New Century Bancorp Reports First Quarter 2005 Earnings DUNN, N.C., May 13 /PRNewswire-FirstCall/ -- New Century Bancorp (the "Company") (OTC:NCBC) (BULLETIN BOARD: NCBC) , the holding company for New Century Bank and New Century Bank of Fayetteville, reported net income for the quarter ended March 31, 2005 of $805,000 compared to $84,000 for the same period in 2004. The increase in earnings is attributed to the rapid growth of New Century Bank of Fayetteville and New Century Bank's office in Goldsboro, NC; both offices officially opened early in first quarter 2004. In addition, first quarter 2004 earnings reflected a larger provision for loan losses than in 2005, due to exceptional loan growth during that period. Basic and diluted earnings per share for first quarter 2005 were $0.29 and $0.27, respectively. For 2004, basic and diluted earnings per share were both $0.03. As of March 31, 2005, the Company reported total assets of $357.6 million compared to $235.2 million at March 31, 2004, an increase of 52%. Total deposits were $295.7 million and total loans were $288.0 million at the end of first quarter 2005, compared to total deposits of $195.7 million and total loans of $190.6 million as of the end of first quarter 2004, increases of 51% and 51%, respectively. "New Century Bancorp is off to a great start in 2005," said John Q. Shaw, president and CEO for the Company. "We are pleased with these results. Loan growth has been steady and these earnings assets have boosted net interest income, which is the largest factor in our net income results. Noninterest income has continued at the same level as in 2004, a year in which we experienced positive growth in this area, while noninterest expenses have increased due to our investment in people and in the infrastructure of our Company through our bank offices." New Century Bank has offices in Dunn, NC, Clinton, NC, and Goldsboro, NC and New Century Bank of Fayetteville serves Fayetteville through a new headquarters and banking office at 2818 Raeford Road in Fayetteville, NC. http://www.newcenturybanknc.com/ The information as of and for the quarter and year ended March 31, 2005 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 and nonfinancial data) At or for the three months Ended March 31, 2005 2004 Operating Data: Total interest income $5,127 $2,898 Total interest expense 1,901 914 Net interest income 3,226 1,984 Provision for loan losses 500 603 Net interest income after provision 2,726 1,381 Noninterest income 556 348 Noninterest expense 2,062 1,607 Income before income taxes 1,220 122 Provision for income taxes 415 38 Net income $805 $84 Per Share Data (1): Earnings per share - basic $0.29 $0.03 Earnings per share - diluted 0.27 0.03 Market price High 24.00 18.18 Low 19.00 13.77 Close 24.00 18.18 Book value 10.69 9.80 Weighted average shares outstanding Basic 2,811,477 2,795,334 Diluted 2,981,144 2,898,394 Selected Quarter-End Balance Sheet Data: Loans $287,981 $190,603 Allowance for loan losses 4,083 2,954 Other earning assets 54,885 34,785 Total assets 357,600 235,239 Deposits 295,716 195,666 Borrowings 18,450 11,772 Shareholders' equity 30,067 27,399 Selected YTD Average Balances: Total assets $339,386 $209,076 Loans, net of allowance 271,619 166,038 Total interest-earning assets 321,899 197,537 Deposits 278,041 169,391 Total interest-bearing liabilities 271,509 155,873 Shareholders' Equity 30,374 27,549 Selected Performance Ratios: Return on average assets 0.96% 0.16% Return on average equity 10.75% 1.23% Noninterest expense to average assets 2.46% 3.09% Asset Quality Ratios: Nonperforming loans to period-end loans 0.14% 0.16% Allowance for loan losses to period-end loans 1.42% 1.55% Net loan charge-offs to average loans 0.00% 0.02% Other Data: Number of banking offices 4 4 Number of full time equivalent employees 74 61 (1) 2004 share and per share data restated to reflect the Company's 11-for-10 stock split in the form of a 10% stock dividend that was declared in June 2004. DATASOURCE: New Century Bancorp CONTACT: Lisa F. Campbell, Senior Vice President and CFO of New Century Bancorp, +1-910-892-7080, or Web site: http://www.newcenturybanknc.com/

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