For Immediate Release Date: April 24, 2025 | Contact: | Richard J. O'Neil, Jr. | | --- | --- | | | President and Chief Executive Officer | Phone: 617-387-1110 Email: rjoneil@everettbank.com ECB Bancorp, Inc. Reports First Quarter Results EVERETT, MA, April 24, 2025 - ECB Bancorp, Inc. (NASDAQ-ECBK) (the "Company"), the holding company for Everett Co- operative Bank (the "Bank"), a state-chartered co-operative bank headquartered in Everett, Massachusetts, today reported net income of $1.3 million, or $0.16 p ...

Financial Performance - Net income for the year ended December 31, 2024, was $4.0 million, a decrease of 11.1% from $4.5 million in 2023[243]. - Net income was $4.0 million for the year ended December 31, 2024, a decrease of $465,000, or 10.4%, compared to $4.5 million for the year ended December 31, 2023[266]. - Interest and dividend income increased by $12.3 million, or 22.4%, to $67.0 million for the year ended December 31, 2024, from $54.8 million for the year ended December 31, 2023[267]. - Total interest expense increased by $12.1 million, or 40.3%, to $42.1 million for the year ended December 31, 2024, from $30.0 million for the year ended December 31, 2023[271]. - Net interest and dividend income before provision for credit losses was $25.0 million for the year ended December 31, 2024, an increase of $198,000, or 0.8%, compared to $24.8 million for the year ended December 31, 2023[273]. - Noninterest income increased by $174,000, or 16.5%, to $1.2 million for the year ended December 31, 2024, compared to $1.1 million for the year ended December 31, 2023[275]. - Provision for credit losses decreased by $629,000, or 78.3%, to $174,000 for the year ended December 31, 2024, compared to $803,000 for the year ended December 31, 2023[274]. Asset and Loan Portfolio - As of December 31, 2024, the total loan portfolio comprised $422.8 million (36.9%) in one-to-four family residential real estate loans, $344.0 million (30.0%) in multifamily real estate loans, and $229.0 million (20.0%) in commercial real estate loans[242]. - The commercial real estate and multifamily real estate loan portfolios increased to $229.0 million and $344.0 million, respectively, at December 31, 2024, from $196.4 million and $287.4 million in 2023[247]. - Total gross loans increased by $97.2 million, or 9.3%, to $1.15 billion at December 31, 2024, from $1.05 billion at December 31, 2023[259]. - The company originated and purchased $160.4 million in loans for the year ended December 31, 2024, compared to $268.1 million in 2023[303]. - The company had outstanding commitments to originate loans of $21.5 million as of December 31, 2024[308]. Deposits and Funding - Brokered deposits amounted to $125.6 million as of December 31, 2024, supplementing customer deposits[242]. - Deposits increased by $130.3 million, or 15.0%, to $998.5 million at December 31, 2024, from $868.2 million at December 31, 2023[263]. - The level of brokered time deposits was $125.6 million at December 31, 2024, compared to $115.5 million in 2023[304]. - Non-brokered certificates of deposit due within one year totaled $321.7 million, representing 32.2% of total deposits as of December 31, 2024[302]. - The company experienced net increases in deposits of $130.3 million for the year ended December 31, 2024, compared to $150.1 million in 2023[304]. Capital and Equity - Total shareholders' equity increased by $3.4 million, or 2.0%, to $168.3 million at December 31, 2024, from $164.9 million at December 31, 2023[265]. - At December 31, 2024, the company exceeded all regulatory capital requirements and was categorized as well-capitalized[307]. Interest Rate Risk Management - The company has implemented strategies to manage interest rate risk, including maintaining capital levels above regulatory thresholds and diversifying the loan portfolio[285][286]. - The company began utilizing interest rate swaps in January 2024 to further manage interest rate risk exposure[286]. - A 200 basis point increase in interest rates is projected to decrease net interest income by 4.2%, while a decrease of the same magnitude would result in a 1.2% decline[290]. - Economic Value of Equity (EVE) is estimated to decrease by 18.7% with a 200 basis point increase in interest rates, while a decrease of 200 basis points would increase EVE by 13.6%[296]. - The net interest rate spread decreased to 1.19% in 2024 from 1.46% in 2023, indicating a tighter margin between interest-earning assets and interest-bearing liabilities[280][281]. Operational Developments - The company opened its third branch in Woburn, MA, in 2023 and is evaluating further branch expansion opportunities[249]. - The company is committed to maintaining a strong liquidity position and anticipates sufficient funds to meet current funding commitments[306]. - The primary impact of inflation on the company’s operations is reflected in increased operating costs, with interest rates having a more significant impact on performance[311]. Asset Quality - Non-performing assets totaled $2.0 million, representing 0.14% of total assets as of December 31, 2024, compared to $1.2 million or 0.09% in 2023[249]. - The allowance for credit losses was deemed adequate at December 31, 2024, with a potential increase of $2.4 million if prepayment rates decreased by 50%[255]. - Interest-bearing liabilities totaled $1,075,440, with total interest-bearing deposits at $858,353, reflecting an increase in funding costs[280].

