Income Increases on Growth in Earning Assets as Well as Growth in
Noninterest Income DUNN, N.C., Feb. 8 /PRNewswire-FirstCall/ -- New
Century Bancorp (Nasdaq: NCBC; the "Company"), the holding company
for New Century Bank and New Century Bank South, reported net
income for the year ended December 31, 2006, of $4.7 million,
compared to $3.6 million in 2005, an increase of 31%. Basic and
diluted earnings per share for the year 2006 were $0.82 and $0.78,
respectively, compared to basic and diluted earnings per share for
2005 of $0.72 and $0.66, respectively. In a year-to-year
comparison, these results were impacted by systems conversion and
other merger-related expenses amounting to $329,000 related to the
acquisition of Progressive State Bank in the third quarter of 2006.
In addition, the earnings per share calculation was impacted by a
successful offering of New Century Bancorp stock during the second
quarter of 2006, which resulted in the issuance of 1,150,000 new
shares. For the quarter ended December 31, 2006, the Company
reported net income of $1.3 million, compared to $1.0 million for
the same period in 2005. Basic and diluted earnings per share for
fourth quarter 2006 were $0.20 and $0.19, respectively, compared to
basic and diluted earnings per share for fourth quarter 2005 of
$0.20 and $0.18, respectively. As of December 31, 2006, the Company
reported total assets of $554.2 million compared to $436.4 million
at December 31, 2005, an increase of 27%. Total deposits were
$464.1 million and total loans were $429.5 million at year end
2006, compared to total deposits of $367.0 million and total loans
of $326.9 million at year end 2005, increases of 26% and 31%,
respectively. Income for 2006 was positively impacted by a number
of factors: a higher net interest margin for 2006 over 2005;
increases in earning assets, partially due to the acquisition of
Progressive State Bank; and increases in non-interest income from
SBA lending activities, mortgage loan origination fees, deposit
service charges, and other fee income. "Everyone with New Century
is pleased to announce our 2006 earnings and the success we have
had," said John Q. Shaw, president and CEO of the Company. "It was
a productive year in which we undertook expansion plans to increase
the value of our franchise. In addition to acquiring Progressive
State Bank, we opened a second office in Clinton and a new office
in Lillington. We began construction on a second office in
Fayetteville, purchased land for a permanent facility in
Lillington, and made plans for a second office in Goldsboro. "In
2007, we will continue to look for opportunities that expand our
franchise while increasing the overall value of New Century
Bancorp." New Century Bank is headquartered in Dunn and has branch
offices in Clinton, Goldsboro, and Lillington; and New Century Bank
South is headquartered in Fayetteville with branch offices in
Dublin, Lumberton, Pembroke, and Raeford.
http://www.newcenturybanknc.com/ The information as of and for the
quarter and year ended December 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. Financial
Highlights (Unaudited - dollars in thousands except per share and
ratios) At or for the three months At or for the year Ended
December 31, Ended December 31, 2006 2005 2006 2005 Operating Data:
Total interest income $10,190 $7,155 $35,812 $24,679 Total interest
expense 4,785 3,028 16,167 10,089 Net interest income 5,405 4,127
19,645 14,590 Provision for loan losses 409 469 1,529 2,172 Net
interest income after provision 4,996 3,658 18,116 12,418
Noninterest income 1,182 751 3,278 2,496 Noninterest expense 4,035
2,558 13,816 9,129 Income before income taxes 2,143 1,851 7,578
5,785 Provision for income taxes 836 841 2,840 2,164 Net income
$1,307 $1,010 $4,738 $ 3,621 Share and Per Share Data (1): Earnings
per share - basic $0.20 $0.20 $0.82 $0.72 Earnings per share -
diluted 0.19 0.18 0.78 0.66 Book value per share 8.96 6.48 8.96
6.48 Tangible book value per share 7.42 6.48 7.42 6.48 Ending
number of shares outstanding 6,497,022 5,089,248 6,497,022
5,089,248 Average number of shares outstanding 6,492,748 5,081,363
5,784,671 5,061,791 Diluted number of shares outstanding 6,799,966
5,507,994 6,115,709 5,478,658 Selected Performance Ratios,
annualized: Return on average assets 0.94% 0.96% 0.96% 0.95% Return
on average equity 8.96% 12.22% 10.39% 11.47% Net interest margin
4.20% 4.14% 4.28% 4.02% Efficiency Ratio (2) 61.26% 52.44% 60.27%
53.43% Selected Period End Balance Sheet Data: Loans, net of
unearned income $429,500 $326,852 $429,500 $326,852 Total earning
assets 509,513 412,323 509,513 412,323 Goodwill and other
intangible assets 9,988 - 9,988 - Total assets 554,215 436,367
554,215 436,367 Deposits 464,117 367,003 464,117 367,003 Short term
debt 14,441 11,743 14,441 11,743 Long term debt 14,372 22,372
14,372 22,372 Shareholders' equity 58,207 32,974 58,207 32,974
Selected Average Balances: 4th qtr YTD Loans, net of unearned
income $412,798 $325,248 $369,110 $301,457 Total earning assets
510,206 395,916 458,974 362,669 Goodwill and other intangible
assets 9,274 - 4,087 - Total assets 553,171 416,958 491,849 381,440
Deposits 460,516 349,763 412,078 317,648 Short term debt 14,978
10,156 12,351 7,677 Long term debt 16,790 22,372 19,180 23,049
Shareholders' equity 57,871 32,784 45,614 31,583 Asset Quality:
Nonperforming assets $2,821 $1,271 $2,821 $1,271 Allowance for loan
losses $6,246 $5,298 $6,246 $5,298 Allowance for loan losses to
period-end loans 1.45% 1.62% 1.45% 1.62% Net loan charge-offs to
average loans 0.11% 0.32% 0.27% 0.16% (1) Adjusted for all periods
presented to reflect the effect of a 3-for-2 stock split effective
July 2005 and a 6-for-5 stock split effective December 2006: (2)
Efficiency ratio is non-interest expense divided by the sum of net
interest income and non-interest income DATASOURCE: New Century
Bancorp CONTACT: Lisa F. Campbell, Executive Vice President and CFO
of New Century Bancorp, +1-910-892-7080, Web site:
http://www.newcenturybanknc.com/
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