Earnings Roundup: Select Bancorp, Inc. (NASDAQ: SLCT)

On Monday, Shares of Select Bancorp, Inc. (NASDAQ: SLCT) showed the bearish trend with a lower momentum of -0.30% and ended its trading session at $13.29. The company traded total volume of 186,902 shares as contrast to its average volume of 10.93K shares. The company has a market value of $155.76M and about 11.72M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $10.58 and reached the max level of $14.06.

Select Bancorp, Inc. (SLCT), the holding company for Select Bank & Trust, recently stated net income for the year ended December 31, 2017 of $3.20M and basic and diluted earnings per share of $0.27, contrast to net income of $6.80M and basic and diluted earnings per share of $0.58 for the year ended December 31, 2016.

For the fourth quarter of 2017, the Company stated net loss of $2.00M, and basic and diluted loss per share of $(0.17), contrast to net income of $1.60M and basic and diluted earnings per share of $0.14 for the fourth quarter of 2016.

Embedded in the Company’s net income numbers for the year and quarter ended December 31, 2017, are net after tax merger expenses of $1.50M and $1.30M, respectively, related to the acquisition of Premara Financial, Inc. and its partner bank, Carolina Premier Bank, which closed in December 2017. In addition, because of the new tax legislation signed into law on December 22, 2017, the Company was required to calculate a “tax re-measurement” for the associated rate change for its deferred taxes. This tax re-calculation resulted in a boost of about $2.50M of income tax expense for the year and fourth quarter of 2017, which directly influenced the Company’s stated results for those periods.

Total assets, deposits, and total loans for the Company as of December 31, 2017 were $1.20B, $995.00M, and $982.60M, respectively, contrast to total assets of $846.60M, total deposits of $679.70M, and total loans of $677.20M as of the same date in 2016. The merger represented increases of $278.80M in total assets, $198.40M in gross loans, $18.00M in goodwill and $226.30M in deposits. Organic growth accounted for $68.70M in total assets, $107.00M in gross loans and $89.10M in deposits.

Non-performing loans reduced to $7.00M at December 31, 2017 from $9.40M at December 31, 2016. Non-performing loans equaled 0.71% of loans at December 31, 2017, decreasing from 1.02% of loans at December 31, 2016. Foreclosed real estate equaled $1.30M at December 31, 2017, contrast to $599.0K at December 31, 2016. For the year ended December 31, 2017, net charge-offs were $944.0K, or 0.13% of average loans, contrast to net charge offs of $126.0K, or 0.02% of average loans in 2016. At December 31, 2017, the allowance for loan losses was $8.80M, or 0.90% of total loans, as contrast to $8.40M, or 1.24% of total loans, at December 31, 2016.

The Company offered net profit margin of 18.20%. ROE was recorded as 6.40% while beta factor was 0.22. The stock, as of recent close, has shown the weekly upbeat performance of 2.23% which was maintained at 5.14% in this year.

Louis Jensen

Editor

I am Louis Jensen and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind thestockgem.com with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Earnings” category.

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