New Century Bancorp in Dunn, N.C., is merging its two subsidiary banks into one to improve efficiency and profits.
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The $550 million-asset company lost $274,000 last quarter after turning a profit of $1.1 million a year earlier, and blamed the loss mainly on a spike in loan losses at its flagship New Century Bank. It disclosed this month that it had signed a memorandum of understanding with state and federal regulators that requires it to improve its credit oversight.
On Friday the company said it would merge New Century Bank and New Century Bank South to "focus on managing one bank," said William L. Hedgepeth 2nd, its president and CEO. It expects to complete the merger in early 2008.
