ECB Bancorp, Inc. Reports Third Quarter Results

For Immediate Release Date: October 22, 2026 Contact: Richard J. O’Neil, Jr. President and Chief Executive Officer Phone: 617-387-1110 Email: rjoneil@everettbank.com ECB Bancorp, Inc. Reports Third Quarter Results EVERETT, MA, October 22, 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 $3.4 million, or $0.40 per diluted share for the quarter ended September 30, 2026, as compared to $3.3 million, or $0.39 per diluted share for the prior quarter. FINANCIAL HIGHLIGHTS (dollars in thousands, except share data) Q3 2026 Q2 2026 Q3 2025 Net interest and dividend income $ 10,790 $ 10,035 $ 8,456 Net income $ 3,391 $ 3,261 $ 2,439 Diluted earnings per share $ 0.40 $ 0.39 $ 0.29 Return on average assets 0.80 % 0.79 % 0.63 % Return on average equity 7.36 % 7.32 % 5.72 % Net interest margin 2.56 % 2.45 % 2.19 % Efficiency ratio (1) 56.56 % 56.21 % 60.91 % Book value per common share $ 21.16 $ 20.56 $ 19.18 Total non-performing assets to total assets 0.08 % 0.09 % 0.07 % Total assets $ 1,693,081 $ 1,671,515 $ 1,552,653 Total loans $ 1,459,613 $ 1,404,152 $ 1,316,366 Total deposits $ 1,210,971 $ 1,192,702 $ 1,108,605 (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 with our third quarter results, which reflect solid momentum with growth of the balance sheet and continued improvement in our earnings. Net income increased to $3.4 million, or $0.40 per diluted share, compared to $3.3 million in the prior quarter and $2.4 million in the third quarter of last year. Our net interest margin expanded 11 basis points to 2.56%, driven by loan growth and higher yields on interest-earning assets. Our efficiency ratio of 56.6% reflects our continued focus on disciplined expense management, even as we invest in the growth of our franchise. Loan growth was strong, with total loans increasing $55.5 million, or 3.9%, during the quarter. At the same time, deposits excluding brokered deposits grew $63.2 million. Credit quality remains strong, with non-performing assets of just 0.08% of total assets, and book value per share increased to $21.16. We are excited to open our new Medford branch, our fourth full-service location, which expands our presence in our core market and positions us for continued growth in the communities we serve. We remain focused on disciplined growth, prudent risk management and building long-term value for our shareholders." BALANCE SHEET Total assets were $1.69 billion at September 30, 2026, as compared to $1.67 billion at June 30, 2026, or an increase of $21.6 million, or 1.3%. Cash and cash equivalents were $96.1 million at September 30, 2026, as compared to $124.0 million at June 30, 2026, or a decrease of $27.9 million, or 22.5%. The decrease in cash and cash equivalents was primarily due to loan growth that exceeded deposit growth for the quarter. Interest-earning time deposits were $2.2 million at September 30, 2026, as compared to $14.2 million at June 30, 2026, or a decrease of $12.0 million, or 84.2%. This decrease was due to maturities of interest-earning time deposits. Investments in securities available for sale were $48.7 million at September 30, 2026, as compared to $40.1 million at June 30, 2026, or an increase of $8.6 million, or 21.5%. This increase was driven by purchases of new securities, partially offset by increased unrealized losses in the portfolio due to market rate increases. Investments in securities held to maturity were $43.4 million at September 30, 2026, as compared to $50.5 million at June 30, 2026, or a decrease of $7.1 million, or 14.0%. This decrease was due to maturities, calls and principal paydowns of securities. Total gross loans were $1.46 billion at September 30, 2026, as compared to $1.40 billion at June 30, 2026, or an