ECB BANCORP, INC. REPORTS ANNUAL EARNINGS INCREASE FOR 2003
Strategic Investments in 2003 Laying the Foundation for Future Growth

February 19, 2004

ENGELHARD, NC - February 19, 2004 - ECB Bancorp, Inc. (NASDAQ: ECBE) ("ECB" or the "Company") today announced its results for the year ended December 31, 2003.

2003 Financial Highlights
- Net income for 2003 rose 11.97% year-over-year to $3,906,000, or $1.91 per diluted share, generating an annualized ROAA of 0.95% and an annualized ROAE of 12.97%.
- Earnings per share (diluted) increased 13.00% to $1.91 for 2003 from $1.69 for 2002.
- Net interest income for 2003 rose 8.43% to $15,219,000 from $14,036,000 from a year ago.
- Consolidated assets increased 12.60% to $434,964,000 at December 31, 2003 from $386,305,000 at December 31, 2002.
- Loans increased 23.56% to $281,581,000 at December 31, 2003 from $227,883,000 at December 31, 2002.
- Deposits increased 17.15% to $352,934,000 at December 31, 2003 from $301,261,000 at year-end December 31, 2002.
- Non-interest income for 2003 rose 22.21% to $5,464,000 from $4,471,000 a year ago.

2003 Strategic Plan Highlights
- Strategic investments in 2003 to lay the foundation for future growth:
- New loan production offices opened in Morehead City and Wilmington in January, 2003.
- New full-service branch opened in Williamston in May, 2003.
- Also opened new 10,000 square foot Operations and Credit Administration Center in Engelhard in May.
- Broke ground in November, 2003 for a new full-service branch in Wilmington, which will open in the summer of 2004 and replace the existing loan production office.
- Approved plans for and started construction on a new 12,300 square foot Corporate Headquarters and branch in Engelhard, to replace outmoded facility.
- New Morehead City full-service branch opened in January, 2004, replacing the existing loan production office.
· Increased dividend by 25% to $0.50 on an annualized basis.

Arthur H. Keeney, III, President and Chief Executive Officer, stated: "We are pleased to report that ECB completed another fine year. Our performance in 2003 underscores the continued successful implementation of our core strategies: grow the loan portfolio while maintaining high asset quality, grow core deposits, increase non-interest income, control expenses, and make strategic investments in new communities which will result in increased shareholder value.

"Our solid performance is reflected in the consistent incremental growth we have achieved over the past four years. During this time, we saw net income increase by 62.5% to $3.9 million in 2003 from $2.4 million in 2000, growth in assets of 62.1% to $435.0 million in 2003 from $268.3 million in 2000, a consistent annualized ROAA averaging 0.98%, and an increase in annualized ROAE to 12.97% in 2003 from 10.41% in 2000.

"Demand remained strong for our loan products. We saw an increase in our loan portfolio of 23.56% to $281,581,000 at December 31, 2003 compared to December 31, 2002. As we continued to increase our loan portfolio, we adhered to the Bank's strict underwriting standards and have continued to build a solid balance sheet that meets high standards for capital adequacy, return on assets and liquidity. We ended the year with a loan-loss reserve ratio of 1.26, which is above our peer group. We believe we are well capitalized, well reserved, and well protected against rising interest rates.

"We continued to attract deposits, which increased 17.15% to $352,934,000, at December 31, 2003 compared to December 31, 2002. This increase in deposits, combined with our strong capital position, allowed us to increase our consolidated assets 12.60% to $434,964,000, while maintaining strong asset quality.

"During 2003, the net interest margin remained under pressure due to the challenging interest-rate environment, as rates declined to their lowest level in over forty years. We have been able to offset the effect of reduced loan yields by the continued growth in our loan portfolio, and increases in fee-based, non-interest income.

"We are pleased to report that non-interest income for 2003 increased 22.21% to $5,464,000 over 2002. As the community bank for eastern North Carolina, we believe that the strength of ECB's approach lies in our ability to bring the personal touch of ECB's community banking to our customers and communities by offering products and services that meet their banking needs, including fee-based products and services, and a wide variety of mortgage options, insurance and investment products.

