Citizens South Banking 8-K Citizens South Banking Corporation Announces Balance Sheet Correction to July 17TH Press Release - Earnings Are Unaffected

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/