Select Bancorp Reports 2013 Earnings

Company reports record earnings, announces strategic merger agreement with New Century Bancorp

$2.5 million for year ended 12/31/13, a 27% increase over 2012

Annual growth of 9% for assets, 7% for loans and 10% for deposits

Announced strategic merger agreement with New Century Bancorp on September 30, 2013

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Feb 26, 2014, 08:26 ET

GREENVILLE, N.C., Feb. 26, 2014 /PRNewswire/ -- For the year ended December 31, 2013, Select Bancorp ("Select"), the holding company for Select Bank & Trust Company, reported net income of $2.5 million, or fully diluted earnings per share of $0.99, compared to net income of $2.0 million, or fully diluted earnings per share of $0.81, for the twelve months ended December 31, 2012.

As of December 31, 2013, the Company reported assets of $280.4 million, an increase of 9% over assets of $257.4 million as of December 31, 2012. Loans were up 7% to $214.4 million over loans of $199.8 million reported December 31, 2012. Deposits grew to $225.7 million at year-end, an increase of 10% over December 31, 2012 deposits of $206.0 million.

"We are pleased to report our thirty-fifth consecutive quarterly profit and year-over-year growth in assets, loans and deposits of 9%, 7%, and 10%, respectively," said Mark A. Holmes, President and CEO of Select. "Also, the quality of our loan portfolio remains strong. Past due and non-accrual loans at December 31, 2013 stood at $383,000, or less than 0.2% of outstanding loans and our allowance for loan losses, the provision against potential loan losses, was $3.6 million or 1.7% of outstanding loans. This speaks to our credit culture, the strength of the markets we serve, and our continued adherence to a common sense approach to banking."

On September 30, 2013, the Board of Directors of Select Bancorp, Inc. approved a strategic merger agreement with New Century Bancorp. The merger is subject to regulatory and shareholder approvals. Together with New Century we look forward to creating the new Select Bank as we continue our mission: To become the Bank of choice in the communities we serve, by providing exceptional customer service, superior products and experienced bankers using a "Common Sense" approach to banking.

Select Bank & Trust is a community bank headquartered in Greenville, NC and serves Greenville/Pitt County through its headquarters office at 3600 Charles Boulevard, a second Greenville location at 3800 East Tenth Street, Elizabeth City/Northeastern North Carolina from 104 Nance Court just off Halstead Boulevard, Washington/Beaufort County from 155 North Market Street, Suite 103 in downtown Washington, Gibsonville/Eastern Triad from 220 Burlington Street in downtown Gibsonville, NC and Burlington/Alamance County from 523 South Worth Street in downtown Burlington, NC.

The information as of and for the quarter ended December 31, 2013, as presented is unaudited. This news release contains forward-looking statements. Actual results may differ materially from those projected, for various reasons, including our ability to manage growth, our limited operating history, 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.

www.selectbankandtrust.com

SOURCE Select Bancorp, Inc.