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].

Financial Position - Total assets increased by $149.3 million, or 14.0%, to $1.21 billion at September 30, 2023, from $1.06 billion at December 31, 2022[145] - Cash and cash equivalents rose by $35.3 million, or 56.9%, to $97.4 million at September 30, 2023, from $62.1 million at December 31, 2022[146] - Net loans increased by $111.7 million, or 12.6%, to $997.4 million at September 30, 2023, from $885.7 million at December 31, 2022[146] - Deposits increased by $94.4 million, or 13.1%, to $812.5 million at September 30, 2023, from $718.1 million at December 31, 2022[149] - Federal Home Loan Bank advances rose by $50.0 million, or 28.7%, to $224.0 million at September 30, 2023, from $174.0 million at December 31, 2022[150] - Total shareholders' equity increased by $2.8 million, or 1.7%, to $165.5 million at September 30, 2023, from $162.7 million at December 31, 2022[151] Income Statement - Net income for the three months ended September 30, 2023, was $1.3 million, compared to a net loss of $1.0 million for the same period in 2022[152] - Interest and dividend income increased by $6.4 million, or 82.5%, to $14.2 million for the three months ended September 30, 2023, from $7.8 million for the same period in 2022[153] - Net interest and dividend income decreased by $453,000, or 6.9%, to $6.1 million for the three months ended September 30, 2023, compared to $6.5 million for the same period in 2022[156] - Noninterest income increased by $94,000, or 41.2%, to $322,000 for the three months ended September 30, 2023, from $228,000 in the same period of 2022[158] - Noninterest expense decreased by $2.5 million, or 34.1%, to $4.8 million for the three months ended September 30, 2023, down from $7.3 million in the same period of 2022[159] - Income tax expense increased by $866,000, or 203.3%, to $440,000 for the three months ended September 30, 2023, from an income tax benefit of $426,000 in the same period of 2022[160] Loan and Asset Management - The average balance of the loan portfolio increased by $324.1 million to $1.0 billion for the three months ended September 30, 2023[153] - The yield on loans increased by 69 basis points to 4.88% during the three months ended September 30, 2023, from 4.19% during the same period in 2022[153] - Average interest-earning assets increased by $368.5 million, reaching $1.17 billion for the three months ended September 30, 2023, compared to $797.8 million for the same period in 2022[154] - The yield on interest-earning assets rose by 90 basis points to 4.75% for the three months ended September 30, 2023, up from 3.85% in the prior year[154] - The average balance of interest-earning assets increased by $420.2 million to $1.13 billion, with the yield on these assets rising by 102 basis points to 4.67%[169] Interest Expense and Margin - Total interest expense surged by $6.9 million, or 561.2%, to $8.1 million for the three months ended September 30, 2023, from $1.2 million in the same period of 2022[155] - Total interest expense surged by $18.4 million, or 695.9%, to $21.0 million for the nine months ended September 30, 2023, primarily due to a 228 basis point increase in the cost of interest-bearing deposits[170] - The net interest margin decreased to 2.18% from 3.16% year-over-year, indicating a decline in profitability from interest-earning assets[180] Credit Losses and Provisions - A benefit of $184,000 was recorded for the provision for credit losses for the three months ended September 30, 2023, compared to a provision of $925,000 in the same period of 2022, marking a decrease of $1.1 million, or 119.9%[157] - Provision for credit losses decreased by $1.1 million, or 61.3%, to $696,000, reflecting lower loan growth compared to the previous year[172] Taxation - The effective tax rate was 24.7% for the three months ended September 30, 2023, compared to 29.2% for the same period in 2022[160] - Income tax expense increased by $869,000, or 220.6%, to $1.3 million, with an effective tax rate of 25.6% for the nine months ended September 30, 2023[175] Overall Performance - Net income for the nine months ended September 30, 2023, was $3.7 million, up from $1.7 million for the same period in 2022, representing a significant increase[167] - Interest and dividend income rose by $20.4 million, or 104.8%, to $39.9 million for the nine months ended September 30, 2023, driven by a $17.3 million increase in interest and fees on loans[168] - Total loans increased to $981.1 million with a net interest income of $18.4 million for the nine months ended September 30, 2023, compared to $16.8 million in 2022, reflecting a growth of 9.7%[179] Regulatory and Capital Position - The company is categorized as well-capitalized and exceeds all regulatory capital requirements as of September 30, 2023[192] - The liquidity position is continuously monitored, with management anticipating sufficient funds to meet current funding commitments[191]

