New Century Bancorp Reports First Quarter 2012 Earnings
Net income boosted by loan recovery.
Apr 24, 2012, 01:13 ET
DUNN, N.C., April 24, 2012 /PRNewswire/ -- 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 economy's 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 bank's 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 earnings—the results of day-to-day operations—were 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 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. |
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| Selected Financial Information and Other Data |
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| ($ in thousands, except per share data) |
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| 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 |
||||||
| 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 |
||||||
| 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 |
- |
- |
- |
- |
- |
- |
||||||
| Noninterest expense |
4,216 |
4,574 |
4,114 |
5,339 |
5,079 |
4,606 |
||||||
| 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 |
||||||
| 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 |
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| 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 |
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| Weighted average shares outstanding: |
||||||||||||
| 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 |
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| 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% |
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| Net interest margin |
3.64% |
3.68% |
3.77% |
3.84% |
3.94% |
4.08% |
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| Efficiency ratio (1) |
77.03% |
78.52% |
67.03% |
82.18% |
80.41% |
70.28% |
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| Period End Balance Sheet Data: |
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| Loans, held for sale |
$ 1,552 |
$ - |
$ - |
$ - |
$ - |
$ - |
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| Loans, net of unearned income |
399,760 |
417,624 |
439,410 |
458,523 |
461,604 |
496,448 |
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| Total Earning Assets |
534,057 |
536,390 |
564,928 |
583,854 |
581,942 |
602,436 |
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| 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 |
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| 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 |
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| Selected Average Balances: |
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| Gross Loans |
$ 409,009 |
$ 429,642 |
$ 449,650 |
$ 460,236 |
$ 466,324 |
$ 483,665 |
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| 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 |
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| Asset Quality Ratios: |
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| Nonperforming loans |
$ 19,270 |
$ 19,636 |
$ 20,116 |
$ 16,307 |
$ 15,206 |
$ 18,956 |
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| 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 |
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| 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% |
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| Net loan charge-offs to average loans |
-1.64% |
0.68% |
1.92% |
1.94% |
-0.57% |
0.05% |
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| (1) Efficiency ratio is calculated as non-interest expenses divided by the sum of net interest income and non-interest income. |
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| (2) Nonperforming loans consist of non-accrual loans and restructured loans. |
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| (3) Delinquency Ratio includes 30-89 days past due and excludes non-accrual loans. |
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SOURCE New Century Bancorp