8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 20, 2010

ECB BANCORP, INC.

(Exact name of registrant as specified in its charter)

North Carolina	000-24753	56-2090738
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Post Office Box 337 Engelhard, North Carolina	27824
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (252) 925-9411

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On July 20, 2010, we announced our results of operations for the three and six months ended June 30, 2010. A copy of our press release is being furnished as Exhibit 99.1 to this Report.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is furnished with this Report:

Exhibit No.	Exhibit Description
99.1	Copy of our press release dated July 20, 2010

Disclosures About Forward-Looking Statements

Statements in this Report and its exhibits relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, expectations or beliefs about future events or results, and other statements that are not descriptions of historical facts, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in our Annual Report on Form 10-K and in other documents we file with the Securities and Exchange Commission from time to time. Copies of those reports are available through our Internet website at www.myecb.com or directly through the Commission’s website at www.sec.gov. Forward-looking statements in this Report may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “feels,” “believes,” “estimates,” “predicts,” “forecasts,” “potential” or “continue,” or similar terms or the negative of these terms, or other statements concerning opinions or judgments of our management about future events. Factors that could influence the accuracy of those forward-looking statements include, but are not limited to, (a) pressures on our earnings, capital and liquidity resulting from current and future conditions in the credit and equity markets, (b) continued or unexpected increases in credit losses in our loan portfolio, (c) continued adverse conditions in the economy and in the real estate market in our banking markets (particularly those conditions that affect our loan portfolio, the abilities of our borrowers to repay their loans, and the values of collateral that secures our loans), (d) the financial success or changing strategies of our customers, (e) actions of government regulators, or changes in laws, regulations or accounting standards, that adversely affect our business, (f) changes in the interest rate environment and the level of market interest rates that reduce our net interest margins and/or the values of loans we make and securities we hold, (g) changes in competitive pressures among depository and other financial institutions or in our ability to compete effectively against other financial institutions in our banking markets; (h) weather and similar conditions, particularly the effect of hurricanes on our banking and operations facilities and on our customers and the communities in which we do business; and (i) other developments or changes in our business that we do not expect. Although we believe that the expectations reflected in the forward-looking statements in this Report are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All forward-looking statements attributable to us are expressly qualified in their entirety by the cautionary statements in this paragraph. We have no obligation, and we do not intend, to update these forward-looking statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, we have duly caused this Report to be signed on our behalf by the undersigned hereunto duly authorized.

	ECB BANCORP, INC.         (Registrant)
Date: July 21, 2010	By:	/s/ Thomas M. Crowder
		Thomas M. Crowder        Chief Financial Officer

EX-99.1

Exhibit 99.1

July 20, 2010

CONTACT: ECB Bancorp, Inc.

Thomas M. Crowder, Chief Financial Officer

(252) 925-5520

(252) 925-8491 facsimile

FOR IMMEDIATE RELEASE

ECB Bancorp, Inc. Reports 2010 Second Quarter Results

ENGELHARD, N.C.-ECB Bancorp, Inc. (NASDAQ:ECBE) (“ECB” or the “Company”) today announced its results for the three and six months ended June 30, 2010.

2010 Second Quarter Financial Highlights

For the three months ended June 30, 2010, net income totaled $957,000 a 19.6% increase from the $800,000 in net income for the three months ended June 30, 2009. After adjusting for $265,000 in preferred stock dividends and the accretion of warrant discount, net income available to common shareholders for the three months ended June 30, 2010 was $692,000 or $0.24 per diluted share, an increase of 30.1% compared to $532,000 or $0.19 per diluted share for the three months ended June 30, 2009.

For the six months ended June 30, 2010, net income was $1,444,000, which compares to net income for the six months ended June 30, 2009 of $2,053,000. After adjusting for $530,000 in preferred stock dividends and accretion of warrant discount, net income available to common shareholders for the six months ended June 30, 2010 was $914,000 or $0.32 per diluted share compared to $0.55 per diluted share for the prior year period.

Other Financial Highlights include:

• Consolidated assets increased 5.1% to $921,840,000 at June 30, 2010 from $877,465,000 at June 30, 2009.

• Loans increased 0.6% to $570,174,000 at June 30, 2010 compared to $566,601,000 at June 30, 2009.

• Deposits increased 12.6% to $792,454,000 at June 30, 2010 from $703,467,000 at June 30, 2009.

• Net interest income increased 5.8 % to $7,033,000 for the three months ended June 30, 2010 from $6,642,000 for the same three-month period a year ago. For the six months ended June 30, 2010, net interest income increased 10.9% to $14,028,000 compared to $12,654,000 for the first six months of 2009.