Financial Performance - Total assets increased by $133.0 million, or 12.5%, to $1.20 billion at June 30, 2023, from $1.06 billion at December 31, 2022[136]. - Net loans increased by $111.0 million, or 12.5%, to $996.7 million at June 30, 2023, with significant growth in commercial real estate loans, which rose by $39.4 million, or 25.3%[138]. - Interest and dividend income rose by $7.6 million, or 123.9%, to $13.7 million for the three months ended June 30, 2023, driven by a $6.4 million increase in interest and fees on loans[146]. - Net interest and dividend income rose by $1.0 million, or 19.3%, to $6.4 million for the three months ended June 30, 2023, from $5.4 million in the same period of 2022[149]. - Net interest and dividend income increased by $2.5 million, or 24.1%, to $12.8 million for the six months ended June 30, 2023, from $10.3 million for the same period in 2022[164]. Asset and Deposit Growth - Average interest-earning assets increased by $459.4 million to $1.15 billion for the three months ended June 30, 2023, with the yield on these assets rising by 117 basis points to 4.72%[147]. - Deposits increased by $68.8 million, or 9.6%, to $787.0 million at June 30, 2023, primarily due to a $89.0 million increase in certificates of deposit[141]. - Cash and cash equivalents increased by $17.8 million, or 28.7%, to $79.9 million at June 30, 2023, due to increases in deposits and borrowings[137]. - The average balance of interest-bearing deposits increased by $176.7 million, or 34.3%, to $692.0 million for the three months ended June 30, 2023[148]. - The average balance of interest-bearing deposits increased by $172.6 million, or 34.2%, to $676.5 million for the six months ended June 30, 2023, from $503.9 million for the same period in 2022[163]. Interest Expense and Margin - Total interest expense increased by $6.5 million, or 893.4%, to $7.3 million for the three months ended June 30, 2023, compared to $730,000 for the same period in 2022[148]. - The net interest margin decreased by 94 basis points to 2.18% for the three months ended June 30, 2023, from 3.12% for the same period in 2022[150]. - The net interest margin decreased by 82 basis points to 2.28% for the six months ended June 30, 2023, from 3.10% for the same period in 2022[164]. Noninterest Income and Expense - Noninterest income decreased by $450,000, or 65.2%, to $240,000 for the three months ended June 30, 2023, from $690,000 in the same period of 2022[152]. - Noninterest income decreased by $471,000, or 50.1%, to $470,000 for the six months ended June 30, 2023, from $941,000 for the same period in 2022[166]. - Noninterest expense increased by $1.1 million, or 31.6%, to $4.7 million for the three months ended June 30, 2023, compared to $3.6 million for the same period in 2022[152]. - Noninterest expense increased by $2.5 million, or 36.3%, to $9.2 million for the six months ended June 30, 2023, from $6.8 million for the same period in 2022[166]. Credit Losses and Provisions - Provision for credit losses was recorded at $0 for the three months ended June 30, 2023, a decrease of $754,000, or 100%, compared to the same period in 2022[151]. - Provision for credit losses recorded was $879,000 for the six months ended June 30, 2023, an increase of $4,000, or 0.5%, from $875,000 for the same period in 2022[165]. Tax and Regulatory Compliance - Income tax expense increased by $178,000, or 54.8%, to $503,000 for the three months ended June 30, 2023, from $325,000 in the same period of 2022[153]. - The effective tax rate was 26.1% for the three months ended June 30, 2023, compared to 18.9% for the same period in 2022[153]. - The effective tax rate increased to 26.1% for the six months ended June 30, 2023, compared to 22.8% for the same period in 2022[167]. - As of June 30, 2023, the company exceeded all regulatory capital requirements and was categorized as well-capitalized[183]. Liquidity and Funding - Federal Home Loan Bank advances increased by $60.0 million, or 34.5%, to $234.0 million at June 30, 2023, supporting loan growth and enhancing liquidity[143]. - The company is committed to maintaining a strong liquidity position and anticipates sufficient funds to meet current funding commitments[182]. - The company regularly models liquidity stress scenarios to assess potential liquidity outflows and incorporates these into its contingency funding planning[182]. - As of June 30, 2023, the company had outstanding advances of $234.0 million from the Federal Home Loan Bank and unused borrowing capacity of $221.0 million[174]. Inflation Impact - The primary impact of inflation on operations is reflected in increased operating costs, with interest rates having a more significant impact on performance than inflation[184].

