Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ECB BANCORP INC | d8k.htm |
Exhibit 99.1
|
PRESS RELEASE |
April 19, 2010
| CONTACT: | ECB Bancorp, Inc. | |
| Thomas M. Crowder, Chief Financial Officer | ||
| (252) 925-5520 | ||
| (252) 925-8491 facsimile |
FOR IMMEDIATE RELEASE
ECB Bancorp, Inc. Reports 2010 First Quarter Results
ENGELHARD, N.C.-ECB Bancorp, Inc. (NASDAQ:ECBE) (“ECB” or the “Company”) today announced its results for the three months ended March 31, 2010.
2010 First Quarter Financial Highlights
For the three months ended March 31, 2010, net income totaled $487,000, a 61.1% decrease from the $1,253,000 in net income for the three months ended March 31, 2009. After adjusting for $265,000 in preferred stock dividends and the accretion of warrant discount, net income available to common shareholders for the three months ended March 31, 2010 was $222,000 or $0.08 per diluted share compared to $1,046,000 or $0.37 per diluted share for the three months ended March 31, 2009.
Other Financial Highlights include:
| • | Consolidated assets increased 3.7% to $897,754,000 at March 31, 2010 from $865,383,000 at March 31, 2009. |
| • | Loans increased 5.1% to $577,964,000 at March 31, 2010 compared to $550,639,000 at March 31, 2009. |
| • | Deposits increased 12.3% to $772,927,000 at March 31, 2010 from $688,082,000 at March 31, 2009. |
| • | Net interest income increased 16.4 % to $6,995,000 for the three months ended March 31, 2010 from $6,012,000 for the same three-month period a year ago. |
| • | Provision for loan losses charged to operations for the three months ended March 31, 2010 totaled $3,000,000, a decrease of 47.1% compared to $5,675,000 charged to operations for the fourth quarter ended December 31, 2009. |
| • | During the first quarter, the Company declared a common stock dividend of $0.07 per share, or $0.28 per share on an annualized basis, which represents a decrease of 61.6% compared to the fourth quarter 2009 dividend of $0.1825 per share. |
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A. Dwight Utz, President and Chief Executive Officer, stated: “We still see a weakness in real estate in several of our markets, and we have continued to set aside higher loan loss reserves to compensate for those continued weaknesses. We continue to position our Bank for the recovery we feel is close at hand. We believe our strong balance sheet will allow us to continue to grow our Bank organically while also being receptive to any opportunities that might present themselves by way of an acquisition or FDIC assisted transactions.”
Thomas M. Crowder, Executive Vice President and Chief Financial Officer stated, “You will see in our financials that we continued to prepare the Bank’s balance sheet for what management believes will be a rising interest rate environment for the next several years. We continued a process begun in the fourth quarter of last year to reduce our bond portfolio’s price volatility through the sale and repurchase of shorter duration bonds. In the first quarter of 2010 we sold $45.9 million in fixed income securities and realized net gains of $1.29 million. We are also looking to lengthen the maturity of our liabilities by booking some longer maturity deposits at current rates, thereby locking in some lower funding costs over the next 3 to 5 years.”
Mr. Utz concluded, “The first quarter saw ECB Bancorp continuing to adjust to the changing economic environment we are currently facing, but our bank is strong financially and is currently producing attractive core earnings that we believe will return us to normal profitability in the near future. Looking ahead, we have begun the process of exploring with our regulators the possibility of redeeming our TARP preferred stock from the U.S. Treasury at some point in the future. ECB’s challenge in 2010 is to continue to grow in a way that is sound and profitable, and yet to keep pace with today’s opportunities and expectations.”
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.
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“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”, “feels”, “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.
