ECB Bancorp, Inc. reported a solid performance for the third quarter and the nine months ended September 30, 2024, with total assets increasing by $77.6 million, or 6.1%, to $1.36 billion compared to $1.28 billion at the end of 2023. This growth was primarily driven by a $75.9 million, or 7.2%, increase in gross loans, which reached $1.12 billion. Notably, multi-family real estate loans surged by 13.8% to $327.0 million, while commercial real estate loans rose by 13.4% to $222.7 million.

The company’s total deposits also saw a significant increase, rising by $76.1 million, or 8.8%, to $944.3 million. This growth was supported by a $83.0 million increase in certificates of deposit, which accounted for a 16.7% rise. However, savings accounts and demand deposit accounts experienced declines of 22.8% and 5.5%, respectively.

For the three months ended September 30, 2024, ECB Bancorp reported net income of $1.1 million, down from $1.3 million in the same period of 2023. For the nine months, net income totaled $2.5 million, a decrease from $3.7 million year-over-year. The decline in profitability was attributed to increased interest expenses, which rose by 34.5% to $10.9 million for the quarter, driven by a 50.5% increase in interest expense on deposit accounts.

Interest and dividend income for the third quarter increased by $3.0 million, or 21.1%, to $17.2 million, reflecting a higher average yield on loans, which rose by 39 basis points to 5.27%. For the nine months, total interest and dividend income increased by $9.4 million, or 23.5%, to $49.2 million.

Noninterest income for the third quarter decreased slightly to $304,000 from $322,000 in 2023, primarily due to lower income from bank-owned life insurance. Noninterest expenses increased by 4.2% to $5.0 million, with notable increases in salaries and employee benefits driven by stock-based compensation related to the 2023 Equity Incentive Plan.

The company maintained a strong capital position, with total shareholders' equity rising to $166.0 million, up from $164.9 million at the end of 2023. The bank remains categorized as well-capitalized under regulatory standards, with a total capital to risk-weighted assets ratio of 16.80% as of September 30, 2024.

In terms of strategic developments, ECB Bancorp announced a stock repurchase program in August 2023, allowing for the acquisition of up to 458,762 shares, representing 5% of the outstanding common stock, contingent on market conditions. The company continues to focus on managing its interest rate risk through the use of interest rate swaps.