×

Select Bancorp Reports Third Quarter 2015 Earnings

DUNN, N.C., Nov. 03, 2015 (GLOBE NEWSWIRE) -- Select Bancorp, Inc. (the “Company”) (NASDAQ:SLCT), the holding company for Select Bank & Trust, today reported net income of $1.4 million for the quarter ended September 30, 2015, and basic and diluted earnings per share of $0.12, compared to net income of $194,000 and basic and diluted earnings per share of $0.02 for the third quarter of 2014.

Total assets, deposits, and total loans for the Company as of September 30, 2015, were $786.5 million, $619.9 million, and $598.0 million, respectively, compared to total assets of $785.0 million, total deposits of $644.1 million, and total loans of $546.5 million as of the same date in 2014.

Commenting on third quarter 2015 results, William L. Hedgepeth II, President and CEO stated, “Our results for the third quarter were impacted by one-time expenses related to our acquisition of new branch offices in Morehead City and Leland, N.C., the closing of our Burlington and Gibsonville, N.C. offices, and the closing of our Ramsey Street Office in Fayetteville, N.C. While the costs associated with these initiatives decreased the Company’s non-interest income for the quarter by approximately $412 thousand, we believe our branch network, and our Company, will be better positioned to enhance efficiency and customer convenience going forward. Our previously announced acquisition of two new branches, one in Morehead City and the other in Leland near Wilmington, has received all required regulatory approvals and is scheduled to close during December. We are also pleased that the Company was able to report net income of approximately $1.4 million for the quarter, even after incurring the expense associated with these long-term investments in our franchise.”

For the nine months ended September 30, 2015, the Company recorded after-tax net income of $4.9 million compared to $1.8 million for the nine months ended September 30, 2014. Year to date basic and diluted earnings per share of $0.43 compared to $0.13 per share for the nine months ended September 30, 2014. Year to date return on average assets through September 30, 2015 is 0.87% (annualized) and year to date return on average equity is 6.50% (annualized), compared to 0.20% and 1.74%, respectively, for the nine months ended September 30, 2014.

Non-performing loans decreased to $10.9 million at September 30, 2015 from $11.9 million at December 31, 2014. Non-performing loans equaled 1.82% of loans at September 30, 2015, decreasing from 2.15% of loans at December 31, 2014. Foreclosed real estate equaled $1.6 million at December 31, 2014 and decreased to $1.0 million at September 30, 2015. For the quarter, recoveries were $107,000 or -0.02% of average loans, compared to a recovery of $139,000 or -0.10% of average loans in the fourth quarter of 2014. At September 30, 2015, the allowance for loan losses was $7.0 million or 1.18% of total loans, as compared to $6.8 million or 1.24% of total loans at December 31, 2014.

Mr. Hedgepeth concluded, "We are pleased with the Company’s year to date results of operations and continued asset quality and we look forward to bringing our ‘common sense banking’ to Morehead City and Leland before year end. We continue to believe that Select is well positioned for the remainder of 2015 and beyond."

