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Select Bancorp

Nasdaq:SLCT
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SLCT
Nasdaq
$225M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Select Bancorp, Inc. operates as the bank holding company for Select Bank & Trust Company that provides banking services to individuals and small to medium-sized businesses. The last earnings update was 10 days ago. More info.


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SLCT Share Price and Events
7 Day Returns
-0.8%
NasdaqGM:SLCT
-3.2%
US Banks
-0.7%
US Market
1 Year Returns
-10.4%
NasdaqGM:SLCT
-10.8%
US Banks
3%
US Market
SLCT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Select Bancorp (SLCT) -0.8% -3.6% -3.4% -10.4% 43.1% 78.8%
US Banks -3.2% -3.4% -2.3% -10.8% 41.5% 46.8%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • SLCT underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
SLCT
Industry
5yr Volatility vs Market

Value

 Is Select Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Select Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Select Bancorp.

NasdaqGM:SLCT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $9.42 * 6.2%
$0.58
Book Value of Equity per Share Median Book Value from the past 5 years. $9.42
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:SLCT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.62 (1 + (1- 21%) (32.6%))
0.853
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.853 * 5.96%)
7.81%

Discounted Cash Flow Calculation for NasdaqGM:SLCT using Excess Returns Model Model

The calculations below outline how an intrinsic value for Select Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGM:SLCT Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.2% – 7.81%) * $9.42)
$-0.15
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.15 / (7.81% - 2.73%)
$-3.02
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $9.42 + $-3.02
$6.39
NasdaqGM:SLCT Discount to Share Price
Calculation Result
Value per share (USD) From above. $6.39
Current discount Discount to share price of $11.62
= -1 x ($11.62 - $6.39) / $6.39
-81.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Select Bancorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Select Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Select Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:SLCT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.89
NasdaqGM:SLCT Share Price ** NasdaqGM (2019-05-17) in USD $11.62
United States of America Banks Industry PE Ratio Median Figure of 593 Publicly-Listed Banks Companies 12.77x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Select Bancorp.

NasdaqGM:SLCT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:SLCT Share Price ÷ EPS (both in USD)

= 11.62 ÷ 0.89

13.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Bancorp is overvalued based on earnings compared to the US Banks industry average.
  • Select Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Select Bancorp's expected growth come at a high price?
Raw Data
NasdaqGM:SLCT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
10.7%per year
United States of America Banks Industry PEG Ratio Median Figure of 269 Publicly-Listed Banks Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGM:SLCT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.11x ÷ 10.7%

1.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Bancorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Select Bancorp's assets?
Raw Data
NasdaqGM:SLCT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $11.04
NasdaqGM:SLCT Share Price * NasdaqGM (2019-05-17) in USD $11.62
United States of America Banks Industry PB Ratio Median Figure of 598 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGM:SLCT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:SLCT Share Price ÷ Book Value per Share (both in USD)

