ECB Bancorp(ECBK) - 2024 Q2 - Quarterly Report

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$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$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$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$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]