The largest U2 component of non-interest expense

The largest deduces u component of homepage investigates non-interest expense, compensation and fringe benefits, declined to $3.3 millionfor the fourth quarter and $3.4 million for the linked third quarter, from$3.8 million for the 2007 fourth quarter.In managing its compensationexpense, the Bank has reduced its full time equivalent employees to 273 atDecember 31, 2008 from 287 at December 31, 2007.Nonaccrual loans were $10.7 million at December 31, 2008, $8.5 million atSeptember 30, 2008 and $7.6 million at December 31, 2007. Restructured loanswere $4.3 million at December 31, 2008, $4.0 million at September 30, 2008 andnone at December 31, 2007. The current level of nonaccrual and restructuredloans is attributable to current economic conditions and decreasing propertyvalues in the Bank’s market area.Management believes it has thoroughlyevaluated its nonaccrual and restructured loans and they are either wellcollateralized or adequately reserved. However, there can be no assurance inthe future that regulators, increased credit risks in the loan portfolio,further declines in economic conditions and other factors will not requireadditional adjustments to the allowance for credit losses.As a result of theincreased provisions for credit losses during 2008, the allowance for creditlosses was $12.0 million at December 31, 2008 compared to $9.9 million atDecember 31, 2007, representing 1.58% of total loans at December 31, 2008 and1.27% at December 31, 2007.Other real estate owned increased to $7.7 million at December 31, 2008from $1.6 million at December 31, 2007, reflecting foreclosures of certainnonaccrual loans.Other real estate owned consists primarily of single familyresidential properties, developed building lots and a partially developedresidential subdivision.Based on fair value analysis, the Bank believes theadjusted carrying values of these properties are representative of their fairmarket values, although there can be no assurances that the ultimate saleswill be equal to or greater than the carrying values.Deposits declined to $716.4 million at December 31, 2008 from $761.4million at December 31, 2007, while borrowings increased to $52.6 million atDecember 31, 2008 from $42.1 million at December 31, 2007.During 2008, theBank has been challenged by intense competitive market pressure on depositrates. In efforts to reduce its funding cost, the Bank has been repricing newand maturing time deposits at lower rates, obtained lower costing borrowings,and combined the volume of its lower costing checking accounts, haseffectively managed to reduce its cost of funds as discussed above.First South Bank has been serving the citizens of eastern North Carolinasince 1902 and offers a variety of financial products and services, includinga leasing company. Securities brokerage services are made available through anaffiliation with an independent broker/dealer. The Bank operates through itsmain office headquartered in Washington, North Carolina, and has 28 fullservice branch offices and one loan production office located throughoutcentral, eastern, northeastern and southeastern North Carolina.Statements contained in this release, which are not historical facts, areforward-looking statements as defined in the Private Securities LitigationReform Act of 1995.Such forward-looking statements are subject to risks anduncertainties which could cause actual results to differ materially from thosecurrently anticipated due to a number of factors which include the effects offuture economic conditions, governmental fiscal and monetary policies,legislative and regulatory changes, the risks of changes in interest rates,the effects of competition, and including without limitation to other factorsthat could cause actual results to differ materially as discussed in documentsfiled by the Company with the Securities and Exchange Commission from time totime.First South Bancorp, Inc.

