New Century Reports Year-End and Fourth Quarter 2010 Results

Mar 31, 2011, 17:59 ET from New Century Bancorp

DUNN, N.C., March 31, 2011 /PRNewswire/ -- For the quarter ended December 31, 2010, New Century Bancorp (the "Company") reported net income of $125,000 and basic and diluted earnings per share of $0.02. For the year ended as of the same date, New Century Bancorp reported a net loss of ($4.96) million and basic and diluted losses per share of ($0.72).

At December 31, 2010, the Company held total assets of $626.9 million, total deposits of $534.6 million and total loans of $470.5 million. At December 31, 2009, these figures stood at total assets of $630.4 million, total deposits of $540.3 million, and total loans of $481.2 million.

New Century Bancorp President and CEO William L. Hedgepeth II commented on the results, saying, "It is difficult to report these year-end results in light of the work we have done and the progress that has been made as we use a disciplined approach to managing the Company. Through June 30, 2010, we reported net income of $1.5 million and were on track for a successful 2010, prior to reporting an alleged fraud that resulted in an addition to our loan loss provision of $10.8 million."

Highlights for 2010 include:

  • Without the addition to provision specifically to address the alleged fraud, it is estimated the Company would have reported a profitable year in 2010.
  • Net interest margin improved to 4.03%, compared to 3.49% for 2009, and 3.27% for 2008.
  • On May 24, we celebrated the 10th anniversary of the opening of New Century Bank (the "Bank"), a wholly-owned subsidiary of New Century Bancorp.
  • While noninterest expenses were higher for the year, much of the additional expense can be attributed to the conversion to a new core operating system, and other investments in the future of the Bank. The new core operating system allows us to meet the changing financial services needs of our customers and will help position the Bank for its next decade of growth and success.
  • New Century Bank gained market share in Dunn, our headquarters city, allowing us to maintain the position of #1 in deposit market share in Dunn – a position we have held for 8 straight years. In addition, we gained deposit market share in Harnett and Cumberland counties and the town of Lillington. (According to FDIC data as of June 30, 2010.)
  • Throughout 2010, we worked with an outside firm to assist the Company in identifying areas in which we can gain efficiencies and areas where we have revenue potential.

Hedgepeth said, "In 2011, we will help our customers as they work through a continuing difficult economy and as they begin to recover, hopefully enabling them to 'power their plans' for a great future—whatever it holds. For New Century, we will stay the course, following our disciplined approach—an approach that, without extraordinary events, had us on track toward our overall goals. We remain committed to employing every legal remedy available to us in recovering losses resulting from the alleged fraud that impacted the Company. On behalf of everyone at New Century, we look forward to a great year in 2011."

New Century Bancorp, which through New Century Bank has offices in Dunn, Clinton, Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford, as well as a loan production office in Greenville, NC, remains well-capitalized and deposits held by the bank are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor.

The information as of and for the quarter and year-ended December 31, 2010 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.







Selected Financial Information and Other Data







($ in thousands, except per share data)









At or for the three months ended


At or for the twelve months ended




















December 31, 2010


September 30, 2010


June 30, 2010


March 31, 2010


December 31, 2009


December 31, 2010


December 31, 2009


December 31, 2008

Summary of Operations:

















Total interest income

$                   8,327


$                    8,428


$          8,524


$            8,333


$                   8,433


$                 33,610


$                 33,030


$                 35,237


Total interest expense

2,361


2,439


2,434


2,446


2,821


9,680


13,122


17,372


Net interest income

5,966


5,989


6,090


5,887


5,612


23,930


19,908


17,865


Provision for loan losses

1,267


12,457


639


1,270


995


15,634


5,472


4,283


Net interest income after provision

4,699


(6,468)


5,451


4,617


4,617


8,296


14,436


13,582


Noninterest income

686


648


670


667


766


2,678


3,098


3,124


Goodwill Impairment

-


-


-


-


8,674


-


8,674


-


Noninterest expense

5,357


4,746


4,497


4,606


4,796


19,213


17,375


17,138


  Income (loss) before income taxes

28


(10,566)


1,624


678


(8,087)


(8,239)


(8,515)


(432)


Provision for income taxes (benefit)

(97)


(3,955)


549


221


141


(3,284)


(73)


(239)


Net income (loss)

$                      125


$                  (6,611)


$          1,075


$               457


$                 (8,228)


$                 (4,955)


$                 (8,442)


