NS Newsletter02.05
Transcription
NS Newsletter02.05
REPORT FOR NORTH STATE BANCORP SHAREHOLDERS | SUMMER 2006 MESSAGE FROM THE PRESIDENT I am pleased to share information about our performance at North State Bank as we continue to make significant progress in becoming a high-performing bank that creates value for our shareholders, as is evident from our second quarter results. For the quarter ended June 30, 2006, North State Bancorp (the “Company”), the holding company for North State Bank, reported net income of $751,000 or $0.24 per diluted share, compared to $599,000 or $0.19 per diluted share for second quarter 2005, an increase of 25.4%. For the six months ended as of the same date, the Company reported net income of $1.4 million, compared to net income of $1.0 million as of June 30, 2005, an increase of 40%. Earnings per diluted share for the six months ended June 30 for 2006 and 2005 were, respectively, $0.46 and $0.34. Total deposits for the Company at June 30, 2006, were $374.8 million and total loans were $321.0 million, compared to total deposits of $313.8 million and total loans of $260.8 million for second quarter 2005, increases of 19.4% and 23.1%, respectively. Total assets for North State Bancorp as of June 30, 2006, were $423.2 million, compared to $350.5 million at June 30, 2005, an increase of 20.7%. These numbers are a positive reflection of our progress at North State. Other recent developments include: • Opening a loan production office in Wilmington. The office is located at 1908 Eastwood Road, Suite 321, in Lumina Station. I recently visited with Phil Whittingon, our market executive, and his assistant, Sandy Coniglio, and they reported prospects are looking good. We appreciate our advisory board members who have agreed to be part of helping to bring relationship banking to the Wilmington area. • Opening our full-service Wake Forest office mid-August. Our loan production office there has been open since September 2003. Expanding into the full-service facility will increase our ability to meet the banking needs of this growing area. • Announcing our move into downtown Raleigh. Downtown Raleigh has experienced a resurgence, and we anticipate that it will continue to be a hub of activity. We recently announced our agreement to lease 3,700 square feet on the 12th floor of the Capital Club building at the corner of Martin and Salisbury Streets. This area is a vital one to attorneys, one of the key niche markets we serve, and we plan to acquire new banking relationships with many of the firms in that area. • Netting $140,000 for Hospice of Wake County at Summer Salute, bringing the three-year total to $355,000. We presented Hospice with the donation in July and thanked them for all they contribute to our community. Thanks also go to all of you who made this year’s event such a success. • Expanding our staff in two important areas. Adding Bill Wiley as senior vice president and Chief Risk Officer/Internal Auditor, and JoAnn Bratton as assistant vice president and Accounting Manager. Both have extensive experience and will be tremendous assets to our bank. Our operating results so far this year are impressive, and we believe there is more to look forward to as we continue to plan for the future. It is hard to believe that it was only a short six years ago on June 1 that we first opened for business. Thank you to those who have contributed to the growth of this bank. If you know people who are not banking with us and would enjoy a relationship with a bank like North State, please encourage them to come and talk with us. Very cordially, Larry D. Barbour President and CEO "Our operating results so far this year are impressive, and we believe there is more to look forward to as we continue to plan for the future." BUILDING RELATIONSHIPS IN WILMINGTON the opportunity to move back to Wilmington came up, he jumped at the chance, and so far it’s been like a homecoming. Joining him in his efforts is his assistant, Sandy Coniglio. Sandy has been in the banking industry in Wilmington for more than 20 years. According to Phil, “A lot of the names and faces have remained the same, but the area has also grown a whole lot, traffic is heavier –– the market is really strong. It’s exciting to be back and to be able to do business as a community banker. It’s all about forming and maintaining relationships, and I’m excited to