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.