The Board of Directors had delayed the 2008 Annual Meeting while the
Company considered and pursued strategic alternatives. "The current economic
environment has been incredibly difficult for financial institutions.
Nonetheless, we were able to complete our branch expansion initiative. We are
pleased with the growth in our three branches opened during 2007 where total
deposits have increased over 50 percent since year-end. The Board is very
pleased with these developments and the strategic direction of the Company
under CEO
Mr. Coburn also added, "Apart from our exploration of strategic alternatives for the Company, we are starting to see some positive developments in our current banking operations. The branch expansion initiative has been completed. Although there could still be some short-term pressure on our financial results, we believe these investments in our infrastructure will begin to yield benefits over the coming year."
Shareholders Cautioned About Dissident Attempt To Take Control of the Company
The Company has received notice that
Mr. Coburn pointed out, "Mr. Koury is quick to criticize, but beyond selling the Company, he does not offer a plan for improving shareholder value. To be clear, current management and the Board are not opposed to a sale transaction that is in the best interest of shareholders. As we have announced, we have engaged McKinnon & Co. to help us explore the Company's strategic alternatives including a potential sale. Based on a thorough analysis of the market, McKinnon approached numerous potential financial and strategic buyers to solicit their interest for a possible acquisition of our Company. If we can come to terms on a transaction that is the best option for our shareholders, we will not hesitate to move in that direction. However, in the current market, a sale may not be the best option if we cannot get appropriate value for your investment. Also, we are concerned that this proxy contest instigated by Mr. Koury may be impeding our efforts."
In late
"It has been repeatedly reported in our local newspapers, and even Mr. Koury acknowledges, that our region is experiencing a challenging economic environment. The Board believes that the people best positioned to lead our Company through this difficult period are our current management and Board of Directors with their intimate understanding of the Company, its history and its strengths and weaknesses," concluded Mr. Crouch.
About the Company
Cape Fear Bank (the "Bank"), formerly known as Bank of
Forward-Looking Statements
This press release contains statements relating to Cape Fear Bank Corporation (the Company) and its financial condition, results of operations, plans, strategies, branch expansion plans, 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. Those statements 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 statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential" or "continue," or similar terms or the negative of these terms, or other statements concerning opinions or judgments of management about future events. For example, the availability or viability of any strategic alternatives including a sale or financing transaction, the expected improvements in asset quality and the positive financial impact of new banking branches are forward- looking statement. 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, factors discussed in the Company's Annual Report on Form 10-K and in other reports filed with the Securities and Exchange Commission from time to time. Copies of those reports are available directly through the Commission's website at www.sec.gov. Other factors that could influence the accuracy of those forward-looking statements include, but are not limited to: (a) the financial success or changing strategies of the Company's customers; (b) customer acceptance of services, products and fee structure; (c) changes in competitive pressures among depository and other financial institutions or in the Company's ability to compete effectively against larger financial institutions in its banking market; (d) actions of government regulators, or changes in laws, regulations or accounting standards, that adversely affect the Company's business; (e) the Company's ability to manage growth and to underwrite increasing volumes of loans; (f) the impact on profits of increased staffing and expenses resulting from expansion; (g) changes in the interest rate environment and the level of market interest rates that reduce net interest margin and/or the volumes and values of loans made and securities held; (h) weather and similar conditions, particularly the effect of hurricanes on banking and operations facilities and on the Company's customers and the coastal communities in which it conducts business; (i) changes in general economic or business conditions and the real estate market in the Company's banking market (particularly changes that affect its loan portfolio, the abilities of borrowers to repay their loans, and the values of loan collateral); and (j) other developments or changes in the Company's business that it does not expect. Although management 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.
Important Additional Information
The Company will be filing a proxy statement and accompanying WHITE proxy
card with the Securities and Exchange Commission (the "SEC") in connection
with the solicitation of proxies for the 2008 Annual Meeting. Shareholders are
strongly advised to read the Company's 2008 proxy statement when it becomes
available because it will contain important information. Shareholders will be
able to obtain copies of the Company's 2008 proxy statement and other
documents filed by the Company with the SEC in connection with the 2008 Annual
Meeting at the SEC's website at www.sec.gov or at the Investor Relations
section of the Company's website at www.capefearbank.com. The Company, its
directors and its executive officers may be deemed participants in the
solicitation of proxies from shareholders in connection with the Company's
2008 Annual Meeting. Information concerning the Company's directors and
officers is available in its Form 10-K/A for the fiscal year ended
SOURCE Cape Fear Bank Corporation