ECB Bancorp Inc. operations are primarily retail oriented and directed toward individuals small- and medium-sized businesses and local governmental units located in its banking markets and its deposits and loans are derived primarily from customers in its banking markets. While the Bank provides most traditional commercial and consumer banking services its principal activities are the taking of demand and time deposits and the making of secured and unsecured loans. ECB Bancorp Inc has a market cap of $50.6 million; its shares were traded at around $17.785 with a P/E ratio of 14.9 and P/S ratio of 1.1. The dividend yield of ECB Bancorp Inc stocks is 4.1%. ECB Bancorp Inc had an annual average earning growth of 13.7% over the past 10 years. GuruFocus rated ECB Bancorp Inc the business predictability rank of 2.5-star.
Highlight of Business Operations:As of March 31, 2009, we had consolidated assets of approximately $865.4 million, total loans of approximately $550.6 million, total deposits of approximately $688.1 million and shareholders equity of approximately $86.9 million. For the three months ended March 31, 2009, we had income available to common shareholders of $1.0 million or $0.37 basic and diluted earnings per share, compared to income available to common shareholders of $1.0 million, or $0.36 basic and diluted earnings per share for the three months ended March 31, 2008.
Net interest income (the difference between the interest earned on assets, such as loans and investment securities, and the interest paid on liabilities, such as deposits and other borrowings) is our primary source of operating income. Net interest income for the three months ended March 31, 2009 was $ 6.0 million compared to $5.0 million for the three months ended March 31, 2008.
Interest income increased $545 thousand or 5.6% for the three months ended March 31, 2009 compared to the same three months of 2008. The increase for the three months ended March 31, 2009 is due to the increase in the volume of our average earning assets which was partially offset by decreases in the rates paid on these earning assets. Earning asset increased $188.5 million as compared to the same period in 2008. We funded the increases in interest-earning assets primarily with certificates of deposit (CDs) and borrowed funds. The tax equivalent yield on average earning assets decreased 120 basis points for the quarter ended March 31, 2009 to 5.25% from 6.45% for the same period in 2008. Management attributes the decrease in the yield on our earning assets to the decrease in short-term market interest rates. Approximately $292.8 million or 53.2% of our loan portfolio consists of variable rate loans that adjust with the movement of the national prime rate. As a result, composite yield on our loans decreased approximately 133 basis points for the first quarter of 2009 compared to the first quarter of 2008.
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