= 11.62 ÷ 11.04

1.05x

* Primary Listing of Select Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Bancorp is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Select Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Select Bancorp has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Select Bancorp expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Select Bancorp expected to grow at an attractive rate?
  • Select Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Select Bancorp's earnings growth is positive but not above the United States of America market average.
  • Select Bancorp's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:SLCT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:SLCT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 10.7%
NasdaqGM:SLCT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 0.7%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:SLCT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:SLCT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 52 18 1
2019-12-31 48 15 1
NasdaqGM:SLCT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 52 15 15
2018-12-31 52 5 14
2018-09-30 49 0 7
2018-06-30 45 -1 5
2018-03-31 40 -4 3
2017-12-31 36 7 3
2017-09-30 34 8 7
2017-06-30 33 6 7
2017-03-31 34 9 7
2016-12-31 33 8 7
2016-09-30 33 8 7
2016-06-30 32 8 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Select Bancorp's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • Select Bancorp's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:SLCT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Select Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:SLCT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.93 0.93 0.93 1.00
2019-12-31 0.77 0.77 0.77 1.00
NasdaqGM:SLCT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.89
2018-12-31 0.87
2018-09-30 0.52
2018-06-30 0.37
2018-03-31 0.24
2017-12-31 0.27
2017-09-30 0.59
2017-06-30 0.58
2017-03-31 0.63
2016-12-31 0.58
2016-09-30 0.58
2016-06-30 0.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Select Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Select Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Select Bancorp has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Select Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Select Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Select Bancorp has delivered over 20% year on year earnings growth in the past 5 years.
  • Select Bancorp's 1-year earnings growth exceeds its 5-year average (412% vs 25.9%)
  • Select Bancorp's earnings growth has exceeded the US Banks industry average in the past year (412% vs 40.7%).
Earnings and Revenue History
Select Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Select Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:SLCT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 52.06 15.19 26.70
2018-12-31 52.24 13.78 26.74
2018-09-30 48.69 7.28 25.75
2018-06-30 44.57 4.74 24.28
2018-03-31 39.94 2.97 22.27
2017-12-31 36.22 3.19 20.18
2017-09-30 34.19 6.84 19.22
2017-06-30 33.23 6.80 18.86
2017-03-31 33.67 7.37 18.35
2016-12-31 32.68 6.75 18.06
2016-09-30 32.66 6.76 17.92
2016-06-30 32.08 6.36 17.75
2016-03-31 32.18 6.25 17.77
2015-12-31 32.20 6.48 17.57
2015-09-30 31.69 6.12 17.29
2015-06-30 30.97 4.96 17.22
2015-03-31 27.61 3.77 15.86
2014-12-31 24.45 2.32 14.70
2014-09-30 21.83 1.30 13.57
2014-06-30 19.85 1.77 12.32
2014-03-31 20.37 2.42 12.23
2013-12-31 20.60 2.94 12.09
2013-09-30 21.42 3.44 12.32
2013-06-30 21.51 3.42 12.30
2013-03-31 21.69 3.32 12.47
2012-12-31 24.14 4.64 12.59
2012-09-30 24.02 4.50 12.67
2012-06-30 22.87 3.85 12.71

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Select Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Select Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Select Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Select Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Select Bancorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Select Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Select Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Select Bancorp Company Filings, last reported 1 month ago.

NasdaqGM:SLCT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 213.45 73.21 71.29
2018-12-31 209.61 64.37 139.36
2018-09-30 204.71 68.37 123.39
2018-06-30 140.70 78.44 84.50
2018-03-31 137.67 71.55 100.77
2017-12-31 136.12 47.65 62.70
2017-09-30 109.82 34.74 53.31
2017-06-30 108.02 56.40 58.30
2017-03-31 106.56 56.25 60.79
2016-12-31 104.27 60.13 55.71
2016-09-30 103.19 60.55 73.99
2016-06-30 101.53 58.92 70.48
2016-03-31 99.21 59.78 68.20
2015-12-31 104.70 58.38 63.41
2015-09-30 103.55 59.57 50.56
2015-06-30 101.55 57.80 28.54
2015-03-31 100.09 44.20 36.69
2014-12-31 97.69 46.32 58.41
2014-09-30 94.00 44.13 93.73
2014-06-30 57.55 19.55 73.45
2014-03-31 56.52 20.00 73.83
2013-12-31 56.00 18.68 72.87
2013-09-30 55.99 26.58 86.66
2013-06-30 55.40 26.23 102.88
2013-03-31 54.84 27.03 110.24
2012-12-31 54.18 30.22 113.61
2012-09-30 53.67 38.57 97.83
2012-06-30 52.95 35.33 75.32
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Select Bancorp has an acceptable proportion of non-loan assets held.
  • Select Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at Select Bancorp are broadly funded by customer deposits.
  • Select Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Select Bancorp has a low allowance for bad loans.
  • Select Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Select Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Select Bancorp has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Select Bancorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Select Bancorp dividends.
If you bought $2,000 of Select Bancorp shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Select Bancorp's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Select Bancorp's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:SLCT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 473 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:SLCT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Select Bancorp has not reported any payouts.
  • Unable to verify if Select Bancorp's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Select Bancorp's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Select Bancorp has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Select Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Select Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Select Bancorp has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Select Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Hedgepeth
COMPENSATION $462,369
AGE 56
TENURE AS CEO 12.1 years
CEO Bio

