Enterprise Bancorp, Inc. Announces Second Quarter Financial Results
Enterprise Bancorp, Inc. (NASDAQ: EBTC) reported its Q2 2024 financial results, with net income of $9.5 million, or $0.77 per diluted share. This represents an increase from Q1 2024 but a slight decrease from Q2 2023. Key highlights include:
- Net interest margin of 3.19%, down 1 basis point from Q1 2024
- Net interest income increased 2.8% quarter-over-quarter
- Total loans grew 3.1% and total deposits increased 3.5%
- Wealth assets under management reached $1.40 billion, up 1.7%
The bank maintained strong credit quality with nominal charge-offs year-to-date. CEO Steven Larochelle emphasized the bank's solid performance despite challenges from higher deposit costs and an inverted yield curve.
Enterprise Bancorp, Inc. (NASDAQ: EBTC) ha riportato i risultati finanziari per il secondo trimestre del 2024, con un reddito netto di 9,5 milioni di dollari, ovvero 0,77 dollari per azione diluita. Questo rappresenta un aumento rispetto al primo trimestre del 2024, ma una leggera diminuzione rispetto al secondo trimestre del 2023. Tra i punti salienti:
- Margine di interesse netto del 3,19%, in calo di 1 punto base rispetto al primo trimestre del 2024
- Reddito da interessi netti aumentato del 2,8% rispetto al trimestre precedente
- Prestiti totali cresciuti del 3,1% e depositi totali aumentati del 3,5%
- Asset di gestione patrimoniale raggiunti a 1,40 miliardi di dollari, +1,7%
La banca ha mantenuto una forte qualità creditizia con carenze nominali dall'inizio dell'anno. Il CEO Steven Larochelle ha enfatizzato la solida performance della banca nonostante le sfide dovute ai costi più elevati dei depositi e a una curva dei rendimenti invertita.
Enterprise Bancorp, Inc. (NASDAQ: EBTC) reportó sus resultados financieros del segundo trimestre de 2024, con un ingreso neto de 9.5 millones de dólares, o 0.77 dólares por acción diluida. Esto representa un aumento respecto al primer trimestre de 2024, pero una ligera disminución en comparación con el segundo trimestre de 2023. Los puntos clave incluyen:
- Margen de interés neto del 3.19%, una baja de 1 punto base respecto al primer trimestre de 2024
- Ingreso por interés neto aumentó un 2.8% en comparación con el trimestre anterior
- Préstamos totales crecieron un 3.1% y depósitos totales aumentaron un 3.5%
- Activos patrimoniales bajo gestión alcanzaron 1.40 mil millones de dólares, un aumento del 1.7%
El banco mantuvo una fuerte calidad crediticia con bajas nominales hasta la fecha. El CEO Steven Larochelle enfatizó el desempeño sólido del banco a pesar de los desafíos por los mayores costos de depósito y una curva de rendimiento invertida.
Enterprise Bancorp, Inc. (NASDAQ: EBTC)는 2024년 2분기 재무 결과를 보고했으며, 순이익은 950만 달러로, 주당 0.77달러에 해당합니다. 이는 2024년 1분기 대비 증가한 수치이지만, 2023년 2분기와 비교해 약간 감소한 수치입니다. 주요 하이라이트는 다음과 같습니다:
- 순이자 마진은 3.19%로, 2024년 1분기 대비 1bp 감소했습니다.
- 순이자 수익은 전분기 대비 2.8% 증가했습니다.
- 총 대출이 3.1% 증가하였고 총 예금이 3.5% 증가했습니다.
- 관리 자산이 14억 달러에 도달하여 1.7% 증가했습니다.
은행은 올해 초 현재 명목상 대손이 없을 정도로 강력한 신용 품질을 유지했습니다. CEO 스티븐 라로셸은 높은 예금 비용과 역전 발생한 수익 곡선에도 불구하고 은행의 견조한 성과를 강조했습니다.
