Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ECB BANCORP INC | d8k.htm |
Exhibit 99.1
PRESS RELEASE
May 16, 2011
| CONTACT: | ECB Bancorp, Inc. | |
| Thomas M. Crowder, Chief Financial Officer | ||
| (252) 925-5520 | ||
| (252) 925-8491 facsimile |
FOR IMMEDIATE RELEASE
ECB Bancorp, Inc. Reports 2011 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, 2011.
2011 First Quarter Financial Highlights
For the three months ended March 31, 2011, net loss totaled $1,084,000 compared to the $487,000 in net income for the three months ended March 31, 2010. After adjusting for $265,000 in TARP preferred stock dividends and the accretion of warrant discount, net loss charged to common shareholders for the three months ended March 31, 2011 were $1,349,000 or $0.47 per diluted share compared to income of $222,000 or $0.08 per diluted share for the three months ended March 31, 2010.
Other Financial Highlights include:
| • | Consolidated assets increased 2.1% to $916,571,000 at March 31, 2011 from $897,754,000 at March 31, 2010. |
| • | Loans decreased 5.4% to $546,641,000 at March 31, 2011 compared to $577,964,000 at March 31, 2010. |
| • | Deposits increased 1.8% to $786,754,000 at March 31, 2011 from $772,927,000 at March 31, 2010. |
| • | Net interest income decreased 3.2 % to $6,768,000 for the three months ended March 31, 2011 from $6,995,000 for the same three-month period a year ago. |
| • | Provision for loan losses charged to operations for the three months ended March 31, 2011 totaled $3,930,000, a decrease of 9.4% compared to $4,337,000 charged to operations for the fourth quarter ended December 31, 2010. |
| • | 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, unchanged from the previous quarterly dividend. |
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A. Dwight Utz, President and Chief Executive Officer, stated: “We still see some 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. That said, we are positioned to move forward in 2011 with great expectations for the future. On May 20th we will convert our core processing system, and the positive impact this will have for ECB in the future cannot be overestimated. The technology platform that we will have available upon completion of our conversion will enhance our customer experience and significantly assist our associates with improved customer information and analytical reporting. This new technology will position us to execute our growth strategy moving into 2011 and beyond.”
Thomas M. Crowder, Executive Vice President and Chief Financial Officer stated: “From a financial perspective we have already absorbed some expenses associated with the conversion, particularly in the 4th quarter of 2010. On a go forward basis you will not see significant reductions in our systems related expenses because of the substantial upgrades that this conversion will result in; however, these upgrades are being achieved at little to no increase in our operating cost to the Company over current cost levels.”
Mr. Utz concluded, “The first quarter saw ECB Bancorp continuing to prepare for the future while continuing to deal with a sluggish economic recovery. The initial feedback from many of our customers dependent on the tourist trade is very positive for the summer of 2011, and we hope this might translate into another record year in tourism for our coastal communities. All in all, I am very optimistic for both the future of ECB and the communities we serve.”