Mr. William L. Hedgepeth, II, also known as Bill, has been the Chief Executive Officer and President of Select Bancorp, Inc. (a/k/a, New Century BanCorp Inc) and Select Bancorp and Select Bank & Trust Company since 2008. Mr. Hedgepeth served as the Chief Executive Officer and President of Select Bank & Trust Company since 2008. He served as the Chief Executive Officer and President of New Century BanCorp. Inc. since March 21, 2007 and April 6, 2007 respectively. He served as the President of New Century Bank South, a subsidiary of New Century BanCorp. Inc. from March 21, 2007 to 2008 and Chief Executive Officer from April 2007 to 2008. Mr. Hedgepeth served as an Executive Vice President and Chief Operating Officer of Customers Bancorp, Inc. He served as Chief Operating Officer of New Century BanCorp. Inc. and New Century Bank South. He served as President and Chief Executive Officer of New Century Bank of Fayetteville. He served as an Executive Vice President of New Century BanCorp., Inc. since 2005. Mr. Hedgepeth served as Senior Vice President and Area Executive for Fayetteville, First South Bank from 2001 to 2004. He was a Director of New Century BanCorp. Inc., since 2007 and New Century Bank since April 2008. He served as a Director of New Century Bank South from 2004 to April 2008. He has 33 years of experience in banking. He has completed the North Carolina Bank Directors’ College and Advanced Bank Directors’ College programs. He has also completed the North Carolina Bankers Association’s Advanced Management Program. He is a member of the Dunn Rotary Club and serves on the Boards of Directors of the North Carolina Bankers Association from 2008 to 2010 and the March of Dimes. He also serves on the Airborne and Special Operations Museum Board, the Greater Fayetteville Chamber of Commerce Board and the United Way of Cumberland County Board. He has been a Director of Select Bank & Trust Company since April 2008 and Select Bancorp, Inc. since September 12, 2007. He also serves on the Vision 2026 Board. Mr. Hedgepeth holds a Bachelor of Arts degree from the University of North Carolina at Chapel Hill.

CEO Compensation
  • Bill's compensation has been consistent with company performance over the past year.
  • Bill's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Select Bancorp management team in years:

4.6
Average Tenure
61
Average Age
  • The tenure for the Select Bancorp management team is about average.
Management Team

Bill Hedgepeth

TITLE
President
COMPENSATION
$462K
AGE
56
TENURE
12.1 yrs

Mark Jeffries

TITLE
Executive VP & CFO
COMPENSATION
$241K
AGE
63
TENURE
4.6 yrs

Lynn Johnson

TITLE
Executive VP & COO
COMPENSATION
$268K
AGE
55
TENURE
1.8 yrs

Rick Tobin

TITLE
Executive VP & Chief Credit Officer
COMPENSATION
$252K
AGE
62
TENURE
7.3 yrs

W. Betts

TITLE
Executive VP & Chief Banking Officer
COMPENSATION
$259K
AGE
61
TENURE
2.3 yrs

Brenda Bonner

TITLE
VP & Corporate Secretary
Board of Directors Tenure

Average tenure and age of the Select Bancorp board of directors in years:

11.5
Average Tenure
72.5
Average Age
  • The average tenure for the Select Bancorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

