Source: GlobeNewswire (MIL-OSI)
LOWELL, Mass., April 17, 2025 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. (“Enterprise”) (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended March 31, 2025. Net income amounted to $10.4 million, or $0.84 per diluted common share, for the three months ended March 31, 2025, compared to $10.7 million, or $0.86 per diluted common share, for the three months ended December 31, 2024 and $8.5 million, or $0.69 per diluted common share, for the three months ended March 31, 2024.
On December 9, 2024, Enterprise announced its intention to merge with Rockland Trust Company, a wholly owned subsidiary of Independent Bank Corp. (NASDAQ: INDB). The proposed merger is expected to close in the second half of 2025, subject to customary closing conditions, including regulatory approvals. As previously announced, Enterprise shareholders approved of the proposed merger on April 3, 2025. No vote of Independent Bank Corp. shareholders is required.
Selected financial results at or for the quarter ended March 31, 2025, compared to December 31, 2024, were as follows:
- The returns on average assets and average equity were 0.87% and 11.45%, respectively.
- Tax-equivalent net interest margin (non-GAAP) (“net interest margin”) was 3.32%.
- Total loans amounted to $4.05 billion, an increase of 1.7%.
- Total customer deposits (non-GAAP) amounted to $4.15 billion, a decrease of 0.9%.
- Wealth assets under management and administration amounted to $1.51 billion, a decrease of 1.6%.
Chief Executive Officer Steven Larochelle commented, “As we continue to work toward the upcoming merger with Rockland Trust, I am pleased to announce our team delivered strong results in the first quarter. Loan growth was solid at 1.7% for the quarter and 11% for the last twelve months. Operating results compared to the prior year quarter were positively impacted by net interest income growth of 10% resulting from strong loan growth and an increase in net interest margin.”
Executive Chairman & Founder George Duncan stated, “Our anticipated merger with Rockland Trust has been well received by our shareholders, customers and communities with shareholders approving the merger on April 3rd. The planning for our integration into Rockland Trust is going well and the anticipated synergies and cultural alignment of our two banks remains attractive.”
Net Interest Income
Net interest income for the three months ended March 31, 2025, amounted to $38.7 million, an increase of $3.5 million, or 10%, compared to the three months ended March 31, 2024. The increase was due primarily to an increase in loan interest income of $6.6 million, partially offset by increases in deposit interest expense of $1.0 million and borrowings interest expense of $1.0 million as well as a decrease in income on other interest-earning assets of $637 thousand.
Net Interest Margin
Net interest margin for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, amounted to 3.32%, 3.29% and 3.20%, respectively.
During the first quarter of 2025, the Company sold non-performing loans with a net book value of $956 thousand, resulting in net recoveries of $461 thousand and loan interest income of $486 thousand. The sale of non-performing loans impacted both loan yields and net interest margin favorably by 5 basis points for the quarter ended March 31, 2025.
Three months ended – March 31, 2025, compared to March 31, 2024
The increase in net interest margin was due to loan growth and, to a lesser extent, an increase in loan yields, partially offset by increases in the average balance of funding liabilities and funding costs.
The increase in interest-earning asset yields of 21 basis points was due primarily to loan repricing and originations at higher interest rates, partially offset by an increase in funding costs of 9 basis points driven by higher market rates and increases in certificate of deposits and borrowed funds.
Provision for Credit Losses
The provision for credit losses for the three-month periods ended March 31, 2025 and March 31, 2024, are presented below:
| |
|
Three months ended |
|
Increase / (Decrease) |
| (Dollars in thousands) |
|
March 31,
2025 |
|
March 31,
2024 |
| Provision for credit losses on loans – collectively evaluated |
|
$ |
685 |
|
|
$ |
417 |
|
|
$ |
268 |
|
| Provision for credit losses on loans – individually evaluated |
|
|
(565 |
) |
|
|
1,451 |
|
|
|
(2,016 |
) |
| Provision for credit losses on loans |
|
|
120 |
|
|
|
1,868 |
|
|
|
(1,748 |
) |
| |
|
|
|
|
|
|
| Provision for unfunded commitments |
|
|
211 |
|
|
|
(1,246 |
) |
|
|
1,457 |
|
| |
|
|
|
|
|
|
| Provision for credit losses |
|
$ |
331 |
|
|
$ |
622 |
|
|
$ |
(291 |
) |
The provision for credit losses on collectively evaluated loans of $685 thousand for the quarter ended March 31, 2025, resulted mainly from loan growth, partially offset by net recoveries, which were primarily from the sale of non-performing loans noted above.
