EXHIBIT
      99.2









March
      23,
      2007





Dear
      FNB
      Colleagues:





It
      has
      been about three weeks since LSB Bancshares, Inc. and FNB Southeast Financial
      Services announced the signing of a definitive agreement to combine in a merger
      of equals. As promised, we plan to keep you informed of developments regarding
      the merger as information becomes available.





First,
      I
      want to thank you for your overwhelming support of the merger.  Your
      positive comments and e-mails have encouraged both Bob Lowe, president and
      CEO
      of LSB, and me that this merger will work because we have a team with the right
      attitude to make it successful.





When
      the
      merger is complete, we will have a unique opportunity to build a new company
      that can continue to successfully challenge area banks for market
      leadership.  I encourage each of you to embrace the vision that was
      outlined in our announcement and to value the opportunities that will unfold
      over time for our shareholders, companies, employees and
      communities.





Bob
      and I
      have identified the team that will begin to review and define best practices
      and
      put together the best capabilities from each company.  The goal is to
      emerge stronger as a combined company than we currently are standing
      alone.





Attached
      is an organization chart for the combined company.  We are still
      developing a few ideas and will let you know if changes occur.





The
      integration of our two banks starts with the naming of this management team.
      They will ensure that we have common philosophies by area.  Next we
      will look at capabilities, and then comes building the organizational structure
      to deliver the defined capabilities and identifying the talent that will deliver
      it.  Finally, action plans will be developed to bring us together at
      the closing, with a clear roadmap and direction for each functional area of
      the
      new bank.





We
      have
      selected a strong team and I would ask that you provide your continued support
      and patience as they begin to create one of the most dynamic banks in the
      Southeast.





Next
      week
      we hope to communicate with you again with a set of questions that many of
      you
      and our customers have asked.  We will attempt to provide answers to
      those questions to help you stay informed about details of the
      merger.





Sincerely,


Pressley
      A. Ridgill


President
      and Chief Executive Officer


FNB
      Southeast














**ADDITIONAL
      INFORMATION AND WHERE TO FIND IT**





IN
      CONNECTION WITH THE MERGER, LSB WILL FILE A REGISTRATION STATEMENT, WHICH WILL
      INCLUDE A JOINT PROXY STATEMENT/PROSPECTUS TO BE SENT TO EACH COMPANY’S
      SHAREHOLDERS, AND EACH OF LSB AND FNB MAY FILE OTHER RELEVANT DOCUMENTS
      CONCERNING THE MERGER WITH THE SECURITIES AND EXCHANGE COMMISSION (THE
“SEC”).  STOCKHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND
      THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN THEY BECOME
      AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY
      AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN
      IMPORTANT INFORMATION.





YOU
      WILL
      BE ABLE TO OBTAIN A FREE COPY OF THE JOINT PROXY STATEMENT/PROSPECTUS, AS WELL
      AS OTHER FILINGS CONTAINING INFORMATION ABOUT LSB AND FNB, AT THE SEC’S WEBSITE
      (HTTP://WWW.SEC.GOV).  YOU WILL ALSO BE ABLE TO OBTAIN THESE
      DOCUMENTS, FREE OF CHARGE, BY ACCESSING LSB’S WEBSITE
      (HTTP://WWW.LSBNC.COM), OR BY ACCESSING FNB’S WEBSITE
      (HTTP://WWW.FNBSOUTHEAST.COM).





**PARTICIPANTS
      IN THE SOLICITATION**





LSB
      AND
      FNB AND THEIR RESPECTIVE DIRECTORS AND EXECUTIVE OFFICERS MAY BE DEEMED TO
      BE
      PARTICIPANTS IN THE SOLICITATION OF PROXIES FROM THE SHAREHOLDERS OF LSB AND/OR
      FNB IN CONNECTION WITH THE MERGER.  INFORMATION ABOUT THE DIRECTORS
      AND EXECUTIVE OFFICERS OF LSB IS SET FORTH IN LSB’S FORM 10-K, AS FILED WITH THE
      SEC ON MARCH 16, 2007.  INFORMATION ABOUT THE DIRECTORS AND EXECUTIVE
      OFFICERS OF FNB IS SET FORTH IN FNB’S FORM 10-K, AS FILED WITH THE SEC ON MARCH
      16, 2007.  ADDITIONAL INFORMATION REGARDING THE INTERESTS OF THOSE
      PARTICIPANTS AND OTHER PERSONS WHO MAY BE DEEMED PARTICIPANTS IN THE TRANSACTION
      MAY BE OBTAINED BY READING THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE
      MERGER WHEN IT BECOMES AVAILABLE.  YOU MAY OBTAIN FREE COPIES OF THESE
      DOCUMENTS AS DESCRIBED ABOVE.
















Organizational
      Chart