Market Overview

Select Bancorp Reports First Quarter 2020 Earnings

Share:

DUNN, N.C., April 29, 2020 (GLOBE NEWSWIRE) -- Select Bancorp, Inc. (NASDAQ:SLCT) (the "Company"), the holding company for Select Bank & Trust Company, today reported net income for the quarter ended March 31, 2020 of $1.1 million with basic and diluted earnings per share of $0.06, compared to net income of $3.3 million with basic and diluted earnings per share of $0.17 for the comparative quarter ended March 31, 2019. The decrease in net income in the first quarter of 2020 compared to 2019 was primarily attributable to $389,000 of expenses associated with new branches in Cornelius, North Carolina (the Charlotte area), Holly Springs, North Carolina (the Raleigh area) and Virginia Beach, Virginia and an increase of the provision for credit losses of $2.3 million due to unprecedented changes in certain economic indicators as a result of the COVID-19 pandemic. 

Total assets, deposits, and gross loans for the Company as of March 31, 2020 were $1.3 billion, $982.7 million, and $1.0 billion, respectively, compared to total assets of $1.2 billion, total deposits of $951.0 million, and total loans of $991.8 million as of the same date in 2019.  

Comments of the Chief Executive Officer and Other Matters

William Hedgepeth, President and Chief Executive Officer stated, "Overall, we were pleased with our first-quarter earnings and the continued franchise growth from the implementation of our strategic initiatives.  However, the end of the quarter was punctuated by arrival of the COVID-19 pandemic.  As the implications of this event rapidly evolved and its significance was understood, we knew the nation was in uncharted territory.  We are extremely concerned for those who are suffering, for the well-being of our health care workers, and for our customers, friends, neighbors and employees as they continue to provide services to their community.  Our goal over the past few weeks, and into the future, is to continue providing crucial financial services in a safe and timely manner, which will hopefully help to contribute to a faster recovery in the markets we serve.  We have taken prudent steps to secure our financial position so that we will have the capacity and ability to meet the needs of our customers and communities as the impact of COVID-19 continues to affect them and our economy more generally." 

Hedgepeth continued, "We are participating in the Paycheck Protection Program, or PPP, providing loans to assist our customers with funds to work through this pandemic.  Within the last couple of weeks, we have assisted more than 990 customers with over $88 million dollars in PPP loans.  These loans, which are eligible for forgiveness, provide funds to be used by small businesses to continue paying their employees, rent, mortgages and utilities, all of which assist small businesses with keeping employees on the payroll.  This program is designed to enhance the economic infrastructure of the communities we serve by providing the resources needed for small businesses to reopen in the near future.  We have provided additional staff resources, together with an "all hands on deck" philosophy to facilitate as many customer requests as possible by assisting them in applying for and participating in this stimulus program in a very limited period of time. We also continue to work with our customers in other ways, such as offering loan payment deferral options in certain circumstances." 

"We are dealing with unprecedented times and it is paramount that we remain flexible and accommodate the needs of the communities in which we operate.  All of our branches are open for drive-thru activity while keeping the health and safety of our customers and employees as our primary objective.  We will strive to provide as many solutions as possible, in a timely manner that strengthen the business partnerships we have developed as we all proceed through the recovery process." 

Other matters of interest to shareholders are:

  • The Company repurchased 275,366 shares of Company common stock during the first quarter of 2020 under the repurchase plan authorized by the Board of Directors in 2019. The Company may repurchase up to an additional 235,140 shares of its common stock under the repurchase plan.
  • Loan growth was over $9.5 million in the first quarter of 2020.
  • With the closing of the acquisition of three branches on April 17, 2020 in western North Carolina, our total assets are in excess of $1.5 billion.

 Net Interest Income and Net Interest Margin

Net interest income was $11.5 million for the first quarter of 2020 and 2019. On a comparative quarter basis, the Company's total interest income was positively affected by increased loan balances due to growth which was offset by a decreasing yield, a decrease in securities balances and a lower yield plus the reduction in other earning assets at a lower yield. Average total interest-earning assets were $1.1 billion in the first quarter of 2020 and 2019.  The yield on those assets decreased 4 basis points, from 5.02% in the first quarter of 2019 to 4.98% for the same period in 2020.  This was primarily due to lower rates on recently originated loans and a reduction of accretion from acquired loans on a comparative quarter basis.

