Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,137	$ 1,024	$ 1,098
Provision for loan losses	6,749	8,095	5,710
Provision for foreclosed assets	1,384	1,148	697
Depreciation and amortization	889	927	914
Deferred income taxes	364	(987)	(213)
Net amortization (accretion) of premiums and discounts on investment securities	31	(13)
Impairment loss on nonmarketable securities			134
Originations of mortgage loans held for sale	(438,043)	(363,278)
Proceeds from sales of mortgage loans held for sale	439,868	312,634
Amortization of gain on termination of derivative instrument			(804)
Net realized gain on sale of investment securities available for sale	(374)	(741)	(464)
Gain on sale of equity interest in investment			(18)
Income from bank owned life insurance	(146)
Loss on sale of foreclosed assets	60	183	38
Stock based compensation	72	100	119
Changes in assets and liabilities:
(Increase) decrease in other assets	(756)	2,752	(6,656)
Decrease in accrued interest receivable	213	157	360
Decrease in accrued expenses and other liabilities	(304)	(208)	(763)
Decrease in accrued interest payable	(284)	(543)	(519)
Net cash provided (used) by operating activities	10,860	(38,750)	(367)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in certificates of deposit with banks	198	49,998	(28,354)
Proceeds from sales of investment securities available for sale	19,721	21,049	17,157
Proceeds from maturities and repayments of investment securities available for sale	10,069	17,107	6,491
Purchase of investment securities available for sale	(32,678)	(23,985)	(10,503)
Redemption (purchase) of Federal Home Loan Bank stock	200	2	(252)
Purchase of bank owned life insurance	(10,000)
Purchase of investment accounted for under the cost method		(500)
Net decrease (increase) in loans	(423)	6,862	18,667
Purchases of premises and equipment	(247)	(882)	(3,472)
Proceeds from sale of equity interest in investment			32
Proceeds from sales of foreclosed assets	3,784	5,996	782
Capital expenditures on foreclosed assets	(70)	(169)	(136)
Net cash provided (used) by investing activities	(9,446)	75,478	412
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in short term borrowings	(3,542)	(2,488)	(1,679)
Repayments on long-term borrowings	(23)	(21)	(21)
Net increase (decrease) in deposits	1,691	(44,140)	(5,790)
Excess tax benefits from exercise of stock options		60	9
Proceeds from exercise of stock options		611	89
Net cash used by financing activities	(1,874)	(45,978)	(7,392)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(460)	(9,250)	(7,347)
CASH AND CASH EQUIVALENTS, BEGINNING	49,833	59,083	66,430
CASH AND CASH EQUIVALENTS, ENDING	49,373	49,833	59,083
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	5,633	8,030	12,365
Income taxes paid	462	551	1,535
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Unrealized gain (loss) on investment securities available for sale, net of tax	278	(459)	(201)
Unrealized loss on hedging activities, net of tax			(494)
Transfer of loans to foreclosed assets	$ 2,713	$ 9,183	$ 2,376

NORTH STATE BANCORP 10-K