Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank,
announced its financial results for the three months ended
March 31, 2024. Net income amounted to $8.5 million, or
$0.69 per diluted common share, for the three months ended
March 31, 2024, compared to $7.9 million, or $0.64 per
diluted share, for the three months ended December 31, 2023
and $10.8 million, or $0.88 per diluted share, for the three
months ended March 31, 2023.
Selected financial results at or for the three months ended
March 31, 2024, were as follows:
- The returns on average assets and average equity were 0.75% and
10.47%, respectively.
- Tax-equivalent net interest margin (non-GAAP) ("net interest
margin") was 3.20%.
- Total loans increased 2.4% compared to December 31,
2023.
- Total deposits increased 3.2% compared to December 31,
2023.
- Wealth assets under management and administration amounted to
$1.37 billion and increased 4.0% compared to December 31,
2023.
Chief Executive Officer Jack Clancy commented, "The first
quarter of 2024 had solid net income with strong loan and deposit
growth. Higher deposit costs and the inverted yield curve continued
to be a headwind resulting in a net interest margin of 3.20%. We
remain well positioned with a strong balance sheet that is centered
around a high-quality loan portfolio, a conservative credit and
reserve culture and favorable liquidity, core deposit funding and
capital." Executive Chairman & Founder George Duncan added,
"Despite the higher interest rates, our markets remain economically
healthy, and we continue to opportunistically add new loan, deposit
and wealth management customers. I was particularly pleased with
the 3% growth in total deposits."
Net Interest Income
Net interest income for the three months ended March 31, 2024,
amounted to $35.2 million, a decrease of $4.8 million, or
12%, compared to the three months ended March 31, 2023.
The decrease was due primarily to an increase in deposit interest
expense of $11.3 million which was driven by an increase in
the cost of funds and changes in deposit mix, partially offset by
an increase in loan interest income of $9.3 million due to
loan growth and higher market interest rates.
Net Interest Margin
Three months ended – March 31, 2024, compared to
December 31, 2023
Net interest margin was 3.20% for the three months ended March
31, 2024, compared to 3.29% for the three months ended
December 31, 2023.
Net interest margin compared to the prior quarter was impacted
by the following factors:
- Average other interest-earning assets decreased $86.1 million,
or 50%, while the yield increased 6 basis points.
- Average loan balances increased $140.2 million, or 4%, and the
tax-equivalent yield increased 10 basis points.
- Average total deposits decreased $45.5 million, or 1%, while
the yield increased 18 basis points.
- Average borrowed funds increased $56.1 million and the yield
was 4.38%, an increase of 214 basis points from previously low
levels.
Three months ended – March 31, 2024, compared to
March 31, 2023
Net interest margin was 3.20% for the three months ended March
31, 2024, compared to 3.76% for the three months ended
March 31, 2023.
Net interest margin compared to the prior year quarter was
impacted by the following factors:
- Average other interest-earning assets decreased $112.7 million,
or 57%, while the yield increased 97 basis points.
- Average investment securities decreased $173.7 million, or 19%,
and the tax-equivalent yield decreased 8 basis points.
- Average loan balances increased $407.3 million, or 13%, and the
tax-equivalent yield increased 44 basis points.
- Average total deposits increased $27.3 million, or 1%, and the
yield increased 111 basis points.
- Average borrowed funds increased $60.4 million and the yield
was 4.38%, an increase of 281 basis points from previously low
levels.
The decrease in net interest margin over the respective periods
was due primarily to increases in funding costs, partially offset
by increases in loan yields and other interest earning asset yields
as well as loan growth. Yields on loans and other interest earning
assets were positively impacted by the increases of 525 basis
points in the federal funds rate from March 2022 through July 2023.
During the current quarter, funding costs were impacted primarily
by higher market interest rates, increased competition for deposits
and changes in deposit mix as depositors sought higher yielding
money market and certificate of deposit products.