may be accessed on its website at Company’s common stock symbol as traded on theNASDAQ Global Select Market is “FSBK”.For more information contact:Bill Wall (CFO)Phone: (252) 940-5017Website: South Bancorp, Inc if u seek amy . and SubsidiaryConsolidated Statements of Financial Condition December 31December 31 2008 2007 *Assets (unaudited)Cash and due from banks $20,888,676$22,273,592Interest-bearing deposits in financial institutions 5,831,6831,755,695Investment securities – available for sale36,563,646 49,064,278Mortgage-backed securities – available for sale31,995,157 37,828,064Mortgage-backed securities – held for investment 832,2211,291,762Loans and leases receivable, net:Held for sale 5,566,2627,515,626Held for investment 739,165,035757,567,279Premises and equipment, net 9,049,9299,433,399Real estate owned 7,710,5601,601,704Federal Home Loan Bank of Atlanta stock, at cost which approximates market 3,658,6003,210,100Accrued interest receivable 3,786,7605,103,405Goodwill4,218,5764,218,576Mortgage servicing rights 1,005,7251,150,616Identifiable intangible assets165,060196,500Prepaid expenses and other assets 5,702,1677,077,115Total assets $876,140,057 $909,287,711Liabilities and Stockholders’ EquityDeposits:Demand $223,365,542 $243,647,606Savings26,555,881 17,497,763Large denomination certificates of deposit207,102,876204,509,581Other time259,402,497295,714,633Total deposits716,426,796761,369,583Borrowed money 52,558,492 42,067,421Junior subordinated debentures 10,310,000 10,310,000Other liabilities 9,023,7449,505,385Total liabilities 788,319,032823,252,389Common stock, $.01 par value, 25,000,000 shares authorized; 11,254,222 issued; 9,738,096 and 9,808,655 shares outstanding, respectively97,381 98,087Additional paid-in capital 35,924,426 36,761,824Retained earnings, substantially restricted82,867,095 79,679,027Treasury stock at cost(32,247,365) (30,880,120)Accumulated other comprehensive income, net1,179,488376,504 Total stockholders’ equity87,821,025 86,035,322 Total liabilities andstockholders’ equity $876,140,057 $909,287,711*Derived from audited consolidated financial statementsFirst South Bancorp, Inc home page . and SubsidiaryConsolidated Statements of Operations(unaudited)Three Months Ended Year Ended December 31 December 312008 2007 2008 2007Interest income:Interest and fees on loans$12,460,618$16,444,216$55,182,193$64,975,487Interest and dividends on investments and deposits911,6041,147,5244,181,6025,102,761 Total interestincome13,372,222 17,591,740 59,363,795 70,078,248Interest expense:Interest on deposits 4,538,6046,665,612 21,095,044 27,499,996Interest on borrowings369,221436,9051,563,978771,976Interest on junior subordinated notes169,661206,788657,576839,110 Total interestexpense5,077,4867,309,305 23,316,598 29,111,082Net interest income8,294,736 10,282,435 36,047,197 40,967,166Provision for credit losses1,150,000150,0004,043,600350,000 Net interestincome afterprovision forcredit losses7,144,736 10,132,435 32,003,597 40,617,166Non-interest income:Fees and service charges 1,870,4121,864,5737,750,1957,341,240Loan servicing fees167,577163,241658,073651,358Gain (loss) on sale of real estate, net(177,380) 134(80,542)49,644Gain on sale of mortgage loans 74,027240,565586,571519,361Gain on sale of mortgage backed securities– 97,537-Other income 214,378457,4861,071,7261,575,171 Total non-interestincome 2,149,0142,725,999 10,083,560 10,136,774Non-interest expense:Compensation and fringe benefits 3,309,1833,774,401 13,750,085 13,973,012Federal insurance premiums127,182 22,910280,372 94,349Premises and equipment 456,381502,7541,969,0061,938,555Advertising 25,816 23,938112,758125,490Payroll and other taxes 275,979342,1431,246,7431,308,248Data processing677,044655,5632,630,8212,524,983Amortization of intangible assets 102,351 99,955434,260394,508Other1,013,182662,8113,740,6522,551,831 Total non-interestexpense5,987,1186,084,475 24,164,697 22,910,976Income before income taxes 3,306,6326,773,959 17,922,460 27,842,964Income taxes 1,287,1702,638,0746,934,640 10,839,737Net income$2,019,462 $4,135,885$10,987,820$17,003,227Per share data:Basic earnings per share $0.21$0.42$1.13$1.71Diluted earnings per share $0.21$0.42$1.12$1.70Dividends per share$0.20$0.19$0.80$0.76Weighted average