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TheStreet Open House

A Statement From The President And Chief Executive Officer Of New Century Bancorp And New Century Bank

DUNN, N.C., Sept. 22 /PRNewswire/ -- In order to clarify erroneous comments and misinformation in some recent reports in the media, New Century Bancorp (Nasdaq: NCBC) and New Century Bank President and Chief Executive Officer William L. Hedgepeth II has issued the following statement:  

Over the past few weeks it has become evident that New Century Bank, a wholly-owned subsidiary of New Century Bancorp, was the victim of apparent fraud by a former director.  This alleged fraud impacted a number of banks and many individuals in our communities.  In particular, citizens in Cumberland and Harnett Counties, local banks, and banks located in South Carolina and Tennessee were adversely affected.

The alleged fraudulent actions were neither a one-time occurrence, nor were they just recent activities.  Based upon the best available information, it appears the activities occurred over a period of several years.  It is alleged that New Century Bank, other banks, and individual investors were presented falsified financial information in the form of standard, customary financial documents.  These documents were used by the banks to make credit decisions and by individuals to make credit and investment decisions.  

This alleged fraud is not representative of a systemic problem at New Century Bank, but presents itself as a unique case.  New Century Bank is making, and in the coming months will continue to make, every effort to recover our losses by pursuing all legal remedies.  

This situation is difficult and disheartening for many people.  Please understand there are things that cannot be said for reasons of confidentiality and privacy, which is the same level of confidentiality and privacy we extend to all of our customers.

New Century remains well-capitalized and deposits held by the bank are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor.  

In closing, New Century Bank has served this area for more than a decade.  Today, as always, we appreciate the opportunity to serve our customers and shareholders, and we appreciate their support.  Thank you.    

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