North State Bancorp Reports Year-End 2009 Earnings
Company reports profitability for the year.
RALEIGH, N.C., Feb. 2 /PRNewswire-FirstCall/ -- North State Bancorp (OTC Bulletin Board: NSBC the "Company"), the holding company for North State Bank, reported net income at year-end 2009 of $1.1 million, which is $1.3 million less than the $2.4 million reported at year-end 2008. Diluted earnings per share were $0.15 for 2009 compared to $0.32 for 2008.
Total assets for the Company as of December 31, 2009, were $679.4 million compared to $687.6 million as of December 31, 2008, a decrease of $8.2 million. Total deposits and total loans as of December 31, 2009, were $606.9 million and $521.8 million, respectively, compared to total deposits and total loans at December 31, 2008, of $612.7 million and $546.4 million, respectively. The reduction in total assets and total deposits is the result of the Company's efforts to reduce non-core fundings, specifically brokered deposits, which decreased $55.6 million during the year. Core deposits, which primarily includes demand deposit and money market accounts for our customers, increased by $41.4 million for the same period.
The decrease in net income for 2009 can be attributed to overall economic and marketplace conditions, payment of significantly higher premiums to the Federal Deposit Insurance Corporation (FDIC) throughout 2009, and a larger than normal addition to the provision for loan losses—as was deemed prudent as we work with customers who are struggling during this deep recession. Premium payments to the FDIC in 2009 were significantly higher than the in 2008, as healthy banks are being called upon to fund the FDIC at higher levels in order to replenish funds paid to depositors at failed banks. The provision for loan losses totaled $5.7 million for 2009, compared to $2.8 million for 2008, an increase of 107.3%.
"While 2009 was a difficult year in many ways, it was also a time to recommit to core competencies and to strengthen and renew relationships with our customers—especially those who need us now more than ever," Larry D. Barbour, president and CEO shared in remarks on the Company's financial results. "There are people who have continued to do well in spite of economic conditions and others who have struggled admirably to simply get by. It was a year of challenges for nearly everyone I know. While our results are not what we would want them to be, we were profitable for the year and that, in and of itself, shows the core strength of our Company and staff, our customer niches, and our market area.
"As a result of actions taken in 2009—a year we are calling a year of refinement—we know ourselves better and know our customers better. We understand our business on a different level and understand our customers' needs on a new level, too. We are weathering the storm and look forward to new challenges and successes in 2010 as we continue to seek good and profitable growth."
Founded in 2000, North State Bank is a full-service community bank, serving Wake and New Hanover Counties through seven full-service offices and one loan production office in Carteret County.
North State Bancorp is listed on the OTC electronic bulletin board under the symbol "NSBC." www.northstatebank.com
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 changes in real estate values and the real estate market, economic conditions, regulatory changes, changes in interest rates, substantial changes in financial markets, our ability to manage growth, loss of deposits and loan demand to other savings and financial institutions, and our limited operating history.. 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 Year Ended December 31, 2009 2008 ---- ---- (Dollars in thousands, except per share) Earnings Summary: Total interest income $33,440 $36,075 Total interest expense 11,846 15,817 ------ ------ Net interest income 21,594 20,258 Provision for loan losses 5,710 2,755 ----- ----- Net interest income after provision for loan losses 15,884 17,503 Noninterest income 534 1,226 Noninterest expense 14,503 14,809 ------ ------ Income before income taxes 1,915 3,920 Income taxes 817 1,555 --- ----- Net income $1,098 $2,365 ====== ====== Share and Per Share Data: Earnings per share - basic $0.15 $0.33 Earnings per share - diluted $0.15 $0.32 Book value per share $5.02 $4.96 Weighted average shares outstanding: Basic 7,179,744 7,158,545 Diluted 7,316,292 7,356,364 Financial Condition Period End: Cash, federal funds sold and due from banks $109,279 $88,272 Investment securities 24,148 37,156 Loans 521,809 546,357 Less allowance for loan losses 8,581 6,376 Other assets 32,774 22,172 ------ ------ Total assets $679,429 $687,581 ======== ======== Deposits $606,888 $612,678 Other borrowings 33,393 35,093 Other liabilities 2,982 4,264 Shareholders' equity 36,166 35,546 ------ ------ Total liabilities and shareholders' equity $679,429 $687,581 ======== ======== Financial Condition Average Balances: Cash, federal funds sold and due from banks $110,245 $32,237 Investment securities 26,475 29,777 Loans 541,576 520,075 Less allowance for loan losses 7,438 5,608 Other assets 25,050 18,051 ------ ------ Total assets $695,908 $594,532 ======== ======== Deposits $618,242 $512,855 Other borrowings 36,527 43,057 Other liabilities 4,165 4,094 Shareholders' equity 36,974 34,526 ------ ------ Total liabilities and shareholders' equity $695,908 $594,532 ======== ======== Performance Ratios: Return on average assets 0.16% 0.40% Return on average equity 2.97% 6.85% Net interest margin 3.22% 3.52% Efficiency ratio 65.54% 68.93% Asset Quality Ratios: Net loan charge-offs to average loans 0.65% 0.27% Nonperforming loans to period-end loans 3.61% 0.93% Nonperforming assets to total assets 3.26% 1.07% Ratio of allowance for loan losses to nonperforming loans 0.46 x 1.26 x Allowance for loan losses to period-end loans 1.64% 1.17% Other Data: Average equity to average assets 5.31% 5.81% Total shareholders' equity to assets 5.32% 5.17% Number of offices: Full service banking offices 7 7 Loan production offices 1 1 Number of employees (FTEs) 96 100
SOURCE North State Bancorp
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