DUNN, N.C., Nov. 03, 2017 (GLOBE NEWSWIRE) -- 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 $16.2 million from $906.5 million at June 30, 2017 to $922.7 million at September 30, 2017.  The majority of the increase in assets was in the Company’s loan portfolio. The loan portfolio increased by $25.4 million from $738.0 million at June 30, 2017 to $763.4 million at September 30, 2017.   

Deposits have increased $15.4 million from $739.7 million at June 30, 2017 to $775.0 million at September 30, 2017.  The majority of the increase in deposits was in time deposits. The Company’s time deposits increased by $13.2 million from $361.7 million at June 30, 2017 to $374.9 million at September 30, 2017.

Deposits have increased by $95.4 million or 14.0% through the first nine months of 2017.  Loans have increased by $86.2 million or 12.7% through the first nine months of 2017. 

“The Company’s strong third 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. Our newest branch in Wilmington opened in October of this year and we look forward to serving New Hanover County and beyond.”

The Wilmington branch will celebrate a ribbon cutting and grand opening on November 16 at 4 p.m. at the new location, 1001 Military Cutoff, Suite 100. The Bank also plans to open a Mortgage Division before the end of 2017, adding to its products and services for customers.

Additionally the Company announced during the third quarter an agreement to acquire Premara Financial, Inc. (“Premara”) and its subsidiary bank, Carolina Premier Bank, headquartered in Charlotte, N.C. This merger, which remains subject to both shareholder and regulatory approval, would put the combined company at approximately $1.1 billion in assets. The merger of Carolina Premier Bank into Select Bank will bring Select Bank’s total number of branches to 18, adding branch locations in Charlotte, N.C. as well as Blacksburg, Rock Hill and Six Mile, S.C. and a SBA Division.

Net income for the quarter ended September 30, 2017 was $1.8 million and basic and diluted earnings per share of $0.15, compared to net income of $1.3 million and basic and diluted earnings per share of $0.11 for the quarter ended June 30, 2017.

For the three months ended September 30, 2017, return on average assets was 0.77% and return on average equity was 6.44%, compared to 0.60% and 4.96%, respectively, for the three months ended June 30, 2017.

Non-performing loans remained stable with $6.2 million at both September 30, 2017 and at June 30, 2017. On a relative basis, non-performing loans equaled 0.81% of loans at September 30, 2017, decreasing from 0.83% of loans at June 30, 2017. Foreclosed real estate equaled $2.1 million at September 30, 2017, compared to $2.7 million at June 30, 2017.  For the quarter, net charge-offs were $37,000, or 0.02% of average loans, compared to net charge offs of $618,000, or 0.35% of average loans for the quarter ended June 30, 2017.

Net interest margin was 4.19% for the quarter ending September 30, 2017, as compared to 4.18% for the quarter ending June 30, 2017.

Select Bank & Trust currently has branch offices in these North Carolina communities: Dunn, Burlington, Clinton, Elizabeth City, Fayetteville, Goldsboro, Greenville, Leland, Lillington, Lumberton, Morehead City, Raleigh, Washington and Wilmington.  The information as of and for the quarter ended September 30, 2017, as presented in this release is unaudited.

Important Note Regarding Forward-Looking Statements
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, 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; our ability to obtain regulatory and shareholder approval of the merger with Premara; 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.

Additional Information About the Merger and Where to Find It
Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger of Premara with and into the Company, the Company has filed with the SEC a Registration Statement on Form S-4 that includes a Joint Proxy Statement of the Company and Premara and a Prospectus of the Company, as well as other relevant documents concerning the proposed merger.

SHAREHOLDERS OF THE COMPANY AND PREMARA ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.

The Joint Proxy Statement/Prospectus and other relevant materials, and any other documents that the Company has filed with the SEC, may be obtained free of charge at the SEC's internet site, http://www.sec.gov. Copies of the documents that the Company has filed with the SEC may also be obtained, free of charge, by directing a written request to either Select Bancorp, Inc., 700 W. Cumberland Street, Dunn, NC 28443, Attention: Mark Jeffries, Executive Vice President and Chief Financial Officer, or Premara Financial, Inc., 13024 Ballantyne Corporate Pl, Suite 100, Charlotte, NC 28277, Attention: David P. Barksdale, President and Chief Executive Officer.

The Company, Premara and their respective directors and executive officers may be deemed to be “participants” in the solicitation of proxies from the shareholders of the Company and Premara with respect to the merger. Information concerning such participants' interests in the proposed merger are set forth in the Joint Proxy Statement/Prospectus.

