<PAGE>
<PAGE>
           As filed with the Securities and Exchange Commission 
                        on February 19, 1997
                                   Registration No. 333-_____
_________________________________________________________________
               SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549
          _____________________________________________
                            FORM S-8
                  REGISTRATION STATEMENT UNDER
                    THE SECURITIES ACT OF 1933
          _____________________________________________

                      NEWSOUTH BANCORP, INC.
---------------------------------------------------------------
    (Exact name of Registrant as Specified in Its Charter)

            Delaware                            56-1999749
---------------------------------------------------------------
(State or other jurisdiction of             (I.R.S. Employer
incorporation or organization)             Identification No.)

                 1311 Carolina Avenue, P.O. Box 2047
                    Washington, North Carolina  27889
                        (919) 946-4178
-----------------------------------------------------------------
              (Address of Principal Executive Offices)

                        Home Savings Bank, SSB
        Employee's Savings and Profit Sharing Plan and Trust
-----------------------------------------------------------------
                    (Full Title of the Plan)

                      J. Mark Poerio, Esquire
                     Joel E. Rappoport, Esquire
                Housley Kantarian & Bronstein, P.C.
                  1220 19th Street N.W., Suite 700
                     Washington, D.C.  20036
-----------------------------------------------------------------
               (Name and Address of Agent For Service)

                        (202) 822-9611
-----------------------------------------------------------------
 (Telephone number, including area code, of agent for service)
<TABLE>
<CAPTION>
                    CALCULATION OF REGISTRATION FEE
====================================================================================
<S>                   <C>           <C>               <C>                 <C>
Title of                            Proposed Maximum  Proposed Maximum    Amount of
Securities to         Amount to be   Offering Price   Aggregate Offering Registration
be registered(1)      registered(2)    Per Share(3)       Price(4)            Fee
------------------------------------------------------------------------------------
Common Stock, $.01
par value per share     30,493          $15.00           $457,400           $138.61
=====================================================================================
<FN>
(1)     In addition, pursuant to Rule 416(c) under the Securities
Act of 1933, this registration statement also covers an
indeterminate amount of interests available pursuant to Financial
Institutions Thrift Plan as adopted by Home Savings Bank, SSB (to
be renamed as the Home Savings Bank, SSB Employees' Savings and
Profit Sharing Plan and Trust, effective March 1, 1997) (the
"Plan") as described herein.
(2)     Estimates the maximum number of shares expected to be
issued under the Plan assuming that all employer and employee
contributions to the Plan are used to purchase shares of Common
Stock of NewSouth Bancorp, Inc. in the conversion of Home Savings
Bank, SSB from mutual to stock form ("Conversion"), together with
an indeterminate number of shares which may be necessary to
adjust the number of additional shares of Common Stock reserved
for issuance pursuant to the Plan and being registered herein, as
the result of a stock split, stock dividend, reclassification,
recapitalization or similar adjustment(s) of the Common Stock of
NewSouth Bancorp, Inc.
(3)     Estimated solely for the purpose of calculating the
registration fee and calculated pursuant to Rule 457(c) based on
maximum subscription price of $15.00 per share of the Common
Stock of NewSouth Bancorp, Inc., as currently offered in the
Conversion.
(4)      Estimated based on (2) and (3) above.
</FN>
</TABLE>
THIS REGISTRATION STATEMENT SHALL BECOME EFFECTIVE AUTOMATICALLY
UPON THE DATE OF FILING, IN ACCORDANCE WITH SECTION 8(A) OF THE
SECURITIES ACT OF 1933.<PAGE>
<PAGE>
                             PART I

       INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS

ITEM 1.  PLAN INFORMATION*
------

ITEM 2.  REGISTRANT INFORMATION AND EMPLOYEE PLAN ANNUAL
-------  INFORMATION*
     *This Registration Statement relates to the registration of
30,493 shares of Common Stock, $.01 par value per share, of
NewSouth Bancorp, Inc. (the "Company") reserved for issuance and
delivery under the Home Savings Bank, SSB Employees' Savings and
Profit Sharing Plan and Trust (the "Plan").  Documents containing
the information required by Part I of this Registration Statement
will be sent or given to participants in the Plan as specified by
Rule 428(b)(1).  Such documents are not filed with the Securities
and Exchange Commission (the "Commission") either as part of this
Registration Statement or as prospectuses or prospectus
supplements pursuant to Rule 424, in reliance on Rule 428.

                          PART II 

      INFORMATION REQUIRED IN THE REGISTRATION STATEMENT

ITEM 3.  INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
------
     The Company became subject to the informational requirements
of the Securities Exchange Act of 1934 (the "1934 Act") on
February 11, 1997 and, accordingly, will be filing periodic
reports and other information with the Commission.  Reports,
proxy statements and other information concerning the Company
filed with the Commission may be inspected and copies may be
obtained (at prescribed rates) at the Commission's Public
Reference Section, Room 1024, 450 Fifth Street, N.W., Washington,
D.C. 20549.

     The following document filed by the Company is incorporated
in this Registration Statement by reference: the Prospectus for
the Common Stock, included in the Company's Registration
Statement (Commission File No. 333-16335)

     ALL DOCUMENTS FILED BY THE COMPANY AND THE PLAN PURSUANT TO
SECTIONS 13(A), 13(C), 14, AND 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, AFTER THE DATE HEREOF AND PRIOR TO THE
FILING OF A POST-EFFECTIVE AMENDMENT WHICH INDICATES THAT ALL
SECURITIES OFFERED HAVE BEEN SOLD OR WHICH DEREGISTERS ALL
SECURITIES THEN REMAINING UNSOLD SHALL BE DEEMED TO BE
INCORPORATED BY REFERENCE IN THIS REGISTRATION STATEMENT AND TO
BE A PART HEREOF FROM THE DATE OF FILING OF SUCH DOCUMENTS.

ITEM 4.  DESCRIPTION OF SECURITIES
------
     The information required by Item 202 of Regulation S-K is
set forth in the description of the Common Stock included in the
Prospectus for the Common Stock (dated February 11, 1997), as
incorporated by reference under Item 3 hereof, such description
being incorporated by reference herein.

ITEM 5.  INTERESTS OF NAMED EXPERTS AND COUNSEL
------
     Not applicable.

