ECB Bancorp, Inc.
(“ECB”), the holding company for the East Carolina Bank, announced that the East Carolina Bank has entered into a definitive agreement with Bank of Hampton Roads and Shore Bank, the wholly-owned subsidiary of Hampton Roads Bankshares, Inc.
(the “Company”). Under the Agreement, the East Carolina Bank will purchase all deposits and selected assets associated with seven Gateway Bank branches in North Carolina: Preston Corners, Plymouth, Roper, Chapel Hill, Falls of Neuse, Lake Boone and Wilmington. As of June 30, 2011, deposits in these branches totaled $195 million. Under the terms of the agreement, Bank of Hampton Roads expects to close the Roper branch and consolidate its accounts into the Plymouth branch prior to the completion of this sale.
A. Dwight Utz, President and Chief Executive Officer of ECB, said, “We are delighted to have the opportunity to capitalize on strategic opportunities such as the purchase of these branches, which significantly expands the geographic footprint of ECB. We believe the Raleigh, Chapel Hill and Plymouth markets will provide strong support for continued organic growth within North Carolina. We are looking forward to serving the customers and communities in these new branch markets.”
John A.B. “Andy” Davies, Jr., the Company’s President and Chief Executive Officer, said, “With the agreement to sell these branches, we continue to make good progress on our plan to improve our operating efficiency and profitability by focusing on our strong community banking franchise in our core markets.”
The sale is expected to be completed in the fourth quarter of 2011, subject to regulatory approval and customary closing conditions. The terms of the transaction were not disclosed.
ECB Bancorp, Inc. was advised by Janney Montgomery Scott LLC. Hampton Roads Bankshares, Inc. was advised by Sandler O’Neill & Partners, L.P. on this transaction.