Enterprise Bancorp, Inc. (NASDAQ: EBTC) a publié ses résultats financiers pour le deuxième trimestre de 2024, affichant un résultat net de 9,5 millions de dollars, soit 0,77 dollar par action diluée. Cela représente une augmentation par rapport au premier trimestre 2024, mais une légère diminution par rapport au deuxième trimestre 2023. Les faits saillants incluent :
- Marges d'intérêt nettes de 3,19%, en baisse de 1 point de base par rapport au premier trimestre 2024
- Revenus d'intérêts nets augmentés de 2,8% d'un trimestre à l'autre
- Prêts totaux en augmentation de 3,1% et dépôts totaux en hausse de 3,5%
- Actifs de gestion de patrimoine atteignant 1,40 milliard de dollars, en hausse de 1,7%
La banque a maintenu une forte qualité de crédit avec des pertes nominals depuis le début de l'année. Le PDG Steven Larochelle a souligné la performance solide de la banque malgré les défis posés par des coûts de dépôt plus élevés et une courbe de rendement inversée.
Enterprise Bancorp, Inc. (NASDAQ: EBTC) hat die Finanzergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem Nettoeinkommen von 9,5 Millionen US-Dollar, was 0,77 US-Dollar pro verwässerter Aktie entspricht. Dies stellt einen Anstieg im Vergleich zum ersten Quartal 2024 dar, jedoch einen leichten Rückgang im Vergleich zum zweiten Quartal 2023. Zu den wichtigsten Höhepunkten gehören:
- Nettozinsspanne von 3,19%, ein Rückgang um 1 Basispunkt im Vergleich zum ersten Quartal 2024
- Nettozinseinnahmen stiegen um 2,8% im Vergleich zum Vorquartal
- Gesamtdarlehen wuchsen um 3,1% und Gesamteinlagen erhöhten sich um 3,5%
- Vermögen unter Verwaltung erreichte 1,40 Milliarden US-Dollar, ein Anstieg um 1,7%
Die Bank hielt trotz nomineller abschreibungen im bisherigen Jahr eine hohe Kreditqualität aufrecht. CEO Steven Larochelle betonte die solide Leistung der Bank trotz Herausforderungen durch höhere Einlagekosten und eine invertierte Zinsstrukturkurve.
- Net income increased to $9.5 million in Q2 2024, up from $8.5 million in Q1 2024
- Net interest income grew 2.8% quarter-over-quarter
- Total loans increased by 3.1% and total deposits by 3.5%
- Wealth assets under management rose to $1.40 billion, a 1.7% increase
- Strong liquidity position with loan to deposit ratio at 89%
- Credit quality remained strong with nominal charge-offs year-to-date
- Net income decreased slightly from $9.7 million in Q2 2023 to $9.5 million in Q2 2024
- Net interest margin declined to 3.19%, down 1 basis point from Q1 2024 and 36 basis points from Q2 2023
- Non-performing loans increased to 0.47% of total loans, up from 0.32% at the end of 2023
- Higher deposit costs and inverted yield curve continue to be headwinds for the bank
Enterprise Bancorp, Inc.'s second quarter financial results present a mixed but overall positive outlook. Net income increased to
Short-term Implications: The stable net interest margin at
Long-term Implications: The 6% increase in total loans and the 7% rise in total deposits reflect a healthy growth trajectory. The company's focus on geographic expansion and customer acquisition through organic growth suggests a strategic approach that could sustain long-term profitability. However, the
From a market perspective, Enterprise Bancorp's performance in the second quarter is noteworthy. The steady growth in wealth assets under management, which increased by 1.7% to
Short-term Implications: The improved credit quality, with net recoveries of
Long-term Implications: Enterprise Bancorp's commitment to investments in team members, communities, products and technology aligns well with broader industry trends towards innovation and customer-centric services. This strategic focus can drive sustainable growth and market differentiation over time.
Enterprise Bancorp's conservative credit and reserve culture, combined with a strong balance sheet, positions it well in the compliance landscape. The adherence to sound financial practices and clear communication of financial results reflect a transparent and trustworthy organizational ethos.
Short-term Implications: The company's stable liquidity position, with interest-earning deposits exceeding wholesale funding by
Long-term Implications: The strategic focus on organic growth, geographic expansion and customer acquisition through investments in technology and community relations is likely to bolster the company’s reputation and regulatory standing over the long term. Such strategies can foster deeper customer loyalty and potentially attract regulatory favorability.