Financial Performance - For Q4 2024, ECB Bancorp reported net income of $1.4 million, or $0.17 per diluted share, up from $789,000, or $0.09 per diluted share in Q4 2023, representing a 77.5% increase in net income [2]. - Net income for the year ended December 31, 2024, was $3,991 thousand, a decrease of 10.4% from $4,456 thousand in 2023 [24]. - Basic earnings per share for Q4 2024 was $0.18, compared to $0.09 in Q4 2023, marking a 100% increase [24]. Asset and Deposit Growth - Total assets increased by $137.8 million, or 10.8%, to $1.42 billion as of December 31, 2024, compared to $1.28 billion a year earlier [12]. - Deposit growth was $130.3 million, or 15.0%, reaching $998.5 million at December 31, 2024, while loan growth was $96.7 million, or 9.3%, totaling $1.15 billion [3][13]. - Total deposits grew to $998,533 thousand in 2024, up from $868,214 thousand in 2023, reflecting a 15.0% increase [22]. Income and Expenses - Net interest and dividend income after provision for credit losses increased by $1.3 million, or 21.7%, to $7.1 million for Q4 2024 compared to $5.8 million in Q4 2023 [4]. - Noninterest income for the year ended December 31, 2024, was $1.2 million, an increase of $174,000, or 16.5%, from $1.1 million in 2023, primarily due to net gains on sales of loans [7]. - Noninterest expense for the year ended December 31, 2024, was $20.7 million, an increase of $1.6 million, or 8.5%, from $19.1 million in 2023 [10]. - Interest expense on deposits increased to $33,435 thousand for the year ended December 31, 2024, up from $21,413 thousand in 2023, a rise of 56.3% [24]. - Total noninterest expense increased to $20,669 thousand for the year ended December 31, 2024, compared to $19,054 thousand in 2023, an increase of 8.5% [24]. Equity and Book Value - Total shareholders' equity increased by $3.4 million, or 2.0%, to $168.3 million as of December 31, 2024, driven by net income and stock-based compensation [16]. - The tangible book value per share increased from $17.75 to $18.50, reflecting the impact of the stock repurchase program [3]. - Book value per common share increased to $18.50 in 2024 from $17.75 in 2023, reflecting a growth of 4.2% [22]. Loan Portfolio - The allowance for credit losses on loans was $8.9 million, or 0.78% of total gross loans, as of December 31, 2024, compared to $8.6 million, or 0.82%, a year earlier [17]. - Multi-family real estate loans increased by $56.6 million, or 19.7%, to $344.0 million as of December 31, 2024 [15]. Regulatory Capital - Regulatory capital ratios showed a decline in total capital to risk-weighted assets to 16.58% in 2024 from 17.30% in 2023 [22].