ITEM 6.  INDEMNIFICATION OF DIRECTORS AND OFFICERS OF THE COMPANY
------
     Directors, officers and employees of the Company may be
entitled to benefit from the indemnification provisions contained
in the Delaware General Corporation Law (the "DGCL") and the
Company's Certificate of Incorporation.  The general effect of
these provisions is summarized below:
<PAGE>
<PAGE>
DELAWARE GENERAL CORPORATION LAW
--------------------------------

     Section 145 of the DGCL permits a Delaware corporation to
indemnify any person who was or is a party or is threatened to be
made a party to any proceeding of any type, (other than an action
by or in the right of the corporation) by reason of the fact that
he is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the
corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit
or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests
of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was
unlawful.  The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, may not, of itself, create a
presumption that these standards have not been met.

     A Delaware corporation may also indemnify any person who was
or is a party or is threatened to be made a party to any
proceeding by or in the right of the corporation by reason of the
fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the
corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other
enterprise against expenses (including attorneys' fees) actually
and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and
in a manner he reasonably believed to be in or not opposed to the
best interests of the corporation.  However, no indemnification
may be made in respect of any claim, issue or matter as to which
such person shall have been adjudged to be liable to the
corporation unless and only to the extent that the Court of
Chancery or the court in which such action or suit was brought
determines upon application that such person is fairly and
reasonably entitled to be indemnified.

     To the extent that a director, officer, employee or agent of
a corporation has been successful on the merits or otherwise in
defense of any proceeding described above indemnification against
expenses (including attorneys' fees) actually and reasonably
incurred by him is mandatory.

     Any determination that indemnification of the director,
officer, employee or agent is proper in the circumstances because
he has met the applicable standard of conduct set forth in
subsections (a) and (b) must be made by a majority of the board
of directors by a majority vote of a quorum consisting of
directors who were not parties to such action, suit or
proceeding, or if such a quorum is not obtainable, or, even if
obtainable a quorum of disinterested directors so directs, by
independent legal counsel in a written opinion, or by the
stockholders.

     Expenses (including attorneys' fees) incurred by an officer
or director in defending any civil, criminal, administrative or
investigative action, suit or proceeding may be paid by the
corporation in advance of the final disposition of or proceeding
upon receipt of an undertaking by or on behalf of such director
or officer to repay such amount if it shall ultimately be
determined that he is not entitled to be indemnified by the
corporation.

     The indemnification and advancement of expenses provided by,
or granted pursuant to, the other subsections of this section is
not exclusive.

     In addition, a corporation shall have power to purchase and
maintain insurance against any liability of individuals whom the
corporation is required to indemnify.

     Article XVII of the Company's Certificate of Incorporation
sets forth circumstances under which directors, officers,
employees and agents may be insured or indemnified against
liability which they may incur in their capacities as such.

                          ARTICLE XVII

                         INDEMNIFICATION

     A.     Persons.  The Corporation shall indemnify, to the
extent provided in paragraphs B, D or F:

          (1)   any person who is or was a director, officer,
employee, or agent of the Corporation; and
<PAGE>
<PAGE>
          (2)  any person who serves or served at the
Corporation's request as a director, officer, employee, agent,
partner or trustee of another corporation, partnership, joint
venture, trust or other enterprise.

     B.     Extent -- Derivative Suits.  In case of a threatened,
pending or completed action or suit by or in the right of the
Corporation against a person named in paragraph A by reason of
his holding a position named in paragraph A, the Corporation
shall indemnify him if he satisfies the standard in paragraph C,
for expenses (including attorneys' fees but excluding amounts
paid in settlement) actually and reasonably incurred by him in
connection with the defense or settlement of the action or suit.

     C.     Standard -- Derivative Suits.  In case of a
threatened, pending or completed action or suit by or in the
right of the Corporation, a person named in paragraph A shall be
indemnified only if:

          (1)   he is successful on the merits or otherwise; or

          (2)   he acted in good faith in the transaction which
     is the subject of the suit or action, and in a manner he
     reasonably believed to be in, or not opposed to, the best
     interests of the Corporation, including, but not limited to,
     the taking of any and all actions in connection with the
     Corporation's response to any tender offer or any offer or
     proposal of another party to engage in a Business
     Combination (as defined in Article XV) not approved by the
     board of directors.  However, he shall not be indemnified in
     respect of any claim, issue or matter as to which he has
     been adjudged liable to the Corporation unless and only to
     the extent that the court in which the suit was brought
     shall determine, upon application, that despite the
     adjudication but in view of all the circumstances, he is
     fairly and reasonably entitled to indemnity for such
     expenses as the court shall deem proper.

     D.     Extent -- Nonderivative Suits.  In case of a
threatened, pending or completed suit, action or proceeding
(whether civil, criminal, administrative or investigative), other
than a suit by or in the right of the Corporation, together
hereafter referred to as a nonderivative suit, against a person
named in paragraph A by reason of his holding a position named in
paragraph A, the Corporation shall indemnify him if he satisfies
the standard in paragraph E, for amounts actually and reasonably
incurred by him in connection with the defense or settlement of
the nonderivative suit, including, but not limited to (i)
expenses (including attorneys' fees), (ii) amounts paid in
settlement, (iii) judgments, and (iv) fines.

     E.     Standard -- Nonderivative Suits.  In case of a
nonderivative suit, a person named in paragraph A shall be
indemnified only if:

          (1)   he is successful on the merits or otherwise; or

          (2)   he acted in good faith in the transaction which
     is the subject of the nonderivative suit and in a manner he
     reasonably believed to be in, or not opposed to, the best
     interests of the Corporation, including, but not limited to,
     the taking of any and all actions in connection with the
     Corporation's response to any tender offer or any offer or
     proposal of another party to engage in a Business
     Combination (as defined in Article XV) not approved by the
     board of directors and, with respect to any criminal action
     or proceeding, he had no reasonable cause to believe his
     conduct was unlawful.  The termination of a nonderivative
     suit by judgment, order, settlement, conviction, or upon a
     plea of nolo contendere or its equivalent shall not, in 
     itself, create a presumption that the person failed to
     satisfy the standard of this subparagraph E(2).