Provision for Credit Losses
The provision for credit losses for the three months ended March
31, 2024, amounted to $622 thousand, compared to $2.7 million
for the three months ended March 31, 2023. The provision
expense for the first quarter of 2024 resulted primarily from
growth in the Company's loan portfolio and a $1.6 million increase
in reserves on individually evaluated loans, due primarily to the
addition of one commercial construction loan which was credit
downgraded, partially offset by the impact of an improved economic
forecast in our allowance for credit loss ("ACL") model and a
decrease in off-balance sheet commitments.
Non-Interest Income
Non-interest income for the three months ended March 31, 2024,
amounted to $5.5 million, an increase of $738 thousand, or
16%, compared to the three months ended March 31, 2023.
The increase in non-interest income was due primarily to increases
in gains on equity securities of $481 thousand, wealth
management fees of $263 thousand and income on bank-owned life
insurance of $151 thousand.
Non-Interest Expense
Non-interest expense for the three months ended March 31, 2024,
amounted to $28.9 million, an increase of $868 thousand, or
3%, compared to the three months ended March 31, 2023.
The increase in non-interest expense was due primarily to increases
in salaries and benefits expense of $655 thousand and deposit
insurance premiums of $184 thousand.
Balance Sheet
Total assets amounted to $4.62 billion at March 31, 2024,
compared to $4.47 billion at December 31, 2023, an increase of
$158.0 million, or 4%.
Total interest-earning deposits with banks, which consist of
overnight and short-term investments, amounted to $106.4 million at
March 31, 2024, compared to $19.1 million at December 31,
2023. The increase of $87.2 million was due primarily to increases
in deposits and borrowed funds, partially offset by loan
growth.
Total investment securities at fair value amounted to $652.0
million at March 31, 2024, compared to $668.2 million at
December 31, 2023. The decrease of $16.1 million, or 2%, was
largely attributable to principal pay-downs, calls and maturities
during the three months ended March 31, 2024. Unrealized
losses on debt securities amounted to $105.6 million at
March 31, 2024, compared to $102.9 million at
December 31, 2023, an increase of $2.8 million, or 3%. At
March 31, 2024, management determined that no ACL for
available-for-sale securities was necessary.
Total loans amounted to $3.65 billion at March 31, 2024,
compared to $3.57 billion at December 31, 2023. The increase
of $86.7 million, or 2%, was due primarily to an increase in
commercial real estate loans of $94.9 million.
Total deposits amounted to $4.11 billion at March 31, 2024,
compared to $3.98 billion at December 31, 2023. The increase
of $128.6 million, or 3%, was due primarily to increases in money
market and certificate of deposit balances of $66.2 million and
$61.1 million, respectively.
Total borrowed funds amounted to $63.2 million at March 31,
2024, compared to $25.8 million at December 31, 2023. The
increase of $37.5 million, or 145%, was from an increase in
advances used to support the Company's operations.
Total shareholders' equity amounted to $333.4 million at
March 31, 2024, compared to $329.1 million at
December 31, 2023. The increase of $4.3 million, or 1%, was
due primarily to an increase in retained earnings of $5.6 million,
partially offset by an increase in the accumulated other
comprehensive loss of $2.1 million.
Credit Quality
Selected credit quality metrics at or for the three months ended
March 31, 2024, compared to December 31, 2023, were as
follows:
- The ACL for loans amounted to $60.7 million, or 1.66% of total
loans, compared to $59.0 million, or 1.65% of total loans.
- The reserve for unfunded commitments (included in other
liabilities) amounted to $5.9 million, compared to $7.1
million.
- Non-performing loans amounted to $18.5 million, or 0.51% of
total loans, compared to $11.4 million, or 0.32% of total loans.
The increase in non-performing loans resulted primarily from one
individually evaluated commercial construction loan which was
credit downgraded and moved to non-accrual in the first quarter of
2024, as noted above.
Annualized net charge-offs to average total loans remained low
and amounted to 0.01% for the three months ended March 31,
2024, compared to annualized net recoveries to average total loans
of 0.01% for the three months ended March 31, 2023.
Wealth Management
Wealth assets are not carried as assets on the Company's
consolidated balance sheets.
Wealth assets under management amounted to $1.11 billion at
March 31, 2024, an increase of $27.3 million, or 3%, compared
to December 31, 2023.