increase of $55.5 million, or 3.9%. Loan growth during the quarter was broad-based, with increases in every loan category, led by commercial real estate, multi-family and construction loans. • Commercial real estate loans increased $14.6 million, or 4.2%, to $359.5 million at September 30, 2026 from $344.8 million at June 30, 2026. • Multi-family real estate loans increased $14.2 million, or 3.4%, to $431.8 million at September 30, 2026 from $417.6 million at June 30, 2026. • Construction loans increased $13.8 million, or 14.4%, to $109.6 million at September 30, 2026 from $95.8 million at June 30, 2026. • One-to-four family residential real estate loans increased $9.4 million, or 1.9%, to $497.7 million at September 30, 2026 from $488.3 million at June 30, 2026. • Home equity lines of credit increased $2.6 million, or 4.8%, to $57.1 million at September 30, 2026 from $54.5 million at June 30, 2026. • Consumer loans increased $620,000, or 364.7%, to $790,000 at September 30, 2026 from $170,000 at June 30, 2026. • Commercial loans increased $157,000, or 5.2%, to $3.2 million at September 30, 2026 from $3.0 million at June 30, 2026. Total deposits were $1.21 billion at September 30, 2026, as compared to $1.19 billion at June 30, 2026, or an increase of $18.3 million, or 1.5%. Deposits excluding brokered deposits increased $63.2 million during the quarter, while brokered deposits decreased $45.0 million. • Money market deposit accounts increased $47.2 million, or 20.9%, to $273.5 million at September 30, 2026 from $226.3 million at June 30, 2026. • Interest-bearing checking accounts increased $2.5 million, or 13.8%, to $20.2 million at September 30, 2026 from $17.7 million at June 30, 2026. • Savings accounts increased $2.3 million, or 3.1%, to $78.6 million at September 30, 2026 from $76.3 million at June 30, 2026. • Demand deposit accounts decreased $10.7 million, or 10.4%, to $92.1 million at September 30, 2026 from $102.8 million at June 30, 2026. • Certificates of deposit decreased $23.1 million, or 3.0%, to $746.6 million at September 30, 2026 from $769.7 million at June 30, 2026. The decrease reflected a $45.0 million reduction in brokered certificates of deposit, partially offset by growth in retail certificates of deposit. FHLB advances were $282.5 million at September 30, 2026, as compared to $285.0 million at June 30, 2026, or a decrease of $2.5 million, or 0.9%. Total shareholders’ equity was $184.9 million as of September 30, 2026, as compared to $179.9 million as of June 30, 2026, or an increase of $5.0 million, or 2.8%. This increase is primarily the result of earnings of $3.4 million and an increase in accumulated other comprehensive income (“AOCI”) of $1.2 million. The increase in AOCI was driven by an increase in the fair value of cash flow hedges, partially offset by increased unrealized losses in the portfolio of securities available for sale. Our book value per share increased by $0.60 to $21.16 at September 30, 2026 from $20.56 at June 30, 2026. NET INTEREST AND DIVIDEND INCOME Net interest and dividend income before provision for credit losses was $10.8 million for the quarter ended September 30, 2026, as compared to $10.0 million for the prior quarter, representing an increase of $755,000, or 7.5%. The increase was primarily driven by higher average loan balances and higher yields on loans, along with lower average certificate of deposit balances, partially offset by higher average balances of FHLB advances and money market accounts. Interest and dividends on securities for the third quarter included $100,000 of accelerated discount accretion recognized upon the call of an investment security. The resulting net interest margin increased 11 basis points to 2.56% for the quarter ended September 30, 2026 