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

Exhibit 99.1

FOR RELEASE:	January 29, 2010
Lisa F. Campbell, Executive Vice President
Chief Operating Officer and Chief Financial Officer
Office: (910) 892-7080; Mobile: (910) 591-8086;lisac@newcenturybanknc.com www.newcenturybanknc.com

NEW CENTURY BANCORP REPORTS

YEAR-END 2009 RESULTS

• Prior to write-off of goodwill, Company’s net income for 2009 was $232,000, or $.03 per share.

• $8.6 million write-off of goodwill from 2006 purchase of Progressive State Bank negatively impacts results.

• Deposit growth for 2009 was 7.0%.

• Loan growth for the year was 4.5%.

• Net interest margin increased 14 basis points to 3.41% for the year.

• Non-interest expenses declined 2.5%, despite an increase in FDIC insurance premium expense from $525,000 in 2008 to $1.3 million in 2009.

• Results were accomplished without TARP (Troubled Asset Relief Program) funds.

DUNN, NC … New Century Bancorp (the “Company”NASDAQ: NCBC), the holding company for New Century Bank, today reported financial results for 2009. The write-off of goodwill resulted in a decrease in earnings for the Company from net income of $232,000 before the write-off to a net loss of ($8.4 million) afterwards. This compares to the net loss of ($193,000) for 2008, a year during which there were no write-offs of goodwill. Basic and diluted net income per share for 2009 prior to the goodwill write-off was $.03 compared to a net (loss) per share of ($1.24) after consideration of the write-off. This compares to the net (loss) per share of ($0.03) for 2008.

Goodwill Impairment

Goodwill, a measure of the difference between the price paid for an acquisition and the fair value of its assets, is being examined and subsequently charged-off in part or in whole by many financial institutions due to the effects of the prolonged economic downturn on financial stocks. At year-end 2009, New Century wrote-off $8.67 million in goodwill, an intangible asset, which resulted from the purchase of Progressive State Bank in 2006. The goodwill impairment charge, a one-time, non-cash, accounting transaction, does not affect the liquidity, tangible capital, or regulatory capital ratios of the Company.

Financial Results

Total assets for the Company at year-end 2009 were $630.6 million, total deposits were $540.3 million, and total loans were $481.2 million, compared to total assets of $605.8 million, total deposits of $505.1 million, and total loans of $460.6 million at year-end 2008, increases of 4.1%, 7.0%, and 4.5%, respectively.

“While the write-off of goodwill resulted in New Century Bancorp reporting a loss for the year,” said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank, “We are pleased with our core operating results in light of the fact that unlike many banks, we did not accept TARP funds; even though we, like all banks, faced a number of financial challenges. In addition, we are pleased with a number of positive indicators for the future. Those indicators include strong loan and deposit growth, increasing margins, and lower non-interest expenses.

Earnings for the year also were impacted by the addition of $5.5 million to the Company’s provision for loan losses, compared to $4.3 million in 2008; OREO losses of $565,000 compared to $239,000 in 2008; and, the payment of FDIC insurance premiums totaling $1.3 million, compared to only $525,000 in 2008.

“In order to recognize operating efficiencies, we consolidated our operations in Clinton, NC into one office. In preparing for the future, we recently invested in and expanded our ability to serve our customers through installing a new core processor and by developing a new website, with added capabilities. While the past few years have been difficult, we continue to meet the lending needs of our customers and communities, to expand and develop our staff, and to approach the future through a disciplined approach.

“The Company remains ‘well-capitalized,’ which is the highest regulatory standard. While there are challenges ahead—such as high unemployment levels, there is also a great deal of opportunity. As our market area and our nation begin to come out of the recession, we plan to be in the position to be part of it and to help lead the way for our customers.”

