The listing, which appears in the June 2008 edition of the ABA Banking Journal, published by the American Bankers Association, presented their annual performance rankings, in which they evaluated the overall operating results and performance of the best-performing community banks and thrifts in America. In the current ranking, First South Bancorp, Inc. is ranked 23rd among the 100 best-performing community banks in America for non-subchapter S community banks and thrifts with total assets between $100 million and $3 billion, ranked by return on average equity for the year ended December 31, 2007. First South Bancorp was the only community bank or thrift headquartered in the state of North Carolina ranked by the ABA Banking Journal for non- subchapter S category for banks and thrifts under $100 million in assets or between $100 million and $3 billion in assets.

Bill Wall, Executive Vice President and Chief Financial Officer of the Company, stated, "We are pleased to be recognized by the ABA Banking Journal. Their ranking highlights the success of community banks that exhibited outstanding performance in 2007, and reflects First South Bancorp's performance among the top performing community banks and thrifts in America. The community banks and thrifts with the highest ROAE were selected as the top performers in their respective asset size categories. We are very proud to be the only non-subchapter S community bank or thrift selected by the ABA Banking Journal from the state of North Carolina."

First South Bank has been serving the citizens of eastern North Carolina since 1902 and offers a variety of financial products and services, including a leasing company and securities brokerage services through an affiliation with a broker/dealer. The Bank operates through its main office headquartered in Washington, North Carolina, and has twenty-nine full service branch offices and two loan production offices located throughout central, eastern, northeastern and southeastern North Carolina. -- First South Bancorp, Inc.