ECB Bancorp(ECBK) - 2024 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2024, was $621,000, compared to $901,000 for the same period in 2023[150]. - Interest and dividend income increased by $3.6 million, or 30.1%, to $15.7 million for the three months ended March 31, 2024, compared to $12.1 million for the same period in 2023[151]. - Net interest income for Q1 2024 was $5,696,000, down from $6,308,000 in Q1 2023, reflecting a net interest margin decrease from 2.38% to 1.84%[1]. - Noninterest income increased by $78,000, or 34.1%, to $307,000 for the three months ended March 31, 2024, driven by net gains on sales of loans[157]. - Net interest and dividend income decreased by $463,000, or 7.3%, to $5.9 million for the three months ended March 31, 2024, driven by a decrease in the net interest rate spread of 65 basis points to 1.16%[155]. - Income tax expense decreased by $108,000, or 33.9%, to $211,000 for the three months ended March 31, 2024, with an effective tax rate of 25.4%[159]. Asset and Loan Growth - Total assets increased by $23.1 million, or 1.8%, to $1.30 billion at March 31, 2024, from $1.28 billion at December 31, 2023, primarily due to increases in loans[140]. - Net loans increased by $31.2 million, or 3.0%, to $1.07 billion at March 31, 2024, from $1.04 billion at December 31, 2023[143]. - Total loans increased to $1,057,907,000 with a yield of 5.11% for Q1 2024, compared to $942,904,000 and a yield of 4.70% in Q1 2023[1]. - The company originated and purchased $52.6 million in loans during the three months ended March 31, 2024[170]. - Multi-family real estate loans increased by $23.8 million, or 8.3%, to $311.1 million at March 31, 2024, from $287.4 million at December 31, 2023[144]. - Commercial loans increased by $5.1 million, or 55.7%, to $14.4 million at March 31, 2024, from $9.2 million at December 31, 2023[144]. Deposit Changes - Deposits increased by $33.4 million, or 3.9%, to $901.6 million at March 31, 2024, from $868.2 million at December 31, 2023[147]. - Net increases in deposits were $33.4 million for Q1 2024, compared to $150.1 million for the year ended December 31, 2023[171]. - Certificates of deposit increased by $37.1 million, or 7.4%, to $535.6 million at March 31, 2024, compared to $498.5 million at December 31, 2023[151]. - Non-brokered certificates of deposit due within one year totaled $197.4 million, representing 29.8% of total deposits[168]. Equity and Capital - Total shareholders' equity increased by $888,000, or 0.5%, to $165.8 million at March 31, 2024, from $164.9 million at December 31, 2023, driven by earnings of $621,000[149]. - The company exceeded all regulatory capital requirements and was categorized as well-capitalized as of March 31, 2024[174]. Expenses and Loss Provisions - Total interest expense increased by $4.1 million, or 71.9%, to $9.8 million for the three months ended March 31, 2024, primarily due to a 138 basis points increase in the cost of interest-bearing deposits to 3.78%[154]. - Noninterest expense increased by $735,000, or 16.3%, to $5.2 million for the three months ended March 31, 2024, with significant increases in salaries and employee benefits[158]. - Provision for credit losses recorded was $147,000 for the three months ended March 31, 2024, down from $879,000 for the same period in 2023[156]. Cash and Investment Changes - Cash and cash equivalents decreased by $6.7 million, or 5.6%, to $112.4 million at March 31, 2024, from $119.0 million at December 31, 2023[141]. - Investment securities available for sale decreased by $2.5 million, or 50.0%, to $2.5 million as of March 31, 2024, from $5.0 million as of December 31, 2023[142]. Interest-Earning Assets - Average interest-earning assets increased by $171.8 million to $1.25 billion for the three months ended March 31, 2024, with a yield increase of 46 basis points to 4.99%[153]. - The average balance of the loan portfolio rose by $115.0 million to $1.06 billion for the three months ended March 31, 2024, with an increase in average yield of 41 basis points to 5.11%[151]. - The average interest-earning assets to interest-bearing liabilities ratio was 121.47% for Q1 2024, down from 126.71% in Q1 2023[1].