Citizens South Banking 8-K/A FDIC-Assisted Acquisition of Bank of Hiawassee

March 2010

FDIC-Assisted Acquisition of Bank of Hiawassee

$15 Million Capital Raise

NASDAQ / CSBC

Citizens South Banking Corporation

Exhibit 99.1

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. There can be no assurance the such factors

will not affect the accuracy of such forward looking statements.

Additionally, there can be no assurance that the Company will realize

the anticipated benefits related to the Bank of Hiawassee

acquisition. The Company undertakes no obligation to publicly revise

any forward looking statements to reflect events and circumstances

that may arise after the date hereof.

3

Transaction Summary

Acquired $300 million in assets and assumed $324

million in liabilities of Hiawassee, Georgia-based

Bank of Hiawassee

Loss sharing agreement covers substantially all

acquired loans, reimburses 80% of losses up to $102

million and 95% of losses thereafter

Citizens South increases total assets to over $1.1

billion and expands footprint to 21 branches across

three states

Completed simultaneous capital raise of $15 million

4

Deposit Market Share

Columbia

Knoxville

Spartanburg

Greenville

South Carolina

Georgia

Tennessee

Charlotte

Hiawassee

Blairsville

Greensboro

Atlanta

North Carolina

Chattanooga

Winston-Salem

Columbia

Knoxville

Spartanburg

Greenville

South Carolina

Georgia

Tennessee

Charlotte

Hiawassee

Blairsville

Greensboro

Atlanta

North Carolina

Chattanooga

Winston-Salem

CSBC

Bank of Hiawassee

Total

Market

Deposits

Share

Rank

Institution

($MM)

(%)

Branches

1

CSBC Pro Forma

$263.7

61.75

3

2

United Community Banks Inc.

115.6

27.08

1

3

Stephens Federal Bank

24.0

5.61

1

4

SCBT Financial Corp.

23.7

5.55

1

Market Total

$427.0

6

Total

Market

Deposits

Share

Rank

Institution

($MM)

(%)

Branches

1

United Community Banks Inc.

$1,285.3

87.52

3

2

Community & Southern Hldgs Inc

115.6

7.87

1

3

CSBC Pro Forma

63.2

4.30

1

4

Cadence Financial Corp.

4.5

0.31

1

Market Total

$1,468.5

6

Total

Market

Deposits

Share

Rank

Institution

($MM)

(%)

Branches

1

United Community Banks Inc.

$277.2

49.92

3

2

Community & Southern Hldgs Inc

100.9

18.17

1

3

BB&T Corp.

55.1

9.93

2

4

Appalachian Bancshares Inc.

34.0

6.12

1

5

CSBC Pro Forma

33.2

5.98

1

6

Cadence Financial Corp.

29.0

5.23

1

7

SunTrust Banks Inc.

25.9

4.66

1

Market Total

$555.3

10

Towns County, GA

Union County, GA

Fannin

County, GA

Source: SNL Financial

Includes deposit market share data for Bank of Hiawassee’s counties of operation

Data as of 6/30/09

5

1-4 Family

34%

C&D

22%

Consumer /

Other

1%

CRE

33%

C&I

6%

Multifamily

4%

1-4 Family

24%

Multifamily

3%

C&I

6%

CRE

25%

Consumer /

Other

4%

C&D

38%

1-4 Family

31%

Multifamily

3%

C&I

6%

CRE

31%

Consumer /

Other

2%

C&D

27%

Loan Portfolio –

12/31/09

Citizens South Bank

Bank of Hiawassee

Pro Forma*

Loan Portfolio ($000)

Amount

% of Total

Construction & Land Development

$131,259

21.60

%

1-4 Family

209,073

34.40

Multifamily Residential

21,857

3.60

Commercial Real Estate

202,409

33.31

Commercial & Industrial

39,158

6.44

Consumer / Other

3,943

0.65

Gross Loans & Leases

$607,699

100.00

%

Loan Portfolio ($000)

Amount

% of Total

Construction & Land Development

$108,400

38.45

%

1-4 Family

68,589

24.33

Multifamily Residential

7,974

2.83

Commercial Real Estate

70,212

24.90

Commercial & Industrial

16,339

5.80

Consumer / Other

10,425

3.70

Gross Loans & Leases

$281,939

100.00

%

Loan Portfolio ($000)

Amount

% of Total

Construction & Land Development

$239,659

26.94

%

1-4 Family

277,662

31.21

Multifamily Residential

29,831

3.35

Commercial Real Estate

272,621

30.64

Commercial & Industrial

55,497

6.24

Consumer / Other

14,368

1.62

Gross Loans & Leases

$889,638

100.00

%

Source: SNL Financial

Data bank level as of 12/31/09

*Estimated pro forma does not include purchase accounting marks or possible exclusion of select loans

6

Deposit Composition –

12/31/09

Citizens South Bank

Bank of Hiawassee

Pro Forma*

Deposit Portfolio ($000)

Amount

% of Total

Demand Deposits

$46,117

7.54

%

NOW Accounts

113,564

18.56

Money Market & Savings

131,662

21.51

Retail Time Deposits

178,102

29.10

Jumbo Time Deposits

142,578

23.30

Total Deposits

$612,023

100.00

%

Deposit Portfolio ($000)

Amount

% of Total

Demand Deposits

$16,158

4.76

%

NOW Accounts

24,779

7.30

Money Market & Savings

75,264

22.16

Retail Time Deposits

142,186

41.87

Jumbo Time Deposits

81,210

23.91

Total Deposits

$339,597

100.00

%

Deposit Portfolio ($000)

Amount

% of Total

Demand Deposits

$62,275

6.54

%

NOW Accounts

138,343

14.54

Money Market & Savings

206,926

21.74

Retail Time Deposits

320,288

33.66

Jumbo Time Deposits

223,788

23.52

Total Deposits

$951,620

100.00

%

NOW Accounts

7%

Money Market

& Savings

22%

Jumbo Time

Deposits

24%

Retail Time

Deposits

42%

Demand

Deposits

5%

NOW Accounts

19%

Demand

Deposits

8%

Retail Time

Deposits

29%

Jumbo Time

Deposits

23%

Money Market

& Savings

22%

NOW Accounts

15%

Demand

Deposits

7%

Retail Time

Deposits

34%

Jumbo Time

Deposits

24%

Money Market

& Savings

22%

   Source: SNL Financial

Data bank level as of 12/31/09

*Estimated pro forma does not include possible exclusion of select deposits

7

Summary

Estimated after-tax gain on bargain purchase option of

approximately $10 million

Based on preliminary analysis and subject to significant

modification, the Company currently estimates the

transaction will contribute approximately $0.16 to $0.24 to

earnings per share for each of the next few years, pro forma

for the capital raise

Slightly accretive to tangible book value per share at closing,

pro forma for the capital raise

Attractive core deposit base from 100+ year operating history

Approximately neutral to TCE/TA, assuming conversion of

preferred securities

Strong pro forma capital ratios

Loan loss protection on substantially all acquired loans

March 2010

FDIC-Assisted Acquisition & Capital Raise

NASDAQ / CSBC

Citizens South Banking Corporation