ECBK ECB Bancorp Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): February 5, 2025

 

ECB BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Maryland	001-41456	88-1502079
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation or Organization)	File Number)	Identification No.)

 

419 Broadway, Everett, Massachusetts 02149

(Address of principal executive offices) (Zip Code)

 

(617) 387-1110

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ECBK	The Nasdaq Stock Market LLC

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

---

 

Item 2.02 Results of Operations and Financial Condition

 

On February 5, 2025, ECB Bancorp, Inc., the holding company for Everett Co-operative Bank, issued a press release announcing its financial results at and for the three months and year ended December 31, 2024.

 

 

Item 8.01 Other Events

 

On February 5, 2025, ECB Bancorp, Inc. also announced that its annual meeting of stockholders will be held on May 21, 2025.

 

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1		Press release dated February 5, 2025
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

---

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		ECB BANCORP, INC.
Date: February 5, 2025	By:	/s/Brandon N. Lavertu
		Brandon N. Lavertu
		Executive Vice President and Chief Financial Officer

---

Exhibit 99.1

For Immediate Release

Date: February 5, 2025

Contact:		Richard J. O’Neil, Jr.
		President and Chief Executive Officer
Phone:		617-387-1110
Email:		rjoneil@everettbank.com

 

ECB Bancorp, Inc. Reports Fourth Quarter and Year End Results

EVERETT, MA, February 5, 2025 - ECB Bancorp, Inc. (NASDAQ-ECBK) (the “Company”), the holding company for Everett Co-operative Bank (the “Bank”), a state-chartered co-operative bank headquartered in Everett, Massachusetts, today reported net income of $1.4 million, or $0.17 per diluted share, for the quarter ended December 31, 2024, compared to $789,000, or $0.09 per diluted share, for the quarter ended December 31, 2023. For the year ended December 31, 2024, the Company reported net income of $4.0 million, or $0.48 per diluted share, as compared to net income of $4.5 million, or $0.52 per diluted share, for the year ended December 31, 2023.

Richard J. O’Neil, Jr., President and Chief Executive Officer, said, "With just over two years as a public company, we continue to enhance our franchise value through orderly and diligent balance sheet growth and expense control. At year's end, our deposit growth of $130.3 million (15.0%) has outpaced our loan growth of $96.7 million (9.3%) as we continue to grow assets and enhance our liquidity position. This year saw an increase in our tangible book value per share from $17.75 to $18.50 which was aided by the implementation of our stock repurchase program. As we progressed through this initial stock repurchase program, we have maintained our standing as a “well capitalized” institution as we continue to execute our strategic plan."

NET INTEREST AND DIVIDEND INCOME

Net interest and dividend income before provision for credit losses was $6.8 million for the quarter ended December 31, 2024, compared to $5.9 million for the quarter ended December 31, 2023, representing an increase of $844,000, or 14.2%. This increase was primarily due to increases in yields on interest-earning assets that outpaced increases in the cost of interest-bearing liabilities. The resulting net interest margin expanded by five basis points to 1.94% for the quarter ended December 31, 2024 as compared to 1.89% for the quarter ended December 31, 2023. The provision for credit losses was a benefit of $(311,000) for the quarter ended December 31, 2024 compared to provision expense of $108,000 for the quarter ended December 31, 2023. The combination of these items resulted in net interest and dividend income after provision for credit losses of $7.1 million for the quarter ended December 31, 2024, as compared to $5.8 million for the quarter ended December 31, 2023, or an increase of $1.3 million, or 21.7%.

 

Net interest and dividend income before provision for credit losses was $25.0 million for the year ended December 31, 2024, compared to $24.8 million for the year ended December 31, 2023, or an increase of $198,000, or 0.8%. The net interest margin for the year ended December 31, 2024 was 1.86% as compared to 2.11% for the year ended December 31, 2023. The decrease in the net interest margin was driven by increases in the cost of interest-bearing liabilities that were higher than increases in yields on interest-earning assets during 2024. The provision for credit losses was $174,000 for the year ended December 31, 2024, as compared to $803,000 for the year ended December 31, 2023. The combination of these items resulted in net interest and dividend income after provision for credit losses of $24.8 million for the year ended December 31, 2024, as compared to $24.0 million for the year ended December 31, 2023, or an increase of $827,000, or 3.4%.

NONINTEREST INCOME

Noninterest income was $327,000 for the quarter ended December 31, 2024, as compared to $261,000 for the quarter ended December 31, 2023, or an increase of $66,000, or 25.3%. The increase was primarily due to increases in net gains on sales of loans.

