Selected financial results at or for the three months ended
- 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 toDecember 31, 2023 .
Chief Executive Officer
Net Interest Income
Net interest income for the three months ended
Net Interest Margin
Three months ended –
Net interest margin was 3.20% for the three months ended
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 –
Net interest margin was 3.20% for the three months ended
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
Provision for Credit Losses
The provision for credit losses for the three months ended
Non-Interest Income
Non-interest income for the three months ended
Non-Interest Expense
Non-interest expense for the three months ended
Balance Sheet
Total assets amounted to
Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to
Total investment securities at fair value amounted to
Total loans amounted to
Total deposits amounted to
Total borrowed funds amounted to
Total shareholders' equity amounted to
Credit Quality
Selected credit quality metrics at or for the three months ended
- 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
Wealth Management
Wealth assets are not carried as assets on the Company's consolidated balance sheets.
Wealth assets under management amounted to
Wealth assets under administration amounted to
About
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
ENTERPRISE BANCORP, INC. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(unaudited) | ||||||||||||
(Dollars in thousands, except per share data) | 2024 | 2023 | 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 | 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 | |||||||||
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 | |||||||||
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, | — | — | — | |||||||||
Common stock, | 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) | 2024 | 2023 | 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) | 2024 | 2023 | 2023 | 2023 | 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) | 2024 | 2023 | 2023 | 2023 | 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) | 2024 | 2023 | 2023 | 2023 | 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 | 337,367 | 295,789 | 262,975 | 244,114 | 222,116 | |||||||||||||||
CDs greater than | 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 | Three Months Ended | Three months ended | |||||||||||||||||||||||||
(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) | $ | 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 | |||||||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||
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Source:
2024 GlobeNewswire, Inc., source