EXHIBIT 99.1

PRESS RELEASE                                   FOR IMMEDIATE RELEASE

February 24, 2004                               For More Information Contact:
First South Bancorp, Inc.                       Bill Wall or Tom Vann
Website: www.firstsouthnc.com                   (252) 946-4178

FIRST SOUTH BANK COMPLETES ACQUISITION OF TWO BRANCH OFFICES

Washington,  North Carolina - First South Bank, wholly owned subsidiary of First
South  Bancorp,  Inc.  (Nasdaq:  FSBK)  announces  that on February  20, 2004 it
completed the  acquisition  of two branch  offices of Central  Carolina  Bank, a
Division of National Bank of Commerce ("CCB").

One of the branch  offices is located at 2019 South  Glenburnie  Road, New Bern,
North  Carolina.  The branch,  which is located  inside a Harris Teeter  grocery
store was formally operated by CCB,  re-opened for business on Monday,  February
23rd as First South Bank's third branch located in the New Bern market area.

The other branch office is located at 3040 South Evans Street, Greenville, North
Carolina.  The  branch,  which is  located  inside a Kroger  grocery  store  was
formally  operated by CCB, also re-opened for business on Monday,  February 23rd
as the First South Bank's second branch located in the Greenville market area.

These branch  offices will offer a full range of consumer  banking  products and
financial  services  including deposit and saving products,  loans, and business
accounts, including Business Free Checking.

"We are excited with the opening of these two new branch  offices,"  First South
Bank  President Tom Vann said, "We look forward to getting to know the customers
and serving  their  banking  needs for years to come. We are also pleased to say
the same  representatives  that have been handling their  business  transactions
with CCB have  agreed  to stay on with  First  South  Bank,  and they  have been
trained to help make this transition a smooth and simple one for the customers."

In the  acquisition,  First South Bank  assumed the deposits of these two branch
offices,  totaling  approximately $18.4 million. At December 31, 2003, the First
South  Bancorp,  Inc. had  consolidated  assets of $676.7  million,  deposits of
$583.2 million and stockholders' equity of $54.3 million (unaudited).

First South Bank has been serving the citizens of 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-four  full service branch offices  located  throughout
eastern and southeastern North Carolina.

Statements  contained  in this  release,  which are not  historical  facts,  are
forward-looking  statements as defined in the Private  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,  but are not limited to,
factors  discussed in documents  filed by the Company  with the  Securities  and
Exchange Commission from time to time.

(Nasdaq: FSBK)