     F.     Determination That Standard Has Been Met.  A
determination that the standard of paragraph C or E has been
satisfied may be made by a court, or, except as stated in
subparagraph C(2) (second sentence), the determination may be
made by:

          (1)  the board of directors by a majority vote of a
     quorum consisting of directors of the Corporation who were
     not parties to the action, suit or proceeding; or

          (2)   independent legal counsel (appointed by a
     majority of the disinterested directors of the Corporation,
     whether or not a quorum) in a written opinion; or

          (3)   the stockholders of the Corporation.

     G.     Proration.  Anyone making a determination under
paragraph F may determine that a person has met the standard as
to some matters but not as to others, and may reasonably prorate
amounts to be indemnified.<PAGE>
<PAGE>
     H.     Advance Payment.  The Corporation shall pay in
advance any expenses (including attorneys' fees) which may become
subject to indemnification under paragraphs A through G if:

          (1)  the board of directors authorizes the specific
     payment; and
          (2)   the person receiving the payment undertakes in
     writing to repay the same if it is ultimately determined
     that he is not entitled to indemnification by the
     Corporation under paragraphs A through G.

     I.     Nonexclusive.  The indemnification and advance
payment of expenses provided by paragraphs A through H shall not
be exclusive of any other rights to which a person may be
entitled by law, bylaw, agreement, vote of stockholders or
disinterested directors, or otherwise.

     J.     Continuation.  The indemnification provided by this
Article XVII shall be deemed to be a contract between the
Corporation and the persons entitled to indemnification
thereunder, and any repeal or modification of this Article XVII
shall not affect any rights or obligations then existing with
respect to any state of facts then or theretofore existing or any
action, suit or proceeding theretofore or thereafter brought
based in whole or in part upon any such state of facts.  The
indemnification and advance payment provided by paragraphs A
through H shall continue as to a person who has ceased to hold a
position named in paragraph A and shall inure to his heirs,
executors and administrators.

     K.     Insurance.  The Corporation may purchase and maintain
insurance on behalf of any person who holds or who has held any
position named in paragraph A, against any liability incurred by
him in any such position, or arising out of his status as such,
whether or not the Corporation would have power to indemnify him
against such liability under paragraphs A through H.

     L.     Intention and Savings Clause.  It is the intention of
this Article XVII to provide for indemnification to the fullest
extent permitted by the General Corporation Law of the State of
Delaware, and this Article XVII shall be interpreted accordingly. 
If this Article XVII or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify each director, officer,
employee, and agent of the Corporation as to costs, charges, and
expenses (including attorneys' fees), judgments, fines, and
amounts paid in settlement with respect to any action, suit, or
proceeding, whether civil, criminal, administrative, or
investigative, including an action by or in the right of the
Corporation to the full extent permitted by any applicable
portion of this Article XVII that shall not have been invalidated
and to the full extent permitted by applicable law.  If the
General Corporation Law of the State of Delaware is amended, or
other Delaware law is enacted, to permit further or additional
indemnification of the persons defined in this Article XVII A,
then the indemnification of such persons shall be to the fullest
extent permitted by the General Corporation Law of the State of
Delaware, as so amended, or such other Delaware law.

INDEMNIFICATION OF DIRECTORS AND OFFICERS OF HOME SAVINGS BANK,
INC., SSB AND NEWSOUTH BANCORP, INC.

     The Amended and Restated Certificate of Incorporation of the
Bank provide that, to the fullest extent permitted by the North
Carolina Business Corporation Act (the "NCBCA"), no person who
serves as a director shall be personally liable to the Bank or
any of its stockholders or otherwise for monetary damages for
breach of any duty as director.  

     In addition, Article IX of the Amended and Restated Bylaws
of the Converted Bank state that any person who at any time
serves or has served as a director or officer of the Bank, or
who, while serving as a director or officer of the Bank, serves
or has served at the request of the Bank as a director, officer,
partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, or as a
trustee or administrator under an employee benefit plan, shall
have a right to be indemnified by the Bank to the fullest extent
permitted by law against (a) reasonable expenses, including
attorneys' fees, incurred by him in connection with any
threatened, pending or completed civil, criminal, administrative,
investigative, or arbitrative action, suit, or proceeding (and
any appeal therein), whether or not brought by or on behalf of
the Bank, seeking to hold him liable by reason of the fact that
he is or was acting in such capacity, and (b) reasonable payments
made by him in satisfaction of any judgment, money decree, fine
(including an excise tax assessed with respect to an employee
benefit plan) or penalty for which he may have become liable in
any such action, suit or proceeding, or in connection with a
settlement approved by the Board of Directors of any such action,
suit or proceeding. 
<PAGE>
<PAGE>

     Sections 55-8-50 through 55-8-58 of the NCBCA contain
provisions prescribing the extent to which directors and officers
shall or may be indemnified.  Section 55-8-51 of the NCBCA
permits a corporation, with certain exceptions, to indemnify a
present or former director against liability if (i) the director
conducted himself in good faith, (ii) the director reasonably
believed (x) that the director's conduct in the director's
official capacity with the corporation was in its best interests
and (y) in all other cases the director's conduct was at least
not opposed to the corporation's best interests, and (iii) in the
case of any criminal proceeding, the director had no reasonable
cause to believe the director's conduct was unlawful.  A
corporation may not indemnify a director in connection with a
proceeding by or in the right of the corporation in which the
director was adjudged liable to the corporation or in connection
with a proceeding charging improper personal benefit to the
director.  The above standard of conduct is determined by the
board of directors, or a committee or special legal counsel or
the shareholders as prescribed in Section 55-8-55.

     Sections 55-8-52 and 55-8-56 of the NCBCA require a
corporation to indemnify a director or officer in the defense of
any proceeding to which the director or officer was a party
against reasonable expenses when the director or officer is
wholly successful in the director's or officer's defense, unless
the articles of incorporation provide otherwise.  Upon
application, the court may order indemnification of the director
or officer if the director or officer is adjudged fairly and
reasonably so entitled under Section 55-8-54.

     In addition, Section 55-8-57 permits a corporation to
provide for indemnification of directors, officers, employees or
agents, in its articles of incorporation or bylaws or by contract
or resolution, against liability in various proceedings and to
purchase and maintain insurance policies on behalf of these
individuals.

