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): November 4, 2011

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 November 4, 2011, New Century Bancorp, Inc. (the “Registrant”) announced financial results for the third quarter ended September 30, 2011. A copy of the press release (the “Press Release”) announcing the Registrant’s results for the third quarter ended September 30, 2011, 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 November 4, 2011, regarding the Registrant’s financial results for the third quarter

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: November 9, 2011

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press release, dated November 4, 2011, regarding the Registrant’s financial results for the third quarter

EX-99.1

Exhibit 99.1

FOR RELEASE: November 4, 2011        

Lisa F. Campbell, Executive Vice President

Chief Operating Officer and Chief Financial Officer

Office: (910) 892-7080; Direct: 910-897-3660;

lisac@newcenturybanknc.com

www.newcenturybanknc.com

NEW CENTURY BANCORP REPORTS

THIRD QUARTER 2011 RESULTS

Key indicators remain strong; Company keeps intense focus on addressing internal and industry challenges.

DUNN, NC . . . New Century Bancorp (the “Company” NASDAQ: NCBC), the holding company for New Century Bank, today reported financial results for third quarter 2011. For the quarter ended September 30, 2011, the Company reported a net loss of $22,000, and for the nine-month period ended as of the same date, the Company reported a net loss of $762,000. By comparison, for the third quarter of 2010, the Company reported a net loss of $6.6 million, and a net loss of $5.1 million for the nine-month period ended September 30, 2010. Basic and diluted per share results for third quarter 2011 were ($0.00), and basic and diluted per share losses for third quarter 2010 were ($0.96). For the nine-month period ended September 30, 2011, basic and diluted losses per share were ($0.11) and for the same period in 2010, basic and diluted losses per share were ($0.74).

Total assets for the Company at September 30, 2011, were $616.6 million, total deposits were $527.2 million, and total loans were $439.4 million, compared to total assets of $643.2 million, total deposits of $548.9 million, and total loans of $467.9 million as of the same date in 2010.

“While we still have a lot to do, progress is being made,” shared William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank, “These continue to be challenging times for New Century Bank and for the banking industry as a whole. A great deal of time and effort have been put into addressing any issues we have and into understanding and addressing new and ever-changing regulatory issues as well as other industry challenges. While we have struggled, we did not take taxpayer money, choosing instead to work diligently to manage our Company on our own.

“We reported a comparatively small loss for third quarter, in spite of having added nearly $2.2 million to our provision for loan losses. While this is a challenge for New Century Bank, it is no less of one for customers who find themselves, often through no fault of their own, in a situation where they simply can no longer meet their obligations. Loans were made and accepted in good faith, but an unrelenting recession with no real recovery in sight, continues after nearly four years. We are smaller than we were at this time last year; however, our current size is the result of purposeful decisions and an intense focus on managing our balance sheet.”

Key indicators for the quarter include:

• According to recently released FDIC data, New Century Bank maintained the number one position with regard to deposit marketshare in the Company’s headquarters city of Dunn, NC, a position it has held for 9 straight years.

• The Company’s efficiency ratio is improved on a linked-quarter basis as well as in a same quarter comparison between 2011 and 2010. Standing at 67.03% for the quarter ended September 30, 2011, 82.18% for the quarter ended June 30, 2011, and at 71.51% for the quarter ended September 30, 2010.

• Non-interest expense is down on a linked-quarter basis as well as in a same quarter comparison between 2011 and 2010. For third quarter 2011, non-interest expense was $4.1 million, compared to $5.3 million for second quarter 2011 and $4.7 million for third quarter 2010.

• Even though net interest margin is down slightly on a quarter-to-quarter basis and when compared to net interest margin for third quarter 2010, it remained strong at 3.77% for third quarter 2011.

The past several months saw key leaders assume roles with New Century Bank and with the Company. In August, Celia DeBiase was named to New Century Bank’s executive management team as its first chief risk officer and in October, General Dan McNeill, U.S. Army (Retired), was appointed to the New Century Bancorp Board of Directors.

“We are already benefiting from the expertise and guidance of these two professionals,” Hedgepeth said. “They will serve our shareholders well.”

###

New Century Bancorp (NASDAQ: NCBC), the holding company for New Century Bank and is headquartered in Dunn and has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, Pembroke, Raeford, and a loan production office in Greenville.