The decrease in the provision for credit losses of $291 thousand, compared to the prior year quarter, was due primarily to a net decrease in reserves on individually evaluated loans of $2.0 million, partially offset by an increase in reserves for unfunded commitments of $1.5 million.
The decrease in reserves on individually evaluated loans was due primarily to two commercial relationships that experienced improvement in their collateral valuation compared to the prior year period, while the increase in reserves for unfunded commitments resulted primarily from an increase in off-balance sheet commitments that required a reserve.
Non-Interest Income
Non-interest income for the three months ended March 31, 2025, amounted to $5.2 million, a decrease of $307 thousand, or 6%, compared to the three months ended March 31, 2024. The decrease was due primarily to a decrease in gains on equity securities of $766 thousand, partially offset by an increase in wealth management fees of $247 thousand.
Non-Interest Expense
Non-interest expense for the three months ended March 31, 2025, amounted to $29.9 million, an increase of $1.0 million, or 4%, compared to the three months ended March 31, 2024. The increase was due primarily to increases in salaries and employee benefits expense of $760 thousand and merger-related expenses of $290 thousand.
Income Taxes
The effective tax rate for the three months ended March 31, 2025, amounted to 23.3%, compared to 23.7% for the three months ended March 31, 2024.
Balance Sheet
Total assets amounted to $4.90 billion at March 31, 2025, compared to $4.83 billion at December 31, 2024, an increase of 2%.
Total investment securities at fair value amounted to $603.9 million at March 31, 2025, compared to $593.6 million at December 31, 2024, an increase of 2%. The increase during the three months ended March 31, 2025, was largely attributable to a decrease in unrealized losses on debt securities resulting from decreases in market interest rates during the period, partially offset by principal pay-downs, calls and maturities. Unrealized losses on debt securities amounted to $79.9 million at March 31, 2025, compared to $101.8 million at December 31, 2024, a decrease of 22%.
Total loans amounted to $4.05 billion at March 31, 2025, compared to $3.98 billion at December 31, 2024, an increase of 2%. The increase during the three months ended March 31, 2025, was due primarily to an increase in commercial real estate loans of $70.2 million.
Total deposits amounted to $4.30 billion at March 31, 2025, compared to $4.19 billion at December 31, 2024, an increase of 3%. The increase during the three months ended March 31, 2025, was due primarily to an increase in brokered deposits of $150.0 million. Excluding brokered deposits, total deposits decreased $37.0 million during the first quarter of 2025.
Total borrowed funds amounted to $94.5 million at March 31, 2025, compared to $153.1 million at December 31, 2024, a decrease of 38%. The decrease during the three months ended March 31, 2025, resulted primarily from the increase in brokered deposits during the period.
Total shareholders’ equity amounted to $385.4 million at March 31, 2025, compared to $360.7 million at December 31, 2024, an increase of 7%. The increase during the three months ended March 31, 2025, was due primarily to a decrease in the accumulated other comprehensive loss of $17.0 million and an increase in retained earnings of $7.3 million.
Credit Quality
Selected credit quality metrics at March 31, 2025, compared to December 31, 2024, were as follows:
- The allowance for credit losses (“ACL”) for loans amounted to $64.0 million, or 1.58% of total loans, compared to $63.5 million, or 1.59% of total loans. The decrease in the ACL for loans to total loan ratio was due primarily to a decrease in reserves on individually evaluated loans.
- The reserve for unfunded commitments (included in other liabilities) amounted to $4.6 million, compared to $4.4 million. The increase was driven primarily by an increase in off-balance sheet commitments that required a reserve.
- Non-performing loans amounted to $28.5 million, or 0.70% of total loans, compared to $26.7 million, or 0.67% of total loans.
Net recoveries for the three months ended March 31, 2025, amounted to $424 thousand, or 0.04% of average total loans, which included $461 thousand in recoveries from the sale of non-performing loans noted above. Net charge-offs for the three months ended March 31, 2024, amounted to $122 thousand, or 0.01% of average total loans.
Wealth Management
Wealth assets under management and administration, which are not carried as assets on the Company’s consolidated balance sheets, amounted to $1.51 billion at March 31, 2025, a decrease of $24.7 million, or 2%, compared to December 31, 2024, resulting primarily from a decrease in market values.