LOWELL, Mass., July 23, 2024 (GLOBE NEWSWIRE) -- Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended June 30, 2024. Net income amounted to
Selected financial results at or for the quarter ended June 30, 2024 compared to March 31, 2024 were as follows:
- The returns on average assets and average equity were
0.82% and11.55% , respectively. - Tax-equivalent net interest margin (non-GAAP) ("net interest margin") was
3.19% , a decrease of 1 basis point. - Net interest income increased
2.8% . - Total loans and total deposits increased
3.1% and3.5% , respectively. - Wealth assets under management and administration amounted to
$1.40 billion , an increase of1.7% .
Chief Executive Officer Steven Larochelle commented, "We had a solid second quarter with strong net income and loan growth funded through core deposits. Higher deposit costs and the inverted yield curve continue to be a headwind, but net interest margin was stable at
Mr. Larochelle continued, "We remain committed to our long-term strategy of geographic expansion and customer acquisition through organic growth and investment in our team members, communities, products and technology. We are well positioned with a strong balance sheet, centered around a high-quality loan portfolio and favorable liquidity, core deposit funding and capital, paired with a conservative credit and reserve culture."
Executive Chairman & Founder George Duncan stated, "I would like to thank Jack Clancy, who retired as Chief Executive Officer of the Company and the Bank on June 7, 2024, for his valuable contributions over the past 35 years. Steve Larochelle, who succeeded Jack as Chief Executive Officer, has been a key member of our leadership team for the past 27 years, including the last 15 years as our Chief Banking Officer. Steve has been a significant contributor to our success and has handled a wide range of leadership responsibilities including the areas of commercial lending, cash management, wealth management, mortgage services, and branch operations. Steve is a great champion of our culture and takes pride in strong relationships with our customers and communities. He is the perfect person for our Chief Executive Officer role, and I am excited to have him lead us forward."
President Richard W. Main added, "I echo George's comments on Steve's leadership experience and on his commitment to our culture. We pride ourselves on understanding the unique needs of each customer and offering tailored solutions that lead to long-term relationships. The strength and depth of the relationships we have developed with our customers are a testament to our unwavering commitment to their success, which in turn has contributed to our history of consistent growth."
Net Interest Income
Net interest income for the three months ended June 30, 2024, amounted to
Net Interest Margin
Net interest margin was
Asset yields for the second quarter of 2024 were
The cost of funds for the second quarter of 2024 was
Provision for Credit Losses
The provision for credit losses for the three-month periods ended June 30, 2024 and June 30, 2023 are presented below:
| Three months ended | Increase / (Decrease) | |||||||||||
| (Dollars in thousands) | June 30, 2024 | June 30, 2023 | ||||||||||
| Provision for credit losses on loans - collectively evaluated | $ | (230 | ) | $ | 2,210 | $ | (2,440 | ) | ||||
| Provision for credit losses on loans - individually evaluated | 1,358 | (167 | ) | 1,525 | ||||||||
| Provision for credit losses for loans | 1,128 | 2,043 | (915 | ) | ||||||||
| Provision for unfunded commitments | (991 | ) | 225 | (1,216 | ) | |||||||
| Provision for credit losses | $ | 137 | $ | 2,268 | $ | (2,131 | ) | |||||
The decrease in the provision for credit losses on loans of
Non-Interest Income
Non-interest income for the three months ended June 30, 2024, amounted to
Non-Interest Expense
Non-interest expense for the three months ended June 30, 2024, amounted to
Balance Sheet
Total assets amounted to
Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to
Total investment securities at fair value amounted to
Total loans amounted to
Total deposits amounted to
Total borrowed funds amounted to
Total shareholders' equity amounted to
Credit Quality
Selected credit quality metrics at June 30, 2024, compared to December 31, 2023, were as follows:
- The ACL for loans amounted to
$62.0 million , or1.65% of total loans, compared to$59.0 million , or1.65% of total loans. - The reserve for unfunded commitments (included in other liabilities) amounted to
$4.9 million , compared to$7.1 million . - Non-performing loans amounted to
$17.7 million , or0.47% of total loans, compared to$11.4 million , or0.32% of total loans. The increase in non-performing loans resulted primarily from one individually evaluated commercial construction loan which was placed on non-accrual in the first quarter of 2024.
