Select Bancorp (SLCT) 8-K New Century Bancorp Reports

Exhibit 99.1

FOR RELEASE:	April 30, 2009
Lisa F. Campbell, Executive Vice President
Chief Operating Officer and Chief Financial Officer
(910) 892-7080;lisac@newcenturybanknc.com
www.newcenturybanknc.com

NEW CENTURY BANCORP REPORTS

FIRST QUARTER 2009 EARNINGS

DUNN, NC . . . New Century Bancorp (the “Company”—NASDAQ: NCBC), the holding company for New Century Bank, reported net income for the quarter ended March 31, 2009, of $408,000, compared to a net loss of $90,000 for the same period in 2008. Basic and diluted earnings per share for first quarter 2009 were $0.06 compared to ($0.01) for first quarter 2008.

As of March 31, 2009, the Company reported total assets of $628.7 million, total deposits of $523.5 million and total loans of $469.8 million. As of March 31, 2008, these figures stood at total assets of $603.4 million, total deposits of $508.9 million, and total loans of $446.7 million, for increases of 4.2%, 2.9%, and 5.2%, respectively, year-to-year. At December 31, 2008, total assets were $605.8 million, total deposits were $505.1 million and total loans were $460.6 million, meaning New Century experienced increases from quarter-to-quarter of 3.8%, 3.6%, and 2.0% respectively.

“In light of the current economy, we are pleased with our balance sheet growth in both a year-to-year and a linked quarter comparison,” said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank. “In addition, we have started the year with positive net income. In part, this is due to a stronger net interest margin at 3.26%—compared to 3.15% in first quarter 2008 and 3.07% in fourth quarter 2008—as well as a reduction in operating expenses. Total non-interest expenses were $3.9 million for first quarter 2009, compared to $4.1 million for both the first and fourth quarters of 2008. Both net interest margin and operating efficiency are key indicators we have focused on and we are particularly pleased to see the progress that has been made in those areas.

“There is no question that we, along with other banks, are dealing with difficult economic circumstances that continue to negatively impact the housing and real estate markets, lowering property values and presenting challenges regarding credit quality. This was reflected in the significant increase in the level of our loan charge-offs during the first quarter of 2009. However, we had provided for much of

the loss associated with these specific charge-offs in our allowance for loan losses at the end of 2008. Therefore, the impact on our 2009 earnings was significantly less than the actual amounts charged-off during the quarter. Due largely to the charge-offs, the level of our nonperforming assets decreased by $1.1 million during the quarter. We will continue to be diligent in our efforts to monitor and improve the quality of our loan portfolio.”

New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton (2), Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford.

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Keywords: New Century Bancorp, New Century Bank, NCBC

The information as of and for the quarter ended March 31, 2009, 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, 2009			December 31, 2008			September 30, 2008			June 30, 2008			March 31, 2008
Summary of Operations:
Total interest income	$	8,252		$	8,348		$	8,678		$	8,827		$	9,382
Total interest expense		3,673			3,991			4,043			4,299			5,040
Net interest income		4,579			4,357			4,635			4,528			4,342
Provision for loan losses		685			2,142			895			374			873
Net interest income after provision		3,894			2,215			3,740			4,154			3,469
Noninterest income		650			690			620			610			487
Noninterest expense		3,885			4,058			4,108			4,153			4,098
Income before income taxes		659			(1,153	)		252			611			(142	)
Provision for income taxes		251			(487	)		93			207			(52	)
Net income	$	408		$	(666	)	$	159		$	404		$	(90	)
Share and Per Share Data:
Earnings per share—basic	$	0.06		$	(0.10	)	$	0.02		$	0.06		$	(0.01	)
Earnings per share—diluted		0.06			(0.10	)		0.02			0.06			(0.01	)
Book value per share		9.23			9.17			9.03			8.97			9.09
Tangible book value per share		7.82			7.76			7.61			7.54			7.65
Ending shares outstanding		6,831,149			6,831,149			6,827,649			6,822,659			6,799,183
Weighted average shares outstanding:
Basic		6,831,149			6,829,731			6,826,481			6,816,966			6,764,291
Diluted		6,835,476			6,829,731			6,879,919			6,860,016			6,764,291
Selected Performance Ratios:
Return on average assets		0.27	%		-0.43	%		0.11	%		0.27	%		-0.06	%
Return on average equity		2.61	%		-4.27	%		1.02	%		2.60	%		-0.58	%
Net interest margin		3.26	%		3.07	%		3.34	%		3.29	%		3.15	%
Efficiency ratio(1)		74.30	%		80.40	%		78.17	%		80.83	%		84.86	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	469,794		$	460,626		$	457,784		$	452,045		$	446,699
Total Earning Assets		584,030			560,534			547,965			550,984			558,092
Goodwill and other intangible assets		9,642			9,680			9,719			9,757			9,796
Total Assets		628,748			605,767			596,457			598,831			603,402
Deposits		523,537			505,119			501,823			505,400			508,891
Short term debt		27,408			23,175			17,896			17,441			17,990
Long term debt		12,372			12,372			12,372			12,372			12,372
Shareholders’ equity		63,059			62,659			61,653			61,201			61,822

Selected Average Balances:
Gross Loans	$	468,062		$	458,100		$	456,120		$	449,254		$	442,636
Total Earning Assets		570,221			562,415			551,353			552,581			552,797
Goodwill and other intangible assets		9,660			9,699			9,738			9,776			9,814
Total Assets		616,026			607,685			595,049			597,193			599,692
Deposits		513,079			508,911			500,914			502,742			504,170
Short term debt		24,458			21,659			17,077			17,243			18,464
Long term debt		12,372			12,372			12,372			12,372			12,372
Shareholders’ equity		63,421			61,868			62,017			62,275			62,271
Asset Quality Ratios:
Nonperforming loans	$	7,739		$	8,536		$	9,144		$	8,443		$	9,396
Other real estate owned		2,333			2,799			677			439			731
Allowance for loan losses		7,792			8,860			7,140			6,483			9,142
Nonperforming loans(2) to period-end loans		1.65	%		1.85	%		2.00	%		1.87	%		2.10	%
Allowance for loan losses to period-end loans		1.66	%		1.92	%		1.56	%		1.43	%		2.05	%
Net loan charge-offs to average loans		1.52	%		0.39	%		0.21	%		2.71	%		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.