ECB Bancorp Reports 82% Increase in Net Income for Q2 2025

ECB Bancorp, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net income rising to $1.44 million, an 82% increase from $791,000 in the same period last year. For the first half of 2025, net income reached $2.74 million, compared to $1.41 million in the first half of 2024. The company's total interest and dividend income also saw a notable increase, rising to $19.1 million for the quarter, up from $16.4 million a year earlier, driven primarily by a $2.7 million increase in interest and fees on loans.

Total assets for ECB Bancorp increased to $1.52 billion as of June 30, 2025, reflecting a 6.8% growth from $1.42 billion at the end of 2024. This growth was supported by a 12.8% increase in gross loans, which reached $1.29 billion, up from $1.15 billion. The company reported substantial growth in commercial real estate loans, which increased by 35.4% to $310 million, and multi-family real estate loans, which rose by 12.2% to $385.8 million. In contrast, commercial loans and construction loans experienced slight declines.

On the liability side, total deposits increased to $1.07 billion, a 6.9% rise from $998.5 million at the end of 2024. The growth in deposits was primarily driven by an increase in certificates of deposit, which rose by 8.4% to $656.3 million. Federal Home Loan Bank advances also increased by 13.2% to $264.8 million, reflecting the company's strategy to fund loan growth. Shareholders' equity remained stable, increasing slightly to $168.3 million, with a book value per share of $18.81.

The company’s provision for credit losses increased to $1.12 million for the second quarter, up from $292,000 a year earlier, reflecting the growth in the loan portfolio. Noninterest income also saw a modest increase, totaling $355,000 for the quarter, compared to $289,000 in the prior year. Noninterest expenses remained relatively stable, with a slight increase to $4.98 million from $4.95 million, aided by the recognition of Employee Retention Tax Credits.

Looking ahead, ECB Bancorp's management expressed confidence in maintaining its growth trajectory, supported by a strong capital position and effective liquidity management. The company continues to monitor market conditions and adjust its strategies accordingly to capitalize on growth opportunities while managing risks associated with credit and interest rates.