North State Bancorp Reports Profitable 2008
Posted on: Thursday, 29 January 2009, 10:39 CST
RALEIGH, N.C., Jan. 29 /PRNewswire-FirstCall/ -- North State Bancorp (OTC
Bulletin Board: NSBC) (the "Company"), the holding company for North State
Bank, reported total assets of $687.6 million as of December 31, 2008,
compared to total assets of $547.5 million at December 31, 2007, an increase
of $140.1 million or 25.6%.
Total deposits for North State Bank at December 31, 2008 were $612.7
million and total loans were $546.4 million, compared to total deposits of
$457.3 million and total loans of $469.2 million reported at December 31,
2007, an increase of $155.4 million or 34.0% and $77.2 million or 16.5%,
respectively. The Company has no exposure to subprime loans and has chosen
not to participate in the Capital Purchase Plan of the U.S. Government's
Troubled Asset Relief Program (TARP).
North State Bancorp reported net income of $2.4 million for the year ended
December 31, 2008 compared to $3.1 million for the same period in 2007, a
decrease of $700,000 or 22.6%. Net income per diluted share was $.32 for the
year ended December 31, 2008 compared to $0.42 for the same period in 2007.
For the quarter ended December 31, 2008, net income was $507,000 or $.07 per
diluted share compared to $610,000 or $0.08 per diluted share for the same
period in 2007.
According to President & CEO Larry D. Barbour, "North State Bank
experienced good growth with well-aligned customers during a very difficult
time for the financial industry as a whole. Despite sharp decreases in
interest rates, our net interest margin was maintained at levels higher than
most of our peers. However, we did experience lower profitability in 2008.
This was driven, in part, by higher non-interest expenses as we opened two new
full service offices and set aside a higher provision for potential problem
loans. While we have utmost confidence in our customers, the unusual economic
situation in our country requires prudence and preparation. The new full
service offices opened in 2008 are located in downtown Raleigh, Wake County,
NC and in Wilmington, New Hanover County, NC. Construction of our new
corporate headquarters and full service office at 6200 Falls of Neuse Road
also began in 2008 and will open in 2009. We also committed financial
resources to grow in new markets by opening a loan production office in
Morehead City, Carteret County, NC in June 2008.
"Overall we are comfortable with our ability to manage these challenges as
we believe we are well positioned compared to our peers. Specifically, North
State Bank's asset quality ratios of non-performing loans to period-end loans
and net charge-offs to average loans were .93% and .27%, respectively, at
December 31, 2008. This compares to average ratios of 1.73% and .33%,
respectively, for the SNL Bank Index consisting of banks with assets of
between $500 million and $1 billion. In spite of the current economic
headwinds, North State Bank remains focused on our niches of customers
including professionals, professional firms, non-profits, high net worth
individuals and property management companies. We are confident that our
investments in new facilities and additional personnel as well as our niche-
based focus will provide North State Bank with competitive advantages in 2009.
North State Bank is well capitalized, has good liquidity and looks forward
with confidence to the challenges we know 2009 will bring."
Founded in 2000, North State Bank is a full-service community bank,
currently serving Wake and New Hanover counties through seven full-service
offices at: Six Forks Road at North Hills, Falls of Neuse Road, Blue Ridge
Road, New Falls of Neuse Road in Wake Forest and 16 Martin Street in downtown
Raleigh, and Highway 70 West in Garner, and the intersection of Military
Cutoff and Eastwood Roads in Wilmington, NC. In addition, North State Bank
operates a loan production office in Carteret County at 4650-A Arendell
Street, Morehead City, NC.
Stock Symbol: OTC-BB: NSBC www.northstatebank.com
The information as of and for the quarter and year ended December 31, 2008
as presented is unaudited. This news release contains forward-looking
statements. The actual results might differ materially from those projected in
the forward-looking statements for various reasons, including the local,
regional and national economies, substantial changes in financial markets,
changes in real estate values and the real estate market, changes in interest
rates, our ability to manage growth, loss of deposits and loan demand to other
savings and financial institutions, and regulatory changes. Additional
information concerning factors that could cause actual results to materially
differ from those in the forward-looking statements is contained in the
Company's SEC filings, including its periodic reports under the Securities
Exchange Act of 1934, as amended, copies of which are available upon request
from the Company.
