ECB Bancorp(ECBK) - 2025 Q2 - Quarterly Report

Financial Performance - Net income for the three months ended June 30, 2025, was $1.4 million, an increase of $649,000, or 82.0%, compared to $791,000 for the same period in 2024[137] - Net income for the six months ended June 30, 2025, was $2.7 million, an increase of $1.3 million or 93.8% compared to $1.4 million for the same period in 2024[152] - Net interest income for the six months ended June 30, 2025, was $13,945 thousand, up from $11,491 thousand in 2024, reflecting a growth of 21.4%[162] Asset Growth - Total assets increased by $96.9 million, or 6.8%, to $1.52 billion at June 30, 2025, compared to $1.42 billion at December 31, 2024[127] - Total assets increased to $1.48 billion as of June 30, 2025, from $1.32 billion as of June 30, 2024[148] - Total loans increased to $1,201,409 thousand in 2025 from $1,077,497 thousand in 2024, representing an increase of 11.5%[162] Loan and Deposit Activity - Total gross loans rose by $146.5 million, or 12.8%, to $1.29 billion at June 30, 2025, from $1.15 billion at December 31, 2024[130] - Total deposits increased by $68.9 million, or 6.9%, to $1.07 billion at June 30, 2025, compared to $998.5 million at December 31, 2024[134] - Commercial real estate loans increased by $81.0 million, or 35.4%, to $310.0 million at June 30, 2025, from $229.0 million at December 31, 2024[132] Income and Expense - Interest and dividend income increased by $2.7 million, or 16.6%, to $19.1 million for the three months ended June 30, 2025, compared to $16.4 million for the same period in 2024[138] - Total interest expense rose by $1.1 million, or 10.3%, to $11.4 million for the three months ended June 30, 2025, primarily due to an increase in interest expense on deposit accounts[140] - Total interest expense increased by $2.2 million, or 11.2%, to $22.4 million for the six months ended June 30, 2025, primarily due to a $142.6 million increase in the average balance of interest-bearing deposits[155] Credit Quality - The provision for credit losses was $1.1 million for the three months ended June 30, 2025, compared to $292,000 for the same period in 2024, reflecting greater loan growth[144] - Provision for credit losses was $1.1 million for the six months ended June 30, 2025, compared to $438,000 for the same period in 2024, reflecting greater loan growth[158] Capital and Equity - Shareholders' equity increased by $9,000, or 0.01%, to $168.3 million as of June 30, 2025, from $168.3 million as of December 31, 2024[136] - The company is categorized as well-capitalized and exceeds all regulatory capital requirements as of June 30, 2025[174] Interest Rates and Margins - The net interest margin improved by 26 basis points to 2.08% for the three months ended June 30, 2025, compared to 1.82% for the same period in 2024[143] - The net interest margin improved to 1.99% in 2025 from 1.83% in 2024, indicating enhanced profitability on interest-earning assets[162] - The net interest rate spread increased to 1.37% in 2025 from 1.15% in 2024, reflecting better management of interest-earning assets and liabilities[163] Tax and Noninterest Income - The effective tax rate decreased to 24.8% for the three months ended June 30, 2025, from 25.6% for the same period in 2024[145] - Noninterest income increased by $66,000, or 22.8%, to $355,000 for the three months ended June 30, 2025, compared to $289,000 for the same period in 2024[145] - Noninterest income increased by $32,000, or 5.4%, to $626,000 for the six months ended June 30, 2025[159]