Financial Position - Total assets increased by $92.4 million, or 8.7%, to $1.16 billion at March 31, 2023, from $1.06 billion at December 31, 2022[132] - Shareholders' equity increased by $351,000, or 0.2%, to $163.1 million at March 31, 2023, primarily due to net income of $901,000[138] - Cash and cash equivalents increased by $5.3 million, or 8.5%, to $67.3 million at March 31, 2023, attributed to higher deposits and borrowings[133] - Federal Home Loan Bank advances increased by $34.0 million, or 19.5%, to $208.0 million at March 31, 2023, to support loan growth and liquidity[137] - As of March 31, 2023, the company exceeded all regulatory capital requirements and was categorized as well-capitalized[162] Loan and Deposit Activity - Net loans increased by $85.6 million, or 9.7%, to $971.2 million at March 31, 2023, with significant growth in commercial real estate loans by $36.3 million, or 23.2%[134] - Deposits increased by $56.3 million, or 7.8%, to $774.4 million at March 31, 2023, driven by a $76.0 million increase in certificates of deposit, or 23.8%[136] - Core deposits decreased by $19.8 million, or 5.0%, to $378.6 million at March 31, 2023, from $398.3 million at December 31, 2022[136] - The company originated and purchased $109.6 million in loans during the three months ended March 31, 2023, compared to $557.5 million for the year ended December 31, 2022[158] - Net increases in deposits were $56.3 million for the three months ended March 31, 2023, and $146.4 million for the year ended December 31, 2022[159] - The level of brokered time deposits increased from $100.8 million at December 31, 2022, to $112.7 million at March 31, 2023[159] Income and Expenses - Net income for the three months ended March 31, 2023, was $901,000, a decrease from $1.4 million for the same period in 2022[139] - Interest and dividend income rose by $6.5 million, or 115.0%, to $12.1 million for the three months ended March 31, 2023, primarily due to a $5.7 million increase in interest and fees on loans[140] - Total interest expense increased by $5.0 million, or 725.5%, to $5.7 million for the three months ended March 31, 2023, compared to $690,000 for the same period in 2022[142] - Net interest and dividend income rose by $1.4 million, or 29.4%, to $6.4 million for the three months ended March 31, 2023, from $4.9 million in the prior year[143] - Noninterest income decreased by $22,000, or 8.8%, to $229,000 for the three months ended March 31, 2023, from $251,000 in the prior year[145] - Noninterest expense increased by $1.3 million, or 41.7%, to $4.5 million for the three months ended March 31, 2023, driven by higher salaries and professional fees[146] - Income tax expense decreased by $176,000, or 35.6%, to $319,000 for the three months ended March 31, 2023, from $495,000 in the prior year[146] Asset and Interest Metrics - Average interest-earning assets increased by $433.4 million to $1.08 billion for the three months ended March 31, 2023[141] - Average balance of interest-bearing deposits increased by $168.4 million, or 34.2%, to $660.8 million for the three months ended March 31, 2023, from $492.4 million in the prior year[142] - The average balance of net interest-earning assets increased by $226.7 million during the three months ended March 31, 2023[143] - The net interest margin decreased by 70 basis points to 2.38% for the three months ended March 31, 2023, from 3.08% for the same period in 2022[143] Liquidity and Commitments - At March 31, 2023, the company had outstanding advances of $208.0 million from the Federal Home Loan Bank and unused borrowing capacity of $209.4 million with the same bank[153] - As of March 31, 2023, the company had $30.3 million in loan commitments outstanding, with $79.4 million in unused lines of credit and $72.1 million in unadvanced construction loans[155] - Non-brokered certificates of deposit due within one year totaled $136.7 million, representing 17.7% of total deposits, indicating potential liquidity challenges if these deposits do not remain[156] - The company is committed to maintaining a strong liquidity position and anticipates sufficient funds to meet current funding commitments[161] Impact of Economic Factors - Provision for credit losses increased by $758,000, or 626.4%, to $879,000 for the three months ended March 31, 2023, compared to $121,000 for the same period in 2022, primarily due to loan portfolio growth[144] - 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[163]