as compared to 2.45% for the prior quarter. The linked-quarter increase reflected a 7 basis point increase in the yield on interest-earning assets to 5.53%, while the cost of interest-bearing liabilities decreased 1 basis point to 3.52%. The provision for credit losses was $205,000 for the quarter ended September 30, 2026, as compared to $61,000 for the prior quarter. The higher provision primarily reflected loan growth during the third quarter, partially offset by a lower provision for off-balance sheet commitments. The combination of these items resulted in net interest and dividend income after provision for credit losses of $10.6 million for the quarter ended September 30, 2026, as compared to $10.0 million for the prior quarter, or an increase of $611,000, or 6.1%. NONINTEREST INCOME Noninterest income was $304,000 for the quarter ended September 30, 2026, unchanged from $304,000 for the prior quarter. A decrease of $5,000 in net gains on sales of loans was offset by increases of $3,000 in other income and $2,000 in income from bank-owned life insurance. NONINTEREST EXPENSE Noninterest expense was $6.3 million for the quarter ended September 30, 2026, as compared to $5.8 million for the prior quarter, or an increase of $463,000, or 8.0%. Salaries and employee benefits were $3.9 million for the quarter ended September 30, 2026, as compared to $3.6 million for the prior quarter, or an increase of $256,000, or 7.1%. The increase was primarily driven by new hires related to the Company’s new Medford branch, as well as higher incentive accruals. Professional fees were $325,000 for the quarter ended September 30, 2026, as compared to $248,000 for the prior quarter, or an increase of $77,000, or 31.0%. The increase was primarily attributable to audit-related costs. Advertising and promotions expenses were $390,000 for the quarter ended September 30, 2026, as compared to $317,000 for the prior quarter, or an increase of $73,000, or 23.0%. The increase reflected continued investment in the Company’s marketing initiatives, including marketing related to the new Medford branch, new branding and campaign development, and the launch of new digital advertising initiatives. Data processing expense was $386,000 for the quarter ended September 30, 2026, as compared to $337,000 for the prior quarter, or an increase of $49,000, or 14.5%, primarily due to a $56,000 contract termination fee incurred during the quarter. INCOME TAXES We recorded a provision for income tax expense of $1.2 million for the quarter ended September 30, 2026, as compared to a provision for income tax expense of $1.2 million for the prior quarter, reflecting effective tax rates of 26.5% and 27.0%, 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 September 30, 2026 was $10.3 million and 0.71%, respectively, as compared to $10.2 million and 0.73%, respectively, as of June 30, 2026. For the quarter ended September 30, 2026, the Company recorded $2,000 in net charge-offs, as compared to $2,000 for the prior quarter. Total non-performing assets were $1.4 million, or 0.08%, of total assets as of September 30, 2026, as compared to $1.5 million, or 0.09%, of total assets as of June 30, 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 four full-service branch offices located in Everett, Lynnfield, Woburn and Medford*, 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. *Medford branch opened on October 13, 2026. 