ex_963716.htm

ECB Bancorp, Inc. Reports Second Quarter Results - Year over Year Earnings Growth of 126.5%

EVERETT, MA, July 23, 2026 - 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 $3.3 million, or $0.39 per diluted share for the quarter ended June 30, 2026, as compared to $3.1 million, or $0.38 per diluted share for the prior quarter.

(1) Noninterest expense divided by net interest and dividend income + noninterest income (non-GAAP).

Richard J. O’Neil, Jr., President and Chief Executive Officer, said, "We are pleased to report on another quarter of strong financial performance, reflecting the continued success of our disciplined approach to community banking and the dedication of our employees. These results demonstrate the strength of our franchise and our ability to grow and expand our footprint profitably in a competitive environment. As we look ahead, we remain focused on supporting our customers and communities, preparing for our planned expansion into the Medford market through the upcoming opening of our new branch, and building on our momentum through continued growth in loans, deposits, and customer relationships."

Total assets were $1.67 billion at June 30, 2026, as compared to $1.65 billion at March 31, 2026, or an increase of $21.2 million, or 1.3%.

Cash and cash equivalents were $124.0 million at June 30, 2026, as compared to $111.3 million at March 31, 2026, or an increase of $12.7 million, or 11.4%. The increase in cash and cash equivalents was driven by an increase in Federal Home Loan Bank advances that exceeded growth in the loan portfolio for the quarter.

Interest-earning time deposits were $14.2 million at June 30, 2026, as compared to $11.5 million at March 31, 2026, or an increase of $2.7 million, or 23.9%. This increase was due to purchases of new short-term interest-earning time deposits.

Investments in securities available for sale were $40.1 million at June 30, 2026, as compared to $37.1 million at March 31, 2026, or an increase of $3.0 million, or 8.1%. This increase was due to purchases of new securities.

Investments in securities held to maturity were $50.5 million at June 30, 2026, as compared to $51.6 million at March 31, 2026, or a decrease of $1.2 million, or 2.3%. This decrease was due to maturities and principal paydowns of securities.

Total gross loans were $1.404 billion at June 30, 2026, as compared to $1.402 billion at March 31, 2026, or an increase of $1.5 million, or 0.1%. Loan production remained solid during the quarter, however, gross originations were largely offset during the quarter by higher than normal loan payoffs and loan sales.

Total deposits were $1.19 billion at June 30, 2026, as compared to $1.20 billion at March 31, 2026, or a decrease of $6.7 million, or 0.6%. Deposits excluding brokered deposits increased $18.3 million during the quarter.

FHLB advances were $285.0 million at June 30, 2026, as compared to $260.8 million at March 31, 2026, or an increase of $24.2 million, or 9.3%.

Total shareholders' equity was $179.9 million as of June 30, 2026, as compared to $175.9 million as of March 31, 2026, or an increase of $4.0 million, or 2.2%. This increase is primarily the result of earnings of $3.3 million and an increase in accumulated other comprehensive income ("AOCI") of $856,000. The increase in AOCI was driven by an increase in the fair value of cash flow hedges. Our book value per share increased by $0.51 to $20.56 at June 30, 2026 from $20.05 at March 31, 2026.

Net interest and dividend income before provision for credit losses was $10.0 million for the quarter ended June 30, 2026, as compared to $9.8 million for the prior quarter, representing an increase of $201,000, or 2.0%. The increase was primarily driven by higher average loan balances and higher average short-term investment balances, partially offset by an increase in the average interest-bearing deposit balances and FHLB advances. The resulting net interest margin decreased 4 basis points to 2.45% for the quarter ended June 30, 2026 as compared to 2.49% for the prior quarter. The linked-quarter decrease was largely attributable to lower loan prepayment fee income relative to the first quarter, which had benefited from elevated loan prepayment fees. The provision for credit losses was $61,000 for the quarter ended June 30, 2026, as compared to $153,000 for the prior quarter. The lower provision primarily reflected lower loan growth in the second quarter as well as lower reserve requirements, reflecting the continued strong credit quality of the portfolio. This was partially offset by higher provision for off balance sheet commitments due to higher levels of loan commitments for the quarter ended June 30, 2026 as compared to the prior quarter. The combination of these items resulted in net interest and dividend income after provision for credit losses of $10.0 million for the quarter ended June 30, 2026, as compared to $9.7 million for the prior quarter, or an increase of $293,000, or 3.0%.

