Exhibit 99.1
| FOR RELEASE: | October 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
THIRD QUARTER 2009 AND YEAR-TO-DATE RESULTS
DUNN, NC . . . New Century Bancorp (the “Company”NASDAQ: NCBC), the holding company for New Century Bank, reported a net loss for the quarter ended September 30, 2009, of ($369,000) compared to net income of $159,000 for the same period in 2008. Basic and diluted net income (loss) per share was ($0.05) for third quarter 2009 compared to $0.02 for third quarter 2008.
For the nine month period ended the same date, the Company reported a net loss of ($214,000) compared to net income of $473,000 for the same period in 2008. Basic and diluted net income (loss) per share was ($0.03) for the first nine months of 2009 compared to $0.07 for the first nine months of 2008.
As New Century Bank, along with all banks nationwide, deals with the nearly unprecedented fallout from the recession, quarterly earnings continue to be adversely impacted by increases in the provision for loan losses resulting from nonperforming loans. The third quarter increase in the Company’s nonperforming loans resulted principally from one $3.0 million relationship that was downgraded from past due to nonaccrual status. In response to this increase in our nonperforming loans, during the quarter we recorded a provision for loan losses of $2.4 million.
Net interest income increased in a year-to-year comparison from $4.6 million for the three months ended September 30, 2008, to nearly $5.1 million for the same period in 2009.
“While our quarterly and year-to-date results are not what we want them to be,” said William L. Hedgepeth III, president and CEO of New Century Bancorp and New Century Bank, “there are a number of positive indicators we are pleased with at this time. Perhaps most importantly, net interest margin improved from 3.34% for the third quarter last year to 3.52% for the three months ended September 30, 2009. Net interest income is a key driver of a bank’s financial performance so this positive trend from 2008 to 2009 is, we hope, an indication that things are moving in a positive direction. Our staff has worked hard to improve our margin and we are now seeing the results of their efforts.
“Hand-in-hand with this, we are closely managing noninterest expenses. We have accomplished this with a keen focus on reducing and eliminating expenses wherever we can without impacting service to our
customers or hampering our ability to grow the bank. Due to these efforts, our efficiency ratio was 69.5% for the three months ended September 30, 2009, compared to 78.7% for the same period in 2008.”
Impacting income for the first nine months of 2009, were two previously reported unusual items: a special insurance premium assessment of $286,000 from the Federal Deposit Insurance Corporation (FDIC) (the assessment was levied against all banks), and a one-time permanent impairment charge of $51,000 from our investment in the stock of the parent company of Silverton Bank, Atlanta, GA.
As of September 30, 2009, the Company reported total assets of $636.8 million, total deposits of $533.4 million and total loans of $472.6 million. As of September 30, 2008, these figures stood at total assets of $596.5 million, total deposits of $501.8 million, and total loans of $457.8 million, representing increases of 6.8%, 6.3%, and 3.2%, respectively, in a year-to-year comparison.
“To experience this level of growth in assets, loans and deposits in this economy is an indication of the hard work of our staff, as well as the strength of the unique markets we serve. We believe Cumberland and Harnett counties, in particular, are poised for tremendous growth due to BRAC (Base Realignment and Closure). In a recent article in theFayetteville Observer, it was reported that BRAC would bring 40,000 new residents to Fayetteville, Cumberland County and the surrounding area by 2013, which will result in many new businesses and other opportunities as these communities support this incredible growth. New Century Bank is doing, and will continue to do, all we can to meet the financial services needs of these new residents, and to support our communities as we welcome this growth.