Wealth assets under administration amounted to $268.1 million at
March 31, 2024, an increase of $25.7 million, or 11%, compared
to December 31, 2023, resulting primarily from an increase in
market values as well as net asset growth.
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 138 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, 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 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) |
|
March 31,2024 |
|
December 31,2023 |
|
March 31,2023 |
Assets |
|
|
|
|
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
41,443 |
|
|
$ |
37,443 |
|
|
$ |
42,843 |
|
Interest-earning deposits with banks |
|
|
106,391 |
|
|
|
19,149 |
|
|
|
172,850 |
|
Total cash and cash equivalents |
|
|
147,834 |
|
|
|
56,592 |
|
|
|
215,693 |
|
Investments: |
|
|
|
|
|
|
Debt securities at fair value (amortized cost of $749,561, $763,981
and $923,485, respectively) |
|
|
643,924 |
|
|
|
661,113 |
|
|
|
825,520 |
|
Equity securities at fair value |
|
|
8,102 |
|
|
|
7,058 |
|
|
|
5,375 |
|
Total investment securities at fair value |
|
|
652,026 |
|
|
|
668,171 |
|
|
|
830,895 |
|
Federal Home Loan Bank stock |
|
|
2,482 |
|
|
|
2,402 |
|
|
|
2,343 |
|
Loans held for sale |
|
|
400 |
|
|
|
200 |
|
|
|
362 |
|
Loans: |
|
|
|
|
|
|
Total loans |
|
|
3,654,322 |
|
|
|
3,567,631 |
|
|
|
3,230,156 |
|
Allowance for credit losses |
|
|
(60,741 |
) |
|
|
(58,995 |
) |
|
|
(55,002 |
) |
Net loans |
|
|
3,593,581 |
|
|
|
3,508,636 |
|
|
|
3,175,154 |
|
Premises and equipment, net |
|
|
44,671 |
|
|
|
44,931 |
|
|
|
43,821 |
|
Lease right-of-use asset |
|
|
24,645 |
|
|
|
24,820 |
|
|
|
24,751 |
|
Accrued interest receivable |
|
|
20,501 |
|
|
|
19,233 |
|
|
|
18,540 |
|
Deferred income taxes, net |
|
|
47,903 |
|
|
|
49,166 |
|
|
|
44,432 |
|
Bank-owned life insurance |
|
|
65,878 |
|
|
|
65,455 |
|
|
|
64,463 |
|
Prepaid income taxes |
|
|
5,771 |
|
|
|
1,589 |
|
|
|
3,636 |
|
Prepaid expenses and other assets |
|
|
12,667 |
|
|
|
19,183 |
|
|
|
12,150 |
|
Goodwill |
|
|
5,656 |
|
|
|
5,656 |
|
|
|
5,656 |
|
Total assets |
|
$ |
4,624,015 |
|
|
$ |
4,466,034 |
|
|
$ |
4,441,896 |
|
Liabilities and
Shareholders'Equity |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Deposits |
|
$ |
4,106,119 |
|
|
$ |
3,977,521 |
|
|
$ |
4,016,156 |
|
Borrowed funds |
|
|
63,246 |
|
|
|
25,768 |
|
|
|
3,199 |
|
Subordinated debt |
|
|
59,577 |
|
|
|
59,498 |
|
|
|
59,261 |
|
Lease liability |
|
|
24,303 |
|
|
|
24,441 |
|
|
|
24,285 |
|
Accrued expenses and other liabilities |
|
|
30,945 |
|
|
|
45,011 |
|
|
|
25,737 |
|
Accrued interest payable |
|
|
6,386 |
|
|
|
4,678 |
|
|
|
1,940 |
|
Total liabilities |
|
|
4,290,576 |
|
|