The Company's average interest-bearing liabilities increased by $16.8 million, to $788.4 million for the quarter ended March 31, 2020, from $771.6 million for the first quarter of 2019.  Low-cost savings, NOW and money market deposits increased $19.3 million while the cost of transactional deposits decreased from 0.48% to 0.43%, or 5 basis points year over year. The cost of total deposits increased from 0.90% in the first quarter of 2019 to 0.94% in the first quarter of 2020 due to the increase in the cost of time deposits.  During the first quarter of 2020, the Company's net interest margin was 4.03% and net interest spread was 3.59%. In the first quarter of 2019, net interest margin was 4.09% and net interest spread was 3.65%.  

Provision for Loan Losses and Asset Quality

During the first quarter of 2020, the Company recorded a provision for loan losses of $2.3 million, based primarily on loan growth and adjustments to qualitative allowance factors and preliminary estimates related to the economic impact of the COVID-19 pandemic. There was a 0.15% allowance applied to all loan pools for factors related to the economic impact of COVID-19. Additionally, due to the COVID-19 pandemic, we increased our reserve an additional five basis points (.05%) in response to qualitative factors for gross domestic product, peer group delinquency, and North Carolina unemployment in all loan pools.  As a result, $1.4 million of the $2.3 million provision was attributable to the impact COVID -19 on the reserve's increase.  We granted payment extensions on approximately 285 commercial and consumer loans related to the impact of COVID – 19.  On a comparative quarter basis, the Company recorded a provision for loan losses of $112,000, based primarily on loan growth and adjustments to qualitative loan factors related to trends in the loan portfolio for the first quarter of 2019. In the first quarter of 2020, the Company recorded net charge-offs of $12,000 compared to net charge-offs of $271,000 in the first quarter of 2019.  These charge-offs resulted in a net charge-off rate of 0.00% of average loans for the current quarter, compared to a net charge-off rate of 0.11% in the first quarter of 2019.

Non-interest Income

Non-interest income for the quarter ended March 31, 2020 was $1.4 million, an increase of $247,000 from $1.2 million in the first quarter of 2019. Service charges on deposit accounts increased $72,000, to $338,000 for the quarter ended March 31, 2020, from $266,000 for the first quarter in 2019. Other non-deposit fees and income increased $39,000 from the first quarter of 2019 to the first quarter of 2020. Fees of $185,000 from presold mortgages and $108,000 from SBA loans totaled $293,000 in the first quarter of 2020, which represented an increase of $136,000 from the $157,000 of fees in the first quarter of 2019. The Company did not sell any investment securities in the first quarter of 2020 or 2019.

Non-interest Expense

Non-interest expenses increased by $943,000 to $9.2 million for the quarter ended March 31, 2020, from $8.3 million for the same period in 2019.  In general, most categories of non-interest expenses increased, primarily due to an increase in the number of branches.  The following are highlights of the significant categories of non-interest expenses during the first quarter of 2020 versus the same period in 2019:

  • Personnel expenses increased $661,000 to $5.6 million, due to additional personnel and cost-of-living increases. 
  • Occupancy expenses increased $204,000, primarily due to additional branches, repairs and maintenance and increased rent expense due to normal rent escalation.
  • Integration-related expenses increased $39,000.
  • CDI expense decreased $40,000 due to amortization.
  • Information systems expense increased by $249,000 due to increased expenses related to a new mobile banking platform and security cost for the core processing system.
  • Professional fees decreased by $10,000 to $372,000.
  • Deposit insurance expenses decreased by $117,000 due to increased premium credit earned.

Income Taxes

The Company's effective tax rate was 20.2% and 21.0% for the quarters ended March 31, 2020 and 2019, respectively. 

Balance Sheet

Total assets at March 31, 2020 were $1.3 billion, an increase of $21.4 million from a year earlier.  Gross loans at March 31, 2020 were $1.0 billion, up $47.7 million or 4.8% from a year earlier, and total deposits were $982.7 million, an increase of $31.7 million or 3.3% from a year earlier.

