Address of Principal Executive Offices)	(Zip Code)

Registrant's telephone number, including area code: 704-868-5200

Item 7.01.        Regulation FD Disclosure

On July 29, 2009, Citizens South Banking Corporation intends to present to interested investors and analysts written investor presentation material, which includes, among other things, a review of financial results and trends through the period ended June 30, 2009.

The information provided pursuant hereto shall not be deemed incorporated by reference by any general statement incorporating by reference the Form 8-K into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and shall not otherwise be deemed filed under such Acts.

Item 9.01.        Exhibits

99 Additional Exhibits:

(a)           Text of written presentation that Citizens South Banking Corporation intends to make available to interested investors and analysts on July 29, 2009, at the Keefe, Bruyette & Woods, Inc. Annual Community Bank Investor Conference in New York, New York.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	CITIZENS SOUTH BANKING CORPORATION
DATE:  July 28, 2009	By:	/s/ Kim S. Price
		Kim S. Price
		President and Chief Executive Officer

By:	/s/ Gary F. Hoskins
	Gary F. Hoskins
	Chief Financial Officer

2

EXHIBIT 99 (a)

Investor Presentation Material

3

EX-99.A

Citizens South Banking Corporation

KBW Community Bank

Investor Conference

New York, New York

July 29, 2009

Forward Looking Statements

Statements contained in this presentation, which are
not historical facts, are forward looking statements.  The
Company’s senior management or directors may from
time to time make public forward looking statements
concerning matters herein.  Such forward looking
statements are estimates reflecting the best judgment of
senior management or the directors based on current
information. A number of factors that could affect the
accuracy of such forward looking statements are
identified in the public filings made by the Company with
the Securities and Exchange Commission on Forms 10-Q
and 10-K.  The Company undertakes no obligation to
publicly revise any forward looking statements to reflect
events and circumstances that may arise after the date
hereof. There can be no assurance the such factors will
not affect the accuracy of such forward looki
ng statements.

2

Overview of Presentation

Corporate Profile

Charlotte Market Data

Stock / Financial Information

CSBC Business Strategy

Historical Financial Performance

Why own CSBC stock?

3

Corporate Profile

Founded in 1904

Converted from a Mutual in 1998

Two acquisitions since 2001

Fifteen full-service offices and
one LPO in the Charlotte Region

Assets exceeding $800 million

4

Executive Management Team

ExperiencePrior Employer

Kim S.  Price         27        First Nat’l Bank / FHLB

President & CEO

Gary F. Hoskins           22        FHLB Atlanta / OTS

  Chief Financial Officer

Michael R. Maguire      28        First Union Nat’l Bank

Chief Credit Officer

Daniel M. Boyd, IV       24        Wachovia / First Gaston

Chief Operating Officer

Paul L. Teem, Jr.          25        Citizens South Bank

  Chief Administrative Officer

5

Market Area

Charlotte Region

6

Fortune 500 Companies in Charlotte

7

Housing Prices by Metro Area

8

Historical Housing Prices

9

Deposit Market Share

Counties Where Citizens South has a Branch Office

          Gaston, Rowan, Iredell, & Union Counties

                           As of June 30, 2008

* = Recently merged

100.00%

$9,510,867

243

Total Deposits - All CSB Counties

25.06%

$2,383,354

86

All other institutions

2.51%

$239,120

6

Yadkin Valley B&T Co.

10

2.53%

$240,365

6

American Community (Yadkin)  *

9

3.79%

$360,569

11

Community One Bank

8

3.81%

$362,501

8

Fifth Third Bank  (First Charter)  *

7

3.96%

$376,291

9

Farmers and Merchants Bank

6

5.64%

$536,151

16

SunTrust Bank

5

6.18%

$587,437

15

Citizens South Bank

4

9.74%

$926,374

23

Bank of America

3

15.75%

$1,497,913

29

Branch Banking and Trust Co.

2

21.04%

$2,000,792

34

Wachovia Bank (Wells Fargo)  *

1

Market %

Deposits

Branches

Financial Institution

Rank

Source: FDIC

10

Deposit Market Share

Charlotte Metropolitan Area   

         As of June 30, 2008

Source: FDIC

100.00%

$108,994,464

432

Total Deposits - Charlotte MSA

2.07%

$2,256,992

79

All other institutions

0.16%

$173,483

4

Bank of Granite

15

0.16%

$179,029

5

Community One Bank

14

0.21%

$230,503

6

South Carolina B&T (Scottish)  *

13

0.22%

$242,796

1

Park Sterling Bank

12

0.27%

$296,063

2

First Trust Bank

11

0.33%

$362,960

10

American Comm Bank  (Yadkin) *

10

0.34%

$373,534

11

Citizens South Bank

9

0.36%

$389,800

4

New Dominion Bank

8

0.71%

$776,149

18

RBC Bank USA

7

0.80%

$875,475

31

First Citizens B&T Co.

