ECB Bancorp is making offering

Published 1:04 am Wednesday, July 6, 2011

ECB Bancorp Inc., the parent company of East Carolina Bank, has entered into an agreement with certain institutional investors to issue $75 million in company common stock in a private-placement offering, subject to the receipt of shareholder and regulatory approval.

In connection with the transaction, the company will issue $75 million in common stock to investors at a price of $16 per share. The company anticipates that, upon consummation of the transaction, the proceeds of the offering will be used to support the company’s future operational growth, to redeem the company’s $17.8 million of preferred stock (subject to regulatory approval) and associated warrants previously issued pursuant to the TARP Capital Purchase Program, to further enhance the capital of East Carolina Bank and for other general corporate purposes.

“We are pleased to announce the $75 million common-stock offering, which we believe will be beneficial to our shareholders and will enhance our strategic opportunities to grow and diversify our geographic footprint, including organic growth, de novo market expansion and potential future acquisitions,” said A. Dwight Utz, president and CEO of ECB Bancorp Inc., in a news release. “The Board of Directors and management of the company are also pleased to align ourselves with the investors in the offering. Patriot Financial Partners, L.P. and Endicott Management Company, along with the other investors in the transaction, are experienced investors who will bring additional expertise and focus to our company.”

For more information about this offering, visit the bank’s website at or call 1-800-849-2265.