Financial Performance - Net income for the three months ended September 30, 2024, was $1,133 thousand, a decrease of 15.5% compared to $1,341 thousand for the same period in 2023[7]. - Net income for the nine months ended September 30, 2024, was $2,545 million, down from $3,667 million in the same period of 2023, representing a decrease of approximately 30.5%[13]. - Net income for the nine months ended September 30, 2023, was $3,667,000, compared to $2,545,000 for the same period in 2022, indicating a year-over-year increase of approximately 44%[12]. - Comprehensive loss income for the three months ended September 30, 2024, was $(204) thousand, compared to comprehensive income of $1,339 thousand in the same period of 2023[8]. - Basic earnings per share decreased to $0.14 for the three months ended September 30, 2024, down from $0.16 in the same period of 2023[7]. - Diluted earnings per share for the three months ended September 30, 2024, is also $0.14, compared to $0.16 for the same period in 2023[118]. Assets and Liabilities - Total assets increased to $1,357,954 thousand as of September 30, 2024, up from $1,280,335 thousand at December 31, 2023, representing a growth of 6.06%[5]. - Total liabilities increased to $1,191,905 thousand as of September 30, 2024, from $1,115,434 thousand at December 31, 2023, an increase of 6.83%[5]. - As of September 30, 2024, total loans gross amounted to $1,124,491 thousand, an increase from $1,048,606 thousand as of December 31, 2023, representing a growth of approximately 7.2%[38]. - Cash and cash equivalents at the end of the period were $119,630 million, up from $97,387 million, an increase of approximately 22.8%[13]. - Total liabilities increased to $1,147,700,000 as of September 30, 2024, compared to $997,834,000 at the end of the previous year, representing a rise of approximately 15.0%[182]. Deposits and Loans - Total deposits rose to $944,325 thousand as of September 30, 2024, compared to $868,214 thousand at December 31, 2023, reflecting an increase of 8.77%[5]. - The company experienced a net decrease in demand deposits and interest-bearing accounts of $6,928 million, compared to a decrease of $27,794 million in the previous year[13]. - Real estate loans accounted for 99.5% of total loans, with one-to-four family residential loans at $419,373 thousand (37.3%) and multi-family loans at $326,975 thousand (29.1%) as of September 30, 2024[38]. - The company originated loans and principal collections, net, totaling $(67,713) million, compared to $(103,487) million in the prior year[13]. - The company had outstanding advances of $234.0 million from the Federal Home Loan Bank as of September 30, 2024, with unused borrowing capacity of $274.2 million[185]. Income and Expenses - Net interest and dividend income after provision for credit losses was $6,245 thousand for the three months ended September 30, 2024, slightly down from $6,270 thousand in the same period last year[7]. - Noninterest expense totaled $5,011 thousand for the three months ended September 30, 2024, compared to $4,811 thousand in the same period of 2023, marking an increase of 4.16%[7]. - Total interest expense increased by $10.0 million, or 47.6%, to $31.0 million for the nine months ended September 30, 2024, from $21.0 million for the same period in 2023[175]. - Noninterest income decreased by $18,000, or 5.6%, to $304,000 for the three months ended September 30, 2024, primarily due to lower income from bank-owned life insurance[162]. - The effective tax rate for the three months ended September 30, 2024, was 26.3%, compared to 24.7% for the same period in 2023, with a provision for income tax expense of $405,000[166]. Shareholder Equity and Stock Repurchase - As of September 30, 2023, the total balance of shareholders' equity was $165,512,000, reflecting an increase from $164,629,000 as of June 30, 2023[10]. - The company repurchased 49,242 shares under its share repurchase plan, totaling approximately $590,000[12]. - The company announced a stock repurchase program to acquire up to 458,762 shares, representing 5% of the outstanding common stock[203]. - A total of 48,939 shares were repurchased from July 1, 2024, to September 30, 2024, at an average price of $13.56 per share[204]. - Shareholders' equity increased by $1.1 million, or 0.7%, to $166.0 million at September 30, 2024, primarily due to net income of $2.5 million[155]. Credit Losses and Provisions - The company reported a provision for credit losses of $485 million, down from $696 million, a decrease of about 30.2% year-over-year[13]. - The provision for credit losses recorded was $46,000 for the three months ended September 30, 2024, compared to a benefit of $184,000 for the same period in 2023, reflecting higher loan growth[161]. - The company did not record any provision for estimated credit losses on held-to-maturity securities during the three and nine months ended September 30, 2024 and 2023, indicating a zero loss expectation[27]. - The allowance for credit losses increased to $9,068 thousand as of September 30, 2024, compared to $8,591 thousand as of December 31, 2023, reflecting a rise of 5.6%[39]. - The qualitative risk factors impacting expected credit losses include lending policies, economic conditions, and changes in credit quality, among others[39]. Market and Strategic Initiatives - The company plans to continue its market expansion and product development strategies, although specific new products and technologies were not detailed in the report[10]. - The company expanded its internal loan risk rating system from a seven-grade to a ten-grade system during Q2 2024[44]. - The company has commitments to originate loans amounting to $33,370,000 as of September 30, 2024, an increase from $22,701,000 as of December 31, 2023[108]. - The company has a total of $43.639 billion in pass loans for commercial real estate, demonstrating robust performance in this sector[62]. - The company’s investments in corporate bonds are deemed "investment grade" and are not expected to suffer credit losses as of September 30, 2024[27].