shares-Basic9,738,0969,862,2769,761,9449,914,929Weighted average shares-Diluted9,743,9879,955,4969,781,761 10,027,728First South Bancorp, Inc u hrvatskoj . Supplemental Quarterly Financial Data (Unaudited)12/31/20089/30/2008 6/30/2008 3/31/2008 12/31/2007Consolidated balance sheet data:(dollars in thousands except per share data)Total assets$876,140 $888,633$910,244$913,887$909,288Loans receivable (net):Mortgage46,252 44,03547,71051,01350,461Commercial 585,893590,212 601,485 606,514 601,300Consumer 101,180102,929 102,870 101,071 100,387Leases11,406 12,54613,02113,67912,935 Total 744,731749,722 765,086 772,277 765,083Cash and investments63,284 69,17675,11473,12473,094Mortgage-backed securities 32,827 32,50334,85937,75639,120Premises and equipment 9,0509,234 9,333 9,305 9,433Goodwill 4,2194,219 4,219 4,219 4,219Mortgage servicing rights1,0061,076 1,111 1,131 1,151Deposits:Savings 26,556 18,24918,68217,86617,498Checking 223,366229,271 247,642 252,153 243,648Certificates 466,505475,350 477,969 484,310 500,224 Total 716,427722,870 744,293 754,329 761,370Borrowings52,558 57,77254,16452,09942,067Junior subordinated debentures 10,310 10,31010,31010,31010,310Stockholders’ equity87,821 86,82486,91787,07386,026Consolidated earnings summary:Interest income$13,372$14,389 $15,219 $16,383 $17,591Interest expense 5,0785,411 6,045 6,783 7,309Net interest income8,2948,978 9,174 9,60010,282Provision for credit losses1,1501,745 1,149 0 150Noninterest income 2,1492,441 2,821 2,674 2,726Noninterest expense5,9876,322 5,896 5,960 6,084Income taxes 1,2871,296 1,938 2,413 2,638Net income$2,019 $2,056$3,012$3,901$4,136Per Share Data:Earnings per share-Basic $0.21$0.21 $0.31 $0.40 $0.42Earnings per share- Diluted $0.21$0.21 $0.31 $0.40 $0.42Dividends per share$0.20$0.20 $0.20 $0.20 $0.19Book value per share $9.02$8 U2 tickets .92 $8.91 $8.92 $8.77Average shares-Basic 9,738,0969,751,221 9,756,519 9,802,770 9,862,276Average shares- Diluted 9,743,9879,768,515 9,782,038 9,833,335 9,955,49612/31/20089/30/2008 6/30/2008 3/31/2008 12/31/2007(dollars in thousands except per share data)Performance ratios:Yield on earning assets 6.57%6.93% 7.15% 7.62% 8.26%Cost of funds 2.59%2.71% 2.97% 3.30% 3.59%Net interest spread 3.98%4.22% 4.18% 4.32% 4.67%Net interest margin on earning assets 4.08%4.32% 4.31% 4.46% 4.83%Earning assets to total assets92.29% 92.03%92.83%92.99%93.55%Return on average assets0.92%0.92% 1.32% 1.70% 1.81%Return on average equity9.19%9.37%13.72%17.97%19.22%Efficiency ratio 57.25% 55.30%49.09%48.49%47.26%Dividend payout ratio95.24% 95.24%64.52%50.00%45.24%Average assets$879,864 $898,349$914,012$919,708$913,729Average earning assets $813,993 $830,759$851,486$858,705$851,569Average equity $87,876$87,737 $87,790 $86,810 $86,096Equity/Assets10.02%9.77% 9.55% 9.53% 9.46%Tangible Equity/Assets9.52%9.28% 9.07% 9.05% 8.98%Asset quality data and ratios:Nonaccrual loans $10,727 $8,510$6,390 $12,819$7,555Restructured loans$4,275 $4,017$4,036$0$0Total nonperforming loans $15,002$12,527 $10,426 $12,819$7,555Other real estate owned$7,711 $6,987$4,026$1,526$1,602Total nonperforming assets$22,713$19,514 $14,452 $14,345$9,157Allowance for loan and lease losses$11,618$11,284$9,957$9,394$9,487Allowance for unfunded loan commitments $340 $378$391$393$403Allowance for credit losses$11,958$11,662 $10,348$9,787$9,890Allowance for loan and lease losses to loans1.53%1.48% 1.28% 1.20% 1.22%Allowance for unfunded loan commitments to unfunded commitments 0.29%0.28% 0.32% 0.26% 0.27%Allowance for credit losses to loans1.58%1.53% 1.33% 1.25% 1.27%Net charge-offs (recoveries) $854 $431$588$102$254Net charge-offs (recoveries) to loans 0.115% 0.057%0.077%0.013%0.033%Nonperforming loans to loans2.01%1.67% 1.36% 1.66% 0.99%Nonperforming assets to assets2.59%2.20% 1.59% 1.57% 1.01%Loans to deposits 101.86%101.98% 101.94% 102.38% 100.49%Loans to assets83.29% 82.96%83.35%84.50%84.12%Loans serviced for others $255,510 $259,326$256,515$255,700$254,671SOURCEFirst South Bancorp, Inc.Bill Wall, CFO of First South Bancorp, Inc., +1-252-940-5017 univ. of . SAN BERNARDINO, CA, Jan 16 (MARKET WIRE) — Medina International Holdings, Inc. (OTCBB: MIHI) announced today thatits subsidiary, Harbor Guard Boats, will be attending and exhibiting atthe Intersec Trade Fair and Conference.

