Bleeding off profits

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FDIC nicks North State profit

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

The Raleigh bank posted a profit of $493,000, versus $643,000 a year ago.

Profits from operations actually were higher than a year ago, said CEO Larry Barbour, but profits were depressed by a 627 percent increase, or $527,000, in payments to the Federal Deposit Insurance Corp. The FDIC is charging higher insurance premiums and recently levied a special assessment against all banks to shore up its insurance fund, which has been depleted by a wave of bank failures.

Health insurers end 2009 with profitable quarters

The five largest publicly traded health insurers all head into 2010 with lingering concerns about enrollment and profit margin pressures. But they wrapped up 2009 with profitable quarters. Here are their results for the fourth quarter:

- UnitedHealth Group Inc.: Profit of $944 million, or 81 cents per share, on revenue of $21.78 billion

- WellPoint Inc.: Profit of $2.74 billion, or $5.95 per share, on revenue of $19.05 billion

Health insurance profits actually not so fat

Quick quiz: What do these enterprises have in common? Farm and construction machinery, Tupperware, the railroads, Hershey sweets, Yum food brands and Yahoo?

Answer: They're all more profitable than the health insurance industry.

In the health-care debate, Democrats and their allies have gone after insurance companies as rapacious profiteers making "immoral" and "obscene" returns while "the bodies pile up."

Gymboree Jan. key sales figure dips, lifts outlook

Gymboree Corp. said Thursday that a key sales figure slipped 2 percent in its fiscal fourth quarter, but the children's apparel retailer lifted its quarterly profit outlook for the second time in less than a month as its net sales improved.

Gymboree now anticipates fourth-quarter profit of $1.08 to $1.10 per share, up from a prior forecast of $1.03 to $1.06 per share.

Analysts surveyed by Thomson Reuters, whose estimates usually remove one-time items, expect a smaller profit of $1.06 per share.

Mission-driven

I was shocked and saddened to read the headline and article in The N&O about excessive compensation paid to non-profit CEOs. At worst, this issue seems limited to a very small minority of organizations. The N.C. Center for Non-Profits or the United Way of the Greater Triangle would indicate that the majority of non-profits pay far less to their leaders than the few excessive cases you mention in the article. Most of us are in our jobs because we are passionate about our mission, not for personal gain.

The timing of your article was most unfortunate. This is the season when non-profits depend on year-end gifts to help cover a large part of their budgets. After they read your article, I'm afraid people will think their money will be going to line pockets instead of feeding the hungry, sheltering the homeless, assisting the sick and, in general, helping people in need. Most non-profits are mission-driven, not profit-driven. And the few that are profit-driven need to be investigated. However, they are clearly