First South declares increase in cash dividend rate

Published 12:19 am Monday, February 6, 2017

First South Bancorp Inc., the parent holding company of First South Bank, reports that on Jan. 26, the company’s Board of Directors declared a quarterly cash dividend of $0.035 per share, payable Feb. 17, to shareholders of record as of the close of business on Feb. 7.

This quarterly cash dividend payment represents a 16.7-percent payment rate increase over the previous quarterly dividend payment.

This dividend payment represents the company’s 12th-consecutive quarterly cash dividend. Inclusive of this quarterly cash-dividend payment, total dividends declared for the year ended Dec. 31, 2016, are $0.125 per share and represents a payout ratio of 17.1 percent of year-to-date diluted earnings per share.

Bruce Elder, president and chief executive officer of the company, stated, “The Board of Directors determined that the increase in the cash-dividend payment rate was appropriate in consideration of the company’s capital position and recent operating results.”

He noted, “any further dividends will depend upon the company’s financial condition, earnings, equity structure, capital needs, regulatory requirements and economic conditions.”