$                    (193)


















Share and Per Share Data:

















Earnings (loss) per share - basic

$                     0.02


$                    (0.96)


$            0.16


$              0.07


$                   (1.20)


$                   (0.72)


$                   (1.24)


$                   (0.03)


Earnings (loss) per share - diluted

0.02


(0.96)


0.16


0.07


(1.20)


(0.72)


(1.24)


(0.03)


Book value per share

7.19


7.22


8.19


8.03


7.96


7.19


7.96


9.17


Tangible book value per share

7.09


7.11


8.08


7.91


7.83


7.09


7.83


7.76


Ending shares outstanding

6,913,636


6,913,636


6,891,784


6,837,952


6,837,952


6,913,636


6,837,952


6,831,149


Weighted average shares outstanding:

















  Basic

6,913,636


6,908,466


6,846,437


6,837,952


6,837,863


6,875,845


6,834,595


6,809,437


  Diluted

6,913,636


6,908,466


6,862,095


6,845,714


6,837,863


6,875,845


6,834,595


6,809,437


















Selected Performance Ratios:

















Return on average assets

0.08%


-3.97%


0.66%


0.30%


-5.09%


-0.77%


-1.34%


-0.03%


Return on average equity

0.97%


-46.47%


7.69%


3.34%


-51.24%


-9.05%


-13.28%


-0.31%


Net interest margin (4)

3.99%


3.85%


4.00%


4.08%


3.74%


4.03%


3.49%


3.27%


Efficiency ratio (1)

80.53%


71.51%


66.52%


70.28%


75.20%


72.71%


75.52%


81.00%


















Period End Balance Sheet Data:

















Loans, net of unearned income

$               470,484


$                467,876


$      490,883


$        496,448


$               481,176


$               470,484


$               481,176


$               460,626


Total Earning Assets

580,169


594,425


619,867


602,436


588,536


580,169


588,536


560,534


Goodwill and other intangible assets

699


737


776


814


853


699


853


9,680


Total Assets

626,896


643,185


663,001


642,883


630,635


626,897


630,419


605,767


Deposits

534,599


548,866


566,031


542,348


540,262


534,599


540,262


505,119


Short term debt

23,666


20,138


20,138


21,744


20,564


23,666


20,564


23,175


Long term debt

16,372


18,372


18,372


18,372


12,372


16,372


12,372


12,372


Shareholders' equity

49,692


49,906


56,442


54,934


54,409


49,692


54,409


62,659


















Selected Average Balances:

















Gross Loans

$               475,149


$                486,453


$      493,396


$        483,665


$               476,845


$               484,647


$               471,059


$               451,558


Total Earning Assets

593,296


617,217


610,290


585,277


595,250


599,152


578,372


554,798


Goodwill and other intangible assets

717


756


794


832


9,451


775


9,578


9,756


Total Assets

641,571


660,032


651,861


625,307


641,254


644,904


630,521


599,913


Deposits

549,610


560,942


553,067


531,115


538,643


548,768


527,844


504,188


Short term debt

21,760


20,736


20,736


21,802


23,498


23,146


23,891


18,615


Long term debt

16,372


18,372


18,372


13,972


12,372


16,372


12,372


12,372


Shareholders' equity

50,974


56,441


56,093


55,533


63,710


54,750


63,584


62,107


















Asset Quality Ratios:

















Nonperforming loans

$                 12,250


$                    9,678


$        13,885


$          18,956


$                 16,048


$                 12,250


$                 16,048


$                   8,630


Other real estate owned

3,655


3,812


3,215


2,680


2,530


3,655


2,530


2,799


Allowance for loan losses

10,015


8,081


10,006


11,232


10,359


10,015


10,359


8,860


Nonperforming loans (2) to period-end loans

2.60%


2.07%


2.83%


3.82%


3.34%


2.60%


3.34%


1.87%


Allowance for loan losses to period-end loans

2.13%


1.73%


2.04%


2.26%


2.15%


2.13%


2.15%


1.92%


Delinquency Ratio (3)

0.45%


1.23%


0.75%


0.45%


0.41%


0.45%


0.41%


0.32%


Net loan charge-offs to average loans

-0.56%


13.57%


1.39%


0.05%


0.79%


3.30%


0.84%


0.82%





































































(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)  Fully taxable equivalent basis  



SOURCE New Century Bancorp



RELATED LINKS

http://www.newcenturybanknc.com