ECB Bancorp, Inc. Liquidation Value

ECB Bancorp, Inc. (ECBK) is a $1.65 billion asset savings institution holding company for Everett Co-operative Bank, operating as a traditional community bank with a heavily real-estate-collateralized loan book. Under a liquidation lens at March 31, 2026, the recovery posture is modestly positive but thinly cushioned relative to book equity.

Asset-side recovery: Cash and equivalents of $111.3 million recover at 100% ($111.3M). Short-term investments of $108.2 million (interest-bearing deposits at other banks and Fed funds) are near-cash and recover at approximately 100% ($108.2M). AFS securities at fair value of $37.1 million recover at approximately 95-100% given minimal unrealized losses ($85K gross). HTM securities carry a gross unrealized loss of $3.8 million against amortized cost of $51.6 million, implying a liquidation mark of approximately $48.0 million (fair value per filing). Net loans of $1.39 billion at amortized cost (gross $1.40 billion less $10.4 million ACL) are predominantly real estate secured; applying a 65-70% gross haircut to a real-estate-dominant community bank portfolio in an orderly wind-down yields approximately $910-$960 million recovery. FHLB stock of $11.1 million redeems at par through the cooperative. PP&E of $3.4 million recovers at 50-60% ($1.7-2.0M). Intangibles and deferred tax assets ($5.0 million DTA) carry 0% recovery. BOLI of $15.5 million is generally recoverable at cash surrender value, approximately 100% ($15.5M). Other assets of $6.9 million (includes derivative asset of $266K, accrued interest of $5.3M) estimated at 70-80% recovery.

Liability side at face value: Total deposits of $1.20 billion, FHLB advances of $260.8 million, other liabilities of $14.2 million, derivative liability of $831K. Total liabilities $1.474 billion at face.

Approximate liquidation recovery to equity: ($111.3 + $108.2 + $37.1 + $48.0 + $935 [loans mid-estimate] + $11.1 + $2.0 + $15.5 + $4.5 [other]) - $1,474 = approximately $798M assets recovered vs. $1,474M liabilities = negative $676M, implying zero equity recovery.

Note: The $175.9 million book equity overstates liquidation recovery due to the loan haircut driving the bulk of the gap. MFFAIS latest CLV/LLV/OLV is reported at $111.3 million (cash only), consistent with the bank's liquid cash position. Compared to the December 31, 2025 prior filing (the annual 10-K), total assets grew $44.6 million (+2.8%), driven by deposit inflows ($67.1M) that outpaced loan growth ($19.8M) and funded a reduction in FHLB advances ($24.0M). The deposit base is now 66.4% certificates of deposit, including $152.3M brokered time deposits, creating meaningful rollover concentration risk. Interest rate swap notional increased from $120M to $150M quarter-over-quarter, expanding the hedging program. The HTM portfolio carries a $3.8M gross unrealized loss that would surface on liquidation. Non-brokered CDs maturing within one year total $430.9M (35.9% of deposits), representing the primary liquidity pressure point in a wind-down. No goodwill or other intangibles are on the balance sheet, which is structurally favorable under this lens. Capital ratios well above well-capitalized thresholds (CET1 13.6%, leverage 9.83%) provide regulatory buffer but do not alter the liquidation math materially given the loan book haircut.