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
		September 30,				June 30,				March 31,				December 31,				September 30,				December 31,				December 31,				December 31,
		2017				2017				2017				2016				2016				2016				2015				2014
Summary of Operations:
Total interest income		$	10,042			$	9,469			$	9,125			$	8,877			$	8,755			$	34,709			$	33,341			$	26,104
Total interest expense			1,357				1,197				1,047				985				909				3,733				3,542				4,519
Net interest income			8,685				8,272				8,078				7,892				7,846				30,976				29,799				21,585
Provision for (recovery of) loan losses			202				1,083				(194	)			669				337				1,516				890				(194	)
Net interest income after provision			8,483				7,189				8,272				7,223				7,509				29,460				28,909				21,779
Noninterest income			778				778				730				740				785				3,222				3,292				2,675
Merger/Acquisition related expenses			278				-				-				-				-				-				378				1,941
Noninterest expense			6,161				5,980				5,805				5,511				5,631				22,281				21,852				18,719
Income before income taxes			2,822				1,987				3,197				2,452				2,663				10,401				9,971				3,794
Provision for income taxes			1,043				651				1,082				847				924				3,647				3,418				1,437
Net Income			1,779				1,336				2,115				1,605				1,739				6,754				6,553				2,357
Dividends on Preferred Stock			-				-				-				-				-				4				77				38
Net income available to common shareholders		$	1,779			$	1,336			$	2,115			$	1,605			$	1,739			$	6,750			$	6,476			$	2,319
Share and Per Share Data:
Earnings per share - basic		$	0.15			$	0.11			$	0.18			$	0.14			$	0.15			$	0.58			$	0.56			$	0.26
Earnings per share - diluted		$	0.15			$	0.11			$	0.18			$	0.14			$	0.15			$	0.58			$	0.56			$	0.26
Book value per share		$	9.42			$	9.26			$	9.14			$	8.95			$	8.87			$	8.95			$	8.38			$	8.59
Tangible book value per share		$	8.78			$	8.61			$	8.48			$	8.29			$	8.20			$	8.29			$	7.67			$	7.83
Ending shares outstanding			11,662,621				11,662,471				11,661,571				11,645,413				11,632,192				11,645,413				11,583,011				11,377,980
Weighted average shares outstanding:
Basic			11,662,580				11,662,117				11,652,612				11,636,647				11,627,270				11,610,705				11,502,800				8,870,114
Diluted			11,717,533				11,727,110				11,714,336				11,677,958				11,666,280				11,655,111				11,567,811				8,974,384
Selected Performance Ratios:
Return on average assets(2)			0.77	%			0.60	%			1.00	%			0.76	%			0.85	%			0.81	%			0.86	%			0.37	%
Return on average equity(2)			6.44	%			4.96	%			8.10	%			6.12	%			6.71	%			6.61	%			6.42	%			3.12	%
Net interest margin			4.19	%			4.18	%			4.14	%			3.98	%			4.27	%			4.06	%			4.38	%			3.88	%
Efficiency ratio (1)			65.11	%			66.08	%			65.91	%			63.84	%			65.24	%			65.15	%			66.04	%			77.16	%
Period End Balance Sheet Data:
Gross Loans		$	763,432			$	738,021			$	706,758			$	677,195			$	651,743			$	677,195			$	617,398			$	552,038
Total interest earning assets			833,766				816,008				809,164				770,288				746,349				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			547				629				716				810				909				810				1,241				1,625
Total Assets			922,749				906,524				879,624				846,640				844,774				846,640				817,015				766,121
Deposits			775,022				739,653				713,138				679,661				677,121				679,661				651,161				618,902
Short term debt			22,366				33,559				33,306				37,090				38,175				37,090				29,673				20,733
Long term debt			12,372				22,839				22,939				22,039				22,372				23,039				28,703				25,591
Shareholders' equity			109,819				108,017				106,562				104,273				103,191				104,273				104,702				97,685
Selected Average Balances:
Gross Loans		$	748,699			$	715,366			$	686,800			$	663,213			$	641,531			$	639,412			$	578,759			$	430,571
Total interest earning assets			826,595				799,240				776,496				778,477				737,295				744,024				686,663				565,264
Core Deposit Intangible			589				673				764				862				965				1,020				1,330				884
Total Assets			914,986				887,412				856,712				844,162				818,284				829,315				765,284				631,905
Deposits			754,169				719,976				689,795				679,404				653,016				665,764				607,214				523,954
Short term debt			32,703				33,413				35,048				33,032				34,573				32,111				32,316				9,957
Long term debt			15,633				22,871				22,989				23,089				23,189				25,739				20,147				20,494
Shareholders' equity			109,537				108,071				105,860				104,404				103,026				102,110				102,068				74,365
Asset Quality Ratios:
Nonperforming loans		$	6,153			$	6,159			$	7,956			$	9,430			$	7,565			$	9,430			$	8,712			$	11,876
Other real estate owned			2,093				2,702				883				599				548				599				1,401				1,585
Allowance for loan losses			8,647				8,488				8,022				8,411				7,889				8,411				7,021				6,844
Nonperforming loans (3) to period-end loans			0.81	%			0.83	%			1.13	%			1.39	%			1.16	%			1.39	%			1.41	%			2.15	%
Allowance for loan losses to period-end loans			1.13	%			1.15	%			1.14	%			1.24	%			1.21	%			1.24	%			1.14	%			1.24	%
Delinquency Ratio (4)			0.38	%			0.07	%			0.21	%			0.44	%			0.16	%			0.44	%			0.40	%			0.91	%
Net loan charge-offs (recoveries) to average loans (2)			0.02	%			0.35	%			0.12	%			0.08	%			(0.01	%)			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.

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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