North State Bancorp
Selected Financial Information and Other Data (Unaudited)
At or for the Three At or for the
Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
(Dollars in thousands, except per share)
Earnings Summary:
Total interest income $9,103 $8,858 $36,075 $32,738
Total interest expense 4,145 4,300 15,817 15,439
Net interest income 4,958 4,558 20,258 17,299
Provision for loan losses 881 662 2,755 1,339
Net interest income after
provision for loan losses 4,077 3,896 17,503 15,960
Noninterest income 201 275 1,226 1,121
Noninterest expense 3,388 3,176 14,809 12,033
Income before income
taxes 890 995 3,920 5,048
Income taxes 383 385 1,555 1,953
Net income $507 $610 $2,365 $3,095
Share and Per Share Data:
Earnings per share - basic $0.07 $0.09 $0.33 $0.45
Earnings per share -
diluted $0.07 $0.08 $0.32 $0.42
Book value per share $4.96 $4.52 $4.96 $4.52
Weighted average shares
outstanding:
Basic 7,171,268 6,972,779 7,158,545 6,917,365
Diluted 7,333,067 7,298,720 7,356,364 7,301,377
Financial Condition Period
End:
Cash, federal funds sold
and due from banks $88,272 $30,766 $88,272 $30,766
Investment securities 37,156 34,843 37,156 34,843
Loans 546,357 469,228 546,357 469,228
Less allowance for loan
losses 6,376 5,020 6,376 5,020
Other assets 22,172 17,703 22,172 17,703
Total assets $687,581 $547,520 $687,581 $547,520
Deposits $612,678 $457,310 $612,678 $457,310
Other borrowings 35,093 54,218 35,093 54,218
Other liabilities 4,264 4,435 4,264 4,435
Shareholders' equity 35,546 31,557 35,546 31,557
Total liabilities and
shareholders' equity $687,581 $547,520 $687,581 $547,520
Financial Condition Average
Balances:
Cash, federal funds sold
and due from banks $77,375 $18,230 $32,237 $29,129
Investment securities 31,338 37,078 29,776 38,600
Loans 542,528 446,785 520,075 393,927
Less allowance for loan
losses 6,106 4,571 5,608 4,185
Other assets 18,034 17,363 18,052 15,356
Total assets $663,169 $514,885 $594,532 $472,827
Deposits $590,346 $432,861 $512,855 $412,125
Other borrowings 34,905 45,308 43,057 26,347
Other liabilities 2,397 5,479 4,094 5,136
Shareholders' equity 35,521 31,237 34,526 29,219
Total liabilities and
shareholders' equity $663,169 $514,885 $594,532 $472,827
-
Performance Ratios:
Return on average assets 0.30% 0.47% 0.40% 0.65%
Return on average equity 5.68% 7.75% 6.85% 10.59%
Net interest margin 3.07% 3.66% 3.52% 3.81%
Efficiency ratio 65.67% 65.71% 68.93% 65.33%
Asset Quality Ratios:
Net loan charge-offs to
average loans -0.37% 0.00% -0.27% -0.08%
Nonperforming loans to
period-end loans 0.93% 0.66% 0.93% 0.66%
Nonperforming assets to
total assets 1.07% 0.57% 1.07% 0.57%
Ratio of allowance for
loan losses to
nonperforming loans 1.26 x 1.62 x 1.26 x 1.62 x
Allowance for loan losses
to period-end loans 1.17% 1.07% 1.17% 1.07%
Other Data:
Average equity to average
assets 5.36% 6.07% 5.81% 6.18%
Total shareholders' equity
to assets 5.17% 5.76% 5.17% 5.76%
Number of offices:
Full service banking
offices 7 6 7 6
Loan production
offices 1 1 1 1
Number of employees (FTEs) 100 99 100 99
SOURCE North State Bancorp
Source: PR Newswire
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