ECB Bancorp(ECBK) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $791,000, or $0.09 per diluted share, down from $1.4 million, or $0.17 per diluted share in Q2 2023, representing a decrease of 45.3%[2] - Net income for the three months ended June 30, 2024, was $791 thousand, a decrease of 44.4% compared to $1,425 thousand for the same period in 2023[25] - 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[25] Income and Revenue - Net interest and dividend income before provision for credit losses decreased by $386,000, or 6.0%, to $6.0 million in Q2 2024, with a net interest margin of 1.82%, down from 2.18% in Q2 2023[3] - Total interest and dividend income rose to $16,386 thousand for the three months ended June 30, 2024, up 19.9% from $13,651 thousand in the same period last year[25] - Net interest and dividend income after provision for credit losses was $5,721 thousand for the three months ended June 30, 2024, down 10.6% from $6,399 thousand in the prior year[25] - Noninterest income increased by $49,000, or 20.4%, to $289,000 for Q2 2024, driven by increases in income from bank-owned life insurance and net gains on sales of loans[5] - Noninterest income for the three months ended June 30, 2024, was $289 thousand, an increase of 20.4% from $240 thousand in the same period last year[25] Assets and Loans - Total assets increased by $55.6 million, or 4.3%, to $1.34 billion as of June 30, 2024, compared to $1.28 billion at December 31, 2023[10] - 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%[23] - Total net loans increased by $63.1 million, or 6.1%, to $1.10 billion as of June 30, 2024, from $1.04 billion at December 31, 2023[11] Deposits - Deposits increased by $64.6 million, or 7.4%, to $932.8 million as of June 30, 2024, from $868.2 million at December 31, 2023[13] - Total deposits increased to $932,777 thousand as of June 30, 2024, compared to $868,214 thousand at December 31, 2023, reflecting a growth of 7.4%[23] Expenses - Noninterest expense increased by $236,000, or 5.0%, to $4.9 million for Q2 2024, with significant increases in salaries and employee benefits due to stock-based compensation[7] - Total noninterest expense increased to $4,947 thousand for the three months ended June 30, 2024, compared to $4,711 thousand in the same period of 2023, reflecting a rise of 5.0%[25] Credit Losses - The allowance for credit losses was $9.0 million, or 0.81% of total loans, as of June 30, 2024, compared to $8.6 million and 0.82% as of December 31, 2023[18] - Provision for credit losses was $292 thousand for the three months ended June 30, 2024, compared to no provision in the same period last year[25] Capital Ratios - Regulatory capital ratios showed total capital to risk-weighted assets at 16.94% as of June 30, 2024, down from 17.30% at December 31, 2023[23] Forward-Looking Statements - Forward-looking statements indicate potential risks including changes in interest rates and economic conditions that may affect future performance[21] Book Value - Book value per share increased by $0.34 to $18.09 as of June 30, 2024, from $17.75 at December 31, 2023[17]