ECB Bancorp, Inc. Reports 2009 Third Quarter Financial Results

• Press Release
• Source: ECB Bancorp, Inc.
• On 4:16 pm EDT, Tuesday October 27, 2009

ENGELHARD, N.C.--(BUSINESS WIRE)--ECB Bancorp, Inc. (NASDAQ:ECBE - News) (“ECB” or the “Company”) today announced its results for the three and nine months ended September 30, 2009.

2009 Third Quarter Financial Highlights

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Symbol	Price	Change
ECBE	12.60	0.00

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For the three months ended September 30, 2009, net income was $346,000, which compares to net income for the three months ended September 30, 2008 of $1,009,000. After adjusting for $263,000 in preferred stock dividends and accretion of warrant discount, net income available to common shareholders for the three months ended September 30, 2009 was $83,000 or $0.03 per diluted share compared to $0.35 per diluted share for the three months ended September 30, 2008.

For the nine months ended September 30, 2009, net income was $2,399,000, which compares to net income for the nine months ended September 30, 2008 of $3,157,000. After adjusting for $738,000 in preferred stock dividends and accretion of warrant discount, net income available to common shareholders for the nine months ended September 30, 2009 was $1,661,000 or $0.58 per diluted share compared to $1.09 per diluted share for the same period in 2008.

Other Financial Highlights include:

• Consolidated assets increased 11.8% to $858,737,000 at September 30, 2009 from $767,768,000 at September 30, 2008.
• Gross loans increased 9.4% to $573,837,000 at September 30, 2009 from $524,337,000 at September 30, 2008.

• Deposits increased 12.5% to $696,633,000 at September 30, 2009 from $619,019,000 at September 30, 2008.
• Net interest income increased 33.5% to $7,076,000 for the three months ended September 30, 2009 from $5,300,000 for the same three month period a year ago. For the nine months ended September 30, 2009, net interest income increased 26.3% to $19,730,000 compared to $15,617,000 for the first nine months of 2008.
• Non-interest income for the three months ended September 30, 2009 was $1,954,000, an increase of 4.8% compared to $1,865,000 for the same three month period a year ago. For the nine months ended September 30, 2009, non-interest income increased 3.4% to $5,709,000 compared to $5,523,000 for the same period in 2008.
• During the quarter the Company declared a common stock dividend of $0.1825 per share, or $0.73 per share on an annualized basis, representing an identical dividend for 2009 as declared in 2008.

A. Dwight Utz, President and Chief Executive Officer, stated: “Although reported earnings in the third quarter of 2009 were down relative to the third quarter of 2008, many of the fundamentals were decidedly positive. For example, net interest income increased to an all time record of $7,076,000, up 33.5% from $5,300,000 in the third quarter of 2008, and benefitted from both strong average earning asset growth and a higher net interest margin, which began improving early this year.”

Mr. Utz continued, “From a credit quality standpoint, economic conditions remain challenging, and we have not been immune to these pressures. As of September 30, 2009, nonperforming assets were $18,563,000, or 2.16% of assets, versus $12,593,000, or 1.64% of assets, at September 30, 2008. However, we are encouraged that the rate of sequential quarterly increases in nonperforming assets has been moderating, and that charge-offs, although still higher than normal, declined for the second consecutive quarter. Furthermore, we have significantly strengthened our reserve position. The allowance for loan losses at September 30, 2009 was 1.36% of loans, versus 1.02% at June 30, 2009 and 0.97% at September 30, 2008. Although we expect delinquencies to remain elevated, we continue to believe the Bank is well reserved given our secured collateral positions.”

Mr. Utz concluded, “Looking ahead, we remain optimistic that ECB Bancorp will emerge from this difficult economic environment as a stronger and, ultimately, more profitable company. Many of the efficiencies we have achieved will pay dividends for many years to come, which should become increasingly apparent as the economy stabilizes. In the meantime, we will protect our strong capital position through controlled growth and an ongoing adherence to responsible lending.”

About ECB Bancorp, Inc.

ECB Bancorp, Inc. is a bank holding company, headquartered in Engelhard, North Carolina, whose wholly-owned subsidiary, The East Carolina Bank, is a state-chartered, independent community bank insured by the FDIC. The Bank provides a full range of financial services through its 24 offices covering eastern North Carolina from Currituck to Ocean Isle Beach and Greenville to Hatteras. The Bank also provides mortgages, insurance services through the Bank’s licensed agents, and investment and brokerage services offered through a third-party broker-dealer. The Company’s common stock is listed on The Nasdaq Global Market under the symbol “ECBE”. More information can be obtained by visiting ECB's web site at www.ecbbancorp.com.

"Safe Harbor Statement" Under the Private Securities Litigation Reform Act of 1995

Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, expectations or beliefs about future events or results, and other statements that are not descriptions of historical facts, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "potential" or "continue", or similar terms or the negative of these terms, or other statements concerning opinions or judgments of the Company's management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, pressures on the earnings, capital and liquidity of financial institutions in general resulting from current and future conditions in the credit and equity markets, the financial success or changing strategies of the Company's customers, actions of government regulators, the level of market interest rates, weather and similar conditions, particularly the effect of hurricanes on the Company's banking and operations facilities and on the Company's customers and the communities in which it does business, changes in general economic conditions and the real estate values in our banking market (particularly changes that affect our loan portfolio, the abilities of our borrowers to repay their loans, and the values of loan collateral). Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by the cautionary statements in this paragraph. The Company has no obligation, and does not intend to, update these forward-looking statements.

ECB Bancorp, Inc.
Gary M. Adams, Chief Financial Officer, 252-925-5525, 252-925-8491 facsimile