Enterprise Bancorp, Inc. Announces Third Quarter Financial Results

Rhea-AI Summary

Enterprise Bancorp, Inc. Announces Q3 2023 Financial Results

Positive

• Net income for Q3 2023 was $9.7 million, a decrease from Q3 2022. Total loans increased by 2% compared to Q2 2023 and by 9% compared to Q3 2022. CEO is pleased with loan growth and strong growth opportunities in markets.

Negative

• Total deposits decreased by 0.4% compared to Q2 2023 and by 2% compared to Q3 2022. Net interest income decreased by 3% compared to Q3 2022 due to increased deposit interest expense. Non-interest income decreased by 1% compared to Q3 2022.

LOWELL, Mass., Oct. 24, 2023 (GLOBE NEWSWIRE) -- Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended September 30, 2023. Net income amounted to $9.7 million, or $0.79 per diluted common share, for the three months ended September 30, 2023, compared to $12.0 million, or $0.98, for the three months ended September 30, 2022 and $9.7 million, or $0.79, for the three months ended June 30, 2023.

Selected financial results at or for the three months ended September 30, 2023, were as follows:

• The return on average assets and average equity were 0.85% and 12.53%, respectively.
• Tax-equivalent net interest margin (non-GAAP) was 3.46%.
• Total loans increased 2% compared to June 30, 2023, and 9% compared to September 30, 2022.
• Total deposits decreased 0.4% compared to June 30, 2023, and 2% compared to September 30, 2022.
• Overnight and short-term investments (interest-earning deposits with banks) amounted to $180.1 million.
• There were no brokered deposits and only $4.3 million in borrowed funds.

Chief Executive Officer Jack Clancy commented, "We are pleased with our third quarter results. Liquidity remained favorable and loan growth has been solid and consistent. While increasing funding costs remain a challenge, we continue to experience strong growth opportunities in our markets for our commercial lending, cash management and wealth management services."

Executive Chairman & Founder George Duncan added, "I am pleased to highlight that on October 17^th, the Company's Board of Directors declared a quarterly dividend of $0.23 per share, an increase of 12% over the prior year period. On September 7^th, we were once again recognized at the Boston Business Journal's Corporate Citizenship Summit for our significant contributions in employee volunteerism and corporate philanthropy. In particular, I am very proud that we ranked 2^nd in the state of Massachusetts for the highest average volunteer hours per employee."

Net Interest Income

Net interest income for the three months ended September 30, 2023, amounted to $38.5 million, a decrease of $1.3 million, or 3%, compared to the three months ended September 30, 2022. The decrease was due largely to an increase in deposit interest expense of $11.4 million which resulted from continued market interest rate increases and a change in deposit mix, partially offset by increases in loan interest income of $9.2 million and other interest-earning asset income of $1.4 million.

Net Interest Margin

The decrease in net interest margin over the respective periods was due primarily to an increase in funding costs that exceeded the increase in loan yields. During the periods, the cost of deposits increased from higher market and competitor interest rates and from a change in mix as deposits migrated from lower yielding checking and savings products into higher yielding money market and certificate of deposit products.

Three months ended – September 30, 2023, compared to June 30, 2023

Tax-equivalent net interest margin ("net interest margin") was 3.46% for the three months ended September 30, 2023, compared to 3.55% for the three months ended June 30, 2023.

Net interest margin compared to the prior quarter was impacted by the following factors:

• Average interest-earning deposits with banks increased $104.5 million, or 68%, and the yield increased 40 basis points.
• Average debt securities decreased $98.1 million, or 11%, and the tax-equivalent yield decreased 9 basis points.
• Average loan balances increased $104.2 million, or 3%, and the tax-equivalent yield increased 11 basis points.
• Average total deposits increased $94.1 million, or 2%, and the yield increased 27 basis points.

Three months ended – September 30, 2023, compared to September 30, 2022

Net interest margin was 3.46% for the three months ended September 30, 2023, compared to 3.61% for the three months ended September 30, 2022.

Net interest margin compared to the prior year quarter was impacted by the following factors:

• Average interest-earning deposits with banks decreased $114.8 million, or 31%, while the yield increased 308 basis points.
• Average debt securities decreased $136.8 million, or 14%, while the tax-equivalent yield increased 10 basis points.
• Average loan balances increased $286.9 million, or 9%, and the tax-equivalent yield increased 69 basis points.
• Average total deposits decreased $8.6 million, while the yield increased 110 basis points.

