Gateway Purchases Va.-Based Insurance Center

Gateway Bank & Trust Co., the banking subsidiary of Gateway Financial Holdings Inc., announced that its subsidiary, Gateway Insurance Services, Inc., is acquiring Insurance Center, Inc., an insurance agency based in Chesapeake, Va., effective
Oct. 16, 2006.

The acquisition of the 48-year-old Insurance Center Inc., formerly
Failla Insurance Agency Inc., represents Gateway’s first entry into
the Virginia insurance market. Gateway Insurance Services currently has eight offices serving northeastern North Carolina. Insurance Center will become the ninth Gateway Insurance Services office and the hub for Gateway’s personal lines insurance in Virginia. The insurance office will be located at the Gateway’s Chesapeake Financial Center at 111 Gainsborough Square, the same location as the Gateway Bank & Trust office.

Michael Failla, a 36-year veteran of the insurance industry and former
president of Insurance Center, Inc., will serve as personal lines
manager for Gateway’s Virginia operations and agency manager of the Chesapeake office. Insurance products include primary and
secondary homeowners, private passenger automobile and other personal lines products.

D. Ben Berry, Chairman and Chief Executive Officer of Gateway Financial Holdings, Inc., said the introduction of Gateway Insurance Services into Virginia represents a meaningful advance of Gateway’s
strategic plan to expand insurance operations throughout its markets.
“The acquisition of Insurance Centers is an excellent example of our
acquisition strategy. It will contribute a wealth of local talent to our organization, and provide customers with innovative solutions for their insurance needs, developed by knowledgeable professionals. It will also contribute to our non-interest income, providing diversification and stability to our growing revenue base.”

Source: Gateway Financial Holdings, Inc.

Topics Virginia