ENGELHARD — ECB Bancorp, Inc. today reported its financial results for the three and nine months ended Sept. 30, 2012.
For the three months ended Sept. 30, 2012, net income totaled $1,649,000 compared to net income of $527,000 for the three months ended Sept. 30, 2011. After adjustments for $267,000 in TARP preferred stock dividends and the accretion of warrant discount, net income available to common shareholders for the three months ended Sept. 30, 2012 was $1,382,000 or $0.48 per diluted share compared to net income of $260,000 or $0.09 per diluted share for the three months ended Sept. 30, 2011. For the nine months ended Sept. 30, 2012 net income totaled $2,614,000 compared to $588,000 for the nine months ended Sept. 30, 2011. Income available to common shareholders was $1,817,000 or $0.64 per diluted share compared to a net loss of ($209,000) or ($0.07) per share for the nine months ended Sept. 30, 2011.
“As was announced in September, ECB Bancorp has executed a definitive agreement to merge with Crescent Financial Bancshares, Inc. We believe the combination of these two well-positioned banks will create a strong high performing bank in the North Carolina market,” said A. Dwight Utz, president and chief executive officer. “The transaction is expected to close in the first quarter of 2013 subject to receiving regulatory and shareholder approvals. With respect to ECB Bancorp earnings, the economy of our coastal markets in North Carolina has strengthened due to a good tourist season with many of our business clients reporting positive 2012 earnings to date.
“While some markets in our footprint are still experiencing some economic weakness, many appear to be stabilizing as 2012 progresses,” continued Utz. “As we have commented earlier this year, we see 2012 as transitional year for ECB Bancorp and our earnings are beginning to transition to a more normalized operating environment.”
Thomas M. Crowder, executive vice president and chief financial officer said, “We have increased our net interest margin through continued lower-funding cost in the third quarter and have increased our non-interest income, excluding security gains, by 29.5 percent in the third quarter compared to the same period in 2011. These operating improvements combined with lower-credit costs are supporting our earnings growth in 2012.”
Utz concluded, “As we enter the fourth quarter of 2012, we are focused on continuing to manage our operations in a profitable manner while looking forward to our future partnership with Crescent State Bank and eventually our new VantageSouth brand.”