Net recoveries amounted to
Wealth Management
Wealth assets under management and administration, which are not carried as assets on the Company's consolidated balance sheets, amounted to
About Enterprise Bancorp, Inc.
Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 139 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company's headquarters and Enterprise Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company's primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.
Forward-Looking Statements
This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "will," "should," "could," "plan," and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the current inflationary pressures, or the resurgence of elevated levels of inflation, in our market areas and the United States; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
| ENTERPRISE BANCORP, INC. Consolidated Balance Sheets (unaudited) | ||||||||||||
| (Dollars in thousands, except per share data) | June 30, 2024 | December 31, 2023 | June 30, 2023 | |||||||||
| Assets | ||||||||||||
| Cash and cash equivalents: | ||||||||||||
| Cash and due from banks | $ | 48,352 | $ | 37,443 | $ | 49,996 | ||||||
| Interest-earning deposits with banks | 151,367 | 19,149 | 208,829 | |||||||||
| Total cash and cash equivalents | 199,719 | 56,592 | 258,825 | |||||||||
| Investments: | ||||||||||||
| Debt securities at fair value (amortized cost of | 628,314 | 661,113 | 706,953 | |||||||||
| Equity securities at fair value | 8,524 | 7,058 | 5,898 | |||||||||
| Total investment securities at fair value | 636,838 | 668,171 | 712,851 | |||||||||
| Federal Home Loan Bank stock | 2,482 | 2,402 | 2,404 | |||||||||
| Loans held for sale | — | 200 | — | |||||||||
| Loans: | ||||||||||||
| Total loans | 3,768,649 | 3,567,631 | 3,345,667 | |||||||||
| Allowance for credit losses | (61,999 | ) | (58,995 | ) | (56,899 | ) | ||||||
| Net loans | 3,706,650 | 3,508,636 | 3,288,768 | |||||||||
| Premises and equipment, net | 44,209 | 44,931 | 43,603 | |||||||||
| Lease right-of-use asset | 24,469 | 24,820 | 24,578 | |||||||||
| Accrued interest receivable | 20,343 | 19,233 | 16,885 | |||||||||
| Deferred income taxes, net | 48,619 | 49,166 | 48,875 | |||||||||
| Bank-owned life insurance | 66,381 | 65,455 | 64,779 | |||||||||
| Prepaid income taxes | 4,806 | 1,589 | 2,790 | |||||||||
| Prepaid expenses and other assets | 13,509 | 19,183 | 32,330 | |||||||||
| Goodwill | 5,656 | 5,656 | 5,656 | |||||||||
| Total assets | $ | 4,773,681 | $ | 4,466,034 | $ | 4,502,344 | ||||||
| Liabilities and Shareholders'Equity | ||||||||||||
| Liabilities | ||||||||||||
| Deposits | $ | 4,248,801 | $ | 3,977,521 | $ | 4,075,598 | ||||||
| Borrowed funds | 61,785 | 25,768 | 3,334 | |||||||||
| Subordinated debt | 59,657 | 59,498 | 59,340 | |||||||||
| Lease liability | 24,157 | 24,441 | 24,148 | |||||||||
| Accrued expenses and other liabilities | 30,546 | 45,011 | 29,161 | |||||||||
| Accrued interest payable | 8,294 | 4,678 | 3,273 | |||||||||
| Total liabilities | 4,433,240 | 4,136,917 | 4,194,854 | |||||||||
| Commitments and Contingencies | ||||||||||||
| Shareholders'Equity | ||||||||||||
| Preferred stock, | — | — | — | |||||||||
| Common stock, | 124 | 123 | 122 | |||||||||
| Additional paid-in capital | 109,137 | 107,377 | 105,552 | |||||||||
| Retained earnings | 313,486 | 301,380 | 289,409 | |||||||||