Retail deposits (excluding brokered deposits and internet time deposits) grew at a rate of 6.1% or $34.3 million as of March 31, 2020 compared to the same period in 2019. Wholesale deposits decreased from $26.3 million at March 31, 2019 to $19.5 million at March 31, 2020 as we continue emphasizing core deposit growth to replace wholesale deposits.

Completion of Acquisition of Three Branches in Western North Carolina

As previously announced, on April 17, 2020, the Company's subsidiary, Select Bank & Trust completed its purchase of three branches from Entegra Bank, a division of First Citizens Bank.

The branches are located at 473 Carolina Way, Highlands, NC; 498 East Main Street, Sylva, NC; and 30 Hyatt Road, Franklin, NC. As part of the purchase, Select Bank & Trust Company assumed approximately $185 million in deposits and purchased approximately $107 million in loans. 

About Select Bank & Trust Company

Select Bank & Trust has 22 full-service offices in these North Carolina communities: Dunn, Burlington, Charlotte, Clinton, Cornelius (Charlotte area), Elizabeth City, Fayetteville, Franklin, Goldsboro, Greenville, Highlands, Holly Springs (Raleigh area), Leland, Lillington, Lumberton, Morehead City, Raleigh, Sylva, and Wilmington, North Carolina; in the following South Carolina communities: Blacksburg and Rock Hill; and in Virginia Beach, Virginia.

About Select Bancorp, Inc.

Select Bancorp, Inc. is a bank holding company headquartered in Dunn, North Carolina. The Company primarily conducts operations through its wholly owned subsidiary, Select Bank & Trust Company, a North Carolina-chartered commercial bank that provides a full suite of banking services through its offices in North Carolina, South Carolina, and Virginia. The Company's common stock is listed on the Nasdaq Global Market under the symbol "SLCT".

Non-GAAP Financial Measures

Certain financial measures we use to evaluate our performance and discuss in this release and the accompanying tables are identified as being "non-GAAP financial measures." In accordance with the rules of the Securities and Exchange Commission, or the SEC, we classify a financial measure as being a non-GAAP (generally accepted accounting principles) financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of operations, balance sheet or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non-GAAP financial measures or both.

The non-GAAP financial measures that we discuss in this release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this release may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar, or with names similar, to the non-GAAP financial measures we have discussed in this release when comparing such non-GAAP financial measures.

Tangible book value per share is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as shareholders' equity less goodwill and core deposit intangibles; and (b) tangible book value per share as tangible common equity (as described in clause (a)) divided by shares of common stock outstanding. For tangible book value per share, the most directly comparable financial measure calculated in accordance with GAAP is our book value per share. A reconciliation of tangible book value per share to book value per share is included in the tables that accompany this release. 

We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.

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, revenue, and 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: the ongoing COVID-19 pandemic and measures intended to prevent its spread, which include wide disruptions to business activity that may impact the financial strength of our borrowers; our ability to manage growth or achieve it at all; substantial changes in financial markets; our ability to obtain the synergies and expense efficiencies anticipated from our acquisition activity and branch divestures and consolidations; regulatory changes; changes in interest rates, including the impact of such changes on our net interest margin; loss of deposits and loan demand to other savings and financial institutions; adverse economic conditions that impact our borrowers' ability to pay their debts when due, including the rapid rise in unemployment associated with the COVID-19 pandemic; 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.

