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): August 1, 2017
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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company | ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. | Results of Operations and Financial Condition. |
On August 1, 2017, Select Bancorp, Inc. (the “Registrant”) announced financial results for the second quarter ended June 30, 2017. A copy of the press release (the “Press Release”) announcing the Registrant’s results for the second quarter, 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 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit No. | Description | |
99.1 | Press release dated August 1, 2017, regarding the Registrant’s financial results for the second quarter ended June 30, 2017. |
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 expectations of market share growth, 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: August 1, 2017 | By: | /s/ Mark A. Jeffries | |
Mark A. Jeffries | |||
Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
EXHIBIT NO. | DESCRIPTION OF EXHIBIT |
99.1 | Press release dated August 1, 2017, regarding the Registrant’s financial results for the second quarter ended June 30, 2017. |
Exhibit 99.1
FOR RELEASE: |
August 1, 2017 |
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
SECOND QUARTER 2017 EARNINGS
DUNN, NC . . . Select Bancorp, Inc. (the “Company”) (NASDAQ: SLCT), the holding company for Select Bank & Trust, reported another solid quarter of growth and earnings comparing quarter over quarter results.
The Company’s total assets increased $26.9 million from $879.6 million at March 31, 2017 to $906.5 at June 30, 2017. The majority of the increase in assets was in The Company’s loan portfolio. The loan portfolio increased by $31.2 million from $706.8 million at March 31, 2017 to $738.0 million at June 30, 2017.
Deposits have increased $26.6 million from $713.1 million at March 31, 2017 to $739.7 million at June 30, 2017. The majority of the increase in deposits was in time deposits. The Company’s time deposits increased by $33.6 million from $328.1 million at March 31, 2017 to $361.7 million at June 30, 2017.
Deposits have increased by $60.0 million or 8.83% through the first six months of 2017. Loans have increased by $60.8 million or 8.98% through the first six months of 2017.
“The Company’s strong second quarter results reflect our ongoing commitment to deliver exceptional service to our customers and profitable growth to shareholders,” President and Chief Executive Officer William L. Hedgepeth II stated. “Our positive earnings equipped us to seek areas of growth and expansion for the bank and we are thrilled that we have received regulatory approval to open a branch in Wilmington, NC in the fall of this year. Our market share continues to grow in the Raleigh and the Wilmington areas, and we are pleased with the results in those areas to date.”
Net income for the quarter ended June 30, 2017 is $1.3 million and basic and diluted earnings per share of $0.11, compared to net income of $2.1 million and basic and diluted earnings per share of $0.18 for the quarter ended March 31, 2017.
For the three months ended June 30, 2017, return on average assets was 0.60% and return on average equity was 4.96%, compared to 1.00% and 8.10%, respectively, for the three months ended March 31, 2017.
Non-performing loans decreased to $6.2 million on June 30, 2017 from $8.0 million at March 31, 2017. Non-performing loans equaled 0.83% of loans at June 30, 2017, decreasing from 1.13% of loans at March 31, 2017. Foreclosed real estate equaled $2.7 million at June 30, 2017, compared to $883,000 at March 31, 2017. For the quarter, net charge-offs were $618,000, or 0.35% of average loans, compared to net charge offs of $195,000, or 0.12% of average loans for the quarter ended March 31, 2017.
Net interest margin was 4.18% for the quarter ending June 30, 2017, as compared to 4.14% for the quarter ending March 31, 2017.