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 142 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,” “upcoming,” “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, (i) disruption from the proposed merger with Independent; (ii) the risk that the proposed merger with Independent may not be completed in a timely manner or at all; (iii) the occurrence of any event, change, or other circumstances that could give rise to the termination of the proposed merger with Independent; (iv) the failure to obtain necessary regulatory approvals for the proposed merger with Independent; (v) the ability to successfully integrate the combined business; (vi) the possibility that the amount of the costs, fees, expenses, and charges related to the proposed merger with Independent may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities; (vii) the failure of the conditions to the proposed merger with Independent to be satisfied; (viii) reputational risk and the reaction of the parties’ customers to the proposed merger with Independent; (xi) the risk of potential litigation or regulatory action related to the proposed merger with Independent; (x) the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; (xi) potential recession in the United States and our market areas; (xii) the impacts related to or resulting from uncertainty in the banking industry as a whole; (xiii) increased competition for deposits and related changes in deposit customer behavior; (xiv) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (xv) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (xvi) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (xvii) increases in unemployment rates in the United States and our market areas; (xviii) adverse changes in customer spending and savings habits; (xix) declines in commercial real estate values and prices; (xx) a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainty regarding United States fiscal debt, deficit and budget matters; (xxi) 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; (xxii) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress, including potential changes in U.S. and international trade and tariff policies and the resulting impact on the Company and its customers; (xxiii) the effect of volatility in the capital markets on our fee income from our wealth management business; (xxiv) competition and market expansion opportunities; (xxv) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xxvi) changes in tax laws; (xxvii) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xxviii) potential increased costs related to the impacts of climate change; and (xxix) 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.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
In connection with the proposed transaction between Independent and Enterprise, Independent has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) that includes a proxy statement for a special meeting of Enterprise’s shareholders to approve the proposed transaction and that also constitutes a prospectus for the Independent common stock that will be issued in the proposed transaction, as well as other relevant documents concerning the proposed transaction. INVESTORS AND SHAREHOLDERS OF INDEPENDENT AND ENTERPRISE ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT INDEPENDENT, ENTERPRISE AND THE PROPOSED TRANSACTION. Copies of the Registration Statement and of the proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about Independent and Enterprise, can be obtained, free of charge, as they become available at the SEC’s website (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, without charge, by directing a request to Independent Investor Relations, 288 Union Street, Rockland, Massachusetts 02370, telephone (774) 363-9872 or to Enterprise Bancorp, Inc., 222 Merrimack Street, Lowell, MA 01852, Attention: Corporate Secretary, telephone (978) 656-5578.
