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ECB Bancorp, Inc. /MD/ (ECBK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 results accelerated: diluted EPS rose to $0.29 from $0.17 in Q2 and $0.14 in Q3 2024, with net income up 115% year over year on margin expansion, higher loan yields, and lower funding costs .
  • Net interest margin expanded to 2.19% (vs. 2.08% in Q2 and 1.85% in Q3 2024) as average loan balances and yields increased while the cost of interest-bearing liabilities declined .
  • Credit quality remained strong: ACL 0.76% of loans, NPA 0.07% of assets; YTD net charge-offs $84k, with loan growth funded by deposit inflows and FHLB advances .
  • Management highlighted disciplined balance sheet growth, expense focus, and accretive share repurchases lifting book value per share to $19.18; no formal financial guidance was provided .

What Went Well and What Went Wrong

What Went Well

  • “We continued to execute our strategy of disciplined balance sheet growth, emphasizing high quality loans and expense management,” driving improved profitability and EPS in Q3 .
  • Net interest margin expanded 34 bps year over year to 2.19% on higher average loan balances/yields and lower liability costs, supporting net income growth .
  • Asset quality stayed robust: ACL at 0.76% of loans; NPA 0.07% of assets; minimal net charge-offs, underpinning earnings durability .

What Went Wrong

  • Provision for credit losses increased to $183k in Q3 (from $46k in Q3 2024), reflecting higher loan growth; while modest, it is a headwind vs. prior year .
  • Noninterest expense rose 6.9% year over year in Q3, partly offset by earlier ERTC credits; ongoing expense discipline remains important as growth scales .
  • Increased reliance on FHLB advances (+$25.8M YTD to $259.8M) to fund loan growth adds to funding costs and sensitivity to wholesale markets .

Financial Results

Core Financials: Sequential Comparison (Q1 → Q2 → Q3 2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)*$6.93$6.90$8.61
Diluted EPS ($)$0.16 $0.17 $0.29
Net Income ($USD Millions)$1.30 $1.44 $2.44
Net Interest Margin (%)1.89% 2.08% 2.19%
Provision for Credit Losses ($USD Millions)$(0.01) $1.12 $0.18
Noninterest Income ($USD Millions)$0.27 $0.36 $0.34
Noninterest Expense ($USD Millions)$5.21 $4.98 $5.36

*Values retrieved from S&P Global.

Year-over-Year Highlights (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025YoY Change
Diluted EPS ($)$0.14 $0.29 +115.3%
Net Interest Margin (%)1.85% 2.19% +34 bps
Net Interest & Dividend Income Before Provision ($USD Millions)$6.29 $8.46 +34.4%
Provision for Credit Losses ($USD Millions)$0.05 $0.18 +$0.14

Balance Sheet

Metric ($USD Millions unless noted)Q1 2025Q2 2025Q3 2025
Total Assets$1,452.2 $1,515.0 $1,552.7
Total Gross Loans (approx., derived from net + ACL)$1,186.4 $1,291.6 $1,315.6
Deposits$1,036.6 $1,067.4 $1,108.6
FHLB Advances$234.0 $264.8 $259.8
Shareholders’ Equity$168.6 $168.3 $169.3
Book Value per Share ($)$18.63 $18.81 $19.18

Deposit Mix

Category ($USD Millions)Q1 2025Q2 2025Q3 2025
Certificates of Deposit$636.9 $656.3 $699.4
Money Market Accounts$204.3 $215.5 $217.1
Demand Deposits$79.9 $87.9 $84.8
Savings Accounts$98.6 $90.9 $89.2
Interest-Bearing Checking$17.0 $16.9 $18.2

Loan Mix

Category ($USD Millions)Q1 2025Q2 2025Q3 2025
Multi-family Real Estate$371.0 $385.8 $407.4
Commercial Real Estate$255.1 $310.0 $311.5
Residential Real Estate$434.4 $448.5 $454.1
Construction Loans$69.7 $87.2 $88.4
Commercial Loans$12.6 $12.3 $8.2
HELOCs$44.0 $47.6 $45.9
Consumer Loans——$0.85

Asset Quality KPIs

KPIQ1 2025Q2 2025Q3 2025
ACL ($USD Millions)$8.81 $9.89 $10.02
ACL / Loans (%)0.74% 0.76% 0.76%
Non-Performing Assets ($USD Millions)$1.3 $1.3 $1.1
NPA / Assets (%)0.09% 0.08% 0.07%
Net Charge-Offs (YTD, $USD Thousands)$82 $83 $84

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial GuidanceFY/Q4 2025None providedNone providedMaintained (no formal guidance)

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was found. Themes below reflect management commentary from press releases.