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, INC.
CONSOLIDATED BALANCE SHEETS
                   
  March 31, 2020   December 31, 2019   September 30, 2019   June 30, 2019   March 31, 2019
  (Unaudited)   (Audited)   (Unaudited)   (Unaudited)   (Unaudited)
      (Dollars in thousands)
ASSETS
                 
                   
Cash and due from banks
$ 20,030     $ 19,110     $ 20,052     $ 20,397     $ 15,586  
Interest-earning deposits in other banks
  35,544       50,920       53,093       100,584       44,894  
Certificates of deposit
  -       -       500       500       1,000  
Federal funds sold
  11,673       9,047       10,728       21,961       9,809  
Investment securities available for sale, at Fair Value
  64,738       72,367       76,941       83,102       86,727  
Loans held for sale
  1,606       928       1,714       826       354  
Loans
  1,039,514       1,029,975       1,014,928       997,062       991,801  
Allowance for loan losses
  (10,586 )     (8,324 )     (8,056 )     (8,303 )     (8,510 )
NET LOANS   1,028,928       1,021,651       1,006,872       988,759       983,291  
                   
Accrued interest receivable
  3,839       4,189       3,902       4,028       4,120  
Stock in Federal Home Loan Bank of Atlanta, at cost
  3,059       3,045       3,045       3,045       3,342  
Other non-marketable securities
  718       719       719       718       738  
Foreclosed real estate
  3,737       3,533       1,442       1,468       1,046  
Premises and equipment, net
  17,868       17,791       18,150       18,274       17,715  
Right of use lease asset
  8,414       8,596       8,776       8,953       8,750  
Bank owned life insurance
  29,950       29,789       29,621       29,451       29,282  
Goodwill
  24,579       24,579       24,579       24,579       24,579  
Core deposit intangible ("CDI")
  1,431       1,610       1,803       2,011       1,866  
Assets held for sale
  -       -       -       -       668  
Other assets
  7,380       7,202       7,697       8,141       8,310  
TOTAL ASSETS $ 1,263,494     $ 1,275,076     $ 1,269,634     $ 1,316,797     $ 1,242,077  
                   
LIABILITIES AND SHAREHOLDERS' EQUITY
                 
Deposits:
                 
Demand
$ 250,031     $ 240,305     $ 243,889     $ 252,666     $ 240,262  
Savings
  41,815       43,128       43,355       46,037       48,080  
Money market and NOW
  306,051       280,145       283,414       292,629       262,169  
Time
  384,754       429,260       417,015       438,918       400,455  
TOTAL DEPOSITS   982,651       992,838       987,673       1,030,250       950,966  
                   
Short-Term Debt
  20,000       -       -       -       7,000  
Long-Term Debt
  37,372       57,372       57,372       57,372       57,372  
Lease Liability
  8,669       8,813       8,951       9,086       8,842  
Accrued interest payable
  536       578       596       637       519  
Accrued expenses and other liabilities
  2,181       2,700       2,993       2,607       3,927  
TOTAL LIABILITIES   1,051,409       1,062,301       1,057,585       1,099,952       1,028,626  
                   
Shareholders' Equity
                 
Common stock
  18,056       18,330       18,513       19,262       19,326  
Additional paid-in-capital
  138,788       140,870       142,878       150,275       150,877  
Retained Earnings
  53,779       52,675       49,634       46,395       42,947  
Common stock issued to deferred compensation trust
  (2,791 )     (2,815 )     (2,730 )     (2,652 )     (2,652 )
Directors' Deferred Compensation Plan Rabbi Trust
  2,791       2,815       2,730       2,652       2,652  
Accumulated other comprehensive income
  1,462       900       1,024       913       301  
TOTAL SHAREHOLDERS' EQUITY   212,085       212,775       212,049       216,845       213,451  
                   
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 1,263,494     $ 1,275,076     $ 1,269,634     $ 1,316,797     $ 1,242,077  
                   


SELECT BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                           
  For the Three Months Ended   For the Twelve Months Ended
  March 31,
2020
  December 31,
2019
  September 30,
2019
  June 30,
2019
  March 31,
2019
  December 31,
2019
  December 31,
2018
INTEREST INCOME                          
Loans $ 13,589     $ 14,124   $ 13,924     $ 13,515     $ 13,042   $ 54,605   $ 53,796  
Federal funds sold and interest-earning                          
deposits in other banks   168       258     581       456       543     1,838     1,618  
Investments   421       434     503       601       465     2,003     1,421  
TOTAL INTEREST INCOME   14,178       14,816     15,008       14,572       14,050     58,446     56,835  
                           