Noninterest income was $304,000 for the quarter ended June 30, 2026, as compared to $327,000 for the prior quarter, or a decrease of $23,000, or 7.0%. This was driven by lower net gains on loan sales.

Noninterest expense was $5.8 million for the quarter ended June 30, 2026, as compared to $5.7 million for the prior quarter, or an increase of $67,000, or 1.2%. Advertising and promotions expenses were $317,000 for the quarter ended June 30, 2026, as compared to $198,000 for the prior quarter, or an increase of $119,000, or 60.1%. The increase was primarily driven by the engagement of a new marketing firm as part of the Company's efforts to enhance its brand presence, expand marketing initiatives, and support long-term business development objectives. Professional fees were $248,000 for the quarter ended June 30, 2026, as compared to $447,000 for the prior quarter, or a decrease of $199,000, or 44.5%. The decrease was primarily attributable to lower consulting and professional service expenses during the second quarter, as the prior quarter included elevated audit-related fees and consulting expenses associated with various strategic and operational initiatives.

We recorded a provision for income tax expense of $1.2 million for the quarter ended June 30, 2026, as compared to a provision for income tax expense of $1.1 million for the prior quarter, reflecting effective tax rates of 27.0% and 26.8%, respectively.

Asset quality remains strong. The allowance for credit losses on loans in total and as a percentage of total loans as of June 30, 2026 was $10.2 million and 0.73%, respectively, as compared to $10.4 million and 0.74%, respectively, as of March 31, 2026. For the quarter ended June 30, 2026, the Company recorded $2,000 in net charge offs, as compared to $0 for the prior quarter. Total non-performing assets were $1.5 million, or 0.09%, of total assets as of June 30, 2026, as compared to $1.2 million, or 0.07%, of total assets as of March 31, 2026.

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.

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.

	As of									June 30, 2026 Change From
	June 30, 2026			March 31, 2026			June 30, 2025			March 31, 2026					June 30, 2025

ASSETS
Cash and due from banks	$	2,943		$	3,043		$	6,329		$	(100	)	-3.3	%	$	(3,386	)	-53.5	%
Short-term investments		121,026			108,248			92,333			12,778		11.8	%		28,693		31.1	%
Total cash and cash equivalents		123,969			111,291			98,662			12,678		11.4	%		25,307		25.7	%
Interest-earning time deposits		14,245			11,497			—			2,748		23.9	%		14,245		—
Investments in available-for-sale securities (at fair value)		40,065			37,066			20,038			2,999		8.1	%		20,027		99.9	%
Investments in held-to-maturity securities, at cost (fair values of $46,837 at June 30, 2026, $48,044 at March 31, 2026 and $62,547 at June 30, 2025)		50,452			51,624			66,845			(1,172	)	-2.3	%		(16,393	)	-24.5	%
Loans held-for-sale		—			—			1,504			—		—			(1,504	)	-100.0	%
Loans, net of allowance for credit losses of $10,238 at June 30, 2026, $10,412 at March 31, 2026 and $9,886 at June 30, 2025		1,393,194			1,391,489			1,281,741			1,705		0.1	%		111,453		8.7	%
Federal Home Loan Bank stock, at cost		12,203			11,142			11,302			1,061		9.5	%		901		8.0	%
Premises and equipment, net		3,496			3,358			3,430			138		4.1	%		66		1.9	%
Accrued interest receivable		5,266			5,329			4,775			(63	)	-1.2	%		491		10.3	%
Deferred tax asset, net		4,982			5,048			5,511			(66	)	-1.3	%		(529	)	-9.6	%
Bank-owned life insurance		15,656			15,537			15,178			119		0.8	%		478		3.1	%
Other assets		7,987			6,914			6,028			1,073		15.5	%		1,959		32.5	%
Total assets	$	1,671,515		$	1,650,295		$	1,515,014		$	21,220		1.3	%	$	156,501		10.3	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	102,806		$	80,233		$	87,862		$	22,573		28.1	%	$	14,944		17.0	%
Interest-bearing		1,089,896			1,119,162			979,576			(29,266	)	-2.6	%		110,320		11.3	%
Total deposits		1,192,702			1,199,395			1,067,438			(6,693	)	-0.6	%		125,264		11.7	%
Federal Home Loan Bank advances		285,000			260,815			264,815			24,185		9.3	%		20,185		7.6	%
Other liabilities		13,934			14,158			14,484			(224	)	-1.6	%		(550	)	-3.8	%
Total liabilities		1,491,636			1,474,368			1,346,737			17,268		1.2	%		144,899		10.8	%

