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

Exhibit 99.1

NEWS RELEASE
For more information, contact:	February 10, 2005
Lisa F. Campbell, Senior Vice President and CFO
lisac@newcenturybanknc.com
910-892-7080

NEW CENTURY BANCORP REPORTS

RECORD EARNINGS FOR 2004

Dunn, NC. . . New Century Bancorp (the “Company”), the holding company for New Century Bank and New Century Bank of Fayetteville, reported net income for the year ended December 31, 2004 of $2.1 million compared to $906,000 for the same period in 2003, with most of the income growth coming in the fourth quarter of 2004. Basic and diluted earnings per share for 2004 were $0.75 and $0.71, respectively. For 2003, basic and diluted earnings per share were $0.39 and $0.38, respectively. For the quarter ended December 31, 2004, the Company reported $913,000 in net income as compared to $112,000 for the same period in 2003.

“We are pleased with our performance reflected in these results for 2004,” said John Q. Shaw, president and CEO for the Company. “Both average earning assets and average interest-bearing liabilities were up significantly over last year, which resulted in a 67% increase in net interest income for 2004. Non-interest income also increased significantly in 2004, up 50% over non-interest income for 2003, with much of the growth coming from income generated by government guaranteed loan programs, and increases in deposit service charges and credit life insurance premiums. At the same time, our provision for loan losses was lower for fourth quarter 2004 when compared to the same period in 2003, since loan production for the period was less than in 2003, a quarter in which we booked in excess of $20 million in new loans.”

As of December 31, 2004, the Company had total deposits of $270.2 million and total loans of $262.8 million, compared to total deposits of $152.0 million and total loans of $151.9 million as of December 31, 2003, increases of 78% and 73%, respectively.

Total assets for the Company as of December 31, 2004 were $328.3 million, compared to $191.8 million at December 31, 2003, an increase of 71%.

“Our Company continued to grow in 2004,” said Shaw. “We opened an office in Goldsboro and opened the new headquarters and banking office of New Century Bank of Fayetteville. Both offices are enjoying a great response from their respective communities. Plans were announced for a new Operations Center in downtown Dunn, and renovations are moving forward.

“In 2005, we plan to announce a second office in Clinton to support the growth of our Bank in that community. And, early in the year we will announce several new products that we believe will be well-accepted in the marketplace.”

New Century Bank has offices in Dunn, NC, Clinton, NC, and Goldsboro, NC and New Century Bank of Fayetteville serves Fayetteville through a new headquarters and banking office at 2818 Raeford Road in Fayetteville, NC.

###

Stock Symbol: NCBC – OTC Electronic Bulletin Board

www.newcenturybanknc.com

The information as of and for the quarter and year ended December 31, 2004 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 and nonfinancial data)

	At or for the three months Ended December 31,						At or for the year Ended December 31,
	2004			2003			2004			2003
Operating Data:
Total interest income	$	4,713		$	2,552		$	15,394		$	9,360
Total interest expense		1,666			873			5,174			3,217
Net interest income		3,047			1,679			10,220			6,143
Provision for loan losses		295			348			1,684			1,042
Net interest income after provision		2,751			1,331			8,536			5,101
Noninterest income		586			262			1,703			1,134
Noninterest expense		1,909			1,439			6,972			4,833
Income before income taxes		1,429			154			3,267			1,402
Provision for income taxes		516			42			1,173			496
Net income	$	913		$	112		$	2,094		$	906
Per Share Data, restated for 11-for-10 stock split effective June 2004
Earnings per share - basic	$	0.32		$	0.04		$	0.75		$	0.39
Earnings per share - diluted		0.31			0.04			0.71			0.38
Market price
High		25.90			14.75			30.25			16.53
Low		20.00			14.46			14.43			12.40
Close		20.50			14.75			20.50			14.75
Book value		10.66			10.73
Weighted average shares outstanding
Basic		2,806,889			2,795,821			2,798,459			2,303,942
Diluted		2,986,956			2,966,700			2,957,719			2,389,085
	2004			2003
Selected Quarter End Balance Sheet Data:
Gross Loans	$	262,750		$	151,930
Allowance for loan losses		3,598			2,355
Other earning assets		51,051			31,059
Total assets		328,311			191,813
Deposits		270,230			151,971
Borrowings		26,685			11,714
Shareholders’ equity		29,816			27,266
	Qtr Avg						YTD Avg
Selected Average Balances:
Total assets	$	333,567		$	185,315		$	277,431			159,360
Loans, net of allowance		256,878			134,463			219,257			119,724
Total interest-earning assets		317,612			172,591			263,864			150,227
Deposits		275,956			151,242			231,510			131,852
Total interest-bearing liabilities		257,520			137,082			245,774			118,726
Shareholders’ Equity		29,093			27,417			30,483			21,808
Selected Performance Ratios:
Return on average assets		1.09	%		0.24	%		0.75	%		0.57	%
Return on average equity		12.48	%		1.62	%		6.87	%		4.15	%
Net interest margin		3.73	%		3.86	%		3.78	%		4.03	%
Noninterest expense to average assets		2.28	%		3.08	%		2.51	%		3.04	%
Asset Quality Ratios:
Nonperforming loans to period-end loans		0.33	%		0.35	%
Allowance for loan losses to period-end loans		1.37	%		1.55	%
Net loan charge-offs to average loans		0.18	%		0.13	%
Capital Ratios:
Total risk-based capital		12.30	%		18.61	%
Tier 1 risk-based capital		11.05	%		17.36	%
Leverage ratio		8.93	%		14.64	%
Equity to assets ratio		9.08	%		14.21	%
Other Data:
Number of banking offices		4			3
Number of full time equivalent employees		72			55