Select Bancorp Reports Year-End and Fourth Quarter 2009 Earnings

Company reports positive earnings, strong balance sheet growth and the completion of the Worthington Federal Bank-Elizabeth City office acquisition

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Select Bancorp, Inc.

Jan 27, 2010, 02:54 ET

GREENVILLE, N.C., Jan. 27 /PRNewswire/ -- Select Bancorp ("Select" or the "Company"), the holding company for Select Bank & Trust Co., today reported year-end and fourth quarter 2009 financial results. Net income for Select for the year-ended December 31, 2009, was $399,000, or earnings per share of $0.21, compared to net income of $856,000 for the twelve months ended December 31, 2008, or earnings per share of $0.45. For the quarter ended December 31, 2009, Select reported net income of $143,000, or earnings per share of $0.08, compared to net income of $203,000, or earnings per share of $0.11, for the same period in 2008.

As of December 31, 2009, Select reported total assets of $190.8 million, an increase of 40% over total assets of $136.0 million as of December 31, 2008. Total deposits grew 60% to $143.1 million and total loans are up 22% to $122.6 million, over total deposits of $89.7 million and total loans of $100.2 million reported December 31, 2008.

"While net income is down in a year-to-year comparison, Select is reporting positive earnings for the nineteenth consecutive quarter," said Mark A. Holmes, president and CEO of Select. "In light of current economic conditions, we are pleased with these results, as well as with our balance sheet growth over the past year. We had year-over-year increases in assets, deposits, and loans of 13%, 18%, and 19%, respectively, excluding the addition of Worthington Federal Bank's Elizabeth City office.

"The quality of our loan portfolio remains strong. Non-accrual loans stood at only $47,499 at December 31, 2009, or 0.04% of outstanding loans, while we maintain a reserve against potential loan losses of $1.6 million or 1.31% of outstanding loans.

"On December 31, 2009, we completed the acquisition of Worthington Federal Bank's Elizabeth City office. With an experienced and dedicated staff in place, managing approximately $37 million in deposits and $3 million in loans, we are already enjoying bringing Select's 'common sense approach to banking' to Elizabeth City and Northeastern North Carolina. We look forward to a great year in 2010."

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

The information as of and for the quarter and year ended December 31, 2009, 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.

Select Bancorp, Inc. and subsidiary
Balance Sheets (unaudited) December 31,			2009	2008
			(Dollars in thousands)
Assets
	Cash and due from banks		$ 37,350	$ 1,838
	Interest-earning deposits with banks		4,761	6,363
		Total cash and cash equivalents	42,111	8,201
Investment securities available for sale, at fair value			18,739	21,828
Loans receivable			122,565	100,250
Allowance for loan losses			1,564	1,212
		Net loans receivable	121,001	99,038
Bank premises & equipment, net			4,731	4,532
Other assets			4,183	2,353
		Total assets	$ 190,765	$ 135,952

Liabilities and Shareholders' Equity
Deposits:
	Demand deposits		$ 10,897	$ 8,416
	Savings, Money market & NOW		53,359	18,716
	Time deposits		78,856	62,574
		Total deposits	143,112	89,706
Other borrowed money			28,882	28,722
Accrued interest payable and other liabilities			831	421
		Total liabilities	172,825	118,849
		Total shareholders' equity	17,940	17,103
		Total liabilities and shareholders' equity	$ 190,765	$ 135,952

		Book value per share	$ 9.46	$ 9.02

Select Bancorp, Inc. and subsidiary
Statement of Operations (unaudited)		Twelve Months Ended, Dec 31,
		2009	2008
		(Dollars in thousands, except per share data)

Interest Income		7,040	6,725
Interest Expense		3,304	3,495

Net Interest Income		3,736	3,230
	Provision for loan losses	565	155

Net Int Income After Provision		3,171	3,075

	Service charges on deposit accounts	164	152
	Loan fees	48	65
	Mortgage banking operations	41	17
	Gains sale of securities	35	112
	Other	120	84
Total noninterest Income		408	430

	Personnel costs	1,333	1,168
	Occupancy and equipment	291	131
	Data processing fees	428	337
	Other	957	625
Total noninterest expense		3,009	2,261
	Income Before Income taxes	570	1,244
	Income taxes	171	388
	Net Income	399	856

	Net income (loss) per common share	$ 0.21	$ 0.45

Select Bancorp, Inc. and subsidiary
Statement of Operations (unaudited)		Three Months Ended, Dec 31,
		2009	2008
		(Dollars in thousands, except per share data)

Interest Income		1,868	1,700
Interest Expense		702	911

Net Interest Income		1,166	789
	Provision for loan losses	270	100

Net Int Income After Provision		896	689

	Service charges on deposit accounts	51	34
	Loan fees	9	12
	Mortgage banking operations	19	6
	Gains sale of securities	35	88
	Other	39	17
Total noninterest Income		153	157

	Personnel costs	365	253
	Occupancy and equipment	69	36
	Data processing fees	131	90
	Other	279	162
Total noninterest expense		844	541
	Income Before Income taxes	205	305
	Income taxes	62	102
	Net Income	143	203

	Net income (loss) per common share	$ 0.08	$ 0.11