ENTERPRISE BANCORP, INC.
Consolidated Balance Sheets
(unaudited) |
| |
| (Dollars in thousands, except per share data) |
|
March 31,
2025 |
|
December 31,
2024 |
|
March 31,
2024 |
| Assets |
|
|
|
|
|
|
| Cash and cash equivalents: |
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
52,194 |
|
|
$ |
42,689 |
|
|
$ |
41,443 |
|
| Interest-earning deposits with banks |
|
|
34,543 |
|
|
|
41,152 |
|
|
|
106,391 |
|
| Total cash and cash equivalents |
|
|
86,737 |
|
|
|
83,841 |
|
|
|
147,834 |
|
| Investments: |
|
|
|
|
|
|
| Debt securities at fair value (amortized cost of $674,601, $685,766 and $749,561 respectively) |
|
|
594,691 |
|
|
|
583,930 |
|
|
|
643,924 |
|
| Equity securities at fair value |
|
|
9,242 |
|
|
|
9,665 |
|
|
|
8,102 |
|
| Total investment securities at fair value |
|
|
603,933 |
|
|
|
593,595 |
|
|
|
652,026 |
|
| Federal Home Loan Bank stock |
|
|
4,932 |
|
|
|
7,093 |
|
|
|
2,482 |
|
| Loans held for sale |
|
|
1,069 |
|
|
|
520 |
|
|
|
400 |
|
| Loans: |
|
|
|
|
|
|
| Total loans |
|
|
4,049,642 |
|
|
|
3,982,898 |
|
|
|
3,654,322 |
|
| Allowance for credit losses |
|
|
(64,042 |
) |
|
|
(63,498 |
) |
|
|
(60,741 |
) |
| Net loans |
|
|
3,985,600 |
|
|
|
3,919,400 |
|
|
|
3,593,581 |
|
| Premises and equipment, net |
|
|
41,464 |
|
|
|
42,444 |
|
|
|
44,671 |
|
| Lease right-of-use asset |
|
|
23,946 |
|
|
|
24,126 |
|
|
|
24,645 |
|
| Accrued interest receivable |
|
|
21,782 |
|
|
|
20,553 |
|
|
|
20,501 |
|
| Deferred income taxes, net |
|
|
42,338 |
|
|
|
49,096 |
|
|
|
47,903 |
|
| Bank-owned life insurance |
|
|
67,927 |
|
|
|
67,421 |
|
|
|
65,878 |
|
| Prepaid income taxes |
|
|
4,099 |
|
|
|
2,583 |
|
|
|
5,771 |
|
| Prepaid expenses and other assets |
|
|
11,006 |
|
|
|
11,398 |
|
|
|
12,667 |
|
| Goodwill |
|
|
5,656 |
|
|
|
5,656 |
|
|
|
5,656 |
|
| Total assets |
|
$ |
4,900,489 |
|
|
$ |
4,827,726 |
|
|
$ |
4,624,015 |
|
| Liabilities and Shareholders‘ Equity |
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
| Customer deposits |
|
$ |
4,150,668 |
|
|
$ |
4,187,698 |
|
|
$ |
4,106,119 |
|
| Brokered deposits |
|
|
149,975 |
|
|
|
— |
|
|
|
— |
|
| Total deposits |
|
|
4,300,643 |
|
|
|
4,187,698 |
|
|
|
4,106,119 |
|
| Borrowed funds |
|
|
94,493 |
|
|
|
153,136 |
|
|
|
63,246 |
|
| Subordinated debt |
|
|
59,894 |
|
|
|
59,815 |
|
|
|
59,577 |
|
| Lease liability |
|
|
23,699 |
|
|
|
23,849 |
|
|
|
24,303 |
|
| Accrued expenses and other liabilities |
|
|
29,422 |
|
|
|
33,425 |
|
|
|
30,945 |
|
| Accrued interest payable |
|
|
6,983 |
|
|
|
9,055 |
|
|
|
6,386 |
|
| Total liabilities |
|
|
4,515,134 |
|
|
|
4,466,978 |
|
|
|
4,290,576 |
|
| 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; 12,510,019, 12,447,308 and 12,376,562 shares issued and outstanding, respectively. |
|
|
125 |
|
|
|
124 |
|
|
|
124 |
|
| Additional paid-in capital |
|
|
111,621 |
|
|
|
111,295 |
|
|
|
108,246 |
|
| Retained earnings |
|
|
335,568 |
|
|
|
328,243 |