Shareholders' Equity:
Preferred Stock, par value $0.01; Authorized: 1,000,000 shares; No shares issued		—			—			—			—		0.0	%		—		0.0	%
Common Stock, par value $0.01; Authorized: 30,000,000 shares; Issued and outstanding: 8,747,150 shares, 8,773,025 shares and 8,946,958 shares at June 30, 2026, March 31, 2026 and June 30, 2025, respectively		87			88			89			(1	)	-1.1	%		(2	)	-2.2	%
Additional paid-in capital		82,770			83,026			84,755			(256	)	-0.3	%		(1,985	)	-2.3	%
Retained earnings		102,000			98,739			90,582			3,261		3.3	%		11,418		12.6	%
Accumulated other comprehensive income (loss)		712			(144	)		(1,092	)		856		-594.4	%		1,804		-165.2	%
Unearned compensation - ESOP		(5,690	)		(5,782	)		(6,057	)		92		-1.6	%		367		-6.1	%
Total shareholders' equity		179,879			175,927			168,277			3,952		2.2	%		11,602		6.9	%
Total liabilities and shareholders' equity	$	1,671,515		$	1,650,295		$	1,515,014		$	21,220		1.3	%	$	156,501		10.3	%


Book value per common share	$	20.56		$	20.05		$	18.81		$	0.51		2.5	%	$	1.75		9.3	%

Regulatory Capital Ratios (Everett Co-operative Bank)
Total capital to risk weighted assets		14.90	%		14.55	%		14.67	%		0.35	%				0.23	%
Tier 1 capital to risk weighted assets		13.94	%		13.60	%		13.70	%		0.34	%				0.24	%
Tier 1 capital to average assets		9.81	%		9.83	%		10.03	%		-0.02	%				-0.22	%



Contact:	Richard J. O’Neil, Jr.
	President and Chief Executive Officer

Phone:	617-387-1110
Email:	rjoneil@everettbank.com

(dollars in thousands, except share data)		Q2 2026			Q1 2026			Q2 2025
Net interest and dividend income	$	10,035		$	9,834		$	7,660
Net income	$	3,261		$	3,122		$	1,440
Diluted earnings per share	$	0.39		$	0.38		$	0.17
Return on average assets		0.79	%		0.79	%		0.39	%
Return on average equity		7.32	%		7.25	%		3.41	%
Net interest margin		2.45	%		2.49	%		2.08	%
Efficiency ratio ⁽¹⁾		56.21	%		56.54	%		62.13	%
Book value per common share	$	20.56		$	20.05		$	18.81
Total non-performing assets to total assets		0.09	%		0.07	%		0.08	%
Total assets	$	1,671,515		$	1,650,295		$	1,515,014
Total loans	$	1,393,194		$	1,391,489		$	1,281,741
Total deposits	$	1,192,702		$	1,199,395		$	1,067,438