J. Ciccone

TITLE
Chairman of the Board
COMPENSATION
$39K
AGE
71
TENURE
11.1 yrs

Bill Hedgepeth

TITLE
President
COMPENSATION
$462K
AGE
56
TENURE
11.7 yrs

Ronnie Jackson

TITLE
Director
COMPENSATION
$23K
AGE
76
TENURE
7.3 yrs

Gerald Hayes

TITLE
Director
COMPENSATION
$23K
AGE
74
TENURE
16.3 yrs

Oscar Harris

TITLE
Director
COMPENSATION
$28K
AGE
79
TENURE
16.3 yrs

W. Tippett

TITLE
Director
COMPENSATION
$31K
AGE
78
TENURE
11.3 yrs

Tony Rand

TITLE
Director
COMPENSATION
$26K
AGE
78
TENURE
16.3 yrs

John McCauley

TITLE
Director
COMPENSATION
$27K
AGE
50
TENURE
16.3 yrs

Sharon Raynor

TITLE
Director
COMPENSATION
$22K
AGE
60
TENURE
10.3 yrs

Mack McLamb

TITLE
Director
COMPENSATION
$29K
AGE
53
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Select Bancorp insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Mar 19 Buy Oscar Harris Individual 22. Mar 19 22. Mar 19 10,000 $11.25 $112,520
21. Mar 19 Sell Kevin Stallings Individual 26. Sep 18 26. Sep 18 -1,081 $12.39 $-13,388
19. Mar 19 Buy Carlie McLamb Individual 18. Mar 19 18. Mar 19 235 $11.45 $2,691
18. Mar 19 Buy Oscar Harris Individual 15. Mar 19 15. Mar 19 10,000 $11.40 $114,000
12. Mar 19 Sell James Glen Individual 11. Mar 19 11. Mar 19 -7,300 $11.29 $-82,416
11. Mar 19 Sell James Glen Individual 08. Mar 19 08. Mar 19 -4,450 $11.15 $-49,638
04. Mar 19 Buy Oscar Harris Individual 04. Mar 19 04. Mar 19 240 $11.82 $2,837
15. Feb 19 Buy Atlas Principals, LLC Company 15. Feb 19 15. Feb 19 25,000 $12.00 $300,000
26. Sep 18 Buy Gerald Hayes Individual 26. Sep 18 26. Sep 18 2,395 $12.50 $29,938
31. Aug 18 Buy Charles Davis Individual 30. Aug 18 30. Aug 18 10,000 $12.00 $120,000
31. Aug 18 Buy Atlas Principals, LLC Company 30. Aug 18 30. Aug 18 22,000 $12.00 $264,000
31. Aug 18 Buy Oscar Harris Individual 30. Aug 18 30. Aug 18 10,834 $12.00 $130,008
31. Aug 18 Buy David Tobin Individual 30. Aug 18 30. Aug 18 50 $12.00 $600
31. Aug 18 Buy W. Tippett Individual 30. Aug 18 30. Aug 18 1,500 $12.00 $18,000
31. Aug 18 Buy William Hedgepeth Individual 30. Aug 18 30. Aug 18 500 $12.00 $6,000
31. Aug 18 Buy Alicia Hawk Individual 30. Aug 18 30. Aug 18 1,000 $12.00 $12,000
31. Aug 18 Buy W. Betts Individual 30. Aug 18 30. Aug 18 100 $12.00 $1,200
31. Aug 18 Buy Mark Jeffries Individual 30. Aug 18 30. Aug 18 2,500 $12.00 $30,000
31. Aug 18 Buy Kevin Stallings Individual 30. Aug 18 30. Aug 18 500 $12.00 $6,000
31. Aug 18 Buy Sharon Raynor Individual 30. Aug 18 30. Aug 18 1,000 $12.00 $12,000
31. Aug 18 Buy Anthony Rand Individual 30. Aug 18 30. Aug 18 1,000 $12.00 $12,000
31. Aug 18 Buy Carlie McLamb Individual 30. Aug 18 30. Aug 18 1,000 $12.00 $12,000
31. Aug 18 Buy John McCauley Individual 30. Aug 18 30. Aug 18 2,084 $12.00 $25,008
31. Aug 18 Buy Lynn Johnson Individual 30. Aug 18 30. Aug 18 100 $12.00 $1,200
31. Aug 18 Buy Ronald Jackson Individual 30. Aug 18 30. Aug 18 5,000 $12.00 $60,000
31. Aug 18 Buy Gerald Hayes Individual 30. Aug 18 30. Aug 18 500 $12.00 $6,000
31. Aug 18 Buy James Glen Individual 30. Aug 18 30. Aug 18 350 $12.00 $4,200
31. Aug 18 Buy J. Ciccone Individual 30. Aug 18 30. Aug 18 5,417 $12.00 $65,004
X
Management checks
We assess Select Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Select Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

I Ran A Stock Scan For Earnings Growth And Select Bancorp (NASDAQ:SLCT) Passed With Ease

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Select Bancorp (NASDAQ:SLCT). … Select Bancorp's Earnings Per Share Are Growing. … Select Bancorp maintained stable EBIT margins over the last year, all while growing revenue 44% to US$52m.

