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) July 23, 2010

NEW CENTURY BANCORP, INC.

(Exact name of registrant as specified in its 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 July 23, 2010, New Century Bancorp, Inc. (the “Registrant”) announced financial results for the second quarter ended June 30, 2010. For the second quarter of 2010, the Registrant reported net income of $1,075,000, compared to a net loss of $253,000 for the same period in 2009. Basic and diluted earnings (loss) per share for the second quarter of 2010 was $0.16, compared to $(0.04) for the second quarter of 2009. A copy of the press release (the “Press Release”) announcing the Registrant’s results for the second quarter ended June 30, 2010, including a table of selected financial information, is filed as Exhibit 99.1 hereto and incorporated by reference herein.

The 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 of Exhibit
99.1	Press Release dated July 23, 2010, regarding the Registrant’s results of operations for the second quarter ended June 30, 2010

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.

NEW CENTURY BANCORP, INC.
By:	/s/ Lisa F. Campbell
	Lisa F. Campbell
	Executive Vice President, Chief Financial Officer and Chief Operating Officer

Dated: July 26, 2010

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press Release dated July 23, 2010, regarding the Registrant’s results of operations for the second quarter ended June 30, 2010

EX-99.1

Exhibit 99.1

FOR RELEASE:	July 23, 2010
Lisa F. Campbell, Executive Vice President Chief Operating Officer and Chief Financial Officer (910) 892-7080; lisac@newcenturybanknc.com www.newcenturybanknc.com

NEW CENTURY BANCORP ANNOUNCES

SECOND QUARTER 2010 EARNINGS

• Net income tops $1.0 million for second quarter 2010.

• Assets, deposits, and loans all experienced positive growth in a year-to-year comparison.

• During the quarter, New Century celebrated its 10^th anniversary and kicked off a second decade of service to customers and communities.

DUNN, NC . . . New Century Bancorp (the “Company” - NASDAQ: NCBC), the holding company for New Century Bank, reported net income of $1,075,000 for the quarter ended June 30, 2010, compared to a net loss of $253,000 for the same period in 2009. For the six month period ended as of the same date, the Company reported net income of $1,531,000, compared to $155,000 for the same period in 2009. Basic and diluted earnings (loss) per share were $0.16 and ($0.04), respectively, for second quarter 2010 and second quarter 2009, and were $0.22 and $0.02, respectively, for the six month periods ended June 30, 2010, and June 30, 2009.

As of June 30, 2010, the Company held total assets of $663.0 million, total deposits of $566.0 million and total loans of $490.9 million. As of June 30, 2009, these figures stood at total assets of $629.0 million, total deposits of $527.6 million, and total loans of $467.9 million, for increases of 5.4%, 7.3%, and 4.9%, respectively, on a year-to-year basis.

“On behalf of the board of directors and all of our employees, I am pleased to share these quarterly and year-to-date results,” said William L. Hedgepeth II, president and chief executive officer. “While these results are extremely positive—and for that we are thankful—we remain cautiously optimistic for many reasons. We must continue to help our customers as they navigate a difficult economy and we must stay the course regarding our Company’s goals and the milestones we have before us.”

Highlights for the quarter include:

• Improvements in net income were seen in both a year-to-year comparison, and also on a linked quarter basis.

• Net interest margin remained strong at 4.04% for the first half of 2010, compared to 3.21% for the first half of 2009, due to both loan growth and lower cost of funds.

• Key balance sheet items – specifically assets, loans, and deposits – grew, while non-performing loans dropped to below 3% of total loans outstanding.

• Noninterest expenses were lower for the quarter, helping the Company to report its lowest efficiency ratio in more than a year.

Hedgepeth further shared, “Going forward, growth in noninterest income will be a challenge, as regulatory changes will impact all financial institutions, including community banks such as New Century. Overall, customers are still experiencing challenges from the recession and, because of that, we are too. Staying the course was what we said we needed to do to come out of this and that is both what we are doing and what we will do for the foreseeable future. It is encouraging to see positive results from our efforts and I commend our management team and staff for their hard work and resilience during tough times.

“During the second quarter we passed the milestone of our 10^th anniversary and celebrated accordingly, at the same time kicking off our ‘next decade’ commitment of helping our customers to power their plans. We know people had hopes, dreams, and plans prior to the recession . . . and they still do. We want to be the bank people turn to in order to make them happen.”

New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton, Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford, as well as a loan production office in Greenville, NC.