###
See 3 pages of financial information attached
ECB BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
March 31, 2010, December 31, 2009 and March 31, 2009
(Dollars in thousands, except per share data)
| March 31, 2010 |
December 31, 2009* |
March 31, 2009 |
||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Assets |
||||||||||||
| Non-interest bearing deposits and cash |
$ | 10,133 | $ | 9,076 | $ | 12,604 | ||||||
| Interest bearing deposits |
877 | 870 | 882 | |||||||||
| Overnight investments |
59,240 | 7,865 | 1,430 | |||||||||
| Total cash and cash equivalents |
70,250 | 17,811 | 14,916 | |||||||||
| Investment securities |
||||||||||||
| Available-for-sale, at market value (cost of $196,068, $237,594 and $244,872 at March 31, 2010, December 31, 2009, and March 31, 2009, respectively) |
197,520 | 239,332 | 247,663 | |||||||||
| Loans held for sale |
627 | — | — | |||||||||
| Loans |
577,964 | 577,791 | 550,639 | |||||||||
| Allowance for loan losses |
(11,329 | ) | (9,725 | ) | (4,828 | ) | ||||||
| Loans, net |
566,635 | 568,066 | 545,811 | |||||||||
| Real estate and repossessions acquired in settlement of loans, net |
4,974 | 5,443 | 6,476 | |||||||||
| Federal Home Loan Bank common stock, at cost |
5,116 | 5,116 | 5,431 | |||||||||
| Bank premises and equipment, net |
25,114 | 25,329 | 25,482 | |||||||||
| Accrued interest receivable |
4,706 | 4,967 | 4,527 | |||||||||
| Bank owned life insurance |
8,731 | 8,657 | 8,429 | |||||||||
| Other assets |
14,081 | 13,999 | 6,648 | |||||||||
| Total |
$ | 897,754 | $ | 888,720 | $ | 865,383 | ||||||
| Liabilities and Shareholders’ Equity |
||||||||||||
| Deposits |
||||||||||||
| Demand, noninterest bearing |
$ | 98,320 | $ | 93,492 | $ | 84,180 | ||||||
| Demand, interest bearing |
190,720 | 141,956 | 106,678 | |||||||||
| Savings |
19,669 | 19,595 | 17,216 | |||||||||
| Time |
464,218 | 499,687 | 480,008 | |||||||||
| Total deposits |
772,927 | 754,730 | 688,082 | |||||||||
| Accrued interest payable |
1,042 | 1,121 | 2,023 | |||||||||
| Short-term borrowings |
20,877 | 22,910 | 62,161 | |||||||||
| Long-term obligations |
14,500 | 21,000 | 21,000 | |||||||||
| Other liabilities |
4,116 | 4,584 | 5,192 | |||||||||
| Total liabilities |
813,462 | 804,345 | 778,458 | |||||||||
| Shareholders’ equity |
||||||||||||
| Preferred stock, Series A |
17,163 | 17,122 | 16,997 | |||||||||
| Common stock, par value $3.50 per share |
9,974 | 9,968 | 9,956 | |||||||||
| Capital surplus |
25,827 | 25,803 | 25,735 | |||||||||
| Warrants |
878 | 878 | 878 | |||||||||
| Retained earnings |
29,577 | 29,555 | 31,663 | |||||||||
| Accumulated other comprehensive income |
873 | 1,049 | 1,696 | |||||||||
| Total shareholders’ equity |
84,292 | 84,375 | 86,925 | |||||||||
| Total |
$ | 897,754 | $ | 888,720 | $ | 865,383 | ||||||
| Common shares outstanding |
2,849,841 | 2,847,881 | 2,844,489 | |||||||||
| Common shares authorized |
10,000,000 | 10,000,000 | 10,000,000 | |||||||||
| Preferred shares outstanding |
17,949 | 17,949 | 17,949 | |||||||||
| Preferred shares authorized |
2,000,000 | 2,000,000 | 2,000,000 | |||||||||
| * | Derived from audited consolidated financial statements. |
ECB BANCORP, INC. AND SUBSIDIARY
Consolidated Income Statements
For the three months ended March 31, 2010 and 2009
(Dollars in thousands, except per share data)
| Three months ended March 31, | |||||||
| 2010 | 2009 | ||||||
| (unaudited) | (unaudited) | ||||||
| Interest income: |
