DUNN, N.C., Nov. 1, 2013 /PRNewswire/ --New Century Bancorp (the "Company" NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $650,000 for the quarter ended September 30, 2013, and basic and diluted earnings per share of $0.09, compared to net income of $632,000 and basic and diluted earnings per share of $0.09 for the third quarter of 2012. For the nine months ended September 30, 2013, net income was $2.7 million with basic and diluted earnings per share of $0.39, compared to $3.9 million and basic and diluted earnings per share of $0.57 for the nine months ended September 30, 2012, a period that reflected New Century's benefit from both a substantial loan recovery and a gain on the sale of branches in Pembroke and Raeford, NC.
Total assets, deposits, and loans for the Company as of September 30, 2013, were $545.0 million, $459.8 million, and $349.1 million, respectively, compared to total assets of $577.8 million, total deposits of $481.3 million, and total loans of $386.1 million as of the same date in 2012.
At the end of third quarter/early fourth quarter 2013, New Century made the following announcements:
- New Century Bancorp and Select Bancorp, Inc., the holding company for Select Bank & Trust Company, signed a strategic merger agreement on September 30, 2013. Subject to the approval of federal and state regulatory agencies and shareholders of both companies, plans call for the merger to close in mid-2014.
- New Century Bank opened its first full-service office in Raleigh, the capital of North Carolina, on October 1, 2013, establishing a branch presence in the Wake County market. The branch is located at 8470 Falls of Neuse Road, near the I-540 interchange.
Commenting on third quarter results, New Century President and CEO William L. Hedgepeth II said, "We are pleased with our performance results to-date in 2013. While challenges persist in both the regulatory environment and the U.S. economy, we are meeting those challenges in a focused, disciplined manner. We look forward to our planned partnership with Select Bancorp, and the additional markets and customers we will serve as a result. This is an exciting time for not only New Century, but for Select and all of our shareholders, customers and communities, as we come together to form one larger, stronger community bank.
"I would be remiss to not note that when the FDIC released deposit market share data as of June 30, 2013, New Century Bank once again held the #1 position for deposit market share in Dunn, North Carolina, our headquarters city. Our staff takes a great deal of pride in having held this position for eleven straight years, as they should. They are to be commended on their hard work and this result. While this is a particularly outstanding record, many of our branches are highly ranked in their respective cities and counties with regard to deposit market share, including, that we hold the #1 position among community banks in Cumberland, Harnett, and Sampson counties. The staff members at offices in these counties also are to be congratulated."
New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, and Raleigh, and a loan production office in Greenville.
The information as of and for the quarter ended September 30, 2013, 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.
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 nine months ended | |||||||||||||||
September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | September 30, 2013 | September 30, 2012 | September 30, 2011 | |||||||||
Summary of Operations: | ||||||||||||||||
Total interest income | $ 5,600 | $ 5,968 | $ 5,878 | $ 5,990 | $ 6,198 | $ 17,447 | $ 19,142 | $ 23,297 | ||||||||
Total interest expense | 1,299 | 1,355 | 1,418 | 1,552 | 1,623 | 4,072 | 5,080 | 6,522 | ||||||||
Net interest income | 4,301 | 4,613 | 4,460 | 4,438 | 4,575 | 13,375 | 14,062 | 16,775 | ||||||||
Provision for loan losses | (130) | (375) | (100) | - | 189 | (605) | (2,597) | 5,900 | ||||||||
Net interest income after provision | 4,431 | 4,988 | 4,560 | 4,438 | 4,386 | 13,980 | 16,659 | 10,875 | ||||||||
Noninterest income | 624 | 755 | 619 | 1,015 | 757 | 1,997 | 2,582 | 2,176 | ||||||||
Noninterest expense | 3,912 | 3,756 | 3,921 | 4,201 | 4,170 | 11,590 | 13,034 | 14,531 | ||||||||
