DUNN, N.C., May 11 /PRNewswire-FirstCall/ -- New Century Bancorp (the "Company") (OTC:NCBC) (BULLETIN BOARD: NCBC) , the holding company for New Century Bank and New Century Bank South, reported net income for the quarter ended March 31, 2006 of $1.1 million, or basic and diluted earnings per share of $0.25 and $0.23, respectively, compared to net income of $805,000 or basic and diluted earnings per share of $0.19 and $0.18, respectively, for the same period in 2005, representing an increase in net income of 36% in the year-to- year comparison. As of March 31, 2006, the Company reported total assets of $442.9 million compared to $357.6 million at March 31, 2005, an increase of 24%. Total deposits were $374.1 million and total loans were $339.7 million compared to total deposits of $295.7 million and total loans of $287.9 million at the end of first quarter 2005, increases of 27% and 18%, respectively. "The year 2006 has started off well for New Century Bancorp," said John Q. Shaw, president and CEO for the Company. "Our earnings results were above the first quarter of last year, primarily due to our performance regarding net interest income. As prime lending rates have increased, and as we have continued to grow earning assets, our net interest margin has increased and the results are reflected in net interest income. "Our Company is growing. During the first quarter we opened a new office in a temporary location in Lillington, NC. David Stephens and his staff of experienced, local bankers are already creating good customer relationships in that market. A ribbon-cutting is planned for the temporary facility in early May, as we continue our search for a permanent location in this vital Harnett County community. In addition, we announced the pending acquisition of Progressive State Bank, which is headquartered in Lumberton, NC. Progressive, which has five offices, will become part of New Century Bank South (formerly New Century Bank of Fayetteville). Progressive shareholders have approved the merger, and with regulatory approval expected, the merger is planned to be final in July." New Century Bank has offices in Dunn, NC, Clinton, NC, Goldsboro, NC, and Lillington, NC, and New Century Bank South serves Fayetteville through a new headquarters and banking office at 2818 Raeford Road in Fayetteville, NC. The information as of and for the quarter and year ended March 31, 2006 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, 2006 2005 Operating Data: Total interest income $7,652 $5,127 Total interest expense 3,321 1,901 Net interest income 4,331 3,226 Provision for loan losses 408 500 Net interest income after provision 3,923 2,726 Noninterest income 553 556 Noninterest expense 2,738 2,062 Income before income taxes 1,738 1,220 Provision for income taxes 669 415 Net income $1,069 $805 Per Share Data (1): Earnings per share - basic $0.25 $0.19 Earnings per share - diluted 0.23 0.18 Market price High 25.00 16.00 Low 20.20 12.67 Close 20.30 16.00 Book value 8.02 7.13 Weighted average shares outstanding Basic 4,250,384 4,217,216 Diluted 4,567,272 4,471,716 Selected Quarter-End Balance Sheet Data: Gross loans $339,650 $287,981 Allowance for loan losses 5,673 4,083 Other earning assets 84,260 56,031 Total assets 442,970 357,600 Deposits 374,119 295,716 Borrowings 32,649 18,450 Shareholders' equity 34,138 30,067 Selected YTD Average Balances: Total assets $440,339 $339,454 Loans, net of allowance 330,645 271,654 Total interest-earning assets, net of allowance 416,599 321,935 Deposits 371,431 278,050 Total interest-bearing liabilities 351,541 271,511 Shareholders' Equity 33,982 30,415 Selected Performance Ratios: Return on average assets 0.98% 0.96% Return on average equity 12.76% 10.73% Noninterest expense to average assets 2.52% 2.46% Asset Quality Ratios: Nonperforming loans to period-end loans 0.27% 0.07% Allowance for loan losses to period-end loans 1.67% 1.42% Net loan charge-offs to average loans 0.04% 0.02% Other Data: Number of banking offices 6 4 Number of full-time equivalent employees 105 74 (1) 2005 share and per share data restated to reflect the Company's 3-for-2 stock split that was declared in July 2005. DATASOURCE: New Century Bancorp CONTACT: Lisa F. Campbell, Executive Vice President and CFO of New Century Bancorp, +1-910-892-7080, or Web site: http://www.newcenturybanknc.com/

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