CSBC Citizens South Banking Corp. (MM)

Citizens South Bank has been awarded its 35th consecutive 5-Star Superior rating for financial strength and stability from BauerFinancial, Inc.,of Coral Gables, Florida for the quarter ended March 31, 2011. BauerFinancial, Inc., which is the nation's leading independent bank and credit union rating and research firm, has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983. A rating of 5-Stars is the highest rating attainable from BauerFinancial and is based on the overall financial picture of the institution.

Earning a 5-Star rating indicates that Citizens South Bank is one of the strongest banks in the nation. In fact, this is the 35th consecutive quarter that Citizens South Bank has earned this highest honor. 

No institution pays for its rating, nor can it be excluded from the rating process. Consumers may obtain star-ratings of financial institutions by visiting www.bauerfinancial.com.

Since 1904, Citizens South Bank has continually drawn on thoughtful decision making, sound fiscal practices and a deliberate approach to growth to remain financially healthy through good times and bad. Now more than ever it is essential that you are served by a bank that is financially sound. Our bank is sound and well-capitalized, as evidenced by a 5-Star Superior rating for financial strength and stability by BauerFinancial, the nation's leading independent bank rating and research firm. We have received a 5-Star rating for 35 consecutive quarters.

About Citizens South Bank

Citizens South Bank was founded in 1904 and is headquartered in Gastonia, NC. Deposits are FDIC insured up to applicable regulatory limits. As of March 31, 2011, the Bank had $1.0 billion in assets with 21 full-service offices in the Charlotte and North Georgia regions. Citizens South Bank is an Equal Housing Lender and Member, FDIC. The Bank is a wholly owned subsidiary of Citizens South Banking Corporation. Shares of the common stock of the Holding Company trade on the NASDAQ Global Market under the ticker symbol "CSBC". The Bank maintains a website at www.citizenssouth.com that includes information on the Holding Company, along with a list of products and services, branch locations, current financial information, and links to the Holding Company's filings with the SEC.

The Citizens South Banking Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7099

The BauerFinancial, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9952

CONTACT: Kim S. Price, President/CEO
         (704) 884-2260
         Kim.Price@citizenssouth.com