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 June 30, 2017, 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 anticipated market share growth in markets such as Raleigh and Wilmington, NC, 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. Except as required by law, the Company assumes no obligation to update the forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
###
Select Bancorp, Inc. |
Selected Financial Information and Other Data |
($ in thousands, except per share data) |
At or for the three months ended (unaudited) | At or for the twelve months ended | |||||||||||||||||||||||||||||||
June
30, 2017 | March
31, 2017 | December
31, 2016 | September
30, 2016 | June
30, 2016 | December
31, 2016 | December
31, 2015 | December
31, 2014 | |||||||||||||||||||||||||
Summary of Operations: | ||||||||||||||||||||||||||||||||
Total interest income | $ | 9,469 | $ | 9,125 | $ | 8,877 | $ | 8,755 | $ | 8,645 | $ | 34,709 | $ | 33,341 | $ | 26,104 | ||||||||||||||||
Total interest expense | 1,197 | 1,047 | 985 | 909 | 912 | 3,733 | 3,542 | 4,519 | ||||||||||||||||||||||||
Net interest income | 8,272 | 8,078 | 7,892 | 7,846 | 7,733 | 30,976 | 29,799 | 21,585 | ||||||||||||||||||||||||
Provision for (recovery of) loan losses | 1,083 | (194 | ) | 669 | 337 | 158 | 1,516 | 890 | (194 | ) | ||||||||||||||||||||||
Net interest income after provision | 7,189 | 8,272 | 7,223 | 7,509 | 7,575 | 29,460 | 28,909 | 21,779 | ||||||||||||||||||||||||
Noninterest income | 778 | 730 | 740 | 785 | 831 | 3,222 | 3,292 | 2,675 | ||||||||||||||||||||||||
Merger/Acquisition related expenses | - | - | - | - | - | - | 378 | 1,941 | ||||||||||||||||||||||||
Noninterest expense | 5,980 | 5,805 | 5,511 | 5,631 | 5,519 | 22,281 | 21,852 | 18,719 | ||||||||||||||||||||||||
Income before income taxes | 1,987 | 3,197 | 2,452 | 2,663 | 2,887 | 10,401 | 9,971 | 3,794 | ||||||||||||||||||||||||
Provision for income taxes | 651 | 1,082 | 847 | 924 | 980 | 3,647 | 3,418 | 1,437 | ||||||||||||||||||||||||
Net Income | 1,336 | 2,115 | 1,605 | 1,739 | 1,907 | 6,754 | 6,553 | 2,357 | ||||||||||||||||||||||||
Dividends on Preferred Stock | - | - | - | - | - | 4 | 77 | 38 | ||||||||||||||||||||||||
Net income available to common shareholders | $ | 1,336 | $ | 2,115 | $ | 1,605 | $ | 1,739 | $ | 1,907 | $ | 6,750 | $ | 6,476 | $ | 2,319 | ||||||||||||||||
Share and Per Share Data: | ||||||||||||||||||||||||||||||||
Earnings per share - basic | $ | 0.11 | $ | 0.18 | $ | 0.14 | $ | 0.15 | $ | 0.16 | $ | 0.58 | $ | 0.56 | $ | 0.26 | ||||||||||||||||
Earnings per share - diluted | $ | 0.11 | $ | 0.18 | $ | 0.14 | $ | 0.15 | $ | 0.16 | $ | 0.58 | $ | 0.56 | $ | 0.26 | ||||||||||||||||
Book value per share | $ | 9.26 | $ | 9.14 | $ | 8.95 | $ | 8.87 | $ | 8.74 | $ | 8.95 | $ | 8.38 | $ | 8.59 | ||||||||||||||||
Tangible book value per share | $ | 8.61 | $ | 8.48 | $ | 8.29 | $ | 8.20 | $ | 8.05 | $ | 8.29 | $ | 7.67 | $ | 7.83 | ||||||||||||||||
Ending shares outstanding | 11,662,471 | 11,661,571 | 11,645,413 | 11,632,192 | 11,619,184 | 11,645,413 | 11,583,011 | 11,377,980 | ||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 11,662,117 | 11,652,612 | 11,636,647 | 11,627,270 | 11,594,995 | 11,610,705 | 11,502,800 | 8,870,114 | ||||||||||||||||||||||||
Diluted | 11,727,110 | 11,714,336 | 11,677,958 | 11,666,280 | 11,642,726 | 11,655,111 | 11,567,811 | 8,974,384 | ||||||||||||||||||||||||
Selected Performance Ratios: | ||||||||||||||||||||||||||||||||
Return on average assets(2) | 0.60 | % | 1.00 | % | 0.76 | % | 0.85 | % | 0.93 | % | 0.81 | % | 0.86 | % | 0.37 | % | ||||||||||||||||