"ECB continued to make strategic investments in its future growth in 2003. Our newest full-service branch in Williamston, which opened in May 2003, is now fully staffed in comparison to the small loan production office that it replaced. On January 26, 2004, we opened a new full-service branch in Morehead City, replacing the existing loan production office. Additionally, we broke ground on the construction of a new full-service branch in Wilmington, which will open in the summer of 2004 and replace the existing loan production office. In May 2003, we opened our new 10,000 square foot Operations and Credit Administration Center in Engelhard.

"In keeping with our commitment to the Engelhard community, our Board of Directors made the decision to construct a new corporate headquarters and branch, replacing the old outmoded facility. As a result of this investment in our future and that of the Engelhard community, our results for 2003 include the write-off of the old facility's $130,000 book value, representing a re-estimation of its remaining useful life. The old Engelhard facility will be demolished in 2004 upon completion of the new corporate headquarters and branch. Because of this write-off, additional expenses associated with new staff and branches, and continued margin pressure, net income for our fourth quarter ended December 31, 2003 was $849,000 or $.42 per diluted share, a decrease of $196,000 or 18.76% over the same quarter last year. Net income for the quarter ended December 31, 2002 was $1,045,000 or $.51 per diluted share.

"Despite the devastation left in the wake of Hurricane Isabel in September, we continued to provide banking services to our customers throughout North Carolina's Outer Banks and in other communities affected by the storm, once again living up to our heritage of being "The Bank That Didn't Close" during the Great Depression - the result of our advance planning for crisis situations such as this storm. Certain branches suffered modest water damage, which was covered by insurance. Although the inevitable business slowdown in the wake of the storm is reflected in our 2003 fourth quarter results, we are pleased to report that the small businesses in our communities are actively rebuilding damaged properties and look to be well positioned to take full advantage of the 2004 tourist season.

"Our continued strong capital position enabled us to increase our asset size and focus on shareholder value initiatives. During 2003, we increased our dividend by 25% to an indicated yearly rate of $0.50 per common share.

"Going forward, we will continue to focus on organic growth, as we deepen our relationships with the local businesses and consumers in the communities that we serve. By taking an active role in our communities, financing small businesses and delivering, in a personalized manner, an array of up-to-date financial products, we expect to continue to attract more customers to The East Carolina Bank in the years to come. We will continue to look for opportunities to establish new locations, particularly in communities that have not yet experienced our style of personalized community banking. Importantly, we remain committed to building value for our shareholders."

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 20 offices in eastern North Carolina, including a new full-service branch office in Morehead City and a loan production office in Wilmington. 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. ECB's common stock is listed on The Nasdaq SmallCap 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 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. Factors that could influence the accuracy of such forward-looking statement include, but are not limited to, the financial success or changing strategies of the Company's customers, actions of government regulators, the level of market interest rates, and general economic conditions. 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. The Company has no obligation to update these forward-looking statements.

 

ECB Breaks Ground on New Branch and Corporate Facility

February 4, 2004

ENGELHARD, N.C. — The East Carolina Bank (ECB) proudly announces that construction for a new branch and corporate facility is underway.

The attractive, brick, Williamsburg-style, 12,300 square foot building, will house a full service branch and an administrative center. The new branch will have 2 drive-through lanes, an automated teller machine, and a night depository. On the first floor of the corporate facility building will be administrative offices and a Boardroom. Audit, Finance, and Human Resources departments will be located on the second floor.
Parking, a significant problem in the past, will improve for both ECB customers and the general public of Engelhard with the completion of the new facility and the addition of a larger, paved parking lot in place of the old branch building.

“Due to our profitable and sustained growth, we have totally outgrown the current facility,” said Arthur H. Keeney, III, president and CEO. “With the visit from Hurricane Isabel, two of the three ECB headquarter buildings experienced water damage. Although completely covered by insurance, this also accelerated our decision to begin construction.”