|
4,136,917 |
|
|
|
4,130,578 |
|
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; 12,376,562, 12,272,674 and 12,222,717 shares issued and
outstanding, respectively |
|
|
124 |
|
|
|
123 |
|
|
|
122 |
|
Additional paid-in capital |
|
|
108,246 |
|
|
|
107,377 |
|
|
|
104,621 |
|
Retained earnings |
|
|
306,943 |
|
|
|
301,380 |
|
|
|
282,534 |
|
Accumulated other comprehensive loss |
|
|
(81,874 |
) |
|
|
(79,763 |
) |
|
|
(75,959 |
) |
Total shareholders' equity |
|
|
333,439 |
|
|
|
329,117 |
|
|
|
311,318 |
|
Total liabilities and shareholders' equity |
|
$ |
4,624,015 |
|
|
$ |
4,466,034 |
|
|
$ |
4,441,896 |
|
ENTERPRISE BANCORP, INC. |
Consolidated Statements of Income |
(unaudited) |
|
|
|
Three months ended |
(Dollars in thousands, except per share data) |
|
March 31,2024 |
|
December 31,2023 |
|
March 31,2023 |
Interest and dividend income: |
|
|
|
|
|
|
Other interest-earning assets |
|
$ |
1,172 |
|
|
$ |
2,350 |
|
|
$ |
2,208 |
|
Investment securities |
|
|
4,034 |
|
|
|
4,219 |
|
|
|
5,073 |
|
Loans and loans held for sale |
|
|
48,817 |
|
|
|
46,680 |
|
|
|
39,556 |
|
Total interest and dividend income |
|
|
54,023 |
|
|
|
53,249 |
|
|
|
46,837 |
|
Interest expense: |
|
|
|
|
|
|
Deposits |
|
|
17,272 |
|
|
|
15,821 |
|
|
|
5,987 |
|
Borrowed funds |
|
|
694 |
|
|
|
43 |
|
|
|
12 |
|
Subordinated debt |
|
|
867 |
|
|
|
867 |
|
|
|
867 |
|
Total interest expense |
|
|
18,833 |
|
|
|
16,731 |
|
|
|
6,866 |
|
Net interest income |
|
|
35,190 |
|
|
|
36,518 |
|
|
|
39,971 |
|
Provision for credit
losses |
|
|
622 |
|
|
|
2,493 |
|
|
|
2,736 |
|
Net interest income after provision for credit losses |
|
|
34,568 |
|
|
|
34,025 |
|
|
|
37,235 |
|
Non-interest income: |
|
|
|
|
|
|
Wealth management fees |
|
|
1,850 |
|
|
|
1,797 |
|
|
|
1,587 |
|
Deposit and interchange fees |
|
|
2,069 |
|
|
|
2,145 |
|
|
|
2,048 |
|
Income on bank-owned life insurance, net |
|
|
458 |
|
|
|
314 |
|
|
|
307 |
|
Net gains on sales of loans |
|
|
22 |
|
|
|
— |
|
|
|
14 |
|
Gains (losses) on equity securities |
|
|
465 |
|
|
|
674 |
|
|
|
(16 |
) |
Other income |
|
|
631 |
|
|
|
617 |
|
|
|
817 |
|
Total non-interest income |
|
|
5,495 |
|
|
|
5,547 |
|
|
|
4,757 |
|
Non-interest expense: |
|
|
|
|
|
|
Salaries and employee benefits |
|
|
19,176 |
|
|
|
18,468 |
|
|
|
18,521 |
|
Occupancy and equipment expenses |
|
|
2,459 |
|
|
|
2,283 |
|
|
|
2,501 |
|
Technology and telecommunications expenses |
|
|
2,745 |
|
|
|
2,719 |
|
|
|
2,675 |
|
Advertising and public relations expenses |
|
|
743 |
|
|
|
709 |
|
|
|
681 |
|
Audit, legal and other professional fees |
|
|
734 |
|
|
|
788 |
|
|
|
640 |
|
Deposit insurance premiums |
|
|
859 |
|
|
|
768 |
|
|
|