Provision for Credit Losses

The provision for credit losses for the three months ended September 30, 2023, amounted to $1.8 million, compared to $1.0 million for the three months ended September 30, 2022. The provision expense for the third quarter of 2023 resulted primarily from an increase in reserves for individually evaluated loans and, to a lesser extent, growth in the Company's loan portfolio and off-balance sheet commitments, partially offset by the impact of a reduction in general reserve loss factors in our allowance for credit loss ("ACL") model related primarily to an improvement in the economic forecast relative to the prior quarter. The ACL for loans to total loans ratio was 1.70% at September 30, 2023 compared to 1.65% at September 30, 2022.

Non-Interest Income

Non-interest income for the three months ended September 30, 2023, amounted to $4.5 million, a decrease of $39 thousand, or 1%, compared to the three months ended September 30, 2022. There were no individually significant changes in non-interest income during the period when compared to the prior year period.

Non-Interest Expense

Non-interest expense for the three months ended September 30, 2023, amounted to $28.3 million, an increase of $775 thousand, or 3%, compared to the three months ended September 30, 2022. The increase was due primarily to increases in salary and employee benefits of $244 thousand, occupancy and equipment expenses of $230 thousand and deposit insurance premiums of $263 thousand.

Income Taxes

The effective tax rate was 25.0% and 24.1% for the three months ended September 30, 2023 and 2022, respectively. The difference resulted primarily from an increase in state taxes including a transfer of funds from the Bank's investment subsidiary corporations.

Balance Sheet

Total assets amounted to $4.48 billion at September 30, 2023, compared to $4.44 billion at December 31, 2022, an increase of $44.0 million, or 1%.

Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to $180.1 million at September 30, 2023, compared to $230.7 million at December 31, 2022. The decrease of $50.6 million, or 22%, was related primarily to funding loan growth.

Total investment securities at fair value amounted to $678.9 million at September 30, 2023, compared to $820.4 million at December 31, 2022. The decrease of $141.4 million, or 17%, was attributable principally to sales of debt securities of $84.8 million and principal pay-downs, calls and maturities of $46.3 million. At September 30, 2023, unrealized losses on debt securities amounted to $133.2 million and Management determined that no ACL for available-for-sale securities was necessary.

Total loans amounted to $3.40 billion at September 30, 2023, compared to $3.18 billion at December 31, 2022. The increase of $223.5 million, or 7%, was primarily in commercial real estate of $111.0 million, or 6%, and commercial construction of $77.1 million, or 18%.

Total deposits amounted to $4.06 billion at September 30, 2023, compared to $4.04 billion at December 31, 2022, an increase of $24.6 million, or 1%. The Company has experienced a shift in deposit mix at September 30, 2023, compared to December 31, 2022, resulting from customers moving funds out of lower yielding checking and savings products (which together, have decreased 9%) into higher yielding money market and certificate of deposit products (which together, have increased 15%).

Shareholders' Equity

Total shareholders' equity amounted to $299.7 million at September 30, 2023, compared to $282.3 million at December 31, 2022. The increase of $17.4 million, or 6%, was due primarily to an increase in retained earnings, partially offset by an increase in the accumulated other comprehensive loss.

Credit Quality

Selected credit quality metrics at September 30, 2023, compared to December 31, 2022, are as follows:

• The ACL for loans amounted to $57.9 million, or 1.70% of total loans, compared to $52.6 million, or 1.66% of total loans.
• The reserve for unfunded commitments (included in other liabilities) amounted to $5.7 million compared to $4.3 million.
• Non-performing loans amounted to $11.7 million, or 0.34% of total loans, compared to $6.1 million, or 0.19% of total loans. The increase resulted primarily from one commercial relationship which also accounted for the increase in reserves for individually evaluated loans noted above.
  

Wealth Management

Wealth assets are not carried as assets on the Company's consolidated balance sheets.

Wealth assets under management amounted to $984.6 million at September 30, 2023. The increase of $93.2 million, or 10%, compared to December 31, 2022 resulted primarily from an increase in market values, and to a lesser extent, net asset growth attracted through new and expanded client relationships.

Wealth assets under administration amounted to $211.0 million at September 30, 2023 an increase of $12.5 million, or 6%, compared to December 31, 2022.

Supplemental Information

All balances and ratios presented in this section are at September 30, 2023 unless otherwise indicated.

Liquidity & Funding Capacity

• Overnight and short-term investments amounted to $180.1 million.
• FHLB and Federal Reserve Bank of Boston secured borrowing capacity amounted to $1.2 billion.
• The Company has several brokered deposit relationships (unsecured borrowings) which management estimated could provide an additional $800.0 million in funding capacity.
  

