EX-99.1 2 v378403_ex99-1.htm EXHIBIT 99.1

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.

###

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