EXHIBIT 99.1
| FOR RELEASE: | May 1, 2013 |
Lisa F. Campbell, Executive Vice President
Chief Financial Officer and Chief Operating Officer
Office: 910-892-7080 and Direct: 910-897-3660
lisac@newcenturybanknc.com
www.newcenturybanknc.com
NEW CENTURY BANCORP REPORTS
FIRST QUARTER 2013 EARNINGS
Company begins year on a strong note reporting first quarter net income of $794,000.
DUNN, NC . . . New Century Bancorp (the “Company” NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $794,000 for the quarter ended March 31, 2013, and basic and diluted earnings per share of $0.12, compared to net income of $2.1 million and basic and diluted earnings per share of $0.31 for the quarter ended March 31, 2012, when earnings were positively impacted by a substantial loan recovery.
Total assets for the Company as of March 31, 2013, were $567.5 million, total deposits were $483.0 million, and total loans were $360.4 million, compared to total assets of $581.0 million, total deposits of $490.0 million, and total loans of $399.8 million as of the same date in 2012. During the course of the year, loan demand remained soft in many business sectors and the decrease in total loans and total deposits in a year-to-year comparison reflects that.
Commenting on first quarter 2013 results, President and CEO William L. Hedgepeth II said, “We are pleased with these results from operations and with getting a positive start in 2013. On a linked quarter basis, our net interest margin shows slight improvement, and noninterest expenses were down in both a linked quarter and year-to-year comparison. Core earnings, results achieved from the day-to-day operations of New Century Bank, were strong and asset quality continues to improve.
“We’ve already made progress on many fronts this year, including updating our deposit products and services to more closely align them with customer expectations today. Many of our services are Internet-based, such as online banking, bill pay and cash management, allowing customers to bank at their convenience. We will continue to focus on offering great products and services to our customers in responsible ways.
Challenges remain, in our industry and in the economy, but we believe we now have the personnel and processes in place to address and overcome those challenges.”
New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, as well as loan production offices in Greenville and Raleigh.
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The information as of and for the quarter ended March 31, 2013, 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, 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 | ||||||||||||||||||||||||
| March 31,
2013 | December
31, 2012 | September
30, 2012 | June 30,
2012 | March 31,
2012 | March 31,
2011 | |||||||||||||||||||
| Summary of Operations: | ||||||||||||||||||||||||
| Total interest income | $ | 5,879 | $ | 5,990 | $ | 6,198 | $ | 6,325 | $ | 6,619 | $ | 7,915 | ||||||||||||
| Total interest expense | 1,418 | 1,552 | 1,623 | 1,684 | 1,772 | 2,240 | ||||||||||||||||||
| Net interest income | 4,461 | 4,438 | 4,575 | 4,641 | 4,847 | 5,675 | ||||||||||||||||||
| Provision for loan losses | (100 | ) | - | 189 | (649 | ) | (2,136 | ) | 1,164 | |||||||||||||||
| Net interest income after provision | 4,561 | 4,438 | 4,386 | 5,290 | 6,983 | 4,511 | ||||||||||||||||||
| Noninterest income | 619 | 1,015 | 757 | 1,199 | 626 | 641 | ||||||||||||||||||
| Noninterest expense | 3,921 | 4,201 | 4,170 | 4,648 | 4,216 | 5,079 | ||||||||||||||||||
| Income before income taxes | 1,258 | 1,252 | 973 | 1,841 | 3,393 | 73 | ||||||||||||||||||
| Provision for income taxes (benefit) | 464 | 517 | 341 | 683 | 1,281 | (48 | ) | |||||||||||||||||
| Net income | $ | 794 | $ | 735 | $ | 632 | $ | 1,158 | $ | 2,112 | $ | 121 | ||||||||||||
