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. | ||||||||||||||||||||||||