“New Century remains well-capitalized, which is the highest regulatory standard,” Hedgepeth said. “Because of our capital position, the Company made the decision not to participate in the U.S. Government’s TARP (Troubled Asset Relief Program) Capital Purchase Plan, as has already been reported. We are committed to maintaining a sound capital position and sufficient liquidity, meeting the borrowing needs of the markets we serve, and positioning the Company for future growth,”
New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton, 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 September 30, 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 | At or for the nine months ended | |||||||||||||||||||||||||||||||||
| September 30, 2009 | June 30, 2009 | March 31, 2009 | December 31, 2008 | September 30, 2008 | September 30, 2009 | September 30, 2008 | September 30, 2007 | |||||||||||||||||||||||||||
Summary of Operations: | ||||||||||||||||||||||||||||||||||
Total interest income | $ | 8,223 | $ | 8,009 | $ | 8,252 | $ | 8,348 | $ | 8,678 | $ | 24,483 | $ | 26,886 | $ | 31,255 | ||||||||||||||||||
Total interest expense | 3,170 | 3,459 | 3,673 | 3,991 | 4,043 | 10,302 | 13,382 | 15,324 | ||||||||||||||||||||||||||
Net interest income | 5,053 | 4,550 | 4,579 | 4,357 | 4,635 | 14,181 | 13,504 | 15,931 | ||||||||||||||||||||||||||
Provision for loan losses | 2,377 | 1,414 | 685 | 2,142 | 895 | 4,477 | 2,141 | 5,518 | ||||||||||||||||||||||||||
Net interest income after provision | 2,676 | 3,136 | 3,894 | 2,215 | 3,740 | 9,704 | 11,363 | 10,413 | ||||||||||||||||||||||||||
Noninterest income | 812 | 792 | 845 | 790 | 745 | 2,449 | 2,338 | 2,970 | ||||||||||||||||||||||||||
Noninterest expense | 4,075 | 4,428 | 4,080 | 4,158 | 4,233 | 12,581 | 12,980 | 12,166 | ||||||||||||||||||||||||||
Income (loss) before income taxes | (587 | ) | (500 | ) | 659 | (1,153 | ) | 252 | (428 | ) | 721 | 1,217 | ||||||||||||||||||||||
Provision for income taxes (benefit) | (218 | ) | (247 | ) | 251 | (487 | ) | 93 | (214 | ) | 248 | 419 | ||||||||||||||||||||||
Net income (loss) | $ | (369 | ) | $ | (253 | ) | $ | 408 | $ | (666 | ) | $ | 159 | $ | (214 | ) | $ | 473 | $ | 798 | ||||||||||||||
Share and Per Share Data: | ||||||||||||||||||||||||||||||||||
Earnings (loss) per share - basic | $ | (0.05 | ) | $ | (0.04 | ) | $ | 0.06 | $ | (0.10 | ) | $ | 0.02 | $ | (0.03 | ) | $ | 0.07 | $ | 0.12 | ||||||||||||||
Earnings (loss) per share - diluted | (0.05 | ) | (0.04 | ) | 0.06 | (0.10 | ) | 0.02 | (0.03 | ) | 0.07 | 0.12 | ||||||||||||||||||||||
Book value per share | 9.22 | 9.21 | 9.23 | 9.17 | 9.03 | 9.22 | 9.03 | 8.92 | ||||||||||||||||||||||||||
Tangible book value per share | 7.82 | 7.80 | 7.82 | 7.76 | 7.61 | 7.82 | 7.61 | 7.45 | ||||||||||||||||||||||||||
Ending shares outstanding | 6,837,742 | 6,836,149 | 6,831,149 | 6,831,149 | 6,827,649 | 6,837,742 | 6,827,649 | 6,730,874 | ||||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||
Basic | 6,837,292 | 6,831,973 | 6,831,149 | 6,829,731 | 6,826,481 | 6,833,494 | 6,808,914 | 6,560,750 | ||||||||||||||||||||||||||
Diluted | 6,837,292 | 6,831,973 | 6,835,476 | 6,829,731 | 6,879,919 | 6,833,494 | 6,811,297 | 6,761,640 | ||||||||||||||||||||||||||
Selected Performance Ratios: | ||||||||||||||||||||||||||||||||||
Return on average assets | -0.23 | % | -0.16 | % | 0.27 | % | -0.43 | % | 0.11 | % | -0.05 | % | 0.11 | % | 0.18 | % | ||||||||||||||||||
Return on average equity | -2.30 | % | -1.60 | % | 2.61 | % | -4.27 | % | 1.02 | % | -0.45 | % | 1.01 | % | 1.79 | % | ||||||||||||||||||