Financial Performance - Net income for Q3 2024 was $1.1 million, or $0.14 per diluted share, down from $1.3 million, or $0.16 per diluted share in Q3 2023[1] - Noninterest income for Q3 2024 was $304,000, a decrease of $18,000, or 5.6%, compared to $322,000 in Q3 2023, primarily due to lower income from bank-owned life insurance[4] - Net income for the three months ended September 30, 2024, was $1,133,000, down from $1,341,000 in the same period of 2023, a decrease of 15.5%[16] - Basic earnings per share for the three months ended September 30, 2024, was $0.14, compared to $0.16 for the same period in 2023, a decline of 12.5%[16] Income and Expenses - Net interest and dividend income before provision for credit losses increased by $205,000, or 3.4%, to $6.3 million in Q3 2024, despite a decrease in net interest margin to 1.85% from 2.00% in Q3 2023[2] - Noninterest expense increased by $200,000, or 4.2%, to $5.0 million in Q3 2024, driven by a 9.9% increase in salaries and employee benefits[5] - Interest expense on deposits increased to $8,795,000 for the three months ended September 30, 2024, from $5,843,000 in the same period of 2023, an increase of 50.4%[16] - Provision for credit losses was $46,000 for the three months ended September 30, 2024, compared to a benefit of $(184,000) in the same period of 2023[16] Asset and Loan Growth - Total assets increased by $77.6 million, or 6.1%, to $1.36 billion as of September 30, 2024, compared to $1.28 billion at December 31, 2023[7] - Total gross loans increased by $75.9 million, or 7.2%, to $1.12 billion as of September 30, 2024, with multi-family real estate loans rising by 13.8%[8] - Total assets increased to $1,357,954,000 as of September 30, 2024, up from $1,280,335,000 at December 31, 2023, representing a growth of 6.06%[15] Deposits and Equity - Deposits increased by $76.1 million, or 8.8%, to $944.3 million as of September 30, 2024, compared to $868.2 million at December 31, 2023[9] - Total deposits rose to $944,325,000 as of September 30, 2024, compared to $868,214,000 at December 31, 2023, marking an increase of 8.77%[15] - Total shareholders' equity increased by $1.1 million, or 0.7%, to $166.0 million as of September 30, 2024, primarily due to net income of $2.5 million[11] Credit Quality and Capital Ratios - The allowance for credit losses was $9.0 million, or 0.81% of total loans, as of September 30, 2024, compared to $8.6 million and 0.82% as of December 31, 2023[12] - Regulatory capital ratios showed total capital to risk-weighted assets at 16.80% as of September 30, 2024, down from 17.30% at December 31, 2023[15] Shareholder Value - The book value per common share increased to $18.14 as of September 30, 2024, from $17.75 at December 31, 2023, an increase of 2.19%[15] - The company remains focused on balance sheet growth and enhancing franchise value, with a commitment to managing expenses effectively[2]

Financial Performance - Net income for the three months ended June 30, 2024, was $791 thousand, down from $1,425 thousand in the same period of 2023, reflecting a decline of 44.4%[8] - The net income for the six months ended June 30, 2024, was $1,412,000, compared to $2,326,000 for the same period in 2023, indicating a decrease of about 39.2%[10] - Comprehensive income for the three months ended June 30, 2024, was $765 thousand, compared to $1,436 thousand in the same period of 2023, a decrease of 46.8%[8] - Basic earnings per share decreased to $0.10 for the three months ended June 30, 2024, down from $0.17 in the same period of 2023[7] - Diluted earnings per share for the three months ended June 30, 2024, was $0.09, compared to $0.17 for the same period in 2023[95] Asset and Liability Growth - Total assets increased to $1,335,938 thousand as of June 30, 2024, up from $1,280,335 thousand at December 31, 2023, representing a growth of 4.3%[6] - Total liabilities increased to $1,169,474 thousand as of June 30, 2024, from $1,115,434 thousand at December 31, 2023, an increase of 4.8%[6] - Total deposits increased to $932,777 thousand as of June 30, 2024, compared to $868,214 thousand at December 31, 2023, marking an increase of 7.4%[6] - Total shareholders' equity increased to $166,464,000 from $164,901,000 at December 31, 2023, reflecting a growth of approximately 0.95%[9] Income and Expense Analysis - Net