In fact, according to Dan J. Sanders, CEO of United Supermakets in Texas, “Culture is the wellspring of sustained success.”  When a company’s values, beliefs, and modes of behavior create and model a clear and compelling energy, then a company experiences sound growth, profitability, and much appreciated corporate citizenry. 

 

To again quote CEO Sanders, “Our team members at United recognize personal relationships are their business – the fact that they sell bananas, bread, and milk is seen as incidental.” 

 

This is how we operate North State Bank.  Personal relationships are indeed our business, whereas loans, deposits, and other services are only components of those relationships to which we strive daily to bring unique value.

 

Our envisioned future is about more than surviving, but rather thriving.  This way we can have and leverage a strong culture through the daily work of passionate, committed, and capable people.

 

For the quarter ended June 30, 2008, North State Bancorp (the “Company”), the holding company for North State Bank, reported net income of $643,000 compared to net income of $846,000 for second quarter 2007.  For the six months ended as of June 30, 2008, the Company reported net income of $1.27 million compared to net income of $1.55 million for the year-ago period as of the same date.  Earnings are still under intense pressure from lower rates imposed by the Federal Reserve, expenses related to our growth, and the increased, but required loan loss reserves related to our loan growth over the last year.

 

Total assets for the company as of June 30, 2008, were $632.2 million compared to total assets of $504.7 million at June 30, 2007.  Total deposits and total loans at June 30, 2008 were $530.4 million and $534.6 million, respectively, compared to total deposits and total loans at June 30, 2007 of $452.4 million and $387.2 million, respectively.

 

I am pleased about our plans for the future at all of our offices, including our newest office in Morehead City, opened in June under the leadership of Andrew Wheeler, Vice President.  Andrew is actively and effectively telling our story in the Carteret County area, which will enable us to operate a full service office there as soon as possible.

 

We continue to appreciate all of the advocacy and support we receive from our customers, shareholders, and friends.