Exhibit 99.1
| FOR RELEASE: | November 7, 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 | ||||
| newcenturybanknc.com |
NEW CENTURY BANCORP REPORTS
THIRD QUARTER 2012 EARNINGS
Company reports year-over-year quarterly and year-to-date earnings increases.
DUNN, NC . . . New Century Bancorp (the “Company”NASDAQ: NCBC), the holding company for New Century Bank, today reported net income of $632,000 for the quarter ended September 30, 2012, and basic and diluted earnings per share of $0.09, compared to a net loss of ($22,000) and basic and diluted losses per share of ($0.00) for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, the Company reported net income of $3.9 million, and basic and diluted earnings per share of $0.57, compared to a net loss of ($762,000) and basic and diluted losses per share of ($0.11) for the same period a year ago.
Total assets for the Company as of September 30, 2012, were $577.8 million, total deposits were $481.3 million and total loans were $386.0 million, compared to total assets of $616.5 million, total deposits of $527.1 million, and total loans of $439.4 million for the same date in 2011.
Positively impacting year-to-date 2012 results are a $2.4 million loan recovery during first quarter 2012 and a $557,000 gain on the sale of New Century Bank’s Pembroke and Raeford branches to Lumbee Guaranty Bank during second quarter 2012.
“We continue to be pleased with our improving results,” said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank. “While bolstered by the loan recovery and the gain on the sale of two branch offices, our results from operations are strong on their own. We are still focused on reducing non-performing assets and on working with customers to help them deal with the lingering impact of the recent recession. We’ve reduced non-interest expenses, while offering a full line of current products and services, including upgraded online services. The Company remains well-capitalized, which is the highest capital category.
“We are lending money to businesses and individuals in our communities, to not only support our customers, but in support of the overall economic health of our markets. This is one of the primary roles of a community bank.
“In August, we announced the opening of our loan production office in Raleigh, NC. We are off to a great start in meeting the lending needs of customers in Wake County and in building our customer base in this key market.
“As the quarter ended, the Federal Deposit Insurance Corporation (FDIC) released deposit market share data as of June 30, 2012, and I am pleased to report New Century maintained the number one position in deposit market share in Dunn, our headquarters city, for the tenth straight year. We congratulate our staff here on their hard work and success in developing strong, lasting deposit customer relationships.”
New Century Bank has branch offices in these North Carolina communities: Dunn, Clinton, Fayetteville, Goldsboro, Lillington, Lumberton, and loan production offices in Greenville and Raleigh.
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The information as of and for the quarter and nine months ended September 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 nine months ended | |||||||||||||||||||||||||||||||
| September 30, 2012 | June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | September 30, 2012 | September 30, 2011 | September 30, 2010 | |||||||||||||||||||||||||
Summary of Operations: | ||||||||||||||||||||||||||||||||
Total interest income | $ | 6,198 | $ | 6,325 | $ | 6,619 | $ | 7,086 | $ | 7,584 | $ | 19,142 | $ | 23,297 | $ | 25,285 | ||||||||||||||||
Total interest expense | 1,623 | 1,684 | 1,772 | 1,903 | 2,089 | 5,080 | 6,522 | 7,318 | ||||||||||||||||||||||||
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Net interest income | 4,575 | 4,641 | 4,847 | 5,183 | 5,495 | 14,062 | 16,775 | 17,967 | ||||||||||||||||||||||||
Provision for loan losses | 189 | (649 | ) | (2,136 | ) | 319 | 2,194 | (2,597 | ) | 5,900 | 14,366 | |||||||||||||||||||||
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Net interest income after provision | 4,386 | 5,290 | 6,983 | 4,864 | 3,301 | 16,659 | 10,875 | 3,601 | ||||||||||||||||||||||||
Noninterest income | 757 | 1,199 | 626 | 642 | 643 | 2,582 | 2,176 | 1,975 | ||||||||||||||||||||||||
Noninterest expense | 4,170 | 4,648 | 4,216 | 4,574 | 4,114 | 13,034 | 14,531 | 13,842 | ||||||||||||||||||||||||
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Income (loss) before income taxes | 973 | 1,841 | 3,393 | 932 | (170 | ) | 6,207 | (1,480 | ) | (8,266 | ) | |||||||||||||||||||||
Provision for income taxes (benefit) | 341 | 683 | 1,281 | 333 | (148 | ) | 2,305 | (718 | ) | (3,186 | ) | |||||||||||||||||||||
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Net income (loss) | $ | 632 | $ | 1,158 | $ | 2,112 | $ | 599 | $ | (22 | ) | $ | 3,902 | $ | (762 | ) | $ | (5,080 | ) | |||||||||||||
