DUNN, N.C., May 03, 2016 (GLOBE NEWSWIRE) -- Select Bancorp, Inc. (the “Company”) (NASDAQ:SLCT), the holding company for Select Bank & Trust, today reported net income for the quarter ended March 31, 2016 of $1.5 million and basic and diluted earnings per share of $0.13, compared to $1.7 million and basic and diluted earnings per share of $0.15 for the quarter ended March 31, 2015.

Total assets, deposits, and total net loans for the Company as of March 31, 2016 were $830.4 million, $667.7 million, and $622.1 million.

Year to date return on average assets through March 31, 2016 is 0.73% and year to date return on average equity is 6.03%.

Non-performing loans were $8.7 million equaling 1.39% of loans at March 31, 2016. Foreclosed real estate equaled $1.9 million at March 31, 2016 and net recoveries for the quarter were ($154,000), or (0.10%), of average loans. At March 31, 2016, the allowance for loan losses was $7.5 million, or 1.20% of total loans.

Included in the results for the first quarter of 2016 was completion of the Company’s exit of the Small Business Lending Fund (SBLF) program. The Company redeemed all $7.6 million of SBLF preferred stock in January 2016 which impacted shareholders’ equity. Total shareholders’ equity stands at $99.2 million at March 31, 2016.

Commenting on the first quarter results, President and Chief Executive Officer William L. Hedgepeth II, stated, “We continue to believe that Select is well positioned for the remainder of 2016 and beyond.”

Later this year the company will relocate its Raleigh branch from the current location to a full service branch at 4505 Falls of Neuse Road, Suite 100. The new branch is conveniently located just north of the beltline off Wake Forest Road.

Hedgepeth added, "Our asset quality remains strong and this is a top priority at Select. Our loan portfolio performance trends reflect our commitment to a strong credit culture. As I have said many times: We will compete for loans based on interest rate, but we will not sacrifice credit quality. Our historical asset quality numbers reflect the prudence of this strategy. In addition to operating in markets with healthy economies, we will continue to seek prime locations for expansion and identify and hire outstanding bankers and lenders in those markets. These people, like many of our current staff, are known in their markets and are astute, highly-skilled business people with exceptionally loyal client bases.”

