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In a quarter that included its conversion to a stock bank, Everett Bank saw a third quarter earnings loss, driven by a donation to its new charitable foundation.

Everett Bank’s holding company, ECB Bancorp Inc., had a third quarter net loss of $1.03 million, or a loss per diluted share of $0.12, compared to net income of $1.34 million in the third quarter of 2021, before the bank’s stock conversion, according to the bank’s quarterly report filed with the Securities and Exchange Commission.

For the nine months ending Sept. 30, the bank had net income of $1.74 million compared to net income of $4.04 million for the nine months ending Sept. 30, 2021.

The bank had completed its stock conversion and had an initial public offering on July 27, selling approximately 8.9 million shares of common stock at $10 per share. Everett Bank had announced plans to go public in March.

As part of the initial public offering, Everett bank donated $3.2 million, representing 260,000 shares of common stock, to the Everett Co-operative Bank Charitable Foundation. The bank also donated $600,000 in cash to the foundation.

The bank’s year-over-year noninterest expenses increased by $4.2 million, or 138.3 percent, to $7.3 million in the third quarter. In addition to the charitable contribution, the bank in the quarterly report pointed to a 33 percent increase in salaries and employee benefits, both for normal salary increases and new employees.

“The recent hires of several executive officers and other seasoned bankers should allow us to implement our growth strategy,” Everett Bank said.

Everett Bank’s total assets increased 31.1 percent, or $207.1 million, from Dec. 31 to $873.6 million at the end of the third quarter. The bank attributed the increase in part to increases in loans.

Net loans increased year-to-date by $218.2 million, or 42.2 percent, to $735.3 million in the third quarter. Everett Bank said the largest increases in the loan portfolio were in multifamily, one- to four-family residential, commercial real estate and construction loans.

Deposits increased $81 million, or 14.2 percent, since to Dec. 31 to $652.7 million in the third quarter. The bank said certificates of deposit increased year-to-date by $67.5 million, or 29.8 percent, and savings accounts increased by $29.4 million, or 58.7 percent. The bank did see a decrease in money market accounts of $23 million, or 12.6 percent.

Everett Bank’s Donation Led to Third-Quarter Loss

by Diane McLaughlin time to read: 1 min
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