675 |
|
Supplies and postage expenses |
|
|
237 |
|
|
|
245 |
|
|
|
255 |
|
Other operating expenses |
|
|
1,955 |
|
|
|
2,244 |
|
|
|
2,092 |
|
Total non-interest expense |
|
|
28,908 |
|
|
|
28,224 |
|
|
|
28,040 |
|
Income before income
taxes |
|
|
11,155 |
|
|
|
11,348 |
|
|
|
13,952 |
|
Provision for income
taxes |
|
|
2,648 |
|
|
|
3,441 |
|
|
|
3,184 |
|
Net income |
|
$ |
8,507 |
|
|
$ |
7,907 |
|
|
$ |
10,768 |
|
|
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
0.69 |
|
|
$ |
0.64 |
|
|
$ |
0.89 |
|
Diluted earnings per common
share |
|
$ |
0.69 |
|
|
$ |
0.64 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
Basic weighted average common
shares outstanding |
|
|
12,292,417 |
|
|
|
12,261,918 |
|
|
|
12,155,320 |
|
Diluted weighted average
common shares outstanding |
|
|
12,304,203 |
|
|
|
12,276,769 |
|
|
|
12,193,756 |
|
ENTERPRISE BANCORP, INC. |
Selected Consolidated Financial Data and Ratios |
(unaudited) |
|
|
|
At or for the three months ended |
(Dollars in thousands, except per share
data) |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
|
$ |
147,834 |
|
|
$ |
56,592 |
|
|
$ |
225,421 |
|
|
$ |
258,825 |
|
|
$ |
215,693 |
|
Total investment securities at
fair value |
|
|
652,026 |
|
|
|
668,171 |
|
|
|
678,932 |
|
|
|
712,851 |
|
|
|
830,895 |
|
Total loans |
|
|
3,654,322 |
|
|
|
3,567,631 |
|
|
|
3,404,014 |
|
|
|
3,345,667 |
|
|
|
3,230,156 |
|
Allowance for credit
losses |
|
|
(60,741 |
) |
|
|
(58,995 |
) |
|
|
(57,905 |
) |
|
|
(56,899 |
) |
|
|
(55,002 |
) |
Total assets |
|
|
4,624,015 |
|
|
|
4,466,034 |
|
|
|
4,482,374 |
|
|
|
4,502,344 |
|
|
|
4,441,896 |
|
Total deposits |
|
|
4,106,119 |
|
|
|
3,977,521 |
|
|
|
4,060,403 |
|
|
|
4,075,598 |
|
|
|
4,016,156 |
|
Borrowed funds |
|
|
63,246 |
|
|
|
25,768 |
|
|
|
4,290 |
|
|
|
3,334 |
|
|
|
3,199 |
|
Subordinated debt |
|
|
59,577 |
|
|
|
59,498 |
|
|
|
59,419 |
|
|
|
59,340 |
|
|
|
59,261 |
|
Total shareholders'
equity |
|
|
333,439 |
|
|
|
329,117 |
|
|
|
299,699 |
|
|
|
307,490 |
|
|
|
311,318 |
|
Total liabilities and
shareholders' equity |
|
|
4,624,015 |
|
|
|
4,466,034 |
|
|
|
4,482,374 |
|
|
|
4,502,344 |
|
|
|
4,441,896 |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
Management |
|
|
|
|
|
|
|
|
|
|
Wealth assets under
management |
|
$ |
1,105,036 |
|
|
$ |
1,077,761 |
|
|
$ |
984,647 |
|
|
$ |
1,009,386 |
|
|
$ |
930,714 |
|
Wealth assets under
administration |
|
$ |
268,074 |
|
|
$ |
242,338 |
|
|
$ |
211,046 |
|
|
$ |
214,116 |
|
|
$ |
206,569 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
Ratios |
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
26.94 |
|
|
$ |
26.82 |
|
|
$ |
24.45 |
|
|
$ |
25.11 |
|
|
$ |
25.47 |
|
