First South reports second quarter operations

Published 11:51 pm Sunday, July 23, 2017

First South Bancorp Inc., the parent holding company of First South Bank, reports its unaudited operating results for the quarter and six months ended June 30.

The company generated net income of $2.1 million for the second quarter, a 27.5-percent increase from the $1.6 million of earnings for last year’s second quarter. Net income for the first six months of 2017 was $3.9 million, a 27.8-percent increase from the $3.1 million earned for the first six months of 2016.

The company’s diluted earnings per share for the second quarter increased 29.4 percent to $0.22 per share, from $0.17 per share for 2016’s second quarter. Diluted EPS for the first six months of 2017 increased 28.1 percent to $0.41 per share, from $0.32 per share for the first six months of 2016. The company’s strong loan growth continues to drive solid core revenue, enhancing its capital position while maintaining excellent credit quality.

On Thursday, the company’s board of directors declared a quarterly cash dividend of $0.035 per share, payable Aug. 18, to shareholders of record as of the close of business on Aug. 8. This dividend payment is the company’s 14th-consecutive quarterly cash dividend and represents a payout ratio of 15.9 percent of second quarter 2017 diluted earnings per share.


  • Strong quarterly earnings performance with net income of $2.1 million; diluted EPS of $0.22 per share; return on average assets of 0.79 percent, return on average equity of 9.01 percent and return on average tangible common equity of 9.82 percent.
  • Pre-tax, pre-provision operating earnings for the current quarter of $3.5 million are 38.2 percent higher than the $2.5 million reported for the 2016 second quarter.
  • Strong loan growth as loans held for investment increased by $49.5 million and $76 million for the 2017 second quarter and six month periods, respectively.
  • Total deposits have grown $106.1 million or 12.9 percent over the last 12 months to $931.5 million.
  • Strong core-deposit growth as demonstrated by an increase in total non-interest bearing deposits of 17.7 percent to $208.7 million on a year-over-year basis.
  • Expanded the net interest margin to 3.78 percent versus 3.76 percent and 3.74 percent for the second quarter of 2016 and the first quarter of 2017, respectively.
  • Increased non-interest income through enhanced fees from a growing core-deposit base and robust mortgage banking activity.
  • Asset quality metrics continue to improve with lower levels of past due and non-performing loans.
  • Continue to maintain a solid capital position.

First South Bank has been serving the citizens of eastern and central North Carolina since 1902 and offers a variety of financial products and services to business and individual customers. The bank operates through its main office headquartered in Washington, North Carolina, and has 28 full-service branch offices located throughout eastern and central North Carolina.