EXHIBIT 99.1
| FOR RELEASE: | May 12, 2014 |
| 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 | |
| NewCenturyBankNC.com |
NEW CENTURY BANCORP REPORTS
FIRST QUARTER 2014 EARNINGS
Positive earnings continue as culmination of acquisition of Select Bancorp, Inc. nears.
DUNN, NC . . . New Century Bancorp (the “Company” NASDAQ: NCBC), the holding company for New Century Bank, reported net income of $272,000 for the quarter ended March 31, 2014, and basic and diluted earnings per share of $0.04, compared to net income of $793,000 and basic and diluted earnings per share of $0.12 for the prior year quarter ended March 31, 2013. For first quarter 2014, the Company’s net income was impacted by expenses related to its impending acquisition of Greenville-based Select Bancorp, Inc.
Total assets, deposits, and loans for the Company as of March 31, 2014, were $520.3 million, $441.3 million, and $345.8 million, respectively.
On September 30, 2013, the Company announced that New Century Bancorp and Select Bancorp, Inc., the holding company for Select Bank & Trust Company, had signed a strategic merger agreement. Subject to the approval of federal and state regulatory agencies and shareholders of both companies, plans call for the merger to close in mid-2014. As of this writing, plans for the merger are in progress.
“It is a pleasure to start the year with positive earnings,” said William L. Hedgepeth II, president and CEO of New Century Bancorp. “The combined team of talented bankers at New Century Bank and Select Bank continues the important work of bringing our two banks together. Their focus is on customers and creating as seamless a transition for them as possible, and on our shareholders, by being both effective and efficient in their work. We look forward to sharing more about this in the weeks and months to come.
“Our annual shareholders meeting will be held later this month, on Tuesday, May 27 at 9:00 a.m. At that time, we will discuss our vision for the combined bank, as we position ourselves to more fully serve our current markets and extend our reach.”
New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, and Raleigh, and a loan production office in Greenville.
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The information as of and for the quarter and year ended March 31, 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.
| 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, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | March 31, 2012 | |||||||||||||||||||
| Summary of Operations: | ||||||||||||||||||||||||
| Total interest income | $ | 5,314 | $ | 5,456 | $ | 5,600 | $ | 5,968 | $ | 5,878 | $ | 6,619 | ||||||||||||
| Total interest expense | 1,111 | 1,186 | 1,299 | 1,355 | 1,418 | 1,772 | ||||||||||||||||||
| Net interest income | 4,203 | 4,270 | 4,301 | 4,613 | 4,460 | 4,847 | ||||||||||||||||||
| Provision (recovery) for loan losses | (49 | ) | 280 | (130 | ) | (375 | ) | (100 | ) | (2,136 | ) | |||||||||||||
| Net interest income after provision | 4,252 | 3,990 | 4,431 | 4,988 | 4,560 | 6,983 | ||||||||||||||||||
| Noninterest income | 624 | 632 | 623 | 755 | 619 | 626 | ||||||||||||||||||
| Noninterest expense | 4,289 | 3,838 | 3,912 | 3,756 | 3,921 | 4,216 | ||||||||||||||||||
| Merger-related expense | 162 | 427 | - | - | - | - | ||||||||||||||||||
| Income before income taxes | 425 | 357 | 1,142 | 1,987 | 1,258 | 3,393 | ||||||||||||||||||
| Provision for income taxes | 153 | 118 | 493 | 728 | 465 | 1,281 | ||||||||||||||||||
| Net income | $ | 272 | $ | 239 | $ | 649 | $ | 1,259 | $ | 793 | $ | 2,112 | ||||||||||||
| Share and Per Share Data: | ||||||||||||||||||||||||
| Earnings per share - basic | $ | 0.04 | $ | 0.04 | $ | 0.09 | $ | 0.18 | $ | 0.12 | $ | 0.31 | ||||||||||||
