Select Bancorp Reports Third Quarter 2016 Earnings

DUNN, N.C., Nov. 03, 2016 (GLOBE NEWSWIRE) -- Select Bancorp, Inc. (the "Company" (NASDAQ:SLCT), the holding company for Select Bank & Trust, reported net income for the quarter ended September 30, 2016 of $1.7 million compared to $1.4 million for the same period in 2015. Basic and diluted earnings per share for the third quarter were $0.15, compared to basic and diluted earnings per share for the third quarter 2015 of $0.12.

For the nine months ended September 30, 2016, net income for the Company was $5.1 million compared to $4.9 million for the same period in 2015. Basic and diluted earnings per share for the first nine months of 2016 were $0.44, compared to basic and diluted earnings per share for the first nine months of 2015 of $0.42.

As of September 30, 2016, the Company reported total assets of $844.8 million compared to $786.5 million at September 30, 2015, an increase of 10.4%. Total deposits were $677.1 million and total net loans were $643.9 million at the end of the third quarter 2016, compared to total deposits of $619.9 million and total net loans of $590.9 million as of the end of the third quarter 2015, increases of 9.2% and 9.0% respectively.

Return on average assets was 0.85% and return on average equity was 6.71% for the third quarter of 2016, compared to 0.69% and 5.21%, respectively, for the same quarter ended September 30, 2015.

Non-performing loans were $7.6 million and $10.9 million at September 30, 2016 and September 30, 2015, respectively. Non-performing loans equaled 1.16% of total loans at September 30, 2016, decreasing from 1.82% of total loans at September 30, 2015. Foreclosed real estate equaled $548,000 at September 30, 2016, compared to $1.0 million at September 30, 2015.  For the third quarter 2016, net recoveries were ($22,000), or (0.01%), of average loans, compared to net charge-offs of $204,000, or 0.14% of average loans in the third quarter 2015. At September 30, 2016, the allowance for loan losses was $7.9 million, or 1.21% of total loans, as compared to $7.0 million or 1.18% of total loans at September 30, 2015.

Net interest margin was 4.27% for the quarter ending September 30, 2016, as compared to 4.34% for the quarter ended September 30, 2015.

"The third quarter of 2016 was a very good quarter for Select Bancorp as net income increased 28.7% over the third quarter of 2015," President and CEO William L. Hedgepeth II said. "During the third quarter we celebrated the grand opening of our new office space in Raleigh." The Company relocated its Raleigh branch to 4505 Falls of Neuse Road on August 1 and celebrated a grand opening with the Raleigh Chamber of Commerce on August 24. The new branch is conveniently located just north of the beltline past Wake Forest Road.

Select Bank & Trust maintained the number one position in deposit market share in Dunn, our headquarters city, and the number two position in Harnett County, for the 14 th consecutive year.

"We are very proud of our performance this year," said Hedgepeth. "We continue to enhance and improve our product and service offerings as well as our operations area. We believe that is evident by our success over the last few quarters. That success has allowed us to be able to attract experienced and knowledgeable personnel to Select Bank & Trust. We believe in doing business the old-fashioned way, through 'common sense' banking, hard work and providing great service to our customers and prospects."

Select Bank & Trust has branch offices in these North Carolina communities: Dunn, Burlington, Clinton, Elizabeth City, Fayetteville, Goldsboro, Greenville, Leland, Lillington, Lumberton, Morehead City, Raleigh and Washington.

The information as of and for the quarter ended September 30, 2016, 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. Except as required by law, the Company assumes no obligation to update the forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

 

 

                                                 
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  
  September   June   March   December   September   December   December   December  
30,  30,  31,  31, 30,  31,  31,  31,
 2016 2016 2016 2015 2015 2015 2014 2013
Summary of Operations:                                    
Total interest income $   8,755     $   8,645     $   8,432     $   8,425     $   8,412     $   33,341     $   26,104     $   22,903    
Total interest expense     909         912         927         890         878         3,542         4,519         5,258    
Net interest income     7,846         7,733         7,505         7,535         7,534         29,799         21,585         17,645    
Provision for (recovery of) loan losses     337         158         352         506         393         890         (194 )         (325 )  
Net interest income after provision     7,509         7,575         7,153         7,029         7,141         28,909         21,779         17,970    
Noninterest income     785         831         866         916         572         3,292         2,675         2,629    
Merger/Acquisition related expenses     -         -         -         240         103         378         1,941         -    
Noninterest expense     5,631         5,519         5,620         5,497         5,467         21,852         18,719         15,855    
Income before income taxes     2,887         2,887         2,399         2,208         2,143         9,971         3,794         4,744    
Provision for income taxes     924         980         896         570         792         3,418         1,437         1,803    
Net Income     1,739         1,907         1,503         1,638         1,351         6,553         2,357         2,941    
Dividends on Preferred Stock     -         -         4         20         19         77         38         -    
Net income available to common  shareholders $   1,739     $   1,907     $   1,499     $   1,618     $   1,332     $   6,476     $   2,319     $   2,941    
                                                 