Deposit Information

• Uninsured deposits amounted to 35% of total deposits.
• Deposit balances that utilize third party enhanced Federal Deposit Insurance Corporation ("FDIC") insured products amounted to $815.0 million.
• Additional capacity to utilize these enhanced FDIC insured products exceeds the Company's total deposits balance.
  

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 136 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 recent bank failures and any continuation of the recent 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; changes in market interest rates; the persistence of the current inflationary environment 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; the effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or security breaches; severe weather, natural disasters, acts of war or terrorism or other external events; regulatory considerations; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the receipt of required regulatory approvals; changes in tax laws; 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)		September 30, 2023				December 31, 2022
Assets
Cash and cash equivalents:
Cash and due from banks		$	45,345			$	36,901
Interest-earning deposits with banks			180,076				230,688
Total cash and cash equivalents			225,421				267,589
Investments:
Debt securities at fair value (amortized cost of $806,077 and $940,227, respectively)			672,894				816,102
Equity securities at fair value			6,038				4,269
Total investment securities at fair value			678,932				820,371
Federal Home Loan Bank stock			2,403				2,343
Loans:
Total loans			3,404,014				3,180,518
Allowance for credit losses			(57,905	)			(52,640	)
Net loans			3,346,109				3,127,878
Premises and equipment, net			43,391				44,228
Lease right-of-use asset			24,979				24,923
Accrued interest receivable			18,572				17,117
Deferred income taxes, net			55,080				51,981
Bank-owned life insurance			65,106				64,156
Prepaid income taxes			2,548				683
Prepaid expenses and other assets			14,177				11,408
Goodwill			5,656				5,656
Total assets		$	4,482,374			$	4,438,333
Liabilities and Shareholders' Equity
Liabilities
Deposits		$	4,060,403			$	4,035,806
Borrowed funds			4,290				3,216
Subordinated debt			59,419				59,182
Lease liability			24,589				24,415
Accrued expenses and other liabilities			31,288				31,442
Accrued interest payable			2,686				2,005
Total liabilities			4,182,675				4,156,066
Commitments and Contingencies
Shareholders' Equity
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued			—				—
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,256,964 and 12,133,516 shares issued and outstanding, respectively			123				121
Additional paid-in capital			106,451				103,793
Retained earnings			296,291				274,560
Accumulated other comprehensive loss			(103,166	)			(96,207	)
Total shareholders' equity			299,699				282,267
Total liabilities and shareholders' equity		$	4,482,374			$	4,438,333

ENTERPRISE BANCORP, INC. Consolidated Statements of Income (unaudited)
		Three months ended								Nine months ended
		September 30,								September 30,
(Dollars in thousands, except per share data)			2023				2022				2023				2022
Interest and dividend income:
Loans and loans held for sale		$	44,501			$	35,306			$	125,855			$	98,149
Investment securities			4,316				4,728				14,356				14,097
Other interest-earning assets			3,468				2,068				7,593				2,642
Total interest and dividend income			52,285				42,102				147,804				114,888
Interest expense:
Deposits			12,889				1,460				28,568				2,731
Borrowed funds			28				13				70				39
Subordinated debt			866				850				2,600				2,485
Total interest expense			13,783				2,323				31,238				5,255
Net interest income			38,502				39,779				116,566				109,633
Provision for credit losses			1,752				1,000				6,756				3,939
Net interest income after provision for credit losses			36,750				38,779				109,810				105,694
Non-interest income:
Wealth management fees			1,673				1,626				4,933				4,965
Deposit and interchange fees			1,987				2,045				6,330				5,847
Income on bank-owned life insurance, net			327				303				950				893
Net (losses) gains on sales of debt securities			—				—				(2,419	)			1,062
Net gains on sales of loans			14				8				34				30
Losses on equity securities			(181	)			(193	)			(8	)			(688	)
Other income			666				736				2,242				2,143
Total non-interest income			4,486				4,525				12,062				14,252
Non-interest expense:
Salaries and employee benefits			19,159				18,915				53,815				53,450
Occupancy and equipment expenses			2,433				2,203				7,439				6,982
Technology and telecommunications expenses			2,626				2,599				7,937				8,154
Advertising and public relations expenses			592				510				2,077				1,737
Audit, legal and other professional fees			735				693				2,157				2,078
Deposit insurance premiums			654				391				1,944				1,313
Supplies and postage expenses			251				219				753				663
Other operating expenses			1,862				2,007				5,853				5,770
Total non-interest expense			28,312				27,537				81,975				80,147
Income before income taxes			12,924				15,767				39,897				39,799
Provision for income taxes			3,225				3,805				9,746				9,389
Net income		$	9,699			$	11,962			$	30,151			$	30,410
Basic earnings per common share		$	0.79			$	0.99			$	2.47			$	2.51
Diluted earnings per common share		$	0.79			$	0.98			$	2.46			$	2.50
Basic weighted average common shares outstanding			12,247,892				12,119,348				12,210,740				12,094,613
Diluted weighted average common shares outstanding			12,264,778				12,156,695				12,233,861				12,143,468