	•	Commercial real estate loans increased $9.5 million, or 2.8%, to $344.8 million at June 30, 2026 from $335.4 million at March 31, 2026.
	•	Home equity lines of credit increased $2.3 million, or 4.4%, to $54.5 million at June 30, 2026 from $52.2 million at March 31, 2026.
	•	Construction loans increased $1.2 million, or 1.3%, to $95.8 million at June 30, 2026 from $94.5 million at March 31, 2026.
	•	Consumer loans increased $5,000, or 3.0%, to $170,000 at June 30, 2026 from $165,000 at March 31, 2026.
	•	One-to-four family residential real estate loans decreased $3.2 million, or 0.6%, to $488.3 million at June 30, 2026 from $491.5 million at March 31, 2026.
	•	Multi-family real estate loans decreased $3.5 million, or 0.8%, to $417.6 million at June 30, 2026 from $421.1 million at March 31, 2026.
	•	Commercial loans decreased $4.8 million, or 61.4%, to $3.0 million at June 30, 2026 from $7.9 million at March 31, 2026.

	•	Demand deposit accounts increased $22.6 million, or 28.1%, to $102.8 million at June 30, 2026 from $80.2 million at March 31, 2026.
	•	Money market deposit accounts increased $12.7 million, or 6.0%, to $226.3 million at June 30, 2026 from $213.5 million at March 31, 2026.
	•	Interest-bearing checking accounts decreased $8.0 million, or 31.1%, to $17.7 million at June 30, 2026 from $25.7 million at March 31, 2026.

	•	Savings accounts decreased $8.0 million, or 9.5%, to $76.3 million at June 30, 2026 from $84.3 million at March 31, 2026.
	•	Certificates of deposit decreased $26.0 million, or 3.3%, to $769.7 million at June 30, 2026 from $795.6 million at March 31, 2026.

	For the Three Months Ended						Three Months Ended June 30, 2026 Change From Three Months Ended
	June 30, 2026		March 31, 2026		June 30, 2025		March 31, 2026					June 30, 2025
Interest and dividend income:
Interest and fees on loans	$	19,748	$	19,577	$	16,862	$	171		0.9	%	$	2,886		17.1	%
Interest and dividends on securities		1,193		1,130		994		63		5.6	%		199		20.0	%
Interest on short-term investments		1,058		814		1,244		244		30.0	%		(186	)	-15.0	%
Interest on interest-earning time deposits		139		93		1		46		49.5	%		138		13800.0	%
Total interest and dividend income		22,138		21,614		19,101		524		2.4	%		3,037		15.9	%
Interest expense:
Interest on deposits		9,458		9,198		9,122		260		2.8	%		336		3.7	%
Interest on Federal Home Loan Bank advances		2,645		2,582		2,319		63		2.4	%		326		14.1	%
Total interest expense		12,103		11,780		11,441		323		2.7	%		662		5.8	%
Net interest and dividend income		10,035		9,834		7,660		201		2.0	%		2,375		31.0	%
Provision for credit losses		61		153		1,120		(92	)	-60.1	%		(1,059	)	-94.6	%
Net interest and dividend income after provision for credit losses		9,974		9,681		6,540		293		3.0	%		3,434		52.5	%
Noninterest income:
Customer service fees		152		155		154		(3	)	-1.9	%		(2	)	-1.3	%
Income from bank-owned life insurance		119		117		118		2		1.7	%		1		0.8	%
Net gain on sales of loans		9		36		43		(27	)	-75.0	%		(34	)	-79.1	%
Other income		24		19		40		5		26.3	%		(16	)	-40.0	%
Total noninterest income		304		327		355		(23	)	-7.0	%		(51	)	-14.4	%
Noninterest expense:
Salaries and employee benefits		3,607		3,460		3,013		147		4.2	%		594		19.7	%
Director compensation		199		199		173		—		0.0	%		26		15.0	%
Occupancy and equipment		288		314		261		(26	)	-8.3	%		27		10.3	%
Data processing		337		335		315		2		0.6	%		22		7.0	%
Computer software and licensing		113		121		104		(8	)	-6.6	%		9		8.7	%
Advertising and promotions		317		198		189		119		60.1	%		128		67.7	%
Professional fees		248		447		264		(199	)	-44.5	%		(16	)	-6.1	%
Federal Deposit Insurance Corporation deposit insurance		242		251		216		(9	)	-3.6	%		26		12.0	%
Other expense		461		420		445		41		9.8	%		16		3.6	%
Total noninterest expense		5,812		5,745		4,980		67		1.2	%		832		16.7	%
Income before income tax expense		4,466		4,263		1,915		203		4.8	%		2,551		133.2	%
Income tax expense		1,205		1,141		475		64		5.6	%		730		153.7	%
Net income	$	3,261	$	3,122	$	1,440		139		4.5	%		1,821		126.5	%
Share data:
Weighted average shares outstanding, basic		8,001,325		8,026,026		8,155,667		(24,701	)	-0.3	%		(154,342	)	-1.9	%
Weighted average shares outstanding, diluted		8,336,695		8,299,710		8,369,819		36,985		0.4	%		(33,124	)	-0.4	%
Earnings per share, basic	$	0.41	$	0.39	$	0.18		0.02		5.1	%		0.23		127.8	%
Earnings per share, diluted	$	0.39	$	0.38	$	0.17		0.01		2.6	%		0.22		129.4	%