interest and dividend income after provision for credit losses was $5,721 thousand for the three months ended June 30, 2024, compared to $6,399 thousand for the same period in 2023, a decrease of 10.6%[7] - Total interest expense increased by $3.1 million, or 43.0%, to $10.4 million for the three months ended June 30, 2024, from $7.3 million for the same period in 2023[128] - Noninterest income for the three months ended June 30, 2024, was $289 thousand, compared to $240 thousand in the same period of 2023, reflecting a growth of 20.4%[7] - Noninterest expense rose by $968,000, or 10.5%, to $10.2 million for the six months ended June 30, 2024, primarily due to increased salaries and employee benefits[144] Loan and Credit Quality - Total loans originated for sale, net, were $(4,156,000) for the six months ended June 30, 2024, compared to $(346,000) in the same period of 2023, showing a significant increase in loan origination activity[10] - The allowance for credit losses on loans increased to $9,025 thousand as of June 30, 2024, compared to $8,591 thousand at the end of 2023, reflecting a rise of approximately 5.1%[33] - The provision for credit losses was $292 thousand for the three months ended June 30, 2024, compared to $0 in the same period of 2023[7] - The provision for credit losses decreased to $438,000 for the six months ended June 30, 2024, down from $879,000 for the same period in 2023, reflecting lower loan growth[143] Securities and Investments - As of June 30, 2024, the total held-to-maturity securities amounted to $80,458,000, with a fair value of $74,047,000, reflecting unrealized losses of $6,547,000[18] - The Company reported no credit losses on held-to-maturity securities for the three and six months ended June 30, 2024 and 2023, indicating a zero loss expectation[19] - The fair value of derivative instruments as of June 30, 2024, was $777,000, while loans held for sale were valued at $624,000, totaling $1,401,000 in assets measured on a recurring basis[81] Capital and Regulatory Compliance - As of June 30, 2024, the total capital to risk-weighted assets ratio is 16.94%, exceeding the minimum requirement of 10.50%[92] - The Bank's Tier 1 capital to risk-weighted assets ratio is 15.85%, above the minimum requirement of 8.50%[92] - As of June 30, 2024, the company exceeded all regulatory capital requirements and was categorized as well-capitalized[156] Stock and Shareholder Activities - The company announced a stock repurchase program to acquire up to 458,762 shares, or 5% of the outstanding common stock[162] - A total of 43,359 shares were repurchased during the three months ended June 30, 2024, at an average price of $12.18 per share[162] Future Outlook and Strategy - The company is focusing on market expansion and new product development to enhance future growth prospects[55] - Future guidance suggests a continued emphasis on improving loan quality and managing chargeoffs effectively[55]

Financial Performance - Net income for Q2 2024 was $791,000, or $0.09 per diluted share, down from $1.4 million, or $0.17 per diluted share in Q2 2023, representing a decrease of 45.3%[2] - Net income for the three months ended June 30, 2024, was $791 thousand, a decrease of 44.4% compared to $1,425 thousand for the same period in 2023[25] - Basic earnings per share decreased to $0.10 for the three months ended June 30, 2024, down from $0.17 in the same period of 2023[25] Income and Revenue - Net interest and dividend income before provision for credit losses decreased by $386,000, or 6.0%, to $6.0 million in Q2 2024, with a net interest margin of 1.82%, down from 2.18% in Q2 2023[3] - Total interest and dividend income rose to $16,386 thousand for the three months ended June 30, 2024, up 19.9% from $13,651 thousand in the same period last year[25] - Net interest and dividend income after provision for credit losses was $5,721 thousand for the three months ended June 30, 2024, down 10.6% from $6,399 thousand in the prior year[25] - Noninterest income increased by $49,000, or 20.4%, to $289,000 for Q2 2024, driven by increases in income from bank-owned life insurance and net gains on sales of loans[5] - Noninterest income for the three months ended June 30, 2024, was $289 thousand, an increase of 20.4% from $240 thousand in the same period last year[25] Assets and Loans - Total assets increased by $55.6 million, or 4.3%, to $1.34 billion as of June 30, 2024, compared to $1.28 billion at December 31, 2023[10] - Total assets increased to $1,335,938 thousand as of June 30, 2024, up from $1,280,335 thousand at December 31, 2023, representing a growth of 4.3%[23] - Total net loans increased by $63.1 million, or 6.1%, to $1.10 billion as of June 30, 2024, from $1.04 billion at December 31, 2023[11] Deposits - Deposits increased by $64.6 million, or 7.4%, to $932.8 million as of June 30, 2024, from $868.2 million at December 31, 2023[13] - Total deposits increased to $932,777 thousand as of June 30, 2024, compared to $868,214 thousand at December 31, 2023, reflecting a growth of 7.4%[23] Expenses - Noninterest expense increased by $236,000, or 5.0%, to $4.9 million for Q2 2024, with significant increases in salaries and employee benefits due to stock-based compensation[7] - Total noninterest expense increased to $4,947 thousand for the three months ended June 30, 2024, compared to $4,711 thousand in the same period of 2023, reflecting a rise of 5.0%[25] Credit Losses - The allowance for credit losses was $9.0 million, or 0.81% of total loans, as of June 30, 2024, compared to $8.6 million and 0.82% as of December 31, 2023[18] - Provision for credit losses was $292 thousand for the three months ended June 30, 2024, compared to no provision in the same period last year[25] Capital Ratios - Regulatory capital ratios showed total capital to risk-weighted assets at 16.94% as of June 30, 2024, down from 17.30% at December 31, 2023[23] Forward-Looking Statements - Forward-looking statements indicate potential risks including changes in interest rates and economic conditions that may affect future performance[21] Book Value - Book value per share increased by $0.34 to $18.09 as of June 30, 2024, from $17.75 at December 31, 2023[17]

Financial Performance - Net income for the three months ended March 31, 2024, was $621,000, compared to $901,000 for the same period in 2023[150]. - Interest and dividend income increased by $3.6 million, or 30.1%, to $15.7 million for the three months ended March 31, 2024, compared to $12.1 million for the same period in 2023[151]. - Net interest income for Q1 2024 was $5,696,000, down from $6,308,000 in Q1 2023, reflecting a net interest margin decrease from 2.38% to 1.84%[1]. - Noninterest income increased by $78,000, or 34.1%, to $307,000 for the three months ended March 31, 2024, driven by net gains on sales of loans[157]. - Net interest and dividend income decreased by $463,000, or 7.3%, to $5.9 million for the three months ended March 31, 2024, driven by a decrease in the net interest rate spread of 65 basis points to 1.16%[155]. - Income tax expense decreased by $108,000, or 33.9%, to $211,000 for the three months ended March 31, 2024, with an effective tax rate of 25.4%[159]. Asset and Loan Growth - Total assets increased by $23.1 million, or 1.8%, to $1.30 billion at March 31, 2024, from $1.28 billion at December 31, 2023, primarily due to increases in loans[140]. - Net loans increased by $31.2 million, or 3.0%, to $1.07 billion at March 31, 2024, from $1.04 billion at December 31, 2023[143]. - Total loans increased to $1,057,907,000 with a yield of 5.11% for Q1 2024, compared to $942,904,000 and a yield of 4.70% in Q1 2023[1]. - The company originated and purchased $52.6 million in loans during the three months ended March 31, 2024[170]. - Multi-family real estate loans increased by $23.8 million, or 8.3%, to $311.1 million at March 31, 2024, from $287.4 million at December 31, 2023[144]. - Commercial loans increased by $5.1 million, or 55.7%, to $14.4 million at March 31, 2024, from $9.2 million at December 31, 2023[144]. Deposit Changes - Deposits increased by $33.4 million, or 3.9%, to $901.6 million at March 31, 2024, from $868.2 million at December 31, 2023[147]. - Net increases in deposits were $33.4 million for Q1 2024, compared to $150.1 million for the year ended December 31, 2023[171]. - Certificates of deposit increased by $37.1 million, or 7.4%, to $535.6 million at March 31, 2024, compared to $498.5 million at December 31, 2023[151]. - Non-brokered certificates of deposit due within one year totaled $197.4 million, representing 29.8% of total deposits[168]. Equity and Capital - Total shareholders' equity