     The foregoing is only a general summary of certain aspects
of North Carolina law dealing with indemnification of directors
and officers and does not purport to be complete.  It is
qualified in its entirety by reference to the relevant statutes,
which contain detailed specific provisions regarding the
circumstances under which and the person for whose benefit
indemnifications shall or may be made.

     The Bank has a directors and officers liability policy
providing for insurance against certain liabilities incurred by
directors and officers of the Bank while serving in their
capacities as such.

ITEM 7.  EXEMPTION FROM REGISTRATION CLAIMED
------

         Not applicable.

ITEM 8.  EXHIBITS
------

     The exhibits schedules filed as a part of this registration
statement are as follows:

     4.1   Financial Institutions Thrift Plan as adopted by Home
           Savings Bank, SSB (the "Plan")

     4.2   Summary Plan Description of the Plan
     
     4.3   Form of Investment Election to be made available to
           Plan Participants with respect to the investment of
           their accounts under the Plan

     5.1   Opinion of Housley Kantarian & Bronstein, P.C. as to
           the validity of the Common Stock being registered

     5.2   Favorable Determination Letter from the Internal
           Revenue Service Dated December 20, 1995, regarding the
           tax-qualification of the Plan documents

    23.1   Consent of Housley Kantarian & Bronstein, P.C.
           (appears in their opinion filed as Exhibit 5.1)

    23.2   Consent of Independent Certified Public Accountants

    24     Power of Attorney (contained in the signature page to
           this Registration Statement)

    99.1   Copy of the Plan's most recent Annual Report, as filed
           with the Internal Revenue Service on Form 5500

<PAGE>
<PAGE>

ITEM 9.  UNDERTAKINGS
------

     1.      The undersigned Registrant hereby undertakes:

             (a)  To file, during any period in which offers or
         sales are being made, a post-effective amendment to this
         registration statement to include any material
         information with respect to the plan of distribution not
         previously disclosed in the registration statement or
         any material change to such information in the
         registration statement.

             (b)  That, for the purpose of determining any
         liability under the Securities Act of 1933, to treat
         each such post-effective amendment as a new registration
         statement relating to the securities offered therein,
         and the offering of such securities at that time shall
         be deemed to be the initial bona fide offering thereof.

             (c)  To remove from registration by means of a post-
         effective amendment any of the securities being
         registered which remain unsold at the termination of the
         offering.

     2.     The undersigned Registrant hereby undertakes that,
for purposes of determining any liability under the Securities
Act of 1933, each filing of the Registrant's annual report
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934 (and, where applicable, each filing of an employee
benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by
reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.

     3.      The undersigned Registrant hereby undertakes to
deliver or cause to be delivered with the prospectus, to each
person to whom the prospectus is sent or given, the latest annual
report to security holders that is incorporated by reference in
the prospectus and furnished pursuant to and meeting the
requirements of Rule 14a-3 or Rule 14c-3 under the Securities
Exchange Act of 1934; and, where interim financial information
required to be presented by Article 3 of Regulation S-X are not
set forth in the prospectus, to deliver, or cause to be delivered
to each person to whom the prospectus is sent or given, the
latest quarterly report that is specifically incorporated by
reference in the prospectus to provide such interim financial
information.

     4.      Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to
the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable.  In the
event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or
paid by a director, officer or controlling person of the
Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.<PAGE>
<PAGE>
                          SIGNATURES

     Pursuant to the requirements of the Securities Act of 1933,
as amended, the Registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Washington, State of
North Carolina, on February 18, 1997.

                                NEWSOUTH BANCORP, INC.


                                By: /s/ Thomas A. Vann
                                    --------------------------
                                    Thomas A. Vann, President
                                    (Duly Authorized
                                    Representative)


                  POWER OF ATTORNEY

     We, the undersigned Directors of NewSouth Bancorp, Inc.,
hereby severally constitute and appoint Thomas A. Vann, with full
power of substitution, our true and lawful attorney and agent, to
do any and all things in our names in the capacities indicated
below which said Thomas A. Vann may deem necessary or advisable
to enable NewSouth Bancorp, Inc. to comply with the Securities
Act of 1933, as amended, and any rules, regulations and
requirements of the Securities and Exchange Commission, in
connection with the registration of NewSouth Bancorp, Inc. common
stock, including specifically, but not limited to, power and
authority to sign for us in our names in the capacities indicated
below, the Registration Statement and any and all amendments
(including post-effective amendments) thereto; and we hereby
ratify and confirm all that said Thomas A. Vann shall do or cause
to be done by virtue thereof.

     Pursuant to the requirements of the Securities Act of 1933,
as amended, this Registration Statement has been signed by the
following persons in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
 Signatures                   Title                          Date
----------                    -----                          -----
<S>                           <C>                            <C>
/s/ Thomas A. Vann           President and Director          February 18, 1997
----------------------      (Principal Executive Officer)
Thomas A. Vann

/s/ William L. Wall         Executive Vice President and     February 18, 1997
---------------------       Chief Operating Officer
William L. Wall             (Principal Financial and 
                            Accounting Officer)

/s/ Edmund T. Buckman, Jr.  Director                         February 18, 1997
--------------------------
Edmund T. Buckman, Jr.

/s/ Linley H. Gibbs, Jr.    Director                         February 18, 1997
------------------------
Linley H. Gibbs, Jr.

/s/ Frederick N. Holscher   Director                         February 18, 1997
-------------------------
Frederick N. Holscher

/s/ Frederick H. Howdy      Director                         February 18, 1997
----------------------
Frederick H. Howdy

----------------------      Director                         ________ __, 1997
Charles E. Parker, Jr.

/s/ Marshall T. Singleton   Director                         February 18, 1997
-------------------------
Marshall T. Singleton
/TABLE
<PAGE>
<PAGE>

     Pursuant to the requirements of the Securities Act of 1933,
the undersigned trustee of the Home Savings Bank, SSB Employees'
Savings and Profit Sharing Plan and Trust has duly caused this
registration statement to be signed in the City of Washington,
State of North Carolina, on February 18, 1997.


