ECB Makes Substantial Donation to Graveyard of the Atlantic Museum.

Business Editors

WASHINGTON, N.C.--(BUSINESS WIRE)--April 18, 2001

The East Carolina Bank ("ECB")(NASDAQ: ECBE) contributed $75,000 today to the Graveyard of the Atlantic Museum's capital campaign during the 3rd Annual Meeting of ECB Bancorp, Inc. ("Bancorp").

The donation, presented on behalf of the bank by its President and CEO, Arthur H. Keeney, III, was announced during the Bancorp's Annual Meeting held at the Washington Civic Center on April 18. Accepting ECB's donation were Belinda Pla-Willis, Chairperson of the Board and Joseph Karl Schwarzer, Executive Director of the Graveyard of the Atlantic Museum. Located in Hatteras, N.C., the museum will be the world's only facility devoted solely to the preservation, advancement, and presentation of the maritime history and shipwrecks of North Carolina's Outer Banks. ECB's donation is earmarked for the Civil War Room of the Museum.

Keeney presided over the Annual Meeting, which updated shareholders on significant events during the Year 2000, including record setting financial results. Keeney commented, "Significant investments in both technology, product improvements and new facilities were made this past year to improve not only our service and operating capabilities but also to enhance our product offerings for our customers."

Highlighted were the introduction of check imaging; the roll-out of ECB BEST Business Solutions - a relationship package of banking needs for small business customers; the formation of ECB Insurance Services; and the launching of www.ecbbancorp.com and ECB Online - a multifunctional Internet banking product that allows customers to access their accounts, transfer funds, view check images, and pay their bills online. ECB Online also offers up-to-date stock information, news, weather, sports, shopping and entertainment.

R.S. Spencer, Jr., Bancorp's Chairman remarked, "ECB achieved significant results in the Year 2000 - not only in financial terms, but also in terms of the advancements in technology that will propel ECB solidly into the 21st century. Additionally, shareholder value as well as customer value increased significantly, as ECB introduced its unique style of Community Banking in two new markets - New Bern (Craven County) and Hertford (Perquimans County)."

On the Annual Meeting's agenda was the re-election of three existing Bancorp Directors for new three year terms, including Arthur H. Keeney, III of Engelhard, Joseph T. Lamb, Jr. of Kitty Hawk, and Ray M. Spencer of Swan Quarter. The shareholders also ratified the reappointment of KPMG LLP as the Bancorp's independent public accountants for 2001.

William F. Plyler, II, ECB Senior Vice President and Chief Credit Officer, commented on the excellent quality and growth of the bank's loan portfolio. "Hefty benchmarks for success were achieved while still keeping the primary focus on the varied credit needs of the citizens and businesses in our market areas," said Plyler. "Not only is the bank's portfolio in fine shape but we are reserved at a level significantly above our peer group."

In Keeney's remarks, he reported that for the three months ended March 31, 2001, net income was $460,000, which represents a 10.9% decrease from net income of $516,000 for the three months ended March 31, 2000. Earnings per share (basic and diluted) were $.22 for the three months ended March 31, 2001 and compared to $.24 for the three months ended March 31, 2000.

"We are in great shape with historically our biggest earnings quarters in front of us," commented Keeney. "You will recall we opened two new branches in the second half of 2000 while continuing to position the bank to function well in a high-tech financial services world. You will also recall that the Federal Reserve reduced rates 150 basis points in the first quarter in an effort to assist the national economy. With ECB's modest asset sensitivity, these reductions squeezed our net interest margin such that the bank's net interest income grew only 3.1% for the three months ended March 31, 2001. As deposits begin to reprice throughout the coming months to reflect the lower rate environment, ECB's net interest margin will improve."

Bancorp's consolidated assets increased 11.8% to $271,022,000 at March 31, 2001 from $242,485,000 at March 31, 2000. Loans totaled $180,370,000 at March 31, 2001 which represents a 17.2% increase over loans of $153,870,000 at March 31, 2000. Deposits increased 12.9% to $241,111,000 at March 31, 2001 from $213,507,000 at March 31, 2000.

Keeney closed the meeting by acknowledging and thanking the Directors, the Management Team, the employees, and the shareholders for their support in 2000 and for their enthusiasm for continued success in 2001.

Headquartered in Engelhard, North Carolina, ECB Bancorp, Inc. is the parent holding company of The East Carolina Bank, a state-chartered, independent, community bank providing a full range of financial services through 17 offices in eastern North Carolina.

ECB Bancorp, Inc.'s common stock is listed on NASDAQ's SmallCap Market under the symbol "ECBE".