EX-99.1 2 v431078_ex99-1.htm EXHIBIT 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 32nd. Select also ranked 4th 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.

 

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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.