          Thomas A. Vann, As Trustee of the Common Stock Fund
          under the Home Savings Bank, SSB Employees' Savings and
          Profit Sharing Plan and Trust
          


          By: /s/ Thomas A. Vann
              ---------------------------------



<PAGE>
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{"company-data": {"conformed-name": "NEWSOUTH BANCORP INC", "cik": "0001027183", "assigned-sic": "6035", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-22057", "film-number": "97539008"}, "business-address": {"street1": "1311 CAROLINA AVENUE", "city": "WASHINGTON", "state": "NC", "zip": "27889", "phone": "9199464178"}, "mail-address": {"street1": "1311 CAROLINA AVENUE", "city": "WASHINGTON", "state": "NC", "zip": "27889"}}
As filed with the Securities and Exchange Commission 
                        on February 19, 1997
                                   Registration No. 333-_____
_________________________________________________________________
               SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549
          _____________________________________________
                            FORM S-8
                  REGISTRATION STATEMENT UNDER
                    THE SECURITIES ACT OF 1933
          _____________________________________________

                      NEWSOUTH BANCORP, INC.
---------------------------------------------------------------
    (Exact name of Registrant as Specified in Its Charter)

            Delaware                            56-1999749
---------------------------------------------------------------
(State or other jurisdiction of             (I.R.S. Employer
incorporation or organization)             Identification No.)

                 1311 Carolina Avenue, P.O. Box 2047
                    Washington, North Carolina  27889
                        (919) 946-4178
-----------------------------------------------------------------
              (Address of Principal Executive Offices)

                        Home Savings Bank, SSB
        Employee's Savings and Profit Sharing Plan and Trust
-----------------------------------------------------------------
                    (Full Title of the Plan)

                      J. Mark Poerio, Esquire
                     Joel E. Rappoport, Esquire
                Housley Kantarian & Bronstein, P.C.
                  1220 19th Street N.W., Suite 700
                     Washington, D.C.  20036
-----------------------------------------------------------------
               (Name and Address of Agent For Service)

                        (202) 822-9611
-----------------------------------------------------------------
 (Telephone number, including area code, of agent for service)
CALCULATION OF REGISTRATION FEE
====================================================================================
Title of                            Proposed Maximum  Proposed Maximum    Amount of
Securities to         Amount to be   Offering Price   Aggregate Offering Registration
be registered(1)      registered(2)    Per Share(3)       Price(4)            Fee
------------------------------------------------------------------------------------
Common Stock, $.01
par value per share     30,493          $15.00           $457,400           $138.61
=====================================================================================
(1)     In addition, pursuant to Rule 416(c) under the Securities
Act of 1933, this registration statement also covers an
indeterminate amount of interests available pursuant to Financial
Institutions Thrift Plan as adopted by Home Savings Bank, SSB (to
be renamed as the Home Savings Bank, SSB Employees' Savings and
Profit Sharing Plan and Trust, effective March 1, 1997) (the
"Plan") as described herein.
(2)     Estimates the maximum number of shares expected to be
issued under the Plan assuming that all employer and employee
contributions to the Plan are used to purchase shares of Common
Stock of NewSouth Bancorp, Inc. in the conversion of Home Savings
Bank, SSB from mutual to stock form ("Conversion"), together with
an indeterminate number of shares which may be necessary to
adjust the number of additional shares of Common Stock reserved
for issuance pursuant to the Plan and being registered herein, as
the result of a stock split, stock dividend, reclassification,
recapitalization or similar adjustment(s) of the Common Stock of
NewSouth Bancorp, Inc.
(3)     Estimated solely for the purpose of calculating the
registration fee and calculated pursuant to Rule 457(c) based on
maximum subscription price of $15.00 per share of the Common
Stock of NewSouth Bancorp, Inc., as currently offered in the
Conversion.
(4)      Estimated based on (2) and (3) above.
THIS REGISTRATION STATEMENT SHALL BECOME EFFECTIVE AUTOMATICALLY
UPON THE DATE OF FILING, IN ACCORDANCE WITH SECTION 8(A) OF THE
SECURITIES ACT OF 1933.
PART I

       INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS

ITEM 1.  PLAN INFORMATION*
------

ITEM 2.  REGISTRANT INFORMATION AND EMPLOYEE PLAN ANNUAL
-------  INFORMATION*
     *This Registration Statement relates to the registration of
30,493 shares of Common Stock, $.01 par value per share, of
NewSouth Bancorp, Inc. (the "Company") reserved for issuance and
delivery under the Home Savings Bank, SSB Employees' Savings and
Profit Sharing Plan and Trust (the "Plan").  Documents containing
the information required by Part I of this Registration Statement
will be sent or given to participants in the Plan as specified by
Rule 428(b)(1).  Such documents are not filed with the Securities
and Exchange Commission (the "Commission") either as part of this
Registration Statement or as prospectuses or prospectus
supplements pursuant to Rule 424, in reliance on Rule 428.

                          PART II 

      INFORMATION REQUIRED IN THE REGISTRATION STATEMENT

ITEM 3.  INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
------
     The Company became subject to the informational requirements
of the Securities Exchange Act of 1934 (the "1934 Act") on
February 11, 1997 and, accordingly, will be filing periodic
reports and other information with the Commission.  Reports,
proxy statements and other information concerning the Company
filed with the Commission may be inspected and copies may be
obtained (at prescribed rates) at the Commission's Public
Reference Section, Room 1024, 450 Fifth Street, N.W., Washington,
D.C. 20549.

     The following document filed by the Company is incorporated
in this Registration Statement by reference: the Prospectus for
the Common Stock, included in the Company's Registration
Statement (Commission File No. 333-16335)

     ALL DOCUMENTS FILED BY THE COMPANY AND THE PLAN PURSUANT TO
SECTIONS 13(A), 13(C), 14, AND 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, AFTER THE DATE HEREOF AND PRIOR TO THE
FILING OF A POST-EFFECTIVE AMENDMENT WHICH INDICATES THAT ALL
SECURITIES OFFERED HAVE BEEN SOLD OR WHICH DEREGISTERS ALL
SECURITIES THEN REMAINING UNSOLD SHALL BE DEEMED TO BE
INCORPORATED BY REFERENCE IN THIS REGISTRATION STATEMENT AND TO
BE A PART HEREOF FROM THE DATE OF FILING OF SUCH DOCUMENTS.

