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North State profit takes a hit from FDIC fees

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The corporate parent of North State Bank posted a 23 percent lower profit in the second quarter because of higher FDIC payments.

The Raleigh-based bank announced this afternoon that it posted a second-quarter profit of $493,000, down from $643,000 a year ago.

Profit from operations actually was higher than a year ago, said CEO Larry Barbour, but was depressed by a big increase, or $527,000, in payments to the Federal Deposit Insurance Corp. The FDIC is charging higher insurance premiums and recently levied a a special assessment against all banks to shore up its insurance fund, which has been depleted by a wave of bank failures.

“I’m pleased that we can afford that and still be pretty dang profitable,” Barbour said.

The company also increased its provision for future loan losses by $228,000, or 34 percent.

North State had assets of $711.2 million as of June 30. It has seven branches in Wake and New Hanover Counties.


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Well pretty much all the

Well pretty much all the profit suffered a hit this year it seems. But this is because of the crisis we are sitting in at this moment. I definitely hope it will be fixed as soon as possible and this is exactly why I started this Clickbooth affiliate program.

We all took a few hits from

We all took a few hits from the government people so what were they expecting for? At Clickbooth company people are trying to end up this hits on different enterprises but it's really hard to be against all those criminals.

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About the blogger

Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or e-mail him.