Item 8.01. Other Events

On January 26, 2009, First South Bancorp, Inc. (the "Company") reported that it's previously announced stock repurchase program expired on January 14, 2009, and it has adopted a new program providing that it may repurchase up to 5% shares of its current outstanding shares, totaling 486,905 shares. The stock repurchase program will be dependent upon the Company's financial condition, liquidity position, equity structure, capital needs, regulatory requirements, and economic and market conditions.

Any share purchases made under this repurchase program will be over a period of not greater than twelve months. During this twelve-month period, the Company may purchase shares of its common stock at certain times and price levels that are satisfactory to the Company, although there is no guarantee or assurance as to the exact number of shares, if any, that may be repurchased by the Company. The repurchase program will be affected through open market purchases, private unsolicited negotiated transactions, or in such other manner that will comply with applicable law. Repurchased shares are held as treasury stock and used for general corporate purposes, including any future stock splits or stock option exercises

Incorporated herein by reference as Exhibit 99.1 is the press release issued by the Company on January 26, 2009 announcing the above stock repurchase program.

Item 9.01. Financial Statements and Exhibits.

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) The following exhibit is filed herewith:

Exhibit 99.1 - Press release dated January 26, 2009