The National Weather Service says a tornado caused damage in Morehead City and Atlantic Beach early Tuesday.
Weather forecasters already warned that severe weather was possible as nearly the entire N.C. coast was under a tornado watch until 8 a.m. Tuesday.
Tornado warnings were issued for the Outer Banks and the Morehead City area overnight.
Numerous power poles were snapped and some trees were down from the tornado that hit around 4:45 a.m., the weather service said. Several sheds were also destroyed.
The tornado caused damage along the Morehead City waterfront and around 4th and 5th streets, according to the National Weather Service.
Damage was also seen along Fort Macon Road in the area of Freeman Lane and Sands Villa Drive.
Images from the weather service show crews working on downed electrical lines Tuesday morning.
Weather service crews are also in the Morehead City area Tuesday to check damage and confirm what strength tornado hit the area.