ECB Bancorp, Inc. /MD/ (ECBK)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 EPS was $0.17 (vs $0.09 in Q4 2023) on net income of $1.45M, driven by NIM expansion to 1.94% and a credit loss benefit; sequential EPS rose vs Q3’s $0.14 .
• Deposit growth outpaced loan growth in 2024 ($130.3M, +15.0% deposits vs $96.7M, +9.3% loans), boosting liquidity (cash & equivalents +32.4% YoY to $157.6M) and supporting book value per share increase to $18.50 .
• Noninterest expense rose 8.8% YoY in Q4 on higher bonuses/commissions and stock-based comp; full-year expense growth reflected 2023 Equity Incentive Plan costs .
• Asset quality remained strong (NPAs 0.14% of assets; ACL 0.78% of loans; negligible charge-offs), underscoring resilient credit performance despite higher rates .
• No formal guidance or call transcript was available in our document set; narrative focuses on disciplined growth, liquidity, and capital return via buybacks (APIC down $2.7M from repurchases) .

What Went Well and What Went Wrong

• What Went Well

  • Net interest margin expanded to 1.94% (from 1.89% YoY), as asset yield increases outpaced funding cost increases; net interest and dividend income rose 14.2% YoY in Q4 .
  • Deposits grew faster than loans in 2024, enhancing liquidity (deposits +$130.3M, 15.0%; cash & equivalents +$38.6M YoY), enabling continued balance sheet growth without incremental wholesale funding .
  • Management highlighted tangible book value per share growth to $18.50 aided by the stock repurchase program while maintaining “well capitalized” status: “we continue to enhance our franchise value through orderly and diligent balance sheet growth and expense control” .

• What Went Wrong

  • Noninterest expense increased 8.8% YoY in Q4, driven by higher compensation (bonuses, commissions, stock-based) and implementation costs for new cash management products .
  • Funding mix continues to rely on higher-cost deposits (CDs +$107.0M YoY to $605.5M) and stable FHLB advances ($234.0M), pressuring spread despite Q4 NIM improvement .
  • Full-year NIM declined to 1.86% (from 2.11% in 2023) as rate pressure on liabilities outpaced asset yield increases over the year, partially offset by Q4 strength .

Financial Results

Loan Mix (End-of-Period Balances)

Key Balance Sheet & Capital KPIs

Guidance Changes

Note: The company did not issue quantitative revenue/EPS/margin guidance in Q4 materials .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in our document set; themes below reflect management’s press releases across quarters.

Management Commentary

• “With just over two years as a public company, we continue to enhance our franchise value through orderly and diligent balance sheet growth and expense control… deposit growth of $130.3 million (15.0%) has outpaced our loan growth of $96.7 million (9.3%)… tangible book value per share from $17.75 to $18.50… aided by the implementation of our stock repurchase program… we have maintained our standing as a ‘well capitalized’ institution…” — Richard J. O’Neil, Jr., President & CEO .
• “We remain focused on orderly and diligent balance sheet growth and maintaining strong asset quality… thoughtfully managing expenses and… enhancing franchise value every day.” — CEO, Q3 release .
• “In an environment of increasing economic uncertainty our continuing attention to, and focus on, our customers, expenses, credit and responsible growth continue to be our guiding principles.” — CEO, Q2 release .

Q&A Highlights

• A public Q4 2024 earnings call transcript was not available in our document set; no analyst Q&A themes or clarifications could be extracted.

Estimates Context

• We attempted to retrieve S&P Global consensus for Q4 2024 EPS and revenue; data was unavailable due to access limits at the time of query. Accordingly, we cannot categorize beats/misses vs consensus for this quarter. We will update when S&P Global estimates are accessible.

Key Takeaways for Investors

• Sequential earnings momentum with Q4 EPS at $0.17 and NIM expansion to 1.94% suggests stabilizing spread dynamics as asset yields reprice faster than funding costs late in 2024 .
• Funding mix remains CD-heavy with growing money market balances; deposit beta remains a watch item, but deposit growth outpacing loans strengthened liquidity and cash balances into year-end .
• Expense growth reflects stock-based compensation and incentive costs; underlying discipline visible via reduced advertising and ongoing process investments (cash management product rollout) .
• Credit remains a differentiator: minimal net charge-offs, low NPAs (0.14% of assets), and ACL at 0.78% provide cushion against macro volatility .
• Capital return continues via buybacks (APIC -$2.7M in 2024) while maintaining strong capital ratios; BVPS advanced to $18.50, supporting valuation resilience .
• Absent formal guidance and no available call transcript, near-term stock reaction likely hinges on perceived durability of NIM gains, deposit mix normalization, and expense trajectory into 2025.
• Monitor 1H 2025: deposit mix shifts (CD rollovers), pace of loan growth (multi-family and CRE), and any additional tech/product spend impacting opex, alongside broader rate path sensitivity evidenced in full-year NIM compression despite a strong Q4 .

Sources: Q4 2024 8-K 2.02 and Exhibit 99.1 press release and financial statements ; Q3 2024 8-K 2.02 press release and financials ; Q2 2024 8-K 2.02 press release and financials .