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

Exhibit 99.1

FOR RELEASE:	July 30, 2012
Lisa F. Campbell, Executive Vice President
Chief Operating Officer and Chief Financial Officer
Office: 910-892-7080 and Direct: 910-897-3660 lisac@newcenturybanknc.com www.newcenturybanknc.com

NEW CENTURY BANCORP REPORTS

SECOND QUARTER 2012 EARNINGS

Quarter sees improving asset quality, reduction in nonperforming loans, and steady net interest margin,

as well as strong capital ratios.

DUNN, NC … New Century Bancorp (the “Company”NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $744,000 for the quarter ended June 30, 2012, and basic and diluted earnings per share of $0.11, compared to a net loss of ($861,000) and basic and diluted losses per share of ($0.13) for the quarter ended June 30, 2011. For the six months ended June 30, 2012, the Company reported net income of $2.9 million, and basic and diluted earnings per share of $0.41, compared to a net loss of ($740,000) and basic and diluted losses per share of ($0.11) for the same period a year ago.

Total assets for the Company as of June 30, 2012, were $563.0 million, total deposits were $471.2 million, and total loans were $390.4 million, compared to total assets of $629.1 million, total deposits of $538.8 million, and total loans of $458.5 million for the same date in 2011.

Early in the second quarter, New Century completed the sale of its Pembroke and Raeford offices to Lumbee Guaranty Bank, resulting in a one-time gain of $557,000 which was included in non-interest income.

“We are pleased with our second quarter and year-to-date results,” said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank. “Through a focused approach, asset quality has improved, non-performing loans have been reduced, and net interest margin has remained steady. Another positive indicator is that our capital ratios have continued to improve, and we remain well-capitalized which is the highest capital category. As always, we are working to strengthen New Century Bank through the products and services we offer our customers and how we serve them, as well as through a process of continually improving and upgrading our systems. We believe this is critical for remaining a strong community bank as we go forward.”

New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, and a loan production office in Greenville.

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The information as of and for the quarter ended June 30, 2012, 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 six months ended
	June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011			June 30, 2011			June 30, 2012			June 30, 2011			June 30, 2010
Summary of Operations:
Total interest income	$	6,325		$	6,619		$	7,086		$	7,584		$	7,798		$	12,944		$	15,713		$	16,857
Total interest expense		1,684			1,772			1,903			2,089			2,193			3,457			4,433			4,879
Net interest income		4,641			4,847			5,183			5,495			5,605			9,487			11,280			11,978
Provision for loan losses		23			(2,136	)		319			2,194			2,542			(2,113	)		3,706			1,909
Net interest income after provision		4,618			6,983			4,864			3,301			3,063			11,600			7,574			10,069
Noninterest income		1,179			626			642			643			892			1,806			1,533			1,342
Noninterest expense		4,629			4,216			4,574			4,114			5,339			8,845			10,417			9,111
Income (loss) before income taxes		1,168			3,393			932			(170	)		(1,384	)		4,561			(1,310	)		2,300
Provision for income taxes (benefit)		424			1,281			333			(148	)		(523	)		1,704			(570	)		769
Net income (loss)	$	744		$	2,112		$	599		$	(22	)	$	(861	)	$	2,857		$	(740	)	$	1,531
Share and Per Share Data:
Earnings (loss) per share - basic	$	0.11		$	0.31		$	0.09		$	(0.00	)	$	(0.13	)	$	0.41		$	(0.11	)	$	0.22
Book value per share		7.60			7.49			7.22			7.14			7.08			7.60			7.08			8.19
Tangible book value per share		7.55			7.41			7.14			7.05			6.99			7.55			6.99			8.08
Ending shares outstanding		6,913,636			6,913,636			6,860,367			6,860,367			6,913,636			6,913,636			6,913,636			6,891,784
Weighted average shares outstanding:
Basic		6,913,636			6,859,196			6,860,367			6,861,034			6,913,636			6,913,636			6,913,636			6,842,218
Diluted		6,913,636			6,859,196			6,860,367			6,861,034			6,913,636			6,913,636			6,913,636			6,851,055
Selected Performance Ratios:
Return on average assets		0.53	%		1.45	%		0.39	%		-0.01	%		-0.55	%		1.00	%		-0.24	%		0.48	%
Return on average equity		5.67	%		16.89	%		4.80	%		-0.18	%		-6.82	%		11.15	%		-2.95	%		5.53	%
Net interest margin		3.63	%		3.64	%		3.68	%		3.77	%		3.84	%		3.64	%		3.92	%		4.04	%
Efficiency ratio (1)		79.54	%		77.03	%		78.52	%		67.03	%		82.18	%		78.32	%		81.30	%		68.40	%
Period End Balance Sheet Data:
Loans, held for sale	$	—		$	1,552		$	—		$	—		$	—		$	—		$	—		$	—
Loans, net of unearned income		390,403			399,760			417,624			439,410			458,523			390,403			458,523			490,883
Total Earning Assets		514,724			534,057			536,390			564,928			583,854			514,724			583,854			619,867
Other intangible assets		356			516			545			583			622			356			622			776
Total Assets		563,010			580,996			589,651			616,580			629,135			563,010			629,135			663,001
Deposits		471,184			489,966			501,377			527,172			538,812			471,184			538,812			566,031
Short term debt		22,953			23,301			21,877			23,850			23,746			22,953			23,746			20,138
Long term debt		12,372			12,372			14,372			14,372			14,372			12,372			14,372			18,372
Shareholders’ equity		52,541			51,777			49,546			48,949			48,965			52,541			48,965			56,442
Selected Average Balances:
Gross Loans	$	396,190		$	409,009		$	429,642		$	449,650		$	460,236		$	402,600		$	463,263		$	488,557
Total Earning Assets		514,132			535,317			559,110			578,349			585,273			524,724			579,642			597,852
Other intangible assets		384			533			569			602			640			459			659			813
Total Assets		563,835			585,249			608,118			625,768			631,204			574,225			631,205			638,930
Deposits		471,829			495,649			518,508			534,271			539,690			483,739			577,956			542,152
Short term debt		22,961			23,004			23,476			24,491			23,604			23,719			23,863			25,151
Long term debt		12,372			13,845			14,372			14,372			14,372			12,372			14,372			12,372
Shareholders’ equity		52,774			50,300			49,486			49,855			50,669			51,537			50,525			55,815
Asset Quality Ratios:
Nonperforming loans	$	16,579		$	19,270		$	19,636		$	20,116		$	16,307		$	16,579		$	16,307		$	13,885
Other real estate owned		3,859			2,391			3,031			3,230			3,380			3,859			3,380			3,215
Allowance for loan losses		9,183			9,568			10,034			10,338			10,378			9,183			10,378			10,006
Nonperforming loans (2) to period-end loans		4.25	%		4.82	%		4.70	%		4.58	%		3.56	%		4.25	%		3.56	%		2.83	%
Allowance for loan losses to period-end loans		2.35	%		2.39	%		2.40	%		2.35	%		2.26	%		2.35	%		2.26	%		2.04	%
Delinquency Ratio (3)		0.77	%		0.23	%		1.02	%		0.93	%		0.48	%		0.77	%		0.48	%		0.75	%
Net loan charge-offs to average loans		-0.42	%		-1.64	%		0.68	%		1.92	%		1.94	%		0.63	%		1.43	%		0.73	%

(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.