DUNN, N.C., July 30, 2015 /PRNewswire/ -- Select Bancorp, Inc. (the "Company" NASDAQ: SLCT), the holding company for Select Bank & Trust, today reported net income of $1.8 million for the quarter ended June 30, 2015, and basic and diluted earnings per share of $0.16, compared to net income of $613,000 and basic and diluted earnings per share of $0.09 for the second quarter of 2014. The third quarter 2014 merger of New Century Bancorp, Inc., and legacy Select Bancorp, Inc., impacts comparisons of the second quarter of 2014 to the second quarter of 2015.
Total assets, deposits, and total loans for the Company as of June 30, 2015, were $742.4 million, $579.6 million, and $573.7 million, respectively, compared to total assets of $508.3 million, total deposits of $428.7 million, and total loans of $333.9 million as of the same date in 2014.
Commenting on second quarter 2015 results, William L. Hedgepeth II, President and CEO stated, "We are pleased to report another record quarter, our third consecutive quarter of net income growth since our merger. This has been a tremendous achievement for Select. During this quarter we have worked to reposition our branch structure by strategically consolidating our Burlington and Gibsonville markets and will combine our offices in the Fayetteville market. We believe these enhanced initiatives, to be completed in the third quarter, will result in notable expense reductions and increased efficiencies. Additionally, we have announced the acquisition of two branches, one in Morehead City and the other in Leland, in the Wilmington area, which we expect will be a fourth quarter event."
"Loan growth has been strong while asset quality continues to remain high which is a top priority at Select," Mr. Hedgepeth said. "Our continued focus on profit and growth are a top priority in our strategic plan. We are expanding our markets utilizing the combined resources of our July 25, 2014 merger with legacy Select Bank and our performance results to-date are improving. We are very pleased with these developments and believe the changes add value to our community bank franchise."
Non-performing loans decreased to $11.7 million at June 30, 2015 from $11.9 million at December 31, 2014. Non-performing loans equaled 2.04% of loans at June 30, 2015, decreasing from 2.15% of loans at December 31, 2014. Other real estate and repossessed assets equaled $1.6 million at December 31, 2014 and decreased to $1.0 million at June 30, 2015. For the quarter, recoveries were $16,000 or -0.01% of average loans, compared to a recovery of $139,000 or -0.10% of average loans in the fourth quarter of 2014. At June 30, 2015, the allowance for loan losses was $6.8 million, or 1.19% of total loans, slightly down from $6.8 million or 1.24% of total loans at December 31, 2014.
Mr. Hedgepeth concluded, "We are pleased with our performance this quarter and the $1.8 million in earnings. This was an active quarter for us. By expanding our franchise and continuing loan growth in our markets, we look forward to the positive contributions that we expect our repositioned financial centers will add. We believe we are well-positioned for the remainder of 2015."
Select Bank & Trust has branch offices in these North Carolina communities: Dunn, Burlington, Clinton, Elizabeth City, Fayetteville, Gibsonville, Goldsboro, Greenville, Lillington, Lumberton, Raleigh and Washington.
The information as of and for the quarter ended June 30, 2015, 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, 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.
Select Bancorp, Inc. Selected Financial Information and Other Data ($ in thousands, except per share data)
