Gateway Bank & Trust Reaches Important Milestone; Reports First Profitable Quarter

Apr 16, 2001, 01:00 ET from Gateway Bank & Trust Co.

    ELIZABETH CITY, N.C., April 16 /PRNewswire/ --
     Gateway Bank & Trust Co. (OTC Bulletin Board:   GBTS) reported today that
 for the quarter ended March 31, 2001, the Bank had net income of $130,000, or
 $0.08 per share, the Bank's first profitable quarter since it commenced
 business in December of 1998.  The 2001 quarterly earnings compared to a
 quarterly loss of $308,000 or $0.20 for the fourth quarter of 2000.  For the
 2000 first quarter, the Bank lost $188,000 or $0.17 per share.
     D. Ben Berry, President and Chief Executive Officer commented, "Reporting
 our first quarterly profit marks an important milestone in Gateway's short 28
 month history.  We believe that our results reflect the tremendous effort and
 commitment of our officers, directors and staff.  We are especially gratified
 to have achieved this result while continuing to invest in the expansion of
 our bank and the products and services that we offer."
 
     Significant milestones achieved so far this year include:
 
     * The acquisition of Fidelity Insurance in January, 2001, which adds
       significant sources of fee-based revenue to the Bank and complements its
       earlier acquisition of Dowd & Twiddy insurance group;
 
     * Exceeding $120 million of total assets, finishing the quarter with total
       assets of $123.7 million;
 
     * Receiving approval from the Board of Governors of the Federal Reserve
       System for membership in the Federal Reserve System; and
 
     * Receiving Federal Reserve approval to form a financial holding company,
       subject to shareholder approval.
 
     For the quarter ended March 31, 2001, the Bank had net interest income of
 $954,000, compared to net interest income of $465,000 for the comparable
 period of 2000, an increase of 105%.  In addition, for the quarter ended March
 31, 2001, the Bank recognized a provision for loan losses of $140,000,
 bringing the total allowance for loan losses to $1.2 million.
     For the quarter ended March 31, 2001, non-interest income increased by 81%
 to $620,000 compared to $342,000 reported in the year ago period.  For the
 quarter, non-interest income represented 22% of total revenue.  Non-interest
 expense totaled $1.3 million as compared to $901,000 in the year ago quarter.
 The increase reflects added personnel and other expenses associated with the
 addition of three branches since March 2000 as well the acquisition of
 Fidelity Insurance in January 2001.
     At March 31, 2001, the Bank had total assets of $123.7 million compared to
 total assets of $72.5 million at March 31, 2000 and $110.7 million at December
 31, 2000.  The Bank's total net loans grew from $43.2 million at March 31,
 2000 to $86.7 million at March 31, 2001, an increase of over 100%.  Total net
 loans increased over 15% since year-end December 31, 2000.
     Total deposits increased to $98.9 million at March 31, 2001, from $60.0
 million a year ago.  The Bank's shareholders' equity increased to $13.7
 million from $8.9 million, reflecting in part the successful raising of $4.9
 million of additional capital in the third quarter of 2000.
     Mr. Berry stated, "We are optimistic about the Bank's performance in 2001.
 We anticipate making continued investments in expanding our branch system and
 lending capabilities in 2001 and beyond.  Despite the costs associated with
 these franchise enhancements, we believe our continued expansion is the best
 way to improve shareholder value."
     Gateway Bank & Trust is a full service community bank with offices in
 Elizabeth City, Plymouth, and Roper, North Carolina and one branch in Virginia
 Beach, Virginia.  The Bank also provides insurance through Gateway/Dowd &
 Twiddy Insurance Services, Inc. and brokerage services through Gateway
 Investment Services, Inc.  The common stock of the Bank is traded over the
 counter under the symbol GBTS.
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements, as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Amounts herein could vary as a
 result of market and other factors.  Such forward-looking statements are
 subject to risks and uncertainties which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Bank with the Federal Deposit Insurance Corporation from time to time.  Such
 forward-looking statements may be identified by the use of such words as
 "believe," "expect," "anticipate," "should," "planned," "estimated," and
 "potential".  Examples of forward-looking statements include, but are not
 limited to, estimates with respect to the financial condition, expected or
 anticipated revenue, results of operations and business of the Bank that are
 subject to various factors which could cause actual results to differ
 materially from these estimates.  These factors include, but are not limited
 to, general economic conditions, changes in interest rates, deposit flows,
 loan demand, real estate values, and competition; changes in accounting
 principles, policies, or guidelines; changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory, and technological
 factors affecting the Bank's operations, pricing, products and services.
 