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 25 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.myecb.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 Company’s earnings, capital and liquidity 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 or changes in laws, regulations or accounting standards that adversely affect our business; changes in the interest rate environment and the level of market interest rates that reduce our net interest margins and/or the values of loans we make and securities we hold; 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; continued or unexpected increases in credit losses in the Company’s loan portfolio; continued adverse conditions in general economic conditions and real estate values in our banking market (particularly as those conditions affect our loan portfolio, the abilities of our borrowers to repay their loans, and the values of loan collateral); and other developments or changes in our business that we do not expect. Factors that could influence the accuracy of statements in this report regarding completion of the conversion to the new system and benefits that we will gain, including the recoupment of recognized expense, include, but are not limited to, the possibility that we will encounter (a) unexpected delays in, costs associated with, or other problems in the course of, completion of our conversion to the new system, (b) unexpected compatibility issues associated with the new system, or (c) changes in our business or other factors which offset expected costs savings. 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, 2011, December 31, 2010 and March 31, 2010
(Dollars in thousands, except per share data)
| March 31, 2011 |
December 31, 2010 |
March 31, 2010 |
||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Assets |
||||||||||||
| Non-interest bearing deposits and cash |
$ | 10,176 | $ | 11,731 | $ | 10,133 | ||||||
| Interest bearing deposits |
30 | 20 | 877 | |||||||||
| Overnight investments |
— | 8,415 | 59,240 | |||||||||
| Total cash and cash equivalents |
10,206 | 20,166 | 70,250 | |||||||||
| Investment securities |
||||||||||||
| Available-for-sale, at market value (cost of $307,812, $275,883 and $196,068 at March 31, 2011, December 31, 2010, and March 31, 2010, respectively) |
304,975 | 273,229 | 197,520 | |||||||||
| Loans held for sale |
623 | 4,136 | 627 | |||||||||
| Loans |
546,641 | 567,631 | 577,964 | |||||||||
| Allowance for loan losses |
(15,219 | ) | (13,247 | ) | (11,329 | ) | ||||||
| Loans, net |
531,422 | 554,384 | 566,635 | |||||||||
| Real estate and repossessions acquired in settlement of loans, net |
7,258 | 4,536 | 4,974 | |||||||||
| Federal Home Loan Bank common stock, at cost |
4,571 | 4,571 | 5,116 | |||||||||
| Bank premises and equipment, net |
26,716 | 26,636 | 25,114 | |||||||||
| Accrued interest receivable |
4,808 | 5,243 | 4,706 | |||||||||
| Bank owned life insurance |
9,028 | 8,954 | 8,731 | |||||||||
| Other assets |
16,964 | 18,014 | 14,081 | |||||||||
| Total |
$ | 916,571 | $ | 919,869 | $ | 897,754 | ||||||
| Liabilities and Shareholders’ Equity |
||||||||||||
| Deposits |
||||||||||||
| Demand, noninterest bearing |
$ | 106,898 | $ | 104,932 | $ | 98,320 | ||||||
| Demand, interest bearing |
251,474 | 262,977 | 190,720 | |||||||||
| Savings |
36,314 | 29,938 | 19,669 | |||||||||
| Time |
392,068 | 388,094 | 464,218 | |||||||||
| Total deposits |
786,754 | 785,941 | 772,927 | |||||||||
| Accrued interest payable |
639 | 631 | 1,042 | |||||||||
| Short-term borrowings |
17,421 | 11,509 | 20,877 | |||||||||
| Long-term obligations |
27,500 | 34,500 | 14,500 | |||||||||
| Other liabilities |
5,044 | 6,394 | 4,116 | |||||||||
| Total liabilities |
837,358 | 838,975 | 813,462 | |||||||||
| Shareholders’ equity |
||||||||||||
| Preferred stock, Series A |
17,329 | 17,288 | 17,163 | |||||||||
| Common stock, par value $3.50 per share |
9,974 | 9,974 | 9,974 | |||||||||
| Capital surplus |
25,858 | 25,852 | 25,827 | |||||||||
| Warrants |
878 | 878 | 878 | |||||||||
| Retained earnings |
27,006 | 28,554 | 29,577 | |||||||||
| Accumulated other comprehensive income (loss) |
