For Immediate Release

Date: July 24, 2025

ECB Bancorp, Inc. Reports Second Quarter Results

EVERETT, MA, July 24, 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 June 30, 2025 as compared to $791,000, or $0.09 per diluted share, for the quarter ended June 30, 2024, an increase of $649,000, or 82.0% in net income. For the six months ended June 30, 2025, the Company reported net income of $2.7 million, or $0.33 per diluted share, as compared to net income of $1.4 million, or $0.17 per diluted share, for the six months ended June 30, 2024, an increase of $1.3 million, or 93.8% in net income.

Richard J. O’Neil, Jr., President and Chief Executive Officer, said, "As we enter the third quarter of 2025, we are beginning to enjoy the benefits afforded by virtue of the more stable interest rate environment as compared to 2023 and 2024. Notwithstanding the uncertainty brought about by tariff discussions and negotiations and geopolitical events, which certainly affect the broader markets, we continue to pursue our strategic plan and focus on orderly and disciplined growth. We are seeing improved net interest margins from both balance sheet growth and a more stabilized rate environment. Most importantly, our credit quality remains very strong. Expense management continues to be a priority and we are pleased to see improvement in our efficiency ratio to 62.1% in the second quarter of 2025 from 78.5% in the second quarter of 2024. Lastly, after completing our initial stock repurchase plan, we recently initiated a second repurchase plan as we continue enhancing shareholder value."

NET INTEREST AND DIVIDEND INCOME

Net interest and dividend income before provision for credit losses was $7.7 million for the quarter ended June 30, 2025, as compared to $6.0 million for the quarter ended June 30, 2024, representing an increase of $1.6 million, or 27.4%. This increase was primarily due to increases in the average balance and yields on interest-earning assets. The resulting net interest margin expanded by 26 basis points to 2.08% for the quarter ended June 30, 2025 as compared to 1.82% for the quarter ended June 30, 2024. The provision for credit losses was $1.1 million for the quarter ended June 30, 2025 as compared to $292,000 for the quarter ended June 30, 2024. The increase in the provision for credit losses was driven by greater loan growth in the quarter ended June 30, 2025 than in the quarter ended June 30, 2024. The combination of these items resulted in net interest and dividend income after provision for credit losses of $6.5 million for the quarter ended June 30, 2025, as compared to $5.7 million for the quarter ended June 30, 2024, or an increase of $819,000, or 14.3%.

Net interest and dividend income before provision for credit losses was $14.3 million for the six months ended June 30, 2025, as compared to $11.9 million for the six months ended June 30, 2024, representing an increase of $2.4 million, or 20.1%. This increase was primarily due to increases in the average balance and yields on interest-earning assets. The resulting net interest margin expanded by 16 basis points to 1.99% for the six months ended June 30, 2025 as compared to 1.83% for the six months ended June 30, 2024. The provision for credit losses was $1.1 million for the six months ended June 30, 2025, as compared to $438,000 for the six months ended June 30, 2024. The increase in the provision for credit losses was driven by greater loan growth in the six months ended June 30, 2025 than in the six months ended June 30, 2024.The combination of these items resulted in net interest and dividend income after provision for credit losses of $13.2 million for the six months ended June 30, 2025, as compared to $11.5 million for the six months ended June 30, 2024, or an increase of $1.7 million, or 15.0%.

NONINTEREST INCOME

Noninterest income was $355,000 for the quarter ended June 30, 2025, as compared to $289,000 for the quarter ended June 30, 2024, or an increase of $66,000, or 22.8% and was $626,000 for the six months ended June 30, 2025, as compared to $594,000 for the six months ended June 30, 2024, or an increase of $32,000, or 5.4%. 

NONINTEREST EXPENSE

Noninterest expense was $5.0 million for the quarter ended June 30, 2025, as compared to $4.9 million for the quarter ended June 30, 2024, or an increase of $33,000, or 0.7%. During the second quarter of 2025, the Company recognized $236,000 in Employee Retention Tax Credits (ERTC) in the form of refunds of certain federal employment taxes that are authorized and established under the CARES Act. The amount was recorded as a reduction to salaries and employee benefits expenses. 

Noninterest expense was $10.2 million for the six months ended June 30, 2025 and for the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company recognized $236,000 in Employee Retention Tax Credits (ERTC) in the form of refunds of certain federal employment taxes that are authorized and established under the CARES Act. The amount was recorded as a reduction to salaries and employee benefits expenses.

INCOME TAXES

We recorded a provision for income tax expense of $475,000 for the quarter ended June 30, 2025, as compared to a provision for income tax expense of $272,000 for the quarter ended June 30, 2024, reflecting effective tax rates of 24.8% and 25.6%, respectively.

We recorded a provision for income tax expense of $899,000 for the six months ended June 30, 2025, as compared to a provision for income tax expense of $482,000 for the six months ended June 30, 2024, reflecting effective tax rates of 24.7% and 25.4%, respectively.

BALANCE SHEET

Total assets were $1.52 billion at June 30, 2025, as compared to $1.42 billion at December 31, 2024, or an increase of $96.9 million, or 6.8%.

Cash and cash equivalents decreased $59.0 million, or 37.4%, to $98.7 million at June 30, 2025 from $157.6 million at December 31, 2024. The decrease in cash and cash equivalents was driven by growth in both loans and investments that in aggregate, was greater than our growth in deposits and borrowings.

Investments in securities available for sale were $20.0 million at June 30, 2025, as compared to $6.6 million at December 31, 2024, or an increase of $13.5 million, or 205.3%. This increase was due to purchases of new securities.

Investments in securities held to maturity were $66.8 million at June 30, 2025, as compared to $73.2 million at December 31, 2024, or a $6.4 million, or 8.7%, decrease. This decrease was due to maturities of securities.

Total gross loans were $1.29 billion at June 30, 2025, as compared to $1.15 billion at December 31, 2024, or an increase of $146.5 million, or 12.8%.

Total deposits were $1.07 billion at June 30, 2025, as compared to $998.5 million at December 31, 2024, or an increase of $68.9 million, or 6.9%.

FHLB advances increased $30.8 million, or 13.2%, to $264.8 million at June 30, 2025 from $234.0 million at December 31, 2024. The increase in FHLB advances was used to fund loan growth.

Total shareholders' equity increased $9,000, or 0.01%, to $168.3 million as of June 30, 2025 from $168.3 million as of December 31, 2024. This increase is primarily the result of earnings of $2.7 million. Partially offsetting the increase from earnings were decreases in additional paid-in capital ("APIC") and accumulated other comprehensive income ("AOCI") of $1.4 million and $1.5 million, respectively. The decrease in APIC was driven by $2.1 million in shares repurchased under our share repurchase plan, partially offset by an increase in APIC of $695,000 related to stock-based compensation and ESOP shares committed to be released. The decrease in AOCI was driven by a decrease in the fair value of cash flow hedges. Our book value per share increased by $0.31 to $18.81 at June 30, 2025 from $18.50 at December 31, 2024.

ASSET QUALITY

Asset quality remains strong. The allowance for credit losses in total and as a percentage of total loans as of June 30, 2025 was $9.9 million and 0.76%, respectively, as compared to $8.9 million and 0.78%, respectively, as of December 31, 2024. For the six months ended June 30, 2025, the Company recorded $83,000 in net charge offs, as compared to $3,000 for the six months ended June 30, 2024. Total non-performing assets were $1.3 million, or 0.08%, of total assets as of June 30, 2025 as compared to $2.0 million, or 0.14%, of total assets as of December 31, 2024.

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

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ECB Bancorp, Inc. and Subsidiary

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