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For Immediate Release

Date: October 22, 2026

   
   

Contact:

Richard J. O’Neil, Jr.

 

President and Chief Executive Officer

   

Phone:

617-387-1110

Email:

rjoneil@everettbank.com

 

 

ECB Bancorp, Inc. Reports Third Quarter Results

 

EVERETT, MA, October 22, 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 $3.4 million, or $0.40 per diluted share for the quarter ended September 30, 2026, as compared to $3.3 million, or $0.39 per diluted share for the prior quarter. 

 

FINANCIAL HIGHLIGHTS

(dollars in thousands, except share data)

    Q3 2026       Q2 2026       Q3 2025  

Net interest and dividend income

  $ 10,790     $ 10,035     $ 8,456  

Net income

  $ 3,391     $ 3,261     $ 2,439  

Diluted earnings per share

  $ 0.40     $ 0.39     $ 0.29  

Return on average assets

    0.80 %     0.79 %     0.63 %

Return on average equity

    7.36 %     7.32 %     5.72 %

Net interest margin

    2.56 %     2.45 %     2.19 %

Efficiency ratio (1)

    56.56 %     56.21 %     60.91 %

Book value per common share

  $ 21.16     $ 20.56     $ 19.18  

Total non-performing assets to total assets

    0.08 %     0.09 %     0.07 %

Total assets

  $ 1,693,081     $ 1,671,515     $ 1,552,653  

Total loans

  $ 1,459,613     $ 1,404,152     $ 1,316,366  

Total deposits

  $ 1,210,971     $ 1,192,702     $ 1,108,605  

 

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

 

CEO COMMENTARY

Richard J. O’Neil, Jr., President and Chief Executive Officer, said, "We are pleased with our third quarter results, which reflect solid momentum with growth of the balance sheet and continued improvement in our earnings. Net income increased to $3.4 million, or $0.40 per diluted share, compared to $3.3 million in the prior quarter and $2.4 million in the third quarter of last year. Our net interest margin expanded 11 basis points to 2.56%, driven by loan growth and higher yields on interest-earning assets. Our efficiency ratio of 56.6% reflects our continued focus on disciplined expense management, even as we invest in the growth of our franchise. Loan growth was strong, with total loans increasing $55.5 million, or 3.9%, during the quarter. At the same time, deposits excluding brokered deposits grew $63.2 million. Credit quality remains strong, with non-performing assets of just 0.08% of total assets, and book value per share increased to $21.16. We are excited to open our new Medford branch, our fourth full-service location, which expands our presence in our core market and positions us for continued growth in the communities we serve. We remain focused on disciplined growth, prudent risk management and building long-term value for our shareholders."

 

 

 

BALANCE SHEET

Total assets were $1.69 billion at September 30, 2026, as compared to $1.67 billion at June 30, 2026, or an increase of $21.6 million, or 1.3%.

 

Cash and cash equivalents were $96.1 million at September 30, 2026, as compared to $124.0 million at June 30, 2026, or a decrease of $27.9 million, or 22.5%. The decrease in cash and cash equivalents was primarily due to loan growth that exceeded deposit growth for the quarter.

 

Interest-earning time deposits were $2.2 million at September 30, 2026, as compared to $14.2 million at June 30, 2026, or a decrease of $12.0 million, or 84.2%. This decrease was due to maturities of interest-earning time deposits.

 

Investments in securities available for sale were $48.7 million at September 30, 2026, as compared to $40.1 million at June 30, 2026, or an increase of $8.6 million, or 21.5%. This increase was driven by purchases of new securities, partially offset by increased unrealized losses in the portfolio due to market rate increases.

 

Investments in securities held to maturity were $43.4 million at September 30, 2026, as compared to $50.5 million at June 30, 2026, or a decrease of $7.1 million, or 14.0%. This decrease was due to maturities, calls and principal paydowns of securities.

 

 

 

Total gross loans were $1.46 billion at September 30, 2026, as compared to $1.40 billion at June 30, 2026, or an increase of $55.5 million, or 3.9%. Loan growth during the quarter was broad-based, with increases in every loan category, led by commercial real estate, multi-family and construction loans.