     Gateway Bank & Trust Co.
     Consolidated Condensed Balance Sheets (unaudited)
 
                                                           March 31,
                                                     2001             2000
     Assets                                     (Dollars in thousands)
     Cash and cash
      equivalents:
       Cash and due from banks                    $  1,993          $  626
       Interest-earning deposits with banks          3,943           7,533
         Total cash and cash equivalents             5,936           8,159
 
     Investment securities
      available for sale, at fair value             22,337          14,103
 
     Loans receivable                               87,893          43,826
     Allowance for loan losses                       1,172             647
         Net loans receivable                       86,721          43,179
 
     Bank premises & equipment, net                  3,932           3,463
     Accured interest receivable                       835             504
     Stock in Federal Reserve Bank                     467              --
     Stock in Federal Home Loan Bank                   425             150
     Goodwill                                        2,530           2,049
     Other assets                                      509             856
         Total assets                             $123,692         $72,463
 
     Liabilities and
      Shareholders' Equity
     Deposits:
       Demand deposits                            $  8,167         $ 5,823
       Savings                                       2,166           2,863
       Money market & NOW                           15,344          10,347
       Time deposits over $100,000                  39,663          13,912
       Other time deposits                          33,540          27,097
         Total deposits                             98,880          60,042
 
     Federal Home Loan Bank Advances                 8,500           3,000
     Federal funds purchased                         2,001              --
     Accrued interest payable and other liabilities    658             478
         Total liabilities                         110,039          63,520
 
     Shareholders' Equity
       Common stock, $5 par, 6,000,000 authorized
       1,621,792 and 1,106,195 issued and
       outstanding at March 31, 2001 and
       March 31, 2000                                8,109           5,531
      Paid-in capital                                7,470           5,154
      Retained earnings                             (2,346)         (1,592)
      Accumulated other comprehensive income (loss)    420            (150)
       Total shareholders' equity                   13,653           8,943
 
         Total liabilities and shareholders'
          equity                                  $123,692         $72,463
 
 
 
           Gateway Bank & Trust Co.
           Consolidated Condensed Statement of Operations
 
                                                          Three Months Ended
                                                                March 31,
                                                               (Unaudited)
                                                       2001               2000
                                  (Dollars in thousands, except per share data)
 
           Interest Income                            2,249                996
           Interest Expense                           1,295                531
 
           Net Interest Income                          954                465
           Provision for loan losses                    140                 94
 
           Net Int Income After Provision               814                371
 
           Noninterest Income                           620                342
           Noninterest Expense                        1,304                901
           Income Before Income taxes                   130               (188)
           Income taxes                                  --                 --
           Net Income                                   130               (188)
 
            Per Common Share:
               Net income (loss)                     $ 0.08            $ (0.17)
 
           Weighted average shares
            outstanding (in thousands):
                                                      1,622              1,106
           Selected Financial Data
           Market value per share                    $ 9.00             $11.50
 
           Book value per share                      $ 8.42             $ 8.08
 
 

SOURCE Gateway Bank & Trust Co.
    ELIZABETH CITY, N.C., April 16 /PRNewswire/ --
     Gateway Bank & Trust Co. (OTC Bulletin Board:   GBTS) reported today that
 for the quarter ended March 31, 2001, the Bank had net income of $130,000, or
 $0.08 per share, the Bank's first profitable quarter since it commenced
 business in December of 1998.  The 2001 quarterly earnings compared to a
 quarterly loss of $308,000 or $0.20 for the fourth quarter of 2000.  For the
 2000 first quarter, the Bank lost $188,000 or $0.17 per share.
     D. Ben Berry, President and Chief Executive Officer commented, "Reporting
 our first quarterly profit marks an important milestone in Gateway's short 28
 month history.  We believe that our results reflect the tremendous effort and
 commitment of our officers, directors and staff.  We are especially gratified
 to have achieved this result while continuing to invest in the expansion of
 our bank and the products and services that we offer."
 
     Significant milestones achieved so far this year include:
 
     * The acquisition of Fidelity Insurance in January, 2001, which adds
       significant sources of fee-based revenue to the Bank and complements its
       earlier acquisition of Dowd & Twiddy insurance group;
 
     * Exceeding $120 million of total assets, finishing the quarter with total
       assets of $123.7 million;
 
     * Receiving approval from the Board of Governors of the Federal Reserve
       System for membership in the Federal Reserve System; and
 
     * Receiving Federal Reserve approval to form a financial holding company,
       subject to shareholder approval.
 