| Share and Per Share Data: | ||||||||||||||||||||||||
| Earnings per share - basic | $ | 0.12 | $ | 0.11 | $ | 0.09 | $ | 0.17 | $ | 0.31 | $ | 0.02 | ||||||||||||
| Earnings per share - diluted | $ | 0.12 | $ | 0.11 | $ | 0.09 | $ | 0.17 | $ | 0.31 | $ | 0.02 | ||||||||||||
| Book value per share | $ | 7.93 | $ | 7.84 | $ | 7.76 | $ | 7.66 | $ | 7.49 | $ | 7.20 | ||||||||||||
| Tangible book value per share | $ | 7.89 | $ | 7.79 | $ | 7.72 | $ | 7.61 | $ | 7.41 | $ | 7.10 | ||||||||||||
| Ending shares outstanding | 6,916,506 | 6,913,636 | 6,913,636 | 6,913,636 | 6,913,636 | 6,913,636 | ||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 6,914,934 | 6,913,636 | 6,913,636 | 6,913,636 | 6,859,196 | 6,913,636 | ||||||||||||||||||
| Diluted | 6,916,011 | 6,914,345 | 6,914,085 | 6,913,636 | 6,859,196 | 6,913,653 | ||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||||
| Return on average assets | 0.56% | 0.50% | 0.44% | 0.83% | 1.45% | 0.08% | ||||||||||||||||||
| Return on average equity | 5.87% | 5.37% | 4.69% | 8.82% | 16.89% | 0.97% | ||||||||||||||||||
| Net interest margin | 3.37% | 3.33% | 3.49% | 3.63% | 3.64% | 3.94% | ||||||||||||||||||
| Efficiency ratio (1) | 77.19% | 77.04% | 78.21% | 79.59% | 77.03% | 80.41% | ||||||||||||||||||
| Period End Balance Sheet Data: | ||||||||||||||||||||||||
| Loans, held for sale | $ | 432 | $ | - | $ | - | $ | - | $ | 1,552 | $ | - | ||||||||||||
| Loans, net of unearned income | 360,432 | 367,892 | 386,096 | 390,403 | 399,760 | 461,604 | ||||||||||||||||||
| Total Earning Assets | 523,675 | 543,674 | 525,962 | 515,397 | 534,057 | 581,942 | ||||||||||||||||||
| Core Deposit Intangible | 269 | 298 | 327 | 356 | 516 | 660 | ||||||||||||||||||
| Total Assets | 567,516 | 585,453 | 577,833 | 563,682 | 580,996 | 632,327 | ||||||||||||||||||
| Deposits | 482,983 | 498,559 | 481,320 | 471,184 | 489,966 | 542,271 | ||||||||||||||||||
| Short term debt | 14,658 | 17,848 | 26,195 | 22,953 | 23,301 | 23,295 | ||||||||||||||||||
| Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 14,372 | ||||||||||||||||||
| Shareholders' equity | 54,839 | 54,179 | 53,671 | 52,954 | 51,777 | 49,778 | ||||||||||||||||||
| Selected Average Balances: | ||||||||||||||||||||||||
| Gross Loans | $ | 365,871 | $ | 375,413 | $ | 386,217 | $ | 396,190 | $ | 409,009 | $ | 466,324 | ||||||||||||
| Total Earning Assets | 537,230 | 530,344 | 520,852 | # | 514,147 | 535,317 | 583,601 | |||||||||||||||||
| Core Deposit Intangible | 283 | 310 | 339 | 379 | 533 | 679 | ||||||||||||||||||
| Total Assets | 577,092 | 580,974 | 569,048 | 563,850 | 585,249 | 631,582 | ||||||||||||||||||
| Deposits | 489,150 | 485,844 | 474,069 | 471,829 | 495,649 | 539,751 | ||||||||||||||||||
| Short term debt | 18,215 | 23,961 | 24,609 | 22,961 | 23,004 | 22,125 | ||||||||||||||||||
| Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 13,845 | 16,372 | ||||||||||||||||||
| Shareholders' equity | 54,890 | 54,352 | 53,619 | 52,783 | 50,300 | 50,379 | ||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||
| Nonperforming loans | $ | 11,180 | $ | 12,030 | $ | 18,613 | $ | 16,579 | $ | 19,270 | $ | 15,206 | ||||||||||||
| Other real estate owned | 2,340 | 2,833 | 2,849 | 3,859 | 2,391 | 5,019 | ||||||||||||||||||
| Allowance for loan losses | 7,775 | 7,897 | 8,588 | 8,510 | 9,568 | 10,118 | ||||||||||||||||||
| Nonperforming loans (2) to period-end loans (4) | 3.10% | 3.27% | 4.82% | 4.25% | 4.82% | 3.29% | ||||||||||||||||||
| Allowance for loan losses to period-end loans (4) | 2.16% | 2.15% | 2.22% | 2.18% | 2.39% | 2.19% | ||||||||||||||||||
| Delinquency Ratio (3) | 0.79% | 0.32% | 0.47% | 0.77% | 0.23% | 0.59% | ||||||||||||||||||
| Net loan charge-offs to average loans | 0.02% | 0.73% | 0.11% | 0.41% | -1.64% | -0.57% | ||||||||||||||||||
| (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 |