| Earnings per share - diluted | $ | 0.04 | $ | 0.04 | $ | 0.09 | $ | 0.18 | $ | 0.12 | $ | 0.31 | ||||||||||||
| Book value per share | $ | 8.17 | $ | 8.09 | $ | 8.09 | $ | 8.00 | $ | 7.93 | $ | 7.49 | ||||||||||||
| Tangible book value per share | $ | 8.14 | $ | 8.07 | $ | 8.06 | $ | 7.97 | $ | 7.89 | $ | 7.41 | ||||||||||||
| Ending shares outstanding | 6,921,742 | 6,921,352 | 6,921,352 | 6,921,352 | 6,916,506 | 6,913,636 | ||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 6,921,561 | 6,921,352 | 6,921,352 | 6,921,352 | 6,914,934 | 6,859,196 | ||||||||||||||||||
| Diluted | 6,924,164 | 6,924,339 | 6,924,142 | 6,922,942 | 6,916,011 | 6,859,196 | ||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||||
| Return on average assets | 0.21% | 0.18% | 0.47% | 0.91% | 0.56% | 1.45% | ||||||||||||||||||
| Return on average equity | 1.94% | 1.68% | 4.61% | 9.09% | 5.86% | 16.89% | ||||||||||||||||||
| Net interest margin | 3.60% | 3.41% | 3.41% | 3.61% | 3.37% | 3.64% | ||||||||||||||||||
| Efficiency ratio (1) | 88.85% | 78.29% | 79.45% | 69.97% | 77.20% | 77.03% | ||||||||||||||||||
| Period End Balance Sheet Data: | ||||||||||||||||||||||||
| Loans, held for sale | $ | - | $ | - | $ | - | $ | 406 | $ | 432 | $ | 1,552 | ||||||||||||
| Loans, net of unearned income | 345,827 | 346,500 | 349,087 | 355,651 | 360,431 | 399,760 | ||||||||||||||||||
| Total Earning Assets | 470,544 | 477,852 | 505,489 | 499,819 | 523,675 | 534,057 | ||||||||||||||||||
| Core Deposit Intangible | 153 | 182 | 211 | 240 | 269 | 516 | ||||||||||||||||||
| Total Assets | 520,276 | 525,646 | 545,018 | 550,008 | 567,517 | 580,996 | ||||||||||||||||||
| Deposits | 441,298 | 448,458 | 459,811 | 465,489 | 482,983 | 489,966 | ||||||||||||||||||
| Short term debt | 7,625 | 6,305 | 14,207 | 13,858 | 14,658 | 23,301 | ||||||||||||||||||
| Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | ||||||||||||||||||
| Shareholders' equity | 56,523 | 56,004 | 55,991 | 55,403 | 54,840 | 51,777 | ||||||||||||||||||
| Selected Average Balances: | ||||||||||||||||||||||||
| Gross Loans | $ | 346,968 | $ | 347,201 | $ | 347,142 | $ | 359,559 | $ | 365,871 | $ | 409,009 | ||||||||||||
| Total Earning Assets | 473,136 | 496,698 | 500,079 | 512,953 | 537,230 | 535,317 | ||||||||||||||||||
| Core Deposit Intangible | 167 | 193 | 223 | 252 | 283 | 533 | ||||||||||||||||||
| Total Assets | 520,746 | 538,616 | 548,460 | 557,298 | 577,092 | 585,249 | ||||||||||||||||||
| Deposits | 441,637 | 457,405 | 462,994 | 472,986 | 489,150 | 495,649 | ||||||||||||||||||
| Short term debt | 7,354 | 9,615 | 13,929 | 13,851 | 18,215 | 23,004 | ||||||||||||||||||
| Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 13,845 | ||||||||||||||||||
| Shareholders' equity | 56,780 | 56,456 | 55,911 | 55,529 | 54,890 | 50,300 | ||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||
| Nonperforming loans | $ | 14,605 | $ | 15,855 | $ | 17,400 | $ | 15,657 | $ | 11,180 | $ | 19,270 | ||||||||||||
| Other real estate owned | 1,233 | 2,008 | 2,164 | 2,370 | 2,340 | 2,391 | ||||||||||||||||||
| Allowance for loan losses | 7,025 | 7,054 | 6,858 | 7,218 | 7,775 | 9,568 | ||||||||||||||||||
| Nonperforming loans (2) to period-end loans (4) | 4.22% | 4.58% | 4.98% | 4.40% | 3.10% | 4.82% | ||||||||||||||||||
| Allowance for loan losses to period-end loans (4) | 2.03% | 2.04% | 1.96% | 2.03% | 2.16% | 2.39% | ||||||||||||||||||
| Delinquency Ratio (3) | 0.21% | 0.25% | 0.16% | 0.87% | 0.79% | 0.23% | ||||||||||||||||||
| Net loan charge-offs to average loans | -0.02% | 0.10% | 0.26% | 0.20% | 0.02% | -1.64% | ||||||||||||||||||
| (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 |