Share and Per Share Data:                                                
Earnings per share - basic $   0.15     $   0.16     $   0.13     $   0.14     $   0.12     $   0.56     $   0.26     $   0.43    
Earnings per share - diluted $   0.15     $   0.16     $   0.13     $   0.14     $   0.12     $   0.56     $   0.26     $   0.43    
Book value per share $   8.87     $   8.74     $   8.56     $   8.38     $   8.28     $   8.38     $   8.59     $   8.09    
Tangible book value per share $   8.20     $   8.05     $   7.87     $   7.67     $   7.58     $   7.67     $   7.83     $   8.07    
Ending shares outstanding     11,632,192         11,619,184         11,584,011         11,583,011         11,577,111         11,583,011         11,377,980         6,921,352    
Weighted average shares outstanding:                                                
Basic     11,627,270         11,594,995         11,583,440         11,580,745         11,521,043         11,502,800         8,870,114         6,918,814    
Diluted     11,666,280         11,642,726         11,626,609         11,627,974         11,582,724         11,567,811         8,974,384         6,919,760    
                                                 
Selected Performance Ratios:                                                
Return on average assets (2)     0.85 %       0.93 %       0.73 %       0.82 %       0.69 %       0.86 %       0.37 %       0.53 %  
Return on average equity (2)     6.71 %       7.62 %       6.03 %       6.20 %       5.21 %       6.42 %       3.12 %       5.28 %  
Net interest margin     4.27 %       4.24 %       4.14 %       4.18 %       4.34 %       4.38 %       3.88 %       3.46 %  
Efficiency ratio (1)     65.24 %       64.44 %       67.14 %       65.05 %       67.44 %       66.04 %       77.16 %       78.20 %  
                                                 
Period End Balance Sheet Data:                                                
Gross Loans $   651,743     $   632,187     $   629,619     $   617,398     $   597,969     $   617,398     $   552,038     $   346,500    
Total Earning Assets     746,349         749,956         753,726         726,408         711,622         726,408         698,266         483,054    
Goodwill     6,931         6,931         6,931         6,931         6,931         6,931         6,931         -    
Core Deposit Intangible     909         1,014         1,125         1,241         1,196         1,241         1,625         182    
Total Assets     844,774         826,588         830,395         817,015         786,495         817,015         766,121         525,646    
Deposits     677,121         661,274         667,654         651,161         619,935         651,161         618,902         448,458    
Short term debt     38,175         40,714         32,218         24,594         30,722         24,594         20,733         6,305    
Long term debt     22,372         18,205         28,559         33,782         28,846         33,782         25,591         12,372    
Shareholders' equity     103,191         101,531         99,210         104,702         103,545         104,702         97,685         56,004    
                                                 
Selected Average Balances:                                                
Gross Loans $   641,531     $   629,333     $   623,286     $   601,966     $   585,541     $   578,759     $   430,571     $   354,871    
Total Earning Assets     737,295         739,002         734,859         714,755         689,166         686,663         565,264         511,597    
Core Deposit Intangible     965         1,072         1,186         1,139         1,251         1,330         884         237    
Total Assets     818,284         822,036         832,738         796,414         771,913         765,284         631,905         555,354    
Deposits     653,016         658,476         672,151         631,855         607,722         607,214         523,954         470,526    
Short term debt     34,982         37,883         36,039         35,303         35,012         32,316         9,957         13,879    
Long term debt     22,780         20,772         20,822         20,872         22,631         20,147         20,494         12,372    
Shareholders' equity     103,026         100,664         100,312         104,732         102,879         102,068         74,365         55,701    
                                                 
Asset Quality Ratios:                                                
Nonperforming loans $   7,565     $   8,788     $   8,750     $   8,280     $   10,899     $   8,280     $   11,876     $   15,856    
Other real estate owned     548         716         1,888         1,401         1,007         1,401         1,585         2,008    
Allowance for loan losses     7,889         7,692         7,527         7,021         7,032         7,021         6,844         7,054    
Nonperforming loans (3) to period-end loans      1.16 %       1.39 %       1.39 %       1.34 %       1.82 %       1.34 %       2.15 %       4.58 %  
Allowance for loan losses to period-end loans      1.21 %       1.22 %       1.20 %       1.14 %       1.18 %       1.14 %       1.24 %       2.04 %  
Delinquency Ratio (4)     0.16 %       0.23 %       0.45 %       0.41 %       0.36 %       0.41 %       0.91 %       0.25 %  
Net loan charge-offs (recoveries) to average loans     -0.01 %       0.00 %       -0.10 %       0.34 %       0.14 %       0.12 %       -0.03 %       0.15 %  
   
(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.  
   
Mark A. JeffriesExecutive Vice PresidentChief Financial Officer Office: 910-892-7080 and Direct: 910-897-3603markj@SelectBank.comSelectBank.com

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