First South Bancorp Inc., the parent of First South Bank, which has one branch in Wilmington, recently announced that it has signed an agreement to purchase the branch banking operations of nine Bank of America locations in the coastal area.

Headquartered in Washington, North Carolina, First South Bank’s 26 existing branches are located
primarily in the eastern part of the state, and it will improve its coverage within that footprint with the Bank of America acquisitions, according to a news release from the company. The new branch offices are in Elizabethtown, Goldsboro, Kenansville, Kinston, Kitty Hawk, Morehead City, Mount Olive, Wallace and Wilson, the release stated.

“First South has a long history of serving eastern and central North Carolina, and these new markets
are located right in the heart of our franchise,” Bruce Elder, First South president and CEO, said in the release. 

The purchase is expected to add about $261.4 million of deposits, increasing deposit totals from $593 million as of June 30 to about $854 million at close. Assets are expected to increase from $711 million to about $972 million over the same period, according to the release.

The bank has also agreed to purchase the fixed assets and a small amount of loans related to the purchased branches, the release stated, adding that First South Bancorp expects the transaction to close in the fourth quarter of this year, subject to approval by regulators and “satisfaction of customary closing conditions.”

“Expansion into these new markets supports our strategy to capitalize on opportunities that leverage our capital, create scale, increase operating efficiencies and enhance shareholder value,” Elder said.