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Select Bancorp Reports Second Quarter 2017 Earnings

DUNN, N.C., Aug. 01, 2017 (GLOBE NEWSWIRE) -- Select Bancorp, Inc. (the “Company”) (NASDAQ:SLCT), the holding company for Select Bank & Trust, reported another solid quarter of growth and earnings comparing quarter over quarter results.

The Company’s total assets increased $26.9 million from $879.6 million at March 31, 2017 to $906.5 at June 30, 2017. The majority of the increase in assets was in the Company’s loan portfolio. The loan portfolio increased by $31.2 million from $706.8 million at March 31, 2017 to $738.0 million at June 30, 2017.

Deposits have increased $26.6 million from $713.1 million at March 31, 2017 to $739.7 million at June 30, 2017. The majority of the increase in deposits was in time deposits. The Company’s time deposits increased by $33.6 million from $328.1 million at March 31, 2017 to $361.7 million at June 30, 2017.

Deposits have increased by $60.0 million or 8.83% through the first six months of 2017. Loans have increased by $60.8 million or 8.98% through the first six months of 2017.

“The Company’s strong second quarter results reflect our ongoing commitment to deliver exceptional service to our customers and profitable growth to shareholders,” President and Chief Executive Officer William L. Hedgepeth II stated. “Our positive earnings equipped us to seek areas of growth and expansion for the bank and we are thrilled that we have received regulatory approval to open a branch in Wilmington, NC in the fall of this year. Our market share continues to grow in the Raleigh and the Wilmington areas, and we are pleased with the results in those areas to date.”

Net income for the quarter ended June 30, 2017 is $1.3 million and basic and diluted earnings per share of $0.11, compared to net income of $2.1 million and basic and diluted earnings per share of $0.18 for the quarter ended March 31, 2017.

For the three months ended June 30, 2017, return on average assets was 0.60% and return on average equity was 4.96%, compared to 1.00% and 8.10%, respectively, for the three months ended March 31, 2017.

Non-performing loans decreased to $6.2 million on June 30, 2017 from $8.0 million at March 31, 2017. Non-performing loans equaled 0.83% of loans at June 30, 2017, decreasing from 1.13% of loans at March 31, 2017. Foreclosed real estate equaled $2.7 million at June 30, 2017, compared to $883,000 at March 31, 2017. For the quarter, net charge-offs were $618,000, or 0.35% of average loans, compared to net charge offs of $195,000, or 0.12% of average loans for the quarter ended March 31, 2017.

Net interest margin was 4.18% for the quarter ending June 30, 2017, as compared to 4.14% for the quarter ending March 31, 2017.

