DUNN, N.C., Jan. 27, 2017 (GLOBE NEWSWIRE) -- Select Bancorp, Inc. (the “Company”) (NASDAQ:SLCT), the holding company for Select Bank & Trust, today reported net income for the year ended December 31, 2016 of $6.8 million and basic and diluted earnings per share of $0.58, compared to net income of $6.6 million and basic and diluted earnings per share of $0.56 for the year ended December 31, 2015.

For the fourth quarter of 2016, the Company reported net income of $1.6 million, and basic and diluted earnings per share of $0.14, compared to net income of $1.6 million and basic and diluted earnings per share of $0.14 for the fourth quarter of 2015.

Total assets, deposits, and total loans for the Company as of December 31, 2016 were $846.6 million, $679.7 million, and $677.2 million, respectively, compared to total assets of $817.0 million, total deposits of $651.2 million, and total loans of $617.4 million as of the same date in 2015.

For the twelve months ended December 31, 2016, return on average assets was 0.81% and return on average equity was 6.61%, compared to 0.86% and 6.42%, respectively, for the twelve months ended December 31, 2015.

Non-performing loans decreased to $6.9 million at December 31, 2016 from $8.3 million at December 31, 2015. Non-performing loans equaled 1.02% of loans at December 31, 2016, decreasing from 1.41% of loans at December 31, 2015. Foreclosed real estate equaled $599,000 at December 31, 2016, compared to $1.4 million at December 31, 2015.  For the year ended December 31, 2016, net charge-offs were $126,000, or 0.08% of average loans, compared to net charge offs of $714,000, or 0.12% of average loans in 2015. At December 31, 2016, the allowance for loan losses was $8.4 million, or 1.24% of total loans, as compared to $7.0 million, or 1.14% of total loans, at December 31, 2015.

Net interest margin was 4.06% and 3.98% for the year and quarter ending December 31, 2016, as compared to 4.38% and 4.18% for the year and quarter ending December 31, 2015.

“We are pleased to report another year of record earnings,” President and CEO William L. Hedgepeth II said. “Our strategy has been growth-oriented and efficiency driven, while delivering value to our shareholders.”

Among the highlights of 2016, Hedgepeth said, “We strategically combined branches in our Greenville market and relocated our Raleigh branch. We increased loans by approximately 10% over the previous year and improved our return on equity and efficiency ratio while our asset quality remains solid.”

Mr. Hedgepeth added, "We continue to actively expand our market footprint, focusing on higher growth North Carolina markets. We recently completed our branch restructuring, and anticipate growing in the Raleigh and Wilmington areas as we move forward. Our new location in the Raleigh market, along with our recent entrance in the Leland/Wilmington market and the Morehead City area, should help with growth in new markets in addition to our proactive effort to grow our existing footprint.  We believe we have the capital necessary to focus on continued growth in these promising markets. As consolidation in our industry continues, we are attracting new customers who are not happy with a larger financial institution, and we are also attracting experienced and knowledgeable employees from these consolidations.”

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 and year ended December 31, 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 market share growth, 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 endedAt or for the twelve months ended
                         
                         
  December  September        December  December  December  December 
  31,  30,  June 30,  March 31,  31,  31,  31,  31, 
  2016  2016  2016  2016  2015  2016  2015  2014 
                         
Summary of Operations:                        
Total interest income$8,877 $8,755 $8,645 $8,432 $8,425 $34,709 $33,341 $26,104 
Total interest expense 985  909  912  927  890  3,733  3,542  4,519 
Net interest income 7,892  7,846  7,733  7,505  7,535  30,976  29,799  21,585 
Provision for (recovery of) loan losses 669  337  158  352  506  1,516  890    (194) 
Net interest income after provision 7,223  7,509  7,575  7,153  7,029  29,460  28,909  21,779 
Noninterest income 740  785  831  866  916  3,222  3,292  2,675 
Merger/Acquisition related expenses -  -  -  -  240  -  378  1,941 
Noninterest expense 5,511  5,631  5,519  5,620  5,497  22,281  21,852  18,719 
Income before income taxes 2,452  2,663  2,887  2,399  2,208  10,401  9,971  3,794 
Provision for income taxes 847  924  980  896  570  3,647  3,418  1,437 
Net Income 1,605  1,739  1,907  1,503  1,638  6,754  6,553  2,357 
Dividends on Preferred Stock -  -  -  4  20  4  77  38 
Net income available to common  shareholders$1,605 $1,739 $1,907 $1,499 $1,618 $6,750 $6,476 $2,319 
                         
