New Century Bancorp Announces First Quarter 2010 Earnings

DUNN, N.C., April 30 /PRNewswire-FirstCall/ -- New Century Bancorp (the "Company" -Nasdaq: NCBC), the holding company for New Century Bank, reported net income for the quarter ended March 31, 2010, of $457,000, compared to net income of $408,000 for the same period in 2009, an increase of $49,000 or 12.0%.  Basic and diluted earnings per share for first quarter 2010 were $0.07 and for first quarter 2009 were $0.06.

As of March 31, 2010, the Company reported total assets of $642.9 million, total deposits of $542.3 million and total loans of $496.4 million.  As of March 31, 2009, these figures stood at total assets of $628.7 million, total deposits of $523.5 million, and total loans of $469.8 million, for increases of 2.3%, 3.6%, and 5.7%, respectively, year-to-year.  

"We have started the year on a positive note with net income and a higher net interest margin," said William L. Hedgepeth III, president and chief executive officer. "In light of a continuing difficult and uncertain economy, we are pleased with our core earnings results."

Net interest margin improved to 4.08%, compared to 3.27% for first quarter 2009, which positively impacted earnings.  While noninterest expenses were higher for the quarter, most of this can be attributed to expenses associated with the conversion to a new core operating system, which included: $175,000 in the purchase of computer hardware; $146,000 in software and license agreements; and $185,000 for one-time costs for system set-up, de-conversion and exit costs, travel-related and training costs, and supplies. This investment was made to meet customers' changing financial services needs and to position the Bank for its next decade of growth and success.  Finally, earnings were impacted by a $1.3 million addition to the provision for loan losses due to an increase in non-accrual loans.  

"The economy still presents challenges to New Century Bank and to all banks," Hedgepeth said.  "We feel strongly about the prospects for New Century Bank in 2010.  On behalf of everyone at New Century, we were saddened by the loss of one of our Company's directors—Sidney E. Thompson, M.D.—during the quarter.  He served our company well for the past six years and his friendship and leadership will be missed."

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.

The information as of and for the quarter ended March 31, 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.

www.newcenturybanknc.com

SOURCE New Century Bancorp