UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 15, 2013
NEW CENTURY BANCORP, INC.
(Exact name of registrant as specified in its charter)
North Carolina | 000-50400 | 20-0218264 |
(State or other jurisdiction | (Commission File Number) | (IRS Employer |
of incorporation) | Identification No.) |
700 W. Cumberland Street, Dunn, North Carolina | 28334 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (910) 892-7080
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On February 15, 2013, New Century Bancorp, Inc. (the “Registrant”), announced financial results for the fourth quarter and year ended December 31, 2012. A copy of the press release (the “Press Release”) announcing the Registrant’s results for the fourth quarter and year ended December 31, 2012, including a table of selected financial information, is filed as Exhibit 99.1 hereto and incorporated by reference herein.
The information contained in Item 2.02 of this Current Report shall not be deemed “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
EXHIBIT NO. | DESCRIPTION OF EXHIBIT | |
99.1 | Press release, dated February 15, 2013, regarding the Registrant’s financial results for the fourth quarter and year ended December 31, 2012 |
This Current Report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of Registrant’s goals and expectations with respect to earnings, income 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. These statements are based upon the current belief and expectations of Registrant’s management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Registrant’s control).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NEW CENTURY BANCORP, INC. | ||
By: | /s/ Lisa F. Campbell | |
Lisa F. Campbell Executive Vice President, Chief Financial Officer and Chief Operating Officer |
Dated: February 20, 2013
EXHIBIT INDEX
EXHIBIT NO. | DESCRIPTION OF EXHIBIT | |
99.1 | Press release, dated February 15, 2013, regarding the Registrant’s financial results for the fourth quarter and year ended December 31, 2012 |
EXHIBIT 99.1
FOR RELEASE: | February 15, 2013 |
Lisa F. Campbell, Executive Vice President
Chief Operating Officer and Chief Financial Officer
Office: (910) 892-7080 - Direct: 910-897-3660
lisac@newcenturybanknc.com
NewCenturyBankNC.com
NEW CENTURY BANCORP REPORTS
FOURTH QUARTER AND YEAR-END 2012 RESULTS
Positive year, fueled by both core earnings and non-recurring gains, is capped by strong fourth quarter earnings.
DUNN, NC . . . New Century Bancorp, Inc. (the “Company” NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $4.6 million for the year ended December 31, 2012, and basic and diluted earnings per share of $0.67. These results compare to a net loss of $163,000 and basic and diluted losses per share of $0.02 for the year ended December 31, 2011. For the quarter ended December 31, 2012, the Company reported net income of $735,000 and basic and diluted income per share of $0.11, compared to net income of $632,000 and basic and diluted income per share of $0.09 for fourth quarter 2011.
Net income for 2012 was positively impacted by two non-recurring events: a $2.4 million loan recovery in the first quarter and a $557,000 gain on the sale of New Century Bank’s Pembroke and Raeford branches in the second quarter.
In a year-to-year comparison, non-performing assets are down from $22.7 million to $14.9 million, resulting in overall improvement in asset quality. At year-end, the Company remains well-capitalized, which is the highest capital category based on regulatory guidelines.
Total assets for the Company as of December 31, 2012, were $588.2 million, total deposits were $498.6 million, and total loans were $367.9 million, compared to total assets of $589.7 million, total deposits of $501.4 million, and total loans of $417.6 million as of the same date in 2011. The decline in deposits and loans in a year-to-year comparison is due in part to the sale of the Pembroke and Raeford offices to Lumbee Guaranty Bank during second quarter 2012, and to a generally soft regional economy.
“On behalf of our board of directors and our staff,” said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank, “We are pleased with our results of operations in 2012. While overall results were positively impacted by non-recurring events, results from core operations were strong on their own.
“There are still challenges ahead for our bank and for the banking industry as a whole. The biggest challenge is continuing soft loan demand and a low interest rate environment that results in a tight net interest margin. In addition, the cost of complying with new legislation and the resultant regulatory requirements is steep. While the economy is showing signs of recovery, it is still struggling, and to a great extent remains a jobless recovery. Many of our customers—both personal and business—are working hard to gain financial ground lost over the past few years. Our role is to stand with them and do all we can to help.
-continued-
“In 2013, we will launch a number of strategic initiatives and will introduce several new products and services,” Hedgepeth continued. “We feel strongly about the markets we serve and our ability to meet their banking needs. We appreciate the support of our shareholders and our customers.”
New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, and loan production offices in Greenville and Raleigh.
