| | |
| NEWS RELEASE | | |
| For more information, contact: | | May 4, 2007 |
| Lisa F. Campbell, Executive Vice President and CFO | | |
| lisac@newcenturybanknc.com | | |
| 910-892-7080 | | |
NEW CENTURY BANCORP REPORTS
EARNINGS FOR FIRST QUARTER 2007
Dunn, NC. . . New Century Bancorp (the “Company”—NASDAQ: NCBC), the holding company for New Century Bank and New Century Bank South, reported net income for the quarter ended March 31, 2007 of $1.3 million, or basic and diluted earnings per share of $0.20 and $0.19, respectively, compared to net income of $1.1 million or basic and diluted earnings per share of $0.21 and $0.20, respectively, for the same period in 2006.
As of March 31, 2007, the Company reported total assets of $582.2 million compared to $443.0 million at March 31, 2006, an increase of 31%. Total deposits were $491.1 million and total loans were $448.2 million compared to total deposits of $374.1 million and total loans of $339.7 million at the end of first quarter 2006, increases of 31% and 32%, respectively. Growth was enhanced by the Company’s July 2006 acquisition of Progressive State Bank which, based on estimated fair values, had $65.9 million in total assets, $33.7 million in loans and $55.8 million in deposits.
“On behalf of the board and our employees, I am pleased to report these first quarter results,” said William L. “Bill” Hedgepeth II, President and CEO of the Company. “We experienced strong growth in both loans and deposits and, in a year-to-year comparison total assets grew more than 31% over what was reported at March 31, 2006 due to growth in our existing markets and our acquisition of Progressive State Bank. Our net income grew by 19%, reflecting the growth in earning assets. While these results were partially offset by a reduction in net interest margin and higher non-interest expenses, we hope this quarter’s results are indicative of what will be a year of positive growth for the Company.
“During the first quarter, we celebrated the opening of a second office in Fayetteville. This office is located in a growing area and gives us the opportunity to gain new customers as well as to provide additional convenience for our current customers. We also held a ground breaking ceremony for a permanent location in Lillington, NC, which serves as the county seat for Harnett County. Plans call for the office to be completed this fall.”
New Century Bank is headquartered in Dunn and has offices in Clinton, Goldsboro, and Lillington. New Century Bank South is headquartered in Fayetteville and has offices in Dublin, Lumberton, Pembroke and Raeford.
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www.newcenturybanknc.com
The information as of and for the quarter ended March 31, 2007 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, | |
| | | 2007 | | | 2006 | |
Summary of Operations: | | | | | | | | |
Total interest income | | $ | 10,020 | | | $ | 7,652 | |
Total interest expense | | | 4,883 | | | | 3,321 | |
| | | | | | | | |
Net interest income | | | 5,137 | | | | 4,331 | |
Provision for loan losses | | | 150 | | | | 408 | |
| | | | | | | | |
Net interest income after provision | | | 4,987 | | | | 3,923 | |
Noninterest income | | | 911 | | | | 553 | |
Noninterest expense | | | 3,874 | | | | 2,738 | |
| | | | | | | | |
Income before income taxes | | | 2,024 | | | | 1,738 | |
Provision for income taxes | | | 755 | | | | 669 | |
| | | | | | | | |
Net income | | $ | 1,269 | | | $ | 1,069 | |
| | | | | | | | |
Share and Per Share Data(1): | | | | | | | | |
Earnings per share - basic | | $ | 0.20 | | | $ | 0.21 | |
Earnings per share - diluted | | | 0.19 | | | | 0.20 | |
Book value per share | | | 9.05 | | | | 6.68 | |
Tangible book value per share | | | 7.52 | | | | 6.68 | |
Ending shares outstanding | | | 6,502,782 | | | | 5,109,583 | |
Weighted average shares outstanding: | | | | | | | | |
Basic | | | 6,500,367 | | | | 5,100,461 | |
Diluted | | | 6,790,465 | | | | 5,480,726 | |
| | |
Selected Performance Ratios: | | | | | | | | |
Return on average assets | | | 0.91 | % | | | 0.98 | % |
Return on average equity | | | 8.79 | % | | | 12.76 | % |
Net interest margin | | | 4.00 | % | | | 4.22 | % |
Efficiency ratio(2) | | | 64.05 | % | | | 56.06 | % |
| | |
Period End Balance Sheet Data | | | | | | | | |
Loans, net of unearned income | | $ | 448,209 | | | $ | 339,650 | |
Total Earning Assets | | | 537,254 | | | | 418,237 | |
Goodwill and other intangible assets | | | 9,950 | | | | — | |
Total assets | | | 582,216 | | | | 442,970 | |
Deposits | | | 491,143 | | | | 374,119 | |
Short term debt | | | 17,487 | | | | 18,277 | |
Long term debt | | | 12,372 | | | | 14,372 | |
Shareholders’ equity | | | 58,994 | | | | 34,138 | |
| | |
Selected Average Balances: | | | | | | | | |
Loans, net of unearned income | | $ | 436,377 | | | $ | 330,645 | |
Total Earning Assets | | | 520,657 | | | | 416,599 | |
Goodwill and other intangible assets | | | 9,968 | | | | — | |
Total assets | | | 563,934 | | | | 440,339 | |
Deposits | | | 472,969 | | | | 371,431 | |
Short term debt | | | 17,441 | | | | 18,242 | |
Long term debt | | | 12,372 | | | | 14,372 | |
Shareholders’ equity | | | 58,531 | | | | 33,982 | |
| | |
Asset Quality Ratios: | | | | | | | | |
Nonperforming assets | | $ | 3,911 | | | $ | 1,110 | |
Allowance for loan losses | | | 7,578 | | | | 5,673 | |
Nonperforming loans(3) to period-end loans | | | 0.83 | % | | | 0.27 | % |
Allowance for loan losses to period-end loans(4) | | | 1.70 | % | | | 1.67 | % |
Net loan charge-offs to average loans | | | 0.05 | % | | | 0.04 | % |
| (1) | Adjusted for all periods presented tp reflect the effects of a six-for-five stock split in the form of a 20% stock dividend in December 2006. |
| (2) | Efficiency ratio is calculated as non-interest expenses divided by the sum of net interest income and non-interest income. |
| (3) | Nonperforming loans consist of non-accrual loans and restructured loans. |
| (4) | Allowance for loan losses to period-end loans ratio excludes loans held for sale. |
