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

Exhibit 99.1

FOR RELEASE:	April 30, 2010
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 ANNOUNCES

FIRST QUARTER 2010 EARNINGS

Company reports positive results, including strong balance sheet growth, for the quarter.

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, 2010, of $457,000, compared to net income of $408,000 for the same period in 2009, an increase of $49,000 or 12.0%. Basic and diluted earnings per share for first quarter 2010 were $0.07 and for first quarter 2009 were $0.06.

As of March 31, 2010, the Company reported total assets of $642.9 million, total deposits of $542.3 million and total loans of $496.4 million. As of March 31, 2009, these figures stood at total assets of $628.7 million, total deposits of $523.5 million, and total loans of $469.8 million, for increases of 2.3%, 3.6%, and 5.7%, respectively, year-to-year.

“We have started the year on a positive note with net income and a higher net interest margin,” said William L. Hedgepeth III, president and chief executive officer, “In light of a continuing difficult and uncertain economy, we are pleased with our core earnings results.”

Net interest margin improved to 4.08%, compared to 3.27% for first quarter 2009, which positively impacted earnings. While noninterest expenses were higher for the quarter, most of this can be attributed to expenses associated with the conversion to a new core operating system, which included: $175,000 in the purchase of computer hardware; $146,000 in software and license agreements; and $185,000 for one-time costs for system set-up, de-conversion and exit costs, travel-related and training costs, and supplies. This investment was made to meet customers’ changing financial services needs and to position the Bank for its next decade of growth and success. Finally, earnings were impacted by a $1.3 million addition to the provision for loan losses due to an increase in non-accrual loans.

“The economy still presents challenges to New Century Bank and to all banks,” Hedgepeth said. “We feel strongly about the prospects for New Century Bank in 2010. On behalf of everyone at New Century, we were saddened by the loss of one of our Company’s directors—Sidney E. Thompson, M.D.—during the quarter. He served our company well for the past six years and his friendship and leadership will be missed.”

New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton, Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford, as well as a loan production office in Greenville, NC.

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Keywords: New Century Bancorp, New Century Bank, NCBC

The information as of and for the quarter ended March 31, 2010 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 thee months ended
	March 31, 2010			December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			March 31, 2010			March 31, 2009			March 31, 2008
Summary of Operations:
Total interest income	$	8,333		$	8,433		$	8,258		$	8,039		$	8,270		$	8,333		$	8,270		$	9,365
Total interest expense		2,446			2,821			3,170			3,459			3,673			2,446			3,673			5,040
Net interest income		5,887			5,612			5,088			4,580			4,597			5,887			4,597			4,325
Provision for loan losses		1,270			995			2,377			1,414			685			1,270			685			873
Net interest income after provision		4,617			4,617			2,711			3,166			3,912			4,617			3,912			3,452
Noninterest income		667			766			777			762			826			667			826			861
Goodwill Impairment		—			8,674			—			—			—			—			—			—
Noninterest expense		4,606			4,796			4,075			4,428			4,079			4,606			4,079			4,455
Income (loss) before income taxes		678			(8,087	)		(587	)		(500	)		659			678			659			(142	)
Provision for income taxes (benefit)		221			141			(218	)		(247	)		251			221			251			(52	)
Net income (loss)	$	457		$	(8,228	)	$	(369	)	$	(253	)	$	408		$	457		$	408		$	(90	)
Share and Per Share Data:
Earnings (loss) per share - basic	$	0.07		$	(1.20	)	$	(0.05	)	$	(0.04	)	$	0.06		$	0.07		$	0.06		$	(0.01	)
Earnings (loss) per share - diluted		0.07			(1.20	)		(0.05	)		(0.04	)		0.06			0.07			0.06			(0.01	)
Book value per share		8.03			7.96			9.22			9.21			9.23			8.03			9.23			9.09
Tangible book value per share		7.91			7.83			7.82			7.80			7.82			7.91			7.82			7.65
Ending shares outstanding		6,837,952			6,837,952			6,837,742			6,836,149			6,831,149			6,837,952			6,831,149			6,799,183
Weighted average shares outstanding:
Basic		6,837,952			6,837,863			6,837,292			6,831,973			6,831,149			6,837,952			6,831,149			6,764,291
Diluted		6,845,714			6,837,863			6,837,292			6,831,973			6,835,476			6,845,714			6,835,476			6,764,291
Selected Performance Ratios:
Return on average assets		0.30	%		-5.09	%		-0.23	%		-0.16	%		0.27	%		0.30	%		0.27	%		-0.06	%
Return on average equity		3.34	%		-51.24	%		-2.30	%		-1.60	%		2.61	%		3.34	%		2.61	%		-0.40	%
Net interest margin		4.08	%		3.74	%		3.54	%		3.18	%		3.27	%		4.08	%		3.27	%		3.16	%
Efficiency ratio(1)		70.28	%		75.20	%		69.48	%		82.89	%		75.22	%		70.28	%		75.22	%		85.90	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	496,448		$	481,176		$	472,578		$	467,872		$	469,794		$	496,448		$	469,794		$	446,699
Total Earning Assets		602,436			588,536			591,973			573,951			584,030			602,436			584,030			558,092
Goodwill and other intangible assets		814			853			9,565			9,603			9,642			814			9,642			9,796
Total Assets		642,883			630,635			636,810			629,000			628,748			642,883			628,748			603,402
Deposits		542,348			540,262			533,350			527,621			523,537			542,348			523,537			508,891
Short term debt		27,744			20,564			25,693			23,461			27,408			27,744			27,408			17,990
Long term debt		12,372			12,372			12,372			12,372			12,372			12,372			12,372			12,372
Shareholders' equity		54,934			54,409			63,013			62,947			63,059			54,934			63,059			61,822
Selected Average Balances:
Gross Loans	$	483,665		$	476,845		$	469,668		$	469,581		$	468,062		$	483,665		$	468,062		$	442,636
Total Earning Assets		585,277			595,250			570,059			577,774			570,221			585,277			570,221			552,797
Goodwill and other intangible assets		832			9,451			9,584			9,622			9,660			832			9,660			9,814
Total Assets		625,307			641,254			634,312			630,180			616,026			625,307			616,026			599,692
Deposits		531,115			538,643			532,427			526,894			513,079			531,115			513,079			504,170
Short term debt		23,547			23,498			23,020			24,606			24,458			23,547			24,458			18,464
Long term debt		12,372			12,372			12,372			12,372			12,372			12,372			12,372			12,372
Shareholders' equity		55,533			63,710			63,588			63,615			63,421			55,533			63,421			92,271
Asset Quality Ratios:
Nonperforming loans	$	18,956		$	15,965		$	16,003		$	13,352		$	7,739		$	18,956		$	7,739		$	9,396
Other real estate owned		2,680			2,530			2,346			2,196			2,333			2,680			2,333			731
Allowance for loan losses		11,232			10,359			10,317			8,519			7,792			11,232			7,792			9,142
Nonperforming loans(2) to period-end loans		3.82	%		3.32	%		3.39	%		2.85	%		1.65	%		3.82	%		1.65	%		2.10	%
Allowance for loan losses to period-end loans		2.26	%		2.15	%		2.18	%		1.82	%		1.66	%		2.26	%		1.66	%		2.05	%
Delinquency Ratio(3)		0.45	%		0.41	%		1.61	%		0.51	%		0.98	%		0.45	%		0.98	%		0.59	%
Net loan charge-offs to average loans		0.05	%		0.79	%		0.49	%		0.59	%		1.52	%		0.05	%		1.52	%		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.

(3) Delinquency Ratio includes 30-89 days past due and excludes non-accrual loans.