  • Commercial real estate loans increased $14.6 million, or 4.2%, to $359.5 million at September 30, 2026 from $344.8 million at June 30, 2026.
  • Multi-family real estate loans increased $14.2 million, or 3.4%, to $431.8 million at September 30, 2026 from $417.6 million at June 30, 2026.
  • Construction loans increased $13.8 million, or 14.4%, to $109.6 million at September 30, 2026 from $95.8 million at June 30, 2026.
  • One-to-four family residential real estate loans increased $9.4 million, or 1.9%, to $497.7 million at September 30, 2026 from $488.3 million at June 30, 2026.
  • Home equity lines of credit increased $2.6 million, or 4.8%, to $57.1 million at September 30, 2026 from $54.5 million at June 30, 2026.
  • Consumer loans increased $620,000, or 364.7%, to $790,000 at September 30, 2026 from $170,000 at June 30, 2026.
  • Commercial loans increased $157,000, or 5.2%, to $3.2 million at September 30, 2026 from $3.0 million at June 30, 2026.

 

Total deposits were $1.21 billion at September 30, 2026, as compared to $1.19 billion at June 30, 2026, or an increase of $18.3 million, or 1.5%. Deposits excluding brokered deposits increased $63.2 million during the quarter, while brokered deposits decreased $45.0 million. 

 

•

Money market deposit accounts increased $47.2 million, or 20.9%, to $273.5 million at September 30, 2026 from $226.3 million at June 30, 2026.

 

•

Interest-bearing checking accounts increased $2.5 million, or 13.8%, to $20.2 million at September 30, 2026 from $17.7 million at June 30, 2026.

  • Savings accounts increased $2.3 million, or 3.1%, to $78.6 million at September 30, 2026 from $76.3 million at June 30, 2026.
 

•

Demand deposit accounts decreased $10.7 million, or 10.4%, to $92.1 million at September 30, 2026 from $102.8 million at June 30, 2026.

 

•

Certificates of deposit decreased $23.1 million, or 3.0%, to $746.6 million at September 30, 2026 from $769.7 million at June 30, 2026. The decrease reflected a $45.0 million reduction in brokered certificates of deposit, partially offset by growth in retail certificates of deposit.

 

FHLB advances were $282.5 million at September 30, 2026, as compared to $285.0 million at June 30, 2026, or a decrease of $2.5 million, or 0.9%.

 

Total shareholders’ equity was $184.9 million as of September 30, 2026, as compared to $179.9 million as of June 30, 2026, or an increase of $5.0 million, or 2.8%. This increase is primarily the result of earnings of $3.4 million and an increase in accumulated other comprehensive income (“AOCI”) of $1.2 million. The increase in AOCI was driven by an increase in the fair value of cash flow hedges, partially offset by increased unrealized losses in the portfolio of securities available for sale. Our book value per share increased by $0.60 to $21.16 at September 30, 2026 from $20.56 at June 30, 2026.

 

 

NET INTEREST AND DIVIDEND INCOME

Net interest and dividend income before provision for credit losses was $10.8 million for the quarter ended September 30, 2026, as compared to $10.0 million for the prior quarter, representing an increase of $755,000, or 7.5%. The increase was primarily driven by higher average loan balances and higher yields on loans, along with lower average certificate of deposit balances, partially offset by higher average balances of FHLB advances and money market accounts. Interest and dividends on securities for the third quarter included $100,000 of accelerated discount accretion recognized upon the call of an investment security. The resulting net interest margin increased 11 basis points to 2.56% for the quarter ended September 30, 2026 as compared to 2.45% for the prior quarter. The linked-quarter increase reflected a 7 basis point increase in the yield on interest-earning assets to 5.53%, while the cost of interest-bearing liabilities decreased 1 basis point to 3.52%. The provision for credit losses was $205,000 for the quarter ended September 30, 2026, as compared to $61,000 for the prior quarter. The higher provision primarily reflected loan growth during the third quarter, partially offset by a lower provision for off-balance sheet commitments. The combination of these items resulted in net interest and dividend income after provision for credit losses of $10.6 million for the quarter ended September 30, 2026, as compared to $10.0 million for the prior quarter, or an increase of $611,000, or 6.1%.

 

 

NONINTEREST INCOME

Noninterest income was $304,000 for the quarter ended September 30, 2026, unchanged from $304,000 for the prior quarter. A decrease of $5,000 in net gains on sales of loans was offset by increases of $3,000 in other income and $2,000 in income from bank-owned life insurance.