When the decision was finalized to tear down the current branch upon completion of the new complex, the remaining useful life of the existing structure's $130,000 book value was re-estimated. Earnings in 2003 were charged this amount reflecting the total write-off of the old building.

ECB also recently announced the opening of its 19th full-service branch, located at 168 NC Highway 24 in Morehead City. The new branch office has a full staff that includes a mortgage loan officer and both retail and commercial lending officers. The new office features approximately 3,600 square feet of service area, seven offices, two drive-through lanes, a drive-up automated teller machine, and a night depository. Operating hours are Monday through Thursday 8:30 a.m. to 5 p.m. and 8:30 a.m. to 6 p.m. on Friday. A formal grand opening is scheduled for March.

Headquartered in Engelhard, NC, The East Carolina Bank is a state-chartered, independent community bank insured by the FDIC. The Bank provides a full range of financial services throughout its 20 offices in eastern North Carolina, including a new full service branch office in Morehead City and a Loan Production Office in Wilmington; mortgages and insurance services through the Bank's licensed agents; and investment and brokerage services offered through a third-party broker-dealer. ECB's common stock is listed on The NASDAQ SmallCap Market under the symbol "ECBE". More information can be obtained by visiting ECB's web site at www.ecbbancorp.com.

 

ECB NOW OPEN IN MOREHEAD CITY

January 26, 2004

MOREHEAD CITY, N.C.—The East Carolina Bank (ECB), with assets exceeding $420 million, announces the opening of its 19th full-service branch in Morehead City.

"Last year, we opened a loan office in Hestron Plaza to meet the lending needs of this area,” stated J. Dorson White, Jr., the Bank’s executive vice president and COO. “Today, the citizens of Carteret County and the greater Morehead City area are able to take advantage of the excellent benefits and quality service our community bank offers.”

The Morehead City branch will house a full banking staff, including a mortgage loan officer and both retail and commercial lending officers. The new office features approximately 3,600 square feet of service area, and includes seven offices, two drive-through lanes, a drive-up automated teller machine, and a night depository. Operating hours are Monday through Thursday from 8:30 a.m. to 5 p.m. and 8:30 a.m. to 6 p.m. on Fridays. A formal Grand Opening ceremony is scheduled for March.

The branch is centrally located at 168 NC Route 24 near the intersection of U.S. Highway 70 in Morehead City. The ECB Morehead City staff, under the leadership of Sam O'Berry, invites the public to stop by for a visit and may be reached at (252) 726-0987.

Serving the citizen of eastern North Carolina since 1920, The East Carolina Bank is headquartered in Engelhard, N.C. ECB is a state-chartered, independent community bank insured by the FDIC. The Bank provides a full range of financial services through its 20 offices in eastern North Carolina, including a Loan Production Office in Wilmington, mortgages, insurance services through the Bank’s licensed agents and investment and brokerage services offered through a third-party broker-dealer. Its common stock is listed on The Nasdaq SmallCap Market under the symbol "ECBE". More information on ECB can be obtained by visiting the Company's web site at www.ecbbancorp.com.

 

ECB BANCORP, INC. REPORTS DECLARATION OF
QUARTERLY CASH DIVIDEND

December 16, 2003

ENGELHARD, NORTH CAROLINA-ECB Bancorp, Inc. ("ECB"), the parent holding company of The East Carolina Bank, announces that on December 16, 2003, ECB's Board of Directors declared a quarterly cash dividend of $.125 per share, payable January 12, 2004 to shareholders of record on December 29, 2003.

On an annualized basis the Company's 2003 dividend of $.50 per share represents a 25% increase over the annual dividend in 2002 of $.40 per share.

Headquartered in Engelhard, NC, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank’s licensed agents and investment and brokerage services offered through a third-party broker-dealer. Its common stock is listed on The Nasdaq SmallCap Market under the symbol "ECBE". More information on ECB can be obtained by visiting the Company's web site at www.ecbbancorp.com.

