An $80.1 million increase in loans held for investment helped First South Bancorp increase net income 52.6 percent in the third quarter, according to a filing made with the Securities and Exchange Commission.

The bank headquartered in Washington, North Carolina, reported a net income of $2.9 million compared with $1.9 million reported the same time last year with a strong contributor being an increase in net interest income.

Net interest income grew to $9.6 million from $8.3 million in the third quarter of 2016.

“The third quarter financial performance of the company is a reflection of the strong loan growth experienced over the past year,” said Chief Executive Officer Bruce Elder in a statement. “Pre-tax income of $4.3 million was almost $1.4 million higher than the $2.9 million reported for the second quarter of 2017.”

Earnings per diluted share were 31 cents, up from 20 cents in the third quarter last year. There were no analyst estimates to predict what earnings would be.

First South experienced growth of 9.9 percent in total deposits over the last year to bring the total deposits to $943.5 million.

The bank’s merger with Carolina Financial Corp. is expected to occur in the next quarter. A special meeting of shareholders will be held on Oct. 26 to formally vote on it.

Shares of First South Bancorp are trading at $18.52, down 4 cents, in midday Friday trading.