• Non-interest income for the three months ended June 30, 2010 was $1,866,000, an increase of 5.8% compared to $1,763,000 for the same three month period a year ago. For the six months ended June 30, 2010, non-interest income increased 22.6% to $4,534,000 compared to $3,699,000 for the same period in 2009.

• Provision for loan losses charged to operations for the three months ended June 30, 2010 totaled $1,780,000, a decrease of 40.7% compared to $3,000,000 charged to operations for the first quarter ended March 31, 2010.

• During the second quarter of 2010, the Company declared a common stock dividend of $0.07 per share, or $0.28 per share on an annualized basis which was unchanged from the $0.07 dividend paid in the first quarter of 2010.

A. Dwight Utz, President and Chief Executive Officer, stated: “The banking industry as a whole has experienced unprecedented credit weakness over the past 18 months. Although we believe ECB has faired better than many other banks during these difficult times, we have not been immune to increased credit losses. However, while we believe economic recovery will be a slow process and that credit losses will be higher than normal for some time to come, we see signs giving us hope that we are beginning to see a bottom to our credit weakness. Additionally, many of our customers have indicated that they are seeing an increase in tourism, which is a major economic driver for our coastal communities. A continuation of these positive signs in the economy of our local banking markets and in our loan portfolio during the coming quarters would help in ECB’s efforts to return to more normalized earnings and to restore stockholder value.”

Thomas M. Crowder, Executive Vice President and Chief Financial Officer stated, “You will see in our financials that we are beginning to return to earnings driven by our core banking operations. If we continue to see our credits stabilize and we are able to maintain our strong net interest income, then we anticipate that our core earnings will grow.”

Mr. Utz concluded, “The second quarter saw ECB Bancorp continuing to grow its assets and absorb continued losses due to the weak economic environment, while beginning to return to core profitability. The past year has been challenging for all banks. We hope that we are moving past those challenging times and that the rest of 2010 will find the East Carolina Bank continuing to grow in size and moving toward our goal of consistent profitability.”

- More -

About ECB Bancorp, Inc.

ECB Bancorp, Inc. is a bank holding company, headquartered in Engelhard, North Carolina, whose wholly-owned subsidiary, The East Carolina Bank, is a state-chartered, independent community bank insured by the FDIC. The Bank provides a full range of financial services through its 24 offices covering eastern North Carolina from Currituck to Ocean Isle Beach and Greenville to Hatteras. The Bank also provides mortgages, insurance services through the Bank’s licensed agents, and investment and brokerage services offered through a third-party broker-dealer. The Company’s common stock is listed on The Nasdaq Global Market under the symbol “ECBE”. More information can be obtained by visiting ECB’s web site at www.ecbbancorp.com.

“Safe Harbor Statement” Under the Private Securities Litigation Reform Act of 1995

Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, expectations or beliefs about future events or results, and other statements that are not descriptions of historical facts, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company’s Annual Report on Form 10-K and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “feels”, “believes”, “estimates”, “predicts”, “forecasts”, “potential” or “continue”, or similar terms or the negative of these terms, or other statements concerning opinions or judgments of the Company’s management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, pressures on the Company’s earnings, capital and liquidity resulting from current and future conditions in the credit and equity markets, the financial success or changing strategies of the Company’s customers, actions of government regulators, the level of market interest rates, weather and similar conditions, particularly the effect of hurricanes on the Company’s banking and operations facilities and on the Company’s customers and the communities in which it does business, continued or unexpected increases in credit losses in the Company’s loan portfolio, continued adverse conditions in general economic conditions and the real estate values in our banking market (particularly as those conditions affect our loan portfolio, the abilities of our borrowers to repay their loans, and the values of loan collateral). Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by the cautionary statements in this paragraph. The Company has no obligation, and does not intend to, update these forward-looking statements.