INTEREST EXPENSE                          
Money market, NOW and savings deposits   348       420     433       407       356     1,616     1,339  
Time deposits   1,931       2,075     2,248       1,985       1,753     8,061     6,293  
Short-term debt   87       6     4       26       26     62     328  
Long-term debt   352       447     455       457       458     1,817     1,490  
TOTAL INTEREST EXPENSE   2,718       2,948     3,140       2,875       2,593     11,556     9,450  
                           
NET INTEREST INCOME   11,460       11,868     11,868       11,697       11,457     46,890     47,385  
                           
PROVISION FOR (RECOVERY OF) LOAN LOSSES   2,273       302     231       (207 )     112     438     (156 )
                           
NET INTEREST INCOME AFTER                          
PROVISION FOR LOAN LOSSES   9,187       11,566     11,637       11,904       11,345     46,452     47,541  
                           
NON-INTEREST INCOME                          
Fees on the sale of mortgages   293       148     218       230       157     753     497  
Gain on securities   0       0     48       0       0     48     0  
Service charges on deposit accounts   338       303     308       284       266     1,161     1,124  
Other fees and income   813       995     874       814       774     3,457     3,080  
TOTAL NON-INTEREST INCOME   1,444       1,446     1,448       1,328       1,197     5,419     4,701  
                           
NON-INTEREST EXPENSE                          
Personnel   5,632       5,152     5,124       5,031       4,971     20,278     18,304  
Occupancy and equipment   931       973     1,073       922       727     3,695     3,666  
Deposit insurance   (12 )     19     (30 )     90       105     184     628  
Professional Fees   372       503     518       483       382     1,886     1,394  
CDI amortization   179       193     208       205       219     825     1,016  
Merger/acquisition related expenses   39       171     128       107       0     406     1,826  
Information systems   1,038       974     852       877       789     3,492     3,372  
Foreclosed-related expenses   5       109     (9 )     10       30     140     115  
Other   1,063       1,000     1,067       1,086       1,081     4,234     4,229  
TOTAL NON-INTEREST EXPENSE   9,247       9,094     8,931       8,811       8,304     35,140     34,550  
                           
INCOME BEFORE INCOME TAXES   1,384       3,918     4,154       4,421       4,238     16,731     17,692  
                           
INCOME TAXES   280       877     915       973       931     3,696     3,910  
NET INCOME $ 1,104     $ 3,041   $ 3,239     $ 3,448     $ 3,307   $ 13,035   $ 13,782  
NET INCOME PER COMMON SHARE OUTSTANDING                          
Basic $ 0.06     $ 0.17   $ 0.17     $ 0.18     $ 0.17   $ 0.69   $ 0.87  
Diluted $ 0.06     $ 0.16   $ 0.17     $ 0.18     $ 0.17   $ 0.68   $ 0.87  
                           
WEIGHTED AVERAGE COMMON                          
Basic Outstanding Shares   18,255,351       18,414,393     19,028,572       19,318,358       19,315,686     19,016,808     15,812,585  
Diluted Outstanding Shares   18,287,064       18,460,118     19,073,235       19,359,492       19,365,354     19,063,237     15,877,633  


Select Bancorp, Inc.
Asset quality
 
  For Periods Ended
  March 31,
2020
  December 31,
2019
  September 30,
2019
  June 30,
2019
  March 31,
2019
  December 31,
2019
  December 31,
2018
                           
Non-accrual loans   7,201       5,941       9,083       10,521       6,337       5,941       7,257  
Accruing TDRs   5,619       6,207       6,477       6,061       5,246       6,207       4,378  
Total non-performing loans   12,820       12,148       15,560       16,582       11,583       12,148       11,635  
Foreclosed real estate   3,737       3,533       1,442       1,468       1,046       3,533       1,088  
Total non-performing assets   16,557       15,681       17,002       18,050       12,629       15,681       12,723  
                           
Accruing loans past due 90 days or more   1,182       1,231       2,296       2,447       3,146       1,231       3,167  
Allowance for loan losses   10,586       8,324       8,056       8,303       8,510       8,324       8,669  
                           
