North State Bancorp’s 4th Quarter Profits Slip

By The News & Observer, Raleigh, N.C.

Jan. 15–RALEIGH — Profits at North State Bank’s corporate parent fell 36 percent in the fourth quarter, driven in part by the costs of opening two new offices.

“We’re just building a bank for the future,” said Larry D. Barbour, president and CEO of Raleigh-based North State Bancorp.

A new downtown Raleigh office, which opened last month, and an office in Wilmington that opened last week gave the bank seven full-service offices.

Profits for the quarter totaled $610,000, or 8 cents per share. A year ago, the bank posted a fourth-quarter profit of $960,000, or 13 cents per share.

Profits for 2007 fell 6.1 percent to $3.1 million, or 42 cents per share.

Assets during the year increased 20 percent to $93 million, while loans increased 36 percent to $345.9 million.

The growth in loans — 45 percent of which occurred during the most recent quarter — also contributed to lower fourth quarter earnings because the company had to increase the reserves set aside for possible loan losses, Barbour said.

Barbour is bullish on the bank’s prospects for 2008, expecting a stronger slate of commercial real estate projects to lead the way.

“Locally, I think this economy is in good shape,” he said.

North State shares closed at $10.25 on Monday, up 50 cents.

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