New Century Bancorp Reports Fourth Quarter and Year-End 2011 Results

DUNN, N.C., March 22, 2012 /PRNewswire/ -- New Century Bancorp (the "Company"NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $599,000 for the quarter ended December 31, 2011, and basic and diluted earnings per share of $0.09, compared to net income of $125,000 and basic and diluted earnings per share of $0.02 for the quarter ended December 31, 2010. For the year ended December 31, 2011, the Company reported a net loss of $163,000 and basic and diluted losses per share of $0.02, compared to results for the year ended December 31, 2010, for which the Company reported a net loss of $4.96 million and basic and diluted losses per share of $0.72. Results for 2010 were negatively impacted by a more than $10 million addition to loan loss provision as the result of a fraud committed by a borrower.

Total assets for the Company as of December 31, 2011, were $589.7 million, total deposits were $501.4 million, and total loans were $417.6 million, compared to total assets of $626.9 million, total deposits of $534.6 million, and total loans of $470.5 million as of the same date in 2010. While deposits declined, the decline was directly related to soft loan demand due to a slow economy. The need for deposits is proportionate to loan demand, as deposits are used to fund loans.

"As the economy begins to show signs of recovery," said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank. "New Century also is making positive strides and we are pleased to report strong earnings for the fourth quarter of 2011. We continue, first and foremost, to meet our customers' financial services needs, as well as meeting the unique needs a community bank can fill for the markets we serve. We are addressing the industry and regulatory compliance changes that are challenging for all community banks, and strengthening internal systems and structures. Our results show progress to-date and, we believe, potential for the future.

"Early in 2012, two valuable members of our team retired: Joan Patterson, executive vice president and deposit operations manager, and Danny Fisher, executive vice president and chief credit officer. Joan was one of New Century Bank's first employees, helping to form the bank prior to its opening in May 2000. She was a leader, a strong member of the New Century team, and remains a friend to many at the bank and in her community.

"An experienced banker, Danny joined our team several years ago and has been a strong, positive influence. He provided leadership in the credit administration area during a difficult economic time in our market and at our bank. We wish Joan and Danny well on their respective retirements."

On December 21, 2011, New Century Bancorp announced the pending sale of the bank's Pembroke and Raeford offices to Lumbee Guaranty Bank, headquartered in Pembroke, NC. According to Hedgepeth, "These plans continue to progress and we anticipate the sale will be finalized in the spring."          

On January 13, 2012, Ann H. Thornton, a member of the New Century Bancorp Board of Directors, passed away. "We mourn the loss of Ann as a leader and a friend," said Hedgepeth. "She served New Century's shareholders for nearly 10 years, offering her time, talent, and expertise to the board and our management team. She believed in our bank, supported our employees, and honored us with her presence. She will be missed."

New Century Bancorp's subsidiary bank, New Century Bank, is well-capitalized, the highest regulatory standard. Through New Century Bank, the Company has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, Pembroke, Raeford, and a loan production office in Greenville.

The information as of and for the quarter and year ended December 31, 2011, 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.

SOURCE New Century Bancorp