Non-performing loans to period ending loans   1.23%       1.18%       1.53%       1.66%       1.17%       1.18%       1.18%  
Non-performing loans & accruing loans past                          
due 90 days or more to period ending loans   1.35%       1.30%       1.76%       1.91%       1.49%       1.30%       1.50%  
Allowance for loans to period end loans   1.02%       0.81%       0.79%       0.83%       0.86%       0.81%       0.88%  
Allowance for loans to non-performing loans   83%       69%       52%       50%       73%       69%       75%  
Allowance for loans to non-performing Assets   64%       53%       47%       46%       67%       53%       68%  
Allowance for loans to non-performing Assets                          
and accruing loans past due 90 days or more   60%       49%       42%       41%       54%       49%       55%  
Non-performing assets to total assets   1.31%       1.23%       1.34%       1.37%       1.02%       1.23%       1.01%  
Non-performing assets to accruing loans                          
past due 90 days or more to total assets   1.40%       1.33%       1.52%       1.56%       1.27%       1.33%       1.26%  
                           
                           
SELECT BANCORP, INC.                          
Reconciliation of GAAP to Non-GAAP Measures                          
($ in thousands, except per share data, unaudited)                          
                           
  For the Three Months Ended   For the Twelve Months Ended
  March 31,
2020
  December 31,
2019
  September 30,
2019
  June 30,
2019
  March 31,
2019
  December 31,
2019
  December 31,
2018
Net interest margin:                          
Net Interest Margin-tax equivalent (1)   11,489       11,901       11,903       11,740       11,496       47,037       47,535  
Purchased loan accretion and early payoff charges   (105 )     (226 )     (210 )     (268 )     (200 )     (904 )     (3,051 )
Net Interest Margin(2) (Non-GAAP)   11,384       11,675       11,693       11,472       11,296       46,133       44,484  
                           
Loans receivable interest income:                          
Loans receivable interest income   13,589       14,124       13,924       13,515       13,042       54,645       53,822  
Purchased loan accretion and early payoff charges   (105 )     (226 )     (210 )     (268 )     (200 )     (904 )     (3,051 )
Loans receivable interest income (Non-GAAP)   13,484       13,898       13,714       13,247       12,842       53,741       50,771  
                           
Acquired and non-acquired loans:                          
Acquired loans recievable   122,363       129,595       141,765       152,090       173,771       129,595       186,243  
Non-acquired loans recievable   917,151       900,380       873,163       844,972       818,030       900,380       799,797  
Total gross loans recievable   1,039,514       1,029,975       1,014,928       997,062       991,801       1,029,975       986,040  
% Acquired   11.8%       12.6%       14.0%       15.3%       17.5%       12.6%       18.9%  
                           
Non-acquired loans   917,151       900,380       873,163       844,972       818,030       900,380       799,797  
Allowance for loan losses   10,586       8,324       8,056       8,303       8,510       8,324       8,669  
Allowance for loan losses to non-acquired loans (Non-GAAP)   1.15%       0.92%       0.92%       0.98%       1.04%       0.92%       1.08%  
                           
Total gross loan receivable   1,039,514       1,029,975       1,014,928       997,062       991,801       1,029,975       986,040  
Allowance for loan losses   10,586       8,324       8,056       8,303       8,510       8,324       8,669  
Allowance for loan losses to total gross loans receivable   1.02%       0.81%       0.79%       0.83%       0.86%       0.81%       0.88%  
                           
                           
                           
  For Periods Ended
  March 31,
2019
  December 31,
2019
  September 30,
2019
  June 30,
2019
  March 31,
2019
  December 31,
2019
  December 31,
2018
Tangible common equity                          
Total shareholders' equity $ 212,085     $ 212,775     $ 212,049     $ 216,845     $ 213,451     $ 212,775     $ 209,611  
Adjustment:                          
Goodwill   24,579       24,579       24,579       24,579       24,579       24,579       24,579  
Core deposit intangibles   1,431       1,610       1,803       2,011       1,866       1,610       2,085  
Tangible common equity $ 186,075     $ 186,586     $ 185,667     $ 190,255     $ 187,006     $ 186,586     $ 182,947  
Common shares outstanding(3)   18,055,692       18,330,058       18,513,078       19,261,989       19,326,485       18,330,058       19,311,505  
Book value per common share(4) $ 11.75     $ 11.61     $ 11.45     $ 11.26     $ 11.04     $ 11.61     $ 10.85  
Tangible book value per common share(5) $ 10.31     $ 10.18     $ 10.03     $ 9.88     $ 9.68     $ 10.18     $ 9.47  
                           