ENTERPRISE BANCORP, INC. Selected Consolidated Financial Data and Ratios (unaudited)
		At or for the three months ended
(Dollars in thousands, except per share data)		September 30, 2023				June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022
Balance Sheet Data
Total cash and cash equivalents		$	225,421			$	258,825			$	215,693			$	267,589			$	413,688
Total investment securities at fair value			678,932				712,851				830,895				820,371				831,030
Total loans			3,404,014				3,345,667				3,230,156				3,180,518				3,109,369
Allowance for credit losses			(57,905	)			(56,899	)			(55,002	)			(52,640	)			(51,211	)
Total assets			4,482,374				4,502,344				4,441,896				4,438,333				4,529,820
Total deposits			4,060,403				4,075,598				4,016,156				4,035,806				4,138,038
Subordinated debt			59,419				59,340				59,261				59,182				59,102
Total shareholders' equity			299,699				307,490				311,318				282,267				272,193
Total liabilities and shareholders' equity			4,482,374				4,502,344				4,441,896				4,438,333				4,529,820
Wealth Management
Wealth assets under management		$	984,647			$	1,009,386			$	930,714			$	891,451			$	835,661
Wealth assets under administration		$	211,046			$	214,116			$	206,569			$	198,586			$	185,977
Shareholders' Equity Ratios
Book value per common share		$	24.45			$	25.11			$	25.47			$	23.26			$	22.44
Dividends paid per common share		$	0.230			$	0.230			$	0.230			$	0.205			$	0.205
Regulatory Capital Ratios
Total capital to risk weighted assets			13.41	%			13.37	%			13.55	%			13.49	%			13.49	%
Tier 1 capital to risk weighted assets(1)			10.58	%			10.52	%			10.64	%			10.56	%			10.52	%
Tier 1 capital to average assets			8.59	%			8.62	%			8.47	%			8.10	%			7.89	%
Credit Quality Data
Non-performing loans		$	11,656			$	7,647			$	7,532			$	6,122			$	5,717
Non-performing loans to total loans			0.34	%			0.23	%			0.23	%			0.19	%			0.18	%
Non-performing assets to total assets			0.26	%			0.17	%			0.17	%			0.14	%			0.13	%
ACL for loans to total loans			1.70	%			1.70	%			1.70	%			1.66	%			1.65	%
Net charge-offs (recoveries)		$	(12	)		$	146			$	(44	)		$	166			$	52
Income Statement Data
Net interest income		$	38,502			$	38,093			$	39,971			$	42,165			$	39,779
Provision for credit losses			1,752				2,268				2,736				1,861				1,000
Total non-interest income			4,486				2,819				4,757				4,210				4,525
Total non-interest expense			28,312				25,623				28,040				28,167				27,537
Income before income taxes			12,924				13,021				13,952				16,347				15,767
Provision for income taxes			3,225				3,337				3,184				4,041				3,805
Net income		$	9,699			$	9,684			$	10,768			$	12,306			$	11,962
Income Statement Ratios
Diluted earnings per common share		$	0.79			$	0.79			$	0.88			$	1.01			$	0.98
Return on average total assets			0.85	%			0.88	%			0.99	%			1.08	%			1.05	%
Return on average shareholders' equity			12.53	%			12.63	%			14.67	%			18.08	%			16.47	%
Net interest margin (tax-equivalent)(2)			3.46	%			3.55	%			3.76	%			3.81	%			3.61	%

(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)		September 30, 2023				June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022
Commercial real estate		$	2,032,458			$	2,009,263			$	1,929,544			$	1,921,410			$	1,886,365
Commercial and industrial			425,334				420,095				423,864				414,490				413,347
Commercial construction			501,179				487,018				456,735				424,049				396,027
SBA PPP			—				—				—				—				2,725
Total commercial loans			2,958,971				2,916,376				2,810,143				2,759,949				2,698,464
Residential mortgages			362,514				346,523				335,834				332,632				321,663
Home equity loans and lines			74,433				74,374				75,809				79,807				80,882
Consumer			8,096				8,394				8,370				8,130				8,360
Total retail loans			445,043				429,291				420,013				420,569				410,905
Total loans			3,404,014				3,345,667				3,230,156				3,180,518				3,109,369
ACL for loans			(57,905	)			(56,899	)			(55,002	)			(52,640	)			(51,211	)
Net loans		$	3,346,109			$	3,288,768			$	3,175,154			$	3,127,878			$	3,058,158

