Welcome


We are so pleased to present our redesigned website. The site offers helpful information about our bank and our products and services, as well as some new areas and features. Our goal is to meet all our customers' banking needs in a progressive manner – considering their business needs today and those which will result from future growth. Our website is not the only way we reach out to our customers technologically. We also offer DepositScan, a way to make deposits right from your office or home; and soon, mobile banking, so you can do your banking from your mobile phone; as well as e-statements – where you receive your banking statements electronically.
 
I am pleased once again to provide our financial results. We experienced record growth in key areas in the first quarter of 2008, despite a challenging economic environment. During the quarter ending March 31, 2008, total assets grew 19.2% to $571.5 million, total deposits grew 15.8% to $493.4 million, and total loans grew an exceptional 37.0% to $500.7 million.  First quarter 2008 net income of $629,000 reflects a decrease of 11% when compared to net income of $707,000 for first quarter 2007. Additional expenses incurred in opening two new full-service offices, as well as the decrease in the Bank’s net interest margin resulting from the Federal Reserve’s numerous cuts to the federal funds rate contributed largely to the decline in net income.  Net income per diluted share was $0.09 for the quarter ended March 31, 2008 compared to $0.10 for the same period in 2007. Overall, I’m very pleased and thankful for these first quarter operating results.
 
I credit our commercial bankers’ continued efforts to create and sustain strong relationships with customers and prospective customers for our excellent loan growth. More importantly, they also have been keenly focused on growing core deposits through these relationships—as we all have—and those results are exceptional, too.  February 2008 was the single largest month of core deposit growth in our history.  To hit these milestones in a market downturn is very encouraging.  We believe our goal of remaining strategic about decision-making while staying focused on our unique strengths—not turning to the left or right to follow what others are doing—is at the root of this success.
 
With our full-service offices in Wilmington and Downtown Raleigh now open, we are starting to see the return on our investment in these key markets.  The future for both of the offices is bright, and we are only just beginning to enjoy the contribution we believe they will make to the Company’s growth and success.  We continue to look for other markets where we feel we have a competitive advantage and where we can increase value for all of our stakeholders.
 
We danced the night away at Summer Salute 2008, held May 31, 2008, at the North Ridge Country Club. In the last five years, NSB’s Summer Salute has raised nearly $500,000 for Hospice of Wake County. We look forward to announcing the amount raised this year that will go to help such a worthy cause and organization.
 
Thank you for your interest in North State Bank. If you would like to know more about how we can help you reach your financial needs, please call one of our staff members at an office convenient to you.

Very cordially,

Larry D. Barbour
President and Chief Executive Officer