(1) Net interest margin-tax equivalent reflects tax-exempt income on a tax-equivalent basis.
(2) Net interest margin-core and yield on loans - core excludes the impact of purchase accounting accretion, loan payoff charges and related deferred fees recognized related to early loan repayments.
(3) Excludes the dilutive effect of common stock issuable upon exercise of stock options.
(4) We calculate book value per common share as shareholders' equity less preferred stock at the end of the relevant period divided by the outstanding number of shares of our common stock at the end of the relevant period.
(5) We calculate the tangible book value per common share as total shareholders' equity less goodwill, preferred stock and core deposit intangibles, divided by the number of outstanding shares of our common stock at the end of the relevant period.


Select Bancorp, Inc.                              
Selected Financial Information and Other Data                              
($ in thousands, except share and per share data)                            
                               
  For the Quarter Ended   For the Year Ended
  March 31,   December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
   2020  2019  2019    2019    2019  2019  2018  2017
Summary of Operations:                          
Total interest income $ 14,178     $ 14,816     $ 15,008     $ 14,572     $ 14,050     $ 58,446     $ 56,835     $ 39,617  
Total interest expense   2,718       2,948       3,140       2,875       2,593       11,556       9,450       5,106  
Net interest income   11,460       11,868       11,868       11,697       11,457       46,890       47,385       34,511  
Provision for loan losses   2,273       302       231       (207 )     112       438       (156 )     1,367  
Net interest income after provision   9,187       11,566       11,637       11,904       11,345       46,452       47,541       33,144  
Noninterest income   1,444       1,446       1,448       1,328       1,197       5,419       4,701       3,072  
Merger/acquisition related expenses   39       171       128       107       -       406       1,826       2,166  
Noninterest expense   9,208       8,923       8,803       8,704       8,304       34,734       32,724       25,153  
Income before income taxes   1,384       3,918       4,154       4,421       4,238       16,731       17,692       8,897  
Provision for income taxes   280       877       915       973       931       3,696       3,910       5,712  
Net Income   1,104       3,041       3,239       3,448       3,307       13,035       13,782       3,185  
Dividends on Preferred Stock   -       -       -       -       -       -       -       -  
Net income available to common  shareholders $ 1,104     $ 3,041     $ 3,239     $ 3,448     $ 3,307     $ 13,035     $ 13,782     $ 3,185  
                               
Share and Per Share Data:                              
Earnings per share - basic $ 0.06     $ 0.17     $ 0.17     $ 0.18     $ 0.17     $ 0.69     $ 0.87     $ 0.27  
Earnings per share - diluted $ 0.06     $ 0.16     $ 0.17     $ 0.18     $ 0.17     $ 0.68     $ 0.87     $ 0.27  
Book value per share $ 11.75     $ 11.61     $ 11.45     $ 11.26     $ 11.04     $ 11.61     $ 10.85     $ 9.72  
Tangible book value per share(1) $ 10.31     $ 10.18     $ 10.03     $ 9.88     $ 9.68     $ 10.18     $ 9.47     $ 7.72  
Ending shares outstanding   18,055,692       18,330,058       18,513,078       19,261,989       19,326,485       18,330,058       19,311,505       14,009,137  
Weighted average shares outstanding:                              
Basic   18,255,351       18,414,393       19,028,572       19,318,358       19,315,686       19,016,808       15,812,585       11,763,050  
Diluted   18,287,064       18,460,118       19,073,235       19,359,492       19,365,354       19,063,237       15,877,633       11,826,977  
                               