 

ECB holds GROUND BREAKING for WILMINGTON BRANCH

November 26, 2003

WILMINGTON, NORTH CAROLINA-The East Carolina Bank (ECB) recently held a Ground Breaking ceremony for a new branch office in Wilmington to be located at 1724 Eastwood Road.

Bank personnel: Arthur H. Keeney, III, - ECB President & CEO; J. Dorson White, Jr.- ECB Executive Vice President & COO; and Steve Parker - ECB VP & City Executive for Wilmington, along with chamber officials and guests, attended the ground breaking.

J. Dorson White, Jr., ECB's Chief Operating Officer, commented, "We are proud to be a part of the city of Wilmington. Earlier this year, we opened a Loan Production Office here to answer the call for a different style of Community Banking in New Hanover County: one that was customer-focused and convenience-oriented, that would bring added value to the citizens of this area, and would underscore our motto 'Excellence in Community Banking'. When the new full service facility is completed in mid-summer, Steve Parker and his able staff will be able to offer multiple banking options to the citizens of New Hanover County, including convenient traditional branch services as well as Investment and Insurance services."

In anticipation of building this full-service branch facility near the intersection of Eastwood Road and Military Cutoff, ECB opened a Loan Production Office managed by Parker to provide consumer, mortgage and business loans to the public. The Loan Office is located in Land Fall Center at 1319 Military Cutoff Road, Suite GG in Wilmington and is designed to build an early base of customers who will then be able to take advantage of the newly constructed full-service branch office. Steve Parker can also be reached by telephone at (910) 509-2816 or by email at Steve.Parker@ecbbancorp.com.

The new Wilmington office, will be a brick colonial and feature approximately 3,600 square feet of service area, and will include seven offices, two drive-through lanes, a drive-up automated teller machine, and a night depository area.

Headquartered in Engelhard, NC, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank’s licensed agents and investment and brokerage services offered through a third-party broker-dealer. Its common stock is listed on The Nasdaq SmallCap Market under the symbol "ECBE". More information on ECB can be obtained by visiting the Company's web site at www.ecbbancorp.com.

 

ECB BANCORP, INC. REPORTS A 25% INCREASE
IN 2003 NINE MONTHS NET INCOME

October 16, 2003

ENGELHARD, NORTH CAROLINA - ECB Bancorp, Inc. (NASDAQ: ECBE) (“ECB” or the “Company”) today announced its results for the three and nine months ended September 30, 2003.

Three and Nine Months 2003 Highlights

Net income rose 25.09% year-over-year to $3,056,000, or $1.50 per diluted share, in the first nine months of 2003, generating an annualized ROAA of 1.01% and an annualized ROAE of 13.57%. For the 2003 third quarter, net income rose 1.27% year-over-year to $1,039,000, or $.51 per diluted share, generating an annualized ROAA of .99% and an annualized ROAE of 13.80%.

Net interest income rose 11.06% to $11,388,000 in the first nine months of 2003 from the year ago period. For the 2003 third quarter, net interest income rose 6.47% from the 2002 third quarter.

Consolidated assets increased 12.68% to $419,490,000 at September 30, 2003 from $372,286,000 at September 30, 2002.

Loans increased 26.12% to $268,855,000 at September 30, 2003 from $213,175,000 at September 30, 2002.

Deposits increased 15.52% to $328,657,000 at September 30, 2003 from $284,511,000 at September 30, 2002.

Non-interest income rose 27.08% to $4,218,000 in the first nine months. For the 2003 third quarter, non-interest income rose 24.21% to $1,494,000 from the 2002 third quarter.

Net income for the nine months ended September 30, 2003 was $3,056,000, which represents a 25.09% increase over net income of $2,443,000 for the nine months ended September 30, 2002. Earnings per share (diluted) were $1.50 for the nine-month period ended September 30, 2003, a 27.12% increase compared to $1.18 for the nine months ended September 30, 2002.

For the three months ended September 30, 2003, ECB reported net income of $1,039,000, an increase of 1.27% over net income of $1,026,000 for the quarter ended September 30, 2002. Earnings per share (diluted) were $.51 for the quarter ended September 30, 2003, a 2.00% increase over $.50 for the quarter ended September 30, 2002.