| Accumulated other comprehensive loss | (82,306 | ) | (79,763 | ) | (87,593 | ) | ||||||
| Total shareholders' equity | 340,441 | 329,117 | 307,490 | |||||||||
| Total liabilities and shareholders' equity | $ | 4,773,681 | $ | 4,466,034 | $ | 4,502,344 | ||||||
| ENTERPRISE BANCORP, INC. Consolidated Statements of Income (unaudited) | ||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||
| (Dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Other interest-earning assets | $ | 1,697 | $ | 1,172 | $ | 1,917 | $ | 2,869 | $ | 4,125 | ||||||||||
| Investment securities | 3,943 | 4,034 | 4,967 | 7,977 | 10,040 | |||||||||||||||
| Loans and loans held for sale | 51,224 | 48,817 | 41,798 | 100,041 | 81,354 | |||||||||||||||
| Total interest and dividend income | 56,864 | 54,023 | 48,682 | 110,887 | 95,519 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 19,172 | 17,272 | 9,692 | 36,444 | 15,679 | |||||||||||||||
| Borrowed funds | 664 | 694 | 30 | 1,358 | 42 | |||||||||||||||
| Subordinated debt | 867 | 867 | 867 | 1,734 | 1,734 | |||||||||||||||
| Total interest expense | 20,703 | 18,833 | 10,589 | 39,536 | 17,455 | |||||||||||||||
| Net interest income | 36,161 | 35,190 | 38,093 | 71,351 | 78,064 | |||||||||||||||
| Provision for credit losses | 137 | 622 | 2,268 | 759 | 5,004 | |||||||||||||||
| Net interest income after provision for credit losses | 36,024 | 34,568 | 35,825 | 70,592 | 73,060 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Wealth management fees | 1,970 | 1,850 | 1,673 | 3,820 | 3,260 | |||||||||||||||
| Deposit and interchange fees | 2,284 | 2,069 | 2,295 | 4,353 | 4,343 | |||||||||||||||
| Income on bank-owned life insurance, net | 503 | 458 | 316 | 961 | 623 | |||||||||||||||
| Net losses on sales of debt securities | — | — | (2,419 | ) | — | (2,419 | ) | |||||||||||||
| Net gains on sales of loans | 44 | 22 | 6 | 66 | 20 | |||||||||||||||
| Gains on equity securities | 101 | 465 | 189 | 566 | 173 | |||||||||||||||
| Other income | 726 | 631 | 759 | 1,357 | 1,576 | |||||||||||||||
| Total non-interest income | 5,628 | 5,495 | 2,819 | 11,123 | 7,576 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 19,675 | 19,176 | 16,135 | 38,851 | 34,656 | |||||||||||||||
| Occupancy and equipment expenses | 2,406 | 2,459 | 2,505 | 4,865 | 5,006 | |||||||||||||||
| Technology and telecommunications expenses | 2,658 | 2,745 | 2,636 | 5,403 | 5,311 | |||||||||||||||
| Advertising and public relations expenses | 674 | 743 | 804 | 1,417 | 1,485 | |||||||||||||||
| Audit, legal and other professional fees | 711 | 734 | 782 | 1,445 | 1,422 | |||||||||||||||
| Deposit insurance premiums | 862 | 859 | 615 | 1,721 | 1,290 | |||||||||||||||
| Supplies and postage expenses | 240 | 237 | 247 | 477 | 502 | |||||||||||||||
| Other operating expenses | 1,803 | 1,955 | 1,899 | 3,758 | 3,991 | |||||||||||||||
| Total non-interest expense | 29,029 | 28,908 | 25,623 | 57,937 | 53,663 | |||||||||||||||
| Income before income taxes | 12,623 | 11,155 | 13,021 | 23,778 | 26,973 | |||||||||||||||
| Provision for income taxes | 3,111 | 2,648 | 3,337 | 5,759 | 6,521 | |||||||||||||||
| Net income | $ | 9,512 | $ | 8,507 | $ | 9,684 | $ | 18,019 | $ | 20,452 | ||||||||||
| Basic earnings per common share | $ | 0.77 | $ | 0.69 | $ | 0.79 | $ | 1.46 | $ | 1.68 | ||||||||||
| Diluted earnings per common share | $ | 0.77 | $ | 0.69 | $ | 0.79 | $ | 1.46 | $ | 1.67 | ||||||||||
