New Century Bancorp Amends Previously Released Second Quarter 2012 Earnings To Reflect Increased Net Income

News provided by

New Century Bancorp

Aug 02, 2012, 05:01 ET

DUNN, N.C., Aug. 2, 2012 /PRNewswire/ -- New Century Bancorp (the "Company" NASDAQ: NCBC), the holding company for New Century Bank, today reported that its unaudited results of operations for the three and six months ended June 30, 2012, as previously released on July 30, 2012, would be amended to reflect increased net income.  The Company's net income for the quarter ended June 30, 2012, as adjusted, was $1.2 million, resulting in basic and diluted earnings per share of $0.17.  Net income for the six months ended June 30, 2012, as adjusted, was $3.3 million, resulting in basic and diluted earnings per share of $0.47 for the six-month period.

The increase in net income for the three and six month periods ended June 30, 201,2 stems from a decrease in the required balance of the Company's allowance for loan losses due to reductions in adversely classified assets and nonaccrual loans, improved historical credit quality metrics, and an overall reduction in the size of the Company's loan portfolio.

Total assets for the Company as of June 30, 2012, were impacted by the change and, as adjusted, were $563.7 million.  Total deposits and total loans were $471.2 million and $390.4 million, respectively, and these measures were not affected by the change.

The Company will furnish a report on Form 8-K to the Securities and Exchange Commission on August 3, 2012, as scheduled, regarding its results of operations for the three and six months ended June 30, 2012.  No restatement or amendment of the Company's reports previously filed with the Securities and Exchange Commission is anticipated.

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 June 30, 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 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, 2012

March 31, 2012

December 31, 2011

September 30, 2011

June 30, 2011

June 30, 2012

June 30, 2011

June 30, 2010

Summary of Operations:















Total interest income

$                   6,325

$                    6,619

$                    7,086

$                  7,584

$                   7,798

$                 12,944

$                  15,713

$                 16,857

Total interest expense

1,684

1,772

1,903

2,089

2,193

3,457

4,433

4,879

Net interest income

4,641

4,847

5,183

5,495

5,605

9,487

11,280

11,978

Provision for loan losses

(649)

(2,136)

319

2,194

2,542

(2,786)

3,706

1,909

Net interest income after provision

5,290

6,983

4,864

3,301

3,063

12,273

7,574

10,069

Noninterest income

1,199

626

642

643

892

1,826

1,533

1,342

Noninterest expense

4,648

4,216

4,574

4,114

5,339

8,865

10,417

9,111

   Income (loss) before income taxes

1,841

3,393

932

(170)

(1,384)

5,234

(1,310)

2,300

Provision for income taxes (benefit)

683

1,281

333

(148)

(523)

1,964

(570)

769

Net income (loss)

$                   1,158

$                    2,112

$                      599

$                      (22)

$                     (861)

$                   3,270

$                      (740)

$                   1,531

Share and Per Share Data:
































Earnings (loss) per share - basic

$                     0.17

$                     0.31

$                     0.09

$                   (0.00)

$                    (0.13)

$                     0.47

$                     (0.11)

$                    0.22

Earnings (loss) per share - diluted

$                     0.17

$                     0.31

$                     0.03

$                   (0.00)

$                     0.13

$                     0.47

$                     (0.11)

$                    0.22

Book value per share

7.66

7.49

7.22

7.14

7.08

7.66

7.08

8.19

Tangible book value per share

7.61

7.41

7.14

7.05

6.99

7.61

6.99

8.08

Ending shares outstanding

6,913,636

6,913,636

6,860,367

6,860,367

6,913,636

6,913,636

6,913,636

6,891,784

Weighted average shares outstanding:















   Basic

6,913,636

6,859,196

6,860,367

6,861,034

6,913,636

6,913,636

6,913,636

6,842,218

   Diluted

6,913,636

6,859,196

6,860,367

6,861,034

6,913,636

6,913,636

6,913,636

6,851,055

Selected Performance Ratios:
































Return on average assets

0.83%

1.45%

0.39%

-0.01%

-0.55%

1.15%

-0.24%

0.48%

Return on average equity

8.82%

16.89%

4.80%

-0.18%

-6.82%

12.76%

-2.95%

5.53%

Net interest margin

3.63%

3.64%

3.68%

3.77%

3.84%

3.64%

3.92%

4.04%

Efficiency ratio (1)

79.59%

77.03%

78.52%

67.03%

82.18%

78.36%

81.30%

68.40%

Period End Balance Sheet Data:
































Loans, held for sale

$                          -

$                    1,552

$                           -

$                         -

$                          -

$                          -

$                           -

$                          -

Loans, net of unearned income

390,403

399,760

417,624

439,410

458,523

390,403

458,523

490,883

Total Earning Assets

515,397

534,057

536,390

564,928

583,854

515,397

583,854

619,867

Core Deposit Intangible

356

516

545

583

622

356

622

776

Total Assets

563,682

580,996

589,651

616,580

629,135

563,682

629,135

663,001

Deposits

471,184

489,966

501,377

527,172

538,812

471,184

538,812

566,031

Short term debt

22,953

23,301

21,877

23,850

23,746

22,953

23,746

20,138

Long term debt

12,372

12,372

14,372

14,372

14,372

12,372

14,372

18,372

Shareholders' equity

52,954

51,777

49,546

48,949

48,965

52,954

48,965

56,442

Selected Average Balances:
































Gross Loans

$                396,190

$                409,009

$                429,642

$               449,650

$                460,236

$               402,600

$                 463,263

$               488,557

Total Earning Assets

514,147

535,317

559,110

578,349

585,273

524,732

579,642

597,852

Core Deposit Intangible

379

533

569

602

640

454

659

813

Total Assets

563,850

585,249

608,118

625,768

631,204

574,232

631,205

638,930

Deposits

471,829

495,649

518,508

534,271

539,690

483,739

577,956

542,152

Short term debt

22,961

23,004

23,476

24,491

23,604

23,719

23,863

25,151

Long term debt

12,372

13,845

14,372

14,372

14,372

12,372

14,372

12,372

Shareholders' equity

52,783

50,300

49,486

49,855

50,669

51,541

50,525

55,815

Asset Quality Ratios:
































Nonperforming loans

$                 16,579

$                  19,270

$                  19,636

$                 20,116

$                 16,307

$                 16,579

$                  16,307

$                 13,885

Other real estate owned

3,859

2,391

3,031

3,230

3,380

3,859

3,380

3,215

Allowance for loan losses

8,510

9,568

10,034

10,338

10,378

8,510

10,378

10,006

Nonperforming loans (2) to period-end loans

4.25%

4.82%

4.70%

4.58%

3.56%

4.25%

3.56%

2.83%

Allowance for loan losses to period-end loans

2.18%

2.39%

2.40%

2.35%

2.26%

2.18%

2.26%

2.04%

Delinquency Ratio (3)

0.77%

0.23%

1.02%

0.93%

0.48%

0.77%

0.48%

0.75%

Net loan charge-offs to average loans

-0.42%

-1.64%

0.68%

1.92%

1.94%

0.63%

1.43%

0.73%



















































(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.











www.newcenturybanknc.com

SOURCE New Century Bancorp