Dividends paid per common
share |
|
$ |
0.24 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
Total capital to risk weighted
assets |
|
|
13.20 |
% |
|
|
13.12 |
% |
|
|
13.45 |
% |
|
|
13.37 |
% |
|
|
13.55 |
% |
Tier 1 capital to risk
weighted assets(1) |
|
|
10.43 |
% |
|
|
10.34 |
% |
|
|
10.61 |
% |
|
|
10.52 |
% |
|
|
10.64 |
% |
Tier 1 capital to average
assets |
|
|
8.85 |
% |
|
|
8.74 |
% |
|
|
8.59 |
% |
|
|
8.62 |
% |
|
|
8.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
Data |
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
18,527 |
|
|
$ |
11,414 |
|
|
$ |
11,656 |
|
|
$ |
7,647 |
|
|
$ |
7,532 |
|
Non-performing loans to total
loans |
|
|
0.51 |
% |
|
|
0.32 |
% |
|
|
0.34 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
Non-performing assets to total
assets |
|
|
0.40 |
% |
|
|
0.26 |
% |
|
|
0.26 |
% |
|
|
0.17 |
% |
|
|
0.17 |
% |
ACL for loans to total
loans |
|
|
1.66 |
% |
|
|
1.65 |
% |
|
|
1.70 |
% |
|
|
1.70 |
% |
|
|
1.70 |
% |
Net charge-offs
(recoveries) |
|
$ |
122 |
|
|
$ |
15 |
|
|
$ |
(12 |
) |
|
$ |
146 |
|
|
$ |
(44 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
35,190 |
|
|
$ |
36,518 |
|
|
$ |
38,502 |
|
|
$ |
38,093 |
|
|
$ |
39,971 |
|
Provision for credit
losses |
|
|
622 |
|
|
|
2,493 |
|
|
|
1,752 |
|
|
|
2,268 |
|
|
|
2,736 |
|
Total non-interest income |
|
|
5,495 |
|
|
|
5,547 |
|
|
|
4,486 |
|
|
|
2,819 |
|
|
|
4,757 |
|
Total non-interest
expense |
|
|
28,908 |
|
|
|
28,224 |
|
|
|
28,312 |
|
|
|
25,623 |
|
|
|
28,040 |
|
Income before income
taxes |
|
|
11,155 |
|
|
|
11,348 |
|
|
|
12,924 |
|
|
|
13,021 |
|
|
|
13,952 |
|
Provision for income
taxes |
|
|
2,648 |
|
|
|
3,441 |
|
|
|
3,225 |
|
|
|
3,337 |
|
|
|
3,184 |
|
Net income |
|
$ |
8,507 |
|
|
$ |
7,907 |
|
|
$ |
9,699 |
|
|
$ |
9,684 |
|
|
$ |
10,768 |
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Ratios |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share |
|
$ |
0.69 |
|
|
$ |
0.64 |
|
|
$ |
0.79 |
|
|
$ |
0.79 |
|
|
$ |
0.88 |
|
Return on average total
assets |
|
|
0.75 |
% |
|
|
0.69 |
% |
|
|
0.85 |
% |
|
|
0.88 |
% |
|
|
0.99 |
% |
Return on average
shareholders' equity |
|
|
10.47 |
% |
|
|
10.21 |
% |
|
|
12.53 |
% |
|
|
12.63 |
% |
|
|
14.67 |
% |
Net interest margin
(tax-equivalent)(2) |
|
|
3.20 |
% |
|
|
3.29 |
% |
|
|
3.46 |
% |
|
|
3.55 |
% |
|
|
3.76 |
% |
(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) |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
Commercial real estate |
|
$ |
2,159,594 |
|
|
$ |
2,064,737 |
|
|
$ |
2,032,458 |
|
|
$ |
2,009,263 |
|
|
$ |
1,929,544 |
|
Commercial and industrial |
|
|
417,604 |
|
|
|
430,749 |
|
|
|
425,334 |
|
|
|
420,095 |
|
|
|
423,864 |
