DUNN, N.C., Oct. 30 /PRNewswire-FirstCall/ -- New Century Bancorp
(the "Company" Nasdaq: NCBC), the holding company for New Century
Bank, reported a net loss for the quarter ended September 30, 2009,
of ($369,000) compared to net income of $159,000 for the same
period in 2008. Basic and diluted net income (loss) per share was
($0.05) for third quarter 2009 compared to $0.02 for third quarter
2008. For the nine month period ended the same date, the Company
reported a net loss of ($214,000) compared to net income of
$473,000 for the same period in 2008. Basic and diluted net income
(loss) per share was ($0.03) for the first nine months of 2009
compared to $0.07 for the first nine months of 2008. As New Century
Bank, along with all banks nationwide, deals with the nearly
unprecedented fallout from the recession, quarterly earnings
continue to be adversely impacted by increases in the provision for
loan losses resulting from nonperforming loans. The third quarter
increase in the Company's nonperforming loans resulted principally
from one $3.0 million relationship that was downgraded from past
due to nonaccrual status. In response to this increase in our
nonperforming loans, during the quarter we recorded a provision for
loan losses of $2.4 million. Net interest income increased in a
year-to-year comparison from $4.6 million for the three months
ended September 30, 2008, to nearly $5.1 million for the same
period in 2009. "While our quarterly and year-to-date results are
not what we want them to be," said William L. Hedgepeth III,
president and CEO of New Century Bancorp and New Century Bank,
"there are a number of positive indicators we are pleased with at
this time. Perhaps most importantly, net interest margin improved
from 3.34% for the third quarter last year to 3.52% for the three
months ended September 30, 2009. Net interest income is a key
driver of a bank's financial performance so this positive trend
from 2008 to 2009 is, we hope, an indication that things are moving
in a positive direction. Our staff has worked hard to improve our
margin and we are now seeing the results of their efforts.
"Hand-in-hand with this, we are closely managing noninterest
expenses. We have accomplished this with a keen focus on reducing
and eliminating expenses wherever we can without impacting service
to our customers or hampering our ability to grow the bank. Due to
these efforts, our efficiency ratio was 69.5% for the three months
ended September 30, 2009, compared to 78.7% for the same period in
2008." Impacting income for the first nine months of 2009, were two
previously reported unusual items: a special insurance premium
assessment of $286,000 from the Federal Deposit Insurance
Corporation (FDIC) (the assessment was levied against all banks),
and a one-time permanent impairment charge of $51,000 from our
investment in the stock of the parent company of Silverton Bank,
Atlanta, GA. As of September 30, 2009, the Company reported total
assets of $636.8 million, total deposits of $533.4 million and
total loans of $472.6 million. As of September 30, 2008, these
figures stood at total assets of $596.5 million, total deposits of
$501.8 million, and total loans of $457.8 million, representing
increases of 6.8%, 6.3%, and 3.2%, respectively, in a year-to-year
comparison. "To experience this level of growth in assets, loans
and deposits in this economy is an indication of the hard work of
our staff, as well as the strength of the unique markets we serve.
We believe Cumberland and Harnett counties, in particular, are
poised for tremendous growth due to BRAC (Base Realignment and
Closure). In a recent article in the Fayetteville Observer, it was
reported that BRAC would bring 40,000 new residents to
Fayetteville, Cumberland County and the surrounding area by 2013,
which will result in many new businesses and other opportunities as
these communities support this incredible growth. New Century Bank
is doing, and will continue to do, all we can to meet the financial
services needs of these new residents, and to support our
communities as we welcome this growth. "New Century remains
well-capitalized, which is the highest regulatory standard,"
Hedgepeth said. "Because of our capital position, the Company made
the decision not to participate in the U.S. Government's TARP
(Troubled Asset Relief Program) Capital Purchase Plan, as has
already been reported. We are committed to maintaining a sound
capital position and sufficient liquidity, meeting the borrowing
needs of the markets we serve, and positioning the Company for
future growth," New Century Bank is headquartered in Dunn and has
offices in Dunn, Clinton, Fayetteville (2), Goldsboro, Lillington,
Lumberton, Pembroke, and Raeford. The information as of and for the
quarter ended September 30, 2009, 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 September June March December September 30, 30, 31, 31, 30,
2009 2009 2009 2008 2008 --------- ------- ------ --------
--------- Summary of Operations: Total interest income $8,223
$8,009 $8,252 $8,348 $8,678 Total interest expense 3,170 3,459
3,673 3,991 4,043 --------- ------- ------ -------- --------- Net
interest income 5,053 4,550 4,579 4,357 4,635 Provision for loan
losses 2,377 1,414 685 2,142 895 --------- ------- ------ --------
--------- Net interest income after provision 2,676 3,136 3,894
