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): April 24, 2012
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) |
Registrants 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 April 24, 2012, New Century Bancorp, Inc. (the Registrant) announced financial results for the first quarter ended March 31, 2012. A copy of the press release (the Press Release) announcing the Registrants results for the first quarter ended March 31, 2012, 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 |
DESCRIPTION OF EXHIBIT | |
99.1 | Press release, dated April 24, 2012, regarding the Registrants financial results for the first 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 Registrants 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 Registrants management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Registrants 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: April 27, 2012
EXHIBIT INDEX
EXHIBIT |
DESCRIPTION OF EXHIBIT | |
99.1 | Press release, dated April 24, 2012, regarding the Registrants financial results for the first quarter |
Exhibit 99.1
FOR RELEASE: | April 24, 2012 |
Lisa F. Campbell, Executive Vice President
Chief Operating Officer and Chief Financial Officer
Office: 910-892-7080 and Direct: 910-897-3660
lisac@newcenturybanknc.com
www.newcenturybanknc.com
NEW CENTURY BANCORP REPORTS
FIRST QUARTER 2012 EARNINGS
Net income boosted by loan recovery.
DUNN, NC . . . New Century Bancorp (the Company NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $2.1 million for the quarter ended March, 31, 2012, and basic and diluted earnings per share of $0.31, compared to net income of $121,000 and basic and diluted earnings per share of $0.02 for the quarter ended March 31, 2011.
Total assets for the Company as of March 31, 2012, were $581.0 million, total deposits were $490.0 million, and total loans were $399.8 million, compared to total assets of $632.3 million, total deposits of $542.3 million, and total loans of $461.6 million as of the same date in 2011. Loan demand remains soft due to the economys slow recovery, resulting in lower total loans in a year-to-year comparison. Total deposits are also lower in a year-to-year comparison, as the banks need for deposits is related to loan demand.
Our quarterly earnings were boosted by a reduction in our loan loss provision due to a large recovery on a loan, which is a positive outcome for the Company, said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank. Even without the recovery, our earningsthe results of day-to-day operationswere strong. We are pleased with these results, as they reflect the hard work of our staff.
There are still challenges ahead for us, as there are for all community banks, specifically a difficult regulatory environment and a still sluggish economy. As a locally owned and operated community bank offering strong products and services to individuals and small businesses through people who live here and know these communities, we are in a unique position to understand and serve our customers and our market. And that is exactly what we are doing.
New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, and a loan production office in Greenville.
###
The information as of and for the quarter ended March 31, 2012, 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 Companys 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 | ||||||||||||||||||||||||
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
March 31, 2010 |
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Summary of Operations: |
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Total interest income |
$ | 6,619 | $ | 7,086 | $ | 7,584 | $ | 7,798 | $ | 7,915 | $ | 8,333 | ||||||||||||
Total interest expense |
1,772 | 1,903 | 2,089 | 2,193 | 2,240 | 2,446 | ||||||||||||||||||
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Net interest income |
4,847 | 5,183 | 5,495 | 5,605 | 5,675 | 5,887 | ||||||||||||||||||
Provision for loan losses |
(2,136 | ) | 319 | 2,194 | 2,542 | 1,164 | 1,270 | |||||||||||||||||
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Net interest income after provision |
6,983 | 4,864 | 3,301 | 3,063 | 4,511 | 4,617 | ||||||||||||||||||
Noninterest income |
626 | 642 | 643 | 892 | 641 | 667 | ||||||||||||||||||
Goodwill Impairment |
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Noninterest expense |
4,216 | 4,574 | 4,114 | 5,339 | 5,079 | 4,606 | ||||||||||||||||||