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 March 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 (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
							March 31,					December 31,					September 30,					June 30,					March 31,					December 31,					December 31,					December 31,
							2016					2015					2015					2015					2015					2015					2014					2013
Summary of Operations:
Total interest income							$		8,432			$		8,425			$		8,412			$		8,262			$		8,242			$		33,341			$		26,104			$		22,903
Total interest expense									927					890					878					835					939					3,542					4,519					5,258
Net interest income									7,505					7,535					7,534					7,427					7,303					29,799					21,585					17,645
Provision for (recovery of) loan losses									352					506					393					(139	)				130					890					(194	)				(325	)
Net interest income after provision									7,153					7,029					7,141					7,566					7,173					28,909					21,779					17,970
Noninterest income									866					916					572					941					863					3,292					2,675					2,629
Merger/Acquisition related expenses									-					240					103					35					-					378					1,941					-
Noninterest expense									5,620					5,497					5,467					5,518					5,370					21,852					18,719					15,855
Income before income taxes									2,399					2,208					2,143					2,954					2,666					9,971					3,794					4,744
Provision for income taxes									896					570					792					1,133					923					3,418					1,437					1,803
Net Income									1,503					1,638					1,351					1,821					1,743					6,553					2,357					2,941
Dividends on Preferred Stock									4					20					19					19					19					77					38					-
Net income available to common  shareholders							$		1,499			$		1,618			$		1,332			$		1,802			$		1,724			$		6,476			$		2,319			$		2,941
Share and Per Share Data:
Earnings per share - basic							$		0.13			$		0.14			$		0.12			$		0.16			$		0.15			$		0.56			$		0.26			$		0.43
Earnings per share - diluted							$		0.13			$		0.14			$		0.12			$		0.16			$		0.15			$		0.56			$		0.26			$		0.43
Book value per share							$		8.56			$		8.38			$		8.28			$		8.17			$		8.07			$		8.38			$		8.59			$		8.09
Tangible book value per share							$		7.21			$		7.67			$		7.58			$		7.45			$		7.33			$		7.67			$		7.83			$		8.07
Ending shares outstanding									11,584,011					11,583,011					11,577,111					11,499,398					11,458,561					11,583,011					11,377,980					6,921,352
Weighted average shares outstanding:
Basic									11,583,440					11,580,745					11,521,043					11,481,137					11,426,378					11,502,800					8,870,114					6,918,814
Diluted									11,626,609					11,627,974					11,582,724					11,548,878					11,510,147					11,567,811					8,974,384					6,919,760
Selected Performance Ratios:
Return on average assets(2)									0.73	%				0.82	%				0.69	%				0.98	%				0.94	%				0.86	%				0.37	%				0.53	%
Return on average equity(2)									6.03	%				6.20	%				5.21	%				7.22	%				7.11	%				6.42	%				3.12	%				5.28	%
Net interest margin									4.14	%				4.18	%				4.34	%				4.46	%				4.30	%				4.38	%				3.88	%				3.46	%
Efficiency ratio(1)									67.14	%				65.05	%				67.44	%				65.94	%				65.76	%				66.04	%				77.16	%				78.20	%
Period End Balance Sheet Data:
Loans, net of unearned income							$		622,092			$		617,398			$		597,969			$		573,729			$		558,923			$		617,398			$		552,038			$		346,500
Total Earning Assets									753,726					726,408					711,622					665,028					663,017					726,408					698,266					483,054
Goodwill									6,931					6,931					6,931					6,931					6,931					6,931					6,931					-
Core Deposit Intangible									1,125					1,241					1,196					1,320					1,470					1,241					1,625					182
Total Assets									830,395					817,015					786,495					742,443					748,371					817,015					766,121					525,646
Deposits									667,654					651,161					619,935					579,609					600,520					651,161					618,902					448,458
Short term debt									31,218					24,594					30,722					32,884					18,943					24,594					20,733					6,305
Long term debt									28,559					33,782					28,846					24,914					25,282					33,782					25,591					12,372
Shareholders' equity									99,210					104,702					103,545					101,552					100,076					104,702					97,685					56,004
Selected Average Balances:
Gross Loans							$		623,286			$		601,966			$		585,541			$		569,785			$		557,177			$		578,759			$		430,571			$		354,871
Total Earning Assets									734,859					714,755					689,166					669,586					672,655					686,663					565,264					511,597
Core Deposit Intangible									1,186					1,139					1,251					1,389					1,546					1,330					884					237
Total Assets									832,738					796,414					771,913					744,118					748,047					765,284					631,905					555,354
Deposits									672,151					631,855					607,722					588,328					600,601					607,214					523,954					470,526
Short term debt									36,039					35,303					35,012					28,212					19,298					32,316					9,957					13,879
Long term debt									20,822					20,872					22,631					22,895					25,444					20,147					20,494					12,372
Shareholders' equity									100,312					104,732					102,879					101,216					99,376					102,068					74,365					55,701
Asset Quality Ratios:
Nonperforming loans							$		8,750			$		8,280			$		10,899			$		11,702			$		13,473			$		8,280			$		11,876			$		15,856
Other real estate owned									1,888					1,401					1,007					1,030					1,187					1,401					1,585					2,008
Allowance for loan losses									7,527					7,021					7,032					6,842					6,919					7,021					6,844					7,054
Nonperforming loans (3) to period-end loans									1.39	%				1.41	%				1.82	%				2.04	%				2.41	%				1.34	%				2.15	%				4.58	%
Allowance for loan losses to period-end loans									1.20	%				1.14	%				1.18	%				1.19	%				1.24	%				1.14	%				1.24	%				2.04	%
Delinquency Ratio (4)									0.45	%				0.41	%				0.36	%				0.32	%				0.23	%				0.41	%				0.91	%				0.25	%
Net loan charge-offs (recoveries) to average loans									-0.10	%				0.34	%				0.14	%				-0.01	%				0.04	%				0.12	%				-0.03	%				0.15	%
	(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.

Mark A. Jeffries
Executive Vice President
Chief Financial Officer 
Office: 910-892-7080 and Direct: 910-897-3603
markj@SelectBank.com
SelectBank.com

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