ITEM 4.  DESCRIPTION OF SECURITIES
------
     The information required by Item 202 of Regulation S-K is
set forth in the description of the Common Stock included in the
Prospectus for the Common Stock (dated February 11, 1997), as
incorporated by reference under Item 3 hereof, such description
being incorporated by reference herein.

ITEM 5.  INTERESTS OF NAMED EXPERTS AND COUNSEL
------
     Not applicable.

ITEM 6.  INDEMNIFICATION OF DIRECTORS AND OFFICERS OF THE COMPANY
------
     Directors, officers and employees of the Company may be
entitled to benefit from the indemnification provisions contained
in the Delaware General Corporation Law (the "DGCL") and the
Company's Certificate of Incorporation.  The general effect of
these provisions is summarized below:
DELAWARE GENERAL CORPORATION LAW
--------------------------------

     Section 145 of the DGCL permits a Delaware corporation to
indemnify any person who was or is a party or is threatened to be
made a party to any proceeding of any type, (other than an action
by or in the right of the corporation) by reason of the fact that
he is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the
corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit
or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests
of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was
unlawful.  The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, may not, of itself, create a
presumption that these standards have not been met.

     A Delaware corporation may also indemnify any person who was
or is a party or is threatened to be made a party to any
proceeding by or in the right of the corporation by reason of the
fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the
corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other
enterprise against expenses (including attorneys' fees) actually
and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and
in a manner he reasonably believed to be in or not opposed to the
best interests of the corporation.  However, no indemnification
may be made in respect of any claim, issue or matter as to which
such person shall have been adjudged to be liable to the
corporation unless and only to the extent that the Court of
Chancery or the court in which such action or suit was brought
determines upon application that such person is fairly and
reasonably entitled to be indemnified.

     To the extent that a director, officer, employee or agent of
a corporation has been successful on the merits or otherwise in
defense of any proceeding described above indemnification against
expenses (including attorneys' fees) actually and reasonably
incurred by him is mandatory.

     Any determination that indemnification of the director,
officer, employee or agent is proper in the circumstances because
he has met the applicable standard of conduct set forth in
subsections (a) and (b) must be made by a majority of the board
of directors by a majority vote of a quorum consisting of
directors who were not parties to such action, suit or
proceeding, or if such a quorum is not obtainable, or, even if
obtainable a quorum of disinterested directors so directs, by
independent legal counsel in a written opinion, or by the
stockholders.

     Expenses (including attorneys' fees) incurred by an officer
or director in defending any civil, criminal, administrative or
investigative action, suit or proceeding may be paid by the
corporation in advance of the final disposition of or proceeding
upon receipt of an undertaking by or on behalf of such director
or officer to repay such amount if it shall ultimately be
determined that he is not entitled to be indemnified by the
corporation.

     The indemnification and advancement of expenses provided by,
or granted pursuant to, the other subsections of this section is
not exclusive.

     In addition, a corporation shall have power to purchase and
maintain insurance against any liability of individuals whom the
corporation is required to indemnify.

     Article XVII of the Company's Certificate of Incorporation
sets forth circumstances under which directors, officers,
employees and agents may be insured or indemnified against
liability which they may incur in their capacities as such.

                          ARTICLE XVII

                         INDEMNIFICATION

     A.     Persons.  The Corporation shall indemnify, to the
extent provided in paragraphs B, D or F:

          (1)   any person who is or was a director, officer,
employee, or agent of the Corporation; and
(2)  any person who serves or served at the
Corporation's request as a director, officer, employee, agent,
partner or trustee of another corporation, partnership, joint
venture, trust or other enterprise.

     B.     Extent -- Derivative Suits.  In case of a threatened,
pending or completed action or suit by or in the right of the
Corporation against a person named in paragraph A by reason of
his holding a position named in paragraph A, the Corporation
shall indemnify him if he satisfies the standard in paragraph C,
for expenses (including attorneys' fees but excluding amounts
paid in settlement) actually and reasonably incurred by him in
connection with the defense or settlement of the action or suit.

     C.     Standard -- Derivative Suits.  In case of a
threatened, pending or completed action or suit by or in the
right of the Corporation, a person named in paragraph A shall be
indemnified only if:

          (1)   he is successful on the merits or otherwise; or

          (2)   he acted in good faith in the transaction which
     is the subject of the suit or action, and in a manner he
     reasonably believed to be in, or not opposed to, the best
     interests of the Corporation, including, but not limited to,
     the taking of any and all actions in connection with the
     Corporation's response to any tender offer or any offer or
     proposal of another party to engage in a Business
     Combination (as defined in Article XV) not approved by the
     board of directors.  However, he shall not be indemnified in
     respect of any claim, issue or matter as to which he has
     been adjudged liable to the Corporation unless and only to
     the extent that the court in which the suit was brought
     shall determine, upon application, that despite the
     adjudication but in view of all the circumstances, he is
     fairly and reasonably entitled to indemnity for such
     expenses as the court shall deem proper.

     D.     Extent -- Nonderivative Suits.  In case of a
threatened, pending or completed suit, action or proceeding
(whether civil, criminal, administrative or investigative), other
than a suit by or in the right of the Corporation, together
hereafter referred to as a nonderivative suit, against a person
named in paragraph A by reason of his holding a position named in
paragraph A, the Corporation shall indemnify him if he satisfies
the standard in paragraph E, for amounts actually and reasonably
incurred by him in connection with the defense or settlement of
the nonderivative suit, including, but not limited to (i)
expenses (including attorneys' fees), (ii) amounts paid in
settlement, (iii) judgments, and (iv) fines.

     E.     Standard -- Nonderivative Suits.  In case of a
nonderivative suit, a person named in paragraph A shall be
indemnified only if:

          (1)   he is successful on the merits or otherwise; or

          (2)   he acted in good faith in the transaction which
     is the subject of the nonderivative suit and in a manner he
     reasonably believed to be in, or not opposed to, the best
     interests of the Corporation, including, but not limited to,
     the taking of any and all actions in connection with the
     Corporation's response to any tender offer or any offer or
     proposal of another party to engage in a Business
     Combination (as defined in Article XV) not approved by the
     board of directors and, with respect to any criminal action
     or proceeding, he had no reasonable cause to believe his
     conduct was unlawful.  The termination of a nonderivative
     suit by judgment, order, settlement, conviction, or upon a
     plea of nolo contendere or its equivalent shall not, in 
     itself, create a presumption that the person failed to
     satisfy the standard of this subparagraph E(2).