increased by $888,000, or 0.5%, to $165.8 million at March 31, 2024, from $164.9 million at December 31, 2023, driven by earnings of $621,000[149]. - The company exceeded all regulatory capital requirements and was categorized as well-capitalized as of March 31, 2024[174]. Expenses and Loss Provisions - Total interest expense increased by $4.1 million, or 71.9%, to $9.8 million for the three months ended March 31, 2024, primarily due to a 138 basis points increase in the cost of interest-bearing deposits to 3.78%[154]. - Noninterest expense increased by $735,000, or 16.3%, to $5.2 million for the three months ended March 31, 2024, with significant increases in salaries and employee benefits[158]. - Provision for credit losses recorded was $147,000 for the three months ended March 31, 2024, down from $879,000 for the same period in 2023[156]. Cash and Investment Changes - Cash and cash equivalents decreased by $6.7 million, or 5.6%, to $112.4 million at March 31, 2024, from $119.0 million at December 31, 2023[141]. - Investment securities available for sale decreased by $2.5 million, or 50.0%, to $2.5 million as of March 31, 2024, from $5.0 million as of December 31, 2023[142]. Interest-Earning Assets - Average interest-earning assets increased by $171.8 million to $1.25 billion for the three months ended March 31, 2024, with a yield increase of 46 basis points to 4.99%[153]. - The average balance of the loan portfolio rose by $115.0 million to $1.06 billion for the three months ended March 31, 2024, with an increase in average yield of 41 basis points to 5.11%[151]. - The average interest-earning assets to interest-bearing liabilities ratio was 121.47% for Q1 2024, down from 126.71% in Q1 2023[1].

Financial Performance - Net income for Q1 2024 was $621,000 or $0.07 per diluted share, a decrease of $280,000 from $901,000 or $0.11 per diluted share in Q1 2023[2] - Net income for Q1 2024 was $621 million, a decrease of 30.9% compared to $901 million in Q1 2023[20] - Basic earnings per share decreased to $0.07 in Q1 2024 from $0.11 in Q1 2023, a decline of 36.4%[20] - Income before income tax expense was $832 million, down from $1,220 million, a decline of 31.9%[20] Asset and Loan Growth - Total assets increased by $23.1 million, or 1.8%, to $1.30 billion as of March 31, 2024, compared to $1.28 billion at December 31, 2023[8] - Total net loans increased by $31.2 million, or 3.0%, to $1.07 billion as of March 31, 2024, from $1.04 billion at December 31, 2023[8] - Deposits increased by $33.4 million, or 3.9%, to $901.6 million as of March 31, 2024, from $868.2 million at December 31, 2023[10] Income and Expenses - Net interest and dividend income before provision for credit losses decreased by $463,000, or 7.3%, to $5.9 million for Q1 2024[4] - Noninterest income increased by $78,000, or 34.1%, to $307,000 for Q1 2024, driven by net gains on loan sales[5] - Noninterest expense increased by $735,000, or 16.3%, to $5.2 million for Q1 2024, primarily due to increased salaries and employee benefits[6] - Total noninterest income rose to $307 million, up from $229 million, reflecting a 34.1% increase[20] - Total noninterest expense increased to $5,231 million, compared to $4,496 million in the previous year, marking a rise of 16.4%[20] Credit Quality - The provision for credit losses decreased by $732,000, or 83.3%, to $147,000 for Q1 2024, reflecting lower loan growth[4] - Provision for credit losses decreased significantly to $147 million from $879 million year-over-year, indicating improved credit quality[20] - Asset quality remains strong, with total non-performing assets at $1.2 million, or 0.09% of total assets as of March 31, 2024[13] Shareholder Value - Book value per share increased by $0.19 to $17.94 as of March 31, 2024, from $17.75 at December 31, 2023[12] - Weighted average shares outstanding, basic, decreased to 8,299,775 from 8,481,042, a reduction of 2.1%[20] Interest Income and Expense - Total interest and dividend income increased to $15,694 million in Q1 2024, up from $12,062 million in Q1 2023, representing a growth of 30.1%[20] - Interest expense on deposits surged to $7,524 million, up from $3,917 million, an increase of 92.5%[20] - Total interest and dividend income after provision for credit losses was $5,756 million, compared to $5,487 million, an increase of 4.9%[20]