|
Commercial construction |
|
|
583,711 |
|
|
|
585,113 |
|
|
|
501,179 |
|
|
|
487,018 |
|
|
|
456,735 |
|
Total commercial loans |
|
|
3,160,909 |
|
|
|
3,080,599 |
|
|
|
2,958,971 |
|
|
|
2,916,376 |
|
|
|
2,810,143 |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages |
|
|
400,093 |
|
|
|
393,142 |
|
|
|
362,514 |
|
|
|
346,523 |
|
|
|
335,834 |
|
Home equity loans and
lines |
|
|
85,144 |
|
|
|
85,375 |
|
|
|
74,433 |
|
|
|
74,374 |
|
|
|
75,809 |
|
Consumer |
|
|
8,176 |
|
|
|
8,515 |
|
|
|
8,096 |
|
|
|
8,394 |
|
|
|
8,370 |
|
Total retail loans |
|
|
493,413 |
|
|
|
487,032 |
|
|
|
445,043 |
|
|
|
429,291 |
|
|
|
420,013 |
|
Total loans |
|
|
3,654,322 |
|
|
|
3,567,631 |
|
|
|
3,404,014 |
|
|
|
3,345,667 |
|
|
|
3,230,156 |
|
|
|
|
|
|
|
|
|
|
|
|
ACL for loans |
|
|
(60,741 |
) |
|
|
(58,995 |
) |
|
|
(57,905 |
) |
|
|
(56,899 |
) |
|
|
(55,002 |
) |
Net loans |
|
$ |
3,593,581 |
|
|
$ |
3,508,636 |
|
|
$ |
3,346,109 |
|
|
$ |
3,288,768 |
|
|
$ |
3,175,154 |
|
Deposits are
summarized as follows as of the periods indicated: |
|
(Dollars in thousands) |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
Non-interest checking |
|
$ |
1,050,608 |
|
|
$ |
1,070,104 |
|
|
$ |
1,130,732 |
|
|
$ |
1,273,968 |
|
|
$ |
1,247,253 |
|
Interest-bearing checking |
|
|
730,819 |
|
|
|
697,632 |
|
|
|
727,817 |
|
|
|
701,701 |
|
|
|
641,194 |
|
Savings |
|
|
273,369 |
|
|
|
285,770 |
|
|
|
290,363 |
|
|
|
310,321 |
|
|
|
297,790 |
|
Money market |
|
|
1,469,181 |
|
|
|
1,402,939 |
|
|
|
1,434,036 |
|
|
|
1,373,816 |
|
|
|
1,454,858 |
|
CDs $250,000 or less |
|
|
337,367 |
|
|
|
295,789 |
|
|
|
262,975 |
|
|
|
244,114 |
|
|
|
222,116 |
|
CDs greater than $250,000 |
|
|
244,775 |
|
|
|
225,287 |
|
|
|
214,480 |
|
|
|
171,678 |
|
|
|
152,945 |
|
Deposits |
|
$ |
4,106,119 |
|
|
$ |
3,977,521 |
|
|
$ |
4,060,403 |
|
|
$ |
4,075,598 |
|
|
$ |
4,016,156 |
|
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 March 31, 2024 |
|
Three Months Ended December 31, 2023 |
|
Three months ended March 31, 2023 |
(Dollars in thousands) |
|
AverageBalance |
|
Interest(1) |
|
AverageYield(1) |
|
AverageBalance |
|
Interest(1) |
|
AverageYield(1) |
|
AverageBalance |
|
Interest(1) |
|
AverageYield(1) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest-earning assets(2) |
|
$ |
86,078 |
|
$ |
1,172 |
|
5.48 |
% |
|
$ |
172,167 |
|
$ |
2,350 |
|
5.42 |
% |
|
$ |
198,741 |
|
$ |
2,208 |
|
4.51 |
% |
Investment securities(3) (tax-equivalent) |
|
|
763,692 |
|
|
4,157 |
|
2.18 |
% |
|
|
799,093 |
|
|
4,345 |
|
2.17 |
% |
|
|
937,382 |
|
|
5,300 |
|
2.26 |
% |
Loans and loans held for sale(4) (tax-equivalent) |
|
|
3,608,157 |
|
|
48,960 |
|
5.46 |
% |
|
|
3,467,945 |