be able to do that here.” (l to r) Larry Barbour, president and CEO; Phil Whittington, senior vice president and Wilmington market executive; and Sandy Coniglio, assistant to the market executive. Wilmington, North Carolina, is a dynamic market. Recently conducted research showed New Hanover County has 246 attorneys, 491 physicians, 108 dentists, 83 accountants, 225 churches, and 26 property management companies. With a loan production office at Lumina Station near the waterway, and a staff with a combined total of 40 years experience in the Wilmington market, we are poised to experience tremendous growth. “I just can’t stop smiling,” laughed Phillip “Phil” T. Whittington, senior vice president and Wilmington market executive. “Coming back to this area and knowing the potential for what we can accomplish is amazing.” Whittington has named five advisory board members so far: Mike Stonestreet, president of Century 21/Sweyer/CAMS, a property management firm; Mike Head, president of CEPCO, also a property management firm; Alan Toll, attorney and partner with Stevens, McGhee, Morgan, Lennon and Toll, LLP; Lionel Yow, attorney and partner with Yow Fox & Mannen; and Dr. Kenneth White of Wilmington Plastic Surgery Specialists. “A good part of our success will come from the support of our advisory board. I am looking forward to working with each of these leaders who have agreed to offer their time, experience, and insight.” We are quietly becoming the place to bank in Wake County . . . and Wilmington. A long-time resident of Wilmington, Phil spent more than 14 years there while working in the banking industry as a personal banker, branch manager, and commercial lender. He has been in Raleigh with North State Bank for the past three years, but when A NEW LOOK We have a new logo! After much thought, we decided to recreate our logo in order to have it reflect our strong feelings toward the state we serve. We kept some of the same elements from our first logo but accomplished our goal by adding a touch of longleaf pine, the state tree of North Carolina. We unveiled the new logo at our annual meeting to much applause, and since then have been transitioning all of our stationery and marketing materials to reflect the new look. Our logo redesign will soon be followed by an update and redesign of our website: www.northstatebank.com. Along with the update, we will add new, convenient features for our customers and website visitors. Plans call for the new site to be up and running by this fall. We’ll include more about it in the next newsletter. S E C O N D Q UA R T E R R E P O R T 2 0 0 6 GETTING TO KNOW… WILLIAM “BILL” H. WILEY “Risk management is everyone’s responsibility.” That is the belief of Bill Wiley, North State’s senior vice president and Chief Risk Officer/Internal Auditor. “I really want to work with all the employees so they see that risk management is not just the responsibility of the chief risk officer. From a teller who makes a conscious effort to lock up the teller drawer before leaving the window to the CFO who buys investments each week –– we all deal with risks every day, and we need to think proactively.” Bill is a Certified Bank Auditor with more than 20 years of experience in internal bank auditing. He is enjoying the challenges of his role. According to Bill, “There are three distinct, but related, aspects to my position. First is risk management, which includes helping the bank with strategic planning and advising on forward-thinking practices as it relates to new or changing risks we face. Second is the auditing component, where I evaluate our key processes to ensure our internal controls are effective––what works and what needs improvement. Third is the regulatory component, where my goal is to help ensure that we comply with applicable laws and regulations and respond appropriately when they change. Each area is important to our success, and they correlate nicely so that I am often working in more than one aspect at any particular moment. I enjoy what I am doing and look forward to helping the bank achieve its objectives through sound, profitable growth.” Born in Georgia, Bill grew up in a military family, moving all around before settling in Cary, NC as a senior in high school. He remained in the area and graduated from North Carolina State University. He has served on the Bedford Family YMCA Board of Directors, the