DUNN, N.C., April 30 /PRNewswire-FirstCall/ -- New Century Bancorp (the "Company" - Nasdaq: NCBC), the holding company for New Century Bank, reported net income for the quarter ended March 31, 2009, of $408,000, compared to a net loss of $90,000 for the same period in 2008. Basic and diluted earnings per share for first quarter 2009 were $0.06 compared to ($0.01) for first quarter 2008. As of March 31, 2009, the Company reported total assets of $628.7 million, total deposits of $523.5 million and total loans of $469.8 million. As of March 31, 2008, these figures stood at total assets of $603.4 million, total deposits of $508.9 million, and total loans of $446.7 million, for increases of 4.2%, 2.9%, and 5.2%, respectively, year-to-year. At December 31, 2008, total assets were $605.8 million, total deposits were $505.1 million and total loans were $460.6 million, meaning New Century experienced increases from quarter-to-quarter of 3.8%, 3.6%, and 2.0% respectively. "In light of the current economy, we are pleased with our balance sheet growth in both a year-to-year and a linked quarter comparison," said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank. "In addition, we have started the year with positive net income. In part, this is due to a stronger net interest margin at 3.26%--compared to 3.15% in first quarter 2008 and 3.07% in fourth quarter 2008--as well as a reduction in operating expenses. Total non-interest expenses were $3.9 million for first quarter 2009, compared to $4.1 million for both the first and fourth quarters of 2008. Both net interest margin and operating efficiency are key indicators we have focused on and we are particularly pleased to see the progress that has been made in those areas. "There is no question that we, along with other banks, are dealing with difficult economic circumstances that continue to negatively impact the housing and real estate markets, lowering property values and presenting challenges regarding credit quality. This was reflected in the significant increase in the level of our loan charge-offs during the first quarter of 2009. However, we had provided for much of the loss associated with these specific charge-offs in our allowance for loan losses at the end of 2008. Therefore, the impact on our 2009 earnings was significantly less than the actual amounts charged-off during the quarter. Due largely to the charge-offs, the level of our nonperforming assets decreased by $1.1 million during the quarter. We will continue to be diligent in our efforts to monitor and improve the quality of our loan portfolio." New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton (2), Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford. The information as of and for the quarter ended March 31, 2009, as presented is unaudited. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of our goals and expectations with respect to earnings, earnings per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "projects," "outlook" or similar expressions. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including, but not limited to, our ability to manage growth, our limited operating history, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other savings and financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's SEC filings, including its periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from the Company. New Century Bancorp, Inc. Selected Financial Information and Other Data ($ in thousands, except per share data) At or for the three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2009 2008 2008 2008 2008 -------- -------- -------- -------- -------- Summary of Operations: Total interest income $8,252 $8,348 $8,678 $8,827 $9,382 Total interest expense 3,673 3,991 4,043 4,299 5,040 ----- ----- ----- ----- ----- Net interest income 4,579 4,357 4,635 4,528 4,342 Provision for loan losses 685 2,142 895 374 873 --- ----- --- --- --- Net interest income after provision 3,894 2,215 3,740 4,154 3,469 Noninterest income 650 690 620 610 487 Noninterest expense 3,885 4,058 4,108 4,153 4,098 ----- ----- ----- ----- ----- Income before income taxes 659 (1,153) 252 611 (142) Provision for income taxes 251 (487) 93 207 (52) --- ----- -- --- ---- Net income $408 $(666) $159 $404 (90) ==== ====== ==== ==== ==== Share and Per Share Data: Earnings per share - basic $0.06 $(0.10) $0.02 $0.06 $(0.01) Earnings per share - diluted 0.06 (0.10) 0.02 0.06 (0.01) Book value per share 9.23 9.17 9.03 8.97 9.09 Tangible book value per share 7.82 7.76 7.61 7.54 7.65 Ending shares outstanding 6,831,149 6,831,149 6,827,649 6,822,659 6,799,183 Weighted average shares outstanding: Basic 6,831,149 6,829,731 6,826,481 6,816,966 6,764,291 Diluted 6,835,476 6,829,731 6,879,919 6,860,016 6,764,291 Selected Performance Ratios: Return on average assets 0.27% -0.43% 0.11% 0.27% -0.06% Return on average equity 2.61% -4.27% 1.02% 2.60% -0.58% Net interest margin 3.26% 3.07% 3.34% 3.29% 3.15% Efficiency ratio (1) 74.30% 80.40% 78.17% 80.83% 84.86% Period End Balance Sheet Data: Loans, net of unearned income $469,794 $460,626 $457,784 $452,045 $446,699 Total Earning Assets 584,030 560,534 547,965 550,984 558,092 Goodwill and other intangible assets 9,642 9,680 9,719 9,757 9,796 Total Assets 628,748 605,767 596,457 598,831 603,402 Deposits 523,537 505,119 501,823 505,400 508,891 Short term debt 27,408 23,175 17,896 17,441 17,990 Long term debt 12,372 12,372 12,372 12,372 12,372 Shareholders' equity 63,059 62,659 61,653 61,201 61,822 Selected Average Balances: Gross Loans $468,062 $458,100 $456,120 $449,254 $442,636 Total Earning Assets 570,221 562,415 551,353 552,581 552,797 Goodwill and other intangible assets 9,660 9,699 9,738 9,776 9,814 Total Assets 616,026 607,685 595,049 597,193 599,692 Deposits 513,079 508,911 500,914 502,742 504,170 Short term debt 24,458 21,659 17,077 17,243 18,464 Long term debt 12,372 12,372 12,372 12,372 12,372 Shareholders' equity 63,421 61,868 62,017 62,275 62,271 Asset Quality Ratios: Nonperforming loans $7,739 $8,536 $9,144 $8,443 $9,396 Other real estate owned 2,333 2,799 677 439 731 Allowance for loan losses 7,792 8,860 7,140 6,483 9,142 Nonperforming loans (2) to period-end loans 1.65% 1.85% 2.00% 1.87% 2.10% Allowance for loan losses to period-end loans 1.66% 1.92% 1.56% 1.43% 2.05% Net loan charge-offs to average loans 1.52% 0.39% 0.21% 2.71% 0.04% (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. 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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