Citizens South
Banking Corporation

Keefe, Bruyette & Woods, Inc.

Community Bank Investor Conference

New York, NY

July 26-28, 2010

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 looking statements.

Agenda

• Overview

• Strategy / Markets / Management

• Financial Performance

• FDIC-Assisted Acquisition of Bank
of Hiawassee

• 2010 Outlook

• Q & A

Overview

• Largest community bank headquartered in Charlotte region

• Founded in 1904

• Converted from a MHC in 1998

• Fully Public in 2001

• Three acquisitions since 2001 (one FDIC-assisted)

• Assets of $1.1 billion

• 16 offices in Charlotte region - 5 in North Georgia

Investment Highlights

• Attractive branch footprint in growth markets

• Experienced management team

• Strong asset quality and capital position

• Proven acquirer and integrator

Citizens South Headquarters

Current Locations

Market Area-2010

Charlotte Market Data

• Eight Fortune 500 companies are headquartered in Charlotte.(1)

• Housing prices in the market have stabilized.(2)

• Increasing business diversification is a source of strength.

• NASCAR

• Energy

• Technology

(1) Charlotte Chamber of Commerce

(2) Case-Shiller home-price index, April 2010

Charlotte Area's Fortune 500 Headquarters
Name	Revenue	Rank
Bank of America (Banking)	$150.5 billion	5
Lowe's (Retail)	$47.2 billion	42
Duke Energy (Utilities)	$12.7 billion	181
Nucor (Metals)	$11.2 billion	206
Family Dollar (Retail)	$7.4 billion	305
Goodrich Corp. (Aerospace and Defense)	$6.7 billion	334
Sonic Automotive (Automotive Retailing)	$6.3 billion	345
SPX (Electronics)	$4.9 billion	427

Experienced Management

Name and Experience

Financial Performance

Gary F. Hoskins

Executive Vice President

Chief Financial Officer

Balance Sheet

Financial Performance

Stock Price (07/22/2010)	$5.16
Tangible Book Value (06/30/2010)	$6.73
Price to Tangible Book Value	76.7%
Dividend Yield ($0.16)	3.1 %
NASDAQ Global Market	CSBC

Stock Information

Non-Covered Loan Portfolio
Composition

All data as of 06/30/2010

Asset Quality

All data as of 06/30/2010

Nonperforming Loans by Type

All data as of 06/30/2010

Refers to non-covered loans only

All data as of 06/30/2010

Deposit Composition

Net Interest Margin

Note: Net interest margin is calculated on a fully tax equivalent basis.

FDIC-Assisted Acquisition of

Bank of Hiawassee

Dan M. Boyd

Executive Vice President

Chief Operating Officer

Bank of Hiawassee Acquisition

• Closed March 19, 2010

• Five offices in North Georgia along North Carolina border

• Bank of Hiawassee had over $300 million in assets

• Approximately $227 million in loans

• Approximately $295 million in deposits

• Located in Northeast Georgia

• Over 100 year old with “sticky” deposits

• FDIC assistance created $10 million after-tax BPO

• $15 million capital raise - private placement

Georgia Franchise

• Successfully hired experienced
North Georgia management

• Data Conversion - July 23,
2010

• $6.0 Million estimated cost
saves

• 80 % / 95% FDIC loss-share
agreement

• Numerous additional FDIC-
assisted opportunities in North
Georgia to fill out franchise
footprint

2010 Outlook and Priorities

Kim S. Price

President

Chief Executive Officer

Long Term Objectives

• Create the dominant community banking franchise in our markets

• Focus on gathering core deposits

• Asset Quality - Job One

• Personal attention to our customers

• Pricing and growth discipline

• Continued interest in FDIC-assisted acquisitions

• Repay TARP

• Capital Strength

• Solid Asset Quality

• Strong Core Deposit Franchise

• Market Share Strength

• Experienced Management Team

• Opportunistic Position

• Attractive Valuation

Why Own Citizens South Stock?

Thank You

We appreciate your interest in

Citizens South Banking Corporation

Contact Information

Citizens South Banking Corporation

Nasdaq: CSBC

519 South New Hope Road

Gastonia, NC 28054

For More Information Contact

Kim S. Price

President and Chief Executive Officer

Citizens South Banking Corporation

(704) 884-2260

Welcome to the South

Banks used to be symbols of
responsibility and security.

For us, they still are. Thank you
for your interest in Citizens
South Banking Corporation.