Selected Performance Ratios:                              
Return on average assets(2)   0.35%       0.95%       0.99%       1.10%       1.08%       1.03%       1.12%       0.35%  
Return on average equity(2)   2.07%       5.67%       5.93%       6.41%       6.32%       6.08%       8.51%       2.93%  
Net interest margin   4.03%       4.05%       3.94%       4.06%       4.09%       4.04%       4.19%       4.09%  
Efficiency ratio (3)   71.36%       67.02%       66.11%       66.83%       65.62%       66.40%       62.83%       66.93%  
                               
Period End Balance Sheet Data:                              
Gross loans $ 1,039,514     $ 1,029,975     $ 1,014,928     $ 997,062     $ 991,801     $ 1,029,975     $ 986,040     $ 982,626  
Total interest-earning assets   1,137,010       1,167,857       1,153,612       1,148,417       1,103,691       1,167,857       1,119,344       1,063,322  
Goodwill   24,579       24,579       24,579       24,579       24,579       24,579       24,579       24,904  
Core deposit intangible   1,431       1,610       1,803       2,011       1,866       1,610       2,085       3,101  
Total assets   1,263,494       1,275,076       1,269,634       1,316,797       1,242,077       1,275,076       1,258,525       1,194,135  
Deposits   982,651       992,838       987,673       1,030,250       950,966       992,838       980,427       995,044  
Short-term debt   20,000       -       -       -       7,000       -       7,000       28,279  
Long-term debt   37,372       57,372       57,372       57,372       57,372       57,372       57,372       19,372  
Shareholders' equity   212,085       212,775       212,049       216,845       213,451       212,775       209,611       136,115  
                               
Selected Average Balances:                              
Gross Loans $ 1,020,630     $ 1,017,750     $ 1,013,331     $ 982,876     $ 985,059     $ 1,004,051     $ 987,634     $ 732,089  
Total interest-earning assets   1,147,631       1,166,758       1,197,266       1,160,387       1,086,958       1,164,149       1,119,344       813,773  
Core Deposit Intangible   1,507       1,680       1,878       1,741       1,951       1,812       2,547       640  
Total Assets   1,255,943       1,272,475       1,300,137       1,261,972       1,238,847       1,268,728       1,228,576       898,943  
Deposits   972,162       989,721       1,013,504       970,011       949,771       981,132       989,838       738,310  
Short-term debt   12,747       -       -       6,824       7,000       3,414       21,393       34,523  
Long-term debt   44,625       57,372       57,372       57,372       57,372       57,372       49,357       14,239  
Shareholders' equity   214,502       212,849       216,556       215,722       212,130       214,324       161,953       108,709  
                               
Asset Quality Ratios:                              
Nonperforming loans (4) $ 12,820     $ 12,148     $ 15,560     $ 16,582     $ 11,583     $ 12,148     $ 11,635     $ 6,978  
Other real estate owned   3,737       3,533       1,442       1,468       1,046       3,533       1,088       1,258  
Allowance for loan losses   10,586       8,324       8,056       8,303       8,510       8,324       8,669       8,835  
Nonperforming loans (4) to period-end loans   1.23%       1.18%       1.53%       1.66%       1.17%       1.18%       1.18%       0.71%  
Allowance for loan losses to period-end loans   1.02%       0.81%       0.79%       0.83%       0.86%       0.81%       0.88%       0.90%  
Delinquency ratio (5)   0.43%       0.34%       0.09%       0.12%       0.41%       0.34%       0.19%       0.48%  
Net loan charge-offs (recoveries) to average loans (2)   0.00%       0.01%       0.19%       0.00%       0.11%       0.08%       0.00%       0.13%  
                               
(1) Tangible book value per share (a non GAAP measure) is equal to total shareholders' equity less goodwill and core deposit intangibles, divided by the number of outstanding shares of our common stock at the end of the relevant period.  Please refer to the table above for a reconciliation of this non-GAAP measure.
(2) Annualized.
(3) Efficiency ratio is calculated as a non-interest expenses divided by the sum of net interest income and non-interest income.
(4) Nonperforming loans consist of non-accrural loans and accruing TDR loans.
(5) Delinquency Ratio includes loans 30-89 days past due and excludes non-accrual loans.

 

Primary Logo

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com