| Basic weighted average common shares outstanding | 12,389,917 | 12,292,417 | 12,228,081 | 12,341,630 | 12,191,857 | |||||||||||||||
| Diluted weighted average common shares outstanding | 12,394,463 | 12,304,203 | 12,244,863 | 12,349,573 | 12,218,735 | |||||||||||||||
| ENTERPRISE BANCORP, INC. Selected Consolidated Financial Data and Ratios (unaudited) | ||||||||||||||||||||
| At or for the three months ended | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
| Balance Sheet Data | ||||||||||||||||||||
| Total cash and cash equivalents | $ | 199,719 | $ | 147,834 | $ | 56,592 | $ | 225,421 | $ | 258,825 | ||||||||||
| Total investment securities at fair value | 636,838 | 652,026 | 668,171 | 678,932 | 712,851 | |||||||||||||||
| Total loans | 3,768,649 | 3,654,322 | 3,567,631 | 3,404,014 | 3,345,667 | |||||||||||||||
| Allowance for credit losses | (61,999 | ) | (60,741 | ) | (58,995 | ) | (57,905 | ) | (56,899 | ) | ||||||||||
| Total assets | 4,773,681 | 4,624,015 | 4,466,034 | 4,482,374 | 4,502,344 | |||||||||||||||
| Total deposits | 4,248,801 | 4,106,119 | 3,977,521 | 4,060,403 | 4,075,598 | |||||||||||||||
| Borrowed funds | 61,785 | 63,246 | 25,768 | 4,290 | 3,334 | |||||||||||||||
| Subordinated debt | 59,657 | 59,577 | 59,498 | 59,419 | 59,340 | |||||||||||||||
| Total shareholders' equity | 340,441 | 333,439 | 329,117 | 299,699 | 307,490 | |||||||||||||||
| Total liabilities and shareholders' equity | 4,773,681 | 4,624,015 | 4,466,034 | 4,482,374 | 4,502,344 | |||||||||||||||
| Wealth Management | ||||||||||||||||||||
| Wealth assets under management | $ | 1,129,147 | $ | 1,105,036 | $ | 1,077,761 | $ | 984,647 | $ | 1,009,386 | ||||||||||
| Wealth assets under administration | $ | 267,529 | $ | 268,074 | $ | 242,338 | $ | 211,046 | $ | 214,116 | ||||||||||
| Shareholders' Equity Ratios | ||||||||||||||||||||
| Book value per common share | $ | 27.40 | $ | 26.94 | $ | 26.82 | $ | 24.45 | $ | 25.11 | ||||||||||
| Dividends paid per common share | $ | 0.24 | $ | 0.24 | $ | 0.23 | $ | 0.23 | $ | 0.23 | ||||||||||
| Regulatory Capital Ratios | ||||||||||||||||||||
| Total capital to risk weighted assets | 13.07 | % | 13.20 | % | 13.12 | % | 13.45 | % | 13.37 | % | ||||||||||
| Tier 1 capital to risk weighted assets(1) | 10.34 | % | 10.43 | % | 10.34 | % | 10.61 | % | 10.52 | % | ||||||||||
| Tier 1 capital to average assets | 8.76 | % | 8.85 | % | 8.74 | % | 8.59 | % | 8.62 | % | ||||||||||
| Credit Quality Data | ||||||||||||||||||||
| Non-performing loans | $ | 17,731 | $ | 18,527 | $ | 11,414 | $ | 11,656 | $ | 7,647 | ||||||||||
| Non-performing loans to total loans | 0.47 | % | 0.51 | % | 0.32 | % | 0.34 | % | 0.23 | % | ||||||||||
| Non-performing assets to total assets | 0.37 | % | 0.40 | % | 0.26 | % | 0.26 | % | 0.17 | % | ||||||||||
| ACL for loans to total loans | 1.65 | % | 1.66 | % | 1.65 | % | 1.70 | % | 1.70 | % | ||||||||||
| Net (recoveries) charge-offs | $ | (130 | ) | $ | 122 | $ | 15 | $ | (12 | ) | $ | 146 | ||||||||
| Income Statement Data | ||||||||||||||||||||
| Net interest income | $ | 36,161 | $ | 35,190 | $ | 36,518 | $ | 38,502 | $ | 38,093 | ||||||||||
| Provision for credit losses | 137 | 622 | 2,493 | 1,752 | 2,268 | |||||||||||||||
| Total non-interest income | 5,628 | 5,495 | 5,547 | 4,486 | 2,819 | |||||||||||||||
| Total non-interest expense | 29,029 | 28,908 | 28,224 | 28,312 | 25,623 | |||||||||||||||
