Exhibit 99.1
FOR RELEASE: |
November 3, 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
THIRD 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 September 30, 2016 of $1.7 million compared to $1.4 million for the same period in 2015. Basic and diluted earnings per share for the third quarter were $0.15, compared to basic and diluted earnings per share for the third quarter 2015 of $0.12.
For the nine months ended September 30, 2016, net income for the Company was $5.1 million compared to $4.9 million for the same period in 2015. Basic and diluted earnings per share for the first nine months of 2016 were $0.44, compared to basic and diluted earnings per share for the first nine months of 2015 of $0.42.
As of September 30, 2016, the Company reported total assets of $844.8 million compared to $786.5 million at September 30, 2015, an increase of 10.4%. Total deposits were $677.1 million and total net loans were $643.9 million at the end of the third quarter 2016, compared to total deposits of $619.9 million and total net loans of $590.9 million as of the end of the third quarter 2015, increases of 9.2% and 9.0% respectively.
Return on average assets was 0.85% and return on average equity was 6.71% for the third quarter of 2016, compared to 0.69% and 5.21%, respectively, for the same quarter ended September 30, 2015.
Non-performing loans were $7.6 million and $10.9 million at September 30, 2016 and September 30, 2015, respectively. Non-performing loans equaled 1.16% of total loans at September 30, 2016, decreasing from 1.82% of total loans at September 30, 2015. Foreclosed real estate equaled $548,000 at September 30, 2016, compared to $1.0 million at September 30, 2015. For the third quarter 2016, net recoveries were ($22,000), or (0.01%), of average loans, compared to net charge-offs of $204,000, or 0.14% of average loans in the third quarter 2015. At September 30, 2016, the allowance for loan losses was $7.9 million, or 1.21% of total loans, as compared to $7.0 million or 1.18% of total loans at September 30, 2015.
Net interest margin was 4.27% for the quarter ending September 30, 2016, as compared to 4.34% for the quarter ended September 30, 2015.
“The third quarter of 2016 was a very good quarter for Select Bancorp as net income increased 28.7% over the third quarter of 2015,” President and CEO William L. Hedgepeth II said. “During the third quarter we celebrated the grand opening of our new office space in Raleigh.” The Company relocated its Raleigh branch to 4505 Falls of Neuse Road on August 1 and celebrated a grand opening with the Raleigh Chamber of Commerce on August 24. The new branch is conveniently located just north of the beltline past Wake Forest Road.
Select Bank & Trust maintained the number one position in deposit market share in Dunn, our headquarters city, and the number two position in Harnett County, for the 14th consecutive year.
“We are very proud of our performance this year,” said Hedgepeth. “We continue to enhance and improve our product and service offerings as well as our operations area. We believe that is evident by our success over the last few quarters. That success has allowed us to be able to attract experienced and knowledgeable personnel to Select Bank & Trust. We believe in doing business the old-fashioned way, through ‘common sense’ banking, hard work and providing great service to our customers and prospects.”