|
|
|
306,943 |
|
| Accumulated other comprehensive loss |
|
|
(61,959 |
) |
|
|
(78,914 |
) |
|
|
(81,874 |
) |
| Total shareholders’ equity |
|
|
385,355 |
|
|
|
360,748 |
|
|
|
333,439 |
|
| Total liabilities and shareholders’ equity |
|
$ |
4,900,489 |
|
|
$ |
4,827,726 |
|
|
$ |
4,624,015 |
|
ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited) |
| |
| |
|
Three months ended |
| (Dollars in thousands, except per share data) |
|
March 31,
2025 |
|
December 31,
2024 |
|
March 31,
2024 |
| Interest and dividend income: |
|
|
|
|
|
|
| Other interest-earning assets |
|
$ |
535 |
|
|
$ |
833 |
|
|
$ |
1,172 |
| Investment securities |
|
|
3,608 |
|
|
|
3,881 |
|
|
|
4,034 |
| Loans and loans held for sale |
|
|
55,408 |
|
|
|
54,528 |
|
|
|
48,817 |
| Total interest and dividend income |
|
|
59,551 |
|
|
|
59,242 |
|
|
|
54,023 |
| Interest expense: |
|
|
|
|
|
|
| Deposits |
|
|
18,288 |
|
|
|
19,488 |
|
|
|
17,272 |
| Borrowed funds |
|
|
1,706 |
|
|
|
394 |
|
|
|
694 |
| Subordinated debt |
|
|
867 |
|
|
|
867 |
|
|
|
867 |
| Total interest expense |
|
|
20,861 |
|
|
|
20,749 |
|
|
|
18,833 |
| Net interest income |
|
|
38,690 |
|
|
|
38,493 |
|
|
|
35,190 |
| Provision for credit losses |
|
|
331 |
|
|
|
(106 |
) |
|
|
622 |
| Net interest income after provision for credit losses |
|
|
38,359 |
|
|
|
38,599 |
|
|
|
34,568 |
| Non-interest income: |
|
|
|
|
|
|
| Wealth management fees |
|
|
2,097 |
|
|
|
2,043 |
|
|
|
1,850 |
| Deposit and interchange fees |
|
|
2,157 |
|
|
|
2,240 |
|
|
|
2,069 |
| Income on bank-owned life insurance, net |
|
|
506 |
|
|
|
522 |
|
|
|
458 |
| Net gains on sales of loans |
|
|
47 |
|
|
|
33 |
|
|
|
22 |
| Net (losses) gains on equity securities |
|
|
(301 |
) |
|
|
(30 |
) |
|
|
465 |
| Other income |
|
|
682 |
|
|
|
808 |
|
|
|
631 |
| Total non-interest income |
|
|
5,188 |
|
|
|
5,616 |
|
|
|
5,495 |
| Non-interest expense: |
|
|
|
|
|
|
| Salaries and employee benefits |
|
|
19,936 |
|
|
|
19,276 |
|
|
|
19,176 |
| Occupancy and equipment expenses |
|
|
2,582 |
|
|
|
2,364 |
|
|
|
2,459 |
| Technology and telecommunications expenses |
|
|
2,709 |
|
|
|
2,687 |
|
|
|
2,745 |
| Advertising and public relations expenses |
|
|
752 |
|
|
|
609 |
|
|
|
743 |
| Audit, legal and other professional fees |
|
|
541 |
|
|
|
460 |
|
|
|
734 |
| Deposit insurance premiums |
|
|
878 |
|
|
|
950 |
|
|
|
859 |
| Supplies and postage expenses |
|
|
229 |
|
|
|
242 |
|
|
|
237 |
| Merger-related expenses |
|
|
290 |
|
|
|
1,137 |
|
|
|
— |
| Other operating expenses |
|
|
2,032 |
|
|
|
2,117 |
|
|
|
1,955 |
| Total non-interest expense |
|
|
29,949 |
|
|
|
29,842 |
|
|
|
28,908 |
| Income before income taxes |
|
|
13,598 |
|
|
|
14,373 |
|
|
|
11,155 |
| Provision for income taxes |
|
|
3,163 |
|
|
|
3,646 |
|
|
|
2,648 |
| Net income |
|
$ |
10,435 |
|
|
$ |
10,727 |
|
|
$ |
8,507 |
| |
|
|
|
|
|
|
| Basic earnings per common share |
|
$ |
0.84 |
|
|
$ |
0.86 |
|
|
$ |
0.69 |
| Diluted earnings per common share |
|
$ |
0.84 |
|
|
$ |
0.86 |
|
|
$ |
0.69 |
| |
|
|
|
|
|
|
| Basic weighted average common shares outstanding |
|
|
12,464,721 |
|
|
|
12,433,895 |
|
|
|
12,292,417 |
| Diluted weighted average common shares outstanding |
|
|
12,495,458 |
|
|
|
12,460,063 |
|
|
|
12,304,203 |
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,
2025 |
|
December 31,
2024 |
|
September 30,
2024 |
|
June 30,
2024 |
|
March 31,
2024 |
| Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
| Total cash and cash equivalents |
|
$ |
86,737 |
|
|
$ |
83,841 |
|
|
$ |
88,632 |
|
|
$ |
199,719 |
|
|
$ |
147,834 |
|
| Total investment securities at fair value |
|
|
603,933 |
|
|
|
593,595 |
|
|
|
631,975 |
|
|
|
636,838 |
|
|
|
652,026 |
|
| Total loans |
|
|
4,049,642 |
|
|
|
3,982,898 |
|
|
|
3,858,940 |
|
|
|
3,768,649 |
|
|
|
3,654,322 |
|
| Allowance for credit losses |
|
|
(64,042 |
) |
|
|
(63,498 |
) |
|
|
(63,654 |
) |
|
|
(61,999 |
) |
|
|
(60,741 |
) |
| Total assets |
|
|
4,900,489 |
|
|
|
4,827,726 |
|
|
|
4,742,809 |
|
|
|
4,773,681 |
|
|
|
4,624,015 |
|
| Customer deposits |
|
|
4,150,668 |
|
|
|
4,187,698 |
|
|
|
4,189,461 |
|
|
|
4,248,801 |
|
|
|
4,106,119 |
|
| Brokered deposits |
|
|
149,975 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Borrowed funds |
|
|
94,493 |
|
|
|
153,136 |
|
|
|
59,949 |
|
|
|
61,785 |
|
|
|
63,246 |
|
| Subordinated debt |
|
|
59,894 |
|
|
|
59,815 |
|
|
|
59,736 |
|
|
|
59,657 |
|
|
|
59,577 |
|
| Total shareholders’ equity |
|
|
385,355 |
|
|
|
360,748 |
|
|
|
368,109 |
|
|
|
340,441 |
|
|
|
333,439 |
|
| Total liabilities and shareholders’ equity |
|
|
4,900,489 |
|
|
|
4,827,726 |
|
|
|
4,742,809 |
|
|
|
4,773,681 |
|
|
|
4,624,015 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Wealth Management |
|
|
|
|
|
|
|
|
|
|
| Wealth assets under management |
|
$ |
1,214,050 |
|
|
$ |
1,230,014 |
|
|
$ |
1,212,076 |
|
|
$ |
1,129,147 |
|
|
$ |
1,105,036 |
|
| Wealth assets under administration |
|
$ |
297,233 |
|
|
$ |
305,930 |
|
|
$ |
302,891 |
|
|
$ |
267,529 |
|
|
$ |
268,074 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Shareholders’ Equity Ratios |
|
|
|
|
|
|
|
|
|
|
| Book value per common share |
|
$ |
30.80 |
|
|
$ |
28.98 |
|
|
$ |
29.62 |
|
|
$ |
27.40 |
|
|
$ |
26.94 |
|
| Dividends paid per common share |
|
$ |
0.25 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Regulatory Capital Ratios |
|
|
|
|
|
|
|
|
|
|
| Total capital to risk weighted assets |
|
|
13.06 |
% |
|
|
13.06 |
% |
|
|
13.07 |
% |
|
|
13.07 |
% |
|
|
13.20 |
% |
| Tier 1 capital to risk weighted assets(1) |
|
|
10.39 |
% |
|
|
10.38 |
% |
|
|
10.36 |
% |
|
|
10.34 |
% |
|
|
10.43 |
% |
| Tier 1 capital to average assets |
|
|
8.98 |
% |
|
|
8.94 |
% |
|
|
8.68 |
% |
|
|
8.76 |
% |
|
|
8.85 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Credit Quality Data |
|
|
|
|
|
|
|
|
|
|
| Non-performing loans |
|
$ |
28,479 |
|
|
$ |
26,687 |
|
|
$ |
25,946 |
|
|
$ |
17,731 |
|
|
$ |
18,527 |
|
| Non-performing loans to total loans |
|
|
0.70 |
% |
|
|
0.67 |
% |
|
|
0.67 |
% |
|
|
0.47 |
% |
|
|
0.51 |
% |
| Non-performing assets to total assets |
|
|
0.58 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.37 |
% |
|
|
0.40 |
% |
| ACL for loans to total loans |
|
|
1.58 |
% |
|
|
1.59 |
% |
|
|
1.65 |
% |
|
|
1.65 |
% |
|
|
1.66 |
% |
| Net (recoveries) charge-offs |
|
$ |
(424 |
) |
|
$ |
221 |
|
|
$ |
(7 |
) |
|
$ |
(130 |
) |
|
$ |
122 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Income Statement Data |
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
38,690 |
|
|
$ |
38,493 |
|
|
$ |
38,020 |
|
|
$ |
36,161 |
|
|
$ |
35,190 |
|
| Provision for credit losses |
|
|
331 |
|
|
|
(106 |
) |
|
|
1,332 |
|
|
|
137 |
|
|
|
622 |
|
| Total non-interest income |
|
|
5,188 |
|
|
|
5,616 |
|
|
|
6,140 |
|
|
|
5,628 |
|
|
|
5,495 |
|
| Total non-interest expense |
|
|
29,949 |
|
|
