North State Bancorp Reports Earnings for Third Quarter 2008
Wed Oct 22, 9:55 AMRALEIGH, N.C., Oct. 22 /PRNewswire-FirstCall/ -- For the quarter ended September 30, 2008, North State Bancorp (OTC Bulletin Board: NSBC the "Company"), the holding company for North State Bank (the "Bank"), reported net income of $586,000 and for the nine month period ended as of the same date, net income was $1,858,000.
"In the current economic environment, we are especially pleased to report positive earnings for the third quarter 2008 and to be able to report net income of nearly $1.9 million for the year-to-date period," said Larry D. Barbour, president and chief executive officer of the Company. "These are challenging times for our country, for the financial services industry, and for all of us. I believe it is a testament to the strength of our organization that we remain profitable which helps us to prepare for what we believe will be an even more prosperous future," Barbour stated.
In 2007, third quarter net income was $932,000 and for the nine-month period ended September 30, 2007 net income was $2,486,000. "In a year-to-year comparison from September 30, 2007 to September 30, 2008, key income components had increases of 20.0% or greater: interest income on loans was up 20.0%, noninterest income was up 21.0%, and net interest income-which is the heartbeat of earnings for community banks-increased 20.0%," Barbour said. "In light of the over 300 basis point decrease in the federal funds interest rate over the past year, we are particularly pleased with our income results. While we have not achieved the level of net income we achieved in 2007, we believe the shortfall is a result of the overall economic environment as core earnings are strong in spite of the lower Federal Funds interest rate, as well as the cost of our office expansion. We also continue to focus on expense control, developing profitable mutually beneficial customer relationships, and on growing North State Bank in ways that are prudent today and designed to build future value for all of our stakeholders," Barbour added.
As of September 30, 2008, total assets were $633.4 million, a 29.2% increase over total assets of $490.1 million reported as of September 30, 2007. Total deposits and total loans at the end of the third quarter 2008 were $558.5 million and $539.5 million, respectively, increases of 28.6% and 30.7%, respectively, compared to total deposits of $434.3 million and total loans of $412.9 million reported as of September 30, 2007.
Noninterest expenses were up 29.0% over the prior year period related to the Bank's investment in infrastructure by opening new offices -- full- services offices in Wilmington and Downtown Raleigh, as well as a loan production office in Morehead City -- and hiring experienced staff members for those offices, ones who will develop key relationships, and soundly grow the deposit and loan portfolios of the bank.
"Our focus remains on thinking strategically and executing our plan by serving the niche markets of professionals and their firms, churches, non- profit organizations, and property management companies, as well as high net worth individuals who desire a mutually-beneficial banking relationship," Barbour said. "We are growing deposit marketshare in the geographic markets we serve and we continue to operate the Company on sound banking principles, which has helped us to stay clear of many of the issues that financial services companies have experienced in the past year. We are confident about the future as we continuously strive to become better at what we already do best, " Barbour remarked.
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, 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, 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
At or for the Three At or for the Nine
Months Ended Months Ended
September 30, September 30,
2008 2007 2008 2007
(Dollars in thousands, except per share)
Earnings Summary:
Total interest income $9,141 $8,415 $26,972 $23,880
Total interest expense 3,875 3,933 11,672 11,139
Net interest income 5,266 4,482 15,300 12,741
Provision for loan losses 777 255 1,874 677
Net interest income after
provision for loan losses 4,489 4,227 13,426 12,064
Noninterest income 395 293 1,025 846
Noninterest expense 3,876 3,015 11,421 8,856
Income before income
taxes 1,008 1,505 3,030 4,054
Income taxes 422 573 1,172 1,568
Net income $586 $932 $1,858 $2,486
Share and Per Share Data:
Earnings per share - basic $0.08 $0.13 $0.26 $0.36
Earnings per share - diluted $0.08 $0.13 $0.25 $0.34
Book value per share $4.85 $4.35 $4.85 $4.35
Weighted average shares
outstanding:
Basic 7,163,898 6,960,806 7,154,931 6,898,691
Diluted 7,353,146 7,326,126 7,350,125 7,295,443
Financial Condition
Period End:
Cash, federal funds sold and
due from banks $56,688 $26,587 $56,688 $26,587
Investment securities 25,096 37,950 25,096 37,950
Loans, net 533,470 408,535 533,470 408,535
Other assets 18,110 17,053 18,110 17,053
Total assets $633,364 $490,125 $633,364 $490,125
Deposits $558,546 $434,254 $558,546 $434,254
Other borrowings 36,192 19,569 36,192 19,569
Other liabilities 3,813 5,983 3,813 5,983
Shareholders' equity 34,813 30,319 34,813 30,319
Total liabilities and
shareholder's equity $633,364 $490,125 $633,364 $490,125
Financial Condition Average
Balances:
Cash, federal funds sold and
due from banks $21,615 $28,558 $17,083 $32,801
Investment securities 25,934 38,637 29,253 39,113
Loans, net 534,298 393,962 507,095 372,060
Other assets 17,673 16,658 18,055 14,680
Total assets $599,520 $477,815 $571,486 $458,654
Deposits $520,610 $422,423 $486,836 $405,137
Other borrowings 39,930 19,988 45,794 19,957
Other liabilities 4,078 5,740 4,664 5,021
Shareholders' equity 34,902 29,664 34,192 28,539
Total liabilities and
shareholder's equity $599,520 $477,815 $571,486 $458,654
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Performance Ratios:
Return on average assets 0.39% 0.77% 0.43% 0.72%
Return on average equity 6.68% 12.46% 7.26% 11.65%
Net interest margin 3.61% 3.88% 3.70% 3.87%
Efficiency ratio 68.47% 63.14% 69.96% 65.18%
Asset Quality Ratios:
Net loan charge-offs to
average loans -0.07% 0.00% -0.23% -0.11%
Nonperforming loans to
period-end loans 0.98% 0.03% 0.98% 0.03%
Nonperforming assets to
total assets 0.84% 0.03% 0.84% 0.03%
Allowance for loan losses
to:
Nonperforming loans (x) 1.14 30.91 1.14 30.91
Period end loans 1.11% 1.06% 1.11% 1.06%
Other Data:
Average equity to average
assets 5.82% 6.21% 5.98% 6.22%
Total shareholder's equity
to assets 5.50% 6.19% 5.50% 6.19%
Number of offices:
Full service banking
offices 7 5 7 5
Loan production offices 1 1 1 1
Number of employees (FTEs) 102 89 102 89
SOURCE North State Bank
350.77 (3.70%)