###

See 3 pages of financial information attached

ECB BANCORP, INC. AND SUBSIDIARY

Consolidated Balance Sheets

June 30, 2010, December 31, 2009 and June 30, 2009

(Dollars in thousands, except per share data)

	June 30, 2010			December 31, 2009*			June 30, 2009
	(unaudited)						(unaudited)
Assets
Non-interest bearing deposits and cash	$	12,075		$	9,076		$	13,688
Interest bearing deposits		867			870			895
Overnight investments		16,605			7,865			10,645
Total cash and cash equivalents		29,547			17,811			25,228
Investment securities
Available-for-sale, at market value (cost of $263,225, $237,594 and $231,683 at June 30, 2010, December 31, 2009 and June 30, 2009, respectively)		268,064			239,332			232,521
Loans held for sale		1,584			—			—
Loans		570,174			577,791			566,601
Allowance for loan losses		(10,462	)		(9,725	)		(5,787	)
Loans, net		559,712			568,066			560,814
Real estate and repossessions acquired in settlement of loans, net		4,644			5,443			7,200
Federal Home Loan Bank common stock, at cost		5,116			5,116			5,116
Bank premises and equipment, net		25,294			25,329			25,340
Accrued interest receivable		4,647			4,967			4,577
Bank owned life insurance		8,805			8,657			8,511
Other assets		14,427			13,999			8,158
Total	$	921,840		$	888,720		$	877,465
Liabilities and Shareholders’ Equity
Deposits
Demand, noninterest bearing	$	106,033		$	93,492		$	96,023
Demand, interest bearing		205,263			141,956			115,738
Savings		22,017			19,595			18,341
Time		459,141			499,687			473,365
Total deposits		792,454			754,730			703,467
Accrued interest payable		1,017			1,121			1,646
Short-term borrowings		22,408			22,910			60,191
Long-term obligations		14,500			21,000			21,000
Other liabilities		4,543			4,584			5,369
Total liabilities		834,922			804,345			791,673
Shareholders’ equity
Preferred stock, Series A		17,205			17,122			17,041
Common stock, par value $3.50 per share		9,974			9,968			9,956
Capital surplus		25,836			25,803			25,746
Warrants		878			878			878
Retained earnings		30,069			29,555			31,676
Accumulated other comprehensive income		2,956			1,049			495
Total shareholders’ equity		86,918			84,375			85,792
Total	$	921,840		$	888,720		$	877,465
Common shares outstanding		2,849,841			2,847,881			2,844,489
Common shares authorized		10,000,000			10,000,000			10,000,000
Preferred shares outstanding		17,949			17,949			17,949
Preferred shares authorized		2,000,000			2,000,000			2,000,000

* Derived from audited consolidated financial statements.

ECB BANCORP, INC. AND SUBSIDIARY

Consolidated Income Statements

For the three and six months ended June 30, 2010 and 2009

(Dollars in thousands, except per share data)

	Three months ended June 30,					Six months ended June 30,
	2010		2009			2010		2009
	(unaudited)		(unaudited)			(unaudited)		(unaudited)
Interest income:
Interest and fees on loans	$	7,790	$	7,666		$	15,422	$	15,013
Interest on investment securities:
Interest exempt from federal income taxes		490		332			952		651
Taxable interest income		1,673		2,307			3,570		4,837
Dividend income		7		—			34		30
Other interest income		5		—			7		3
Total interest income		9,965		10,305			19,985		20,534
Interest expense:
Deposits:
Demand accounts		322		199			639		385
Savings		15		11			27		22
Time		2,412		3,173			4,901		6,768
Short-term borrowings		61		112			117		308
Long-term obligations		122		168			273		367
Other interest expense		—		—			—		30
Total interest expense		2,932		3,663			5,957		7,880
Net interest income		7,033		6,642			14,028		12,654
Provision for loan losses		1,780		2,000			4,780		2,750
Net interest income after provision for loan losses		5,253		4,642			9,248		9,904
Noninterest income:
Service charges on deposit accounts		893		916			1,716		1,792
Other service charges and fees		433		350			698		617
Mortgage origination brokerage fees		293		236			505		527
Net gain on sale of securities		152		183			1,441		588
Income from bank owned life insurance		75		82			149		164
Other operating income		20		(4	)		25		11
Total noninterest income		1,866		1,763			4,534		3,699
Noninterest expenses:
Salaries		2,326		2,005			4,645		4,074
Retirement and other employee benefits		712		702			1,442		1,453
Occupancy		447		449			904		929
Equipment		486		431			953		819
Professional fees		211		102			499		399
Supplies		68		55			120		111
Telephone		157		138			340		290
FDIC insurance		345		655			678		910
Other outside services		110		97			228		240
Net cost of real estate and repossessions acquired in settlement of loans		47		13			381		106
Other operating expenses		1,007		808			1,964		1,569
Total noninterest expenses		5,916		5,455			12,154		10,900
Income before income taxes		1,203		950			1,628		2,703
Income taxes		246		150			184		650
Net income		957		800			1,444		2,053
Preferred stock dividends		224		224			448		406
Accretion of discount		41		44			82		69
Income available to common shareholders		692		532			914		1,578
Net income per share - basic	$	0.24	$	0.19		$	0.32	$	0.55
Net income per share - diluted	$	0.24	$	0.19		$	0.32	$	0.55
Weighted average shares outstanding - basic		2,849,841		2,844,489			2,849,343		2,843,260
Weighted average shares outstanding - diluted		2,849,936		2,846,359			2,849,407		2,844,904

ECB Bancorp, Inc.