|
29,842 |
|
|
|
29,353 |
|
|
|
29,029 |
|
|
|
28,908 |
|
| Income before income taxes |
|
|
13,598 |
|
|
|
14,373 |
|
|
|
13,475 |
|
|
|
12,623 |
|
|
|
11,155 |
|
| Provision for income taxes |
|
|
3,163 |
|
|
|
3,646 |
|
|
|
3,488 |
|
|
|
3,111 |
|
|
|
2,648 |
|
| Net income |
|
$ |
10,435 |
|
|
$ |
10,727 |
|
|
$ |
9,987 |
|
|
$ |
9,512 |
|
|
$ |
8,507 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Income Statement Ratios |
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per common share |
|
$ |
0.84 |
|
|
$ |
0.86 |
|
|
$ |
0.80 |
|
|
$ |
0.77 |
|
|
$ |
0.69 |
|
| Return on average total assets |
|
|
0.87 |
% |
|
|
0.89 |
% |
|
|
0.82 |
% |
|
|
0.82 |
% |
|
|
0.75 |
% |
| Return on average shareholders’ equity |
|
|
11.45 |
% |
|
|
11.82 |
% |
|
|
11.20 |
% |
|
|
11.55 |
% |
|
|
10.47 |
% |
| Net interest margin (tax-equivalent)(2) |
|
|
3.32 |
% |
|
|
3.29 |
% |
|
|
3.22 |
% |
|
|
3.19 |
% |
|
|
3.20 |
% |
| (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,
2025 |
|
December 31,
2024 |
|
September 30,
2024 |
|
June 30,
2024 |
|
March 31,
2024 |
| Commercial real estate owner-occupied |
|
$ |
708,645 |
|
|
$ |
704,634 |
|
|
$ |
660,063 |
|
|
$ |
660,478 |
|
|
$ |
635,420 |
|
| Commercial real estate non owner-occupied |
|
|
1,629,394 |
|
|
|
1,563,201 |
|
|
|
1,579,827 |
|
|
|
1,544,386 |
|
|
|
1,524,174 |
|
| Commercial and industrial |
|
|
483,165 |
|
|
|
479,821 |
|
|
|
415,642 |
|
|
|
426,976 |
|
|
|
417,604 |
|
| Commercial construction |
|
|
664,936 |
|
|
|
679,969 |
|
|
|
674,434 |
|
|
|
622,094 |
|
|
|
583,711 |
|
| Total commercial loans |
|
|
3,486,140 |
|
|
|
3,427,625 |
|
|
|
3,329,966 |
|
|
|
3,253,934 |
|
|
|
3,160,909 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Residential mortgages |
|
|
450,456 |
|
|
|
443,096 |
|
|
|
424,030 |
|
|
|
413,323 |
|
|
|
400,093 |
|
| Home equity loans and lines |
|
|
105,779 |
|
|
|
103,858 |
|
|
|
95,982 |
|
|
|
93,220 |
|
|
|
85,144 |
|
| Consumer |
|
|
7,267 |
|
|
|
8,319 |
|
|
|
8,962 |
|
|
|
8,172 |
|
|
|
8,176 |
|
| Total retail loans |
|
|
563,502 |
|
|
|
555,273 |
|
|
|
528,974 |
|
|
|
514,715 |
|
|
|
493,413 |
|
| Total loans |
|
|
4,049,642 |
|
|
|
3,982,898 |
|
|
|
3,858,940 |
|
|
|
3,768,649 |
|
|
|
3,654,322 |
|
| |
|
|
|
|
|
|
|
|
|
|
| ACL for loans |
|
|
(64,042 |
) |
|
|
(63,498 |
) |
|
|
(63,654 |
) |
|
|
(61,999 |
) |
|
|
(60,741 |
) |
| Net loans |
|
$ |
3,985,600 |
|
|
$ |
3,919,400 |
|
|
$ |
3,795,286 |
|
|
$ |
3,706,650 |
|
|
$ |
3,593,581 |
|
| Deposits are summarized at the periods indicated were as follows: |
| |
| (Dollars in thousands) |
|
March 31,
2025 |
|
December 31,
2024 |
|
September 30,
2024 |
|
June 30,
2024 |
|
March 31,
2024 |
| Non-interest checking |
|
$ |
1,028,326 |
|
$ |
1,077,998 |
|
$ |
1,064,424 |
|
$ |
1,041,771 |
|
$ |
1,038,887 |
| Interest-bearing checking |
|
|
715,517 |
|
|
699,671 |
|
|
682,050 |
|
|
788,822 |
|
|
730,819 |
| Savings |
|
|
284,960 |
|
|
270,367 |
|
|
279,824 |
|
|
294,566 |
|
|
285,090 |
| Money market |
|
|
1,437,907 |
|
|
1,454,443 |
|
|
1,488,437 |
|
|
1,504,551 |
|
|
1,469,181 |
| CDs $250,000 or less |
|
|
393,890 |
|
|
377,958 |
|
|
375,055 |
|
|
358,149 |
|
|
337,367 |
| CDs greater than $250,000 |
|
|
290,068 |
|
|
307,261 |
|
|
299,671 |
|
|
260,942 |
|
|
244,775 |
| Total customer deposits |
|
|
4,150,668 |
|
|
4,187,698 |
|
|
4,189,461 |
|
|
4,248,801 |
|
|
4,106,119 |
| Brokered deposits |
|
|