Financial Performance - The net income for the year ended December 31, 2022, was $2.7 million, down from $4.0 million in 2021, impacted by a $2.3 million after-tax charge related to a charitable foundation contribution [23]. - Total non-performing loans to total loans ratio was 0.07% as of December 31, 2022, down from 0.19% in 2021 [105]. - Total non-performing assets to total assets ratio was 0.06% as of December 31, 2022, compared to 0.15% in 2021 [105]. - Total charge-offs for the year were minimal at $2,000, while total recoveries were $26,000, resulting in net recoveries of $24,000 [111]. - Provision for loan losses rose significantly to $2,940,000 in 2022 compared to $360,000 in 2021, indicating an increase of 717% [111]. Loan Portfolio Composition - As of December 31, 2022, the total loan portfolio comprised $355.4 million (39.8%) in one- to four-family residential real estate loans, $242.0 million (27.1%) in multifamily real estate loans, and $156.2 million (17.5%) in commercial real estate loans [22]. - As of December 31, 2022, the total loan portfolio amounted to $893.1 million, an increase from $521.8 million in 2021 [47]. - One- to four-family residential real estate loans represented 39.8% of the total loan portfolio, totaling $355.4 million [50]. - The multifamily real estate loans reached $242.0 million, accounting for 27.1% of the total loan portfolio [60]. - Commercial real estate loans stood at $156.2 million, making up 17.5% of the total loan portfolio [60]. Lending Strategy and Operations - The company is focusing on enhancing its commercial real estate and multifamily lending operations, hiring experienced personnel to support this strategy [27]. - A new Chief Lending Officer was hired in January 2022 to strengthen the commercial real estate lending infrastructure [26]. - The management team has been enhanced to support a revised business strategy aimed at orderly loan growth and improved retail operations [31]. - The company plans to enhance its commercial real estate team and infrastructure to retain larger loans previously originated for participation [45]. - The company has revised its lending policies to increase lending limits and the types and sizes of loans it chooses to hold in its portfolio [92]. Capital and Funding Sources - The company raised approximately $89.2 million from the sale of 8,915,247 shares of common stock during its initial public offering [16]. - The company had $174.0 million in Federal Home Loan Bank advances and $100.8 million in brokered deposits outstanding as of December 31, 2022 [22]. - Deposits remained the primary source of funds for lending and investment activities, supplemented by borrowings and other income sources [126]. - As of December 31, 2022, core deposits totaled $398.3 million, representing 55.5% of total deposits of $718.1 million [127][132]. - The bank had the ability to borrow an additional $84.8 million from the Federal Home Loan Bank of Boston as of December 31, 2022 [134]. Asset Quality and Risk Management - The allowance for loan losses is maintained at a level deemed adequate to absorb probable credit losses inherent in the loan portfolio [109]. - Allowance for loan losses increased to $7,200,000 at the end of 2022 from $4,236,000 in 2021, representing a growth of 69.5% [111]. - The allowance for loan losses to non-performing loans ratio improved to 1097.56% in 2022 from 431.5% in 2021 [111]. - Special mention assets decreased from $1,563 thousand in 2021 to $467 thousand in 2022 [107]. - Total non-accrual loans amounted to $656 thousand as of December 31, 2022, down from $982 thousand in 2021 [105]. Regulatory Compliance and Capitalization - Everett Co-operative Bank's capital ratios exceeded all applicable requirements as of December 31, 2022 [162]. - 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 common equity Tier 1 ratio of 6.5% or greater [172]. - The bank's authority to extend credit to insiders is governed by Sections 22(g) and 22(h) of the Federal Reserve Act, requiring terms to be comparable to those for unaffiliated persons [167]. - The bank must comply with safety and soundness standards prescribed by federal banking agencies, which include internal controls and asset quality [170]. - ECB Bancorp is subject to regulations and reporting requirements applicable to bank holding companies, including the Home Mortgage Disclosure Act and the Equal Credit Opportunity Act [186]. Community Engagement and Customer Service - The bank's management emphasizes personal service, accessibility, and flexibility to attract and retain retail customers [128]. - The bank received a "Satisfactory" rating under the Community Reinvestment Act in its most recent federal examination [165]. - The bank is required to disclose its privacy policy and provide customers the ability to opt-out of sharing personal information with third parties [181]. - The unemployment rate in the Boston-Cambridge-Newton area was 2.7% as of December 2022, lower than the state and national rates [37]. - The bank's noninterest-bearing demand deposits were $84.9 million, accounting for 11.8% of total deposits, while interest-bearing demand deposits were $28.9 million, or 4.0% [132].