Simply Wall St -

Do Institutions Own Select Bancorp, Inc. (NASDAQ:SLCT) Shares?

If you want to know who really controls Select Bancorp, Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … With a market capitalization of US$222m, Select Bancorp is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

How Many Insiders Bought Select Bancorp, Inc. (NASDAQ:SLCT) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Select Bancorp, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Over the last year, we can see that insiders have bought 56.31k shares worth US$671k.

Simply Wall St -

Why These Fundamentals Make Select Bancorp, Inc.’s (NASDAQ:SLCT) More Attractive

Select Bancorp, Inc.’s (NASDAQ:SLCT) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$225m. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Select Bancorp to vulnerabilities. … Unpredictable macro events such as political instability could weaken its financial position which is why it is important to understand how well the bank manages its risk levels.

Simply Wall St -

Should You Worry About Select Bancorp, Inc.'s (NASDAQ:SLCT) CEO Pay?

Bill Hedgepeth has been the CEO of Select Bancorp, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Bill Hedgepeth's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What You Should Know About Select Bancorp, Inc.’s (NASDAQ:SLCT) Risks

Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Select Bancorp’s bottom line. … Today we will analyse Select Bancorp’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank. … View our latest analysis for Select Bancorp?

Simply Wall St -

Don't Sell Select Bancorp, Inc. (NASDAQ:SLCT) Before You Read This

We'll look at Select Bancorp, Inc.'s (NASDAQ:SLCT) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Select Bancorp's P/E ratio is 23.73. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Have Insiders Been Buying Select Bancorp, Inc. (NASDAQ:SLCT) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Select Bancorp, Inc. … In any event it's generally a positive if insiders are buying shares at around the current price.

Simply Wall St -

Can These Factors Give You An Edge In Select Bancorp Inc (NASDAQ:SLCT)?

As a small-cap finance stock with a market capitalisation of US$231m, the risk and profitability of Select Bancorp Inc (NASDAQ:SLCT) are largely tied to the underlying economic growth of the region it operates in US. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Select Bancorp to vulnerabilities. … High liquidity and low leverage could position Select Bancorp favourably at the face of macro headwinds.

Simply Wall St -

Does Select Bancorp Inc's (NASDAQ:SLCT) CEO Pay Matter?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Bill Hedgepeth's Compensation Compare With Similar Sized Companies. … A first glance this seems like a real positive for shareholders, since Bill Hedgepeth is paid less than the average compensation paid by similar sized companies.

Simply Wall St -

Company Info

Description

Select Bancorp, Inc. operates as the bank holding company for Select Bank & Trust Company that provides banking services to individuals and small to medium-sized businesses. The company accepts deposit products, such as non-interest-bearing demand deposits, Money market deposit and NOW accounts, savings accounts, and time deposits, as well as certificates of deposit. Its loan products include 1-to-4 family residential, commercial real estate, multi-family residential, construction, and commercial and industrial loans; loans to individuals; and home equity lines of credit and overdrafts. Select Bancorp, Inc. operates a network of branch offices in Burlington, Charlotte, Clinton, Elizabeth City, Fayetteville, Goldsboro, Greenville, Leland, Lillington, Lumberton, Morehead City, Raleigh, Washington, and Wilmington, North Carolina; and Rock Hill, Blacksburg, and Six Mile, South Carolina. The company was formerly known as New Century Bancorp, Inc. and changed its name to Select Bancorp, Inc. in July 2014. Select Bancorp, Inc. was founded in 2000 and is headquartered in Dunn, North Carolina.

Details
Name: Select Bancorp, Inc.
SLCT
Exchange: NasdaqGM
Founded: 2000
$224,573,755
19,326,485
Website: http://www.selectbank.com
Address: Select Bancorp, Inc.
700 West Cumberland Street,
Dunn,
North Carolina, 28334,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM SLCT Common Stock Nasdaq Global Market US USD 06. Oct 2000
Number of employees
Current staff
Staff numbers
205
Select Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:37
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/02
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.