New Century Bancorp Reports Third Quarter 2011 Results

DUNN, N.C., Nov. 4, 2011 /PRNewswire/ -- New Century Bancorp (the "Company"NASDAQ: NCBC), the holding company for New Century Bank, today reported financial results for third quarter 2011.  For the quarter ended September 30, 2011, the Company reported a net loss of $22,000, and for the nine-month period ended as of the same date, the Company reported a net loss of $762,000.  By comparison, for the third quarter of 2010, the Company reported a net loss of $6.6 million, and a net loss of $5.1 million for the nine-month period ended September 30, 2010.  Basic and diluted per share results for third quarter 2011 were ($0.00), and basic and diluted per share losses for third quarter 2010 were ($0.96).  For the nine-month period ended September 30, 2011, basic and diluted losses per share were ($0.11) and for the same period in 2010, basic and diluted losses per share were ($0.74).

Total assets for the Company at September 30, 2011, were $616.6 million, total deposits were $527.2 million, and total loans were $439.4 million, compared to total assets of $643.2 million, total deposits of $548.9 million, and total loans of $467.9 million as of the same date in 2010.

"While we still have a lot to do, progress is being made," shared William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank, "These continue to be challenging times for New Century Bank and for the banking industry as a whole. A great deal of time and effort have been put into addressing any issues we have and into understanding and addressing new and ever-changing regulatory issues as well as other industry challenges.  While we have struggled, we did not take taxpayer money, choosing instead to work diligently to manage our Company on our own.

"We reported a comparatively small loss for third quarter, in spite of having added nearly $2.2 million to our provision for loan losses. While this is a challenge for New Century Bank, it is no less of one for customers who find themselves, often through no fault of their own, in a situation where they simply can no longer meet their obligations. Loans were made and accepted in good faith, but an unrelenting recession with no real recovery in sight, continues after nearly four years. We are smaller than we were at this time last year; however, our current size is the result of purposeful decisions and an intense focus on managing our balance sheet."

Key indicators for the quarter include:

• According to recently released FDIC data, New Century Bank maintained the number one position with regard to deposit marketshare in the Company's headquarters city of Dunn, NC, a position it has held for 9 straight years.    
• The Company's efficiency ratio is improved on a linked-quarter basis as well as in a same quarter comparison between 2011 and 2010.  Standing at 67.03% for the quarter ended September 30, 2011, 82.18% for the quarter ended June 30, 2011, and at 71.51% for the quarter ended September 30, 2010.  
• Non-interest expense is down on a linked-quarter basis as well as in a same quarter comparison between 2011 and 2010.  For third quarter 2011, non-interest expense was $4.1 million, compared to $5.3 million for second quarter 2011 and $4.7 million for third quarter 2010.
• Even though net interest margin is down slightly on a quarter-to-quarter basis and when compared to net interest margin for third quarter 2010, it remained strong at 3.77% for third quarter 2011.

The past several months saw key leaders assume roles with New Century Bank and with the Company.  In August, Celia DeBiase was named to New Century Bank's executive management team as its first chief risk officer and in October, General Dan McNeill, U.S. Army (Retired), was appointed to the New Century Bancorp Board of Directors.

"We are already benefiting from the expertise and guidance of these two professionals," Hedgepeth said. "They will serve our shareholders well."    

New Century Bancorp (NASDAQ: NCBC), the holding company for New Century Bank and is headquartered in Dunn and 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 nine-months ended September 30, 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.

www.newcenturybanknc.com

SOURCE New Century Bancorp