Return on average equity(2) | 4.96 | % | 8.10 | % | 6.12 | % | 6.71 | % | 7.62 | % | 6.61 | % | 6.42 | % | 3.12 | % | ||||||||||||||||
Net interest margin | 4.18 | % | 4.14 | % | 3.98 | % | 4.27 | % | 4.24 | % | 4.06 | % | 4.38 | % | 3.88 | % | ||||||||||||||||
Efficiency ratio (1) | 66.08 | % | 65.91 | % | 63.84 | % | 65.24 | % | 64.44 | % | 65.15 | % | 66.04 | % | 77.16 | % | ||||||||||||||||
Period End Balance Sheet Data: | ||||||||||||||||||||||||||||||||
Gross Loans | $ | 738,021 | $ | 706,758 | $ | 677,195 | $ | 651,743 | $ | 632,619 | $ | 677,195 | $ | 617,398 | $ | 552,038 | ||||||||||||||||
Total interest earning assets | 816,008 | 809,164 | 770,288 | 746,349 | 749,956 | 770,288 | 726,408 | 698,266 | ||||||||||||||||||||||||
Goodwill | 6,931 | 6,931 | 6,931 | 6,931 | 6,931 | 6,931 | 6,931 | 6,931 | ||||||||||||||||||||||||
Core Deposit Intangible | 629 | 716 | 810 | 909 | 1,014 | 810 | 1,241 | 1,625 | ||||||||||||||||||||||||
Total Assets | 906,524 | 879,624 | 846,640 | 844,774 | 826,588 | 846,640 | 817,015 | 766,121 | ||||||||||||||||||||||||
Deposits | 739,653 | 713,138 | 679,661 | 677,121 | 661,274 | 679,661 | 651,161 | 618,902 | ||||||||||||||||||||||||
Short term debt | 33,559 | 33,306 | 37,090 | 38,175 | 37,883 | 37,090 | 29,673 | 20,733 | ||||||||||||||||||||||||
Long term debt | 22,839 | 22,939 | 22,039 | 22,372 | 20,772 | 23,039 | 28,703 | 25,591 | ||||||||||||||||||||||||
Shareholders' equity | 108,017 | 106,562 | 104,273 | 103,191 | 101,531 | 104,273 | 104,702 | 97,685 | ||||||||||||||||||||||||
Selected Average Balances: | ||||||||||||||||||||||||||||||||
Gross Loans | $ | 715,366 | $ | 686,800 | $ | 663,213 | $ | 641,531 | $ | 629,333 | $ | 639,412 | $ | 578,759 | $ | 430,571 | ||||||||||||||||
Total interest earning assets | 799,240 | 776,496 | 778,477 | 737,295 | 739,002 | 744,024 | 686,663 | 565,264 | ||||||||||||||||||||||||
Core Deposit Intangible | 673 | 764 | 862 | 965 | 1,072 | 1,020 | 1,330 | 884 | ||||||||||||||||||||||||
Total Assets | 887,412 | 856,712 | 844,162 | 818,284 | 822,036 | 829,315 | 765,284 | 631,905 | ||||||||||||||||||||||||
Deposits | 719,976 | 689,795 | 679,404 | 653,016 | 658,476 | 665,764 | 607,214 | 523,954 | ||||||||||||||||||||||||
Short term debt | 33,413 | 35,048 | 33,032 | 34,573 | 30,366 | 32,111 | 32,316 | 9,957 | ||||||||||||||||||||||||
Long term debt | 22,871 | 22,989 | 23,089 | 23,189 | 28,389 | 25,739 | 20,147 | 20,494 | ||||||||||||||||||||||||
Shareholders' equity | 108,071 | 105,860 | 104,404 | 103,026 | 100,664 | 102,110 | 102,068 | 74,365 | ||||||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 6,159 | $ | 7,956 | $ | 9,430 | $ | 7,565 | $ | 8,788 | $ | 9,430 | $ | 8,712 | $ | 11,876 | ||||||||||||||||
Other real estate owned | 2,702 | 883 | 599 | 548 | 716 | 599 | 1,401 | 1,585 | ||||||||||||||||||||||||
Allowance for loan losses | 8,488 | 8,022 | 8,411 | 7,889 | 7,692 | 8,411 | 7,021 | 6,844 | ||||||||||||||||||||||||
Nonperforming loans (3) to period-end loans | 0.83 | % | 1.13 | % | 1.39 | % | 1.16 | % | 1.39 | % | 1.39 | % | 1.41 | % | 2.15 | % | ||||||||||||||||
Allowance for loan losses to period-end loans | 1.15 | % | 1.14 | % | 1.24 | % | 1.21 | % | 1.22 | % | 1.24 | % | 1.14 | % | 1.24 | % | ||||||||||||||||
Delinquency Ratio (4) | 0.07 | % | 0.21 | % | 0.44 | % | 0.16 | % | 0.23 | % | 0.44 | % | 0.40 | % | 0.91 | % | ||||||||||||||||
Net loan charge-offs (recoveries) to average loans (2) | 0.35 | % | 0.12 | % | 0.08 | % | (0.01 | %) | 0.00 | % | 0.02 | % | 0.12 | % | (0.03 | %) |
(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. |
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