149,975 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| Deposits |
|
$ |
4,300,643 |
|
$ |
4,187,698 |
|
$ |
4,189,461 |
|
$ |
4,248,801 |
|
$ |
4,106,119 |
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, 2025 |
|
Three months ended December 31, 2024 |
|
Three months ended March 31, 2024 |
| (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) |
|
$ |
44,673 |
|
$ |
535 |
|
4.86 |
% |
|
$ |
68,224 |
|
$ |
833 |
|
4.85 |
% |
|
$ |
86,078 |
|
$ |
1,172 |
|
5.48 |
% |
| Investment securities(3) (tax-equivalent) |
|
|
689,138 |
|
|
3,705 |
|
2.15 |
% |
|
|
704,629 |
|
|
3,985 |
|
2.26 |
% |
|
|
763,692 |
|
|
4,157 |
|
2.18 |
% |
| Loans and loans held for sale(4) (tax-equivalent) |
|
|
4,015,667 |
|
|
55,555 |
|
5.60 |
% |
|
|
3,911,386 |
|
|
54,673 |
|
5.56 |
% |
|
|
3,608,157 |
|
|
48,960 |
|
5.46 |
% |
| Total interest-earnings assets (tax-equivalent) |
|
|
4,749,478 |
|
|
59,795 |
|
5.10 |
% |
|
|
4,684,239 |
|
|
59,491 |
|
5.06 |
% |
|
|
4,457,927 |
|
|
54,289 |
|
4.89 |
% |
| Other assets |
|
|
98,003 |
|
|
|
|
|
|
101,952 |
|
|
|
|
|
|
91,794 |
|
|
|
|
| Total assets |
|
$ |
4,847,481 |
|
|
|
|
|
$ |
4,786,191 |
|
|
|
|
|
$ |
4,549,721 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest checking |
|
$ |
1,034,122 |
|
|
— |
|
|
|
$ |
1,106,823 |
|
|
— |
|
|
|
$ |
1,069,145 |
|
|
— |
|
|
| Interest checking, savings and money market |
|
|
2,405,722 |
|
|
10,332 |
|
1.74 |
% |
|
|
2,471,854 |
|
|
11,728 |
|
1.89 |
% |
|
|
2,418,947 |
|
|
11,356 |
|
1.89 |
% |
| CDs |
|
|
686,689 |
|
|
7,121 |
|
4.21 |
% |
|
|
683,248 |
|
|
7,760 |
|
4.52 |
% |
|
|
549,097 |
|
|
5,916 |
|
4.33 |
% |
| Brokered deposits |
|
|
76,647 |
|
|
835 |
|
4.42 |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
| Total deposits |
|
|
4,203,180 |
|
|
18,288 |
|
1.68 |
% |
|
|
4,261,925 |
|
|
19,488 |
|
1.82 |
% |
|
|
4,037,189 |
|
|
17,272 |
|
1.72 |
% |
| Borrowed funds |
|
|
154,911 |
|
|
1,706 |
|
4.47 |
% |
|
|
37,812 |
|
|
394 |
|
4.15 |
% |
|
|
63,627 |
|
|
694 |
|
4.38 |
% |
| Subordinated debt(5) |
|
|
59,847 |
|
|
867 |
|
5.79 |
% |
|
|
59,768 |
|
|
867 |
|
5.80 |
% |
|
|
59,530 |
|
|
867 |
|
5.82 |
% |
| Total funding liabilities |
|
|
4,417,938 |
|
|
20,861 |
|
1.91 |
% |
|
|
4,359,505 |
|
|
20,749 |
|
1.89 |
% |
|
|
4,160,346 |
|
|
18,833 |
|
1.82 |
% |
| Other liabilities |
|
|
59,976 |
|
|
|
|
|
|
65,720 |
|
|
|
|
|
|
62,500 |
|
|
|
|
| Total liabilities |
|
|
4,477,914 |
|
|
|
|
|
|
4,425,225 |
|
|
|
|
|
|
4,222,846 |
|
|
|
|
| Stockholders’ equity |
|
|
369,567 |
|
|
|
|
|
|
360,966 |
|
|
|
|
|
|
326,875 |
|
|
|
|
| Total liabilities and stockholders’ equity |
|
$ |
4,847,481 |
|
|
|
|
|
$ |
4,786,191 |
|
|
|
|
|
$ |
4,549,721 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest-rate spread (tax-equivalent) |
|
|
|
|
|
3.19 |
% |
|
|
|
|
|
3.17 |
% |
|
|
|
|
|
3.07 |
% |
| Net interest income (tax-equivalent) |
|
|
|
|
38,934 |
|
|
|
|
|
|
38,742 |
|
|
|
|
|
|
35,456 |
|
|
| Net interest margin (tax-equivalent) |
|
|
|
|
|
3.32 |
% |
|
|
|
|
|
3.29 |
% |
|
|
|
|
|
3.20 |
% |
| Less tax-equivalent adjustment |
|
|
|
|
244 |
|
|
|
|
|
|
249 |
|
|
|
|
|
|
266 |
|
|
| Net interest income |
|
|
|
$ |
38,690 |
|
|
|
|
|
$ |
38,493 |
|
|
|
|
|
$ |
35,190 |
|
|
| Net interest margin |
|
|
|
|
|
3.29 |
% |
|
|
|
|
|
3.27 |
% |
|
|
|
|
|
3.17 |
% |
| (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 Federal Home Loan Bank 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
The MIL Network –