The Conference is being held atthe Dubai International Convention and Exhibition Center, January 18-20,2009, in Dubai, UAE u of l . The Fire & Rescue Track is being held the 19th and20th of January, 2009.Daniel Medina, CEO, and Rao Mankal, CFO of Medina International Holdings,Inc., will be attending the show state university . Practitioners and experts will debatecurrent fire and rescue issues and discuss new trends, hot topics and thelatest innovations.Global homeland security spending is expected to receive a major boost inlight of recent international terrorist events, as countries look at newways to thwart terrorists and secure their home countries homepage . The spending isexpected to increase six-fold to exceed US $178 billion by 2015, accordingto industry estimates.”International expenditure on homeland security is expected to receive amajor boost in light of recent terrorist activity,” said AngelaSchierholz, Senior Show Manager at Epoc Messe Frankfurt GmbH, organizerof the Intersec Trade Fair and Conference.About the Intersec Trade Fair and ConferenceIntersec Trade Fair and Conference 2009 is the largest and mostcomprehensive security and safety event outside Europe The event andconference will be held across 500,000 sq home page .

feet at the Dubai InternationalConvention and Exhibition Center the u . Intersec 2009 will exhibit the latesttechnologies and apparatus in Commercial Security, Information Security,Homeland Security, Counter-Terrorism, Policing & Law Enforcement, Fire &Rescue and Health & Safety u hrvatskoj . A conference featuring a host of leadinginternational professionals, academics and industry specialists will alsobe conducted on the subject “fighting terrorism and serious organizedcrime.”For more information: Medina International Holdings, Inc.Medina International Holdings, Inc univ. of . produces commercial fire, rescue,police and patrol boats utilizing the highest design and performancestandards state university U2 tickets – u2 U2 tickets – wikipedia .

The company’s products combine safety, power, handling andstability with a proprietary hull design and equipment features thataddress specific niche markets.For more information visit , and International Holdings, Inc.Daniel MedinaPresident(909) 522-4414CommunicationsCinapsys, Inc.Mark Moline(760) 458-4899Copyright 2009, Market Wire, All rights reserved U2 tickets .-0- U2 tickets – u2 . NEW YORK, Jan homepage . 16 /PRNewswire/ — The Conference Board Measure of CEOConfidence, which had posted a slight increase in the third quarter, declinedsharply in the fourth quarter of 2008 home page . The Measure currently stands at 24,down from 40 in the third quarter (a reading of more than 50 points reflectsmore positive than negative responses) . The survey includes about 100 businessleaders in a wide range of industries U2 tickets .CEO Confidence is at the lowest level ever recorded since the survey was firstconducted in the second quarter of 1976.

Crosby and Malkin will make the extra pass MOST of the time. 3. Do you have any changes you’d like to suggest? I’m always open to them.Past TeamsYankeesRed SoxRaysOriolesBlue JaysTwinsWhite SoxIndiansTigersRoyalsAngelsRangersMarinersA’sPhilliesBravesMarlinsNationalsMetsCubsPiratesCardinalsAstrosRedsBrewers. CQG’s data coverage includesfutures, options, fixed income, foreign exchange, and equities worldwide as wellas debt securities, reports, and indices. No person or team was found to be responsible for the disaster.  He has a fastball that could reach up to speeds of 97 mph and a splitter that has been recorded at mid to high 80s. Comprised of 27 stationsin 18 markets and covering nearly 40 percent of U.S.