|||||||
| Interest and fees on loans |
$ | 7,632 | $ | 7,347 | |||
| Interest on investment securities: |
|||||||
| Interest exempt from federal income taxes |
462 | 319 | |||||
| Taxable interest income |
1,897 | 2,530 | |||||
| Dividend income |
27 | 30 | |||||
| Other interest |
2 | 3 | |||||
| Total interest income |
10,020 | 10,229 | |||||
| Interest expense: |
|||||||
| Deposits: |
|||||||
| Demand accounts |
317 | 186 | |||||
| Savings |
12 | 11 | |||||
| Time |
2,489 | 3,595 | |||||
| Short-term borrowings |
56 | 196 | |||||
| Long-term obligations |
151 | 199 | |||||
| Other interest |
— | 30 | |||||
| Total interest expense |
3,025 | 4,217 | |||||
| Net interest income |
6,995 | 6,012 | |||||
| Provision for loan losses |
3,000 | 750 | |||||
| Net interest income after provision for loan losses |
3,995 | 5,262 | |||||
| Noninterest income: |
|||||||
| Service charges on deposit accounts |
823 | 876 | |||||
| Other service charges and fees |
265 | 267 | |||||
| Mortgage origination brokerage fees |
212 | 291 | |||||
| Net gain on sale of securities |
1,289 | 405 | |||||
| Income from bank owned life insurance |
74 | 82 | |||||
| Other operating income |
5 | 15 | |||||
| Total noninterest income |
2,668 | 1,936 | |||||
| Noninterest expenses: |
|||||||
| Salaries |
2,319 | 2,069 | |||||
| Retirement and other employee benefits |
730 | 751 | |||||
| Occupancy |
457 | 480 | |||||
| Equipment |
467 | 388 | |||||
| Professional fees |
288 | 297 | |||||
| Supplies |
52 | 56 | |||||
| Telephone |
183 | 152 | |||||
| FDIC insurance |
333 | 255 | |||||
| Other outside services |
118 | 143 | |||||
| Net cost of real estate and repossessions acquired in settlement of loans |
334 | 93 | |||||
| Other operating expenses |
957 | 761 | |||||
| Total noninterest expenses |
6,238 | 5,445 | |||||
| Income before income taxes |
425 | 1,753 | |||||
| Income tax expense (benefit) |
(62 | ) | 500 | ||||
| Net income |
487 | 1,253 | |||||
| Preferred stock dividends |
224 | 182 | |||||
| Accretion of discount |
41 | 25 | |||||
| Income available to common shareholders |
$ | 222 | $ | 1,046 | |||
| Net income per share - basic |
$ | 0.08 | $ | 0.37 | |||
| Net income per share - diluted |
$ | 0.08 | $ | 0.37 | |||
| Weighted average shares outstanding - basic |
2,848,839 | 2,842,017 | |||||
| Weighted average shares outstanding - diluted |
2,848,969 | 2,843,398 | |||||
ECB Bancorp, Inc.
Supplemental Quarterly Financial Data (Unaudited)
(Dollars in thousands, except per share data)
| 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | ||||||||||||||||
| Income Statement Data: |
||||||||||||||||||||
| Interest income |
$ | 10,020 | $ | 10,051 | $ | 10,320 | $ | 10,305 | $ | 10,229 | ||||||||||
| Interest expense |
3,025 | 3,033 | 3,244 | 3,663 | 4,217 | |||||||||||||||
| Net interest income |
6,995 | 7,018 | 7,076 | 6,642 | 6,012 | |||||||||||||||
| Provision for loan losses |
3,000 | 5,675 | 2,675 | 2,000 | 750 | |||||||||||||||
| Net interest income after provision expense |
3,995 | 1,343 | 4,401 | 4,642 | 5,262 | |||||||||||||||
| Noninterest income |
2,668 | 3,024 | 1,926 | 1,763 | 1,936 | |||||||||||||||
| Noninterest expense |
6,238 | 6,117 | 6,135 | 5,455 | 5,445 | |||||||||||||||
| Income (loss) before income taxes |
425 | (1,750 | ) | 192 | 950 | 1,753 | ||||||||||||||
| Income tax expense (benefit) |
(62 | ) | (853 | ) | (154 | ) | 150 | 500 | ||||||||||||
| Net income (loss) |