| Income before income taxes | 12,623 | 11,155 | 11,348 | 12,924 | 13,021 | |||||||||||||||
| Provision for income taxes | 3,111 | 2,648 | 3,441 | 3,225 | 3,337 | |||||||||||||||
| Net income | $ | 9,512 | $ | 8,507 | $ | 7,907 | $ | 9,699 | $ | 9,684 | ||||||||||
| Income Statement Ratios | ||||||||||||||||||||
| Diluted earnings per common share | $ | 0.77 | $ | 0.69 | $ | 0.64 | $ | 0.79 | $ | 0.79 | ||||||||||
| Return on average total assets | 0.82 | % | 0.75 | % | 0.69 | % | 0.85 | % | 0.88 | % | ||||||||||
| Return on average shareholders' equity | 11.55 | % | 10.47 | % | 10.21 | % | 12.53 | % | 12.63 | % | ||||||||||
| Net interest margin (tax-equivalent)(2) | 3.19 | % | 3.20 | % | 3.29 | % | 3.46 | % | 3.55 | % | ||||||||||
| (1) | Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented. |
| (2) | Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets. |
| ENTERPRISE BANCORP, INC. Consolidated Loan and Deposit Data (unaudited) | ||||||||||||||||||||
| Major classifications of loans at the dates indicated were as follows: | ||||||||||||||||||||
| (Dollars in thousands) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
| Commercial real estate | $ | 2,204,864 | $ | 2,159,594 | $ | 2,064,737 | $ | 2,032,458 | $ | 2,009,263 | ||||||||||
| Commercial and industrial | 426,976 | 417,604 | 430,749 | 425,334 | 420,095 | |||||||||||||||
| Commercial construction | 622,094 | 583,711 | 585,113 | 501,179 | 487,018 | |||||||||||||||
| Total commercial loans | 3,253,934 | 3,160,909 | 3,080,599 | 2,958,971 | 2,916,376 | |||||||||||||||
| Residential mortgages | 413,323 | 400,093 | 393,142 | 362,514 | 346,523 | |||||||||||||||
| Home equity loans and lines | 93,220 | 85,144 | 85,375 | 74,433 | 74,374 | |||||||||||||||
| Consumer | 8,172 | 8,176 | 8,515 | 8,096 | 8,394 | |||||||||||||||
| Total retail loans | 514,715 | 493,413 | 487,032 | 445,043 | 429,291 | |||||||||||||||
| Total loans | 3,768,649 | 3,654,322 | 3,567,631 | 3,404,014 | 3,345,667 | |||||||||||||||
| ACL for loans | (61,999 | ) | (60,741 | ) | (58,995 | ) | (57,905 | ) | (56,899 | ) | ||||||||||
| Net loans | $ | 3,706,650 | $ | 3,593,581 | $ | 3,508,636 | $ | 3,346,109 | $ | 3,288,768 | ||||||||||
Deposits are summarized as follows as of the periods indicated:
| (Dollars in thousands) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
| Non-interest checking | $ | 1,050,876 | $ | 1,050,608 | $ | 1,070,104 | $ | 1,130,732 | $ | 1,273,968 | ||||||||||
| Interest-bearing checking | 788,822 | 730,819 | 697,632 | 727,817 | 701,701 | |||||||||||||||
| Savings | 285,461 | 273,369 | 285,770 | 290,363 | 310,321 | |||||||||||||||
| Money market | 1,504,551 | 1,469,181 | 1,402,939 | 1,434,036 | 1,373,816 | |||||||||||||||
| CDs | 358,149 | 337,367 | 295,789 | 262,975 | 244,114 | |||||||||||||||
| CDs greater than | 260,942 | 244,775 | 225,287 | 214,480 | 171,678 | |||||||||||||||
| Deposits | $ | 4,248,801 | $ | 4,106,119 | $ | 3,977,521 | $ | 4,060,403 | $ | 4,075,598 | ||||||||||
| ENTERPRISE BANCORP, INC. Consolidated Average Balance Sheets and Yields (tax-equivalent basis) (unaudited) | ||||||||||||||||||||||||||||||||||||
| The following table presents the Company's average balance sheets, net interest income and average rates for the periods indicated: | ||||||||||||||||||||||||||||||||||||