Financial Performance - For the year ended December 31, 2023, net income was $4.5 million, an increase from $2.7 million in 2022, which was impacted by a $2.3 million after-tax charge related to a charitable foundation contribution[26]. - The provision for credit losses for 2023 was $1,210,000, down from $2,940,000 in 2022, indicating a decrease of 58.8%[114]. - The allowance for credit losses increased from $7,200,000 in 2022 to $8,591,000 in 2023, reflecting a rise of 19.3%[114]. - The total charge-offs for 2023 were minimal at $2,000, while recoveries were $1,000, resulting in net charge-offs of $(1,000)[114]. Loan Portfolio - As of December 31, 2023, the total loan portfolio comprised $410.1 million (39.1%) in one-to-four family residential real estate loans, $287.4 million (27.4%) in multifamily real estate loans, and $196.4 million (18.7%) in commercial real estate loans[25]. - As of December 31, 2023, the total loan portfolio amounted to $1,048.6 million, with a net total of $1,039.8 million after accounting for deferred loan fees and allowance for credit losses[50]. - The commercial real estate loan portfolio was valued at $196.4 million, accounting for 18.7% of the total loan portfolio, while multifamily real estate loans totaled $287.4 million, representing 27.4%[64]. - The company originated $14.4 million in jumbo loans during the year ended December 31, 2023[55]. - Construction and land loans totaled $112.0 million, representing 10.7% of total loans, with speculative construction loans amounting to $33.9 million[70][71]. Lending Policies and Strategy - The company has revised its lending policies to increase lending limits and the types of loans retained in its portfolio[31]. - The company aims to compete effectively against larger banks by providing personalized service and quicker decision-making[35]. - The company expects to continue growing its commercial real estate and multifamily loan portfolios, as well as its one-to-four family residential real estate loan portfolio[47]. - The company plans to continue investing in personnel and technology to support its growth strategy, which may increase non-interest expenses[34]. Market and Competition - The market share in Middlesex County was 0.75%, ranking 26th out of 48 financial institutions, and 0.60% in Essex County, ranking 24th out of 35[46]. - Competition for loans is expected to remain intense due to regulatory and technological changes, as well as the consolidation trend in the financial services industry[45]. - The unemployment rate in the Boston-Cambridge-Newton area was 3.1% in December 2023, slightly lower than the Massachusetts state rate of 3.2% and the national rate of 3.7%[41]. Deposits and Borrowings - Total deposits increased to $868.2 million in 2023 from $718.1 million in 2022, reflecting a growth of approximately 20.9%[135]. - Core deposits totaled $369.7 million, representing 42.6% of total deposits[131]. - The largest deposit relationship amounted to $19.6 million as of December 31, 2023[131]. - Total borrowings were $234.0 million, with $200.8 million of borrowing capacity remaining with the FHLB as of December 31, 2023[138]. Credit Quality and Allowance for Credit Losses - Total non-performing loans amounted to $1.213 million as of December 31, 2023, compared to $656,000 in 2022, indicating an increase in non-performing assets[107]. - The total non-performing loans to total loans ratio was 0.12% as of December 31, 2023, up from 0.07% in 2022[107]. - The allowance for credit losses to non-performing loans ratio decreased from 1,097.56% in 2022 to 708.24% in 2023[116]. - Special mention assets increased to $1.282 million in 2023 from $467,000 in 2022, reflecting potential credit concerns[111]. Regulatory Compliance and Capital - Everett Co-operative Bank's capital ratios exceeded all applicable requirements as of December 31, 2023[166]. - The bank is considered "well capitalized" with a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, and a leverage ratio of 5.0% or greater[176][180]. - The company is subject to regulations under the Sarbanes-Oxley Act of 2002, ensuring compliance with corporate responsibility and accuracy in disclosures[198]. - The bank is required to comply with privacy regulations, including disclosing its privacy policy to customers annually[184].