###
The information as of and for the quarter and year ended December 31, 2012, as presented is unaudited. This news release may contain 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, 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. 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.
New Century Bancorp, Inc.
Selected Financial Information and Other Data
($ in thousands, except per share data)
At or for the three months ended | At or for the year ended | |||||||||||||||||||||||||||||||
December 31, 2012 | September 30, 2012 | June
30,
2012 | March 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||
Summary of Operations: | ||||||||||||||||||||||||||||||||
Total interest income | $ | 5,990 | $ | 6,198 | $ | 6,325 | $ | 6,619 | $ | 7,086 | $ | 25,132 | $ | 30,383 | $ | 33,610 | ||||||||||||||||
Total interest expense | 1,552 | 1,623 | 1,684 | 1,772 | 1,903 | 6,632 | 8,425 | 9,680 | ||||||||||||||||||||||||
Net interest income | 4,438 | 4,575 | 4,641 | 4,847 | 5,183 | 18,500 | 21,958 | 23,930 | ||||||||||||||||||||||||
Provision for loan losses | - | 189 | (649 | ) | (2,136 | ) | 319 | (2,597 | ) | 6,218 | 15,634 | |||||||||||||||||||||
Net interest income after provision | 4,438 | 4,386 | 5,290 | 6,983 | 4,864 | 21,097 | 15,740 | 8,296 | ||||||||||||||||||||||||
Noninterest income | 1,015 | 757 | 1,199 | 626 | 642 | 3,598 | 2,817 | 2,678 | ||||||||||||||||||||||||
Noninterest expense | 4,201 | 4,170 | 4,648 | 4,216 | 4,574 | 17,236 | 19,105 | 19,213 | ||||||||||||||||||||||||
Income (loss) before income taxes | 1,252 | 973 | 1,841 | 3,393 | 932 | 7,459 | (548 | ) | (8,239 | ) | ||||||||||||||||||||||
Provision for income taxes (benefit) | 517 | 341 | 683 | 1,281 | 333 | 2,822 | (385 | ) | (3,284 | ) | ||||||||||||||||||||||
Net income (loss) | $ | 735 | $ | 632 | $ | 1,158 | $ | 2,112 | $ | 599 | $ | 4,637 | $ | (163 | ) | $ | (4,955 | ) | ||||||||||||||
Share and Per Share Data: | ||||||||||||||||||||||||||||||||
Earnings (loss) per share - basic | $ | 0.11 | $ | 0.09 | $ | 0.17 | $ | 0.31 | $ | 0.09 | $ | 0.67 | $ | (0.02 | ) | $ | (0.72 | ) | ||||||||||||||
Earnings (loss) per share - diluted | $ | 0.11 | $ | 0.09 | $ | 0.17 | $ | 0.31 | $ | 0.03 | $ | 0.67 | $ | (0.02 | ) | $ | (0.72 | ) | ||||||||||||||
Book value per share | 7.84 | 7.76 | 7.66 | 7.49 | 7.22 | 7.84 | 7.22 | 7.19 | ||||||||||||||||||||||||
Tangible book value per share | 7.79 | 7.72 | 7.61 | 7.41 | 7.14 | 7.79 | 7.14 | 7.09 | ||||||||||||||||||||||||
Ending shares outstanding | 6,913,636 | 6,913,636 | 6,913,636 | 6,913,636 | 6,860,367 | 6,913,636 | 6,860,367 | 6,913,636 | ||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 6,913,636 | 6,913,636 | 6,913,636 | 6,859,196 | 6,860,367 | 6,898,147 | 6,887,168 | 6,875,845 | ||||||||||||||||||||||||
Diluted | 6,914,345 | 6,914,085 | 6,913,636 | 6,859,196 | 6,860,367 | 6,898,377 | 6,887,168 | 6,875,845 | ||||||||||||||||||||||||
Selected Performance Ratios: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.50 | % | 0.44 | % | 0.83 | % | 1.45 | % | 0.39 | % | 0.81 | % | -0.03 | % | -0.77 | % | ||||||||||||||||
Return on average equity | 5.37 | % | 4.69 | % | 8.82 | % | 16.89 | % | 4.80 | % | 8.79 | % | -0.33 | % | -9.05 | % | ||||||||||||||||
Net interest margin | 3.29 | % | 3.51 | % | 3.63 | % | 3.64 | % | 3.68 | % | 3.48 | % | 3.91 | % | 4.03 | % | ||||||||||||||||