The information as of and for the quarter and nine-months ended September 30, 2011 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 nine months ended
	September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			September 30, 2011			September 30, 2010			September 30, 2009
Summary of Operations:
Total interest income	$	7,584		$	7,798		$	7,915		$	8,327		$	8,428		$	23,297		$	25,285		$	24,483
Total interest expense		2,089			2,193			2,240			2,361			2,439			6,522			7,318			10,302
Net interest income		5,495			5,605			5,675			5,966			5,989			16,775			17,967			14,181
Provision for loan losses		2,194			2,542			1,164			1,267			12,457			5,900			14,366			4,477
Net interest income after provision		3,301			3,063			4,511			4,699			(6,468	)		10,875			3,601			9,704
Noninterest income		643			892			641			686			648			2,176			1,975			2,449
Noninterest expense		4,114			5,339			5,079			5,357			4,746			14,531			13,842			12,581
Income (loss) before income taxes		(170	)		(1,384	)		73			28			(10,566	)		(1,480	)		(8,266	)		(428	)
Provision for income taxes (benefit)		(148	)		(523	)		(48	)		(97	)		(3,955	)		(718	)		(3,186	)		(214	)
Net income (loss)	$	(22	)	$	(861	)	$	121		$	125		$	(6,611	)	$	(762	)	$	(5,080	)	$	(214	)
Share and Per Share Data:
Earnings (loss) per share - basic	$	(0.00	)	$	(0.13	)	$	0.02		$	0.02		$	(0.96	)	$	(0.11	)	$	(0.74	)	$	(0.03	)
Earnings (loss) per share - diluted		(0.00	)		(0.13	)		0.02			0.02			(0.96	)		(0.11	)		(0.74	)		(0.03	)
Book value per share		7.14			7.08			7.20			7.19			7.22			7.14			7.22			9.22
Tangible book value per share		7.05			6.99			7.10			7.09			7.11			7.05			7.11			7.82
Ending shares outstanding		6,860,367			6,913,636			6,913,636			6,913,636			6,913,636			6,860,367			6,913,636			6,837,742
Weighted average shares outstanding:
Basic		6,861,034			6,913,636			6,913,636			6,913,636			6,908,466			6,896,102			6,864,543			6,833,494
Diluted		6,861,034			6,913,636			6,913,653			6,913,636			6,908,466			6,896,102			6,864,543			6,833,494
Selected Performance Ratios:
Return on average assets		-0.01	%		-0.55	%		0.08	%		0.08	%		-3.97	%		-0.16	%		-1.05	%		-0.05	%
Return on average equity		-0.18	%		-6.82	%		0.97	%		0.97	%		-46.47	%		-2.03	%		-12.12	%		-0.45	%
Net interest margin		3.77	%		3.84	%		3.94	%		3.99	%		3.85	%		3.85	%		3.97	%		3.31	%
Efficiency ratio (1)		67.03	%		82.18	%		80.41	%		80.53	%		71.51	%		76.68	%		69.41	%		75.65	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	439,410		$	458,523		$	461,604		$	470,484		$	467,876		$	439,410		$	467,876		$	472,578
Total Earning Assets		564,928			583,854			581,942			580,169			594,425			564,928			594,425			591,973
Goodwill and other intangible assets		583			622			660			699			737			583			737			9,565
Total Assets		616,580			629,135			632,327			626,896			643,185			616,580			643,185			636,810
Deposits		527,172			538,812			542,271			534,599			548,866			527,172			548,866			533,350
Short term debt		23,850			23,746			23,295			23,666			20,138			23,850			24,138			25,693
Long term debt		14,372			14,372			14,372			16,372			18,372			14,372			14,372			12,372
Shareholders’ equity		48,949			48,965			49,778			49,692			49,906			48,949			49,906			63,013
Selected Average Balances:
Gross Loans	$	449,650		$	460,236		$	466,324		$	475,149		$	486,453		$	458,676		$	487,847		$	469,109
Total Earning Assets		578,349			585,273			583,601			593,296			617,217			582,777			604,379			572,684
Goodwill and other intangible assets		602			640			679			717			756			640			794			9,622
Total Assets		625,768			631,204			631,582			641,571			660,032			629,372			646,134			626,903
Deposits		534,271			539,690			539,751			549,610			560,942			537,884			548,483			524,204
Short term debt		24,491			23,604			22,125			21,760			20,736			22,075			21,178			24,023
Long term debt		14,372			14,372			16,372			16,372			18,372			16,372			16,920			12,372
Shareholders’ equity		49,855			50,669			50,379			50,974			56,441			50,299			56,026			63,542
Asset Quality Ratios:
Nonperforming loans	$	20,116		$	16,307		$	15,206		$	12,250		$	9,678		$	18,806		$	9,678		$	16,003
Other real estate owned		3,230			3,380			5,019			3,655			3,812			3,230			3,812			2,346
Allowance for loan losses		10,338			10,378			10,118			10,015			8,081			10,338			8,081			10,317
Nonperforming loans (2) to period-end loans		4.58	%		3.56	%		3.29	%		2.60	%		2.07	%		4.28	%		2.07	%		3.39	%
Allowance for loan losses to period-end loans		2.35	%		2.26	%		2.19	%		2.13	%		1.73	%		2.35	%		1.73	%		2.18	%
Delinquency Ratio (3)		0.93	%		0.48	%		0.59	%		0.45	%		1.23	%		0.93	%		1.23	%		1.61	%
Net loan charge-offs to average loans		1.92	%		1.94	%		-0.57	%		-0.56	%		13.57	%		1.59	%		4.56	%		0.86	%

(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.