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Income (loss) before income taxes |
3,393 | 932 | (170 | ) | (1,384 | ) | 73 | 678 | ||||||||||||||||
Provision for income taxes (benefit) |
1,281 | 333 | (148 | ) | (523 | ) | (48 | ) | 221 | |||||||||||||||
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Net income (loss) |
$ | 2,112 | $ | 599 | $ | (22 | ) | $ | (861 | ) | $ | 121 | $ | 457 | ||||||||||
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Share and Per Share Data: |
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Earnings (loss) per share - basic |
$ | 0.31 | $ | 0.09 | $ | (0.00 | ) | $ | (0.13 | ) | $ | 0.02 | $ | 0.07 | ||||||||||
Book value per share |
7.49 | 7.22 | 7.14 | 7.08 | 7.20 | 8.03 | ||||||||||||||||||
Tangible book value per share |
7.41 | 7.14 | 7.05 | 6.99 | 7.10 | 7.91 | ||||||||||||||||||
Ending shares outstanding |
6,913,636 | 6,860,367 | 6,860,367 | 6,913,636 | 6,913,636 | 6,837,952 | ||||||||||||||||||
Weighted average shares outstanding: |
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Basic |
6,859,196 | 6,860,367 | 6,861,034 | 6,913,636 | 6,913,636 | 6,837,952 | ||||||||||||||||||
Diluted |
6,859,196 | 6,860,367 | 6,861,034 | 6,913,636 | 6,913,653 | 6,845,714 | ||||||||||||||||||
Selected Performance Ratios: |
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Return on average assets |
1.45 | % | 0.39 | % | -0.01 | % | -0.55 | % | 0.08 | % | 0.30 | % | ||||||||||||
Return on average equity |
16.89 | % | 4.80 | % | -0.18 | % | -6.82 | % | 0.97 | % | 3.34 | % | ||||||||||||
Net interest margin |
3.64 | % | 3.68 | % | 3.77 | % | 3.84 | % | 3.94 | % | 4.08 | % | ||||||||||||
Efficiency ratio (1) |
77.03 | % | 78.52 | % | 67.03 | % | 82.18 | % | 80.41 | % | 70.28 | % | ||||||||||||
Period End Balance Sheet Data: |
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Loans, held for sale |
$ | 1,552 | $ | | $ | | $ | | $ | | $ | | ||||||||||||
Loans, net of unearned income |
399,760 | 417,624 | 439,410 | 458,523 | 461,604 | 496,448 | ||||||||||||||||||
Total Earning Assets |
534,057 | 536,390 | 564,928 | 583,854 | 581,942 | 602,436 | ||||||||||||||||||
Goodwill and other intangible assets |
516 | 545 | 583 | 622 | 660 | 814 | ||||||||||||||||||
Total Assets |
580,996 | 589,651 | 616,580 | 629,135 | 632,327 | 642,883 | ||||||||||||||||||
Deposits |
489,966 | 501,377 | 527,172 | 538,812 | 542,271 | 542,348 | ||||||||||||||||||
Short term debt |
23,301 | 21,877 | 23,850 | 23,746 | 23,295 | 21,744 | ||||||||||||||||||
Long term debt |
12,372 | 14,372 | 14,372 | 14,372 | 14,372 | 18,372 | ||||||||||||||||||
Shareholders equity |
51,777 | 49,546 | 48,949 | 48,965 | 49,778 | 54,934 | ||||||||||||||||||
Selected Average Balances: |
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Gross Loans |
$ | 409,009 | $ | 429,642 | $ | 449,650 | $ | 460,236 | $ | 466,324 | $ | 483,665 | ||||||||||||
Total Earning Assets |
535,317 | 559,110 | 578,349 | 585,273 | 583,601 | 585,277 | ||||||||||||||||||
Goodwill and other intangible assets |
533 | 569 | 602 | 640 | 679 | 832 | ||||||||||||||||||
Total Assets |
585,249 | 608,118 | 625,768 | 631,204 | 631,582 | 625,307 | ||||||||||||||||||
Deposits |
495,649 | 518,508 | 534,271 | 539,690 | 539,751 | 531,115 | ||||||||||||||||||
Short term debt |
23,004 | 23,476 | 24,491 | 23,604 | 22,125 | 21,802 | ||||||||||||||||||
Long term debt |
13,845 | 14,372 | 14,372 | 14,372 | 16,372 | 13,972 | ||||||||||||||||||
Shareholders equity |
50,300 | 49,486 | 49,855 | 50,669 | 50,379 | 55,533 | ||||||||||||||||||
Asset Quality Ratios: |
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Nonperforming loans |
$ | 19,270 | $ | 19,636 | $ | 20,116 | $ | 16,307 | $ | 15,206 | $ | 18,956 | ||||||||||||
Other real estate owned |
2,391 | 3,031 | 3,230 | 3,380 | 5,019 | 2,680 | ||||||||||||||||||
Allowance for loan losses |
9,568 | 10,034 | 10,338 | 10,378 | 10,118 | 11,232 | ||||||||||||||||||
Nonperforming loans (2) to period-end loans |
4.82 | % | 4.70 | % | 4.58 | % | 3.56 | % | 3.29 | % | 3.82 | % | ||||||||||||
Allowance for loan losses to period-end loans |
2.39 | % | 2.40 | % | 2.35 | % | 2.26 | % | 2.19 | % | 2.26 | % | ||||||||||||
Delinquency Ratio (3) |
0.23 | % | 1.02 | % | 0.93 | % | 0.48 | % | 0.59 | % | 0.45 | % | ||||||||||||
Net loan charge-offs to average loans |
-1.64 | % | 0.68 | % | 1.92 | % | 1.94 | % | -0.57 | % | 0.05 | % |
(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. |