Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(b) Effective as of October 15, 2012, William L. Wall was succeeded in his position as Executive Vice President and Chief Financial Officer of First South Bancorp, Inc. (the "Registrant") and First South Bank (the "Bank"), a wholly owned subsidiary of the Registrant. Mr. Wall will continue to serve as Secretary of the Registrant and the Bank, and will remain with the Bank in a financial reporting position.

(c) Effective as of October 15, 2012, Scott C. McLean was appointed as Executive Vice President and Chief Financial Officer of the Registrant and the Bank.

Prior to joining the Bank, Mr. McLean was employed with KeySource Commercial Bank of Durham, North Carolina from 2007 to present, where he served as Executive Vice President, Chief Financial Officer and Chief Risk Officer.

Prior to that, Mr. McLean had fourteen years of banking experience in various financial accounting and auditing capacities with Southern Community Bank and Trust, Bank of America Corporation, the Federal Reserve Bank of Richmond and Signet Bank.

Mr. McLean received his BA degree from The College of Saint Rose in Albany, New York and a post baccalaureate certificate in accounting from Virginia Commonwealth University in Richmond, Virginia. He is a Certified Public Accountant and has a certification as a Commissioned Bank Examiner of the Federal Reserve System.

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 October 16, 2012