DUNN, N.C., April 13 /PRNewswire-FirstCall/ -- New Century Bancorp will file its Annual Report on Form 10-K on or before the extension deadline of Tuesday, April 17, reporting $3.97 million in net income for the year ended December 31, 2006. The report will reflect a $770,000 after-tax adjustment to preliminary net income of $4.73 million originally reported in February. The adjustment is the result of management's assessment of certain credit relationships and involved an increase to the Company's provision for loan losses of $1.25 million before taxes. Basic and diluted earnings per share for 2006 were $0.69 and $0.65, respectively, instead of basic and diluted earnings per share of $0.82 and $0.78, respectively, as originally reported in February.
According to New Century Bancorp President and CEO Bill Hedgepeth, "While our 2006 earnings were not as high as originally reported, we achieved record earnings for 2006. Now, our team is moving forward with plans to achieve our goals in 2007 and beyond. New Century's culture of neighbor helping neighbor service has always been strong and will continue to be strong."
New Century Bancorp, the holding company for New Century Bank and New Century Bank South, had total assets of $552 million as of December 31, 2006. New Century Bank is headquartered in Dunn and has branch offices in Clinton, Goldsboro, and Lillington; and New Century Bank South is headquartered in Fayetteville with branch offices in Dublin, Lumberton, Pembroke, and Raeford.
The information for year end December 31, 2006, 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, 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. 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.
Financial Highlights
(Unaudited - dollars in thousands except per share and ratios)
At or for At or
the three months for the year
Ended Dec. 31, Ended Dec. 31,
2006 2005 2006 2005
Operating Data:
Total interest income $10,190 $7,155 $35,812 $24,679
Total interest expense 4,785 3,028 16,167 10,089
Net interest income 5,405 4,127 19,645 14,590
Provision for loan losses 1,659 469 2,779 2,172
Net interest income after
provision 3,746 3,658 16,866 12,418
Noninterest income 1,182 751 3,278 2,496
Noninterest expense 4,035 2,558 13,816 9,129
Income before income taxes 893 1,851 6,328 5,785
Provision for income taxes 354 841 2,358 2,164
Net income $539 $1,010 $3,970 $3,621
Share and Per Share Data (1):
Earnings per share - basic $0.08 $0.20 $0.69 $0.72
Earnings per share - diluted 0.08 0.18 0.65 0.66
Book value per share 8.84 6.48 8.84 6.48
Tangible book value per share 7.30 6.48 7.30 6.48
Ending number of shares
outstanding 6,497,022 5,089,248 6,497,022 5,089,248
Average number of shares
outstanding 6,492,748 5,081,363 5,784,671 5,061,791
Diluted number of shares
outstanding 6,799,966 5,507,994 6,115,709 5,478,658
Selected Performance Ratios,
annualized:
Return on average assets 0.39% 0.96% 0.81% 0.95%
Return on average equity 3.70% 12.22% 8.70% 11.47%
Net interest margin 4.20% 4.14% 4.28% 4.02%
Efficiency Ratio (2) 61.26% 52.44% 60.27% 53.43%
Selected Period End Balance
Sheet Data:
Loans, net of unearned
income $429,500 $326,852 $429,500 $326,852
Total earning assets 508,263 412,323 508,263 412,323
Goodwill and other
intangible assets 9,988 - 9,988 -
Total assets 552,965 436,367 552,965 436,367
Deposits 464,117 367,003 464,117 367,003
Short term debt 16,441 21,743 16,441 21,743
Long term debt 12,372 12,372 12,372 12,372
Shareholders' equity 57,439 32,974 57,439 32,974
Selected Average Balances: 4th qtr YTD
Loans, net of unearned income 412,798 325,248 369,110 301,457
Total earning assets 510,206 395,916 458,974 362,669
Goodwill and other intangible
assets 9,274 - 4,087 -
Total assets 553,171 416,958 491,849 381,440
Deposits 460,516 349,763 412,078 317,648
Short term debt 14,978 10,156 12,351 7,677
Long term debt 16,790 22,372 19,180 23,049
Shareholders' equity 57,871 32,784 45,614 31,583
Asset Quality:
Nonperforming assets 2,821 1,271 2,821 1,271
Allowance for loan losses 7,496 5,298 7,496 5,298
Allowance for loan losses to
period-end loans 1.75% 1.62% 1.75% 1.62%
Net loan charge-offs to average
loans 0.11% 0.32% 0.27% 0.16%
(1) Adjusted for all periods presented to reflect the effect of a 3-for-2
stock split effective July 2005 and a 6-for-5 stock split effective
December 2006:
(2) Efficiency ratio is non-interest expense divided by the sum of net
interest income and non-interest income
