Citizens South Banking 8-K Regulation FD Disclosure

Exhibit 99

Citizens South Banking Corporation

KBW Community Bank

Investor Conference

The Waldorf – Astoria
New York, New York
August 1, 2006

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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.

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Overview of Presentation

• Corporate Profile

• Vision and Business Strategy

• Historical Financial Performance

• Why own Citizens South Banking Corporation stock

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Corporate Profile

• Founded in 1904

• Converted to a Mutual Holding Company in 1998

• Acquired Innes Street Financial Corporation, Salisbury , NC in 2001

• Converted to a Stock Holding Company in 2001

• Acquired Trinity Bank, Monroe, NC in 2005

• Operate 14 full-service offices and two loan production offices with 146 employees

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Stock Information

Stock Price as of 7-18-06	$12.50
Company 2006 Guidance	$0.65 to $0.69
KBW 2007 Estimate	$0.84
Book Value (06-30-06)	$10.24
Cash Dividend (Annualized)	$0.30
Price to 2006 Guidance	19.2x to 18.1x
Price to KBW 2007 Est.	14.9x
Price to Book Value	122.1%
Dividend Yield	2.4%

Listed on NASDAQ Global Market under the ticker symbol “CSBC”

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Selected Financial Information
(Dollars in thousands)

	June 30, 2006
Assets	$	716,160
Loans	$	509,913
Deposits	$	536,265
Equity	$	84,530
YTD Net interest margin		3.41	%
YTD Return on Assets		0.74	%
YTD Return on Equity		6.19	%
Efficiency Ratio		66.73	%
Equity / Assets		11.80	%

Ratios exclude net gains or losses from the sale of assets and merger related expenses

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Recent Developments

• Acquired Trinity Bank in Monroe, NC

• Initiated a Performance Acceleration Program (Focus)

• Realigned management team and incentive bonus plan

• Consolidated data processing and back-office functions from Trinity Bank

• Discontinued operations of Hispanic initiative

• Opened a full-service office in Belmont, NC

• Opened a LPO in Rock Hill, SC

• Reported 40.5% increase in earnings for 1^st half of 2006 compared to 1^st half of 2005

• Organic loan growth of 15% for 2006

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The Citizens South Market Area

Our Charlotte Regional Presence

[GRAPHIC APPEARS HERE]

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Deposit Market Share

Deposit Market Share by Counties Where Citizens South has a Branch Office – Gaston, Rowan, Iredell, & Union – As of June 30, 2005

Rank	Financial Institution	Branches	Deposits (000's)		Market Share
1	Branch Banking and Trust Co.	24	$	1,176,471	18.84%
2	Wachovia Bank	27	$	1,173,922	18.80%
3	Bank of America	17	$	550,871	8.82%
4	SunTrust Bank	14	$	532,559	8.53%
5	Citizens South Bank	14	$	504,270	8.08%
6	Farmers and Merchants Bank	9	$	328,863	5.27%
7	First Charter Bank	8	$	328,059	5.25%
8	American Community Bank	5	$	207,687	3.33%
9	First Citizens Bank & Trust	7	$	202,217	3.24%
10	Yadkin Valley Bank	4	$	197,030	3.16%

Source: FDIC

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Deposit Market Share

Deposit Market Share  - Charlotte, Gastonia, Rock Hill Metropolitan Statistical Area - As of June 30, 2005

Rank	Financial Institution	Branches	Deposits (000's)		Market Share
1	Wachovia Bank	87	$	55,958,716	62.03%
2	Bank of America	65	$	24,037,146	26.64%
3	Branch Banking & Trust	51	$	2,583,142	2.86%
4	First Charter Bank	33	$	2,093,378	2.32%
5	SunTrust Bank	33	$	1,232,410	1.37%
6	First Citizens Bank & Trust	29	$	839,755	0.93%
7	RBC Centura	17	$	786,279	0.87%
8	Citizens South Bank	10	$	317,862	0.35%
9	American Community Bank	10	$	290,040	0.32%
10	First Trust	2	$	210,329	0.23%
11	First Gaston Bank of NC	5	$	173,523	0.19%
12	South Carolina B&T	5	$	167,238	0.19%
13	Bank of Granite	4	$	148,683	0.16%
14	Regions Bank	3	$	140,476	0.16%
15	First Citizens B&T Co., Inc.	7	$	131,484	0.15%
16	Carolina First Bank	4	$	131,403	0.15%
17	Scottish Bank	4	$	131,258	0.15%

