New Century Bancorp Reports First Quarter 2013 Earnings

Company begins year on a strong note reporting first quarter net income of $794,000.

News provided by

New Century Bancorp

May 01, 2013, 05:26 ET

DUNN, N.C., May 1, 2013 /PRNewswire/ -- New Century Bancorp (the "Company") (NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $794,000 for the quarter ended March 31, 2013, and basic and diluted earnings per share of $0.12, compared to net income of $2.1 million and basic and diluted earnings per share of $0.31 for the quarter ended March 31, 2012, when earnings were positively impacted by a substantial loan recovery.

Total assets for the Company as of March 31, 2013, were $567.5 million, total deposits were $483.0 million, and total loans were $360.4 million, compared to total assets of $581.0 million, total deposits of $490.0 million, and total loans of $399.8 million as of the same date in 2012. During the course of the year, loan demand remained soft in many business sectors and the decrease in total loans and total deposits in a year-to-year comparison reflects that. 

Commenting on first quarter 2013 results, President and CEO William L. Hedgepeth II said, "We are pleased with these results from operations and with getting a positive start in 2013. On a linked quarter basis, our net interest margin shows slight improvement, and noninterest expenses were down in both a linked quarter and year-to-year comparison. Core earnings, results achieved from the day-to-day operations of New Century Bank, were strong and asset quality continues to improve.

"We've already made progress on many fronts this year, including updating our deposit products and services to more closely align them with customer expectations today. Many of our services are Internet-based, such as online banking, bill pay and cash management, allowing customers to bank at their convenience. We will continue to focus on offering great products and services to our customers in responsible ways.

"Challenges remain, in our industry and in the economy, but we believe we now have the personnel and processes in place to address and overcome those challenges." 

New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, as well as loan production offices in Greenville and Raleigh.

The information as of and for the quarter ended March 31, 2013, 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

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, 2013

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

March 31, 2011

Summary of Operations:











Total interest income

$                    5,879

$                    5,990

$                    6,198

$                   6,325

$                    6,619

$                   7,915

Total interest expense

1,418

1,552

1,623

1,684

1,772

2,240

Net interest income

4,461

4,438

4,575

4,641

4,847

5,675

Provision for loan losses

(100)

-

189

(649)

(2,136)

1,164

Net interest income after provision

4,561

4,438

4,386

5,290

6,983

4,511

Noninterest income

619

1,015

757

1,199

626

641

Noninterest expense

3,921

4,201

4,170

4,648

4,216

5,079

   Income before income taxes

1,258

1,252

973

1,841

3,393

73

Provision for income taxes (benefit)

464

517

341

683

1,281

(48)

Net income

$                      794

$                       735

$                       632

$                   1,158

$                    2,112

$                      121













Share and Per Share Data:











Earnings per share - basic

$                     0.12

$                      0.11

$                      0.09

$                     0.17

$                     0.31

$                     0.02

Earnings per share - diluted

$                     0.12

$                      0.11

$                      0.09

$                     0.17

$                     0.31

$                     0.02

Book value per share

$                     7.93

$                      7.84

$                      7.76

$                     7.66

$                     7.49

$                     7.20

Tangible book value per share

$                     7.89

$                      7.79

$                      7.72

$                     7.61

$                     7.41

$                     7.10

Ending shares outstanding

6,916,506

6,913,636

6,913,636

6,913,636

6,913,636

6,913,636

Weighted average shares outstanding:











   Basic

6,914,934

6,913,636

6,913,636

6,913,636

6,859,196

6,913,636

   Diluted

6,916,011

6,914,345

6,914,085

6,913,636

6,859,196

6,913,653













Selected Performance Ratios:











Return on average assets

0.56%

0.50%

0.44%

0.83%

1.45%

0.08%

Return on average equity

5.87%

5.37%

4.69%

8.82%

16.89%

0.97%

Net interest margin

3.37%

3.33%

3.49%

3.63%

3.64%

3.94%

Efficiency ratio (1)

77.19%

77.04%

78.21%

79.59%

77.03%

80.41%













Period End Balance Sheet Data:











Loans, held for sale

$                      432

$                           -

$                           -

$                          -

$                    1,552

$                          -

Loans, net of unearned income

360,432

367,892

386,096

390,403

399,760

461,604

Total Earning Assets

523,675

543,674

525,962

515,397

534,057

581,942

Core Deposit Intangible

269

298

327

356

516

660

Total Assets

567,516

585,453

577,833

563,682

580,996

632,327

Deposits

482,983

498,559

481,320

471,184

489,966

542,271

Short term debt

14,658

17,848

26,195

22,953

23,301

23,295

Long term debt

12,372

12,372

12,372

12,372

12,372

14,372

Shareholders' equity

54,839

54,179

53,671

52,954

51,777

49,778













Selected Average Balances:











Gross Loans

$                365,871

$                 375,413

$                 386,217

$               396,190

$                409,009

$                466,324

Total Earning Assets

537,230

530,344

520,852

514,147

535,317

583,601

Core Deposit Intangible

283

310

339

379

533

679

Total Assets

577,092

580,974

569,048

563,850

585,249

631,582

Deposits

489,150

485,844

474,069

471,829

495,649

539,751

Short term debt

18,215

23,961

24,609

22,961

23,004

22,125

Long term debt

12,372

12,372

12,372

12,372

13,845

16,372

Shareholders' equity

54,890

54,352

53,619

52,783

50,300

50,379













Asset Quality Ratios:











Nonperforming loans

$                  11,180

$                  12,030

$                  18,613

$                 16,579

$                  19,270

$                 15,206

Other real estate owned

2,340

2,833

2,849

3,859

2,391

5,019

Allowance for loan losses 

7,775

7,897

8,588

8,510

9,568

10,118

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

3.10%

3.27%

4.82%

4.25%

4.82%

3.29%

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

2.16%

2.15%

2.22%

2.18%

2.39%

2.19%

Delinquency Ratio (3)

0.79%

0.32%

0.47%

0.77%

0.23%

0.59%

Net loan charge-offs to average loans

0.02%

0.73%

0.11%

0.41%

-1.64%

-0.57%







































(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 New Century Bancorp

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