VIRGINIA BEACH, Va., May 16 /PRNewswire-FirstCall/ -- Gateway Financial Holdings, Inc. , the holding company for Gateway Bank & Trust Co., reviewed its 2005 performance and the company's future plans at its annual shareholders' meeting, Monday, May 15, 2006 in Virginia Beach, Va.
Founded in 1988 in Elizabeth City, N.C., Gateway has become a rapidly growing regional community bank franchise which has targeted growth markets in Virginia and North Carolina through branch expansion. Having experienced 20 consecutive quarters of profitability with 132 percent stock return to shareholders over the last three years, Gateway reported another year of exceptional growth and record earnings for 2005.
"Gateway's focus on offering 'Big Bank' product lines coupled with highly personalized service has given us the ability to maintain exceptional asset quality as well as a successful growth strategy," said D. Ben Berry, chairman and chief executive officer of Gateway Financial Holdings, Inc. "We have enjoyed four consecutive years of tremendous growth and profitability, and for this, we thank our valued shareholders, partners and customers for their confidence and continued support in Gateway Bank."
Highlights for 2005 fiscal year, first quarter 2006 and future plans include:
Year ending 2005
* Gateway experienced an increase of 96 percent net income to $3.9
million -- nearly doubled from the prior fiscal year.
* Assets grew 65 percent to $882.4 million.
* Year-end Gross Loans: up 75 percent to $666.7 million
* Year-end Total Deposits: up 59 percent to $646.3 million
* Diluted earnings per share up 38 percent
* Net interest margin: 3.81%; up 22 bps
* Two financial centers opened in the southeastern Virginia market.
* Expansion began into the Raleigh/Durham/Chapel Hill region with the
first Raleigh branch opening in January 2006.
* Public offering in October 2005 added $35 million in new capital.
First Quarter 2006
* Gateway reported net income for the first quarter of 2006 of $1.4
million compared with $802,000 for the first quarter of 2005, an
increase of $557,000, or 69.5 percent. Earnings performance was
driven by strong revenue growth from the company's rapidly expanding
branch network.
* Assets grew 67 percent to $986.3 million.
* Year-end Gross Loans: up 75 percent to $783.6 million
* Year-end Total Deposits: up 74 percent to $760.1 million
* Diluted earnings per share up 30 percent
* Net interest margin: 3.95 percent; up 20 bps
* The company opened its Virginia regional headquarters and six
financial centers throughout southeastern Virginia and North Carolina
* April 24, 2006: Gateway's board of directors approved an 11-for-10
stock split to be effected in the form of a 10% stock dividend
* April 24, 2006: Gateway's board of directors announced a second
quarter cash dividend of $.03 per share.
Future Plans
* Effective June 1, 2006, Gateway will launch Gateway Financial
Mortgage, Inc., a full-service mortgage subsidiary that will operate
within Gateway's 22 financial centers throughout Virginia and North
Carolina.
* In 2006, additional financial centers will open in Chesapeake and
Virginia Beach, Va. and in Southern Shores, N.C. A loan production
office in Richmond, Va. is also slated to open this year.
* Gateway plans to open four additional financial centers in Raleigh,
N.C. during the next 24-36 months, and to convert its Wilmington, N.C.
loan production office into a full-service financial center.
Expansion into Greenville, N.C. is also slated during this time
period.
* Gateway plans to further expand its financial network through bank
acquisitions in the southeastern Virginia, Richmond, Va., Raleigh and
Wilmington, N.C. markets. The company also plans to expand its
insurance division through acquisitions primarily in the Virginia
market.
* By year-end 2007, Gateway anticipates to reach $1.5 billion in assets.
* Net interest margin: >4.00 percent
* Return on assets: 1 percent
About the Company
Gateway Financial Holdings, Inc. is the parent company of Gateway Bank & Trust Co., a full-service regional community bank with a total of 22 offices - - 11 in Virginia: Virginia Beach (6), Chesapeake (2), Suffolk, Norfolk and Emporia; and 11 in North Carolina: Elizabeth City (3), Edenton, Kitty Hawk (2), Moyock, Nags Head, Plymouth, Roper and Raleigh, and a private banking center in Raleigh. The Bank also provides insurance through its Gateway Insurance Services, Inc. subsidiary and brokerage services through its Gateway Investment Services, Inc. subsidiary. As of December 31, 2005, Gateway had assets of $882.4 million. The common stock of the Corporation is traded on the Nasdaq National Market under the symbol GBTS. For further information, visit the Corporation's web site at http://www.gwfh.com/