(1,832 | ) | (1,652 | ) | 873 | |||||||
| Total shareholders’ equity |
79,213 | 80,894 | 84,292 | |||||||||
| Total |
$ | 916,571 | $ | 919,869 | $ | 897,754 | ||||||
| Common shares outstanding |
2,849,841 | 2,849,841 | 2,849,841 | |||||||||
| 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 Results of Operations
For the three months ended March 31, 2011 and 2010
(Dollars in thousands, except per share data)
| Three months ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| (unaudited) | (unaudited) | |||||||
| Interest income: |
||||||||
| Interest and fees on loans |
$ | 7,357 | $ | 7,632 | ||||
| Interest on investment securities: |
||||||||
| Interest exempt from federal income taxes |
128 | 462 | ||||||
| Taxable interest income |
1,937 | 1,897 | ||||||
| Dividend income |
9 | 27 | ||||||
| Other interest |
7 | 2 | ||||||
| Total interest income |
9,438 | 10,020 | ||||||
| Interest expense: |
||||||||
| Deposits: |
||||||||
| Demand accounts |
557 | 317 | ||||||
| Savings |
53 | 12 | ||||||
| Time |
1,811 | 2,489 | ||||||
| Short-term borrowings |
69 | 56 | ||||||
| Long-term obligations |
180 | 151 | ||||||
| Total interest expense |
2,670 | 3,025 | ||||||
| Net interest income |
6,768 | 6,995 | ||||||
| Provision for loan losses |
3,930 | 3,000 | ||||||
| Net interest income after provision for loan losses |
2,838 | 3,995 | ||||||
| Noninterest income: |
||||||||
| Service charges on deposit accounts |
765 | 823 | ||||||
| Other service charges and fees |
244 | 265 | ||||||
| Mortgage origination fees |
326 | 212 | ||||||
| Net gain on sale of securities |
26 | 1,289 | ||||||
| Income from bank owned life insurance |
74 | 74 | ||||||
| Other operating income (expense) |
(4 | ) | 5 | |||||
| Total noninterest income |
1,431 | 2,668 | ||||||
| Noninterest expenses: |
||||||||
| Salaries |
2,564 | 2,319 | ||||||
| Retirement and other employee benefits |
676 | 730 | ||||||
| Occupancy |
483 | 457 | ||||||
| Equipment |
559 | 467 | ||||||
| Professional fees |
271 | 288 | ||||||
| Supplies |
51 | 52 | ||||||
| Telephone/data communications |
169 | 183 | ||||||
| FDIC insurance |
326 | 333 | ||||||
| Other outside services |
181 | 118 | ||||||
| Net cost of real estate and repossessions acquired in settlement of loans |
18 | 334 | ||||||
| Other operating expenses |
946 | 957 | ||||||
| Total noninterest expenses |
6,244 | 6,238 | ||||||
| Income (loss) before income taxes |
(1,975 | ) | 425 | |||||
| Income tax benefit |
(891 | ) | (62 | ) | ||||
| Net income (loss) |
(1,084 | ) | 487 | |||||
| Preferred stock dividends |
224 | 224 | ||||||
| Accretion of discount |
41 | 41 | ||||||
| Income (loss) available to common shareholders |
$ | (1,349 | ) | $ | 222 | |||
| Net income (loss) per share - basic |
($ | 0.47 | ) | $ | 0.08 | |||
| Net income (loss) per share - diluted |
($ | 0.47 | ) | $ | 0.08 | |||
| Weighted average shares outstanding - basic |
2,849,841 | 2,848,839 | ||||||
| Weighted average shares outstanding - diluted |
2,849,841 | 2,848,969 | ||||||
ECB Bancorp, Inc.
Supplemental Quarterly Financial Data (Unaudited)
(Dollars in thousands, except per share data)
| 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | ||||||||||||||||
| Income Statement Data: |
||||||||||||||||||||
| Interest income |
$ | 9,438 | $ | 9,840 | $ | 9,982 | $ | 9,965 | $ | 10,020 | ||||||||||
| Interest expense |
2,670 | 2,926 | 3,005 | 2,932 | 3,025 | |||||||||||||||
| Net interest income |
6,768 | 6,914 | 6,977 | 7,033 | 6,995 | |||||||||||||||
| Provision for loan losses |
3,930 | 4,337 | 3,863 | 1,780 | 3,000 | |||||||||||||||
| Net after provision expense |
2,838 | 2,577 | 3,114 | 5,253 | 3,995 | |||||||||||||||
| Noninterest income |
1,431 | 3,661 | 3,800 | 1,866 | 2,668 | |||||||||||||||
| Noninterest expense |
