ECB Bancorp(ECBK) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2024, was $1,133 thousand, a decrease of 15.5$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$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$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$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$13.56 per share[204]. - Shareholders' equity increased by $1.1 million, or 0.7$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$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$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].