	For the Three Months Ended
	June 30, 2026								March 31, 2026								June 30, 2025
	Average								Average								Average
	Outstanding					Yield/			Outstanding					Yield/			Outstanding					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
	(Dollars in thousands)
Interest-earning assets:
Total loans	$	1,393,019		$	19,748		5.69	%	$	1,382,221		$	19,577		5.74	%	$	1,244,406		$	16,862		5.43	%
Securities (1)		89,533			991		4.44			87,438			944		4.38			88,039			812		3.70
Short-term investments		115,440			1,058		3.68			89,970			814		3.67			112,816			1,244		4.42
Interest-earning time deposits		13,612			139		4.10			8,964			93		4.21			38			1		5.37
Total interest-earning assets		1,611,604			21,936		5.46	%		1,568,593			21,428		5.54	%		1,445,299			18,919		5.25	%
Non-interest-earning assets		40,113								40,827								38,221
Total assets	$	1,651,717							$	1,609,420							$	1,483,520

Interest-bearing liabilities:
Checking accounts		19,415			4		0.08	%		18,707			4		0.09	%		19,850			5		0.10	%
Savings accounts		78,815			302		1.54			86,152			341		1.61			92,469			480		2.08
Money market accounts		221,139			1,593		2.89			212,755			1,508		2.87			208,777			1,759		3.38
Certificates of deposit		785,497			7,559		3.86			755,407			7,345		3.94			658,102			6,878		4.19
Total interest-bearing deposits		1,104,866			9,458		3.43			1,073,021			9,198		3.48			979,198			9,122		3.74
Federal Home Loan Bank advances		269,032			2,645		3.94			263,592			2,582		3.97			236,076			2,319		3.94
Total interest-bearing liabilities		1,373,898			12,103		3.53	%		1,336,613			11,780		3.57	%		1,215,274			11,441		3.78	%
Non-interest-bearing demand deposits		85,352								82,279								85,317
Non-interest-bearing liabilities		13,738								15,777								13,516
Total liabilities		1,472,988								1,434,669								1,314,107
Shareholders' equity		178,729								174,751								169,413
Total liabilities and shareholders' equity	$	1,651,717							$	1,609,420							$	1,483,520

Net interest income				$	9,833							$	9,648							$	7,478
Net interest rate spread (2)							1.93	%							1.97	%							1.47	%
Net interest-earning assets (3)	$	237,706							$	231,980							$	230,025
Net interest margin (4)							2.45	%							2.49	%							2.08	%

Average interest-earning assets to interest-bearing liabilities		117.30	%							117.36	%							118.93	%