     F.     Determination That Standard Has Been Met.  A
determination that the standard of paragraph C or E has been
satisfied may be made by a court, or, except as stated in
subparagraph C(2) (second sentence), the determination may be
made by:

          (1)  the board of directors by a majority vote of a
     quorum consisting of directors of the Corporation who were
     not parties to the action, suit or proceeding; or

          (2)   independent legal counsel (appointed by a
     majority of the disinterested directors of the Corporation,
     whether or not a quorum) in a written opinion; or

          (3)   the stockholders of the Corporation.

     G.     Proration.  Anyone making a determination under
paragraph F may determine that a person has met the standard as
to some matters but not as to others, and may reasonably prorate
amounts to be indemnified.
H.     Advance Payment.  The Corporation shall pay in
advance any expenses (including attorneys' fees) which may become
subject to indemnification under paragraphs A through G if:

          (1)  the board of directors authorizes the specific
     payment; and
          (2)   the person receiving the payment undertakes in
     writing to repay the same if it is ultimately determined
     that he is not entitled to indemnification by the
     Corporation under paragraphs A through G.

     I.     Nonexclusive.  The indemnification and advance
payment of expenses provided by paragraphs A through H shall not
be exclusive of any other rights to which a person may be
entitled by law, bylaw, agreement, vote of stockholders or
disinterested directors, or otherwise.

     J.     Continuation.  The indemnification provided by this
Article XVII shall be deemed to be a contract between the
Corporation and the persons entitled to indemnification
thereunder, and any repeal or modification of this Article XVII
shall not affect any rights or obligations then existing with
respect to any state of facts then or theretofore existing or any
action, suit or proceeding theretofore or thereafter brought
based in whole or in part upon any such state of facts.  The
indemnification and advance payment provided by paragraphs A
through H shall continue as to a person who has ceased to hold a
position named in paragraph A and shall inure to his heirs,
executors and administrators.

     K.     Insurance.  The Corporation may purchase and maintain
insurance on behalf of any person who holds or who has held any
position named in paragraph A, against any liability incurred by
him in any such position, or arising out of his status as such,
whether or not the Corporation would have power to indemnify him
against such liability under paragraphs A through H.

     L.     Intention and Savings Clause.  It is the intention of
this Article XVII to provide for indemnification to the fullest
extent permitted by the General Corporation Law of the State of
Delaware, and this Article XVII shall be interpreted accordingly. 
If this Article XVII or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify each director, officer,
employee, and agent of the Corporation as to costs, charges, and
expenses (including attorneys' fees), judgments, fines, and
amounts paid in settlement with respect to any action, suit, or
proceeding, whether civil, criminal, administrative, or
investigative, including an action by or in the right of the
Corporation to the full extent permitted by any applicable
portion of this Article XVII that shall not have been invalidated
and to the full extent permitted by applicable law.  If the
General Corporation Law of the State of Delaware is amended, or
other Delaware law is enacted, to permit further or additional
indemnification of the persons defined in this Article XVII A,
then the indemnification of such persons shall be to the fullest
extent permitted by the General Corporation Law of the State of
Delaware, as so amended, or such other Delaware law.

INDEMNIFICATION OF DIRECTORS AND OFFICERS OF HOME SAVINGS BANK,
INC., SSB AND NEWSOUTH BANCORP, INC.

     The Amended and Restated Certificate of Incorporation of the
Bank provide that, to the fullest extent permitted by the North
Carolina Business Corporation Act (the "NCBCA"), no person who
serves as a director shall be personally liable to the Bank or
any of its stockholders or otherwise for monetary damages for
breach of any duty as director.  

     In addition, Article IX of the Amended and Restated Bylaws
of the Converted Bank state that any person who at any time
serves or has served as a director or officer of the Bank, or
who, while serving as a director or officer of the Bank, serves
or has served at the request of the Bank as a director, officer,
partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, or as a
trustee or administrator under an employee benefit plan, shall
have a right to be indemnified by the Bank to the fullest extent
permitted by law against (a) reasonable expenses, including
attorneys' fees, incurred by him in connection with any
threatened, pending or completed civil, criminal, administrative,
investigative, or arbitrative action, suit, or proceeding (and
any appeal therein), whether or not brought by or on behalf of
the Bank, seeking to hold him liable by reason of the fact that
he is or was acting in such capacity, and (b) reasonable payments
made by him in satisfaction of any judgment, money decree, fine
(including an excise tax assessed with respect to an employee
benefit plan) or penalty for which he may have become liable in
any such action, suit or proceeding, or in connection with a
settlement approved by the Board of Directors of any such action,
suit or proceeding.
Sections 55-8-50 through 55-8-58 of the NCBCA contain
provisions prescribing the extent to which directors and officers
shall or may be indemnified.  Section 55-8-51 of the NCBCA
permits a corporation, with certain exceptions, to indemnify a
present or former director against liability if (i) the director
conducted himself in good faith, (ii) the director reasonably
believed (x) that the director's conduct in the director's
official capacity with the corporation was in its best interests
and (y) in all other cases the director's conduct was at least
not opposed to the corporation's best interests, and (iii) in the
case of any criminal proceeding, the director had no reasonable
cause to believe the director's conduct was unlawful.  A
corporation may not indemnify a director in connection with a
proceeding by or in the right of the corporation in which the
director was adjudged liable to the corporation or in connection
with a proceeding charging improper personal benefit to the
director.  The above standard of conduct is determined by the
board of directors, or a committee or special legal counsel or
the shareholders as prescribed in Section 55-8-55.

     Sections 55-8-52 and 55-8-56 of the NCBCA require a
corporation to indemnify a director or officer in the defense of
any proceeding to which the director or officer was a party
against reasonable expenses when the director or officer is
wholly successful in the director's or officer's defense, unless
the articles of incorporation provide otherwise.  Upon
application, the court may order indemnification of the director
or officer if the director or officer is adjudged fairly and
reasonably so entitled under Section 55-8-54.

     In addition, Section 55-8-57 permits a corporation to
provide for indemnification of directors, officers, employees or
agents, in its articles of incorporation or bylaws or by contract
or resolution, against liability in various proceedings and to
purchase and maintain insurance policies on behalf of these
individuals.

