ECB Announces New Financial Services Department and Partnership With Capital Investment Companies

Business Wire, Nov 13, 2001

Business Editors

ENGELHARD, N.C.--(BUSINESS WIRE)--Nov. 13, 2001

The East Carolina Bank (NASDAQ SmallCap Market: ECBE) (ECB) announced today the formation of a new department, ECB Financial Services.

Through a partnership with Capital Investment Companies of Raleigh, North Carolina, ECB has created a total financial services offering and a new product delivery capability that will supplement its existing ECB Insurance Services.

ECB Financial Services will offer both individual and business customers a wide spectrum of financial services to compliment the Bank's full range of other banking products. Services to be offered will focus on professional money management, full service brokerage, no-load mutual fund management, self-directed IRAs, trust services, and financial planning. Additional financial products will be added to this mix in the near future.

"With the addition of ECB Financial Services, The East Carolina Bank can now meet virtually all of its customers' banking and financial needs under one umbrella," Arthur H. Keeney, III, ECB President and Chief Executive Officer, commented. "This is an extremely solid way for our organization to continue to meet today's competitive challenges. We are very pleased with our association with Capital Investment Companies and the high level of service they will provide, which is consistent with our service ethic."

Keeney further comments, "Our decision was not entered into lightly. We thoughtfully searched and considered many choices before forming a partnership with Capital Investment Companies, a team of solid investment professionals representing an organization that understood our long-range plans and was a perfect fit for our style of Community Banking."

Capital Investment Companies (www.capital-invest.com) is one of the largest independent financial services and brokerage firms in the southeastern US. Headquartered in Raleigh, NC, Capital offers a variety of financial services and has been selected by the North Carolina Bankers Association (NCBA) as the endorsed provider of investment services for banks in North Carolina.

This newest venture is consistent with ECB's strategic plan to continue to enhance its product and service offerings to meet all the needs of its customers. In that regard, within the last year, ECB has introduced check imaging, ECB BEST Business Solutions (a relationship package for small business customers including leasing and accounts receivable financing), ECB Insurance Services, opened two full service branches in new markets - New Bern and Hertford, has opened a permanent banking facility in Currituck, and has launched a website (www.ecbbancorp.com) along with a multi-functional Internet banking product - ECB Online - that offers a wide range of banking services.

To facilitate ECB's move into the financial services arena, Peter J. Wylie joins the ECB Financial Services team as Investment Officer. Wylie brings over ten years of strong investment expertise to the organization and will serve ECB Financial Services customers in Greenville, Washington, New Bern, and surrounding areas. A second member of the investment team will be announced in December with responsibilities for the Outer Banks and adjacent areas of that portion of ECB's market.

ECB Bancorp, Inc. is the parent company of The East Carolina Bank (ECB), a state-chartered community bank insured by the FDIC. ECB provides its full range of services through 17 branches throughout eastern NC. ECB Bancorp, Inc.'s common stock is listed on NASDAQ's SmallCap Market under the symbol "ECBE". For further information on ECB, visit the company's website at www.ecbbancorp.com.