Income before income taxes | 1,143 | 1,987 | 1,258 | 1,252 | 973 | 4,387 | 6,207 | (1,480) | ||||||||
Provision for income taxes (benefit) | 493 | 728 | 465 | 517 | 341 | 1,685 | 2,305 | (718) | ||||||||
Net income | $ 650 | $ 1,259 | $ 793 | $ 735 | $ 632 | $ 2,702 | $ 3,902 | $ (762) | ||||||||
Share and Per Share Data: | ||||||||||||||||
Earnings per share - basic | $ 0.09 | $ 0.18 | $ 0.12 | $ 0.11 | $ 0.09 | $ 0.39 | $ 0.57 | $ (0.11) | ||||||||
Earnings per share - diluted | $ 0.09 | $ 0.18 | $ 0.12 | $ 0.11 | $ 0.09 | $ 0.39 | $ 0.57 | $ (0.11) | ||||||||
Book value per share | $ 8.09 | $ 8.00 | $ 7.93 | $ 7.84 | $ 7.76 | $ 8.09 | $ 7.76 | $ 7.14 | ||||||||
Tangible book value per share | $ 8.06 | $ 7.97 | $ 7.89 | $ 7.79 | $ 7.72 | $ 8.06 | $ 7.72 | $ 7.05 | ||||||||
Ending shares outstanding | 6,921,352 | 6,921,352 | 6,916,506 | 6,913,636 | 6,913,636 | 6,921,352 | 6,913,636 | 6,860,367 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 6,921,352 | 6,921,352 | 6,914,934 | 6,913,636 | 6,913,636 | 6,917,958 | 6,892,946 | 6,896,102 | ||||||||
Diluted | 6,924,142 | 6,922,942 | 6,916,011 | 6,914,345 | 6,914,085 | 6,919,507 | 6,893,064 | 6,896,102 | ||||||||
Selected Performance Ratios: | ||||||||||||||||
Return on average assets | 0.47% | 0.91% | 0.56% | 0.50% | 0.44% | 0.64% | 0.91% | -0.16% | ||||||||
Return on average equity | 4.61% | 9.09% | 5.86% | 5.37% | 4.69% | 6.52% | 9.98% | -2.03% | ||||||||
Net interest margin | 3.41% | 3.61% | 3.37% | 3.33% | 3.49% | 3.46% | 3.61% | 3.85% | ||||||||
Efficiency ratio (1) | 79.43% | 69.97% | 77.20% | 77.04% | 78.21% | 75.39% | 78.31% | 76.68% | ||||||||
Period End Balance Sheet Data: | ||||||||||||||||
Loans, held for sale | $ - | $ 406 | $ 432 | $ - | $ - | $ - | $ - | $ - | ||||||||
Loans, net of unearned income | 349,087 | 355,651 | 360,431 | 367,892 | 386,096 | 349,087 | 386,096 | 439,410 | ||||||||
Total Earning Assets | 505,489 | 499,819 | 523,675 | 543,674 | 525,962 | 505,489 | 525,962 | 564,928 | ||||||||
Core Deposit Intangible | 211 | 240 | 269 | 298 | 327 | 211 | 327 | 583 | ||||||||
Total Assets | 545,018 | 550,008 | 567,517 | 585,453 | 577,833 | 545,018 | 577,833 | 616,580 | ||||||||
Deposits | 459,811 | 465,489 | 482,983 | 498,559 | 481,320 | 459,811 | 481,320 | 527,172 | ||||||||
Short term debt | 14,207 | 13,858 | 14,658 | 17,848 | 26,195 | 14,207 | 26,195 | 23,850 | ||||||||
Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 14,372 | ||||||||
Shareholders' equity | 55,991 | 55,403 | 54,840 | 54,179 | 53,671 | 55,991 | 53,671 | 48,949 | ||||||||
Selected Average Balances: | ||||||||||||||||
Gross Loans | $ 347,142 | $ 359,559 | $ 365,871 | $ 375,413 | $ 386,217 | $ 357,456 | $ 397,099 | $ 458,676 | ||||||||
Total Earning Assets | 500,079 | 512,953 | 537,230 | 530,344 | 520,852 | 516,618 | 520,492 | 582,777 | ||||||||
Core Deposit Intangible | 223 | 252 | 283 | 310 | 339 | 252 | 415 | 640 | ||||||||
Total Assets | 548,460 | 557,298 | 577,092 | 580,974 | 569,048 | 560,995 | 572,482 | 629,372 | ||||||||
Deposits | 462,994 | 472,986 | 489,150 | 485,844 | 474,069 | 474,948 | 480,492 | 537,884 | ||||||||
Short term debt | 13,929 | 13,851 | 18,215 | 23,961 | 24,609 | 14,832 | 24,018 | 22,075 | ||||||||
Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 16,372 | ||||||||
Shareholders' equity | 55,911 | 55,529 | 54,890 | 54,352 | 53,619 | 55,447 | 52,239 | 50,299 | ||||||||
Asset Quality Ratios: | ||||||||||||||||
Nonperforming loans | $ 17,400 | $ 15,656 | $ 11,180 | $ 12,030 | $ 18,613 | $ 17,400 | $ 18,613 | $ 20,116 | ||||||||
Other real estate owned | 2,164 | 2,370 | 2,340 | 2,833 | 2,849 | 2,164 | 2,849 | $ 3,230 | ||||||||
Allowance for loan losses | 6,858 | 7,218 | 7,775 | 7,897 | 8,588 | 6,858 | 8,588 | $ 10,338 | ||||||||
Nonperforming loans (2) to period-end loans (4) | 4.98% | 4.40% | 3.10% | 3.27% | 4.82% | 4.98% | 4.82% | 4.58% | ||||||||
Allowance for loan losses to period-end loans (4) | 1.96% | 2.03% | 2.16% | 2.15% | 2.22% | 1.96% | 2.22% | 2.35% | ||||||||
Delinquency Ratio (3) | 0.16% | 0.87% | 0.79% | 0.32% | 0.47% | 0.16% | 0.47% | 0.93% | ||||||||
Net loan charge-offs to average loans | 0.26% | 0.20% | 0.02% | 0.85% | 0.11% | 0.16% | -0.42% | -0.37% | ||||||||
(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) Excludes loans held for sale | ||||||||||||||||
SOURCE New Century Bancorp
