Select Bancorp Reports Second Quarter 2015 Earnings

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.

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SOURCE Select Bancorp, Inc.