North State Bancorp Reports Record Growth in First Quarter 2008

Approaching its eighth anniversary, the Company reports strong asset, loan and
deposit growth.

RALEIGH, N.C., April 17 /PRNewswire-FirstCall/ -- In a year-to-year
comparison at March 31, 2008 over March 31, 2007, North State Bancorp
(OTC Bulletin Board: NSBC) (the "Company"), the holding company for North
State Bank, experienced record growth in key balance sheet components. As of
March 31, 2008, total assets had grown 19.2% to $571.5 million, total deposits
had grown 15.8% to $493.4 million, and total loans had grown an exceptional
37.0% to $500.7 million.
First quarter 2008 net income of $629,000 reflects a decrease of 11% when
compared to net income of $707,000 for first quarter 2007. The decrease
primarily can be attributed to additional expenses incurred in opening two new
full-service offices, as well as the decrease in the Bank's net interest
margin resulting from the Federal Reserve's numerous cuts to the federal funds
rate. Net income per diluted share was $0.09 for the quarter ended March 31,
2008 compared to $0.10 for the same period in 2007.
"Despite facing a challenging economic environment, we experienced the
best quarter in our history with regard to loan growth," said Larry D.
Barbour, the Company's president and CEO. "This is a credit to our commercial
bankers and their continued efforts to create strong relationships with
customers and prospective customers. They also have been keenly focused on
growing core deposits through these relationships -- as we all have -- and
those results are exceptional. February 2008 was the single largest month of
core deposit growth in our history. To hit these milestones in a market
downturn is very encouraging. We believe our goal of remaining strategic
about decision-making while staying focused on our unique strengths-not
turning to the left or right to follow what others are doing-is at the root of
this success.
"With our full-service offices in Wilmington and Downtown Raleigh now
open, we are starting to see the return on our investment in these key
markets. The future for both of the offices is bright and we are only just
beginning to enjoy the contribution we believe they will make to the Company's
growth and success. We continue to look for other markets where we feel we
have a competitive advantage and where we can add to the value of our Company
for the benefit of our shareholders."
Founded in 2000, North State Bank is a full-service community bank,
serving Wake and New Hanover Counties through seven full-service offices.
North State Bancorp is listed on the OTC electronic bulletin board under
the symbol "NSBC."
www.northstatebank.com
This news release contains forward-looking statements. The actual results
might differ materially from those projected in the forward-looking statements
for various reasons, including economic conditions, changes in interest rates,
substantial changes in financial markets, changes in real estate values and
the real estate market, our ability to manage growth, our limited operating
history, regulatory changes, and loss of deposits and loan demand to other
savings and financial institutions. 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.
SOURCE North State Bancorp

Kirk Whorf, Executive Vice President and Chief Financial Officer,
+1-919-645-2707, kwhorf@northstatebank.com, or Larry D. Barbour, President and
Chief Executive Officer, +1-919-787-9696, both of North State Bancorp