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Interest rate environmentStabilization aiding NIM expansion cited entering Q3; efficiency ratio improvement to 62.1% in Q2 vs 78.5% YoY Continued NIM expansion (+34 bps YoY) on higher loan yields and lower liability costs Improving
Deposit/loan growthRetail team driving deposit growth enabling quality loan adds; disciplined growth Loan balances up 14.9% YTD; deposits up 11.0% YTD; mix tilts toward CDs/MMA Accelerating
Credit qualityStrong with low NCOs, stable ACL coverage Strong: ACL 0.76% of loans; NPA 0.07%; minimal NCOs Stable/Strong
Expense managementFlat in Q1; ERTC $236k reduced salaries in Q2 Q3 noninterest expense up 6.9% YoY; continued focus on efficiency Mixed (discipline vs growth)
Capital/repurchasesCompleted initial repurchase program; initiated second in Q2 Repurchases accretive to BVPS; BVPS increased to $19.18 Shareholder-friendly
Macro/tariffs/geopoliticsCautioned on tariffs/geopolitics uncertainty affecting broader markets No new macro/tariff commentary beyond strategic execution Neutral

Management Commentary

  • “During the third quarter, we continued to execute our strategy of disciplined balance sheet growth, emphasizing high quality loans and expense management… our ongoing stock repurchases continue to be accretive to book value per share” — Richard J. O’Neil, Jr., CEO .
  • “We are beginning to enjoy the benefits afforded by virtue of the more stable interest rate environment… improved net interest margins… efficiency ratio to 62.1% in the second quarter of 2025 from 78.5% in the second quarter of 2024… initiated a second repurchase plan” .
  • “The efforts and success of our retail team… deposit growth… enabled our lending team to add quality loans supported by strong sponsors… maintained our standing as a ‘well capitalized’ institution” .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available; therefore, Q&A highlights and guidance clarifications could not be assessed [List: earnings-call-transcript not found].

Estimates Context

  • S&P Global consensus estimates for EPS and revenue were not available for ECBK for Q1–Q3 2025; as a result, beats/misses versus Wall Street estimates cannot be determined at this time.*
  • Actual quarterly “revenue” (defined by S&P as net interest & dividend income after provision plus noninterest income) was $6.93M (Q1), $6.90M (Q2), and $8.61M (Q3).*

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Sequential acceleration: NIM expanded from 2.08% to 2.19% and diluted EPS rose from $0.17 to $0.29, supported by higher loan yields and disciplined funding costs .
  • Healthy growth with strong credit: Loans +14.9% YTD and deposits +11.0% YTD; ACL coverage (0.76%) and NPA ratios (0.07%) remain conservative, supporting durability .
  • Funding mix is shifting: Larger CDs and money market balances alongside higher FHLB advances fund loan growth; monitor wholesale funding sensitivity amid rate volatility .
  • Expense trajectory: Q3 noninterest expense rose 6.9% YoY; earlier ERTC benefits helped, but continued efficiency gains are important as the franchise scales .
  • Capital return: Ongoing repurchases accretive to book value per share; BVPS increased to $19.18, reinforcing shareholder value focus .
  • Limited Street coverage: With consensus estimates unavailable, near-term stock moves may hinge on reported NIM trajectory, credit quality stability, and deposit/loan growth rather than “beat/miss” optics.*
  • Watch catalysts into Q4: Continued margin expansion, loan mix quality, and deposit cost management are key drivers; any macro/tariff shocks could affect funding costs and loan demand .

*Values retrieved from S&P Global.