Sound Banking Company Reports Third Quarter 2007 Results

MOREHEAD CITY, N.C., Nov. 1  /PRNewswire-FirstCall/ -- Third quarter net income at Sound Banking Company (OTC:SNBN) (BULLETIN BOARD: SNBN)  was $166 thousand or $0.20 per share compared with $206 thousand or $0.26 per share for the third quarter of 2006.  Net income for the first nine months of 2007 was $577 thousand, or $0.69 per share compared with $660 thousand or $0.82 per share for the first nine months of 2006.  The 2006 per share amounts have been adjusted for the effect of the 20% stock dividend issued August 31, 2007.

Total assets as of September 30, 2007 were $114 million, a $13 million or 13% increase when compared to total assets of $101 million at September 30, 2006.  Deposits at September 30, 2007 were $100 million, an 11% increase when compared to deposits of $90 million at September 30, 2006.  Loans outstanding were $91 million at September 30, 2007, a 20% increase when compared to outstanding loans of $76 million reported as of the same date of 2006.

"Our third quarter performance was impacted by higher costs associated with the opening of our new full service branch in Beaufort," said Phil Collins, Sound Bank's President & CEO.  "We are investing in the future of Carteret County and believe our investment will pay off in the long term.  We are also pleased that our loan growth remains steady while we continue to maintain a high quality loan portfolio.  During the third quarter, we also declared and issued a 20% stock dividend to our shareholders."

Sound Banking Company is a state chartered bank and offers a full range of financial services.  Sound Bank, headquartered in Morehead City, operates full service offices in Morehead City, Beaufort and Cape Carteret and a loan production office in New Bern, North Carolina.  Information about Sound Banking Company and its products and services is available on its web site at: http://www.soundbanking.com/

The information as of and for the quarter ended September 30, 2007 as presented is unaudited.  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 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. 

DATASOURCE: Sound Banking Company



CONTACT:  Phil Collins for Sound Banking Company, [phone]



Web site:  http://www.soundbanking.com/ 

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