ECB Bancorp(ECBK) - 2022 Q3 - Quarterly Report

Financial Performance - Net loss for the three months ended September 30, 2022, was $(1,035,000), compared to a net income of $1,340,000 for the same period in 2021[14]. - Net income for the nine months ended September 30, 2022, was $1,744,000, a decrease from $4,047,000 in the same period of 2021[25]. - The company recorded a net loss of $1.0 million for the three months ended September 30, 2022, compared to net income of $1.3 million for the same period in 2021[160]. - Net income for the nine months ended September 30, 2022, was $1.7 million, a decrease of $2.3 million or 56.9% compared to $4.0 million for the same period in 2021[176]. Assets and Liabilities - Total assets increased to $873,577,000 as of September 30, 2022, up from $666,489,000 on December 31, 2021, representing a growth of approximately 31%[11]. - The bank's total liabilities increased to $712,515,000 as of September 30, 2022, from $589,216,000 on December 31, 2021, representing a growth of approximately 21%[11]. - Total liabilities increased to $687.6 million as of September 30, 2022, compared to $556.5 million as of September 30, 2021[176]. - Total assets increased to $825.9 million as of September 30, 2022, compared to $632.9 million as of September 30, 2021[176]. Deposits - Total deposits rose to $652,749,000 as of September 30, 2022, from $571,754,000 on December 31, 2021, marking an increase of approximately 14%[11]. - Deposits increased by $81.0 million, or 14.2%, to $652.7 million at September 30, 2022, from $571.7 million at December 31, 2021[157]. - The company had total deposits, excluding certificates of deposit, amounting to $344,934 as of the reporting date[120]. Loan Performance - Total loans amounted to $735.3 million, an increase from $517.1 million as of December 31, 2021, representing a growth of 42%[53]. - The allowance for loan losses was $6.0 million as of September 30, 2022, compared to $4.2 million at the end of 2021, indicating a 42% increase in reserves[53]. - Total impaired loans amounted to $1,650,000 as of September 30, 2022, reflecting a 23% increase from $2,107,000 in the previous year[77]. - The company continues to monitor its loan portfolio closely, particularly in the residential and commercial sectors, to manage risk effectively[72]. Income and Expenses - Net interest and dividend income after provision for loan losses was $5,611,000 for the three months ended September 30, 2022, compared to $4,518,000 for the same period in 2021, an increase of 24%[14]. - Noninterest expense for the three months ended September 30, 2022, was $7,300,000, compared to $3,064,000 for the same period in 2021, reflecting a significant increase of 138%[14]. - Total interest expense increased by $352,000, or 40.5%, to $1.2 million for the three months ended September 30, 2022, from $870,000 for the same period in 2021[163]. - Noninterest income decreased by $130,000, or 36.3%, to $228,000 for the three months ended September 30, 2022, from $358,000 for the same period in 2021[168]. Capital and Equity - Shareholders' equity increased by $83.8 million, or 108.4%, to $161.1 million at September 30, 2022, from $77.3 million at December 31, 2021[159]. - The company exceeded all regulatory capital requirements and was categorized as well-capitalized as of September 30, 2022[203]. - The company’s Tier 1 capital to risk-weighted assets ratio was 23.13% as of September 30, 2022, significantly above the minimum requirement[134]. Community Engagement - The company contributed 260,000 shares to the Everett Co-operative Bank Charitable Foundation as part of its community engagement strategy[30]. - Charitable contributions surged to $3.2 million for the three months ended September 30, 2022, from $7,000 for the same period in 2021, due to a significant contribution to the Everett Cooperative Bank Charitable Foundation[168]. Securities and Investments - The total held-to-maturity securities as of September 30, 2022, amounted to $61.357 million, with gross unrealized losses of $8.619 million[48]. - The amortized cost basis of available-for-sale securities as of September 30, 2022, was $4.989 million, with gross unrealized losses of $6,000[48]. - The company’s investment in corporate bonds available for sale was valued at $4,985,000 as of September 30, 2022, down from $5,010,000 as of December 31, 2021[115].