###

Keywords: New Century Bancorp, New Century Bank, NCBC, second quarter 2010 earnings

The information as of and for the quarter and six months ended June 30, 2010 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, our limited operating history, 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															At or for the six months ended
	June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009			June 30, 2009			June 30, 2010			June 30, 2009			June 30, 2008
Summary of Operations:
Total interest income	$	8,524		$	8,333		$	8,433		$	8,258		$	8,039		$	16,857		$	16,261		$	18,208
Total interest expense		2,434			2,446			2,821			3,170			3,459			4,879			7,133			9,339
Net interest income		6,090			5,887			5,612			5,088			4,580			11,978			9,128			8,869
Provision for loan losses		639			1,270			995			2,377			1,414			1,909			2,100			1,247
Net interest income after provision		5,451			4,617			4,617			2,711			3,166			10,069			7,028			7,622
Noninterest income		670			667			766			777			762			1,342			1,637			1,593
Goodwill Impairment		—			—			8,674			—			—			—			—			—
Noninterest expense		4,497			4,606			4,796			4,075			4,428			9,111			8,506			8,746
Income (loss) before income taxes		1,624			678			(8,087	)		(587	)		(500	)		2,300			159			469
Provision for income taxes (benefit)		549			221			141			(218	)		(247	)		769			4			155
Net income (loss)	$	1,075		$	457		$	(8,228	)	$	(369	)	$	(253	)	$	1,531		$	155		$	314
Share and Per Share Data:
Earnings (loss) per share - basic	$	0.16		$	0.07		$	(1.20	)	$	(0.05	)	$	(0.04	)	$	0.22		$	0.02		$	0.05
Earnings (loss) per share - diluted		0.16			0.07			(1.20	)		(0.05	)		(0.04	)		0.22			0.02			0.05
Book value per share		8.19			8.03			7.96			9.22			9.21			8.19			9.21			8.97
Tangible book value per share		8.08			7.91			7.83			7.82			7.80			8.08			7.80			7.54
Ending shares outstanding		6,891,784			6,837,952			6,837,952			6,837,742			6,836,149			6,891,784			6,836,149			6,822,659
Weighted average shares outstanding:
Basic		6,846,437			6,837,952			6,837,863			6,837,292			6,831,973			6,842,218			6,831,563			6,806,731
Diluted		6,862,095			6,845,714			6,837,863			6,837,292			6,831,973			6,851,055			6,842,137			6,870,808
Selected Performance Ratios:
Return on average assets		0.66	%		0.30	%		-5.09	%		-0.23	%		-0.16	%		0.48	%		0.05	%		0.11	%
Return on average equity		7.69	%		3.34	%		-51.24	%		-2.30	%		-1.60	%		5.53	%		0.49	%		1.01	%
Net interest margin		4.00	%		4.08	%		3.74	%		3.54	%		3.18	%		4.04	%		3.21	%		3.22	%
Efficiency ratio (1)		66.52	%		70.28	%		75.20	%		69.48	%		82.89	%		68.40	%		79.02	%		83.60	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	490,883		$	496,448		$	481,176		$	472,578		$	467,872		$	490,883		$	467,872		$	452,045
Total Earning Assets		619,867			602,436			588,536			591,973			573,951			619,867			573,951			550,984
Goodwill and other intangible assets		776			814			853			9,565			9,603			776			9,603			9,757
Total Assets		663,001			642,883			630,635			636,810			629,000			663,001			629,000			598,831
Deposits		566,031			542,348			540,262			533,350			527,621			566,031			527,621			505,400
Short term debt		26,138			27,744			20,564			25,693			23,461			26,138			23,461			17,441
Long term debt		12,372			12,372			12,372			12,372			12,372			12,372			12,372			12,372
Shareholders’ equity		56,442			54,934			54,409			63,013			62,947			56,442			62,947			61,201
Selected Average Balances:
Gross Loans	$	493,396		$	483,665		$	476,845		$	469,668		$	469,581		$	488,557		$	468,825		$	445,945
Total Earning Assets		610,290			585,277			595,250			570,059			577,774			597,852			574,018			552,689
Goodwill and other intangible assets		794			832			9,451			9,584			9,622			813			9,641			9,795
Total Assets		651,861			625,307			641,254			634,312			630,180			638,255			623,143			598,442
Deposits		553,067			531,115			538,643			532,427			526,894			542,152			520,025			503,456
Short term debt		26,736			23,547			23,498			23,020			24,606			25,151			24,533			17,853
Long term debt		12,372			12,372			12,372			12,372			12,372			12,372			12,372			12,372
Shareholders’ equity		56,093			55,533			63,710			63,588			63,615			55,814			63,518			62,273
Asset Quality Ratios:
Nonperforming loans	$	13,885		$	18,956		$	15,965		$	16,003		$	13,352		$	13,885		$	13,352		$	8,443
Other real estate owned		3,215			2,680			2,530			2,346			2,196			3,215			2,196			439
Allowance for loan losses		10,006			11,232			10,359			10,317			8,519			10,006			8,519			6,483
Nonperforming loans (2) to period-end loans		2.83	%		3.82	%		3.32	%		3.39	%		2.85	%		2.83	%		2.85	%		1.87	%
Allowance for loan losses to period-end loans		2.04	%		2.26	%		2.15	%		2.18	%		1.82	%		2.04	%		1.82	%		1.43	%
Delinquency Ratio (3)		0.75	%		0.45	%		0.41	%		1.61	%		0.51	%		0.75	%		0.51	%		0.92	%
Net loan charge-offs to average loans		1.39	%		0.05	%		0.79	%		0.49	%		0.59	%		0.73	%		1.05	%		1.38	%

(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.