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

Exhibit 99.1

FOR RELEASE:	March 31, 2011
Lisa F. Campbell, Executive Vice President
Chief Operating Officer and Chief Financial Officer
(910) 892-7080; lisac@newcenturybanknc.com www.newcenturybanknc.com

NEW CENTURY REPORTS

YEAR-END AND FOURTH QUARTER 2010 RESULTS

DUNN, NC . . . For the quarter ended December 31, 2010, New Century Bancorp (the “Company”) reported net income of $125,000 and basic and diluted earnings per share of $0.02. For the year ended as of the same date, New Century Bancorp reported a net loss of ($4.96) million and basic and diluted losses per share of ($0.72).

At December 31, 2010, the Company held total assets of $626.9 million, total deposits of $534.6 million and total loans of $470.5 million. At December 31, 2009, these figures stood at total assets of $630.4 million, total deposits of $540.3 million, and total loans of $481.2 million.

New Century Bancorp President and CEO William L. Hedgepeth II commented on the results, saying, “It is difficult to report these year-end results in light of the work we have done and the progress that has been made as we use a disciplined approach to managing the Company. Through June 30, 2010, we reported net income of $1.5 million and were on track for a successful 2010, prior to reporting an alleged fraud that resulted in an addition to our loan loss provision of $10.8 million.”

Highlights for 2010 include:

• Without the addition to provision specifically to address the alleged fraud, it is estimated the Company would have reported a profitable year in 2010.

• Net interest margin improved to 4.03%, compared to 3.49% for 2009, and 3.27% for 2008.

• On May 24, we celebrated the 10^th anniversary of the opening of New Century Bank (the “Bank”), a wholly-owned subsidiary of New Century Bancorp.

• While noninterest expenses were higher for the year, much of the additional expense can be attributed to the conversion to a new core operating system, and other investments in the future of the Bank. The new core operating system allows us to meet the changing financial services needs of our customers and will help position the Bank for its next decade of growth and success.

• New Century Bank gained market share in Dunn, our headquarters city, allowing us to maintain the position of #1 in deposit market share in Dunn – a position we have held for 8 straight years. In addition, we gained deposit market share in Harnett and Cumberland counties and the town of Lillington. (According to FDIC data as of June 30, 2010.)

• Throughout 2010, we worked with an outside firm to assist the Company in identifying areas in which we can gain efficiencies and areas where we have revenue potential.

Hedgepeth said, “In 2011, we will help our customers as they work through a continuing difficult economy and as they begin to recover, hopefully enabling them to ‘power their plans’ for a great future—whatever it holds. For New Century, we will stay the course, following our disciplined approach—an approach that, without extraordinary events, had us on track toward our overall goals. We remain committed to employing every legal remedy available to us in recovering losses resulting from the alleged fraud that impacted the Company. On behalf of everyone at New Century, we look forward to a great year in 2011.”

New Century Bancorp, which through New Century Bank has offices in Dunn, Clinton, Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford, as well as a loan production office in Greenville, NC, remains well-capitalized and deposits held by the bank are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor.