487 | (897 | ) | 346 | 800 | 1,253 | ||||||||||||||
| Preferred stock dividend & accretion of discount |
265 | 265 | 263 | 268 | 207 | |||||||||||||||
| Net income (loss) available to common shareholders |
$ | 222 | $ | (1,162 | ) | $ | 83 | $ | 532 | $ | 1,046 | |||||||||
| Per Share Data and Shares Outstanding: |
||||||||||||||||||||
| Net income (loss) - basic |
$ | 0.08 | $ | (0.41 | ) | $ | 0.03 | $ | 0.19 | $ | 0.37 | |||||||||
| Net income (loss) - diluted |
0.08 | (0.41 | ) | 0.03 | 0.19 | 0.37 | ||||||||||||||
| Cash dividends to common shareholders |
0.0700 | 0.1825 | 0.1825 | 0.1825 | 0.1825 | |||||||||||||||
| Book value at period end |
23.56 | 23.62 | 24.88 | 24.17 | 24.58 | |||||||||||||||
| Dividend payout ratio |
87.50 | % | -44.51 | % | 608.33 | % | 96.05 | % | 49.32 | % | ||||||||||
| Weighted-average number of common shares outstanding: |
||||||||||||||||||||
| Basic |
2,848,839 | 2,847,881 | 2,845,343 | 2,844,489 | 2,842,017 | |||||||||||||||
| Diluted |
2,848,969 | 2,847,881 | 2,847,053 | 2,846,359 | 2,843,398 | |||||||||||||||
| Shares outstanding at period end |
2,849,841 | 2,847,881 | 2,847,881 | 2,844,489 | 2,844,489 | |||||||||||||||
| Balance Sheet Data: |
||||||||||||||||||||
| Total assets |
$ | 897,754 | $ | 888,720 | $ | 858,737 | $ | 877,465 | $ | 865,383 | ||||||||||
| Loans - gross |
577,964 | 577,791 | 573,837 | 566,601 | 550,639 | |||||||||||||||
| Allowance for loan losses |
11,329 | 9,725 | 7,800 | 5,787 | 4,828 | |||||||||||||||
| Investment securities |
197,520 | 239,332 | 218,591 | 232,521 | 247,663 | |||||||||||||||
| Interest earning assets |
841,344 | 830,974 | 800,015 | 815,778 | 806,045 | |||||||||||||||
| Premises and equipment, net |
25,114 | 25,329 | 25,400 | 25,340 | 25,482 | |||||||||||||||
| Total deposits |
772,927 | 754,730 | 696,633 | 703,467 | 688,082 | |||||||||||||||
| Short-term borrowings |
20,877 | 22,910 | 46,989 | 60,191 | 62,161 | |||||||||||||||
| Long-term obligations |
14,500 | 21,000 | 21,000 | 21,000 | 21,000 | |||||||||||||||
| Shareholders’ equity |
84,292 | 84,375 | 87,936 | 85,792 | 86,925 | |||||||||||||||
| Selected Performance Ratios (annualized): |
||||||||||||||||||||
| Return on average assets |
0.22 | % | -0.41 | % | 0.16 | % | 0.37 | % | 0.58 | % | ||||||||||
| Return on average shareholders’ equity |
2.28 | % | -4.09 | % | 1.59 | % | 3.64 | % | 5.98 | % | ||||||||||
| Net interest margin |
3.55 | % | 3.56 | % | 3.58 | % | 3.37 | % | 3.12 | % | ||||||||||
| Efficiency ratio |
62.39 | % | 59.20 | % | 66.25 | % | 63.08 | % | 66.52 | % | ||||||||||
| Asset Quality Ratios: |
||||||||||||||||||||
| Nonperforming loans to period-end loans |
3.03 | % | 2.54 | % | 2.18 | % | 1.83 | % | 1.43 | % | ||||||||||
| Allowance for loan losses to period-end loans |
1.96 | % | 1.68 | % | 1.36 | % | 1.02 | % | 0.88 | % | ||||||||||
| Allowance for loan losses to nonperforming loans |
65 | % | 66 | % | 62 | % | 56 | % | 61 | % | ||||||||||
| Net charge-offs to average loans (annualized) |
0.97 | % | 2.61 | % | 0.47 | % | 0.74 | % | 1.37 | % | ||||||||||
| Capital Ratios: |
||||||||||||||||||||
| Equity-to-assets ratio |
9.39 | % | 9.49 | % | 10.24 | % | 9.78 | % | 10.04 | % | ||||||||||
| Leverage Capital Ratio |
9.38 | % | 9.59 | % | 9.81 | % | 9.76 | % | 9.87 | % | ||||||||||
| Tier 1 Capital Ratio |
12.78 | % | 12.77 | % | 13.16 | % | 13.20 | % | 13.54 | % | ||||||||||
| Total Capital Ratio |
14.03 | % | 14.02 | % | 14.37 | % | 14.09 | % | 14.31 | % | ||||||||||