Efficiency ratio(1) | 77.04 | % | 78.21 | % | 79.59 | % | 77.03 | % | 78.52 | % | 78.00 | % | 77.10 | % | 72.71 | % | ||||||||||||||||
Period End Balance Sheet Data: | ||||||||||||||||||||||||||||||||
Loans, held for sale | $ | - | $ | - | $ | - | $ | 1,552 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Loans, net of unearned income | 367,892 | 386,096 | 390,403 | 399,760 | 417,624 | 367,892 | 417,624 | 470,484 | ||||||||||||||||||||||||
Total Earning Assets | 549,493 | 514,767 | 515,397 | 534,057 | 536,390 | 549,493 | 536,390 | 580,169 | ||||||||||||||||||||||||
Core Deposit Intangible | 298 | 327 | 356 | 516 | 545 | 298 | 545 | 699 | ||||||||||||||||||||||||
Total Assets | 588,237 | 577,833 | 563,682 | 580,996 | 589,651 | 588,237 | 589,651 | 626,896 | ||||||||||||||||||||||||
Deposits | 498,559 | 481,320 | 471,184 | 489,966 | 501,377 | 498,559 | 501,377 | 534,599 | ||||||||||||||||||||||||
Short term debt | 17,848 | 26,195 | 22,953 | 23,301 | 21,877 | 17,848 | 21,877 | 23,666 | ||||||||||||||||||||||||
Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 14,372 | 12,372 | 14,372 | 16,372 | ||||||||||||||||||||||||
Shareholders' equity | 54,179 | 53,671 | 52,954 | 51,777 | 49,546 | 54,179 | 49,546 | 49,692 | ||||||||||||||||||||||||
Selected Average Balances: | ||||||||||||||||||||||||||||||||
Gross Loans | $ | 375,413 | $ | 386,217 | $ | 396,190 | $ | 409,009 | $ | 429,642 | $ | 391,648 | $ | 451,358 | $ | 484,647 | ||||||||||||||||
Total Earning Assets | 536,428 | 518,761 | 514,147 | 535,317 | 559,110 | 532,193 | 565,867 | 599,152 | ||||||||||||||||||||||||
Core Deposit Intangible | 310 | 339 | 379 | 533 | 569 | 389 | 621 | 775 | ||||||||||||||||||||||||
Total Assets | 581,005 | 569,048 | 563,850 | 585,249 | 608,118 | 574,624 | 624,015 | 644,904 | ||||||||||||||||||||||||
Deposits | 485,844 | 474,069 | 471,829 | 495,649 | 518,508 | 481,837 | 533,000 | 548,768 | ||||||||||||||||||||||||
Short term debt | 23,961 | 24,609 | 22,961 | 23,004 | 23,476 | 24,003 | 21,924 | 23,146 | ||||||||||||||||||||||||
Long term debt | 12,372 | 12,372 | 12,372 | 13,845 | 14,372 | 12,372 | 16,372 | 16,372 | ||||||||||||||||||||||||
Shareholders' equity | 54,352 | 53,619 | 52,783 | 50,300 | 49,486 | 52,769 | 50,094 | 54,750 | ||||||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 12,030 | $ | 18,613 | $ | 16,579 | $ | 19,270 | $ | 19,636 | $ | 12,030 | $ | 19,636 | $ | 12,250 | ||||||||||||||||
Other real estate owned | 2,833 | 2,849 | 3,859 | 2,391 | 3,031 | 2,833 | 3,031 | 3,655 | ||||||||||||||||||||||||
Allowance for loan losses | 7,897 | 8,588 | 8,510 | 9,568 | 10,034 | 7,897 | 10,034 | 10,015 | ||||||||||||||||||||||||
Nonperforming loans(2) to period-end loans | 3.27 | % | 4.82 | % | 4.25 | % | 4.82 | % | 4.70 | % | 3.27 | % | 4.70 | % | 2.60 | % | ||||||||||||||||
Allowance for loan losses to period-end loans | 2.15 | % | 2.22 | % | 2.18 | % | 2.39 | % | 2.40 | % | 2.15 | % | 2.40 | % | 2.13 | % | ||||||||||||||||
Delinquency Ratio(3) | 0.32 | % | 0.47 | % | 0.77 | % | 0.23 | % | 1.02 | % | 0.32 | % | 1.02 | % | 0.45 | % | ||||||||||||||||
Net loan charge-offs to average loans | -0.85 | % | -0.42 | % | -0.42 | % | -1.64 | % | 0.68 | % | -0.12 | % | 1.37 | % | 3.30 | % |
(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. |