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Select Bancorp Reports Second Quarter 2014 Earnings Of The Former New Century Bancorp

Second quarter saw final merger preparation, a recovery on loan losses, and lower noninterest expenses.

DUNN, N.C., Aug. 1, 2014 /PRNewswire/ -- Select Bancorp, Inc. (the "Company" NASDAQ: SLCT) reports net income for New Century Bancorp for the quarter ended June 30, 2014, of $613,000 and basic and diluted earnings per share of $0.09. For the same quarter in 2013, net income for New Century Bancorp was $1.26 million, and basic and diluted earnings per share were $0.18. For the six-month period ended June 30, 2014, net income for New Century was $885,000 compared to $2.1 million for the prior year period. Basic and fully diluted earnings per share for the six-month period ended June 30, 2014, were $0.13 and for the same period in 2013 were $0.30.

On July 25, 2014, New Century Bancorp acquired Select Bancorp, Inc. and assumed the name, Select Bancorp, Inc. on that date. The financial data reported here is solely the financial information of the entity formerly known as New Century Bancorp. Commencing in the third quarter of 2014, combined financial information of the former New Century and Select entities will be reported upon the July 25, 2014 closing of the merger.

Earnings for both the second quarter and for the six-month period ended June 30, 2014, for New Century Bancorp were impacted by expenses related to its acquisition of the former Greenville-based Select Bancorp, Inc. Total assets, deposits, and loans for New Century Bancorp as of June 30, 2014, were $508.3 million, $428.7 million, and $333.9 million, respectively. 

After final approval by the shareholders of both companies and all federal and state regulatory agencies, the strategic merger, jointly announced on September 30, 2013, by New Century Bancorp and the former Greenville-based Select Bancorp, Inc. closed as of the close of business Friday, July 25, 2014.  

"These positive earnings represent the final results we will report for the former New Century Bancorp," said William L. Hedgepeth II, president and CEO of Select Bancorp, Inc. and Select Bank & Trust Company. "The decision was made early in the merger process to take the name Select Bancorp, Inc. for our holding company and Select Bank & Trust Company for our community bank franchise following the merger.

"Second quarter 2014 was primarily focused on the many decisions that had to be made to merge the two companies and the two banks. During the same time period, the Company benefited from a loan loss recovery and saw noninterest expenses trend down on a linked quarter basis.

"Now, in third quarter, we are moving forward as one community bank, ready to serve our customers, to gain new customer relationships, and to offer great service and common sense banking."

Select Bancorp, Inc., headquartered in Dunn, North Carolina, is the holding company for Select Bank & Trust Company, a state chartered commercial bank insured by the Federal Deposit Insurance Corporation (FDIC).   Select Bank & Trust Company has 14 branch offices in the following North Carolina communities: Burlington, Clinton, Dunn, Elizabeth City, Fayetteville (2), Gibsonville, Goldsboro, Greenville (2), Lillington, Lumberton, Raleigh and Washington. SelectBank.com.

The information as of and for the quarter and six months ended June 30, 2014, as presented is unaudited. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of our goals and expectations with respect to earnings, earnings per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "projects," "outlook" or similar expressions. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including, but not limited to, our ability to manage growth, 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. 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.

  

Select Bancorp, Inc. (formerly New Century Bancorp)

Selected Financial Information and Other Data

($ in thousands, except per share data)




             At or for the three months ended 


At or for the six months ended




















June 30, 2014


March 31, 2014


December 31, 2013


September 30, 2013


June 30, 2013


June 30, 2014


June 30, 2013


June 30, 2012

Summary of Operations:

















Total interest income

$          5,261


$             5,314


$                  5,456


$                    5,600


$          5,968


$        10,575


$        11,847


$        12,944


Total interest expense

1,098


1,111


1,186


1,299


1,355


2,209


2,773


3,457


Net interest income

4,163


4,203


4,270


4,301


4,613


8,366


9,074


9,487


Provision for (Recovery of) loan losses

(427)


(49)


280


(130)


(375)


(476)


(475)


(2,786)


Net interest income after provision

4,590


4,252


3,990


4,431


4,988


8,842


9,549


12,273


Noninterest income

565


624


632


623


755


1,189


1,373


1,826


Noninterest expense

3,917


4,289


3,838


3,912


3,756


8,206


7,678


8,865


Merger-related expense

237


162


427


-


-


399


-


-


   Income before income taxes

1,001


425


357


1,142


1,987


1,426


3,243


5,234


Provision for income taxes 

388


153


118


493


728


541


1,192


1,964


Net income

$             613


$               272


$                     239


$                      649


$          1,259


$             885


$          2,051


$          3,270


















Share and Per Share Data:

