At or for the three months ended At or for the twelve months ended -------------------------------- --------------------------------- June 30, March 31, December September June 30, December December December 2015 2015 31, 30, 2014 31, 31, 31, 2014 2014 2014 2013 2012 Summary of Operations: Total interest income $8,262 $8,242 $7,988 $7,541 $5,261 $26,104 $22,903 $25,132 Total interest expense 835 939 1,141 1,169 1,098 4,519 5,258 6,632 --- --- ----- ----- ----- ----- ----- ----- Net interest income 7,427 7,303 6,847 6,372 4,163 21,585 17,645 18,500 Provision for (recovery of) loan losses (139) 130 177 105 (427) (194) (325) (2,597) ---- --- --- --- ---- ---- ---- ------ Net interest income after provision 7,566 7,173 6,670 6,267 4,590 21,779 17,970 21,097 Noninterest income 941 863 836 650 565 2,675 2,629 3,598 Merger/Acquisition related expenses 35 - 217 1,325 237 1,941 - - Noninterest expense 5,518 5,370 5,345 5,168 3,917 18,719 15,855 17,236 ----- ----- ----- ----- ----- ------ ------ ------ Income before income taxes 2,954 2,666 1,944 424 1,001 3,794 4,744 7,459 Provision for income taxes 1,133 923 666 230 388 1,437 1,803 2,822 ----- --- --- --- --- ----- ----- ----- Net Income 1,821 1,743 1,278 194 613 2,357 2,941 4,637 Dividends on Preferred Stock 19 19 19 19 - 38 - - --- --- --- --- --- --- --- --- Net income available to common $1,802 $1,724 $1,259 $175 $613 $2,319 $2,941 $4,637 shareholders Share and Per Share Data: Earnings per share - basic $0.16 $0.15 $0.11 $0.02 $0.09 $0.26 $0.43 $0.67 Earnings per share - diluted $0.16 $0.15 $0.11 $0.02 $0.09 $0.26 $0.43 $0.67 Book value per share $8.17 $8.07 $7.91 $7.61 $8.30 $8.59 $8.09 $7.84 Tangible book value per share $7.45 $7.33 $7.16 $7.01 $8.29 $7.83 $8.07 $7.79 Ending shares outstanding 11,499,398 11,458,561 11,377,980 11,349,368 6,931,168 11,377,980 6,921,352 6,913,636 Weighted average shares outstanding: Basic 11,481,137 11,426,378 11,375,803 10,195,846 6,923,640 8,870,114 6,918,814 6,898,147 Diluted 11,548,878 11,510,147 11,475,865 10,312,085 6,928,428 8,974,384 6,919,760 6,898,377 Selected Performance Ratios: Return on average assets(2) 0.98% 0.94% 0.65% 0.10% 0.48% 0.37% 0.53% 0.81% Return on average equity(2) 7.22% 7.11% 5.23% 0.82% 4.35% 3.12% 5.28% 8.79% Net interest margin 4.46% 4.30% 3.87% 3.99% 3.62% 3.88% 3.46% 3.57% Efficiency ratio (1) 65.94% 65.76% 69.57% 73.60% 82.85% 77.16% 78.20% 78.00% Period End Balance Sheet Data: Loans, net of unearned income $573,729 $558,923 $552,038 $546,475 $333,868 $552,038 $346,500 $367,891 Total Earning Assets 665,028 663,017 698,266 710,005 458,696 698,266 483,054 543,674 Goodwill 6,931 6,931 6,931 6,931 - 6,931 - - Core Deposit Intangible 1,320 1,470 1,625 1,786 124 1,625 182 298 Total Assets 742,443 748,371 766,121 784,983 508,282 766,121 525,646 585,453 Deposits 579,609 600,520 618,902 644,093 428,734 618,902 448,458 498,559 Short term debt 32,884 18,943 20,733 18,077 7,179 20,733 6,305 17,848 Long term debt 24,914 25,282 25,591 26,049 12,372 25,591 12,372 12,372 Shareholders' equity 101,552 100,076 97,685 93,995 57,551 97,685 56,004 54,179 Selected Average Balances: Gross Loans $569,785 $557,177 $546,626 $489,563 $336,286 $430,571 $354,871 $391,648 Total Earning Assets 669,586 672,655 702,818 632,922 465,976 565,264 511,597 532,193 Core Deposit Intangible 1,389 1,546 1,714 1,496 136 884 237 389 Total Assets 744,118 748,047 776,839 709,480 514,539 631,905 555,354 574,616 Deposits 588,328 600,601 632,633 582,825 435,976 523,954 470,526 481,387 Short term debt 28,212 19,298 19,790 14,652 6,748 9,957 13,879 17,848 Long term debt 22,895 25,444 25,818 22,343 12,372 20,494 12,372 12,372 Shareholders' equity 101,216 99,376 97,030 84,744 57,158 74,365 55,701 52,769 Asset Quality Ratios: Nonperforming loans $11,702 $13,473 $11,876 $12,375 $12,952 $11,876 $15,856 $12,030 Other real estate owned 1,030 1,187 1,585 1,687 1,169 1,585 2,008 2,833 Allowance for loan losses 6,842 6,919 6,844 6,529 6,447 6,844 7,054 7,897 Nonperforming loans (3) to period-end loans 2.04% 2.41% 2.15% 2.26% 3.88% 2.15% 4.58% 3.27% Allowance for loan losses to period-end 1.19% 1.24% 1.24% 1.19% 1.93% 1.24% 2.04% 2.15% loans Delinquency Ratio (4) 0.32% 0.23% 0.91% 0.36% 0.15% 0.91% 0.25% 0.32% Net loan charge-offs to average loans -0.01% 0.04% -0.10% 0.02% 0.18% -0.03% 0.15% -0.12%
(1) Efficiency ratio is calculated as non-interest expenses divided by the sum of net interest income and non-interest income. (2) Annualized. (3) Nonperforming loans consist of non-accrual loans and restructured loans. (4) Delinquency Ratio includes loans 30-89 days past due and excludes non-accrual loans.
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SOURCE Select Bancorp, Inc.