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 September 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. 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. Except as required by law, the Company assumes no obligation to update the forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
###
| Select 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 twelve months ended | |||||||||||||||||||||||||||||||
| September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
| Summary of Operations: | ||||||||||||||||||||||||||||||||
| Total interest income | $ | 8,755 | $ | 8,645 | $ | 8,432 | $ | 8,425 | $ | 8,412 | $ | 33,341 | $ | 26,104 | $ | 22,903 | ||||||||||||||||
| Total interest expense | 909 | 912 | 927 | 890 | 878 | 3,542 | 4,519 | 5,258 | ||||||||||||||||||||||||
| Net interest income | 7,846 | 7,733 | 7,505 | 7,535 | 7,534 | 29,799 | 21,585 | 17,645 | ||||||||||||||||||||||||
| Provision for (recovery of) loan losses | 337 | 158 | 352 | 506 | 393 | 890 | (194 | ) | (325 | ) | ||||||||||||||||||||||
| Net interest income after provision | 7,509 | 7,575 | 7,153 | 7,029 | 7,141 | 28,909 | 21,779 | 17,970 | ||||||||||||||||||||||||
| Noninterest income | 785 | 831 | 866 | 916 | 572 | 3,292 | 2,675 | 2,629 | ||||||||||||||||||||||||
| Merger/Acquisition related expenses | - | - | - | 240 | 103 | 378 | 1,941 | - | ||||||||||||||||||||||||
| Noninterest expense | 5,631 | 5,519 | 5,620 | 5,497 | 5,467 | 21,852 | 18,719 | 15,855 | ||||||||||||||||||||||||
| Income before income taxes | 2,887 | 2,887 | 2,399 | 2,208 | 2,143 | 9,971 | 3,794 | 4,744 | ||||||||||||||||||||||||
| Provision for income taxes | 924 | 980 | 896 | 570 | 792 | 3,418 | 1,437 | 1,803 | ||||||||||||||||||||||||
| Net Income | 1,739 | 1,907 | 1,503 | 1,638 | 1,351 | 6,553 | 2,357 | 2,941 | ||||||||||||||||||||||||
| Dividends on Preferred Stock | - | - | 4 | 20 | 19 | 77 | 38 | - | ||||||||||||||||||||||||
| Net income available to common shareholders | $ | 1,739 | $ | 1,907 | $ | 1,499 | $ | 1,618 | $ | 1,332 | $ | 6,476 | $ | 2,319 | $ | 2,941 | ||||||||||||||||
| Share and Per Share Data: | ||||||||||||||||||||||||||||||||
| Earnings per share - basic | $ | 0.15 | $ | 0.16 | $ | 0.13 | $ | 0.14 | $ | 0.12 | $ | 0.56 | $ | 0.26 | $ | 0.43 | ||||||||||||||||
| Earnings per share - diluted | $ | 0.15 | $ | 0.16 | $ | 0.13 | $ | 0.14 | $ | 0.12 | $ | 0.56 | $ | 0.26 | $ | 0.43 | ||||||||||||||||
| Book value per share | $ | 8.87 | $ | 8.74 | $ | 8.56 | $ | 8.38 | $ | 8.28 | $ | 8.38 | $ | 8.59 | $ | 8.09 | ||||||||||||||||
| Tangible book value per share | $ | 8.20 | $ | 8.05 | $ | 7.87 | $ | 7.67 | $ | 7.58 | $ | 7.67 | $ | 7.83 | $ | 8.07 | ||||||||||||||||
| Ending shares outstanding | 11,632,192 | 11,619,184 | 11,584,011 | 11,583,011 | 11,577,111 | 11,583,011 | 11,377,980 | 6,921,352 | ||||||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
| Basic | 11,627,270 | 11,594,995 | 11,583,440 | 11,580,745 | 11,521,043 | 11,502,800 | 8,870,114 | 6,918,814 | ||||||||||||||||||||||||
| Diluted | 11,666,280 | 11,642,726 | 11,626,609 | 11,627,974 | 11,582,724 | 11,567,811 | 8,974,384 | 6,919,760 | ||||||||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||||||||||||
| Return on average assets(2) | 0.85 | % | 0.93 | % | 0.73 | % | 0.82 | % | 0.69 | % | 0.86 | % | 0.37 | % | 0.53 | % | ||||||||||||||||
| Return on average equity(2) | 6.71 | % | 7.62 | % | 6.03 | % | 6.20 | % | 5.21 | % | 6.42 | % | 3.12 | % | 5.28 | % | ||||||||||||||||