Share and Per Share Data:                
Earnings per share - basic$0.14 $0.15 $0.16 $0.13 $0.14 $0.58 $0.56 $0.26 
Earnings per share - diluted$0.14 $0.15 $0.16 $0.13 $0.14 $0.58 $0.56 $0.26 
Book value per share$8.95 $8.87 $8.74 $8.56 $8.38 $8.95 $8.38 $8.59 
Tangible book value per share$8.29 $8.20 $8.05 $7.87 $7.67 $8.29 $7.67 $7.83 
Ending shares outstanding 11,645,413  11,632,192  11,619,184  11,584,011  11,583,011  11,645,413  11,583,011  11,377,980 
Weighted average shares outstanding:                
Basic 11,636,647  11,627,270  11,594,995  11,583,440  11,580,745  11,610,705  11,502,800  8,870,114 
Diluted 11,677,958  11,666,280  11,642,726  11,626,609  11,627,974  11,655,111  11,567,811  8,974,384 
                 
Selected Performance Ratios:                
Return on average assets(2) 0.76% 0.85% 0.93% 0.73% 0.82% 0.81% 0.86% 0.37%
Return on average equity(2) 6.12% 6.71% 7.62% 6.03% 6.20% 6.61% 6.42% 3.12%
Net interest margin 3.98% 4.27% 4.24% 4.14% 4.18% 4.06% 4.38% 3.88%
Efficiency ratio (1) 63.84% 65.24% 64.44% 67.14% 65.05% 65.15% 66.04% 77.16%
                 
Period End Balance Sheet Data:                
Gross Loans$677,195 $651,743 $632,187 $629,619 $617,398 $677,195 $617,398 $552,038 
Total Earning Assets 770,288  746,349  749,956  753,726  726,408  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 810  909  1,014  1,125  1,241  810  1,241  1,625 
Total Assets 846,640  844,774  826,588  830,395  817,015  846,640  817,015  766,121 
Deposits 679,661  677,121  661,274  667,654  651,161  679,661  651,161  618,902 
Short term debt 37,090  38,175  40,714  32,218  24,594  37,090  29,673  20,733 
Long term debt 23,039  22,372  18,205  28,559  33,782  23,039  28,703  25,591 
Shareholders' equity 104,273  103,191  101,531  99,210  104,702  104,273  104,702  97,685 
                 
Selected Average Balances:                
Gross Loans$663,213 $641,531 $629,333 $623,286 $601,966 $639,412 $578,759 $430,571 
Total Earning Assets 778,477  737,295  739,002  734,859  714,755  744,024  686,663  565,264 
Core Deposit Intangible 862  965  1,072  1,186  1,139  1,020  1,330  884 
Total Assets 844,162  818,284  822,036  832,738  796,414  829,315  765,284  631,905 
Deposits 679,404  653,016  658,476  672,151  631,855  665,764  607,214  523,954 
Short term debt 33,032  34,573  30,366  30,472  27,686  32,111  32,316  9,957 
Long term debt 23,089  23,189  28,289  28,389  28,489  25,739  20,147  20,494 
Shareholders' equity 104,404  103,026  100,664  100,312  104,732  102,110  102,068  74,365 
                 
Asset Quality Ratios:                
Nonperforming loans$6,881 $7,565 $8,788 $8,750 $8,280 $6,881 $8,712 $11,876 
Other real estate owned 599  548  716  1,888  1,401  599  1,401  1,585 
Allowance for loan losses 8,411  7,889  7,692  7,527  7,021  8,411  7,021  6,844 
Nonperforming loans (3) to period-end loans  1.02% 1.16% 1.39% 1.39% 1.34% 1.02% 1.41% 2.15%
Allowance for loan losses to period-end loans  1.24% 1.21% 1.22% 1.20% 1.14% 1.24% 1.14% 1.24%
Delinquency Ratio (4) 0.44% 0.16% 0.23% 0.45% 0.41% 0.44% 0.40% 0.91%
Net loan charge-offs (recoveries) to average loans 0.08% -0.01% -0.00% -0.10% 0.34% 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 past due 30-89 days and still accruing 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