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 ______________________ | --- | --- | |--------------------------------------------------------------------------------------------|- ...