Source: FDIC

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The Charlotte Observer – May 21,2006

[GRAPHIC APPEARS HERE]

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The Charlotte Observer – June 9, 2006

[GRAPHIC APPEARS HERE]

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The Management Team

		Experience	Prior Employer
•	Kim S.  Price	24	First National Bank/FHLB
	President & CEO
•	Daniel M. Boyd, IV	21	Wachovia/First Gaston
	EVP – Commercial Banking
•	V. Burton Brinson, Jr,	29	Wachovia
	EVP – Retail Banking
•	Gary F. Hoskins	19	FHLB - Atlanta/OTS
	EVP & CFO
•	Dennis O. Livingston	30	Trinity Bank/First Union
	EVP – HR & Marketing
•	Paul L. Teem, Jr.	23	Citizens South Bank
	EVP – Chief Admin Officer
•	Michael R. Maguire	26	First Union Nat’l Bank
	SVP – Chief Credit Officer
•	J. Stephen Huffstetler	26	First Community/FUNB
	SVP – Mortgage Banking
•	Kimberly Goins Cooke	17	First Gaston Bank
	SVP – Chief Information Officer

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Vision and Business Strategy

I.	Create a Banklike Organization
	A.	Management / Culture
	B.	Restructure Balance Sheet
	C.	Grow
	D.	Generate Additional Noninterest Sources of Revenue
	E.	Manage Interest Rate Risk
	F.	Create Charlotte Regional Franchise / Footprint

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Vision and Business Strategy

II.	Enhance Shareholder Value
	A.	Leverage Capital
		1.	Grow retail and commercial banking
		2.	Establish de novo offices
		3.	Investigate branch acquisitions
		4.	Invest in related businesses
		5.	Pursue whole bank acquisitions
	B.	Manage Capital
		1.	Evaluate dividend policy
		2.	Execute stock repurchase plan

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Total Assets

[CHART APPEARS HERE]

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Net Outstanding Loans

[CHART APPEARS HERE]

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Loan Portfolio Mix

[CHART APPEARS HERE]

As of June 30, 2006

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Nonperforming Assets

[CHART APPEARS HERE]

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Total Deposits

[CHART APPEARS HERE]

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Total Core Deposits

[CHART APPEARS HERE]

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Deposit Mix

[CHART APPEARS HERE]

As of June 30, 2006

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Noninterest Income
(excludes net gains and losses on sales of assets)

[CHART APPEARS HERE]

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Net Interest Margin

[CHART APPEARS HERE]

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Quarterly Operating EPS

[CHART APPEARS HERE]

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Outstanding Shares

[CHART APPEARS HERE]

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Why Own CSBC?

• Dynamic Market – fifth fastest growing MSA in USA

• Charlotte Regional Franchise / Footprint

• Balance Sheet Transformation

• Attractive Price – 14.9x 2007 KBW est.

• Experienced Management Team

• Proven Leverage Performance

• Earnings Momentum

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Stock Performance Since IPO

Total Return Performance

[CHART APPEARS HERE]

	Period Ending
Index	04/13/98	12/31/98	12/31/99	12/31/00	12/31/01	12/31/02	12/31/03	12/31/04	12/31/05
Citizens South Banking Corporation	10,000	13,094	11,648	11,517	16,120	23,843	33,225	34,654	29,646
Russell 2000	10,000	8,864	10,748	10,423	10,682	8,494	12,507	14,801	15,474
SNL Southeast Thrift Index	10,000	7,926	7,864	7,740	11,834	13,882	21,052	24,886	22,646

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Thank You.

We appreciate your interest in Citizens South Banking Corporation.

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