Deposits are summarized as follows as of the periods indicated:

(Dollars in thousands)		September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Non-interest checking		$	1,130,732		$	1,273,968		$	1,247,253		$	1,361,588		$	1,441,104
Interest-bearing checking			727,817			701,701			641,194			678,715			719,474
Savings			290,363			310,321			297,790			326,666			351,665
Money market			1,434,036			1,373,816			1,454,858			1,381,645			1,395,756
CDs $250,000 or less			262,975			244,114			222,116			187,758			163,520
CDs greater than $250,000			214,480			171,678			152,945			99,434			66,519
Deposits		$	4,060,403		$	4,075,598		$	4,016,156		$	4,035,806		$	4,138,038

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:

(Dollars in thousands)		Three months ended September 30, 2023									Three months ended June 30, 2023									Three months ended September 30, 2022
		Average Balance			Interest(1)			Average Yield(1)			Average Balance			Interest(1)			Average Yield(1)			Average Balance			Interest(1)			Average Yield(1)
Assets:
Loans and loans held for sale(2) (tax-equivalent)		$	3,372,754		$	44,644		5.25	%		$	3,268,586		$	41,930		5.14	%		$	3,085,896		$	35,422		4.56	%
Investment securities(3) (tax-equivalent)			820,156			4,444		2.17	%			917,965			5,189		2.26	%			954,385			4,959		2.08	%
Other interest-earning assets(4)			260,475			3,468		5.28	%			155,934			1,917		4.93	%			375,213			2,068		2.19	%
Total interest-earnings assets (tax-equivalent)			4,453,385			52,556		4.69	%			4,342,485			49,036		4.53	%			4,415,494			42,449		3.82	%
Other assets			82,190									92,909									101,095
Total assets		$	4,535,575								$	4,435,394								$	4,516,589
Liabilities and stockholders' equity:
Interest checking, savings and money market		$	2,481,814			9,185		1.47	%		$	2,351,011			6,880		1.17	%		$	2,444,705			1,045		0.17	%
CDs			430,376			3,704		3.41	%			393,387			2,812		2.87	%			221,827			415		0.74	%
Borrowed funds			4,938			28		2.30	%			4,595			30		2.58	%			2,940			13		1.77	%
Subordinated debt(5)			59,372			866		5.84	%			59,293			867		5.85	%			59,052			850		5.76	%
Total interest-bearing funding			2,976,500			13,783		1.84	%			2,808,286			10,589		1.51	%			2,728,524			2,323		0.34	%
Non-interest checking			1,195,658			—						1,269,339			—						1,449,909			—
Total deposits, borrowed funds and subordinated debt			4,172,158			13,783		1.31	%			4,077,625			10,589		1.04	%			4,178,433			2,323		0.22	%
Other liabilities			56,414									50,113									50,034
Total liabilities			4,228,572									4,127,738									4,228,467
Stockholders' equity			307,003									307,656									288,122
Total liabilities and stockholders' equity		$	4,535,575								$	4,435,394								$	4,516,589
Net interest-rate spread (tax-equivalent)								2.85	%								3.02	%								3.48	%
Net interest income (tax-equivalent)						38,773									38,447									40,126
Net interest margin (tax-equivalent)								3.46	%								3.55	%								3.61	%
Less tax-equivalent adjustment						271									354									347
Net interest income					$	38,502								$	38,093								$	39,779
Net interest margin								3.43	%								3.52	%								3.58	%

(1)	Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
(2)	Average loans and loans held for sale are presented at amortized cost and include non-accrual loans.
(3)	Average investments are presented at average amortized cost.
(4)	Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock.
(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

What was the net income for Q3 2023?

Net income for Q3 2023 was $9.7 million.

What was the percentage change in total loans compared to Q2 2023?

Total loans increased by 2% compared to Q2 2023.

What was the percentage change in total deposits compared to Q2 2023?

Total deposits decreased by 0.4% compared to Q2 2023.

What was the percentage change in net interest income compared to Q3 2022?

Net interest income decreased by 3% compared to Q3 2022.

What was the percentage change in non-interest income compared to Q3 2022?

Non-interest income decreased by 1% compared to Q3 2022.