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 loan 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 September 30, 2026 Change From September 30, 2026 June 30, 2026 September 30, 2025 June 30, 2026 September 30, 2025 ASSETS Cash and due from banks $ 2,707 $ 2,943 $ 3,351 $ (236 ) -8.0 % $ (644 ) -19.2 % Short-term investments 93,377 121,026 99,269 (27,649 ) -22.8 % (5,892 ) -5.9 % Total cash and cash equivalents 96,084 123,969 102,620 (27,885 ) -22.5 % (6,536 ) -6.4 % Interest-earning time deposits 2,248 14,245 7,998 (11,997 ) -84.2 % (5,750 ) -71.9 % Investments in available-for-sale securities (at fair value) 48,686 40,065 31,020 8,621 21.5 % 17,666 57.0 % Investments in held-to-maturity securities, at amortized cost (fair values of $38,674 at September 30, 2026, $46,837 at June 30, 2026 and $54,729 at September 30, 2025) 43,388 50,452 58,485 (7,064 ) -14.0 % (15,097 ) -25.8 % Loans held-for-sale — — — — — — — Loans, net of allowance for credit losses of $10,330 at September 30, 2026, $10,238 at June 30, 2026 and $10,015 at September 30, 2025 1,448,546 1,393,194 1,305,547 55,352 4.0 % 142,999 11.0 % Federal Home Loan Bank stock, at cost 13,290 12,203 11,102 1,087 8.9 % 2,188 19.7 % Premises and equipment, net 4,591 3,496 3,427 1,095 31.3 % 1,164 34.0 % Accrued interest receivable 5,577 5,266 5,251 311 5.9 % 326 6.2 % Deferred tax asset, net 4,848 4,982 5,612 (134 ) -2.7 % (764 ) -13.6 % Bank-owned life insurance 15,777 15,656 15,299 121 0.8 % 478 3.1 % Other assets 10,046 7,987 6,292 2,059 25.8 % 3,754 59.7 % Total assets $ 1,693,081 $ 1,671,515 $ 1,552,653 $ 21,566 1.3 % $ 140,428 9.0 % LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing $ 92,125 $ 102,806 $ 84,759 $ (10,681 ) -10.4 % $ 7,366 8.7 % Interest-bearing 1,118,846 1,089,896 1,023,846 28,950 2.7 % 95,000 9.3 % Total deposits 1,210,971 1,192,702 1,108,605 18,269 1.5 % 102,366 9.2 % Federal Home Loan Bank advances 282,500 285,000 259,815 (2,500 ) -0.9 % 22,685 8.7 % Other liabilities 14,740 13,934 14,924 806 5.8 % (184 ) -1.2 % Total liabilities 1,508,211 1,491,636 1,383,344 16,575 1.1 % 124,867 9.0 % 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: 8,737,641 shares, 8,747,150 shares and 8,825,827 shares at September 30, 2026, June 30, 2026 and September 30, 2025, respectively 87 87 88 — 0.0 % (1 ) -1.1 % Additional paid-in capital 83,036 82,770 83,162 266 0.3 % (126 ) -0.2 % Retained earnings 105,391 102,000 93,021 3,391 3.3 % 12,370 13.3 % Accumulated other comprehensive income (loss) 1,953 712 (998 ) 1,241 174.3 % 2,951 -295.7 % Unearned compensation - ESOP (5,597 ) (5,690 ) (5,964 ) 93 -1.6 % 367 -6.2 % Total shareholders' equity 184,870 179,879 169,309 4,991 2.8 % 15,561 9.2 % Total liabilities and shareholders' equity $ 1,693,081 $ 1,671,515 $ 1,552,653 $ 21,566 1.3 % $ 140,428 9.0 % Book value per common share $ 21.16 $ 20.56 $ 19.18 $ 0.60 2.9 % $ 1.98 10.3 % Regulatory Capital Ratios (Everett Co-operative Bank) Total capital to risk weighted assets 14.52 % 14.90 % 14.68 % -0.38 % -0.16 % Tier 1 capital to risk weighted assets 13.59 % 13.94 % 13.71 % -0.35 % -0.12 % Tier 1 capital to average assets 9.82 % 9.81 % 9.85 % 0.01 % -0.03 % ECB Bancorp, Inc. and Subsidiary Consolidated Statements of Income (unaudited) (dollars in thousands except share data) For the Three Months Ended Three Months Ended September 30, 2026 Change From Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 June 30, 2026 September 30, 2025 Interest and dividend income: Interest and fees on loans $ 20,602 $ 19,748 $ 18,153 $ 854 4.3 % $ 2,449 13.5 % Interest and dividends on securities 1,319 1,193 1,032 126 10.6 % 287 27.8 % Interest on short-term investments 990 1,058 1,204 (68 ) -6.4 % (214 ) -17.8 % Interest on interest-earning time deposits 203 139 28 64 46.0 % 175 625.0 % Total interest and dividend income 23,114 22,138 20,417 976 4.4 % 2,697 13.2 % Interest expense: Interest on deposits 9,227 9,458 9,548 (231 ) -2.4 % (321 ) -3.4 % Interest on Federal Home Loan Bank advances 3,097 2,645 2,413 452 17.1 % 684 28.3 % Total interest expense 12,324 12,103 11,961 221 1.8 % 363 3.0 % Net interest