Select Bancorp Reports Fourth Quarter And Year-End 2014 Earnings

DUNN, N.C., Feb. 2, 2015 /PRNewswire/ -- Select Bancorp, Inc. (the "Company," or "Select")(NASDAQ: SLCT), the holding company for Select Bank & Trust, today reported net income for year-end 2014 of $2.4 million and basic and diluted earnings per share of $0.27, compared to $2.9 million and basic and diluted earnings per share of $0.43 for the year ended December 31, 2013.

Results for 2013 were reported as New Century Bancorp, the Company's name until July 25, 2014, when it acquired the "Legacy" Select Bancorp, Inc. and took that name. The merger impacts all year-to-year and fourth quarter 2013 to fourth quarter 2014 comparisons, including the impact of merger-related expenses.

For fourth quarter 2014, the Company reported net income of $1.3 million and basic and diluted earnings per share of $0.12, compared to net income of $239,000 and basic and diluted earnings per share of $0.03 for fourth quarter 2013. This increase in earnings is primarily due to the merger.

Total assets, deposits, and loans for the Company as of December 31, 2014, were $764.5 million, $618.9 million, and $552.0 million, respectively, compared to total assets of $525.6 million, total deposits of $448.5 million, and total loans of $346.5 million at year-end 2013. Reflected in the year-end 2014 totals are the acquired assets, deposits and loans of the Legacy Select Bancorp, which had total assets, deposits and loans of $276.9 million, $222.2 million and $217.6 million, respectively, as of July 25, 2014.

Non-performing loans declined to $11.9 million at December 31, 2014, or 2.15% of loans, from $15.9 million or 4.58% of loans at December 31, 2013. At year-end 2014, other real estate and repossessed assets totaled $1.6 million and the allowance for loan losses was $6.8 million or 1.24% of total loans, down from $7.1 million or 2.04% of total loans at December 31, 2013. For fourth quarter 2014, net loan charge-offs were a recovery of ($139,000) or -0.03% of average loans, down from $518,000 or 0.15% of average loans for fourth quarter 2013.

On these results, Select Bancorp, Inc. President and CEO William L. Hedgepeth II said, "We are pleased with the impact of our early third quarter merger with the 'Legacy' Select Bank, and performance results to-date, including pre-tax operating earnings from their financial centers, met our projections. We look forward to utilizing the combined resources of the merged bank to further expand in the markets we now serve. This is an exciting time for not only Select, but for our shareholders, customers and communities, as we operate today as a larger, stronger community bank. With expenses stabilizing, revenues continuing to grow, and our financial centers becoming increasingly profitable, we look forward to the first half of 2015."

Hedgepeth added, "Asset quality is strong and remains a top priority at Select. As I have said many times: We will compete for loans based on interest rate, but we will not sacrifice credit quality. Our asset quality numbers reflect the prudence of this strategy. In addition to operating in markets with healthy economies, we will continue to seek prime locations for expansion and to identify and hire outstanding bankers and lenders in those markets. These people, like many of our current staff, are known in their markets and are astute, highly-skilled business people with exceptionally loyal client bases."

The Company's strategy is to focus on growing the franchise, increasing profitability, and maintaining exceptional asset quality.

When the FDIC released deposit market share data as of June 30, 2014, Select Bank held the number one position for deposit market share in Dunn, North Carolina where it is headquartered, a position the Company held under the New Century name for the past thirteen years.

Hedgepeth concluded his remarks by sharing, "Our staff takes a great deal of pride in these deposit market share results, particularly holding the number one position for thirteen straight years. They are to be commended for their hard work, as are all team members in our financial centers with outstanding deposit market share results. They are not easy to achieve."

Select Bank and Trust has branch offices in these North Carolina communities: Dunn, Burlington, Clinton, Elizabeth City, Fayetteville (2), Gibsonville, Goldsboro, Greenville (2), Lillington, Lumberton, Raleigh and Washington.

For more information, go to selectbank.com.

The information as of and for the quarter and year ended December 31, 2014, 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.

SOURCE Select Bancorp, Inc.

Related Links

http://selectbank.com