8-K

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 5, 2016

SELECT BANCORP, INC.

(Exact Name of Registrant as Specified in Charter)

North Carolina	000-50400	20-0218264
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer 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 5, 2016, Select Bancorp, Inc. (the “Registrant”) announced financial results for the fourth quarter and year ended December 31, 2015. A copy of the press release (the “Press Release”) announcing the Registrant’s results, including a table of selected financial information, is furnished as Exhibit 99.1 hereto and incorporated by reference herein.

This 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 8.01. Other Events.

On February 9, 2016, the Registrant issued a press release announcing the anticipated closure of the Select Bank & Trust Company branch located at 3800 East 10th Street, Greenville, North Carolina, effective April 29, 2016. The bank will transfer customer accounts associated with the branch that is being closed to the nearby Select Bank branch located at 3600 Charles Boulevard, also in Greenville, North Carolina.

A copy of the press release is attached to this Current Report as Exhibit 99.2 and is incorporated into this Item 8.01 by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press release regarding the Registrant’s financial results for the quarter and year ended December 31, 2015.
99.2	Press release regarding closure of the Greenville branch located at 3800 East 10th Street.

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.

	SELECT BANCORP, INC.
Date:  February 9, 2016	By:	/s/ William L. Hedgepeth II
		William L. Hedgepeth II
		President and Chief Executive Officer

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press release regarding the Registrant’s financial results for the quarter and year ended December 31, 2015.
99.2	Press release regarding closure of the Greenville branch located at 3800 East 10th Street.

EX-99.1

Exhibit 99.1

  FOR RELEASE:   February 5, 2016

Mark A. Jeffries

Executive Vice President

Chief Financial Officer

Office: 910-892-7080 and Direct: 910-897-3603

markj@SelectBank.com

SelectBank.com

SELECT BANCORP REPORTS

FOURTH QUARTER AND YEAR-END 2015 EARNINGS

DUNN, NC . . . Select Bancorp, Inc. (the “Company” NASDAQ: SLCT), the holding company for Select Bank & Trust, today reported after-tax net income for the year ended December 31, 2015 of $6.6 million and basic and diluted earnings per share of $0.56, compared to $2.4 million and basic and diluted earnings per share of $0.26 for the year ended December 31, 2014.

For the fourth quarter of 2015, the Company reported net income of $1.6 million, and basic and diluted earnings per share of $0.14, compared to net income of $1.3 million and basic and diluted earnings per share of $0.11 for the fourth quarter of 2014.

Total assets, deposits, and total loans for the Company as of December 31, 2015 were $817.0 million, $651.2 million, and $617.4 million, respectively, compared to total assets of $766.1million, total deposits of $618.9 million, and total loans of $552.0 million as of the same date in 2014.

Year to date return on average assets through December 31, 2015 is 0.86% and year to date return on average equity is 6.42%, compared to 0.37% and 3.17%, respectively, for the twelve months ended December 31, 2014.

Non-performing loans decreased to $8.3 million at December 31, 2015 from $11.9 million at December 31, 2014. Non-performing loans equaled 1.34% of loans at December 31, 2015, decreasing from 2.15% of loans at December 31, 2014. Foreclosed real estate equaled $1.4 million at December 31, 2015, compared to $1.6 million at December 31, 2014. For the year, net charge-offs were $714,000, or 0.12%, of average loans, compared to net recoveries of ($139,000) or (0.03%) of average loans in 2014. At December 31, 2015, the allowance for loan losses was $7.0 million, or 1.14% of total loans, as compared to $6.8 million or 1.24% of total loans at December 31, 2014.

Commenting on 2015 results, William L. Hedgepeth II, President and CEO stated, “We are pleased that the Company reported net income of $6.6 million for the year. Our previously announced acquisition of two new branches, one in Morehead City and the other in Leland, became operational mid-December further expanding our market footprint. While growth is part of our strategic plan, our results for 2015 were impacted by one-time expenses related to our acquisition of the new branches. In addition, in order to achieve greater operating efficiencies, we combined the operations of our Burlington and Gibsonville Offices and closed our Ramsey Street Office in Fayetteville. The one-time cost associated with these initiatives totaled $657,000. These initiatives are intended to enable our branch network, and our Company, to enhance efficiency and customer convenience going forward.

Hedgepeth added, "We believe asset quality is strong and this remains a top priority at Select. As I have said many times: We will compete for loans based on interest rate, but we will not sacrifice credit quality. Our historical asset quality numbers reflect the prudence of this strategy. In addition to operating in markets with healthy economies, we will continue to seek prime locations for expansion and to identify and hire outstanding bankers and lenders in those markets. These people, like many of our current staff, are known in their markets and are astute, highly-skilled business people with exceptionally loyal client bases.”

