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ECB Bancorp Inc Reports Operating Results (10-Q)

November 09, 2009 | About:
10qk

10qk

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ECB Bancorp Inc (ECBE) filed Quarterly Report for the period ended 2009-09-30.

Ecb Bancorp Inc has a market cap of $36.29 million; its shares were traded at around $12.76 with a P/E ratio of 18.76 and P/S ratio of 0.79. The dividend yield of Ecb Bancorp Inc stocks is 5.72%. 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 September 30, 2009, we had consolidated assets of approximately $858.7 million, total loans of approximately $573.8 million, total deposits of approximately $696.6 million and shareholders equity of approximately $87.9 million. For the three months ended September 30, 2009, we had income available to common shareholders of $83 thousand or $0.03 basic and diluted earnings per share, compared to income available to common shareholders of $1.0 million or $0.35 basic and diluted earnings per share for the three months ended September 30, 2008. For the nine months ended September 30, 2009, we had income available to common shareholders of $1.7 million or $0.58 basic and diluted earnings per share, compared to income available to common shareholders of $3.2 million or $1.09 basic and diluted earnings per share for the nine months ended September 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 September 30, 2009 was $7.1 million, an increase of $1.8 million or 33.5% when compared to net interest income of $5.3 million for the three months ended September 30, 2008. For the nine months ended September 30, 2009, net interest income was $19.7 million, an increase of $4.1 million or 26.3% when compared to net interest income of $15.6 million for the period in 2008

Interest income increased $446 thousand or 4.5% for the three months ended September 30, 2009 compared to the same three months of 2008. Interest income increased $1.5 million or 5.0% for the nine months ended September 30, 2009 compared to the same nine months in 2008. The increases for the three and nine months ended September 30, 2009 are due to the increase in the volume of our average earning assets which was partially offset by decreases in the rates earned on these earning assets. The tax equivalent yield on average earning assets decreased 56 basis points for the quarter ended September 30, 2009 to 5.19% from 5.75% for the same period in 2008. For the first nine months of 2009, the yield on average earning assets, on a tax-equivalent basis, decreased 87 basis points to 5.20% compared to 6.07% at September 30, 2008. Management attributes the decrease in the yield on our earning assets to the decrease in short-term market interest rates. Approximately $335.4 million or 58.5% of our loan portfolio consists of variable rate loans that adjust with the movement of the Banks prime rate. As a result, composite yield

Our average cost of funds during the third quarter of 2009 was 1.90%, a decrease of 121 basis points when compared to 3.11% for the third quarter of 2008. Average rates paid on bank certificates of deposit decreased 156 basis points from 3.87% for the quarter ended September 30, 2008 to 2.31% for the quarter ended September 30, 2009, while our average cost of borrowed funds decreased 121 basis points during the third quarter of 2009 compared to the same period in 2008. Total interest expense decreased $1.3 million or 29.1% during the third quarter of 2009 compared to the same period in 2008, primarily the result of decreased market rates paid on these liabilities. For the nine months ended September 30, 2009, our cost of funds was 2.18% a decrease of 116 basis points when compared to 3.34% for the same period in 2008. Average rates paid on bank certificates of deposit decreased 152 basis points from 4.22% to 2.70% for the first nine months of 2009, while our cost of borrowed funds decreased 135 basis points compared to the same period a year ago. Total interest expense decreased $2.6 million or 19.2% during the first nine 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 $131.7 million for the first nine months of 2009 compared with the same period in 2008.

Read the The complete Report

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10qk
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