 

NONINTEREST EXPENSE

Noninterest expense was $6.3 million for the quarter ended September 30, 2026, as compared to $5.8 million for the prior quarter, or an increase of $463,000, or 8.0%. Salaries and employee benefits were $3.9 million for the quarter ended September 30, 2026, as compared to $3.6 million for the prior quarter, or an increase of $256,000, or 7.1%. The increase was primarily driven by new hires related to the Company’s new Medford branch, as well as higher incentive accruals. Professional fees were $325,000 for the quarter ended September 30, 2026, as compared to $248,000 for the prior quarter, or an increase of $77,000, or 31.0%. The increase was primarily attributable to audit-related costs. Advertising and promotions expenses were $390,000 for the quarter ended September 30, 2026, as compared to $317,000 for the prior quarter, or an increase of $73,000, or 23.0%. The increase reflected continued investment in the Company’s marketing initiatives, including marketing related to the new Medford branch, new branding and campaign development, and the launch of new digital advertising initiatives. Data processing expense was $386,000 for the quarter ended September 30, 2026, as compared to $337,000 for the prior quarter, or an increase of $49,000, or 14.5%, primarily due to a $56,000 contract termination fee incurred during the quarter.

 

 

INCOME TAXES

We recorded a provision for income tax expense of $1.2 million for the quarter ended September 30, 2026, as compared to a provision for income tax expense of $1.2 million for the prior quarter, reflecting effective tax rates of 26.5% and 27.0%, respectively.

 

ASSET QUALITY

Asset quality remains strong. The allowance for credit losses on loans in total and as a percentage of total loans as of September 30, 2026 was $10.3 million and 0.71%, respectively, as compared to $10.2 million and 0.73%, respectively, as of June 30, 2026. For the quarter ended September 30, 2026, the Company recorded $2,000 in net charge-offs, as compared to $2,000 for the prior quarter. Total non-performing assets were $1.4 million, or 0.08%, of total assets as of September 30, 2026, as compared to $1.5 million, or 0.09%, of total assets as of June 30, 2026.

 

 

 

 

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 four full-service branch offices located in Everett, Lynnfield, Woburn and Medford*, 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.

 

*Medford branch opened on October 13, 2026.

 

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 loan 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

(unaudited)

(dollars in thousands except share data)

 

   

As of

   

September 30, 2026 Change From

 
   

September 30, 2026

   

June 30, 2026

   

September 30, 2025

   

June 30, 2026

   

September 30, 2025

 
                                                         

ASSETS

                                                       

Cash and due from banks

  $ 2,707     $ 2,943     $ 3,351     $ (236 )     -8.0 %   $ (644 )     -19.2 %

Short-term investments

    93,377       121,026       99,269       (27,649 )     -22.8 %     (5,892 )     -5.9 %

Total cash and cash equivalents

    96,084       123,969       102,620       (27,885 )     -22.5 %     (6,536 )     -6.4 %

Interest-earning time deposits

    2,248       14,245       7,998       (11,997 )     -84.2 %     (5,750 )     -71.9 %

Investments in available-for-sale securities (at fair value)

    48,686       40,065       31,020       8,621       21.5 %     17,666       57.0 %

Investments in held-to-maturity securities, at amortized cost (fair values of $38,674 at September 30, 2026, $46,837 at June 30, 2026 and $54,729 at September 30, 2025)

    43,388       50,452       58,485       (7,064 )     -14.0 %     (15,097 )     -25.8 %

Loans held-for-sale

    —       —       —       —       —       —       —  

Loans, net of allowance for credit losses of $10,330 at September 30, 2026, $10,238 at June 30, 2026 and $10,015 at September 30, 2025

    1,448,546       1,393,194       1,305,547       55,352       4.0 %     142,999       11.0 %

Federal Home Loan Bank stock, at cost

    13,290       12,203       11,102       1,087       8.9 %     2,188       19.7 %

Premises and equipment, net

    4,591       3,496       3,427       1,095       31.3 %     1,164       34.0 %

Accrued interest receivable

    5,577       5,266       5,251       311       5.9 %     326       6.2 %

Deferred tax asset, net

    4,848       4,982       5,612       (134 )     -2.7 %     (764 )     -13.6 %

Bank-owned life insurance

    15,777       15,656       15,299       121       0.8 %     478       3.1 %

Other assets

    10,046       7,987       6,292       2,059       25.8 %     3,754       59.7 %

Total assets

  $ 1,693,081     $ 1,671,515     $ 1,552,653     $ 21,566       1.3 %   $ 140,428       9.0 %
                                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                       

Deposits:

                                                       

Noninterest-bearing

  $ 92,125     $ 102,806     $ 84,759     $ (10,681 )     -10.4 %   $ 7,366       8.7 %

Interest-bearing

    1,118,846       1,089,896       1,023,846       28,950       2.7 %     95,000       9.3 %