Arthur H. Keeney, III, President and Chief Executive Officer, stated: “We are pleased to report that ECB completed another strong quarter. Our performance in the third quarter and first nine months of 2003 underscores the continued successful implementation of our core strategies: grow the loan portfolio while maintaining high asset quality, grow core deposits, increase non-interest income, control expenses, and make strategic investments in new communities which will result in increased shareholder value.

"Demand remained strong for our loan products and we saw an increase in our loan portfolio of 26.12% to $268,855,000 at September 30, 2003 compared to September 30, 2002. As we continued to increase our loan portfolio, we adhered to the Bank's strict underwriting standards and prudently increased our loan loss reserves during the quarter to maintain a level above our peer group.

"We continued to attract deposits, which increased 15.52% to $328,657,000, at September 30, 2003 compared to September 30, 2002. This increase in deposits, combined with our strong capital position, allowed us to increase our consolidated assets 12.68% to $419,490,000, while maintaining strong asset quality.

"During the 2003 third quarter, our net interest margin continued under pressure in the challenging interest rate environment that all banks have operating in over the past few years. We have been able to offset the effect of reduced loan yields by the continued growth in our loan portfolio and increases in fee-based, non-interest income.

"We are pleased to report that non-interest income for the nine months ended September 30, 2003 increased 27.08% to $4,218,000 over the same nine month period in 2002. As the community bank for eastern North Carolina, we believe that the strength of ECB's approach lies in our ability to bring the personal touch of ECB's community banking to our customers and communities by offering products and services that meet their banking needs. For example, our fee-based products and services, which include an overdraft privilege for customers’ checking accounts, and a wide variety of mortgage options, insurance and investment products, are gaining increased acceptance with our customers and in our markets.

"ECB continues to make strategic investments in its future growth. Our newest branch in Williamston, which is now fully staffed in comparison to the small loan production office that it replaced, opened in May to a warm reception from the community. Additionally, we broke ground on the construction of two new branches in Morehead City and Wilmington which are scheduled for completion in early 2004 and which will replace the existing loan production offices. We were also pleased with the opening in May of our new 10,000 square foot Operations and Credit Administration Center in Engelhard.

"Because of our recent and anticipated growth, ECB needs room to expand at our headquarters in Engelhard, North Carolina. In September, our Board of Directors approved the design of a new corporate headquarters and branch in Engelhard, North Carolina to replace the existing facility. In accordance with GAAP, we have already begun expensing the existing facility's book value, which will be fully expensed by the end of the year.

"In September, despite the damage left in the wake of Hurricane Isabel, we continued to provide banking services to our customers throughout North Carolina’s Outer Banks and other communities affected by the storm, once again living up to our heritage of being ‘The Bank That Didn’t Close’ which originated during the Great Depression. Our branches suffered minimal water damage, which was covered by insurance, and all were open on Monday following Thursday's visit by Isabel. Cleaning up after Hurricane Isabel is going to be a major task for many of the residents in our communities and ECB will be there to help."

Headquartered in Engelhard, NC, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank's licensed agents and investment and brokerage services offered through a third-party broker-dealer. ECB's common stock is listed on The NASDAQ SmallCap 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

This discussion may contain statements that could be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other statements concerning opinions or judgement of ECB and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of ECB's customers, weather and similar conditions, particularly the effect of hurricanes on the Company's banking, loan production and operations facilities and on its customers and communities in which the Company does business, actions of government regulators, the level of market interest rates, and general economic conditions.

 

Following Hurricane Isabel, ECB Bancorp was “The Bank That Didn’t Close”

September 24, 2003

Engelhard, North Carolina – Despite the devastation left in the wake of Hurricane Isabel, The East Carolina Bank (ECB), subsidiary of ECB Bancorp, Inc. (Nasdaq: ECBE), continued to provide banking services to its customers throughout North Carolina’s Outer Banks and in other communities affected by the storm, once again living up to its heritage of being "The Bank That Didn't Close" during the Great Depression.

