DUNN, N.C., Feb. 12 /PRNewswire-FirstCall/ -- New Century Bancorp
(the "Company" -- Nasdaq: NCBC), the holding company for New
Century Bank and New Century Bank South, reported net income of
$1.66 million for the year ended December 31, 2007, compared to net
income of $3.97 million in 2006, a decrease of 58%. This decrease
in net income is primarily due to increases in the provision for
loan losses that were necessitated by the identification of problem
loans in the portfolio of New Century Bank, as has already been
reported. Basic and diluted earnings per share for 2007 were $0.25
and $0.24, respectively, compared to basic and diluted earnings per
share of $0.69 and $0.65, respectively, for 2006. For the quarter
ended December 31, 2007, the Company reported net income of
$861,000, an increase of 60% over net income of $539,000 for fourth
quarter 2006. Basic and diluted earnings per share for fourth
quarter 2007 were $0.13, compared to basic and diluted earnings per
share for fourth quarter 2006 of $0.08. As of December 31, 2007,
the Company reported total assets of $591.0 million compared to
$552.9 million as of December 31, 2006, an increase of 7%. Total
deposits increased 7% to $498.1 million and total loans increased
4% to $442.9 at year end 2007, compared to total deposits and total
loans of $464.1 million and $427.9 million, respectively, at year
end 2006. Commenting on the results, William L. Hedgepeth II,
president and CEO of New Century Bancorp said, "We are pleased to
report positive results for 2007, a year in which we faced a number
of challenges as a Company. Early in the year, we expanded our
franchise by opening an office on Ramsey Street in Fayetteville,
NC, our second office in this growing market. Later, we opened a
permanent office in Lillington, NC, building on the success of our
temporary facility in this town that serves as the county seat of
Harnett County. As our headquarters is located in Dunn, NC, we are
pleased to report that, based on Federal Deposit Insurance
Corporation (FDIC) data as of June 30, 2007, we maintained our
number one ranking in deposit market share there, and also rose to
number three in market share in Goldsboro, NC in only a few short
years. "During the fourth quarter, we announced the merger of New
Century Bank and New Century Bank South, which we anticipate will
take place prior to the end of first quarter 2008. We are excited
that this is moving forward and anticipate that this merger will
streamline processes at our bank and provide long-term benefits to
our customers. "In January 2008, we hired a new executive vice
president and chief credit officer who brings a great deal of
experience to our Company. He has responsibility for our entire
credit function and will ensure that we maintain a high standard
for credit quality." New Century Bank has offices in Dunn, Clinton,
Goldsboro, and Lillington, and New Century Bank South has offices
in Fayetteville, Lumberton, Pembroke and Raeford. NASDAQ: NCBC
http://www.newcenturybanknc.com/ The information as of and for the
year and quarter ended December 31, 2007, 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 At or for the three months twelve months
Ended December 31, Ended December 31, 2007 2006 2007 2006 Summary
of Operations: Total interest income $10,341 $10,190 $41,598
$35,812 Total interest expense 5,329 4,785 20,653 16,167 Net
interest income 5,012 5,405 20,945 19,645 Provision for loan losses
456 1,659 5,974 2,779 Net interest income after provision 4,556
3,746 14,971 16,866 Noninterest income 901 1,182 3,870 3,278
Noninterest expense 4,062 4,035 16,229 13,816 Income before income
taxes 1,395 893 2,612 6,328 Provision for income taxes 534 354 953
2,358 Net income $861 $539 $1,659 $3,970 Share and Per Share Data
(1): Earnings per share - basic $0.13 $0.08 $0.25 $0.69 Earnings
per share - diluted 0.13 0.08 0.24 0.65 Book value per share 9.09
8.84 9.09 8.84 Tangible book value per share 7.63 7.30 7.63 7.30
Ending shares outstanding 6,730,874 6,497,022 6,730,874 6,497,022
Weighted average shares outstanding: Basic 6,730,874 6,492,748
6,603,631 5,784,671 Diluted 6,813,860 6,799,966 6,789,608 6,115,709
Selected Performance Ratios: Return on average assets 0.57% 0.39%
0.28% 0.81% Return on average equity 5.61% 3.70% 2.77% 8.71% Net
interest margin 3.62% 4.20% 3.88% 4.28% Efficiency ratio (2) 68.70%
61.26% 65.40% 60.27% Period End Balance Sheet Data: Loans, net of
unearned income $442,875 $427,948 $442,875 $427,948 Total Earning
Assets 543,167 508,263 543,167 508,263 Goodwill and other
intangible assets 9,834 9,988 9,834 9,988 Total Assets 591,025
552,965 591,025 552,965 Deposits 498,123 464,117 498,123 464,117
Short term debt 16,967 16,441 16,967 16,441 Long term debt 12,372
12,372 12,372 12,372 Shareholders' equity 61,173 57,439 61,173
57,439 Selected Average Balances: Gross Loans $451,831 $412,798
$449,799 $369,110 Total Earning Assets 549,026 510,165 539,526
458,964 Goodwill and other intangible assets 9,853 9,274 9,910
4,087 Total Assets 596,185 553,131 584,524 491,839 Deposits 505,670
460,516 493,989 412,078 Short term debt 14,488 19,396 15,672 19,158
Long term debt 12,372 12,372 12,372 12,372 Shareholders' equity
60,914 57,846 59,888 45,570 Asset Quality Ratios: Nonperforming
assets $5,583 $3,383 $5,583 $3,383 Allowance for loan losses 8,314
7,496 8,314 7,496 Nonperforming loans (3) to period-end loans 1.12%
0.75% 1.12% 0.75% Allowance for loan losses to period-end loans (4)
1.88% 1.75% 1.88% 1.75% Net loan charge-offs to average loans 0.68%
0.11% 1.15% 0.27% (1) Adjusted for all periods presented to reflect
the effects of a six- for-five stock split in the form of a 20%
stock dividend in December 2006. (2) Efficiency ratio is calculated
as non-interest expenses divided by the sum of net interest income
and non-interest income. (3) Nonperforming loans consist of
non-accrual loans and restructured loans. (4) Allowance for loan
losses to period-end loans ratio excludes loans held for sale.
DATASOURCE: New Century Bancorp CONTACT: Lisa F. Campbell,
Executive Vice President, Chief Operating Officer and Chief
Financial Officer, New Century Bancorp, +1-910-892-7080, Web site:
http://www.newcenturybanknc.com/
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