Financial Performance - Net loss for the three months ended September 30, 2022, was $(1,035,000), compared to a net income of $1,340,000 for the same period in 2021[14]. - Net income for the nine months ended September 30, 2022, was $1,744,000, a decrease from $4,047,000 in the same period of 2021[25]. - The company recorded a net loss of $1.0 million for the three months ended September 30, 2022, compared to net income of $1.3 million for the same period in 2021[160]. - Net income for the nine months ended September 30, 2022, was $1.7 million, a decrease of $2.3 million or 56.9% compared to $4.0 million for the same period in 2021[176]. Assets and Liabilities - Total assets increased to $873,577,000 as of September 30, 2022, up from $666,489,000 on December 31, 2021, representing a growth of approximately 31%[11]. - The bank's total liabilities increased to $712,515,000 as of September 30, 2022, from $589,216,000 on December 31, 2021, representing a growth of approximately 21%[11]. - Total liabilities increased to $687.6 million as of September 30, 2022, compared to $556.5 million as of September 30, 2021[176]. - Total assets increased to $825.9 million as of September 30, 2022, compared to $632.9 million as of September 30, 2021[176]. Deposits - Total deposits rose to $652,749,000 as of September 30, 2022, from $571,754,000 on December 31, 2021, marking an increase of approximately 14%[11]. - Deposits increased by $81.0 million, or 14.2%, to $652.7 million at September 30, 2022, from $571.7 million at December 31, 2021[157]. - The company had total deposits, excluding certificates of deposit, amounting to $344,934 as of the reporting date[120]. Loan Performance - Total loans amounted to $735.3 million, an increase from $517.1 million as of December 31, 2021, representing a growth of 42%[53]. - The allowance for loan losses was $6.0 million as of September 30, 2022, compared to $4.2 million at the end of 2021, indicating a 42% increase in reserves[53]. - Total impaired loans amounted to $1,650,000 as of September 30, 2022, reflecting a 23% increase from $2,107,000 in the previous year[77]. - The company continues to monitor its loan portfolio closely, particularly in the residential and commercial sectors, to manage risk effectively[72]. Income and Expenses - Net interest and dividend income after provision for loan losses was $5,611,000 for the three months ended September 30, 2022, compared to $4,518,000 for the same period in 2021, an increase of 24%[14]. - Noninterest expense for the three months ended September 30, 2022, was $7,300,000, compared to $3,064,000 for the same period in 2021, reflecting a significant increase of 138%[14]. - Total interest expense increased by $352,000, or 40.5%, to $1.2 million for the three months ended September 30, 2022, from $870,000 for the same period in 2021[163]. - Noninterest income decreased by $130,000, or 36.3%, to $228,000 for the three months ended September 30, 2022, from $358,000 for the same period in 2021[168]. Capital and Equity - Shareholders' equity increased by $83.8 million, or 108.4%, to $161.1 million at September 30, 2022, from $77.3 million at December 31, 2021[159]. - The company exceeded all regulatory capital requirements and was categorized as well-capitalized as of September 30, 2022[203]. - The company’s Tier 1 capital to risk-weighted assets ratio was 23.13% as of September 30, 2022, significantly above the minimum requirement[134]. Community Engagement - The company contributed 260,000 shares to the Everett Co-operative Bank Charitable Foundation as part of its community engagement strategy[30]. - Charitable contributions surged to $3.2 million for the three months ended September 30, 2022, from $7,000 for the same period in 2021, due to a significant contribution to the Everett Cooperative Bank Charitable Foundation[168]. Securities and Investments - The total held-to-maturity securities as of September 30, 2022, amounted to $61.357 million, with gross unrealized losses of $8.619 million[48]. - The amortized cost basis of available-for-sale securities as of September 30, 2022, was $4.989 million, with gross unrealized losses of $6,000[48]. - The company’s investment in corporate bonds available for sale was valued at $4,985,000 as of September 30, 2022, down from $5,010,000 as of December 31, 2021[115].