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Share and Per Share Data: | ||||||||||||||||||||||||||||||||
Earnings (loss) per share - basic | $ | 0.09 | $ | 0.17 | $ | 0.31 | $ | 0.09 | $ | (0.00 | ) | $ | 0.57 | $ | (0.11 | ) | $ | (0.74 | ) | |||||||||||||
Earnings (loss) per share - diluted | $ | 0.09 | $ | 0.17 | $ | 0.31 | $ | 0.03 | $ | (0.00 | ) | $ | 0.57 | $ | (0.11 | ) | (0.74 | ) | ||||||||||||||
Book value per share | 7.76 | 7.66 | 7.49 | 7.22 | 7.14 | 7.76 | 7.14 | 7.22 | ||||||||||||||||||||||||
Tangible book value per share | 7.72 | 7.61 | 7.41 | 7.14 | 7.05 | 7.72 | 7.05 | 7.11 | ||||||||||||||||||||||||
Ending shares outstanding | 6,913,636 | 6,913,636 | 6,913,636 | 6,860,367 | 6,860,367 | 6,913,636 | 6,860,367 | 6,913,636 | ||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 6,913,636 | 6,913,636 | 6,859,196 | 6,860,367 | 6,861,034 | 6,892,946 | 6,896,102 | 6,864,543 | ||||||||||||||||||||||||
Diluted | 6,914,085 | 6,913,636 | 6,859,196 | 6,860,367 | 6,861,034 | 6,893,064 | 6,896,102 | 6,864,543 | ||||||||||||||||||||||||
Selected Performance Ratios: | ||||||||||||||||||||||||||||||||
Return on average assets | 0.44 | % | 0.83 | % | 1.45 | % | 0.39 | % | -0.01 | % | 0.91 | % | -0.16 | % | -1.05 | % | ||||||||||||||||
Return on average equity | 4.69 | % | 8.82 | % | 16.89 | % | 4.80 | % | -0.18 | % | 9.98 | % | -2.03 | % | -12.12 | % | ||||||||||||||||
Net interest margin | 3.51 | % | 3.63 | % | 3.64 | % | 3.68 | % | 3.77 | % | 3.61 | % | 3.85 | % | 3.97 | % | ||||||||||||||||
Efficiency ratio(1) | 78.21 | % | 79.59 | % | 77.03 | % | 78.52 | % | 67.03 | % | 78.31 | % | 76.68 | % | 69.41 | % | ||||||||||||||||
Period End Balance Sheet Data: | ||||||||||||||||||||||||||||||||
Loans, held for sale | $ | — | $ | — | $ | 1,552 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Loans, net of unearned income | 386,096 | 390,403 | 399,760 | 417,624 | 439,410 | 386,096 | 439,410 | 467,876 | ||||||||||||||||||||||||
Total Earning Assets | 514,767 | 515,397 | 534,057 | 536,390 | 564,928 | 514,767 | 564,928 | 594,425 | ||||||||||||||||||||||||
Core Deposit Intangible | 327 | 356 | 516 | 545 | 583 | 327 | 583 | 737 | ||||||||||||||||||||||||
Total Assets | 577,833 | 563,682 | 580,996 | 589,651 | 616,580 | 577,833 | 616,580 | 643,185 | ||||||||||||||||||||||||
Deposits | 481,320 | 471,184 | 489,966 | 501,377 | 527,172 | 481,320 | 527,172 | 548,866 | ||||||||||||||||||||||||
Short term debt | 26,195 | 22,953 | 23,301 | 21,877 | 23,850 | 26,195 | 23,850 | 24,138 | ||||||||||||||||||||||||
Long term debt | 12,372 | 12,372 | 12,372 | 14,372 | 14,372 | 12,372 | 14,372 | 14,372 | ||||||||||||||||||||||||
Shareholders’ equity | 53,671 | 52,954 | 51,777 | 49,546 | 48,949 | 53,671 | 48,949 | 49,906 | ||||||||||||||||||||||||
Selected Average Balances: | ||||||||||||||||||||||||||||||||
Gross Loans | $ | 386,217 | $ | 396,190 | $ | 409,009 | $ | 429,642 | $ | 449,650 | $ | 397,099 | $ | 458,676 | $ | 487,847 | ||||||||||||||||
Total Earning Assets | 518,761 | 514,147 | 535,317 | 559,110 | 578,349 | 520,492 | 582,777 | 604,379 | ||||||||||||||||||||||||
Core Deposit Intangible | 339 | 379 | 533 | 569 | 602 | 415 | 640 | 794 | ||||||||||||||||||||||||
Total Assets | 569,048 | 563,850 | 585,249 | 608,118 | 625,768 | 572,482 | 629,372 | 646,134 | ||||||||||||||||||||||||
Deposits | 474,069 | 471,829 | 495,649 | 518,508 | 534,271 | 480,492 | 537,884 | 548,483 | ||||||||||||||||||||||||
Short term debt | 24,609 | 22,961 | 23,004 | 23,476 | 24,491 | 24,018 | 22,075 | 21,178 | ||||||||||||||||||||||||
Long term debt | 12,372 | 12,372 | 13,845 | 14,372 | 14,372 | 12,372 | 16,372 | 16,920 | ||||||||||||||||||||||||
Shareholders’ equity | 53,619 | 52,783 | 50,300 | 49,486 | 49,855 | 52,239 | 50,299 | 56,026 | ||||||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 18,613 | $ | 16,579 | $ | 19,270 | $ | 19,636 | $ | 20,116 | $ | 18,613 | $ | 20,116 | $ | 9,678 | ||||||||||||||||
Other real estate owned | 2,849 | 3,859 | 2,391 | 3,031 | 3,230 | 2,849 | $ | 3,230 | 3,812 | |||||||||||||||||||||||
Allowance for loan losses | 8,588 | 8,510 | 9,568 | 10,034 | 10,338 | 8,588 | $ | 10,338 | 8,081 | |||||||||||||||||||||||
Nonperforming loans(2) to period-end loans | 4.82 | % | 4.25 | % | 4.82 | % | 4.70 | % | 4.58 | % | 4.82 | % | 4.58 | % | 2.07 | % | ||||||||||||||||
Allowance for loan losses to period-end loans | 2.22 | % | 2.18 | % | 2.39 | % | 2.40 | % | 2.35 | % | 2.22 | % | 2.35 | % | 1.73 | % | ||||||||||||||||
Delinquency Ratio(3) | 0.47 | % | 0.77 | % | 0.23 | % | 1.02 | % | 0.93 | % | 0.47 | % | 0.93 | % | 1.23 | % | ||||||||||||||||
Net loan charge-offs to average loans | -0.42 | % | -0.42 | % | -1.64 | % | 0.68 | % | 1.92 | % | -0.42 | % | -0.37 | % | 4.56 | % | ||||||||||||||||
| (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. |