New Century Bancorp Reports Second Quarter 2013 Earnings
Strong earnings trend continues as New Century prepares to establish full-service office in Wake County market.
DUNN, N.C., Aug. 7, 2013 /PRNewswire/ -- New Century Bancorp (the "Company"NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $1.3 million for the quarter ended June 30, 2013, and basic and diluted earnings per share of $0.18 compared to net income of $1.2 million and basic and diluted earnings per share of $0.17 for the second quarter of 2012. For the six months ended June 30, 2013, net income was $2.1 million with basic and diluted earnings per share of $0.30, compared to $3.3 million and basic and diluted earnings per share of $0.47 for the six months ended June 30, 2012, a period during which New Century benefited from a substantial loan recovery and from the gain on the sale of branch offices in Pembroke and Raeford, NC.
Total assets, deposits, and loans for the Company as of June 30, 2013, were $550.0 million, $465.5 million, and $355.7 million, respectively, compared to total assets of $563.7 million, total deposits of $471.2 million, and total loans of $390.4 million as of the same date in 2012. Loan demand remains soft in New Century's market and in a number of key business sectors, which is reflected in decreases in total loans and total deposits in a year-to-year comparison.
New Century President and CEO William L. Hedgepeth II commented on the earnings report, "On behalf of our board, management team and staff, I am pleased to report these positive results from operations. We continue to work on improving asset quality, which is critical to our ongoing success. Noninterest expenses are down in both a year-to-year comparison and on a linked-quarter basis, and core earnings—results achieved from the day-to-day operations of our bank—remain strong.
"Our loan production office in Wake County is establishing a good presence in this important North Carolina market and as a result we have announced plans to open a full-service office there during fourth quarter 2013. While loan growth in many markets remains soft, demand in Wake County, part of North Carolina's Research Triangle, is improving more quickly than in other areas. We've introduced new products and services; remained focused on delivery channels that meet customer needs for easy access to funds and quick, convenient transaction times; and, continued to be focused on both serving our customers and our shareholders."
New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, and Lumberton, as well as loan production offices in Greenville and Raleigh.
The information as of and for the quarter ended June 30, 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, 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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REVISED |
At or for the three months ended |
At or for the six months ended |
||||||||||||||
June 30, 2013 |
March 31, 2013 |
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
June 30, 2013 |
June 30, 2012 |
June 30, 2011 |
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Summary of Operations: |
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Total interest income |
$ 5,968 |
$ 5,878 |
$ 5,990 |
$ 6,198 |
$ 6,325 |
$ 11,847 |
$ 12,944 |
$ 15,713 |
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Total interest expense |
1,355 |
1,418 |
1,552 |
1,623 |
1,684 |
2,773 |
3,457 |
4,433 |
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Net interest income |
4,613 |
4,460 |
4,438 |
4,575 |
4,641 |
9,074 |
9,487 |
11,280 |
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Provision for loan losses |
(375) |
(100) |
- |
189 |
(649) |
(475) |
(2,786) |
3,706 |
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Net interest income after provision |
4,988 |
4,560 |
4,438 |
4,386 |
5,290 |
9,549 |
12,273 |
7,574 |
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Noninterest income |
755 |
619 |
1,015 |
757 |
1,199 |
1,373 |
1,826 |
1,533 |
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Noninterest expense |
3,756 |
3,921 |
4,201 |
4,170 |
4,648 |
7,678 |
8,865 |
10,417 |
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Income before income taxes |
1,987 |
1,258 |
1,252 |
973 |
1,841 |
3,244 |
5,234 |
(1,310) |
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Provision for income taxes (benefit) |
728 |
465 |
517 |
341 |
683 |
1,192 |
1,964 |
(570) |
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Net income |
$ 1,259 |
$ 793 |
$ 735 |
$ 632 |
$ 1,158 |
$ 2,052 |
$ 3,270 |
$ (740) |
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Share and Per Share Data: |
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Earnings per share - basic |
$ 0.18 |
$ 0.12 |
$ 0.11 |
$ 0.09 |
$ 0.17 |
$ 0.30 |
$ 0.47 |
$ (0.11) |
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Earnings per share - diluted |
$ 0.18 |
$ 0.12 |
$ 0.11 |
$ 0.09 |
$ 0.17 |
$ 0.30 |
$ 0.47 |
$ (0.11) |
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Book value per share |
$ 8.00 |
$ 7.93 |
$ 7.84 |
$ 7.76 |
$ 7.66 |
8.01 |
7.66 |
7.08 |
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Tangible book value per share |
$ 7.97 |
$ 7.89 |
$ 7.79 |
$ 7.72 |
$ 7.61 |
7.98 |
7.61 |
6.99 |
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Ending shares outstanding |
6,921,352 |
6,916,506 |
6,913,636 |
