EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

 

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 10th 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 10th 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.

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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.