ECB Bancorp 8-K申報第二季盈利飆升126.5% 淨利潤達330萬美元

EX-99.1
2
ex_963716.htm
EXHIBIT 99.1

 ex_963716.htm
 

Exhibit 99.1

 

For Immediate Release

Date: July 23, 2026

 
  
  
 

 
  
  
 

 
 
 Contact: 

 
 
 Richard J. O’Neil, Jr. 

 
 

 
  
 
 President and Chief Executive Officer

 
 

 
  
  
 

 
 
 Phone:

 
 
 617-387-1110

 
 

 
 
 Email:

 
 
 [email protected]

 
 

 

 

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. 

 

FINANCIAL HIGHLIGHTS

 
 
 (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
  
 

 

(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 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."

 

BALANCE SHEET

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.

 
  
 •
 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.
 

 

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. 

 
  
 
 •

 
 
 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.

 
 

 

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

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

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

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.

 

INCOME TAXES

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

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.

 

 

 

 

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

Consolidated Balance Sheets

(unaudited)

(dollars in thousands except share data)

 

 
  
  
 
 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
 %
  
  
  
  
 

 

 

 

 

ECB Bancorp, Inc. and Subsidiary

Consolidated Statements of Income

(unaudited)

(dollars in thousands except share data)

 

 
  
  
 
 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
 %
 

 

 

 

 

AVERAGE BALANCE, RATE & YIELD ANALYSIS 

 

 
  
  
 
 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
 %
  
  
  
  
  
  
  
  
 

 

 

 
 
 (1)

 
 
 Excludes interest and dividends on cost method investments of $202,000, $186,000 and $182,000 for the three months ended June 30, 2026, March 31, 2026 and June 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.