6,244 | 8,307 | 6,379 | 5,916 | 6,238 | |||||||||||||||
| Income (loss) before income taxes |
(1,975 | ) | (2,069 | ) | 535 | 1,203 | 425 | |||||||||||||
| Income tax expense (benefit) |
(891 | ) | (945 | ) | (5 | ) | 246 | (62 | ) | |||||||||||
| Net income (loss) |
(1,084 | ) | (1,124 | ) | 540 | 957 | 487 | |||||||||||||
| Preferred stock dividend & accretion of discount |
265 | 266 | 267 | 265 | 265 | |||||||||||||||
| Net income (loss) available to common shareholders |
$ | (1,349 | ) | $ | (1,390 | ) | $ | 273 | $ | 692 | $ | 222 | ||||||||
| Per Share Data and Shares Outstanding: |
||||||||||||||||||||
| Net income - basic |
$ | (0.47 | ) | $ | (0.49 | ) | $ | 0.10 | $ | 0.24 | $ | 0.08 | ||||||||
| Net income - diluted |
(0.47 | ) | (0.49 | ) | 0.10 | 0.24 | 0.08 | |||||||||||||
| Cash dividends |
0.0700 | 0.0700 | 0.0700 | 0.0700 | 0.0700 | |||||||||||||||
| Book value at period end |
21.71 | 22.32 | 24.70 | 24.46 | 23.56 | |||||||||||||||
| Dividend payout ratio |
-14.89 | % | -14.29 | % | 70.00 | % | 29.17 | % | 87.50 | % | ||||||||||
| Weighted-average number of common shares outstanding: |
||||||||||||||||||||
| Basic |
2,849,841 | 2,849,841 | 2,849,841 | 2,849,841 | 2,848,839 | |||||||||||||||
| Diluted |
2,849,841 | 2,849,841 | 2,849,841 | 2,849,936 | 2,848,969 | |||||||||||||||
| Shares outstanding at period end |
2,849,841 | 2,849,841 | 2,849,841 | 2,849,841 | 2,849,841 | |||||||||||||||
| Balance Sheet Data: |
||||||||||||||||||||
| Total assets |
$ | 916,571 | $ | 919,869 | $ | 932,209 | $ | 921,840 | $ | 897,754 | ||||||||||
| Loans - gross |
546,641 | 567,631 | 575,003 | 570,174 | 577,964 | |||||||||||||||
| Allowance for loan losses |
15,219 | 13,247 | 13,187 | 10,462 | 11,329 | |||||||||||||||
| Investment securities |
304,975 | 273,229 | 263,946 | 268,064 | 197,520 | |||||||||||||||
| Interest earning assets |
856,840 | 858,002 | 877,540 | 862,410 | 841,344 | |||||||||||||||
| Premises and equipment, net |
26,716 | 26,636 | 25,897 | 25,294 | 25,114 | |||||||||||||||
| Total deposits |
786,754 | 785,941 | 790,592 | 792,454 | 772,927 | |||||||||||||||
| Short-term borrowings |
17,421 | 11,509 | 13,534 | 22,408 | 20,877 | |||||||||||||||
| Long-term obligations |
27,500 | 34,500 | 34,500 | 14,500 | 14,500 | |||||||||||||||
| Shareholders’ equity |
79,213 | 80,894 | 87,632 | 86,918 | 84,292 | |||||||||||||||
| Selected Performance Ratios (annualized): |
||||||||||||||||||||
| Return on average assets |
-0.48 | % | -0.48 | % | 0.23 | % | 0.43 | % | 0.22 | % | ||||||||||
| Return on average shareholders’ equity |
-5.38 | % | -5.15 | % | 2.44 | % | 4.48 | % | 2.28 | % | ||||||||||
| Net interest margin |
3.30 | % | 3.23 | % | 3.31 | % | 3.52 | % | 3.55 | % | ||||||||||
| Efficiency ratio |
75.00 | % | 77.28 | % | 57.83 | % | 63.94 | % | 62.39 | % | ||||||||||
| Asset Quality Ratios: |
||||||||||||||||||||
| Nonperforming loans to period-end loans |
4.04 | % | 3.89 | % | 3.59 | % | 3.37 | % | 3.19 | % | ||||||||||
| Allowance for loan losses to period-end loans |
2.78 | % | 2.33 | % | 2.29 | % | 1.83 | % | 1.96 | % | ||||||||||
| Allowance for loan losses to nonperforming loans |
69 | % | 60 | % | 64 | % | 54 | % | 61 | % | ||||||||||
| Net charge-offs to average loans (annualized) |
1.40 | % | 2.99 | % | 0.79 | % | 1.83 | % | 0.97 | % | ||||||||||
| Capital Ratios: |
||||||||||||||||||||
| Tangible equity to total assets |
6.75 | % | 6.91 | % | 7.55 | % | 7.56 | % | 7.48 | % | ||||||||||
| Equity-to-assets ratio |
8.64 | % | 8.79 | % | 9.40 | % | 9.43 | % | 9.39 | % | ||||||||||
| Leverage Capital Ratio |
8.42 | % | 8.66 | % | 8.79 | % | 9.26 | % | 9.26 | % | ||||||||||
| Tier 1 Capital Ratio |
11.97 | % | 12.08 | % | 12.37 | % | 12.78 | % | 12.69 | % | ||||||||||
| Total Capital Ratio |
13.24 | % | 13.34 | % | 13.63 | % | 14.03 | % | 13.95 | % | ||||||||||