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ECB Bancorp Inc Reports Operating Results (10-Q)

August 10, 2009 | About:

ECB Bancorp Inc (ECBE) filed Quarterly Report for the period ended 2009-06-30.

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 $46.93 million; its shares were traded at around $16.5 with a P/E ratio of 16.5 and P/S ratio of 1.02. The dividend yield of ECB Bancorp Inc stocks is 4.42%. 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 June 30, 2009, we had consolidated assets of approximately $877.5 million, total loans of approximately $566.6 million, total deposits of approximately $703.5 million and shareholders equity of approximately $85.8 million. For the three months ended June 30, 2009, we had income available to common shareholders of $532 thousand or $0.19 basic and diluted earnings per share, compared to income available to common shareholders of $1.1 million, or $0.38 basic and diluted earnings per share for the three months ended June 30, 2008. For the six months ended June 30, 2009, we had income available to common shareholders of $1.6 million or $0.55 basic and diluted earnings per share, compared to income available to common shareholders of $2.1 million or $0.74 basic and diluted earnings per share for the six months ended June 30, 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 June 30, 2009 was $6.6 million, an increase of $1.3 million or 24.2% when compared to net interest income of $5.3 million for the three months ended June 30, 2008. For the six months ended June 30, 2009, net interest income was $12.7 million, an increase of $2.3 million or 22.7% when compared to net interest income of $10.3 million for the period in 2008

Interest income increased $477 thousand or 4.9% for the three months ended June 30, 2009 compared to the same three months of 2008. Interest income increased $1.0 million or 5.2% for the six months ended June 30, 2009 compared to the same six months in 2008. The increases for the three and six months ended June 30, 2009 are 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. The tax equivalent yield on average earning assets decreased 85 basis points for the

Our average cost of funds during the second quarter of 2009 was 2.12%, a decrease of 109 basis points when compared to 3.21% for the second quarter of 2008. Average rates paid on bank certificates of deposit decreased 150 basis points from 4.13% for the quarter ended June 30, 2008 to 2.63% for the quarter ended June 30, 2009, while our average cost of borrowed funds decreased 133 basis points during the second quarter of 2009 compared to the same period in 2008. Total interest expense decreased $818 thousand or 18.3% during the second quarter of 2009 compared to the same period in 2008, primarily the result of decreased market rates paid on these liabilities. For the six months ended June 30, 2009, our cost of funds was 2.32% a decrease of 115 basis points when compared to 3.47% for the same period in 2008. Average rates paid on bank certificates of deposit decreased 153 basis points from 4.42% to 2.89% for the first six months of 2009, while our cost of borrowed funds decreased 144 basis points compared to the same period a year ago. Total interest expense decreased $1.3 million or 14.3% during the six months of 2009 compared to the same period in 2008, primarily the result of decreased market rates paid on these liabilities. The volume of average interest-bearing liabilities increased approximately $151.1 million for the six months of 2009 compared with the same period in 2008.

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Rating: 4.5/5 (2 votes)

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