Select Bancorp (SLCT) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR RELEASE:  July 26, 2016

Mark A. Jeffries

Executive Vice President

Chief Financial Officer

Office: 910-892-7080 and Direct: 910-897-3603

markj@SelectBank.com

SelectBank.com

SELECT BANCORP REPORTS

SECOND QUARTER 2016 EARNINGS

DUNN, NC . . . Select Bancorp, Inc. (the “Company”NASDAQ: SLCT), the holding company for Select Bank & Trust, reported net income for the quarter ended June 30, 2016 of $1.9 million compared to $1.8 million for the same period in 2015. Basic and diluted earnings per share for the second quarter were $0.16, compared to basic and diluted earnings per share of $0.16 for the second quarter of 2015.

For the six-month period ended June 30, 2016, net income for the Company was $3.4 million compared to $3.5 million for the same period in 2015. Basic and diluted earnings per share for the first six months of 2016 were $0.29, compared to basic and diluted earnings per share of $0.31 for the first six months of 2015.

As of June 30, 2016, the Company reported total assets of $826.6 million compared to $742.4 million at June 30, 2015, an increase of 11.3%. Total deposits were $661.3 million and total net loans were $624.5 million at the end of the second quarter of 2016, compared to total deposits of $579.6 million and total net loans of $566.9 million as of the end of the second quarter of 2015, increases of 14.1% and 10.2%, respectively.

Quarter to date return on average assets through June 30, 2016 is 0.93% and quarter to date return on average equity is 7.62%, compared to 0.98% and 7.22%, respectively, for the quarter ended June 30, 2015.

“The second quarter of 2016 was a very good quarter for Select Bancorp as net income increased 27% over the first quarter of 2016.” Non-performing loans were $8.8 million and $11.7 million at June 30, 2016 and June 30, 2015, respectively. Non-performing loans equaled 1.39% of loans at June 30, 2016, decreasing from 2.04% of loans at June 30, 2015. Foreclosed real estate equaled $716,000 at June 30, 2016, compared to $1.0 million at June 30, 2015. For the quarter, net recoveries were ($6,000), or (0.0%), of average loans, compared to net recoveries of ($16,000), or (0.01%), of average loans in the second quarter 2015. At June 30, 2016, the allowance for loan losses was $7.7 million, or 1.22% of total loans, as compared to $6.8 million or 1.19% of total loans at June 30, 2015.

Net interest margin was 4.24% for the quarter ending June 30, 2016, as compared to 4.46% for the quarter ended June 30, 2015.

President and CEO William L. Hedgepeth II said. “During the second quarter, we celebrated the 16^th anniversary of the founding of our bank and we prepared to move into new office space in Raleigh, a full-service banking facility on Falls of Neuse Road that will open for business on August 1. We are excited about what is to come in the Triangle market and for the growth potential in many of our other markets, including the Wilmington area. Andy Scott is our market executive in Raleigh and we have just added Karen Priester as a commercial lender with more than 30 years of banking experience in Wake County. We believe this market is poised for growth and our experienced team is ready to offer true community bank lending to small and medium sized businesses in Wake County. Select Bank prides itself on local decision making, focusing on delivering quality products and services to our customers.”

The Company will relocate its Raleigh branch from the current location to 4505 Falls of Neuse Road on August 1. A grand opening celebration is being planned for later in August. The new branch is conveniently located just north of the beltline past Wake Forest Road.

In a report compiled by SNL Financial and published in the June 2016 edition ofBusiness North Carolina ranking the 100 largest financial institutions headquartered in North Carolina, Select Bancorp ranked 30^th, moving up two positions from 2015. Select also ranked 7^th out of the 100 largest financial institutions with headquarters in the state for the fastest growth in revenue, according to the same report. “We are proud of these results and continue to believe that Select is well positioned for the remainder of 2016 and beyond,” said Hedgepeth.

Select Bank & Trust has branch offices in these North Carolina communities: Dunn, Burlington, Clinton, Elizabeth City, Fayetteville, Goldsboro, Greenville, Leland, Lillington, Lumberton, Morehead City, Raleigh and Washington.

The information as of and for the quarter ended June 30, 2016, 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. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. 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. Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce revisions to any forward-looking statements to reflect future events or developments.

###

Select Bancorp, Inc.

Selected Financial Information and Other Data (unaudited)

($ in thousands, except per share data)