| Net interest margin | 4.27 | % | 4.24 | % | 4.14 | % | 4.18 | % | 4.34 | % | 4.38 | % | 3.88 | % | 3.46 | % | ||||||||||||||||
| Efficiency ratio(1) | 65.24 | % | 64.44 | % | 67.14 | % | 65.05 | % | 67.44 | % | 66.04 | % | 77.16 | % | 78.20 | % | ||||||||||||||||
| Period End Balance Sheet Data: | ||||||||||||||||||||||||||||||||
| Gross Loans | $ | 651,743 | $ | 632,187 | $ | 629,619 | $ | 617,398 | $ | 597,969 | $ | 617,398 | $ | 552,038 | $ | 346,500 | ||||||||||||||||
| Total Earning Assets | 746,349 | 749,956 | 753,726 | 726,408 | 711,622 | 726,408 | 698,266 | 483,054 | ||||||||||||||||||||||||
| Goodwill | 6,931 | 6,931 | 6,931 | 6,931 | 6,931 | 6,931 | 6,931 | - | ||||||||||||||||||||||||
| Core Deposit Intangible | 909 | 1,014 | 1,125 | 1,241 | 1,196 | 1,241 | 1,625 | 182 | ||||||||||||||||||||||||
| Total Assets | 844,774 | 826,588 | 830,395 | 817,015 | 786,495 | 817,015 | 766,121 | 525,646 | ||||||||||||||||||||||||
| Deposits | 677,121 | 661,274 | 667,654 | 651,161 | 619,935 | 651,161 | 618,902 | 448,458 | ||||||||||||||||||||||||
| Short term debt | 38,175 | 40,714 | 32,218 | 24,594 | 30,722 | 24,594 | 20,733 | 6,305 | ||||||||||||||||||||||||
| Long term debt | 22,372 | 18,205 | 28,559 | 33,782 | 28,846 | 33,782 | 25,591 | 12,372 | ||||||||||||||||||||||||
| Shareholders' equity | 103,191 | 101,531 | 99,210 | 104,702 | 103,545 | 104,702 | 97,685 | 56,004 | ||||||||||||||||||||||||
| Selected Average Balances: | ||||||||||||||||||||||||||||||||
| Gross Loans | $ | 641,531 | $ | 629,333 | $ | 623,286 | $ | 601,966 | $ | 585,541 | $ | 578,759 | $ | 430,571 | $ | 354,871 | ||||||||||||||||
| Total Earning Assets | 737,295 | 739,002 | 734,859 | 714,755 | 689,166 | 686,663 | 565,264 | 511,597 | ||||||||||||||||||||||||
| Core Deposit Intangible | 965 | 1,072 | 1,186 | 1,139 | 1,251 | 1,330 | 884 | 237 | ||||||||||||||||||||||||
| Total Assets | 818,284 | 822,036 | 832,738 | 796,414 | 771,913 | 765,284 | 631,905 | 555,354 | ||||||||||||||||||||||||
| Deposits | 653,016 | 658,476 | 672,151 | 631,855 | 607,722 | 607,214 | 523,954 | 470,526 | ||||||||||||||||||||||||
| Short term debt | 34,982 | 37,883 | 36,039 | 35,303 | 35,012 | 32,316 | 9,957 | 13,879 | ||||||||||||||||||||||||
| Long term debt | 22,780 | 20,772 | 20,822 | 20,872 | 22,631 | 20,147 | 20,494 | 12,372 | ||||||||||||||||||||||||
| Shareholders' equity | 103,026 | 100,664 | 100,312 | 104,732 | 102,879 | 102,068 | 74,365 | 55,701 | ||||||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
| Nonperforming loans | $ | 7,565 | $ | 8,788 | $ | 8,750 | $ | 8,280 | $ | 10,899 | $ | 8,280 | $ | 11,876 | $ | 15,856 | ||||||||||||||||
| Other real estate owned | 548 | 716 | 1,888 | 1,401 | 1,007 | 1,401 | 1,585 | 2,008 | ||||||||||||||||||||||||
| Allowance for loan losses | 7,889 | 7,692 | 7,527 | 7,021 | 7,032 | 7,021 | 6,844 | 7,054 | ||||||||||||||||||||||||
| Nonperforming loans(3) to period-end loans | 1.16 | % | 1.39 | % | 1.39 | % | 1.34 | % | 1.82 | % | 1.34 | % | 2.15 | % | 4.58 | % | ||||||||||||||||
| Allowance for loan losses to period-end loans | 1.21 | % | 1.22 | % | 1.20 | % | 1.14 | % | 1.18 | % | 1.14 | % | 1.24 | % | 2.04 | % | ||||||||||||||||
| Delinquency Ratio(4) | 0.16 | % | 0.23 | % | 0.45 | % | 0.41 | % | 0.36 | % | 0.41 | % | 0.91 | % | 0.25 | % | ||||||||||||||||
| Net loan charge-offs (recoveries) to average loans | -0.01 | % | -0.00 | % | -0.10 | % | 0.34 | % | 0.14 | % | 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. |