| Three months ended June 30, 2024 | Three Months Ended March 31, 2024 | Three months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest(1) | Average Yield(1) | Average Balance | Interest(1) | Average Yield(1) | Average Balance | Interest(1) | Average Yield(1) | |||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||
| Other interest-earning assets(2) | $ | 123,887 | $ | 1,697 | 5.51 | % | $ | 86,078 | $ | 1,172 | 5.48 | % | $ | 155,934 | $ | 1,917 | 4.93 | % | ||||||||||||||||||
| Investment securities(3)(tax-equivalent) | 750,822 | 4,057 | 2.16 | % | 763,692 | 4,157 | 2.18 | % | 917,965 | 5,189 | 2.26 | % | ||||||||||||||||||||||||
| Loans and loans held for sale(4)(tax-equivalent) | 3,708,485 | 51,366 | 5.57 | % | 3,608,157 | 48,960 | 5.46 | % | 3,268,586 | 41,930 | 5.14 | % | ||||||||||||||||||||||||
| Total interest-earnings assets (tax-equivalent) | 4,583,194 | 57,120 | 5.01 | % | 4,457,927 | 54,289 | 4.89 | % | 4,342,485 | 49,036 | 4.53 | % | ||||||||||||||||||||||||
| Other assets | 96,991 | 91,794 | 92,909 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 4,680,185 | $ | 4,549,721 | $ | 4,435,394 | ||||||||||||||||||||||||||||||
| Liabilities and stockholders' equity: | ||||||||||||||||||||||||||||||||||||
| Non-interest checking | $ | 1,054,932 | — | $ | 1,069,145 | — | $ | 1,269,339 | — | |||||||||||||||||||||||||||
| Interest checking, savings and money market | 2,510,155 | 12,381 | 1.98 | % | 2,418,947 | 11,356 | 1.89 | % | 2,351,011 | 6,880 | 1.17 | % | ||||||||||||||||||||||||
| CDs | 601,339 | 6,791 | 4.54 | % | 549,097 | 5,916 | 4.33 | % | 393,387 | 2,812 | 2.87 | % | ||||||||||||||||||||||||
| Total deposits | 4,166,426 | 19,172 | 1.85 | % | 4,037,189 | 17,272 | 1.72 | % | 4,013,737 | 9,692 | 0.97 | % | ||||||||||||||||||||||||
| Borrowed funds | 62,513 | 664 | 4.27 | % | 63,627 | 694 | 4.38 | % | 4,595 | 30 | 2.58 | % | ||||||||||||||||||||||||
| Subordinated debt(5) | 59,609 | 867 | 5.82 | % | 59,530 | 867 | 5.82 | % | 59,293 | 867 | 5.85 | % | ||||||||||||||||||||||||
| Total funding liabilities | 4,288,548 | 20,703 | 1.94 | % | 4,160,346 | 18,833 | 1.82 | % | 4,077,625 | 10,589 | 1.04 | % | ||||||||||||||||||||||||
| Other liabilities | 60,270 | 62,500 | 50,113 | |||||||||||||||||||||||||||||||||
| Total liabilities | 4,348,818 | 4,222,846 | 4,127,738 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 331,367 | 326,875 | 307,656 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,680,185 | $ | 4,549,721 | $ | 4,435,394 | ||||||||||||||||||||||||||||||
| Net interest-rate spread (tax-equivalent) | 3.07 | % | 3.07 | % | 3.49 | % | ||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent) | 36,417 | 35,456 | 38,447 | |||||||||||||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 3.19 | % | 3.20 | % | 3.55 | % | ||||||||||||||||||||||||||||||
| Less tax-equivalent adjustment | 256 | 266 | 354 | |||||||||||||||||||||||||||||||||
| Net interest income | $ | 36,161 | $ | 35,190 | $ | 38,093 | ||||||||||||||||||||||||||||||
| Net interest margin | 3.17 | % | 3.17 | % | 3.52 | % | ||||||||||||||||||||||||||||||
| (1) | Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of |
| (2) | Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock. |
| (3) | Average investment securities are presented at average amortized cost. |
| (4) | Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans. |
| (5) | Subordinated debt is net of average deferred debt issuance costs. |
Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578
FAQ
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