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The information as of and for the quarter and year-ended December 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 twelve months ended
	December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009			December 31, 2010			December 31, 2009			December 31, 2008
Summary of Operations:
Total interest income	$	8,327		$	8,428		$	8,524		$	8,333		$	8,433		$	33,610		$	33,030		$	35,237
Total interest expense		2,361			2,439			2,434			2,446			2,821			9,680			13,122			17,372
Net interest income		5,966			5,989			6,090			5,887			5,612			23,930			19,908			17,865
Provision for loan losses		1,267			12,457			639			1,270			995			15,634			5,472			4,283
Net interest income after provision		4,699			(6,468	)		5,451			4,617			4,617			8,296			14,436			13,582
Noninterest income		686			648			670			667			766			2,678			3,098			3,124
Goodwill Impairment		—			—			—			—			8,674			—			8,674			—
Noninterest expense		5,357			4,746			4,497			4,606			4,796			19,213			17,375			17,138
Income (loss) before income taxes		28			(10,566	)		1,624			678			(8,087	)		(8,239	)		(8,515	)		(432	)
Provision for income taxes (benefit)		(97	)		(3,955	)		549			221			141			(3,284	)		(73	)		(239	)
Net income (loss)	$	125		$	(6,611	)	$	1,075		$	457		$	(8,228	)	$	(4,955	)	$	(8,442	)	$	(193	)
Share and Per Share Data:
Earnings (loss) per share - basic	$	0.02		$	(0.96	)	$	0.16		$	0.07		$	(1.20	)	$	(0.72	)	$	(1.24	)	$	(0.03	)
Earnings (loss) per share - diluted		0.02			(0.96	)		0.16			0.07			(1.20	)		(0.72	)		(1.24	)		(0.03	)
Book value per share		7.19			7.22			8.19			8.03			7.96			7.19			7.96			9.17
Tangible book value per share		7.09			7.11			8.08			7.91			7.83			7.09			7.83			7.76
Ending shares outstanding		6,913,636			6,913,636			6,891,784			6,837,952			6,837,952			6,913,636			6,837,952			6,831,149
Weighted average shares outstanding:
Basic		6,913,636			6,908,466			6,846,437			6,837,952			6,837,863			6,875,845			6,834,595			6,809,437
Diluted		6,913,636			6,908,466			6,862,095			6,845,714			6,837,863			6,875,845			6,834,595			6,809,437
Selected Performance Ratios:
Return on average assets		0.08	%		-3.97	%		0.66	%		0.30	%		-5.09	%		-0.77	%		-1.34	%		-0.03	%
Return on average equity		0.97	%		-46.47	%		7.69	%		3.34	%		-51.24	%		-9.05	%		-13.28	%		-0.31	%
Net interest margin(4)		3.99	%		3.85	%		4.00	%		4.08	%		3.74	%		4.03	%		3.49	%		3.27	%
Efficiency ratio(1)		80.53	%		71.51	%		66.52	%		70.28	%		75.20	%		72.71	%		75.52	%		81.00	%
Period End Balance Sheet Data:
Loans, net of unearned income	$	470,484		$	467,876		$	490,883		$	496,448		$	481,176		$	470,484		$	481,176		$	460,626
Total Earning Assets		580,169			594,425			619,867			602,436			588,536			580,169			588,536			560,534
Goodwill and other intangible assets		699			737			776			814			853			699			853			9,680
Total Assets		626,896			643,185			663,001			642,883			630,635			626,897			630,419			605,767
Deposits		534,599			548,866			566,031			542,348			540,262			534,599			540,262			505,119
Short term debt		23,666			20,138			20,138			21,744			20,564			23,666			20,564			23,175
Long term debt		16,372			18,372			18,372			18,372			12,372			16,372			12,372			12,372
Shareholders’ equity		49,692			49,906			56,442			54,934			54,409			49,692			54,409			62,659
Selected Average Balances:
Gross Loans	$	475,149		$	486,453		$	493,396		$	483,665		$	476,845		$	484,647		$	471,059		$	451,558
Total Earning Assets		593,296			617,217			610,290			585,277			595,250			599,152			578,372			554,798
Goodwill and other intangible assets		717			756			794			832			9,451			775			9,578			9,756
Total Assets		641,571			660,032			651,861			625,307			641,254			644,904			630,521			599,913
Deposits		549,610			560,942			553,067			531,115			538,643			548,768			527,844			504,188
Short term debt		21,760			20,736			20,736			21,802			23,498			23,146			23,891			18,615
Long term debt		16,372			18,372			18,372			13,972			12,372			16,372			12,372			12,372
Shareholders’ equity		50,974			56,441			56,093			55,533			63,710			54,750			63,584			62,107
Asset Quality Ratios:
Nonperforming loans	$	12,250		$	9,678		$	13,885		$	18,956		$	16,048		$	12,250		$	16,048		$	8,630
Other real estate owned		3,655			3,812			3,215			2,680			2,530			3,655			2,530			2,799
Allowance for loan losses		10,015			8,081			10,006			11,232			10,359			10,015			10,359			8,860
Nonperforming loans(2) to period-end loans		2.60	%		2.07	%		2.83	%		3.82	%		3.34	%		2.60	%		3.34	%		1.87	%
Allowance for loan losses to period-end loans		2.13	%		1.73	%		2.04	%		2.26	%		2.15	%		2.13	%		2.15	%		1.92	%
Delinquency Ratio(3)		0.45	%		1.23	%		0.75	%		0.45	%		0.41	%		0.45	%		0.41	%		0.32	%
Net loan charge-offs to average loans		-0.56	%		13.57	%		1.39	%		0.05	%		0.79	%		3.30	%		0.84	%		0.82	%

(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.

(4) Delinquency Ratio includes 30-89 days past due and excludes non-accrual loans. Fully taxable equivalent basis