 

Noninterest income was $1.2 million for the year ended December 31, 2024, as compared to $1.1 million for the year ended December 31, 2023, or an increase of $174,000, or 16.5%. The increase was primarily due to increases in net gains on sales of loans.

NONINTEREST EXPENSE

Noninterest expense was $5.5 million for the quarter ended December 31, 2024, as compared to $5.0 million for the quarter ended December 31, 2023, or an increase of $444,000, or 8.8%. Significant changes are as follows:

---

 

Noninterest expense was $20.7 million for year ended December 31, 2024, as compared to $19.1 million for the year ended December 31, 2023, or an increase of $1.6 million, or 8.5%. Significant changes are as follows:

INCOME TAXES

We recorded a provision for income tax expense of $493,000 for the quarter ended December 31, 2024, compared to a provision for income tax expense of $266,000 for the quarter ended December 31, 2023, reflecting effective tax rates of 25.4% and 25.2%, respectively.

 

We recorded a provision for income tax expense of $1.4 million for the year ended December 31, 2024, compared to a provision for income tax expense of $1.5 million for the year ended December 31, 2023, reflecting effective tax rates of 25.7% and 25.5%, respectively.

BALANCE SHEET

Total assets increased $137.8 million, or 10.8%, to $1.42 billion at December 31, 2024 from $1.28 billion at December 31, 2023.

 

Cash and cash equivalents increased $38.6 million, or 32.4%, to $157.6 million at December 31, 2024 from $119.0 million at December 31, 2023, as a result of deposit growth outpacing loan growth.

Total gross loans increased $97.2 million, or 9.3%, to $1.15 billion at December 31, 2024 from $1.05 billion at December 31, 2023.

 

Other assets increased $3.9 million, or 137.1%, to $6.8 million at December 31, 2024, from $2.9 million at December 31, 2023, driven by a $3.4 million investment in a low income housing tax credit fund.

Deposits increased $130.3 million, or 15.0%, to $998.5 million at December 31, 2024, from $868.2 million at December 31, 2023.

---

Total shareholders' equity increased $3.4 million, or 2.0%, to $168.3 million as of December 31, 2024 from $164.9 million as of December 31, 2023. This increase is primarily the result of net income of $4.0 million and a $1.5 million increase in additional paid-in capital related to stock-based compensation. Partially offsetting this was a decrease in additional paid-in capital of $2.7 million related to shares repurchased under our share repurchase plan. The book value per share increased $0.75 to $18.50 at December 31, 2024 from $17.75 at December 31, 2023.

ASSET QUALITY

Asset quality remains strong. The allowance for credit losses on loans in total and as a percentage of total gross loans as of December 31, 2024 was $8.9 million and 0.78%, respectively, as compared to $8.6 million and 0.82%, respectively, as of December 31, 2023. For the years ended December 31, 2024 and December 31, 2023, the Company recorded net charge offs of $3,000 and $1,000, respectively. Total non-performing assets were $2.0 million, or 0.14%, of total assets as of December 31, 2024, and $1.2 million, or 0.09% of total assets, as of December 31, 2023.

---

 

Company Profile

ECB Bancorp, Inc. is headquartered in Everett, Massachusetts and is the holding company for Everett Co-operative Bank. The Bank provides financial services to individuals, families, municipalities and businesses through its three full-service branch offices located in Everett, Lynnfield and Woburn, Massachusetts. The Company's common stock is traded on the NASDAQ Capital Market under the symbol "ECBK." For more information, visit the Company's website at www.everettbank.com.

Forward-looking statements

Certain statements herein constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on the beliefs and expectations of management, as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. As a result, actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, the Company's ability to continue to increase loans and deposit growth, legislative and regulatory changes that adversely affect the businesses in which the Company is engaged and changes in the securities market. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise, except as may be required by law.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

ECB Bancorp, Inc. and Subsidiary

Consolidated Balance Sheets

December 31, 2024 (unaudited) and December 31, 2023

(in thousands except share data)

 