Total deposits

    1,210,971       1,192,702       1,108,605       18,269       1.5 %     102,366       9.2 %

Federal Home Loan Bank advances

    282,500       285,000       259,815       (2,500 )     -0.9 %     22,685       8.7 %

Other liabilities

    14,740       13,934       14,924       806       5.8 %     (184 )     -1.2 %

Total liabilities

    1,508,211       1,491,636       1,383,344       16,575       1.1 %     124,867       9.0 %
                                                         

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: 8,737,641 shares, 8,747,150 shares and 8,825,827 shares at September 30, 2026, June 30, 2026 and September 30, 2025, respectively

    87       87       88       —       0.0 %     (1 )     -1.1 %

Additional paid-in capital

    83,036       82,770       83,162       266       0.3 %     (126 )     -0.2 %

Retained earnings

    105,391       102,000       93,021       3,391       3.3 %     12,370       13.3 %

Accumulated other comprehensive income (loss)

    1,953       712       (998 )     1,241       174.3 %     2,951       -295.7 %

Unearned compensation - ESOP

    (5,597 )     (5,690 )     (5,964 )     93       -1.6 %     367       -6.2 %

Total shareholders' equity

    184,870       179,879       169,309       4,991       2.8 %     15,561       9.2 %

Total liabilities and shareholders' equity

  $ 1,693,081     $ 1,671,515     $ 1,552,653     $ 21,566       1.3 %   $ 140,428       9.0 %
                                                         
                                                         

Book value per common share

  $ 21.16     $ 20.56     $ 19.18     $ 0.60       2.9 %   $ 1.98       10.3 %
                                                         

Regulatory Capital Ratios (Everett Co-operative Bank)

                                                       

Total capital to risk weighted assets

    14.52 %     14.90 %     14.68 %     -0.38 %             -0.16 %        

Tier 1 capital to risk weighted assets

    13.59 %     13.94 %     13.71 %     -0.35 %             -0.12 %        

Tier 1 capital to average assets

    9.82 %     9.81 %     9.85 %     0.01 %             -0.03 %        

 

 

 

ECB Bancorp, Inc. and Subsidiary

Consolidated Statements of Income

(unaudited)

(dollars in thousands except share data)

 

   

For the Three Months Ended

   

Three Months Ended September 30, 2026 Change From Three Months Ended

 
   

September 30, 2026

   

June 30, 2026

   

September 30, 2025

   

June 30, 2026

   

September 30, 2025

 

Interest and dividend income:

                                                       

Interest and fees on loans

  $ 20,602     $ 19,748     $ 18,153     $ 854       4.3 %   $ 2,449       13.5 %

Interest and dividends on securities

    1,319       1,193       1,032       126       10.6 %     287       27.8 %

Interest on short-term investments

    990       1,058       1,204       (68 )     -6.4 %     (214 )     -17.8 %

Interest on interest-earning time deposits

    203       139       28       64       46.0 %     175       625.0 %

Total interest and dividend income

    23,114       22,138       20,417       976       4.4 %     2,697       13.2 %

Interest expense:

                                                       

Interest on deposits

    9,227       9,458       9,548       (231 )     -2.4 %     (321 )     -3.4 %

Interest on Federal Home Loan Bank advances

    3,097       2,645       2,413       452       17.1 %     684       28.3 %

Total interest expense

    12,324       12,103       11,961       221       1.8 %     363       3.0 %

Net interest and dividend income

    10,790       10,035       8,456       755       7.5 %     2,334       27.6 %

Provision for credit losses

    205       61       183       144       236.1 %     22       12.0 %

Net interest and dividend income after provision for credit losses

    10,585       9,974       8,273       611       6.1 %     2,312       27.9 %

Noninterest income:

                                                       

Customer service fees

    152       152       147       —       0.0 %     5       3.4 %

Income from bank-owned life insurance

    121       119       121       2       1.7 %     —       0.0 %

Net gain on sales of loans

    4       9       55       (5 )     -55.6 %     (51 )     -92.7 %

Other income

    27       24       18       3       12.5 %     9       50.0 %

Total noninterest income

    304       304       341       —       0.0 %     (37 )     -10.9 %

Noninterest expense:

                                                       