Financial Performance - Net income for the three months ended June 30, 2022, was $1,396 thousand, slightly down from $1,418 thousand in the same period of 2021, a decrease of 1.5%[11] - Comprehensive income for the six months ended June 30, 2022, was $2,760 thousand, compared to $2,707 thousand in the same period of 2021, an increase of 1.9%[15] - Net income for the six months ended June 30, 2022, was $2,779 million, compared to $2,707 million for the same period in 2021, reflecting a growth of approximately 2.66%[22] - Net income for the six months ended June 30, 2022, was $2.8 million, an increase of $72,000 or 2.7% compared to $2.7 million for the same period in 2021[150] Asset Growth - Total assets increased to $781,951 thousand as of June 30, 2022, up from $666,489 thousand at December 31, 2021, representing a growth of approximately 17.3%[10] - The bank's equity increased to $80,033 thousand as of June 30, 2022, from $77,273 thousand at December 31, 2021, representing a growth of 3.3%[10] - Total loans amounted to $629.4 million, an increase from $521.8 million as of December 31, 2021, representing a growth of approximately 20.7%[46] - Total loans outstanding increased to $549,439,000 with an interest income of $10,941,000, yielding a rate of 4.02% for the six months ended June 30, 2022[163] Deposit Growth - Total deposits rose to $663,424 thousand as of June 30, 2022, compared to $571,731 thousand at December 31, 2021, marking an increase of 16.0%[10] - The company experienced net increases in deposits of $91.7 million for the six months ended June 30, 2022, compared to $80.3 million for the year ended December 31, 2021[173] Income and Expenses - Net interest and dividend income after provision for loan losses was $4,612 thousand for the three months ended June 30, 2022, compared to $4,527 thousand in the same period of 2021, an increase of 1.9%[11] - Noninterest income for the three months ended June 30, 2022, was $690 thousand, up from $263 thousand in the same period of 2021, reflecting a significant increase of 162.7%[11] - Total noninterest expense for the three months ended June 30, 2022, was $3,581 thousand, up from $2,856 thousand in the same period of 2021, an increase of 25.4%[11] - Noninterest expense increased by $725,000, or 25.4%, to $3.6 million for the three months ended June 30, 2022, primarily due to increases in salary and employee benefits[140] Loan Loss Provisions - Provision for loan losses increased to $754 thousand for the three months ended June 30, 2022, compared to $90 thousand in the same period of 2021, indicating a rise of 738.9%[11] - The provision for loan losses for the six months ended June 30, 2022, totaled $875 million, compared to $90 million for the same period in 2021, indicating a substantial increase[53] - The total allowance for loan losses ending balance increased to $5,111 million as of June 30, 2022, up from $4,236 million as of June 30, 2021, representing a growth of 20.6%[48] Securities and Investments - Total held-to-maturity securities were valued at $63.9 million as of June 30, 2022, down from $65.6 million as of December 31, 2021, reflecting a decrease of approximately 2.6%[40] - The total fair value of available-for-sale securities was $4.98 million as of June 30, 2022, unchanged from December 31, 2021[40] - The total amount of mortgage-backed securities was $42.1 million as of June 30, 2022, compared to $44.6 million as of December 31, 2021, reflecting a decrease of approximately 5.6%[40] Capital and Regulatory Compliance - The company is categorized as well-capitalized and exceeded all regulatory capital requirements as of June 30, 2022[176] - Tier 1 Capital to Risk Weighted Assets ratio was 13.50% as of June 30, 2022, compared to 16.80% as of December 31, 2021[125] - Common Equity Tier 1 Capital to Risk Weighted Assets ratio was 13.50% as of June 30, 2022, compared to 16.80% as of December 31, 2021[125] Cash Flow and Liquidity - Net cash provided by operating activities decreased to $1,630 million from $4,033 million, a decline of approximately 59.6% year-over-year[22] - Cash and cash equivalents at the end of the period were $54,999 million, up from $47,085 million, reflecting an increase of approximately 6.5%[22] - The company is committed to maintaining a strong liquidity position and monitors it on a daily basis[175] Employee Compensation and Benefits - The total expense related to the 401(k) plan for the three and six months ended June 30, 2022 was $96,000 and $180,000, respectively, compared to $67,000 and $127,000 for the same periods in 2021[78] - Salary and employee benefit expenses increased by $835,000, or 24.2%, due to additional employees and normal salary increases[159] Stock Offering - The company sold 8,915,247 shares of common stock at a price of $10.00 per share, generating gross offering proceeds of $89.2 million during the conversion[25] - The stock offering resulted in gross proceeds of $89.2 million from the sale of 8,915,247 shares at a price of $10 per share, with net proceeds approximately $86.6 million[187]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to ______________________ | --- | --- | |--------------------------------------------------------------------------------------------|- ...