		December 31, 2024				December 31, 2023
ASSETS
Cash and due from banks		$	5,828			$	3,786
Short-term investments			151,789				115,250
Total cash and cash equivalents			157,617				119,036
Interest-bearing time deposits			100				—
Investments in available-for-sale securities (at fair value)			6,564				5,003
Investments in held-to-maturity securities, at amortized cost (fair values of $67,505 at    December 31, 2024 and $70,590 at December 31, 2023)			73,215				76,979
Loans, net of allowance for credit losses of $8,884 at December 31, 2024    and $8,591 at December 31, 2023			1,136,449				1,039,789
Federal Home Loan Bank stock, at cost			10,000				9,892
Premises and equipment, net			3,512				3,754
Accrued interest receivable			4,015				3,766
Deferred tax asset, net			4,914				4,767
Bank-owned life insurance			14,945				14,472
Other assets			6,822				2,877
Total assets		$	1,418,153			$	1,280,335
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing		$	84,958			$	78,342
Interest-bearing			913,575				789,872
Total deposits			998,533				868,214
Federal Home Loan Bank advances			234,000				234,000
Other liabilities			17,352				13,220
Total liabilities			1,249,885				1,115,434
Shareholders' Equity:
Preferred Stock, par value $0.01; Authorized: 1,000,000 shares; Issued and outstanding: 0 shares and 0 shares, respectively			—				—
Common Stock, par value $0.01; Authorized: 30,000,000 shares; Issued and outstanding: 9,095,833 shares and 9,291,810 shares, respectively			91				93
Additional paid-in capital			86,189				87,431
Retained earnings			87,845				83,854
Accumulated other comprehensive income			382				129
Unearned compensation - ESOP			(6,239	)			(6,606	)
Total stockholders' equity			168,268				164,901
Total liabilities and stockholders' equity		$	1,418,153			$	1,280,335
Book value per common share		$	18.50			$	17.75
Regulatory Capital Ratios (Everett Co-operative Bank)
Total capital to risk weighted assets			16.58	%			17.30	%
Tier 1 capital to risk weighted assets			15.56	%			16.22	%
Tier 1 capital to average assets			10.47	%			11.31	%

 

---

ECB Bancorp, Inc. and Subsidiary

Consolidated Statements of Income

(unaudited)

(in thousands except share data)

 

		Three months ended								Year ended
		December 31,								December 31,
		2024				2023				2024				2023
Interest and dividend income:
Interest and fees on loans		$	15,384			$	12,969			$	57,852			$	48,330
Interest and dividends on securities			840				751				3,186				2,701
Interest on short term investments			1,587				1,178				6,007				3,745
Total interest and dividend income			17,811				14,898				67,045				54,776
Interest expense:
Interest on deposits			8,956				6,599				33,435				21,413
Interest on Federal Home Loan Bank advances			2,072				2,360				8,622				8,573
Total interest expense			11,028				8,959				42,057				29,986
Net interest and dividend income			6,783				5,939				24,988				24,790
(Benefit) provision for credit losses			(311	)			108				174				803
Net interest and dividend income after (benefit) provision for credit losses			7,094				5,831				24,814				23,987
Noninterest income:
Customer service fees			150				138				577				516
Income from bank-owned life insurance			119				106				473				479
Net gain on sales of loans			39				8				119				21
Other income			19				9				57				36
Total noninterest income			327				261				1,226				1,052
Noninterest expense:
Salaries and employee benefits			3,419				3,056				13,062				11,679
Director compensation			210				202				834				581
Occupancy and equipment expense			245				246				1,033				941
Data processing			314				284				1,198				1,093
Computer software and licensing			126				93				443				375
Advertising and promotions			155				218				551				794
Professional fees			427				393				1,258				1,355
Federal Deposit Insurance Corporation deposit insurance			191				180				752				793
Other expense			394				365				1,538				1,443
Total noninterest expense			5,481				5,037				20,669				19,054
Income before income tax expense			1,940				1,055				5,371				5,985
Income tax expense			493				266				1,380				1,529
Net income		$	1,447			$	789			$	3,991			$	4,456
Share data:
Weighted average shares outstanding, basic			8,224,033				8,406,925				8,257,014				8,466,021
Weighted average shares outstanding, diluted			8,375,643				8,433,257				8,345,737				8,523,705
Basic earnings per share		$	0.18			$	0.09			$	0.48			$	0.53
Diluted earnings per share		$	0.17			$	0.09			$	0.48			$	0.52

 

---

v3.25.0.1

Document and Entity Information	Feb. 05, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 05, 2025
Securities Act File Number	001-41456
Entity Registrant Name	ECB BANCORP, INC.
Entity Central Index Key	0001914605
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	88-1502079
Entity Address, Address Line One	419 Broadway
Entity Address, City or Town	Everett
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02149
City Area Code	617
Local Phone Number	387-1110
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ECBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false

---