North State Bancorp reported net income of $514,000, or $0.07 per diluted share, in the first quarter of 2010. The bank earned $833,000, or $0.11 per diluted share, in the first quarter of 2009.
North State Bancorp attributed the decline in earnings to an increase in the loan loss provision, higher premiums from the Federal Deposit Insurance Corporation (FDIC) for the bank insurance fund and higher expenses due to foreclosed real estate.
Larry D. Barbour, the CEO of North State Bancorp, said, “We are pleased to report positive earnings in a difficult economy, one that has as much uncertainty as any I have experienced in my thirty-eight year banking career. Despite the economy, North State Bank remains committed to expanding relationships with current customers, as well as pursuing new customers who seek a mutually beneficial banking relationship.”
North State Bancorp reported a large increase in the percentage of non-performing assets to total assets on a year over year basis. The bank had 3.13% of its total assets classified as non-performing as of 3/31/2010, compared to 1.27% as of 3/31/2009.
North State Bancorp is a bank holding company that owns North State Bank, a community bank in North Carolina with seven branches in Wake and New Hanover Counties. The bank had total assets of $701 million as of 3/31/2010.