North State Bancorp Reports First Quarter 2009 Results
Mon Apr 20, 1:12 PMRALEIGH, N.C., April 20 /PRNewswire-FirstCall/ -- North State Bancorp (OTC Bulletin Board: NSBC the "Company"), the holding company for North State Bank, reported net income for the first quarter of $833,000 compared with $629,000 for the prior year first quarter, an increase of $204,000 or 32.4%. The increase includes gains from security sales during the quarter of $464,000 or $285,000 net of income taxes. Net interest income increased $270,000 or 5.6% from $4.8 million for the first quarter of 2008 to $5.1 million for the same period in 2009. Diluted earnings per share were $.11 for the first quarter of 2009 compared to $.09 for the first quarter of the prior year.
At March 31, 2009, total assets grew 26.1% from $571.5 million to $720.6 million, total deposits grew 30.2% from $493.4 million to $642.6 million, and total loans increased 9.8% from $500.7 million to $549.6 million from March 31, 2008.
Larry Barbour, President and CEO stated, "We are pleased with these results in what are very challenging times. We believe our strategic focus has enabled us to enjoy strong asset growth funded by increases in core deposits from the selected niches we serve including attorneys, physicians, dentists, accountants, churches, property management firms, nonprofit organizations and high net worth individuals. We believe that our focus on these niches will enable us to provide unique value to our customers as the economy begins to improve. During the first quarter, we also announced the creation of a new division - CommunityPLUS, which has historically served our property management firms since the Bank's inception. Specifically, deposits for this segment grew 29.3% from an average balance of $107.3 million in December of 2008 to an average of $138.8 million in March 2009. Furthermore, all of our offices have created solid core deposit growth in all of our markets in the first quarter of 2009. This growth should enable us to continue our pursuit of high performance in our markets of Wake County, New Hanover County and Carteret County, NC."
"We believe our asset quality is sound with virtually no charge-offs for the first quarter while our liquidity is strong, enabling our capital and earnings to grow," continued Barbour. "We feel we have been prudent in managing our provision for possible loan losses and have enjoyed a relatively stable net interest margin during the first quarter of 2009."
"In all three counties that we serve, we deliver unique value and competitive advantages to those we bank through a very keen and consistent focus on mutually beneficial banking relationships as the primary way of growing our bank soundly and profitably," Mr. Barbour continued.
Founded in 2000, North State Bank is a full-service community bank, serving Wake and New Hanover Counties through seven full-service offices and with one loan production office in Carteret County.
North State Bancorp is listed on the OTC electronic bulletin board under the symbol "NSBC."
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 economic conditions, changes in interest rates, substantial changes in financial markets, changes in real estate values and the real estate market, our ability to manage growth, loss of deposits and loan demand to other savings and financial institutions, our limited operating history 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
Months Ended
March 31,
2009 2008
---- ----
(Dollars in thousands,
except per share)
Earnings Summary:
Total interest income $8,596 $8,988
Total interest expense 3,483 4,145
----- -----
Net interest income 5,113 4,843
Provision for loan losses 885 426
--- ---
Net interest income after provision
for loan losses 4,228 4,417
Noninterest income 688 303
Noninterest expense 3,520 3,723
----- -----
Income before income taxes 1,396 997
Income taxes 563 368
--- ---
Net income $833 $629
==== ====
Share and Per Share Data:
Earnings per share - basic $0.12 $0.09
Earnings per share - diluted $0.11 $0.09
Book value per share $5.03 $4.68
Weighted average shares outstanding:
Basic 7,174,414 7,138,556
Diluted 7,323,274 7,327,969
Financial Condition Period End:
Cash, federal funds sold and due from
banks $129,100 $28,836
Investment securities 25,933 30,679
Loans 549,557 500,669
Less allowance for loan losses 7,201 5,444
Other assets 23,228 16,751
------ ------
Total assets $720,617 $571,491
======== ========
Deposits $642,570 $493,371
Other borrowings 37,288 39,707
Other liabilities 4,649 4,910
Shareholders' equity 36,110 33,503
------ ------
Total liabilities and shareholders'
equity $720,617 $571,491
======== ========
Financial Condition Average Balances:
Cash, federal funds sold and due from
banks $106,807 $15,504
Investment securities 26,184 33,366
Loans 548,221 482,313
Less allowance for loan losses 6,668 5,109
Other assets 21,925 17,957
------ ------
Total assets $696,469 $544,031
======== ========
Deposits $619,713 $463,365
Other borrowings 36,571 43,124
Other liabilities 3,799 4,168
Shareholders' equity 36,386 33,374
------ ------
Total liabilities and shareholders'
equity $696,469 $544,031
======== ========
Performance Ratios:
Return on average assets 0.49% 0.47%
Return on average equity 9.28% 7.58%
Net interest margin 3.08% 3.72%
Efficiency ratio 60.68% 72.35%
Asset Quality Ratios:
Net loan charge-offs to average loans 0.01% 0.00%
Nonperforming loans to period-end loans 1.24% 0.56%
Nonperforming assets to total assets 1.27% 0.49%
Ratio of allowance for loan losses to
nonperforming loans 1.05 x 1.93 x
Allowance for loan losses to period-end
loans 1.31% 1.09%
Other Data:
Average equity to average assets 5.22% 6.13%
Total shareholders' equity to assets 5.01% 5.86%
Number of offices:
Full service banking offices 7 7
Loan production offices 1 1
Number of employees (FTEs) 100 99
SOURCE North State Bancorp
69.72 (0.62%)