When the FDIC released deposit market share data as of June 30, 2015, Select Bank held the number one position for deposit market share in Dunn, North Carolina where it is headquartered, a position the Company has maintained the past thirteen years. Additionally, in a report compiled by SNL Financial and published in the June 2015 edition of Business North Carolina ranking the 100 largest financial institutions headquartered in North Carolina, Select Bancorp ranked 32^nd. Select also ranked 4^th out of the 100 largest financial institutions with headquarters in the state for the fastest growing bank in assets, achieving a 45.45% change over the previous year; as a direct result of the merger between Select and New Century Bank in 2014.

Hedgepeth concluded his remarks by sharing, “Our staff takes a great deal of pride in these deposit market share results, and our rankings from various banking entities, particularly holding the number one position for thirteen straight years in Dunn, N.C. Our entire banking staff is commended for their individual efforts creating our excellent corporate results.”

Select Bank & Trust has branch offices in these North Carolina communities: Dunn, Burlington, Clinton, Elizabeth City, Fayetteville, Goldsboro, Greenville, Leland, Lillington, Lumberton, Morehead City, Raleigh and Washington.

The information as of and for the quarter ended December 31, 2015, 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.

Selected Financial Information and Other Data

($ in thousands, except per share data)

	At or for the three months ended															At or for the twelve months ended
	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014			December 31, 2013
Summary of Operations:
Total interest income	$	8,425		$	8,412		$	8,262		$	8,242		$	7,988		$	33,341		$	26,104		$	22,903
Total interest expense		890			878			835			939			1,141			3,542			4,519			5,258
Net interest income		7,535			7,534			7,427			7,303			6,847			29,799			21,585			17,645
Provision for (recovery of) loan losses		506			393			(139	)		130			177			890			(194	)		(325	)
Net interest income after provision		7,029			7,141			7,566			7,173			6,670			28,909			21,779			17,970
Noninterest income		916			572			941			863			836			3,292			2,675			2,629
Merger/Acquisition related expenses		240			103			35			-			217			378			1,941			-
Noninterest expense		5,497			5,467			5,518			5,370			5,345			21,852			18,719			15,855
Income before income taxes		2,208			2,143			2,954			2,666			1,944			9,971			3,794			4,744
Provision for income taxes		570			792			1,133			923			666			3,418			1,437			1,803
Net Income		1,638			1,351			1,821			1,743			1,278			6,553			2,357			2,941
Dividends on Preferred Stock		20			19			19			19			19			77			38			-
Net income available to common shareholders	$	1,618		$	1,332		$	1,802		$	1,724		$	1,259		$	6,476		$	2,319		$	2,941
Share and Per Share Data:
Earnings per share - basic	$	0.14		$	0.12		$	0.16		$	0.15		$	0.11		$	0.56		$	0.26		$	0.43
Earnings per share - diluted	$	0.14		$	0.12		$	0.16		$	0.15		$	0.11		$	0.56		$	0.26		$	0.43
Book value per share	$	8.38		$	8.28		$	8.17		$	8.07		$	7.91		$	8.38		$	8.59		$	8.09
Tangible book value per share	$	7.67		$	7.58		$	7.45		$	7.33		$	7.16		$	7.67		$	7.83		$	8.07
Ending shares outstanding		11,583,011			11,577,111			11,499,398			11,458,561			11,377,980			11,583,011			11,377,980			6,921,352
Weighted average shares outstanding:
Basic		11,580,745			11,521,043			11,481,137			11,426,378			11,375,803			11,502,800			8,870,114			6,918,814
Diluted		11,627,974			11,582,724			11,548,878			11,510,147			11,475,865			11,567,811			8,974,384			6,919,760
Selected Performance Ratios:
Return on average assets(2)		0.82	%		0.69	%		0.98	%		0.94	%		0.65	%		0.86	%		0.37	%		0.53	%
Return on average equity(2)		6.20	%		5.21	%		7.22	%		7.11	%		5.23	%		6.42	%		3.12	%		5.28	%
Net interest margin		4.18	%		4.34	%		4.46	%		4.30	%		3.87	%		4.38	%		3.88	%		3.46	%
Efficiency ratio (1)		65.05	%		67.44	%		65.94	%		65.76	%		69.57	%		66.04	%		77.16	%		78.20	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	617,398		$	597,969		$	573,729		$	558,923		$	552,038		$	617,398		$	552,038		$	346,500
Total Earning Assets		726,408			711,622			665,028			663,017			698,266			726,408			698,266			483,054
Goodwill		6,931			6,931			6,931			6,931			6,931			6,931			6,931			-
Core Deposit Intangible		1,241			1,196			1,320			1,470			1,625			1,241			1,625			182
Total Assets		817,015			786,495			742,443			748,371			766,121			817,015			766,121			525,646
Deposits		651,161			619,935			579,609			600,520			618,902			651,161			618,902			448,458
Short term debt		24,594			30,722			32,884			18,943			20,733			24,594			20,733			6,305
Long term debt		33,782			28,846			24,914			25,282			25,591			33,782			25,591			12,372
Shareholders' equity		104,702			103,545			101,552			100,076			97,685			104,702			97,685			56,004
Selected Average Balances:
Gross Loans	$	601,966		$	585,541		$	569,785		$	557,177		$	546,626		$	578,759		$	430,571		$	354,871
Total Earning Assets		714,755			689,166			669,586			672,655			702,818			686,663			565,264			511,597
Core Deposit Intangible		1,139			1,251			1,389			1,546			1,714			1,330			884			237
Total Assets		796,414			771,913			744,118			748,047			776,839			765,284			631,905			555,354
Deposits		631,855			607,722			588,328			600,601			632,633			607,214			523,954			470,526
Short term debt		35,303			35,012			28,212			19,298			19,790			32,316			9,957			13,879
Long term debt		20,872			22,631			22,895			25,444			25,818			20,147			20,494			12,372
Shareholders' equity		104,732			102,879			101,216			99,376			97,030			102,068			74,365			55,701
Asset Quality Ratios:
Nonperforming loans	$	8,280		$	10,899		$	11,702		$	13,473		$	11,876		$	8,280		$	11,876		$	15,856
Other real estate owned		1,401			1,007			1,030			1,187			1,585			1,401			1,585			2,008
Allowance for loan losses		7,021			7,032			6,842			6,919			6,844			7,021			6,844			7,054
Nonperforming loans (3) to period-end loans		1.34	%		1.82	%		2.04	%		2.41	%		2.15	%		1.34	%		2.15	%		4.58	%
Allowance for loan losses to period-end loans		1.14	%		1.18	%		1.19	%		1.24	%		1.24	%		1.14	%		1.24	%		2.04	%
Delinquency Ratio (4)		0.41	%		0.36	%		0.32	%		0.23	%		0.91	%		0.41	%		0.91	%		0.25	%
Net loan charge-offs (recoveries) to average loans		0.34	%		0.14	%		-0.01	%		0.04	%		-0.10	%		0.12	%		-0.03	%		0.15	%