	At or for the three months ended															At or for the twelve months ended
	June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			December 31, 2015			December 31, 2014			December 31, 2013
Summary of Operations:
Total interest income	$	8,645		$	8,432		$	8,425		$	8,412		$	8,262		$	33,341		$	26,104		$	22,903
Total interest expense		912			927			890			878			835			3,542			4,519			5,258
Net interest income		7,733			7,505			7,535			7,534			7,427			29,799			21,585			17,645
Provision for (recovery of) loan losses		158			352			506			393			(139	)		890			(194	)		(325	)
Net interest income after provision		7,575			7,153			7,029			7,141			7,566			28,909			21,779			17,970
Noninterest income		831			866			916			572			941			3,292			2,675			2,629
Merger/Acquisition related expenses		-			-			240			103			35			378			1,941			-
Noninterest expense		5,519			5,620			5,497			5,467			5,518			21,852			18,719			15,855
Income before income taxes		2,887			2,399			2,208			2,143			2,954			9,971			3,794			4,744
Provision for income taxes		980			896			570			792			1,133			3,418			1,437			1,803
Net Income		1,907			1,503			1,638			1,351			1,821			6,553			2,357			2,941
Dividends on Preferred Stock		-			4			20			19			19			77			38			-
Net income available to common shareholders	$	1,907		$	1,499		$	1,618		$	1,332		$	1,802		$	6,476		$	2,319		$	2,941
Share and Per Share Data:
Earnings per share - basic	$	0.16		$	0.13		$	0.14		$	0.12		$	0.16		$	0.56		$	0.26		$	0.43
Earnings per share - diluted	$	0.16		$	0.13		$	0.14		$	0.12		$	0.16		$	0.56		$	0.26		$	0.43
Book value per share	$	8.74		$	8.56		$	8.38		$	8.28		$	8.17		$	8.38		$	8.59		$	8.09
Tangible book value per share	$	8.05		$	7.87		$	7.67		$	7.58		$	7.45		$	7.67		$	7.83		$	8.07
Ending shares outstanding		11,619,184			11,584,011			11,583,011			11,577,111			11,499,398			11,583,011			11,377,980			6,921,352
Weighted average shares outstanding:
Basic		11,594,995			11,583,440			11,580,745			11,521,043			11,481,137			11,502,800			8,870,114			6,918,814
Diluted		11,642,726			11,626,609			11,627,974			11,582,724			11,548,878			11,567,811			8,974,384			6,919,760
Selected Performance Ratios:
Return on average assets(2)		0.93	%		0.73	%		0.82	%		0.69	%		0.98	%		0.86	%		0.37	%		0.53	%
Return on average equity(2)		7.62	%		6.03	%		6.20	%		5.21	%		7.22	%		6.42	%		3.12	%		5.28	%
Net interest margin(2)		4.24	%		4.14	%		4.18	%		4.34	%		4.46	%		4.38	%		3.88	%		3.46	%
Efficiency ratio(1)		64.44	%		67.14	%		65.05	%		67.44	%		65.94	%		66.04	%		77.16	%		78.20	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	624,495		$	622,092		$	617,398		$	597,969		$	573,729		$	617,398		$	552,038		$	346,500
Total Earning Assets		749,956			753,726			726,408			711,622			665,028			726,408			698,266			483,054
Goodwill		6,931			6,931			6,931			6,931			6,931			6,931			6,931			-
Core Deposit Intangible		1,014			1,125			1,241			1,196			1,320			1,241			1,625			182
Total Assets		826,588			830,395			817,015			786,495			742,443			817,015			766,121			525,646
Deposits		661,274			667,654			651,161			619,935			579,609			651,161			618,902			448,458
Short term debt		40,714			31,218			24,594			30,722			32,884			24,594			20,733			6,305
Long term debt		18,205			28,559			33,782			28,846			24,914			33,782			25,591			12,372
Shareholders' equity		101,531			99,210			104,702			103,545			101,552			104,702			97,685			56,004
Selected Average Balances:
Gross Loans	$	629,333		$	623,286		$	601,966		$	585,541		$	569,785		$	578,759		$	430,571		$	354,871
Total Earning Assets		739,002			734,859			714,755			689,166			669,586			686,663			565,264			511,597
Core Deposit Intangible		1,072			1,186			1,139			1,251			1,389			1,330			884			237
Total Assets		822,036			832,738			796,414			771,913			744,118			765,284			631,905			555,354
Deposits		658,476			672,151			631,855			607,722			588,328			607,214			523,954			470,526
Short term debt		37,883			36,039			35,303			35,012			28,212			32,316			9,957			13,879
Long term debt		20,772			20,822			20,872			22,631			22,895			20,147			20,494			12,372
Shareholders' equity		100,664			100,312			104,732			102,879			101,216			102,068			74,365			55,701
Asset Quality Ratios:
Nonperforming loans	$	8,788		$	8,750		$	8,280		$	10,899		$	11,702		$	8,280		$	11,876		$	15,856
Other real estate owned		716			1,888			1,401			1,007			1,030			1,401			1,585			2,008
Allowance for loan losses		7,692			7,527			7,021			7,032			6,842			7,021			6,844			7,054
Nonperforming loans(3) to period-end loans		1.39	%		1.39	%		1.41	%		1.82	%		2.04	%		1.34	%		2.15	%		4.58	%
Allowance for loan losses to period-end loans		1.22	%		1.20	%		1.14	%		1.18	%		1.19	%		1.14	%		1.24	%		2.04	%
Delinquency Ratio(4)		0.23	%		0.45	%		0.41	%		0.36	%		0.32	%		0.41	%		0.91	%		0.25	%
Net loan charge-offs (recoveries) to average loans		0.00	%		-0.10	%		0.34	%		0.14	%		-0.01	%		0.12	%		-0.03	%		0.15	%

(1)	Efficiency ratio is calculated as non-interest expenses divided by the sum of net interest income and non-interest income.
(2)	Annualized.
(3)	Nonperforming loans consist of non-accrual loans and restructured loans.
(4)	Delinquency Ratio includes loans 30-89 days past due and excludes non-accrual loans.