Triangle Chapter of the Institute of Internal Auditors, and the United Way. He and his wife, Ruth, reside in Raleigh. They have three grown children and two grandchildren. SUMMARY BALANCE SHEET As of June 30, 2006 (in thousands) ASSETS Cash, due from banks Interest earning deposits with banks Federal funds sold Investment securities available for sale at fair value Loans less allowance ($4,162) Other assets Total assets $ 14,824 1,092 37,111 42,061 316,833 11,245 $ 423,166 LIABILITIES AND SHAREHOLDERS’ EQUITY Demand deposits $ 117,429 Interest-bearing deposits 257,379 Total deposits 374,808 Other borrowings 22,237 Other liabilities 3,004 Total liabilities $ 400,049 SHAREHOLDERS’ EQUITY Total shareholders’ equity Total liabilities and shareholders’ equity $ 23,117 $ 423,166 SUMMARY STATEMENT OF INCOME AND EXPENSE For the quarter and six months ended June 30, 2006 (in thousands except for per share data ) Quarter $ 6,353 2,701 3,652 223 Year-to-date Interest income Interest expense Net interest income Provision for loan losses Net interest income after provision for loan losses Noninterest income Noninterest expenses Net income before income taxes Income tax expense Net income 3,429 295 2,527 1,197 446 $ 751 $ 6,764 580 5,049 2,295 853 1,442 Earnings per diluted share $ $ 0.46 0.24 $ 12,218 5,078 7,140 376 SIGNIFICANT RATIOS For the quarter ended June 30, 2006 Return on average assets Return on average equity Efficiency ratio Nonperforming loans Ratio of allowance for loan losses to nonperforming and nonaccrual loans Allowance for loan losses to loans 0.78% 13.33% 64.02% $14,000 297.3x 1.30% The information as of and for the quarter and six months ended June 30, 2006, as presented is unaudited. This newsletter contains forward-looking statements. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including our ability to manage growth, our limited operating history, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other savings and financial institutions, and changes in real estate values and the real estate market. 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. PRSRT STD US Postage PAID Raleigh, NC Permit No. 2214 P.O. Box 18367 Raleigh, NC 27619 Please call Kirk Whorf at 919-645-2707 or email him at [email protected] to update your mailing address. SEE THE VIDEO ON OUR WEBSITE! At this year’s annual meeting we premiered our Leading the Way video. The video focuses on the aspects of business we do best, stated from the perspective of our customers. Hear firsthand how we are leading the way in relationship banking. Visit our website at www.northstatebank.com and click on the “Watch our video” link on the left. North State Bank / Raleigh 919-787-9696 NSB AND NCSU www.northstatebank.com In Memory of Our Friend This fall, we are taking advantage of opportunities to support North Carolina State University, Raleigh’s hometown university, while spreading the word about North State Bank. The E. Carroll Joyner Visitor Center and Advancement Services Building (on campus facing Western Boulevard) is slated to open this September. To benefit NC State University and to honor Carroll Joyner, a long-time North State Bank customer and supporter, we’re proud to donate funds to purchase furnishings for the Visitor Center’s boardroom. For supporting the Visitor Center, North State Bank will be recognized on a plaque to be displayed in the rotunda of the building. You can also see some familiar faces if you purchase a football program at Wolfpack games this fall. Look for our “North State Bank Backs the Pack” ad featuring bank employees who are alumni. Go Pack! Kit Boney 1936-2006 On July 28, North State Bank lost a dear friend. Katherine “Kit” Boney will always be remembered for her love for others and her leadership in this community. Kit was a strong advocate for Hospice of Wake County and played a major part in the success of North State Bank's Summer Salute for Hospice of Wake County. Her life was an inspiration to many and her memory will live on here at North State Bank. SUMMER KICKED OFF WITH A PARTY FOR HOSPICE! The North State Bank Summer Salute for Hospice of Wake County raised $140,000 this year, bringing the three-year total to $355,000. “Those who plan this event, those who sponsor it, those who attend, and those who contribute bring such a passion for Hospice of Wake County,” commented Larry Barbour, president