Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SELECT BANCORP, INC. | v472084_8k.htm |
Exhibit 99.1
|
FOR RELEASE: |
August 1, 2017 |
Mark A. Jeffries
Executive Vice President
Chief Financial Officer
Office: 910-892-7080 and Direct: 910-897-3603
markj@SelectBank.com
SelectBank.com
SELECT BANCORP REPORTS
SECOND QUARTER 2017 EARNINGS
DUNN, NC . . . 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, 2017 | March
31, 2017 | December
31, 2016 | September
30, 2016 | June
30, 2016 | December
31, 2016 | December
31, 2015 | December
31, 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 | $ | 8.20 | $ | 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. |