Arthur H. Keeney, III, President and Chief Executive Officer of ECB, said: “Over the years, ECB has worked hard to retain the personal touch of traditional community banking. Hurricane Isabel clearly put us to the test. As Hurricane Isabel approached, we moved everyone from our headquarters to our new Operations Center where we remained dry and in business. On the Monday following Hurricane Isabel, all of The East Carolina Bank’s 20 offices were open and serving customers, including offices in Avon, Hatteras and Ocracoke, NC. In Engelhard, where two of our three office buildings were flooded, we opened a temporary branch in the lobby of our Operations Center."

"Although many parts of our community are still without electricity, our backup generators have been supplying power to our branches and our Operations Center, allowing ECB to provide banking services to our customers to help them deal with the aftermath of the storm. Cleaning up after Hurricane Isabel is going to be a major and costly task for many of the residents in our communities and ECB will be there to help our neighbors in need. In response to the many needs, we are handling donations for the Hyde County Relief Fund to help residents who were hit hard by the storm,” stated President Keeney.

Headquartered in Engelhard, NC, ECB Bancorp, Inc. is a bank holding company, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank's licensed agents and investment and brokerage services offered through a third-party broker-dealer. ECB's common stock is listed on The NASDAQ SmallCap Market under the symbol "ECBE". More information can be obtained by visiting ECB's web site at www.ecbbancorp.com.

 

ECB BANCORP, INC. REPORTS DECLARATION OF
QUARTERLY CASH DIVIDEND

September 16, 2003

ENGELHARD, NORTH CAROLINA-ECB Bancorp, Inc. ("ECB"), the parent holding company of The East Carolina Bank, announces that on September 16, 2003, ECB's Board of Directors declared a quarterly cash dividend of $.125 per share, payable October 13, 2003 to shareholders of record on September 29, 2003.

On an annualized basis the Company's 2003 dividend of $.50 per share represents a 25% increase over the annual dividend in 2002 of $.40 per share.

Headquartered in Engelhard, NC, ECB Bancorp, Inc. is a bank holding company, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank’s licensed agents and investment and brokerage services offered through a third-party broker-dealer. ECB’s common stock is listed on The NASDAQ SmallCap Market under the symbol “ECBE”. More information can be obtained by visiting ECB’s web site at www.ecbbancorp.com.

 

ECB BANCORP, INC. Reports 2nd Quarter and Six Months Earnings

July 16, 2003

ECB Bancorp, Inc. (“ECB”) today reported earnings for the quarter ended June 30, 2003 and for the six months ended June 30, 2003.

For the three months ended June 30, 2003, ECB reported net income of $1,010,000, an increase of 33.2% over net income of $758,000 for the quarter ended June 30, 2002. Earnings per share (diluted) were $.49 for the quarter ended June 30, 2003, a 32.4% increase over $.37 for the quarter ended June 30, 2002.

Net income for the six months ended June 30, 2003 was $2,017,000, which represents a 42.2% increase over net income of $1,418,000 for the six months ended June 30, 2002. Earnings per share (diluted) were $.99 for the six-month period ended June 30, 2003, a 43.5% increase compared to $.69 for the six months ended June 30, 2002.

“Even though the national economy and our State’s economy have slowed over the past year, ECB continues to grow and reflect a financially sound condition”, commented Arthur H. Keeney, III, President and CEO. “Deposit and loan growth continued throughout the second quarter while our asset quality also remained in fine condition.”

“Non-interest income, net of securities gains, for the six months ended June 30, 2003 increased 32.3% over the same six month period in 2002 reflecting the acceptance of a variety of fee-based services which have been introduced to both our retail and small business customers over the past several years. Our loan production offices in both Morehead City and Wilmington are off to a good start and our newest branch in Williamston opened in May to a warm reception from the community.”

