Citizens South Banking 8-K Regulation FD Disclosure

EXHIBIT 99.1

1

Citizens South Banking Corporation

Janney Montgomery Scott

The Bank and Thrift Conference

Philadelphia, PA

May 13-14, 2010

2

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.

3

Overview of Presentation

ØCorporate Profile

ØCharlotte Market Data

ØStock / Financial Information

ØFDIC-Assisted Acquisition of
Bank of Hiawassee

ØCSBC Business Strategy

ØHistorical Financial Performance

ØWhy own CSBC stock?

4

Corporate Profile

ØFounded in 1904

ØConverted from a Mutual in 1998

ØThree acquisitions since 2001

ØOne FDIC-assisted

ØTwenty-one offices in NC, SC, and GA

ØAssets exceeding $1.1 billion

Market Area and Branch Footprint

ØEight Fortune 500 companies are
represented in Charlotte.

ØHousing prices in the market have
recently stabilized. (1)

ØIncreasing business diversification is a
source of strength.

(1)Case-Shiller home-price index

8

03-31-2010

Total Assets                 $  1,132,652

Gross Loans                 $    787,643

Total Deposits              $     884,127

Common Equity            $      67,500

TARP                            $      20,610

Preferred Stock            $        8,280

Total Capital                $      96,390

Balance Sheet Data (000’s)

______________________________________________

9

Stock Information

Stock Price (05-10-2010)               $6.15

Price to BV                          83.22 %

Price to TBV                        85.89 %

Dividend Yield  ($0.16)                   2.6 %

NASDAQ Global Market - CSBC

10

Selected Financial Ratios

03-31-2010

Net Interest Margin              3.20 %

NPA’s / Total Assets           1.78 %

Efficiency Ratio (1)                                   77.35 %

TCE / Tang. Assets (2)                         6.51 %

Total RB-Capital Ratio       15.53 %

(1)Efficiency Ratio excludes $18.7 million gain on acquisition of Bank of
Hiawassee in the quarter ended March 31, 2010.

(2)Includes 8,280 shares of convertible preferred stock that are expected to
convert to 1,840,000 shares of common stock.

11

Net Interest Margin

Note:Peer group is composed of regional institutions of a comparable financial condition, including:First Bancorp. SCBT Financial
Corporation,First Community Bancshares, Inc., Yadkin Valley Financial Corporation, FNB United Corporation, NewBridge Bancorp,
Southern Community FinancialCorporation, Capital Bank Corporation, BNC Bancorp, Bank of Granite Corporation, Crescent Financial
Corporation, Peoples Bancorp of North Carolina, Inc., and American National Bankshares, Inc.

13

(1) Includes only “non-covered” assets

15

Acquisition of Bank of Hiawassee

ØAcquisition date-March 19, 2010

ØAt acquisition, Bank of Hiawassee had over
$300 million in assets

ØApproximately $227 million in loans

ØApproximately $295 million in deposits

ØLocated in Northeast Georgia

ØOver 100 years old

ØFive full service locations

2010 Key Points

ØWell Capitalized

-15.53 %Total Risk-based Capital

ØStrong Credit Quality Ratios

-1.78 %NPAs to Total Assets

ØFDIC-assisted acquisition of Bank of
Hiawassee

Ø$15 million capital raise through private
placement alongside acquisition

Note: Ratios are as of March 31, 2010

Citizens South Long Term Objectives

ØCreate the Dominant Community Banking
Franchise in the Markets that We Serve

ØFocus on Gathering Core Deposits

ØAsset Quality - Job One

ØPersonal Attention to our Customers

ØPricing and Growth Discipline

ØContinued Interest in FDIC-assisted Acquisitions

19

Nonperforming Loans
(Includes non-covered loans only)

Non-covered Loan Portfolio (March 31, 2010)	Balance (000's)	NPL’s (000’s)	% Portfolio Non- performing
Residential Permanent Loans	$92,023	$ 1,618	1.76%
Residential Construction Loans	$9,869	$443	4.49%
Commercial Construction Loans	$11,647	$-	0.00%
Land Loans	$42,482	$ 6,148	14.47%
Residential A&D Loans	$34,321	$ 2,890	8.42%
Multifamily Property Loans	$25,378	$-	0.00%
Other Commercial RE Loans	$235,479	$ 1,422	0.60%
Commercial Business Loans	$37,523	$131	0.35%
Consumer Loans	$117,470	$ 1,083	0.92%
Total Non-covered Loans	$606,192	$13,735	2.27%

Total Core Non-Time Deposits

22

Why Own CSBC Stock?

ØCapital Strength

ØSolid Asset Quality

ØStrong Core Deposit Franchise

ØMarket Share Strength

ØExperienced Management Team

ØOpportunistic Position

ØAttractive Valuation

23

We appreciate your interest
in Citizens South Banking
Corporation.

Thank You