Supplemental Quarterly Financial Data (Unaudited)

(Dollars in thousands, except per share data)

	6/30/2010			3/31/2010			12/31/2009			9/30/2009			6/30/2009
Income Statement Data:
Interest income	$	9,965		$	10,020		$	10,051		$	10,320		$	10,305
Interest expense		2,932			3,025			3,033			3,244			3,663
Net interest income		7,033			6,995			7,018			7,076			6,642
Provision for loan losses		1,780			3,000			5,675			2,675			2,000
Net after provision expense		5,253			3,995			1,343			4,401			4,642
Noninterest income		1,866			2,668			3,024			1,926			1,763
Noninterest expense		5,916			6,238			6,117			6,135			5,455
Income (loss) before income taxes		1,203			425			(1,750	)		192			950
Income tax expense (benefit)		246			(62	)		(853	)		(154	)		150
Net income (loss)		957			487			(897	)		346			800
Preferred stock dividend & accretion of discount		265			265			265			263			268
Net income (loss) available to common shareholders	$	692		$	222		$	(1,162	)	$	83		$	532
Per Share Data and Shares Outstanding:
Net income - basic	$	0.24		$	0.08		$	(0.41	)	$	0.03		$	0.19
Net income - diluted		0.24			0.08			(0.41	)		0.03			0.19
Cash dividends		0.0700			0.0700			0.1825			0.1825			0.1825
Book value at period end		24.46			23.56			23.62			24.88			24.17
Dividend payout ratio		28.83	%		87.50	%		-44.51	%		608.33	%		96.05	%
Weighted-average number of common shares outstanding:
Basic		2,849,841			2,848,839			2,847,881			2,845,343			2,844,489
Diluted		2,849,936			2,848,969			2,847,881			2,847,053			2,846,359
Shares outstanding at period end		2,849,841			2,849,841			2,847,881			2,847,881			2,844,489
Balance Sheet Data:
Total assets	$	921,840		$	897,754		$	888,720		$	858,737		$	877,465
Loans - gross		570,174			577,964			577,791			573,837			566,601
Allowance for loan losses		10,462			11,329			9,725			7,800			5,787
Investment securities		268,064			197,520			239,332			218,591			232,521
Interest earning assets		862,410			841,344			830,974			800,015			815,778
Premises and equipment, net		25,294			25,114			25,329			25,400			25,340
Total deposits		792,454			772,927			754,730			696,633			703,467
Short-term borrowings		22,408			20,877			22,910			46,989			60,191
Long-term obligations		14,500			14,500			21,000			21,000			21,000
Shareholders’ equity		86,918			84,292			84,375			87,936			85,792
Selected Performance Ratios (annualized):
Return on average assets		0.43	%		0.22	%		-0.41	%		0.16	%		0.37	%
Return on average shareholders’ equity		4.48	%		2.28	%		-4.09	%		1.59	%		3.64	%
Net interest margin		3.52	%		3.55	%		3.56	%		3.58	%		3.37	%
Efficiency ratio		63.94	%		62.39	%		59.20	%		66.25	%		63.08	%
Asset Quality Ratios:
Nonperforming loans to period-end loans		3.37	%		3.19	%		2.54	%		2.18	%		1.83	%
Allowance for loan losses to period-end loans		1.83	%		1.96	%		1.68	%		1.36	%		1.02	%
Allowance for loan losses to nonperforming loans		54	%		61	%		66	%		62	%		56	%
Net charge-offs to average loans (annualized)		1.83	%		0.97	%		2.61	%		0.47	%		0.74	%
Capital Ratios:
Equity-to-assets ratio		9.43	%		9.39	%		9.49	%		10.24	%		9.78	%
Leverage Capital Ratio		9.26	%		9.26	%		9.59	%		9.81	%		9.76	%
Tier 1 Capital Ratio		12.75	%		12.69	%		12.77	%		13.16	%		13.20	%
Total Capital Ratio		14.00	%		13.95	%		14.02	%		14.37	%		14.09	%