Net interest margin | 3.52 | % | 3.16 | % | 3.26 | % | 3.07 | % | 3.34 | % | 3.31 | % | 3.26 | % | 3.97 | % | ||||||||||||||||||
Efficiency ratio(1) | 69.48 | % | 82.89 | % | 75.22 | % | 80.78 | % | 78.68 | % | 75.65 | % | 81.93 | % | 64.37 | % | ||||||||||||||||||
Period End Balance Sheet Data: | ||||||||||||||||||||||||||||||||||
Loans, net of unearned income | $ | 472,578 | $ | 467,872 | $ | 469,794 | $ | 460,626 | $ | 457,784 | $ | 472,578 | $ | 457,784 | $ | 462,713 | ||||||||||||||||||
Total Earning Assets | 591,973 | 573,951 | 584,030 | 560,534 | 547,965 | 591,973 | 547,965 | 545,760 | ||||||||||||||||||||||||||
Goodwill and other intangible assets | 9,565 | 9,603 | 9,642 | 9,680 | 9,719 | 9,565 | 9,719 | 9,873 | ||||||||||||||||||||||||||
Total Assets | 636,810 | 629,000 | 628,748 | 605,767 | 596,457 | 636,810 | 596,457 | 592,328 | ||||||||||||||||||||||||||
Deposits | 533,350 | 527,621 | 523,537 | 505,119 | 501,823 | 533,350 | 501,823 | 504,535 | ||||||||||||||||||||||||||
Short term debt | 25,693 | 23,461 | 27,408 | 23,175 | 17,896 | 25,693 | 17,896 | 12,974 | ||||||||||||||||||||||||||
Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | ||||||||||||||||||||||||||
Shareholders’ equity | 63,013 | 62,947 | 63,059 | 62,659 | 61,653 | 63,013 | 61,653 | 60,035 | ||||||||||||||||||||||||||
Selected Average Balances: | ||||||||||||||||||||||||||||||||||
Gross Loans | $ | 469,668 | $ | 469,581 | $ | 468,062 | $ | 458,100 | $ | 456,120 | $ | 469,109 | $ | 449,362 | $ | 449,114 | ||||||||||||||||||
Total Earning Assets | 570,059 | 577,774 | 570,221 | 562,415 | 551,353 | 572,684 | 552,240 | 536,324 | ||||||||||||||||||||||||||
Goodwill and other intangible assets | 9,584 | 9,622 | 9,660 | 9,699 | 9,738 | 9,622 | 9,776 | 9,929 | ||||||||||||||||||||||||||
Total Assets | 634,312 | 630,180 | 616,026 | 607,685 | 595,049 | 626,903 | 597,303 | 580,595 | ||||||||||||||||||||||||||
Deposits | 532,427 | 526,894 | 513,079 | 508,911 | 500,914 | 524,204 | 502,603 | 490,053 | ||||||||||||||||||||||||||
Short term debt | 23,020 | 24,606 | 24,458 | 21,659 | 17,077 | 24,023 | 17,593 | 16,070 | ||||||||||||||||||||||||||
Long term debt | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | ||||||||||||||||||||||||||
Shareholders’ equity | 63,588 | 63,615 | 63,421 | 61,868 | 62,017 | 63,542 | 62,187 | 59,604 | ||||||||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 16,003 | $ | 13,352 | $ | 7,739 | $ | 8,630 | $ | 9,148 | $ | 16,003 | $ | 9,148 | $ | 6,300 | ||||||||||||||||||
Other real estate owned | 2,346 | 2,196 | 2,333 | 2,799 | 677 | 2,346 | 669 | 387 | ||||||||||||||||||||||||||
Allowance for loan losses | 10,317 | 8,519 | 7,792 | 8,860 | 7,140 | 10,317 | 7,140 | 8,636 | ||||||||||||||||||||||||||
Nonperforming loans(2) to period-end loans | 3.39 | % | 2.85 | % | 1.65 | % | 1.87 | % | 2.00 | % | 3.39 | % | 2.00 | % | 1.36 | % | ||||||||||||||||||
Allowance for loan losses to period-end loans | 2.18 | % | 1.82 | % | 1.66 | % | 1.92 | % | 1.56 | % | 2.18 | % | 1.56 | % | 1.87 | % | ||||||||||||||||||
Delinquency Ratio(3) | 1.61 | % | 0.51 | % | 0.98 | % | 0.32 | % | 0.34 | % | 1.61 | % | 0.34 | % | 1.43 | % | ||||||||||||||||||
Net loan charge-offs to average loans | 0.49 | % | 0.59 | % | 1.52 | % | 0.39 | % | 0.21 | % | 0.86 | % | 1.09 | % | 1.30 | % | ||||||||||||||||||
| (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. |
| (3) | Delinquency Ratio includes 30-89 days past due and excludes non-accrual loans. |