DUNN, N.C., April 30 /PRNewswire-FirstCall/ -- New Century Bancorp (the "Company" - Nasdaq: NCBC), the holding company for New Century Bank, reported net income for the quarter ended March 31, 2010, of $457,000, compared to net income of $408,000 for the same period in 2009, an increase of $49,000 or 12.0%. Basic and diluted earnings per share for first quarter 2010 were $0.07 and for first quarter 2009 were $0.06.
As of March 31, 2010, the Company reported total assets of $642.9 million, total deposits of $542.3 million and total loans of $496.4 million. As of March 31, 2009, these figures stood at total assets of $628.7 million, total deposits of $523.5 million, and total loans of $469.8 million, for increases of 2.3%, 3.6%, and 5.7%, respectively, year-to-year.
"We have started the year on a positive note with net income and a higher net interest margin," said William L. Hedgepeth III, president and chief executive officer. "In light of a continuing difficult and uncertain economy, we are pleased with our core earnings results."
Net interest margin improved to 4.08%, compared to 3.27% for first quarter 2009, which positively impacted earnings. While noninterest expenses were higher for the quarter, most of this can be attributed to expenses associated with the conversion to a new core operating system, which included: $175,000 in the purchase of computer hardware; $146,000 in software and license agreements; and $185,000 for one-time costs for system set-up, de-conversion and exit costs, travel-related and training costs, and supplies. This investment was made to meet customers' changing financial services needs and to position the Bank for its next decade of growth and success. Finally, earnings were impacted by a $1.3 million addition to the provision for loan losses due to an increase in non-accrual loans.
"The economy still presents challenges to New Century Bank and to all banks," Hedgepeth said. "We feel strongly about the prospects for New Century Bank in 2010. On behalf of everyone at New Century, we were saddened by the loss of one of our Company's directors--Sidney E. Thompson, M.D.--during the quarter. He served our company well for the past six years and his friendship and leadership will be missed."
New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton, Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford, as well as a loan production office in Greenville, NC.
The information as of and for the quarter ended March 31, 2010 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, December 31, September 30, 2010 2009 2009 ---------- ------------- -------------- Summary of Operations: Total interest income $8,333 $8,433 $8,258 Total interest expense 2,446 2,821 3,170 ----- ----- ----- Net interest income 5,887 5,612 5,088 Provision for loan losses 1,270 995 2,377 ----- --- ----- Net interest income after provision 4,617 4,617 2,711 Noninterest income 667 766 777 Goodwill Impairment - 8,674 - Noninterest expense 4,606 4,796 4,075 ----- ----- ----- Income (loss) before income taxes 678 (8,087) (587) Provision for income taxes (benefit) 221 141 (218) --- --- ---- Net income (loss) $457 $(8,228) $(369) ==== ======= ===== Share and Per Share Data: Earnings (loss) per share -basic $0.07 $(1.20) $(0.05) Earnings (loss) per share -diluted 0.07 (1.20) (0.05) Book value per share 8.03 7.96 9.22 Tangible book value per share 7.91 7.83 7.82 Ending shares outstanding 6,837,952 6,837,952 6,837,742 Weighted average shares outstanding: Basic 6,837,952 6,837,863 6,837,292 Diluted 6,845,714 6,837,863 6,837,292 Selected Performance Ratios: Return on average assets 0.30% -5.09% -0.23% Return on average equity 3.34% -51.24% -2.30% Net interest margin 4.08% 3.74% 3.54% Efficiency ratio (1) 70.28% 75.20% 69.48% Period End Balance Sheet Data: Loans, net of unearned income $496,448 $481,176 $472,578 Total Earning Assets 602,436 588,536 591,973 Goodwill and other intangible assets 814 853 9,565 Total Assets 642,883 630,635 636,810 Deposits 542,348 540,262 533,350 Short term debt 27,744 20,564 25,693 Long term debt 12,372 12,372 12,372 Shareholders' equity 54,934 54,409 63,013 Selected Average Balances: Gross Loans $483,665 $476,845 $469,668 Total Earning Assets 585,277 595,250 570,059 Goodwill and other intangible assets 832 9,451 9,584 Total Assets 625,307 641,254 634,312 Deposits 531,115 538,643 532,427 Short term debt 23,547 23,498 23,020 Long term debt 12,372 12,372 12,372 Shareholders' equity 55,533 63,710 63,588 Asset Quality Ratios: Nonperforming loans $18,956 $15,965 $16,003 Other real estate owned 2,680 2,530 2,346 Allowance for loan losses 11,232 10,359 10,317 Nonperforming loans (2) to period-end loans 3.82% 3.32% 3.39% Allowance for loan losses to period- end loans 2.26% 2.15% 2.18% Delinquency Ratio (3) 0.45% 0.41% 1.61% Net loan charge- offs to average loans 0.05% 0.79% 0.49% ---- ---- ---- At or for the three months ended -------------------------------- June 30, March 31, 2009 2009 --------- ---------- Summary of Operations: Total interest income $8,039 $8,270 Total interest expense 3,459 3,673 ----- ----- Net interest income 4,580 4,597 Provision for loan losses 1,414 685 ----- --- Net interest income after provision 3,166 3,912 Noninterest income 762 826 Goodwill Impairment - - Noninterest expense 4,428 4,079 ----- ----- Income (loss) before income taxes (500) 659 Provision for income taxes (benefit) (247) 251 ---- --- Net income (loss) $(253) $408 ===== ==== Share and Per Share Data: Earnings (loss) per share - basic $(0.04) $0.06 Earnings (loss) per share - diluted (0.04) 0.06 Book value per share 9.21 9.23 Tangible book value per share 7.80 7.82 Ending shares outstanding 6,836,149 6,831,149 Weighted average shares outstanding: Basic 6,831,973 6,831,149 Diluted 6,831,973 6,835,476 Selected Performance Ratios: Return on average assets -0.16% 0.27% Return on average equity -1.60% 2.61% Net interest margin 3.18% 3.27% Efficiency ratio (1) 82.89% 75.22% Period End Balance Sheet Data: Loans, net of unearned income $467,872 $469,794 Total Earning Assets 573,951 584,030 Goodwill and other intangible assets 9,603 9,642 Total Assets 629,000 628,748 Deposits 527,621 523,537 Short term debt 23,461 27,408 Long term debt 12,372 12,372 Shareholders' equity 62,947 63,059 Selected Average Balances: Gross Loans $469,581 $468,062 Total Earning Assets 577,774 570,221 Goodwill and other intangible assets 9,622 9,660 Total Assets 630,180 616,026 Deposits 526,894 513,079 Short term debt 24,606 24,458 Long term debt 12,372 12,372 Shareholders' equity 63,615 63,421 Asset Quality Ratios: Nonperforming loans $13,352 $7,739 Other real estate owned 2,196 2,333 Allowance for loan losses 8,519 7,792 Nonperforming loans (2) to period-end loans 2.85% 1.65% Allowance for loan losses to period-end loans 1.82% 1.66% Delinquency Ratio (3) 0.51% 0.98% Net loan charge- offs to average loans 0.59% 1.52% ---- ---- At or for the thee months ended ------------------------------- March 31, March 31, March 31, 2010 2009 2008 ---------- ---------- ---------- Summary of Operations: Total interest income $8,333 $8,270 $9,365 Total interest expense 2,446 3,673 5,040 ----- ----- ----- Net interest income 5,887 4,597 4,325 Provision for loan losses 1,270 685 873 ----- --- --- Net interest income after provision 4,617 3,912 3,452 Noninterest income 667 826 861 Goodwill Impairment - - - Noninterest expense 4,606 4,079 4,455 ----- ----- ----- Income (loss) before income taxes 678 659 (142) Provision for income taxes (benefit) 221 251 (52) --- --- --- Net income (loss) $457 $408 $(90) ==== ==== ==== Share and Per Share Data: Earnings (loss) per share -basic $0.07 $0.06 $(0.01) Earnings (loss) per share -diluted 0.07 0.06 (0.01) Book value per share 8.03 9.23 9.09 Tangible book value per share 7.91 7.82 7.65 Ending shares outstanding 6,837,952 6,831,149 6,799,183 Weighted average shares outstanding: Basic 6,837,952 6,831,149 6,764,291 Diluted 6,845,714 6,835,476 6,764,291 Selected Performance Ratios: Return on average assets 0.30% 0.27% -0.06% Return on average equity 3.34% 2.61% -0.40% Net interest margin 4.08% 3.27% 3.16% Efficiency ratio (1) 70.28% 75.22% 85.90% Period End Balance Sheet Data: Loans, net of unearned income $496,448 $469,794 $446,699 Total Earning Assets 602,436 584,030 558,092 Goodwill and other intangible assets 814 9,642 9,796 Total Assets 642,883 628,748 603,402 Deposits 542,348 523,537 508,891 Short term debt 27,744 27,408 17,990 Long term debt 12,372 12,372 12,372 Shareholders' equity 54,934 63,059 61,822 Selected Average Balances: Gross Loans $483,665 $468,062 $442,636 Total Earning Assets 585,277 570,221 552,797 Goodwill and other intangible assets 832 9,660 9,814 Total Assets 625,307 616,026 599,692 Deposits 531,115 513,079 504,170 Short term debt 23,547 24,458 18,464 Long term debt 12,372 12,372 12,372 Shareholders' equity 55,533 63,421 92,271 Asset Quality Ratios: Nonperforming loans $18,956 $7,739 $9,396 Other real estate owned 2,680 2,333 731 Allowance for loan losses 11,232 7,792 9,142 Nonperforming loans (2) to period-end loans 3.82% 1.65% 2.10% Allowance for loan losses to period-end loans 2.26% 1.66% 2.05% Delinquency Ratio (3) 0.45% 0.98% 0.59% Net loan charge-offs to average loans 0.05% 1.52% 0.04% ---- ---- ---- (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. http://www.newcenturybanknc.com/
New Century Bancorp
CONTACT: Lisa F. Campbell, Executive Vice President, Chief Operating
Officer and Chief Financial Officer, +1-910-892-7080;
lisac@newcenturybanknc.com
Web Site: http://www.newcenturybanknc.com/
