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 19, 2006

Citizens South Banking Corporation
(Exact Name of Registrant as Specified in Charter)
Delaware	0-23971	54-2069979
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer 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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02           Results of Operations and Financial Condition

          On July 19, 2006, Citizens South Banking Corporation issued a press release to announce a correction to its earning release on July 17, 2006. The text of the press release and related financial supplements are included as Exhibit 99.1 to this report. The information included in the text and financial supplements of the press releases is considered to be “furnished” under the Securities Exchange Act of 1934.  The Company will include final financial statements and additional analyses for the three- and six-month periods ended June 30, 2006 and 2005, as part of its Form 10-Q covering that period.

Item 9.01          Financial Statements and Exhibits

                           (d)          Exhibits

                                           99.1          Correction to Earnings Press Release of Citizens South Banking Corporation

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 19, 2006	By:	/s/ Kim S. Price
		Kim S. Price
		President and Chief Executive Officer
	By:	/s/ Gary F. Hoskins
		Gary F. Hoskins
		Chief Financial Officer

EXHIBIT INDEX

99.1          Correction to Earnings Press Release of Citizens South Banking Corporation

EX-99.1

Exhibit 99.1

CITIZENS SOUTH BANKING CORPORATION ANNOUNCES BALANCE SHEET CORRECTION TO JULY 17TH PRESS RELEASE - EARNINGS ARE UNAFFECTED

    GASTONIA, N.C., July 19 /PRNewswire-FirstCall/ -- Citizens South Banking Corporation (Nasdaq: CSBC), the holding company for Citizens South Bank, today announced that it is correcting its earnings release dated July 17, 2006. Assets as of June 30, 2006, were $716.2 million, and not $718.2 million as previously reported.  Deposits were $536.3 million, and not $538.3 million as previously reported.  Earnings information remains unchanged.  Revised tables reflecting this information follow.

Citizens South Banking Corporation
Selected Financial Information
(dollars in thousands, except per share data)

	Quarter ended June 30, 2006			Quarter ended June 30, 2005			Six Months ended June 30, 2006			Six Months ended June 30, 2005
Reconciliation of GAAP to non-GAAP Measures:
Net income, as reported (GAAP)	$	1,347		$	901		$	2,534		$	1,803
Non-operating items:
(Gain)/ loss on sale of assets, net		(9	)		5			48			(63	)
Merger and integration related expense		0			0			57			0
Related income taxes (39%)		3			(2	)		(41	)		25
Net Operating Income	$	1,341		$	904		$	2,598		$	1,765
Per Share Data:
Average common shares outstanding, basic		8,049,042			6,969,151			8,053,954			7,026,493
Basic net income - GAAP	$	0.17		$	0.13		$	0.31		$	0.26
Basic net income - Operating		0.17			0.13			0.32			0.25
Average common shares outstanding, diluted		8,123,232			7,029,230			8,131,987			7,115,649
Diluted net income - GAAP	$	0.17		$	0.13		$	0.31		$	0.25
Diluted net income - Operating		0.17			0.13			0.32			0.25
Cash dividends declared	$	0.075		$	0.07		$	0.15		$	0.14
Period-end book value		10.24			9.76			10.24			9.76
Financial Ratios (annualized):
Return on average stockholders’ equity - GAAP		6.37	%		5.16	%		6.05	%		5.12	%
Return on average stockholders’ equity - Operating		6.34			5.18			6.19			5.01
Return on average assets - GAAP		0.76	%		0.71	%		0.72	%		0.71	%
Return on average assets - Operating		0.76			0.71			0.74			0.70
Efficiency ratio - GAAP		65.04	%		70.57	%		67.40	%		70.02	%
Efficiency ratio - Operating		65.13			70.44			66.73			70.25
Net interest margin		3.41	%		3.23	%		3.41	%		3.26	%
Average equity to average assets		11.90			13.68			11.97			13.92
Asset Quality Data:
Allowance for loan losses	$	5,414		$	3,271		$	5,414		$	3,271
Nonperforming loans		1,974			1,413			1,974			1,413
Nonperforming assets		2,653			1,745			2,653			1,745
Net charge-offs (recoveries)		127			33			253			33
Allowance for loan losses to total loans		1.06	%		0.99	%		1.06	%		0.99	%
Nonperforming loans to total loans		0.39			0.43			0.39			0.43
Nonperforming assets to total assets		0.37			0.34			0.37			0.34
Average Balances:
Total assets	$	710,298		$	511,701		$	706,397		$	509,834
Loans receivable, net of unearned income		487,137			329,259			480,045			326,033
Interest-earning assets		613,899			454,617			610,500			450,809
Total deposits		528,050			371,967			523,381			370,855
Interest-bearing deposits		495,004			351,332			490,332			351,726
Interest-bearing liabilities		583,864			412,648			579,606			410,067
Stockholders’ equity		84,613			69,996			84,564			70,965
At Period End:
Total assets	$	716,160		$	514,894		$	716,160		$	514,894
Loans receivable, net		504,499			327,927			504,499			327,927
Interest-earning assets		626,109			455,644			626,109			455,644
Total deposits		536,265			372,385			536,265			372,385
Interest-bearing liabilities		588,234			417,636			588,234			417,636
Stockholders’ equity		84,530			70,877			84,530			70,877

SOURCE  Citizens South Banking Corporation
          -0-                                                  07/19/2006
          /CONTACT:  Gary F. Hoskins, CFO of Citizens South Banking Corporation,
+1-704-884-2263, or gary.hoskins@citizenssouth.com /
          /Web site:  http://www.citizenssouth.com/