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

The information as of and for the quarter ended September 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
September 30,
2015
June 30,
2015
March 31,
2015
December 31,
2014
September 30,
2014
December 31,
2014
December 31,
2013
December 31,
2012
Summary of Operations:
Total interest income$8,412 $8,262 $8,242 $7,988 $7,541 $26,104 $22,903 $25,132
Total interest expense 878 835 939 1,141 1,169 4,519 5,258 6,632
Net interest income 7,534 7,427 7,303 6,847 6,372 21,585 17,645 18,500
Provision for (recovery of) loan losses 393 (139) 130 177 105 (194) (325) (2,597)
Net interest income after provision 7,141 7,566 7,173 6,670 6,267 21,779 17,970 21,097
Noninterest income 572 941 863 836 650 2,675 2,629 3,598
Merger/Acquisition related expenses 103 35 - 217 1,325 1,941 - -
Noninterest expense 5,467 5,518 5,370 5,345 5,168 18,719 15,855 17,236
Income before income taxes 2,143 2,954 2,666 1,944 424 3,794 4,744 7,459
Provision for income taxes 792 1,133 923 666 230 1,437 1,803 2,822
Net Income 1,351 1,821 1,743 1,278 194 2,357 2,941 4,637
Dividends on Preferred Stock 19 19 19 19 19 38 - -
Net income available to common shareholders$1,332 $1,802 $1,724 $1,259 $175 $2,319 $2,941 $4,637
Share and Per Share Data:
Earnings per share - basic$0.12 $0.16 $0.15 $0.11 $0.02 $0.26 $0.43 $0.67
Earnings per share - diluted$0.12 $0.16 $0.15 $0.11 $0.02 $0.26 $0.43 $0.67
Book value per share$8.28 $8.17 $8.07 $7.91 $7.61 $8.59 $8.09 $7.84
Tangible book value per share$7.58 $7.45 $7.33 $7.16 $7.01 $7.83 $8.07 $7.79
Ending shares outstanding 11,577,111 11,499,398 11,458,561 11,377,980 11,349,368 11,377,980 6,921,352 6,913,636
Weighted average shares outstanding:
Basic 11,521,043 11,481,137 11,426,378 11,375,803 10,195,846 8,870,114 6,918,814 6,898,147
Diluted 11,582,724 11,548,878 11,510,147 11,475,865 10,312,085 8,974,384 6,919,760 6,898,377
Selected Performance Ratios:
Return on average assets(2) 0.69% 0.98% 0.94% 0.65% 0.10% 0.37% 0.53% 0.81%
Return on average equity(2) 5.21% 7.22% 7.11% 5.23% 0.82% 3.12% 5.28% 8.79%
Net interest margin 4.34% 4.46% 4.30% 3.87% 3.99% 3.88% 3.46% 3.57%
Efficiency ratio (1) 67.44% 65.94% 65.76% 69.57% 73.60% 77.16% 78.20% 78.00%
Period End Balance Sheet Data:
Loans, net of unearned income$597,969 $573,729 $558,923 $552,038 $546,475 $552,038 $346,500 $367,891
Total Earning Assets 711,622 665,028 663,017 698,266 710,005 698,266 483,054 543,674
Goodwill 6,931 6,931 6,931 6,931 6,931 6,931 - -
Core Deposit Intangible 1,196 1,320 1,470 1,625 1,786 1,625 182 298
Total Assets 786,495 742,443 748,371 766,121 784,983 766,121 525,646 585,453
Deposits 619,935 579,609 600,520 618,902 644,093 618,902 448,458 498,559
Short term debt 30,722 32,884 18,943 20,733 18,077 20,733 6,305 17,848
Long term debt 28,846 24,914 25,282 25,591 26,049 25,591 12,372 12,372
Shareholders' equity 103,545 101,552 100,076 97,685 93,995 97,685 56,004 54,179
Selected Average Balances:
Gross Loans$585,541 $569,785 $557,177 $546,626 $489,563 $430,571 $354,871 $391,648
Total Earning Assets 689,166 669,586 672,655 702,818 632,922 565,264 511,597 532,193
Core Deposit Intangible 1,251 1,389 1,546 1,714 1,496 884 237 389
Total Assets 771,913 744,118 748,047 776,839 709,480 631,905 555,354 574,616
Deposits 607,722 588,328 600,601 632,633 582,825 523,954 470,526 481,387
Short term debt 35,012 28,212 19,298 19,790 14,652 9,957 13,879 17,848
Long term debt 22,631 22,895 25,444 25,818 22,343 20,494 12,372 12,372
Shareholders' equity 102,879 101,216 99,376 97,030 84,744 74,365 55,701 52,769
Asset Quality Ratios:
Nonperforming loans$10,899 $11,702 $13,473 $11,876 $12,375 $11,876 $15,856 $12,030
Other real estate owned 1,007 1,030 1,187 1,585 1,687 1,585 2,008 2,833
Allowance for loan losses 7,032 6,842 6,919 6,844 6,529 6,844 7,054 7,897
Nonperforming loans (3) to period-end loans 1.82% 2.04% 2.41% 2.15% 2.26% 2.15% 4.58% 3.27%
Allowance for loan losses to period-end loans 1.18% 1.19% 1.24% 1.24% 1.19% 1.24% 2.04% 2.15%
Delinquency Ratio (4) 0.36% 0.32% 0.23% 0.91% 0.36% 0.91% 0.25% 0.32%
Net loan charge-offs (recoveries) to average loans 0.14% -0.01% 0.04% -0.10% 0.02% -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.

Mark A. Jeffries Executive Vice President Chief Financial Officer Office: 910-892-7080 and Direct: 910-897-3603 markj@SelectBank.com SelectBank.com

Source:Select Bancorp Inc.