ECB Bancorp(ECBK) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $1.1 million, or $0.14 per diluted share, down from $1.3 million, or $0.16 per diluted share in Q3 2023[1] - Noninterest income for Q3 2024 was $304,000, a decrease of $18,000, or 5.6%, compared to $322,000 in Q3 2023, primarily due to lower income from bank-owned life insurance[4] - Net income for the three months ended September 30, 2024, was $1,133,000, down from $1,341,000 in the same period of 2023, a decrease of 15.5%[16] - Basic earnings per share for the three months ended September 30, 2024, was $0.14, compared to $0.16 for the same period in 2023, a decline of 12.5%[16] Income and Expenses - Net interest and dividend income before provision for credit losses increased by $205,000, or 3.4%, to $6.3 million in Q3 2024, despite a decrease in net interest margin to 1.85% from 2.00% in Q3 2023[2] - Noninterest expense increased by $200,000, or 4.2%, to $5.0 million in Q3 2024, driven by a 9.9% increase in salaries and employee benefits[5] - Interest expense on deposits increased to $8,795,000 for the three months ended September 30, 2024, from $5,843,000 in the same period of 2023, an increase of 50.4%[16] - Provision for credit losses was $46,000 for the three months ended September 30, 2024, compared to a benefit of $(184,000) in the same period of 2023[16] Asset and Loan Growth - Total assets increased by $77.6 million, or 6.1%, to $1.36 billion as of September 30, 2024, compared to $1.28 billion at December 31, 2023[7] - Total gross loans increased by $75.9 million, or 7.2%, to $1.12 billion as of September 30, 2024, with multi-family real estate loans rising by 13.8%[8] - Total assets increased to $1,357,954,000 as of September 30, 2024, up from $1,280,335,000 at December 31, 2023, representing a growth of 6.06%[15] Deposits and Equity - Deposits increased by $76.1 million, or 8.8%, to $944.3 million as of September 30, 2024, compared to $868.2 million at December 31, 2023[9] - Total deposits rose to $944,325,000 as of September 30, 2024, compared to $868,214,000 at December 31, 2023, marking an increase of 8.77%[15] - Total shareholders' equity increased by $1.1 million, or 0.7%, to $166.0 million as of September 30, 2024, primarily due to net income of $2.5 million[11] Credit Quality and Capital Ratios - The allowance for credit losses was $9.0 million, or 0.81% of total loans, as of September 30, 2024, compared to $8.6 million and 0.82% as of December 31, 2023[12] - Regulatory capital ratios showed total capital to risk-weighted assets at 16.80% as of September 30, 2024, down from 17.30% at December 31, 2023[15] Shareholder Value - The book value per common share increased to $18.14 as of September 30, 2024, from $17.75 at December 31, 2023, an increase of 2.19%[15] - The company remains focused on balance sheet growth and enhancing franchise value, with a commitment to managing expenses effectively[2]