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 year ended December 31, 2009, as presented is unaudited. The above release presents financial information excluding the goodwill impairment charge (non-GAAP). The goodwill impairment charge is included in the financial results presented in accordance with generally accepted accounting principles (GAAP). The Company believes that the exclusion of goodwill impairment in expressing net income and earnings per share data provides a more meaningful base for period-to-period comparisons which will assist investors in analyzing the operating results of the Company and predicting operating performance. Non-GAAP measures are not in accordance with, or a substitute for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations that would be reflected in measures determined in accordance with GAAP. Non-GAAP measures should only be used to evaluate our results of operations in conjunction with corresponding GAAP measures. 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 twelve months ended
	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008			December 31, 2009			December 31, 2008			December 31, 2007
Summary of Operations:
Total interest income	$	8,378		$	8,223		$	8,009		$	8,252		$	8,348		$	32,861		$	35,233		$	41,598
Total interest expense		2,821			3,170			3,459			3,673			3,991			13,122			17,372			20,653
Net interest income		5,557			5,053			4,550			4,579			4,357			19,739			17,861			20,945
Provision for loan losses		995			2,377			1,414			685			2,142			5,472			4,283			5,974
Net interest income after provision		4,562			2,676			3,136			3,894			2,215			14,267			13,578			14,971
Noninterest income		821			812			792			1,040			890			2,610			3,128			3,978
Goodwill Impairment		8,674			—			—			—			—			8,674			—			—
Noninterest expense		4,796			4,075			4,428			4,275			4,258			16,717			17,138			16,337
Income (loss) before income taxes		(8,087	)		(587	)		(500	)		659			(1,153	)		(8,514	)		(432	)		2,612
Provision for income taxes (benefit)		141			(218	)		(247	)		251			(487	)		(73	)		(239	)		953
Net income (loss)	$	(8,228	)	$	(369	)	$	(253	)	$	408		$	(666	)	$	(8,441	)	$	(193	)	$	1,659
Share and Per Share Data:
Earnings (loss) per share - basic	$	(1.20	)	$	(0.05	)	$	(0.04	)	$	0.06		$	(0.10	)	$	(1.24	)	$	(0.03	)	$	0.25
Earnings (loss) per share - diluted		(1.20	)		(0.05	)		(0.04	)		0.06			(0.10	)		(1.24	)		(0.03	)		0.24
Book value per share		7.96			9.22			9.21			9.23			9.17			7.96			9.17			9.09
Tangible book value per share		7.83			7.82			7.80			7.82			7.76			7.83			7.76			7.63
Ending shares outstanding		6,837,952			6,837,742			6,836,149			6,831,149			6,831,149			6,837,952			6,831,149			6,730,874
Weighted average shares outstanding:
Basic		6,837,863			6,837,292			6,831,973			6,831,149			6,829,731			6,834,595			6,809,437			6,603,631
Diluted		6,837,863			6,837,292			6,831,973			6,835,476			6,829,731			6,834,595			6,809,437			6,844,426
Selected Performance Ratios:
Return on average assets		-5.09	%		-0.23	%		-0.16	%		0.27	%		-0.43	%		-1.34	%		-0.03	%		0.28	%
Return on average equity		-51.24	%		-2.30	%		-1.60	%		2.61	%		-4.27	%		-13.28	%		-0.31	%		2.77	%
Net interest margin		3.70	%		3.52	%		3.16	%		3.26	%		3.07	%		3.41	%		3.27	%		3.93	%
Efficiency ratio(1)		75.20	%		69.48	%		82.89	%		76.08	%		81.15	%		74.80	%		81.65	%		65.55	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	481,176		$	472,578		$	467,872		$	469,794		$	460,626		$	481,176		$	460,626		$	442,875
Total Earning Assets		588,536			591,973			573,951			584,030			560,534			588,536			560,534			543,167
Goodwill and other intangible assets		853			9,565			9,603			9,642			9,680			853			9,680			9,834
Total Assets		630,635			636,810			629,000			628,748			605,767			630,635			605,767			591,025
Deposits		540,262			533,350			527,621			523,537			505,119			540,262			505,119			498,123
Short term debt		20,564			25,693			23,461			27,408			23,175			20,564			23,175			16,967
Long term debt		12,372			12,372			12,372			12,372			12,372			12,372			12,372			12,372
Shareholders’ equity		54,409			63,013			62,947			63,059			62,659			54,409			62,659			61,173
Selected Average Balances:
Gross Loans	$	476,845		$	469,668		$	469,581		$	468,062		$	458,100		$	471,059		$	451,558		$	449,799
Total Earning Assets		595,250			570,059			577,774			570,221			562,415			578,372			554,798			539,526
Goodwill and other intangible assets		9,451			9,584			9,622			9,660			9,699			9,578			9,756			9,910
Total Assets		641,254			634,312			630,180			616,026			607,685			630,521			599,912			583,809
Deposits		538,643			532,427			526,894			513,079			508,911			527,844			504,188			493,989
Short term debt		23,498			23,020			24,606			24,458			21,659			23,891			18,615			15,672
Long term debt		12,372			12,372			12,372			12,372			12,372			12,372			12,372			12,372
Shareholders’ equity		63,710			63,588			63,615			63,421			61,868			63,584			62,107			59,888
Asset Quality Ratios:
Nonperforming loans	$	15,965		$	16,003		$	13,352		$	7,739		$	8,630		$	15,965		$	8,536		$	5,041
Other real estate owned		2,530			2,346			2,196			2,333			2,799			2,530			2,799			542
Allowance for loan losses		10,359			10,317			8,519			7,792			8,860			10,359			8,860			8,314
Nonperforming loans(2) to period-end loans		3.32	%		3.39	%		2.85	%		1.65	%		1.87	%		3.32	%		1.85	%		1.13	%
Allowance for loan losses to period-end loans		2.15	%		2.18	%		1.82	%		1.66	%		1.92	%		2.15	%		1.92	%		1.88	%
Delinquency Ratio(3)		0.41	%		1.61	%		0.51	%		0.98	%		0.32	%		0.41	%		0.32	%		1.31	%
Net loan charge-offs to average loans		0.79	%		0.49	%		0.59	%		1.52	%		0.39	%		0.84	%		0.82	%		1.15	%

(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.