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 June 30, 2017, 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 anticipated market share growth in markets such as Raleigh and Wilmington, NC, 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 (unaudited) At or for the twelve months ended
June 30, March 31, December 31, September 30, June 30, December 31, December 31, December 31,
2017 2017 20162016 2016 2016 2015 2014
Summary of Operations:
Total interest income$9,469 $9,125 $8,877 $8,755 $8,645 $34,709 $33,341 $26,104
Total interest expense 1,197 1,047 985 909 912 3,733 3,542 4,519
Net interest income 8,272 8,078 7,892 7,846 7,733 30,976 29,799 21,585
Provision for (recovery of) loan losses 1,083 (194) 669 337 158 1,516 890 (194)
Net interest income after provision 7,189 8,272 7,223 7,509 7,575 29,460 28,909 21,779
Noninterest income 778 730 740 785 831 3,222 3,292 2,675
Merger/Acquisition related expenses - - - - - - 378 1,941
Noninterest expense 5,980 5,805 5,511 5,631 5,519 22,281 21,852 18,719
Income before income taxes 1,987 3,197 2,452 2,663 2,887 10,401 9,971 3,794
Provision for income taxes 651 1,082 847 924 980 3,647 3,418 1,437
Net Income 1,336 2,115 1,605 1,739 1,907 6,754 6,553 2,357
Dividends on Preferred Stock - - - - - 4 77 38
Net income available to common shareholders$1,336 $2,115 $1,605 $1,739 $1,907 $6,750 $6,476 $2,319
Share and Per Share Data:
Earnings per share - basic$0.11 $0.18 $0.14 $0.15 $0.16 $0.58 $0.56 $0.26
Earnings per share - diluted$0.11 $0.18 $0.14 $0.15 $0.16 $0.58 $0.56 $0.26
Book value per share$9.26 $9.14 $8.95 $8.87 $8.74 $8.95 $8.38 $8.59
Tangible book value per share$8.61 $8.48 $8.29 $8.2 $8.05 $8.29 $7.67 $7.83
Ending shares outstanding 11,662,471 11,661,571 11,645,413 11,632,192 11,619,184 11,645,413 11,583,011 11,377,980
Weighted average shares outstanding:
Basic 11,662,117 11,652,612 11,636,647 11,627,270 11,594,995 11,610,705 11,502,800 8,870,114
Diluted 11,727,110 11,714,336 11,677,958 11,666,280 11,642,726 11,655,111 11,567,811 8,974,384
Selected Performance Ratios:
Return on average assets(2) 0.60% 1.00% 0.76% 0.85% 0.93% 0.81% 0.86% 0.37%
Return on average equity(2) 4.96% 8.10% 6.12% 6.71% 7.62% 6.61% 6.42% 3.12%
Net interest margin 4.18% 4.14% 3.98% 4.27% 4.24% 4.06% 4.38% 3.88%
Efficiency ratio (1) 66.08% 65.91% 63.84% 65.24% 64.44% 65.15% 66.04% 77.16%
Period End Balance Sheet Data:
Gross Loans$738,021 $706,758 $677,195 $651,743 $632,619 $677,195 $617,398 $552,038
Total interest earning assets 816,008 809,164 770,288 746,349 749,956 770,288 726,408 698,266
Goodwill 6,931 6,931 6,931 6,931 6,931 6,931 6,931 6,931
Core Deposit Intangible 629 716 810 909 1,014 810 1,241 1,625
Total Assets 906,524 879,624 846,640 844,774 826,588 846,640 817,015 766,121
Deposits 739,653 713,138 679,661 677,121 661,274 679,661 651,161 618,902
Short term debt 33,559 33,306 37,090 38,175 37,883 37,090 29,673 20,733
Long term debt 22,839 22,939 22,039 22,372 20,772 23,039 28,703 25,591
Shareholders' equity 108,017 106,562 104,273 103,191 101,531 104,273 104,702 97,685
Selected Average Balances:
Gross Loans$715,366 $686,800 $663,213 $641,531 $629,333 $639,412 $578,759 $430,571
Total interest earning assets 799,240 776,496 778,477 737,295 739,002 744,024 686,663 565,264
Core Deposit Intangible 673 764 862 965 1,072 1,020 1,330 884
Total Assets 887,412 856,712 844,162 818,284 822,036 829,315 765,284 631,905
Deposits 719,976 689,795 679,404 653,016 658,476 665,764 607,214 523,954
Short term debt 33,413 35,048 33,032 34,573 30,366 32,111 32,316 9,957
Long term debt 22,871 22,989 23,089 23,189 28,389 25,739 20,147 20,494
Shareholders' equity 108,071 105,860 104,404 103,026 100,664 102,110 102,068 74,365
Asset Quality Ratios:
Nonperforming loans$6,159 $7,956 $9,430 $7,565 $8,788 $9,430 $8,712 $11,876
Other real estate owned 2,702 883 599 548 716 599 1,401 1,585
Allowance for loan losses 8,488 8,022 8,411 7,889 7,692 8,411 7,021 6,844
Nonperforming loans (3) to period-end loans 0.83% 1.13% 1.39% 1.16% 1.39% 1.39% 1.41% 2.15%
Allowance for loan losses to period-end loans 1.15% 1.14% 1.24% 1.21% 1.22% 1.24% 1.14% 1.24%
Delinquency Ratio (4) 0.07% 0.21% 0.44% 0.16% 0.23% 0.44% 0.40% 0.91%
Net loan charge-offs (recoveries) to average loans (2) 0.35% 0.12% 0.08% (0.01)% 0.00% 0.02% 0.12% (0.03%)
(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.


Efficiency ratio is calculated as non-interest expenses divided by the sum of net interest income and non-interest income.

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.