Earnings per share - basic

$            0.09


$              0.04


$                    0.04


$                     0.09


$            0.18


$            0.13


$            0.30


$            0.47


Earnings per share - diluted

$            0.09


$              0.04


$                    0.04


$                     0.09


$            0.18


$            0.13


$            0.30


$            0.47


Book value per share

$            8.30


$              8.17


$                    8.09


$                     8.09


$            8.00


8.30


8.01


7.66


Tangible book value per share

$            8.29


$              8.14


$                    8.07


$                     8.06


$            7.97


8.29


7.98


7.61


Ending shares outstanding

6,931,168


6,921,742


6,921,352


6,921,352


6,921,352


6,931,168


6,916,233


6,913,636


Weighted average shares outstanding:

















   Basic

6,923,640


6,921,561


6,921,352


6,921,352


6,921,352


6,922,651


6,916,233


6,913,636


   Diluted

6,928,428


6,924,164


6,924,339


6,924,142


6,922,942


6,926,318


6,917,471


6,913,636


















Selected Performance Ratios:

















Return on average assets

0.48%


0.21%


0.18%


0.47%


0.91%


0.34%


0.73%


1.15%


Return on average equity

4.35%


1.94%


1.68%


4.61%


9.09%


3.13%


7.51%


12.76%


Net interest margin

3.62%


3.60%


3.41%


3.41%


3.61%


3.59%


3.49%


3.64%


Efficiency ratio (1)

82.85%


88.85%


78.29%


79.45%


69.97%


85.88%


73.50%


78.36%


















Period End Balance Sheet Data:

















Loans, held for sale

$                 -


$                    -


$                         -


$                           -


$             406


$                 -


$             406


$                 -


Loans, net of unearned income

333,868


345,827


346,500


349,087


355,651


333,868


355,245


390,403


Total earning assets

458,696


470,544


477,852


505,489


499,819


458,696


499,819


515,397


Core deposit intangible

124


153


182


211


240


124


240


356


Total assets

508,282


520,276


525,646


545,018


550,008


508,282


550,008


563,682


Deposits

428,734


441,298


448,458


459,811


465,489


428,734


465,489


471,184


Short term debt

7,179


7,625


6,305


14,207


13,858


7,179


13,858


22,953


Long term debt

12,372


12,372


12,372


12,372


12,372


12,372


12,372


12,372


Shareholders' equity

57,551


56,523


56,004


55,991


55,403


57,551


55,403


52,954


















Selected Average Balances:

















Gross loans

$       336,286


$         346,968


$               347,201


$                347,142


$       359,559


$       341,597


$       362,698


$       402,600


Total earning assets

465,901


473,136


496,698


500,079


512,953


469,498


525,024


524,732


Core deposit intangible

136


167


193


223


252


151


267


454


Total assets

514,539


520,746


538,616


548,460


557,298


517,384


567,141


574,232


Deposits

435,976


441,637


457,405


462,994


472,986


438,791


481,024


483,739


Short term debt

6,748


7,354


9,615


13,929


13,851


7,049


16,021


23,719


Long term debt

12,372


12,372


12,372


12,372


12,372


12,372


12,372


12,372


Shareholders' equity

57,158


56,780


56,456


55,911


55,529


56,970


55,211


51,541


















Asset Quality Ratios:

















Nonperforming loans

$        12,952


$           14,605


$                 15,855


$                  17,400


$        15,657


$        12,952


$        14,518


$        16,579


Other real estate owned

1,169


1,233


2,008


2,164


2,370


1,169


2,370


3,859


Allowance for loan losses 

6,447


7,025


7,054


6,858


7,218


6,447


7,218


8,510


Nonperforming loans (2)to period-end loans (4)

3.88%


4.22%


4.58%


4.98%


4.40%


3.88%


4.09%


4.25%


Allowance for loan losses to period-end loans (4)

1.93%


2.03%


2.04%


1.96%


2.03%


1.93%


2.03%


2.18%


Delinquency ratio (3)

0.15%


0.21%


0.25%


0.16%


0.87%


0.15%


0.87%


0.77%


Net loan charge-offs (recoveries) to average loans

0.18%


-0.02%


0.10%


0.26%


0.20%


0.08%


0.11%


0.63%




















































(1)

Efficiency ratio is calculated as non-interest expenses divided by the sum of net


interest income and non-interest income.

(2)

Nonperforming loans consist of non-accrual loans and restructured loans.

(3)

Delinquency Ratio includes 30-89 days past due and excludes non-accrual loans.

(4)

Excludes loans held for sale

 

SOURCE Select Bancorp, Inc.

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