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

Jan 27, 2010, 14:54 ET from Select Bancorp, Inc.

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


SOURCE Select Bancorp, Inc.



RELATED LINKS

http://www.selectbankandtrust.com