Select Bancorp Reports Second Quarter 2014 Earnings Of The Former New Century Bancorp

Second quarter saw final merger preparation, a recovery on loan losses, and lower noninterest expenses.

Aug 01, 2014, 15:24 ET from Select Bancorp, Inc.

DUNN, N.C., Aug. 1, 2014 /PRNewswire/ -- Select Bancorp, Inc. (the "Company" NASDAQ: SLCT) reports net income for New Century Bancorp for the quarter ended June 30, 2014, of $613,000 and basic and diluted earnings per share of $0.09. For the same quarter in 2013, net income for New Century Bancorp was $1.26 million, and basic and diluted earnings per share were $0.18. For the six-month period ended June 30, 2014, net income for New Century was $885,000 compared to $2.1 million for the prior year period. Basic and fully diluted earnings per share for the six-month period ended June 30, 2014, were $0.13 and for the same period in 2013 were $0.30.

On July 25, 2014, New Century Bancorp acquired Select Bancorp, Inc. and assumed the name, Select Bancorp, Inc. on that date. The financial data reported here is solely the financial information of the entity formerly known as New Century Bancorp. Commencing in the third quarter of 2014, combined financial information of the former New Century and Select entities will be reported upon the July 25, 2014 closing of the merger.

Earnings for both the second quarter and for the six-month period ended June 30, 2014, for New Century Bancorp were impacted by expenses related to its acquisition of the former Greenville-based Select Bancorp, Inc. Total assets, deposits, and loans for New Century Bancorp as of June 30, 2014, were $508.3 million, $428.7 million, and $333.9 million, respectively. 

After final approval by the shareholders of both companies and all federal and state regulatory agencies, the strategic merger, jointly announced on September 30, 2013, by New Century Bancorp and the former Greenville-based Select Bancorp, Inc. closed as of the close of business Friday, July 25, 2014.  

"These positive earnings represent the final results we will report for the former New Century Bancorp," said William L. Hedgepeth II, president and CEO of Select Bancorp, Inc. and Select Bank & Trust Company. "The decision was made early in the merger process to take the name Select Bancorp, Inc. for our holding company and Select Bank & Trust Company for our community bank franchise following the merger.

"Second quarter 2014 was primarily focused on the many decisions that had to be made to merge the two companies and the two banks. During the same time period, the Company benefited from a loan loss recovery and saw noninterest expenses trend down on a linked quarter basis.

"Now, in third quarter, we are moving forward as one community bank, ready to serve our customers, to gain new customer relationships, and to offer great service and common sense banking."

Select Bancorp, Inc., headquartered in Dunn, North Carolina, is the holding company for Select Bank & Trust Company, a state chartered commercial bank insured by the Federal Deposit Insurance Corporation (FDIC).   Select Bank & Trust Company has 14 branch offices in the following North Carolina communities: Burlington, Clinton, Dunn, Elizabeth City, Fayetteville (2), Gibsonville, Goldsboro, Greenville (2), Lillington, Lumberton, Raleigh and Washington. SelectBank.com.

The information as of and for the quarter and six months ended June 30, 2014, 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, 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.

  

Select Bancorp, Inc. (formerly New Century Bancorp)

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, 2014

March 31, 2014

December 31, 2013

September 30, 2013

June 30, 2013

June 30, 2014

June 30, 2013

June 30, 2012

Summary of Operations:

Total interest income

$          5,261

$             5,314

$                  5,456

$                    5,600

$          5,968

$        10,575

$        11,847

$        12,944

Total interest expense

1,098

1,111

1,186

1,299

1,355

2,209

2,773

3,457

Net interest income

4,163

4,203

4,270

4,301

4,613

8,366

9,074

9,487

Provision for (Recovery of) loan losses

(427)

(49)

280

(130)

(375)

(476)

(475)

(2,786)

Net interest income after provision

4,590

4,252

3,990

4,431

4,988

8,842

9,549

12,273

Noninterest income

565

624

632

623

755

1,189

1,373

1,826

Noninterest expense

3,917

4,289

3,838

3,912

3,756

8,206

7,678

8,865

Merger-related expense

237

162

427

-

-

399

-

-

   Income before income taxes

1,001

425

357

1,142

1,987

1,426

3,243

5,234

Provision for income taxes 

388

153

118

493

728

541

1,192

1,964

Net income

$             613

$               272

$                     239

$                      649

$          1,259

$             885

$          2,051

$          3,270

Share and Per Share Data:

Earnings per share - basic

$            0.09

$              0.04

$                    0.04

$                     0.09

$            0.18

$            0.13

$            0.30

$            0.47

Earnings per share - diluted

$            0.09

$              0.04

$                    0.04

$                     0.09

$            0.18

$            0.13

$            0.30

$            0.47

Book value per share

$            8.30

$              8.17

$                    8.09

$                     8.09

$            8.00

8.30

8.01

7.66

Tangible book value per share

$            8.29

$              8.14

$                    8.07

$                     8.06

$            7.97

8.29

7.98

7.61

Ending shares outstanding

6,931,168

6,921,742

6,921,352

6,921,352

6,921,352

6,931,168

6,916,233

6,913,636

Weighted average shares outstanding:

   Basic

6,923,640

6,921,561

6,921,352

6,921,352

6,921,352

6,922,651

6,916,233

6,913,636

   Diluted

6,928,428

6,924,164

6,924,339

6,924,142

6,922,942

6,926,318

6,917,471

6,913,636

Selected Performance Ratios:

Return on average assets

0.48%

0.21%

0.18%

0.47%

0.91%

0.34%

0.73%

1.15%

Return on average equity

4.35%

1.94%

1.68%

4.61%

9.09%

3.13%

7.51%

12.76%

Net interest margin

3.62%

3.60%

3.41%

3.41%

3.61%

3.59%

3.49%

3.64%

Efficiency ratio (1)

82.85%

88.85%

78.29%

79.45%

69.97%

85.88%

73.50%

78.36%

Period End Balance Sheet Data:

Loans, held for sale

$                 -

$                    -

$                         -

$                           -

$             406

$                 -

$             406

$                 -

Loans, net of unearned income

333,868

345,827

346,500

349,087

355,651

333,868

355,245

390,403

Total earning assets

458,696

470,544

477,852

505,489

499,819

458,696

499,819

515,397

Core deposit intangible

124

153

182

211

240

124

240

356

Total assets

508,282

520,276

525,646

545,018

550,008

508,282

550,008

563,682

Deposits

428,734

441,298

448,458

459,811

465,489

428,734

465,489

471,184

Short term debt

7,179

7,625

6,305

14,207

13,858

7,179

13,858

22,953

Long term debt

12,372

12,372

12,372

12,372

12,372

12,372

12,372

12,372

Shareholders' equity

57,551

56,523

56,004

55,991

55,403

57,551

55,403

52,954

Selected Average Balances:

Gross loans

$       336,286

$         346,968

$               347,201

$                347,142

$       359,559

$       341,597

$       362,698

$       402,600

Total earning assets

465,901

473,136

496,698

500,079

512,953

469,498

525,024

524,732

Core deposit intangible

136

167

193

223

252

151

267

454

Total assets

514,539

520,746

538,616

548,460

557,298

517,384

567,141

574,232

Deposits

435,976

441,637

457,405

462,994

472,986

438,791

481,024

483,739

Short term debt

6,748

7,354

9,615

13,929

13,851

7,049

16,021

23,719

Long term debt

12,372

12,372

12,372

12,372

12,372

12,372

12,372

12,372

Shareholders' equity

57,158

56,780

56,456

55,911

55,529

56,970

55,211

51,541

Asset Quality Ratios:

Nonperforming loans

$        12,952

$           14,605

$                 15,855

$                  17,400

$        15,657

$        12,952

$        14,518

$        16,579

Other real estate owned

1,169

1,233

2,008

2,164

2,370

1,169

2,370

3,859

Allowance for loan losses 

6,447

7,025

7,054

6,858

7,218

6,447

7,218

8,510

Nonperforming loans (2)to period-end loans (4)

3.88%

4.22%

4.58%

4.98%

4.40%

3.88%

4.09%

4.25%

Allowance for loan losses to period-end loans (4)

1.93%

2.03%

2.04%

1.96%

2.03%

1.93%

2.03%

2.18%

Delinquency ratio (3)

0.15%

0.21%

0.25%

0.16%

0.87%

0.15%

0.87%

0.77%

Net loan charge-offs (recoveries) to average loans

0.18%

-0.02%

0.10%

0.26%

0.20%

0.08%

0.11%

0.63%

(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.

(4)

Excludes loans held for sale

 

SOURCE Select Bancorp, Inc.



RELATED LINKS

http://www.SelectBank.com