and CEO for North State Bank. “So many have been impacted by the people and the services at Hospice of Wake County, and we feel blessed to have them as part of our community. We look forward to many more years of hosting Summer Salute and supporting such a great organization.” Summer Salute was held at North Ridge Country Club on Saturday, June 3rd. Party-goers danced to The Embers, strolled on the boardwalk, and had commemorative photos taken while enjoying the kick-off to summer. Contributions were raised through sponsorships, ticket sales, a raffle, an auction, and donations. Messages in a Bottle were also purchased by those who wished to honor someone touched by hospice care. Hospice will use the money raised to fund their indigent care programs and the Reflections Program for Children. Take a look at the photos to see how much fun everyone had this year! Pictured (l to r): Dr. William Dunlap, founder of Hospice of Wake County and member of Hospice Board of Directors; Steve Salisbury, Senior Vice President of North State Bank and Summer Salute committee co-chair; John Thoma, CEO of Hospice of Wake County; The Honoroable Jeanette Hyde, former U.S. Ambassador to Barbados and Summer Salute committee co-chair; and Larry Barbour, President and CEO of North State Bank. THANK YOU TO OUR SPONSORS! $15,000 DIAMOND CIRCLE North State Bank $5,000 GOLD CIRCLE Barton Development Group Caddell Communications* Professional Property Management (PPM) Red Star Oil Co. Sonscape Communications, Inc.* Wakefield Hotels, LLC / Hema & Nick Shah/ Gail & Hal Perry Wake Nephrology Associates, P.A. $2,500 SILVER CIRCLE A.E. Finley Foundation, Inc. Agri-Supply Co. Mr. & Mrs. Max Barbour Charleston Management Corporation Custom Brick Company, Inc. 1st American Builders HRW, Inc. Jeanette & Wallace Hyde Kane Realty Corporation Dr. & Mrs. Leland Garrett, Jr. Metro Magazine* St. Lawrence Homes, Inc. Steel Dynamics, Inc. Jean & Jay Street Wyrick, Robbins, Yates & Ponton, LLP Young Moore & Henderson, P.A. $1,500 BRONZE CIRCLE Marlene & Sam Adams / Marlene Adams RE, LLC ADS Printing* Baker Roofing Company Marsha & Forrest Ball Martha & Rolly Bannister Diane, Larry & Leslie Barbour Bill Kennedy/Leo Daughtry* Ann & Bob Denlinger Engineered Construction Co. Jolly's Jewelers* Lynda & Johnny McConnell Raleigh Medical Group Stancil & Company Judy & Tom Stephenson Tingen Construction $500 SUNSHINE CIRCLE AA&D Transportation, Inc. John D. Adams, CPA Air-Glide Heating & Cooling Ammons Pittman GMAC Realtors James P. Baker, Jr. in Memory of Barbara Reynolds Baker Mark Black Wade Brantley Aaron Lindeen C. Delaine Bradsher / Bradsher & Bunn Mel Broughton III CityScape Builders Mary Lynne Courtney Barbara & Scott Doolittle Duty Tire, Inc. Dr. David Fajgenbaum RS Fincher & Co., LLC Prudy & Ron Frederick Garner Family Practice John P. Goodson Debra & Kenneth Goetze Ice Occasions of North Carolina* Jerry Smith Builders, Inc. Jones Insurance Agency Jordan Law Offices, P.A. K.L. Mobley Equipment Jim Massengill Stephen F. Kenney Logan Trading Company* Mid-Atlantic Securities Nova Development Corporation Pediatric Urology of North Carolina Brigadier General (Retired) Gary H. Pendleton & Laura Pendleton PipeLine Utilities Susan & Charles Rouse Rural Plumbing & Heating Shackleton CPA & Consulting, P.A. Senator & Mrs. Fred Smith SunDial Homes, LLC Lisa & Charles Tew Tri-Arc Food Thomas Judy & Tucker, P.A. Triangle Auto Sales Dr. & Mrs. George Venters York Properties, Inc. Thomas Judy & Tucker, PA * In-Kind Donation To get involved with Summer Salute 2007 as a sponsor or volunteer, or to attend, contact Prudy Frederick at North State (919-645-2726; [email protected]). THANK YOU TO THE PLANNING COMMITTEE! 2006 COMMITTEE CO-CHAIRS The Honorable Jeanette Hyde, Former U.S. Ambassador and Member of the North State Bancorp Board of Directors Mr. Steve Salisbury, Senior Vice President and Raleigh City Executive for North State Bank 2006 COMMITTEE MEMBERS Marsha Ball Leslie Barbour Kit Boney Hannah Broughton Sloane Browning Susan Caddell Laura Carter Michele Castillo Alec Donaldson William Dunlap, MD Rick Dupree Donna Emory Prudy Frederick Jeanette Hagwood Jeanette Hyde K Keener Beth Millwood Gail Perry Judy Stephenson Robin Temple Sandra Temple Paige Watkins Virginia Watson Andrew Wheeler Tecca Wright Save the date for Summer Salute 2007 Saturday, June 2nd at North Ridge Country Club