ECB’s consolidated assets increased 25.7% to $414,392,000 at June 30, 2003 from $329,572,000 at June 30, 2002. Loans totaled $256,818,000 at June 30, 2003, which represents a 24.7% increase over loans of $206,018,000 at June 30, 2002. Deposits increased 18.3% to $327,386,000 at June 30, 2003 from $276,638,000 at June 30, 2002. The Company’s annualized return on average assets and annualized return on average equity were 1.02% and 13.46%, respectively, for the six months ended June 30, 2003 compared to .91% and 10.81%, respectively, for the six months ended June 30, 2002.

Headquartered in Engelhard, NC, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank’s licensed agents and investment and brokerage services offered through a third-party broker-dealer. ECB’s common stock is listed on The NASDAQ SmallCap Market under the symbol “ECBE”. More information can be obtained by visiting ECB’s web site at www.ecbbancorp.com.

Forward-Looking Statement – This discussion may contain statements that could be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other statements concerning opinions or judgement of ECB and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of ECB’s customers, actions of government regulators, the level of market interest rates, and general economic conditions.

 

ECB holds RIBBON CUTTING and GRAND OPENING CELEBRATION for WILLIAMSTON BRANCH

June 18, 2003

WILLIAMSTON, NORTH CAROLINA-The East Carolina Bank (ECB) recently held a Ribbon Cutting and Grand Opening Celebration for its newest branch office in Williamston, located at 403 East Boulevard.

Bank personnel and directors, along with town officials and guests, attended the ribbon cutting. Assisting in the ribbon cutting were Mayor Tommy Roberson; Commissioner Tommy Bowen; Clerk of Court - Phyllis Pearson; Marsha Anderson - Martin County Department of Aging; Linda Bryant - Martin County Chamber of Commerce; Kennis Wilkins - Insurance Agency and Bank personnel: R.S. Spencer, Jr.-ECB Chairman; Arthur H. Keeney, III, President & CEO; J. Dorson White, Jr.-ECB Executive Vice President & COO; John B. Spilman, III-ECB City Executive for Williamston and his staff - Valerie Moore, Fran Bonds, Debbie Herring and Crystal Barber.

As a display of ECB's commitment to the communities it serves, a $500.00 "money ribbon" was cut-the proceeds of which were donated to the Martin County Department of Aging. Accepting ECB’s donation on behalf of the Department of Aging was Ms. Marsha Anderson, who stated, "We are very grateful to ECB for their contribution to us and the community". Additionally, refreshments were served to the guests with a drawing for a trip for two to the Bahamas scheduled later this month.

J. Dorson White, Jr., ECB's Chief Operating Officer, commented "We are proud to be a part of the town of Williamston. Last year, we opened a Loan Production Office here to answer the call for a different style of Community Banking in Martin County: one that was customer-focused and convenience-oriented, that would bring added value to the citizens of this area, and would underscore the phrase 'Excellence in Community Banking'. With this new full service facility, we can now offer multiple banking options to the citizens of Martin County, including convenient traditional branch services as well as Investment and Insurance services."

The new office features approximately 3,600 square feet of service area, and includes seven offices, two drive-through lanes, a drive-up automated teller machine, and a night depository area. Operating hours are 8:30 am-5:00 pm Monday through Thursday, and 8:30 am-6:00 pm on Fridays. The branch is centrally located on East Boulevard next to the Chamber of Commerce. The ECB Williamston staff, under the leadership of John Spilman, may be reached at 809-0100.

Headquartered in Engelhard, NC, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank’s licensed agents and investment and brokerage services offered through a third-party broker-dealer. Its common stock is listed on The Nasdaq SmallCap Market under the symbol "ECBE". More information on ECB can be obtained by visiting the Company's web site at www.ecbbancorp.com.

 

ECB BANCORP, INC. REPORTS DECLARATION OF
QUARTERLY CASH DIVIDEND

June 18, 2003

ENGELHARD, NORTH CAROLINA-ECB Bancorp, Inc. ("ECB"), the parent holding company of The East Carolina Bank, announces that on June 18, 2003, ECB's Board of Directors declared a quarterly cash dividend of $.125 per share, payable July 14, 2003 to shareholders of record on June 30, 2003.

