North State Bank's Statement of Vision

By 2005, it is our goal to be an independent full-service community bank holding company with at least $300 million of assets, without diluting existing shareholders to reach this goal by funding our growth internally with strong earnings and with non-dilutive debt or trust preferred securities. We may be as large as $500 million if an attractive and appropriate acquisition opportunity arises.

Included in this goal is having a dominant community-banking share of the deposit market in Wake County, with strong representation in the Triangle area. We will be known as the “Bank of Choice” for professional, medical and accounting firms as well as property management companies and some small- to medium-sized businesses. Our customers will appreciate the convenience of a small, but effective network of full-service branch locations along with cutting edge e-banking capabilities. New offices will be established with a “footprint” similar to our original locations, and the number of such locations will be driven by our need for generating core deposits and serving our best customers and our community at large, as well as our ability to attract the best market executives in the primary service areas.

We will serve our customers through highly qualified and motivated banking professionals, and be the “Employer of Choice” among local community banks. Our team of employees will continue to adhere to our Core Corporate Values:

• Integrity – Always being worthy of the trust placed in us.
• Hard Work – Being responsible, committed and passionate about our work.
• Fairness – Always striving to do what is right for our shareholders, customers and fellow employees.
• Teamwork – Forsaking selfish ambition for the common good.
• Consistency – Staying focused on who we are and what we do best.
We will provide this team of employees with a rigorous, but not ruthless, work environment. Leadership will be leveraged with excellent management systems and processes, resulting in a lean, efficient organization.

Our success will be manifested through a Return on Average Assets in the range of 1.00% to 1.10% and Returns on Average Equity of 10% to 13%.