2,215 3,740 Noninterest income 812 792 845 790 745 Noninterest
expense 4,075 4,428 4,080 4,158 4,233 --------- ------- ------
-------- --------- Income (loss) before income taxes (587) (500)
659 (1,153) 252 Provision for income taxes (benefit) (218) (247)
251 (487) 93 --------- ------- ------ -------- --------- Net income
(loss) $(369) $(253) $408 $(666) $159 ========= ======= ======
======== ========= Share and Per Share Data: Earnings (loss) per
share - basic $(0.05) $(0.04) $0.06 $(0.10) $0.02 Earnings (loss)
per share - diluted (0.05) (0.04) 0.06 (0.10) 0.02 Book value per
share 9.22 9.21 9.23 9.17 9.03 Tangible book value per share 7.82
7.80 7.82 7.76 7.61 Ending shares outstanding 6,837,742 6,836,149
6,831,149 6,831,149 6,827,649 Weighted average shares outstanding:
Basic 6,837,292 6,831,973 6,831,149 6,829,731 6,826,481 Diluted
6,837,292 6,831,973 6,835,476 6,829,731 6,879,919 Selected
Performance Ratios: Return on average assets -0.23% -0.16% 0.27%
-0.43% 0.11% Return on average equity -2.30% -1.60% 2.61% -4.27%
1.02% Net interest margin 3.52% 3.16% 3.26% 3.07% 3.34% Efficiency
ratio (1) 69.48% 82.89% 75.22% 80.78% 78.68% Period End Balance
Sheet Data: Loans, net of unearned income $472,578 $467,872
$469,794 $460,626 $457,784 Total Earning Assets 591,973 573,951
584,030 560,534 547,965 Goodwill and other intangible assets 9,565
9,603 9,642 9,680 9,719 Total Assets 636,810 629,000 628,748
605,767 596,457 Deposits 533,350 527,621 523,537 505,119 501,823
Short term debt 25,693 23,461 27,408 23,175 17,896 Long term debt
12,372 12,372 12,372 12,372 12,372 Shareholders' equity 63,013
62,947 63,059 62,659 61,653 Selected Average Balances: Gross Loans
$469,668 $469,581 $468,062 $458,100 $456,120 Total Earning Assets
570,059 577,774 570,221 562,415 551,353 Goodwill and other
intangible assets 9,584 9,622 9,660 9,699 9,738 Total Assets
634,312 630,180 616,026 607,685 595,049 Deposits 532,427 526,894
513,079 508,911 500,914 Short term debt 23,020 24,606 24,458 21,659
17,077 Long term debt 12,372 12,372 12,372 12,372 12,372
Shareholders' equity 63,588 63,615 63,421 61,868 62,017 Asset
Quality Ratios: Nonperforming loans $16,003 $13,352 $7,739 $8,630
$9,148 Other real estate owned 2,346 2,196 2,333 2,799 677
Allowance for loan losses 10,317 8,519 7,792 8,860 7,140
Nonperforming loans (2) to period-end loans 3.39% 2.85% 1.65% 1.87%
2.00% Allowance for loanlosses to period- end loans 2.18% 1.82%
1.66% 1.92% 1.56% Delinquency Ratio (3) 1.61% 0.51% 0.98% 0.32%
0.34% Net loan charge-offs to average loans 0.49% 0.59% 1.52% 0.39%
0.21% --------- ------- ------ -------- --------- At or for the
nine months ended September September September 30, 2009 30, 2008
30, 2007 --------- --------- --------- Summary of Operations: Total
interest income $24,483 $26,886 $31,255 Total interest expense
10,302 13,382 15,324 --------- --------- --------- Net interest
income 14,181 13,504 15,931 Provision for loan losses 4,477 2,141
5,518 --------- --------- --------- Net interest income after
provision 9,704 11,363 10,413 Noninterest income 2,449 2,338 2,970
Noninterest expense 12,581 12,980 12,166 --------- ---------
--------- Income (loss) before income taxes (428) 721 1,217
Provision for income taxes (benefit) (214) 248 419 ---------
--------- --------- Net income (loss) $(214) $473 $798 ==========
========= ========= Share and Per Share Data: Earnings (loss) per
share - basic $(0.03) $0.07 $0.12 Earnings (loss) per share -
diluted (0.03) 0.07 0.12 Book value per share 9.22 9.03 8.92
Tangible book value per share 7.82 7.61 7.45 Ending shares
outstanding 6,837,742 6,827,649 6,730,874 Weighted average shares
outstanding: Basic 6,833,494 6,808,914 6,560,750 Diluted 6,833,494
6,811,297 6,761,640 Selected Performance Ratios: Return on average
assets -0.05% 0.11% 0.18% Return on average equity -0.45% 1.01%
1.79% Net interest margin 3.31% 3.26% 3.97% Efficiency ratio (1)
75.65% 81.93% 64.37% Period End Balance Sheet Data: Loans, net of
unearned income $472,578 $457,784 $462,713 Total Earning Assets
591,973 547,965 545,760 Goodwill and other intangible assets 9,565
9,719 9,873 Total Assets 636,810 596,457 592,328 Deposits 533,350
501,823 504,535 Short term debt 25,693 17,896 12,974 Long term debt
12,372 12,372 12,372 Shareholders' equity 63,013 61,653 60,035
Selected Average Balances: Gross Loans $469,109 $449,362 $449,114
Total Earning Assets 572,684 552,240 536,324 Goodwill and other
intangible assets 9,622 9,776 9,929 Total Assets 626,903 597,303
580,595 Deposits 524,204 502,603 490,053 Short term debt 24,023
17,593 16,070 Long term debt 12,372 12,372 12,372 Shareholders'
equity 63,542 62,187 59,604 Asset Quality Ratios: Nonperforming
loans $16,003 $9,148 $6,300 Other real estate owned 2,346 669 387
Allowance for loan losses 10,317 7,140 8,636 Nonperforming loans
(2) to period-end loans 3.39% 2.00% 1.36% Allowance for loan losses
to period-end loans 2.18% 1.56% 1.87% Delinquency Ratio (3) 1.61%
0.34% 1.43% Net loan charge-offs to average loans 0.86% 1.09% 1.30%
--------- --------- --------- (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.
http://www.newcenturybanknc.com/ DATASOURCE: New Century Bancorp
CONTACT: Lisa F. Campbell, Executive Vice President, Chief
Operating Officer and Chief Financial Officer, +1-910-892-7080; Web
Site: http://www.newcenturybanknc.com/
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