     The foregoing is only a general summary of certain aspects
of North Carolina law dealing with indemnification of directors
and officers and does not purport to be complete.  It is
qualified in its entirety by reference to the relevant statutes,
which contain detailed specific provisions regarding the
circumstances under which and the person for whose benefit
indemnifications shall or may be made.

     The Bank has a directors and officers liability policy
providing for insurance against certain liabilities incurred by
directors and officers of the Bank while serving in their
capacities as such.

ITEM 7.  EXEMPTION FROM REGISTRATION CLAIMED
------

         Not applicable.

ITEM 8.  EXHIBITS
------

     The exhibits schedules filed as a part of this registration
statement are as follows:

     4.1   Financial Institutions Thrift Plan as adopted by Home
           Savings Bank, SSB (the "Plan")

     4.2   Summary Plan Description of the Plan
     
     4.3   Form of Investment Election to be made available to
           Plan Participants with respect to the investment of
           their accounts under the Plan

     5.1   Opinion of Housley Kantarian & Bronstein, P.C. as to
           the validity of the Common Stock being registered

     5.2   Favorable Determination Letter from the Internal
           Revenue Service Dated December 20, 1995, regarding the
           tax-qualification of the Plan documents

    23.1   Consent of Housley Kantarian & Bronstein, P.C.
           (appears in their opinion filed as Exhibit 5.1)

    23.2   Consent of Independent Certified Public Accountants

    24     Power of Attorney (contained in the signature page to
           this Registration Statement)

    99.1   Copy of the Plan's most recent Annual Report, as filed
           with the Internal Revenue Service on Form 5500
ITEM 9.  UNDERTAKINGS
------

     1.      The undersigned Registrant hereby undertakes:

             (a)  To file, during any period in which offers or
         sales are being made, a post-effective amendment to this
         registration statement to include any material
         information with respect to the plan of distribution not
         previously disclosed in the registration statement or
         any material change to such information in the
         registration statement.

             (b)  That, for the purpose of determining any
         liability under the Securities Act of 1933, to treat
         each such post-effective amendment as a new registration
         statement relating to the securities offered therein,
         and the offering of such securities at that time shall
         be deemed to be the initial bona fide offering thereof.

             (c)  To remove from registration by means of a post-
         effective amendment any of the securities being
         registered which remain unsold at the termination of the
         offering.

     2.     The undersigned Registrant hereby undertakes that,
for purposes of determining any liability under the Securities
Act of 1933, each filing of the Registrant's annual report
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934 (and, where applicable, each filing of an employee
benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by
reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.

     3.      The undersigned Registrant hereby undertakes to
deliver or cause to be delivered with the prospectus, to each
person to whom the prospectus is sent or given, the latest annual
report to security holders that is incorporated by reference in
the prospectus and furnished pursuant to and meeting the
requirements of Rule 14a-3 or Rule 14c-3 under the Securities
Exchange Act of 1934; and, where interim financial information
required to be presented by Article 3 of Regulation S-X are not
set forth in the prospectus, to deliver, or cause to be delivered
to each person to whom the prospectus is sent or given, the
latest quarterly report that is specifically incorporated by
reference in the prospectus to provide such interim financial
information.

     4.      Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to
the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable.  In the
event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or
paid by a director, officer or controlling person of the
Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
SIGNATURES

     Pursuant to the requirements of the Securities Act of 1933,
as amended, the Registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Washington, State of
North Carolina, on February 18, 1997.

                                NEWSOUTH BANCORP, INC.

                                By: /s/ Thomas A. Vann
                                    --------------------------
                                    Thomas A. Vann, President
                                    (Duly Authorized
                                    Representative)

                  POWER OF ATTORNEY

     We, the undersigned Directors of NewSouth Bancorp, Inc.,
hereby severally constitute and appoint Thomas A. Vann, with full
power of substitution, our true and lawful attorney and agent, to
do any and all things in our names in the capacities indicated
below which said Thomas A. Vann may deem necessary or advisable
to enable NewSouth Bancorp, Inc. to comply with the Securities
Act of 1933, as amended, and any rules, regulations and
requirements of the Securities and Exchange Commission, in
connection with the registration of NewSouth Bancorp, Inc. common
stock, including specifically, but not limited to, power and
authority to sign for us in our names in the capacities indicated
below, the Registration Statement and any and all amendments
(including post-effective amendments) thereto; and we hereby
ratify and confirm all that said Thomas A. Vann shall do or cause
to be done by virtue thereof.

     Pursuant to the requirements of the Securities Act of 1933,
as amended, this Registration Statement has been signed by the
following persons in the capacities and on the dates indicated.
Signatures                   Title                          Date
----------                    -----                          -----
/s/ Thomas A. Vann           President and Director          February 18, 1997
----------------------      (Principal Executive Officer)
Thomas A. Vann

/s/ William L. Wall         Executive Vice President and     February 18, 1997
---------------------       Chief Operating Officer
William L. Wall             (Principal Financial and 
                            Accounting Officer)

/s/ Edmund T. Buckman, Jr.  Director                         February 18, 1997
--------------------------
Edmund T. Buckman, Jr.

/s/ Linley H. Gibbs, Jr.    Director                         February 18, 1997
------------------------
Linley H. Gibbs, Jr.

/s/ Frederick N. Holscher   Director                         February 18, 1997
-------------------------
Frederick N. Holscher

/s/ Frederick H. Howdy      Director                         February 18, 1997
----------------------
Frederick H. Howdy

----------------------      Director                         ________ __, 1997
Charles E. Parker, Jr.

/s/ Marshall T. Singleton   Director                         February 18, 1997
-------------------------
Marshall T. Singleton
/TABLE
Pursuant to the requirements of the Securities Act of 1933,
the undersigned trustee of the Home Savings Bank, SSB Employees'
Savings and Profit Sharing Plan and Trust has duly caused this
registration statement to be signed in the City of Washington,
State of North Carolina, on February 18, 1997.

          Thomas A. Vann, As Trustee of the Common Stock Fund
          under the Home Savings Bank, SSB Employees' Savings and
          Profit Sharing Plan and Trust
          

          By: /s/ Thomas A. Vann
              ---------------------------------