Under pressure.

• Position: NC TREND: Eastern Region - First South Bank N.A. Financial report - Financial report

Serving on the board of directors has proven a lucrative business at First South Bank, a Washington, N.C.-based community bank with $885 million in assets. Too lucrative, says Greenville insurance-company owner Phil Lewis, whose recent shareholder resolution presses the bank's board to "achieve a sale, merger or other disposition of the company," according to a filing with the Securities and Exchange Commission. After the bank protested, the SEC ruled the resolution must be considered at First South's annual meeting on May 26.

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Lewis' SEC filing contends that First South has modest profits, high expenses and an ineffectual board. First South's arc mirrors many North Carolina community banks, except it has remained independent while several others with assets of less than $1 billion have sold out to larger rivals. The bank's share price increased about sixfold between 2000 and mid-2006. Profit peaked at $17 million in 2007.

But the ensuing recession hammered eastern North Carolina and First South's loan portfolio. Thomas Vann, who had led the bank since 1975, retired in 2012. First South reported a $10 million loss that year. While the bank has recovered along with the economy, earning $4.7 million last year, its stock trades at about the same level as 2001.

Over the years, First South increased the maximum age of a director...