(1)	Efficiency ratio is calculated as non-interest expenses divided by the sum of net interest income and non-interest income.
(2)	Annualized.
(3)	Nonperforming loans consist of non-accrual loans and restructured loans.
(4)	Delinquency Ratio includes loans 30-89 days past due and excludes non-accrual loans.

EX-99.2

Exhibit 99.2

  FOR RELEASE:   February 9, 2016

Dana Cochran

Vice President

Marketing Manager

Office: 910-892-7080 and Direct: 910-897-3642

danac@SelectBank.com

SelectBank.com

SELECT BANCORP ANNOUNCES PLANS FOR

CONSOLIDATION OF TWO GREENVILLE BRANCHES

DUNN, NC . . . Select Bancorp, Inc. (the “Company” NASDAQ: SLCT), the holding company for Select Bank & Trust, announced today it will close the 3800 East 10^th Street branch, one of two locations in Greenville, N.C. and all customer accounts will be transferred to the 3600 Charles Boulevard location.

“Making the decision to close a branch is never an easy one,” said William L. Hedgepeth II, president and chief executive officer of Select Bancorp, Inc. and Select Bank. “We carefully considered our customers’ needs while maximizing efficiencies and looking towards the future growth of the bank. Our branch network has nearly doubled since June of 2014. In addition to our recently expanded footprint, so our customers can reach us in more communities, Select Bank offers delivery systems that enable our customers to interact with us and take care of their banking needs without making daily visits to a branch.”

The 10^th Street location is only 3.6 miles from another Select Bank branch location. The closing of the branch, which is scheduled for Friday, April 29, 2016, is expected to result in cost savings for the bank. “We believe this decision underscores our commitment to increasing shareholder value, and we are confident in our ability to continue to serve our customers throughout our footprint,” Hedgepeth concluded.

Customers were previously notified by letter that all accounts will be transferred after closing on April 29 to the nearby branch at 3600 Charles Boulevard.

Hedgepeth added, “In today’s banking climate it is paramount that we operate as efficiently as possible. Because of the advances in technology through online banking, remote deposit capture, online bill pay and mobile banking, our customers can bank with us from anywhere at any time.”

“We will continue to work very hard to always provide the best service to our customers in the most efficient and cost-effective manner possible,” Hedgepeth said. “That’s what ‘common sense banking’ is all about.”

Select Bank has branch offices in these North Carolina communities: Dunn, Burlington, Clinton, Elizabeth City, Fayetteville, Goldsboro, Greenville, Leland, Lillington, Lumberton, Morehead City, Raleigh and Washington.

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, the closing of one of our Greenville branch locations, cost savings and expenses, transfer of customer accounts, and the growth of our banking franchise, as well as other measures of economic performance, 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, regulatory changes, changes in interest rates, and the loss of deposits and loan demand to other savings and financial institutions in connection with the branch closing. 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.

###