|
|
46,824 |
|
5.36 |
% |
|
|
3,200,842 |
|
|
39,679 |
|
5.02 |
% |
Total interest-earnings assets (tax-equivalent) |
|
|
4,457,927 |
|
|
54,289 |
|
4.89 |
% |
|
|
4,439,205 |
|
|
53,519 |
|
4.79 |
% |
|
|
4,336,965 |
|
|
47,187 |
|
4.40 |
% |
Other assets |
|
|
91,794 |
|
|
|
|
|
|
78,102 |
|
|
|
|
|
|
86,580 |
|
|
|
|
Total assets |
|
$ |
4,549,721 |
|
|
|
|
|
$ |
4,517,307 |
|
|
|
|
|
$ |
4,423,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest checking |
|
$ |
1,069,145 |
|
|
— |
|
|
|
$ |
1,155,307 |
|
|
— |
|
|
|
$ |
1,317,534 |
|
|
— |
|
|
Interest checking, savings and money market |
|
|
2,418,947 |
|
|
11,356 |
|
1.89 |
% |
|
|
2,427,089 |
|
|
10,786 |
|
1.76 |
% |
|
|
2,354,967 |
|
|
4,105 |
|
0.71 |
% |
CDs |
|
|
549,097 |
|
|
5,916 |
|
4.33 |
% |
|
|
500,286 |
|
|
5,035 |
|
3.99 |
% |
|
|
337,361 |
|
|
1,882 |
|
2.26 |
% |
Total deposits |
|
|
4,037,189 |
|
|
17,272 |
|
1.72 |
% |
|
|
4,082,682 |
|
|
15,821 |
|
1.54 |
% |
|
|
4,009,862 |
|
|
5,987 |
|
0.61 |
% |
Borrowed funds |
|
|
63,627 |
|
|
694 |
|
4.38 |
% |
|
|
7,572 |
|
|
43 |
|
2.24 |
% |
|
|
3,206 |
|
|
12 |
|
1.57 |
% |
Subordinated debt(5) |
|
|
59,530 |
|
|
867 |
|
5.82 |
% |
|
|
59,451 |
|
|
867 |
|
5.83 |
% |
|
|
59,213 |
|
|
867 |
|
5.85 |
% |
Total funding liabilities |
|
|
4,160,346 |
|
|
18,833 |
|
1.82 |
% |
|
|
4,149,705 |
|
|
16,731 |
|
1.60 |
% |
|
|
4,072,281 |
|
|
6,866 |
|
0.68 |
% |
Other liabilities |
|
|
62,500 |
|
|
|
|
|
|
60,376 |
|
|
|
|
|
|
53,665 |
|
|
|
|
Total liabilities |
|
|
4,222,846 |
|
|
|
|
|
|
4,210,081 |
|
|
|
|
|
|
4,125,946 |
|
|
|
|
Stockholders' equity |
|
|
326,875 |
|
|
|
|
|
|
307,226 |
|
|
|
|
|
|
297,599 |
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
4,549,721 |
|
|
|
|
|
$ |
4,517,307 |
|
|
|
|
|
$ |
4,423,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-rate spread
(tax-equivalent) |
|
|
|
|
|
3.07 |
% |
|
|
|
|
|
3.19 |
% |
|
|
|
|
|
3.72 |
% |
Net interest income
(tax-equivalent) |
|
|
|
|
35,456 |
|
|
|
|
|
|
36,788 |
|
|
|
|
|
|
40,321 |
|
|
Net interest margin
(tax-equivalent) |
|
|
|
|
|
3.20 |
% |
|
|
|
|
|
3.29 |
% |
|
|
|
|
|
3.76 |
% |
Less tax-equivalent
adjustment |
|
|
|
|
266 |
|
|
|
|
|
|
270 |
|
|
|
|
|
|
350 |
|
|
Net interest income |
|
|
|
$ |
35,190 |
|
|
|
|
|
$ |
36,518 |
|
|
|
|
|
$ |
39,971 |
|
|
Net interest margin |
|
|
|
|
|
3.17 |
% |
|
|
|
|
|
3.27 |
% |
|
|
|
|
|
3.73 |
% |
(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 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
Enterprise Bancorp (NASDAQ:EBTC)
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From Apr 2024 to May 2024
Enterprise Bancorp (NASDAQ:EBTC)
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