6

1.09%

$1,188,163

35

SunTrust Bank

5

1.69%

$1,846,996

34

Fifth Third Bank (First Charter)  *

4

3.15%

$3,438,361

55

Branch Banking and Trust

3

19.13%

$20,848,398

57

Bank of America

2

69.28%

$75,515,762

80

Wachovia Bank (Wells Fargo)  *

1

Market %

Deposits

Branches

Financial Institution

Rank

* = Recently merged

11

Peer Group Data

12

Texas Ratio

On 06-30-09 CSBC had a Texas
ratio of 20.1% and traded at 72.8%
of tangible book

13

Balance Sheet Data

06-30-09

Total Assets   $  836,283

Gross Loans  $  629,963

Total Deposits  $  616,233

Common Equity   $    83,609

Preferred Stock          20,548

Total Capital  $  104,157

14

Stock Information

Stock Price (06-30-09)          $  5.15

Price to BV  ($11.11)       46.4 %

Price to TBV  ($7.07)72.8 %

2008 EPS Actual   $  0.42

2009 EPS Consensus   $ (0.06)

2010 EPS Consensus   $  0.26

Dividend Yield  ($0.16)         3.1 %

NASDAQ Global Market – CSBC

15

Selected Financial Ratios

06-30-09

Net Interest Margin      2.87 %

NPA’s / Total Assets      1.49 %

Efficiency Ratio (1)               70.55 %

TCE / Tang. Assets      6.61 %

Total RB-Capital Ratio    14.31 %

(1)  Efficiency Ratio excludes gains (losses) on sales of assets, impairment on
securities, and FDIC special assessment.

16

2009 Key Points

Well Capitalized

-  14.3 %  Total Risk-based Capital

-  13.3 %  Tier 1 Risk-based Capital

-  10.4 %  Tangible Capital

Strong Credit Quality Ratios

-  1.97 %  NPAs to Loans + OREO

-  1.49 %  NPAs to Total Assets

-  1.64 %  NPLs to Total Loans

-  1.38%  ALLL to Total Loans

Note: Ratios are as of June 30, 2009

17

Positive Publicity to TARP Utilization

Creation of CPP Mortgage Program

- Low Interest Rate

- No Closing Costs

- CSB Builders / Developers

National Recognition

- The Washington Post

- NBC Nightly News with Brian Williams

Local Recognition

- The Gaston Gazette

- The Charlotte Observer

18

Citizens South Outlook for 2009

Rough Waters Throughout 2009

-  High Unemployment

-  Continued Real Estate Weakness

Capital is KING!

Asset Quality is Very Important

Smart Growth - Leaner is Better

Citizens South is Well Positioned

-  FDIC Assisted Transactions

-  Branch Acquisitions

19

Citizens South Long Term Objectives

Create the Dominant Community
Banking Franchise in the Charlotte
Region

Focus on Gathering Core Deposits

Asset Quality – Job One

Personal Attention to our Customers

Pricing and Growth Discipline

20

Expense Control Actions

Reduced Budgeted 2009 Operating
Expenses by $1.5 Million, or 7% of 2008
Total Noninterest Expenses

Froze All Executive Salaries

Eliminated Executive Cash Bonuses

Suspended the Bank’s 401-K Match

21

Expense Control Actions

Reduced Retainer of Holding Company
Directors by 25%

Reduced and Restructured the Capacity
of the Commercial Lending Team

Deferred Current Expansion Plans

Reduced Dividend to Preserve Capital

22

Loan Portfolio Mix

      June 30, 2009

23

0.9 %

$ 1,002

$ 116,562

Consumer Loans

0.2 %

$     94

$  44,536

Commercial Business Loans

2.1 %

$ 4,473

$ 210,706

Other Commercial RE Loans

0.5 %

$     432

$  82,346

Residential Permanent Loans

1.6 %

$10,360

$ 629,962

Total Loans

2.2 %

$   683

$  31,770

Residential 1-4 Family Rental Property

-

-                    

$  20,416               

Multifamily Property Loans

0.9 %

$    379

$  43,231

Residential A & D Loans

4.6 %

$ 1,962

$  42,934

Land and Lot Loans

-

-

$  12,416

Commercial Construction Loans

5.3 %

$  1,335

$  25,045

Residential Construction Loans

% Portfolio

NPL’s

Balance (000's)

Loan Portfolio (June 30, 2009)

Nonperforming Loans

24

Nonperforming Assets         
(as a percentage of total assets)

25

Deposit Mix

                                        June 30, 2009  


Note: Brokered CDs totaled $99,000

26

Total Core Non-Time Deposits

27

Net Interest Margin

28

Why Own CSBC Stock?

Capital Strength  

Solid Asset Quality  

Strong Core Deposit Franchise

Market Share Strength

Experienced Management Team

Opportunistic Position

Attractive Valuation

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We appreciate your interest
in Citizens South Banking
Corporation.

Thank You

30