Salaries and employee benefits

    3,863       3,607       3,373       256       7.1 %     490       14.5 %

Director compensation

    200       199       204       1       0.5 %     (4 )     -2.0 %

Occupancy and equipment

    283       288       254       (5 )     -1.7 %     29       11.4 %

Data processing

    386       337       331       49       14.5 %     55       16.6 %

Computer software and licensing

    121       113       116       8       7.1 %     5       4.3 %

Advertising and promotions

    390       317       172       73       23.0 %     218       126.7 %

Professional fees

    325       248       298       77       31.0 %     27       9.1 %

Federal Deposit Insurance Corporation deposit insurance

    255       242       237       13       5.4 %     18       7.6 %

Other expense

    452       461       373       (9 )     -2.0 %     79       21.2 %

Total noninterest expense

    6,275       5,812       5,358       463       8.0 %     917       17.1 %

Income before income tax expense

    4,614       4,466       3,256       148       3.3 %     1,358       41.7 %

Income tax expense

    1,223       1,205       817       18       1.5 %     406       49.7 %

Net income

  $ 3,391     $ 3,261     $ 2,439       130       4.0 %     952       39.0 %

Share data:

                                                       

Weighted average shares outstanding, basic

    7,989,369       8,001,325       8,023,681       (11,956 )     -0.1 %     (34,312 )     -0.4 %

Weighted average shares outstanding, diluted

    8,393,169       8,336,695       8,274,506       56,474       0.7 %     118,663       1.4 %

Earnings per share, basic

  $ 0.42     $ 0.41     $ 0.30       0.01       2.4 %     0.12       40.0 %

Earnings per share, diluted

  $ 0.40     $ 0.39     $ 0.29       0.01       2.6 %     0.11       37.9 %

 

 

 

AVERAGE BALANCE, RATE & YIELD ANALYSIS 

 

   

For the Three Months Ended

 
   

September 30, 2026

   

June 30, 2026

   

September 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

  $ 1,429,432     $ 20,602       5.72 %   $ 1,393,019     $ 19,748       5.69 %   $ 1,302,904     $ 18,153       5.53 %

Securities (1)

    90,454       1,126       4.94       89,533       991       4.44       86,398       844       3.88  

Short-term investments

    105,324       990       3.73       115,440       1,058       3.68       108,653       1,204       4.40  

Interest-earning time deposits

    19,659       203       4.10       13,612       139       4.10       2,548       28       4.36  

Total interest-earning assets

    1,644,869       22,921       5.53 %     1,611,604       21,936       5.46 %     1,500,503       20,229       5.35 %

Non-interest-earning assets

    43,886                       40,113                       39,057                  

Total assets

  $ 1,688,755                     $ 1,651,717                     $ 1,539,560                  
                                                                         

Interest-bearing liabilities:

                                                                       

Checking accounts

    20,334       5       0.10 %     19,415       4       0.08 %     18,226       4       0.09 %

Savings accounts

    76,004       293       1.53       78,815       302       1.54       91,144       481       2.09  

Money market accounts

    246,529       1,912       3.08       221,139       1,593       2.89       217,543       1,846       3.37  

Certificates of deposit

    734,424       7,017       3.79       785,497       7,559       3.86       696,263       7,217       4.11  

Total interest-bearing deposits

    1,077,291       9,227       3.40       1,104,866       9,458       3.43       1,023,176       9,548       3.70  

Federal Home Loan Bank advances

    310,652       3,097       3.96       269,032       2,645       3.94       243,673       2,413       3.93  

Total interest-bearing liabilities

    1,387,943       12,324       3.52 %     1,373,898       12,103       3.53 %     1,266,849       11,961       3.75 %

Non-interest-bearing demand deposits

    104,073                       85,352                       89,252                  

Non-interest-bearing liabilities

    13,883                       13,738                       14,165                  

Total liabilities

    1,505,899                       1,472,988                       1,370,266                  

Shareholders' equity

    182,856                       178,729                       169,294                  

Total liabilities and shareholders' equity

  $ 1,688,755                     $ 1,651,717                     $ 1,539,560                  
                                                                         

Net interest income

          $ 10,597                     $ 9,833                     $ 8,268          

Net interest rate spread (2)

                    2.01 %                     1.93 %                     1.60 %

Net interest-earning assets (3)

  $ 256,926                     $ 237,706                     $ 233,654                  

Net interest margin (4)

                    2.56 %                     2.45 %                     2.19 %
                                                                         

Average interest-earning assets to average interest-bearing liabilities

    118.51 %                     117.30 %                     118.44 %                

 


 

(1)

Excludes interest and dividends on cost method investments of $193,000, $202,000 and $188,000 for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

(2)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(3)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4)

Net interest margin represents net interest income divided by average total interest-earning assets.