Select Bancorp Reports First Quarter 2010 Earnings

GREENVILLE, N.C., April 20 /PRNewswire/ --

• Net income for first quarter 2010 is $151,000, more than double first quarter 2009.
• Annual growth of 20% for assets, 40% for deposits, and 26% for loans.
• Select acquired the Elizabeth City office of Worthington Federal Bank on December 31, 2009.

For the quarter ended March 31, 2010, Select Bancorp ("Select"), the holding company for Select Bank & Trust Company, reported net income of $151,000 compared to $71,000 for the same period in 2009, an increase of 113%.  Earnings per share ("EPS") for the quarter ended March 31, 2010 were $0.08, double the EPS of $0.04 reported for the quarter ended March 31, 2009.

As of March 31, 2010, the Company reported total assets of $176.7 million, an increase of 20% over total assets of $147.8 million as of March 31, 2009.  Total deposits grew 40% to $136.3 million and total loans are up 26% to $129.8 million, over total deposits of $97.6 million and total loans of $102.7 million reported March 31, 2009.  

"We are pleased to report improving earnings, solid balance sheet growth and excellent asset quality," said Mark A. Holmes, president and CEO of Select.  "To report year-over-year increases in assets, deposits, and loans of 20%, 40%, and 26%, respectively, is positive performance at any time.  To report our twentieth consecutive profitable quarter and double-digit growth in assets, deposits, and loans in a year-to-year comparison in light of current economic conditions is exceptional.

"While many banks continue to struggle with credit quality issues which adversely impact earnings, the quality of our loan portfolio remains strong.  Non-accrual loans at March 31, 2009, stood at $47,499, or 0.04% of outstanding loans and loan loss reserves, the provision against potential loan losses, was $1.8 million or 1.37% of outstanding loans.  This speaks to our credit culture, the strength of the markets we serve, and our continued adherence to a common sense approach to banking.

"We completed our acquisition of Worthington Federal Bank's Elizabeth City office on December 31, 2009.  This is our third banking location and our first outside of Greenville/Pitt County.  We retained the entire staff of experience bankers and they are leading the way as we grow in Elizabeth City/Northeastern North Carolina."

In March, Select Bank introduced a new checking account that encourages "green" behaviors, such as e-statements, direct deposit, and online banking and bill pay.  EasyGreen Checking offers an annual percentage yield of 3.05% on account balances up to $25,000.

Select Bank & Trust is a community bank headquartered in Greenville, NC and currently serves Greenville/Pitt County through its headquarters office at 3600 Charles Boulevard, a second Greenville location at 3800 East Tenth Street and Elizabeth City/Northeastern North Carolina from 104 Nance Court just off Halstead Boulevard.

The information as of and for the quarter ended March 31, 2010, as presented is unaudited. This news release contains forward-looking statements. Actual results may differ materially from those projected, for various reasons,  including 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.

SOURCE Select Bancorp, Inc.