First South Bank Strengthens Commitment to Eastern North Carolina
Announces Agreement to Purchase Nine Branch Banking Offices
WASHINGTON, N.C., Sept. 3, 2014
WASHINGTON, N.C., Sept. 3, 2014 /PRNewswire/ --First South Bancorp, Inc. (the
"Company") (NASDAQ: FSBK), the parent holding company of First South Bank (the
"Bank"), announced today the signing of an agreement under which the Bank has
agreed to purchase the branch banking operations of nine locations in North
Carolina from Bank of America, N.A. The branch offices are located in
Elizabethtown, Goldsboro, Kenansville, Kinston, Kitty Hawk, Morehead City,
Mount Olive, Wallace and Wilson, North Carolina. The purchase is expected to
add approximately $261.4 million of deposits. The Bank has also agreed to
purchase the fixed assets and a small amount of loans related to the purchased
branches. The Bank expects the transaction to close in the fourth quarter of
2014, subject to approval by regulators and satisfaction of customary closing
"We look forward to welcoming these new customers, employees and communities
into the First South Bank family," said Bruce Elder, President and CEO. "First
South has a long history of serving eastern and central North Carolina and
these new markets are located right in the heart of our franchise. Expansion
into these new markets supports our strategy to capitalize on opportunities
that leverage our capital, create scale, increase operating efficiencies and
enhance shareholder value. By offering our new customers the relationship
experience they have been accustomed to, with the financial solutions they
need and through the delivery channels they have come to expect, we will
strive to become the community bank of choice in these new markets. Both banks
will work together to ensure a smooth transition for the customers and
employees of these communities."
After the purchase of the branches, the Bank's franchise will increase from 26
to 35 banking offices, further expanding its geographic footprint and becoming
a more prominently positioned community bank in eastern North Carolina. The
transaction is expected to increase assets from $711 million at June 30, 2014
to approximately $972 million and deposits from $593 million to approximately
$854 million at close.
First South Bank was advised in this transaction by Raymond James &
Associates, Inc. as financial advisor and Wyrick Robbins Yates & Ponton LLP as
About First South Bank
First South Bank has been serving the citizens of eastern and central North
Carolina since 1902. The Bank has a rich history of serving the communities in
which it operates by offering a wide array of financial products and services
through both high tech and high touch channels. These include equipment
leasing through First South Leasing, as well as securities brokerage services
offered by First South Wealth Management through an affiliation with an
independent broker/dealer. The Bank currently operates through its main office
headquartered in Washington, North Carolina, and has 26 full service branch
offices located throughout eastern and central North Carolina.
For more information on First South Bank products and services call
1-800-946-4178 or visit our website at www.firstsouthnc.com.
First South Bancorp, Inc. investor relations and financial information may be
accessed on its website at www.firstsouthnc.com. The Company's common stock
symbol as traded on the NASDAQ Global Select Market is "FSBK".
Statements contained in this release, which are not historical facts, are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ materially from those
currently anticipated due to a number of factors which include the effects of
future economic conditions, governmental fiscal and monetary policies,
legislative and regulatory changes, the risks of changes in interest rates,
the effects of competition, and other factors that could cause actual results
to differ materially as discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time.
For more information contact:
First South Bancorp, Inc.
Bruce Elder (CEO) (252) 940-4936
Scott McLean (CFO) (252) 940-5016
SOURCE First South Bancorp, Inc.
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