and dividend income 10,790 10,035 8,456 755 7.5 % 2,334 27.6 % Provision for credit losses 205 61 183 144 236.1 % 22 12.0 % Net interest and dividend income after provision for credit losses 10,585 9,974 8,273 611 6.1 % 2,312 27.9 % Noninterest income: Customer service fees 152 152 147 — 0.0 % 5 3.4 % Income from bank-owned life insurance 121 119 121 2 1.7 % — 0.0 % Net gain on sales of loans 4 9 55 (5 ) -55.6 % (51 ) -92.7 % Other income 27 24 18 3 12.5 % 9 50.0 % Total noninterest income 304 304 341 — 0.0 % (37 ) -10.9 % Noninterest expense: Salaries and employee benefits 3,863 3,607 3,373 256 7.1 % 490 14.5 % Director compensation 200 199 204 1 0.5 % (4 ) -2.0 % Occupancy and equipment 283 288 254 (5 ) -1.7 % 29 11.4 % Data processing 386 337 331 49 14.5 % 55 16.6 % Computer software and licensing 121 113 116 8 7.1 % 5 4.3 % Advertising and promotions 390 317 172 73 23.0 % 218 126.7 % Professional fees 325 248 298 77 31.0 % 27 9.1 % Federal Deposit Insurance Corporation deposit insurance 255 242 237 13 5.4 % 18 7.6 % Other expense 452 461 373 (9 ) -2.0 % 79 21.2 % Total noninterest expense 6,275 5,812 5,358 463 8.0 % 917 17.1 % Income before income tax expense 4,614 4,466 3,256 148 3.3 % 1,358 41.7 % Income tax expense 1,223 1,205 817 18 1.5 % 406 49.7 % Net income $ 3,391 $ 3,261 $ 2,439 130 4.0 % 952 39.0 % Share data: Weighted average shares outstanding, basic 7,989,369 8,001,325 8,023,681 (11,956 ) -0.1 % (34,312 ) -0.4 % Weighted average shares outstanding, diluted 8,393,169 8,336,695 8,274,506 56,474 0.7 % 118,663 1.4 % Earnings per share, basic $ 0.42 $ 0.41 $ 0.30 0.01 2.4 % 0.12 40.0 % Earnings per share, diluted $ 0.40 $ 0.39 $ 0.29 0.01 2.6 % 0.11 37.9 % AVERAGE BALANCE, RATE & YIELD ANALYSIS For the Three Months Ended September 30, 2026 June 30, 2026 September 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 $ 1,429,432 $ 20,602 5.72 % $ 1,393,019 $ 19,748 5.69 % $ 1,302,904 $ 18,153 5.53 % Securities (1) 90,454 1,126 4.94 89,533 991 4.44 86,398 844 3.88 Short-term investments 105,324 990 3.73 115,440 1,058 3.68 108,653 1,204 4.40 Interest-earning time deposits 19,659 203 4.10 13,612 139 4.10 2,548 28 4.36 Total interest-earning assets 1,644,869 22,921 5.53 % 1,611,604 21,936 5.46 % 1,500,503 20,229 5.35 % Non-interest-earning assets 43,886 40,113 39,057 Total assets $ 1,688,755 $ 1,651,717 $ 1,539,560 Interest-bearing liabilities: Checking accounts 20,334 5 0.10 % 19,415 4 0.08 % 18,226 4 0.09 % Savings accounts 76,004 293 1.53 78,815 302 1.54 91,144 481 2.09 Money market accounts 246,529 1,912 3.08 221,139 1,593 2.89 217,543 1,846 3.37 Certificates of deposit 734,424 7,017 3.79 785,497 7,559 3.86 696,263 7,217 4.11 Total interest-bearing deposits 1,077,291 9,227 3.40 1,104,866 9,458 3.43 1,023,176 9,548 3.70 Federal Home Loan Bank advances 310,652 3,097 3.96 269,032 2,645 3.94 243,673 2,413 3.93 Total interest-bearing liabilities 1,387,943 12,324 3.52 % 1,373,898 12,103 3.53 % 1,266,849 11,961 3.75 % Non-interest-bearing demand deposits 104,073 85,352 89,252 Non-interest-bearing liabilities 13,883 13,738 14,165 Total liabilities 1,505,899 1,472,988 1,370,266 Shareholders' equity 182,856 178,729 169,294 Total liabilities and shareholders' equity $ 1,688,755 $ 1,651,717 $ 1,539,560 Net interest income $ 10,597 $ 9,833 $ 8,268 Net interest rate spread (2) 2.01 % 1.93 % 1.60 % Net interest-earning assets (3) $ 256,926 $ 237,706 $ 233,654 Net interest margin (4) 2.56 % 2.45 % 2.19 % Average interest-earning assets to average interest-bearing liabilities 118.51 % 117.30 % 118.44 % (1) Excludes interest and dividends on cost method investments of $193,000, $202,000 and $188,000 for the three months ended September 30, 2026, June 30, 2026 and September 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.