Mergers & Acquisitions

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Deal Overview

Buyer:
New Century Bancorp, Inc.
Actual Acquirer:
New Century Bancorp, Inc.
Target:
Select Bancorp, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
9/30/2013
Announcement Date:
9/30/2013
Announced Deal Value ($ M):
31.06
Status:
Completed
Completion Date:
7/25/2014
Announced Deal Value Per Share ($ )
12.55

Consideration Breakout
Common Stock ($M) 29.9
Common Stock Issued 4,416,500

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 124.5 108.3
Price / Tangible Book (%) 134.3 115.6
Price / Earnings (x) 14.4 9.9
Price / Deposits (%) 14.42 13.59
Price / Assets (%) 11.71 10.59
Tangible Book Premium/ Deposits (%) 5.96 2.78
Deal Terms
Description of Consideration

New Century Bancorp Inc. exchanged 1.8264 shares of its common stock for each outstanding share of Select Bancorp Inc. New Century Bancorp Inc. assumed Select Bancorp Inc.'s stock options and assumed Series A preferred stock issued in connection with Select Bancorp Inc.'s participation in the Small Business Lending Fund program developed by the U.S. Department of the Treasury. Target financials are for Select Bank & Trust Co.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? No
Geographic Expansion? Market Expansion
Goodwill Generated ($ 000) 6,931
Estimated Cost Savings (%) 18.00
Estimated Cost Savings ($ 000) 1,200
Est. Restructuring Charges ($ 000) 3,000
Maximum Termination Fee ($ 000) 1,675
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 1.826400
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 1,790
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Janney Montgomery Scott LLC
Seller Yes Smith Capital Inc.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Wyrick Robbins Yates & Ponton
Seller Yes Williams Mullen