6,913,636 |
6,913,636 |
6,916,233 |
6,913,636 |
6,913,636 |
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Weighted average shares outstanding: |
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Basic |
6,921,352 |
6,914,934 |
6,913,636 |
6,913,636 |
6,913,636 |
6,916,233 |
6,913,636 |
6,913,636 |
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Diluted |
6,922,942 |
6,916,011 |
6,914,345 |
6,914,085 |
6,913,636 |
6,917,471 |
6,913,636 |
6,913,636 |
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Selected Performance Ratios: |
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Return on average assets |
0.91% |
0.56% |
0.50% |
0.44% |
0.83% |
0.73% |
1.15% |
-0.24% |
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Return on average equity |
9.09% |
5.86% |
5.37% |
4.69% |
8.82% |
7.52% |
12.76% |
-2.95% |
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Net interest margin |
3.61% |
3.37% |
3.33% |
3.49% |
3.63% |
3.49% |
3.64% |
3.92% |
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Efficiency ratio (1) |
69.97% |
77.20% |
77.04% |
78.21% |
79.59% |
73.50% |
78.36% |
81.30% |
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Period End Balance Sheet Data: |
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Loans, held for sale |
$ 406 |
$ 432 |
$ - |
$ - |
$ - |
$ 406 |
$ - |
$ - |
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Loans, net of unearned income |
355,651 |
360,431 |
367,892 |
386,096 |
390,403 |
355,245 |
390,403 |
458,523 |
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Total Earning Assets |
499,819 |
523,675 |
543,674 |
525,962 |
515,397 |
499,819 |
515,397 |
583,854 |
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Core Deposit Intangible |
240 |
269 |
298 |
327 |
356 |
240 |
356 |
622 |
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Total Assets |
550,008 |
567,517 |
585,453 |
577,833 |
563,682 |
550,008 |
563,682 |
629,135 |
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Deposits |
465,489 |
482,983 |
498,559 |
481,320 |
471,184 |
465,489 |
471,184 |
538,812 |
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Short term debt |
13,858 |
14,658 |
17,848 |
26,195 |
22,953 |
13,858 |
22,953 |
23,746 |
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Long term debt |
12,372 |
12,372 |
12,372 |
12,372 |
12,372 |
12,372 |
12,372 |
14,372 |
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Shareholders' equity |
55,403 |
54,840 |
54,179 |
53,671 |
52,954 |
55,403 |
52,954 |
48,965 |
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Selected Average Balances: |
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Gross Loans |
$ 359,559 |
$ 365,871 |
$ 375,413 |
$ 386,217 |
$ 396,190 |
$ 362,698 |
$ 402,600 |
$ 463,263 |
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Total Earning Assets |
512,953 |
537,230 |
530,344 |
520,852 |
514,147 |
525,024 |
524,732 |
579,642 |
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Core Deposit Intangible |
252 |
283 |
310 |
339 |
379 |
267 |
454 |
659 |
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Total Assets |
557,298 |
577,092 |
580,974 |
569,048 |
563,850 |
567,141 |
574,232 |
631,205 |
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Deposits |
472,986 |
489,150 |
485,844 |
474,069 |
471,829 |
481,024 |
483,739 |
577,956 |
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Short term debt |
13,851 |
18,215 |
23,961 |
24,609 |
22,961 |
16,021 |
23,719 |
23,863 |
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Long term debt |
12,372 |
12,372 |
12,372 |
12,372 |
12,372 |
12,372 |
12,372 |
14,372 |
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Shareholders' equity |
55,529 |
54,890 |
54,352 |
53,619 |
52,783 |
55,211 |
51,541 |
50,525 |
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Asset Quality Ratios: |
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Nonperforming loans |
$ 15,656 |
$ 11,180 |
$ 14,094 |
$ 18,613 |
$ 16,579 |
$ 14,518 |
$ 16,579 |
$ 16,307 |
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Other real estate owned |
2,370 |
2,340 |
2,833 |
2,849 |
3,859 |
2,370 |
3,859 |
3,380 |
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Allowance for loan losses |
7,218 |
7,775 |
7,897 |
8,588 |
8,510 |
7,218 |
8,510 |
10,378 |
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Nonperforming loans (2) to period-end loans (4) |
4.40% |
3.10% |
3.83% |
4.82% |
4.25% |
4.09% |
4.25% |
3.56% |
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Allowance for loan losses to period-end loans (4) |
2.03% |
2.16% |
2.15% |
2.22% |
2.18% |
2.03% |
2.18% |
2.26% |
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Delinquency Ratio (3) |
0.87% |
0.79% |
0.32% |
0.47% |
0.77% |
0.87% |
0.77% |
0.48% |
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Net loan charge-offs to average loans |
0.20% |
0.02% |
0.85% |
0.11% |
-0.42% |
0.11% |
0.63% |
1.43% |
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(1) Efficiency ratio is calculated as non-interest expenses divided by the sum of net |
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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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(4) Excludes loans held for sale |
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SOURCE New Century Bancorp
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