On an annualized basis the Company's 2003 dividend of $.50 per share represents a 25% increase over the annual dividend in 2002 of $.40 per share.

Headquartered in Engelhard, NC, 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 20 offices in eastern North Carolina, including new Loan Production Offices in Morehead City and Wilmington, mortgages, insurance services through the Bank's licensed agents and investment and brokerage services offered through a third-party broker-dealer. ECB's common stock is listed on The Nasdaq SmallCap Market under the symbol "ECBE". More information can be obtained by visiting ECB's web site at www.ecbbancorp.com.

 

ECB BANCORP, INC. Reports EXCEPTIONAL Year in 2002

February 20, 2003

ENGELHARD, NC - ECB BANCORP, INC. ("ECB") today reported earnings for the quarter ended December 31, 2002 and for the year ended December 31, 2002.

For the three months ended December 31, 2002, ECB reported net income of $1,045,000, a 32.6% increase over net income of $788,000 for the quarter ended December 31, 2001. Earnings per share (basic and diluted) were $.51 for the quarter ended December 31, 2002, a 34.2% increase over the $.38 for the quarter ended December 31, 2001.

Net income for the year ended December 31, 2002 was $3,488,000, which represents a 35.8% increase over net income of $2,569,000 for the year ended December 31, 2001. Earnings per share on a diluted basis were $1.69 for the year ended December 31, 2002, a 36.3% increase over the $1.24 for the year ended December 31, 2001.

ECB's consolidated assets increased 24.0% to $386,305,000 at December 31, 2002 from $311,496,000 at December 31, 2001. Loans totaled $227,883,000 at December 31, 2002, which represents a 20.5% increase over loans of $189,127,000 at December 31, 2001. Deposits increased 12.2% to $301,261,000 at December 31, 2002 from $268,467,000 at December 31, 2001. The Company's return on average assets and return on average equity were 1.05% and 12.77%, respectively, for the year ended December 31, 2002 compared to .90% and 10.26%, respectively, for the year ended December 31, 2001.

Arthur H. Keeney, III, President and CEO of the company said, "Our fine year is due in no small part to the continued growth in ECB's commercial loan portfolio and the related 15.8% growth in our net interest income over 2001. Additionally, excluding gains on security sales, our non-interest income grew 46.8% over last year. We continue to work hard to introduce quality products in order to enhance ECB's fee-based income capabilities."

The company completed a private issuance of $10 million in trust preferred securities in June 2002 as part of a pooled re-securitization transaction with several other financial institutions and intends to use the net proceeds for general corporate and strategic purposes. "Trust preferred securities are a low-cost, tax-advantaged form of Tier I regulatory capital that result in no ownership dilution to existing shareholders. The use of a pooled structure streamlines the offering process and minimizes issuance costs by spreading them among pool participants", stated Mr. Keeney.

ECB also expanded its branch network by opening a Loan Production Office in Williamston (Martin County) in early 2002. Construction on a full service branch is underway and is targeted to open in second quarter 2003. Recently, Loan Production Offices were also opened in Morehead City (Carteret County) and Wilmington (New Hanover County). Construction on full service branches in both locations is due to begin early in second quarter 2003.

In Engelhard, a new Operations and Credit Center is scheduled to be completed in mid-April 2003. Construction of a new Corporate Headquarters and branch in Engelhard will begin in mid-2003 with an expected completion date of mid-2004.

Headquartered in Engelhard, NC, 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 17 offices in eastern North Carolina, including insurance services through the Bank's licensed agents and investment and brokerage services offered through a third-party broker-dealer. Its common stock is listed on The NASDAQ's SmallCap Market under the symbol "ECBE". More information on ECB can be obtained by visiting the company's web site at www.ecbbancorp.com.

Forward-Looking Statement - This discussion may contain statements that could be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," anticipate," or other statements concerning opinions or judgement of ECB and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of ECB's customers, actions of government regulators, the level of market interest rates, and general economic conditions.

 

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