ECB Bancorp(ECBK) - 2023 Q3 - Quarterly Report

Financial Position - Total assets increased by $149.3 million, or 14.0$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$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$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$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$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$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$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$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$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$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$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$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]