     For the quarter ended March 31, 2001, the Bank had net interest income of
 $954,000, compared to net interest income of $465,000 for the comparable
 period of 2000, an increase of 105%.  In addition, for the quarter ended March
 31, 2001, the Bank recognized a provision for loan losses of $140,000,
 bringing the total allowance for loan losses to $1.2 million.
     For the quarter ended March 31, 2001, non-interest income increased by 81%
 to $620,000 compared to $342,000 reported in the year ago period.  For the
 quarter, non-interest income represented 22% of total revenue.  Non-interest
 expense totaled $1.3 million as compared to $901,000 in the year ago quarter.
 The increase reflects added personnel and other expenses associated with the
 addition of three branches since March 2000 as well the acquisition of
 Fidelity Insurance in January 2001.
     At March 31, 2001, the Bank had total assets of $123.7 million compared to
 total assets of $72.5 million at March 31, 2000 and $110.7 million at December
 31, 2000.  The Bank's total net loans grew from $43.2 million at March 31,
 2000 to $86.7 million at March 31, 2001, an increase of over 100%.  Total net
 loans increased over 15% since year-end December 31, 2000.
     Total deposits increased to $98.9 million at March 31, 2001, from $60.0
 million a year ago.  The Bank's shareholders' equity increased to $13.7
 million from $8.9 million, reflecting in part the successful raising of $4.9
 million of additional capital in the third quarter of 2000.
     Mr. Berry stated, "We are optimistic about the Bank's performance in 2001.
 We anticipate making continued investments in expanding our branch system and
 lending capabilities in 2001 and beyond.  Despite the costs associated with
 these franchise enhancements, we believe our continued expansion is the best
 way to improve shareholder value."
     Gateway Bank & Trust is a full service community bank with offices in
 Elizabeth City, Plymouth, and Roper, North Carolina and one branch in Virginia
 Beach, Virginia.  The Bank also provides insurance through Gateway/Dowd &
 Twiddy Insurance Services, Inc. and brokerage services through Gateway
 Investment Services, Inc.  The common stock of the Bank is traded over the
 counter under the symbol GBTS.
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements, as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Amounts herein could vary as a
 result of market and other factors.  Such forward-looking statements are
 subject to risks and uncertainties which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Bank with the Federal Deposit Insurance Corporation from time to time.  Such
 forward-looking statements may be identified by the use of such words as
 "believe," "expect," "anticipate," "should," "planned," "estimated," and
 "potential".  Examples of forward-looking statements include, but are not
 limited to, estimates with respect to the financial condition, expected or
 anticipated revenue, results of operations and business of the Bank that are
 subject to various factors which could cause actual results to differ
 materially from these estimates.  These factors include, but are not limited
 to, general economic conditions, changes in interest rates, deposit flows,
 loan demand, real estate values, and competition; changes in accounting
 principles, policies, or guidelines; changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory, and technological
 factors affecting the Bank's operations, pricing, products and services.
 
     Gateway Bank & Trust Co.
     Consolidated Condensed Balance Sheets (unaudited)
 
                                                           March 31,
                                                     2001             2000
     Assets                                     (Dollars in thousands)
     Cash and cash
      equivalents:
       Cash and due from banks                    $  1,993          $  626
       Interest-earning deposits with banks          3,943           7,533
         Total cash and cash equivalents             5,936           8,159
 
     Investment securities
      available for sale, at fair value             22,337          14,103
 
     Loans receivable                               87,893          43,826
     Allowance for loan losses                       1,172             647
         Net loans receivable                       86,721          43,179
 
     Bank premises & equipment, net                  3,932           3,463
     Accured interest receivable                       835             504
     Stock in Federal Reserve Bank                     467              --
     Stock in Federal Home Loan Bank                   425             150
     Goodwill                                        2,530           2,049
     Other assets                                      509             856
         Total assets                             $123,692         $72,463
 
     Liabilities and
      Shareholders' Equity
     Deposits:
       Demand deposits                            $  8,167         $ 5,823
       Savings                                       2,166           2,863
       Money market & NOW                           15,344          10,347
       Time deposits over $100,000                  39,663          13,912
       Other time deposits                          33,540          27,097
         Total deposits                             98,880          60,042
 
     Federal Home Loan Bank Advances                 8,500           3,000
     Federal funds purchased                         2,001              --
     Accrued interest payable and other liabilities    658             478
         Total liabilities                         110,039          63,520
 
     Shareholders' Equity
       Common stock, $5 par, 6,000,000 authorized
       1,621,792 and 1,106,195 issued and
       outstanding at March 31, 2001 and
       March 31, 2000                                8,109           5,531
      Paid-in capital                                7,470           5,154
      Retained earnings                             (2,346)         (1,592)
      Accumulated other comprehensive income (loss)    420            (150)
       Total shareholders' equity                   13,653           8,943
 
         Total liabilities and shareholders'
          equity                                  $123,692         $72,463
 
 
 
           Gateway Bank & Trust Co.
           Consolidated Condensed Statement of Operations
 
                                                          Three Months Ended
                                                                March 31,
                                                               (Unaudited)
                                                       2001               2000
                                  (Dollars in thousands, except per share data)
 
           Interest Income                            2,249                996
           Interest Expense                           1,295                531
 
           Net Interest Income                          954                465
           Provision for loan losses                    140                 94
 
           Net Int Income After Provision               814                371
 
           Noninterest Income                           620                342
           Noninterest Expense                        1,304                901
           Income Before Income taxes                   130               (188)
           Income taxes                                  --                 --
           Net Income                                   130               (188)
 
            Per Common Share:
               Net income (loss)                     $ 0.08            $ (0.17)
 
           Weighted average shares
            outstanding (in thousands):
                                                      1,622              1,106
           Selected Financial Data
           Market value per share                    $ 9.00             $11.50
 
           Book value per share                      $ 8.42             $ 8.08
 
 SOURCE  Gateway Bank & Trust Co.