DUNN, N.C., May 2 /PRNewswire-FirstCall/ -- New Century Bancorp (the "Company" - Nasdaq: NCBC), the holding company for New Century Bank, reported a net loss of $90,000 for the quarter ended March 31, 2008, or basic and diluted losses per share of ($0.01), compared to net income of $1.3 million or basic and diluted earnings per share of $0.20 and $0.19, respectively, for the same period in 2007.
First quarter results were impacted by a higher provision for loan losses of $873,000, compared to $150,000 for the same period in 2007. The increased provision was due to management's continuing analysis of impaired loans and the related reserves on those loans, and resulted in the percentage of allowance to total loans increasing to 2.05% at March 31, 2008 from 1.88% at December 31, 2007. A decrease in net interest margin resulted from the Company's asset sensitive position, coupled with the recent reductions in interest rates by the Federal Reserve. Additionally, the Company incurred a nonrecurring loss of $357,000 related to the purchase of loans that had previously been participated to another bank. This nonrecurring item is included in non-interest income.
As of March 31, 2008, the Company reported total assets of $603.4 million compared to $582.2 million at March 31, 2007, an increase of 3.6%. Total deposits were $508.9 million and total loans were $446.7 million compared to total deposits of $491.1 million and total loans of $446.2 million at the end of first quarter 2007.
"During first quarter 2008, we completed the legal merger of New Century Bank South into New Century Bank," Hedgepeth said. "Following that, we announced the formation of a new board of directors-formed from the members who had served on our Company boards-and a new chairman. In addition, we have continued to develop and implement processes that address concerns we have faced as an organization over the past year. While it is disappointing to report a loss for first quarter, our focus is on the future and all that we can accomplish."
New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton (2), Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford.
http://www.newcenturybanknc.com/
The information as of and for the quarter ended March 31, 2008 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. Selected Financial Information and Other Data ($ in thousands, except per share data) At or for the three months Ended March 31, 2008 2007 Summary of Operations: Total interest income $9,382 $10,020 Total interest expense 5,040 4,883 Net interest income 4,342 5,137 Provision for loan losses 873 150 Net interest income after provision 3,469 4,987 Noninterest income 487 911 Noninterest expense 4,098 3,874 Income (loss) before income taxes (142) 2,024 Provision for income taxes (52) 755 Net income (loss) $(90) $1,269 Share and Per Share Data: Earnings per share - basic $(0.01) $0.20 Earnings per share - diluted (0.01) 0.19 Book value per share 9.09 9.05 Tangible book value per share 7.65 7.52 Ending shares outstanding 6,799,183 6,502,782 Weighted average shares outstanding: Basic 6,764,291 6,500,367 Diluted 6,764,291 6,790,465 Selected Performance Ratios: Return on average assets (0.06%) 0.91% Return on average equity (0.58%) 8.79% Net interest margin 3.15% 4.00% Efficiency ratio (1) 84.86% 64.05% Period End Balance Sheet Data Loans, net of unearned income $446,699 $446,178 Total Earning Assets 558,092 537,254 Goodwill and other intangible assets 9,796 9,950 Total assets 603,402 582,216 Deposits 508,891 491,143 Short term debt 17,990 17,487 Long term debt 12,372 12,372 Shareholders' equity 61,822 58,994 Selected Average Balances: Loans, net of unearned income $442,636 $436,377 Total Earning Assets 552,797 520,657 Goodwill and other intangible assets 9,814 9,968 Total assets 599,692 563,934 Deposits 504,170 472,969 Short term debt 18,464 17,441 Long term debt 12,372 12,372 Shareholders' equity 62,271 58,531 Asset Quality Ratios: Nonperforming assets $10,127 $3,911 Allowance for loan losses 9,142 7,578 Nonperforming loans (2) to period-end loans 2.10% 0.83% Allowance for loan losses to period-end loans 2.05% 1.70% Net loan charge-offs to average loans 0.04% 0.05% (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.
