PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20Financial%20Statements%20%28unaudited%29) The unaudited consolidated interim financial statements present the company's financial position, results of operations, and cash flows for Q1 2025 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets reached $4.90 billion, driven by loan growth, while liabilities increased due to deposits, and equity rose from reduced comprehensive loss Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total cash and cash equivalents | $86,737 | $83,841 | | Net loans | $3,985,600 | $3,919,400 | | Total assets | $4,900,489 | $4,827,726 | | **Liabilities & Equity** | | | | Total deposits | $4,300,643 | $4,187,698 | | Borrowed funds | $94,493 | $153,136 | | Total liabilities | $4,515,134 | $4,466,978 | | Total shareholders' equity | $385,355 | $360,748 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased 22.7% to $10.4 million in Q1 2025, driven by a 10% rise in net interest income and higher diluted EPS Q1 Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $38,690 | $35,190 | | Provision for credit losses | $331 | $622 | | Total non-interest income | $5,188 | $5,495 | | Total non-interest expense | $29,949 | $28,908 | | Net income | $10,435 | $8,507 | | Diluted earnings per share | $0.84 | $0.69 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income significantly increased to $27.4 million in Q1 2025, driven by a positive change in debt securities fair value - Other comprehensive income, driven by the net change in fair value of debt securities, was a positive **$17.0 million** in Q1 2025, compared to a loss of **$2.1 million** in Q1 2024[15](index=15&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity grew to $385.4 million, primarily from net income and other comprehensive income, partially offset by dividends - Key changes in shareholders' equity for Q1 2025 include net income of **$10.4 million**, other comprehensive income of **$17.0 million**, and dividends declared of **$3.1 million**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $5.4 million, with investing activities using $53.3 million and financing providing $50.8 million Q1 2025 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,395 | $2,177 | | Net cash used in investing activities | ($53,279) | ($74,276) | | Net cash provided by financing activities | $50,780 | $163,341 | | **Net increase in cash and cash equivalents** | **$2,896** | **$91,242** | [Notes to Unaudited Consolidated Interim Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Interim%20Financial%20Statements) Notes detail accounting policies, investment securities, loan portfolio, credit loss allowance, deposits, borrowings, derivatives, and capital adequacy - The company has not materially changed its significant accounting policies from those disclosed in its 2024 Annual Report on Form 10-K[22](index=22&type=chunk) - The company's debt securities portfolio, classified as available-for-sale, had a fair value of **$594.7 million** with unrealized losses of **$80.1 million** at March 31, 2025, primarily due to higher market interest rates. Management concluded no allowance for credit losses was necessary[27](index=27&type=chunk)[28](index=28&type=chunk) - Total loans increased to **$4.05 billion** at March 31, 2025, from **$3.98 billion** at year-end 2024, with commercial loans comprising **86%** of the portfolio[36](index=36&type=chunk) - The Allowance for Credit Losses (ACL) for loans was **$64.0 million**, or **1.58%** of total loans, at March 31, 2025, compared to **$63.5 million**, or **1.59%** of total loans, at December 31, 2024[61](index=61&type=chunk) - The company and its bank subsidiary met all 'well-capitalized' requirements under regulatory frameworks as of March 31, 2025, with a consolidated Total Capital to risk-weighted assets ratio of **13.06%**[89](index=89&type=chunk)[90](index=90&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, highlighting increased net income, loan growth, stable credit quality, and strong capital - The company signed a merger agreement with Independent Bank Corp. on December 9, 2024, which is expected to close in the second half of 2025, pending regulatory approvals[129](index=129&type=chunk) Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $10.4M | $8.5M | | Diluted EPS | $0.84 | $0.69 | | Net Interest Income | $38.7M | $35.2M | | Net Interest Margin | 3.32% | 3.20% | - Total assets grew by **$72.8 million** (**2%**) during Q1 2025 to **$4.90 billion**, primarily due to a **$66.7 million** increase in total loans[132](index=132&type=chunk) - The non-performing loan to total loan ratio was **0.70%** at March 31, 2025, a slight increase from **0.67%** at year-end 2024. The ACL to total loans ratio was **1.58%**[136](index=136&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q1 2025 net income rose 23% to $10.4 million, driven by increased net interest income and margin expansion, despite higher non-interest expenses - Net interest margin increased to **3.32%** in Q1 2025 from **3.20%** in Q1 2024, aided by loan growth and a **5 basis point** favorable impact from the sale of non-performing loans[142](index=142&type=chunk)[143](index=143&type=chunk) - The provision for credit losses decreased by **$291 thousand** year-over-year, mainly due to a **$2.0 million** decrease in provisions for individually evaluated loans, which offset increases in provisions for collectively evaluated loans and unfunded commitments[156](index=156&type=chunk)[165](index=165&type=chunk) - Non-interest income decreased by **$307 thousand**, primarily due to a **$766 thousand** decrease in gains on equity securities[158](index=158&type=chunk) - Non-interest expense increased by **$1.0 million** (**4%**), driven by a **$760 thousand** rise in salaries/benefits and **$290 thousand** in merger-related expenses[159](index=159&type=chunk) [Financial Condition](index=42&type=section&id=Financial%20Condition) Total assets reached $4.90 billion, driven by loan growth and increased deposits, while asset quality remained stable and equity rose Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2025 | % of Total | | :--- | :--- | :--- | | Commercial real estate non owner-occupied | $1,629,394 | 40% | | Commercial real estate owner-occupied | $708,645 | 18% | | Commercial construction | $664,936 | 16% | | Commercial and industrial | $483,165 | 12% | | Residential & Consumer | $563,502 | 14% | | **Total Loans** | **$4,049,642** | **100%** | - Non-performing loans increased slightly to **$28.5 million** (**0.70%** of total loans) at March 31, 2025, from **$26.7 million** (**0.67%** of total loans) at year-end 2024[171](index=171&type=chunk) - Total deposits increased by **3%** to **$4.30 billion**, driven by a **$150.0 million** increase in brokered deposits, while total customer deposits decreased by **$37.0 million**[133](index=133&type=chunk)[181](index=181&type=chunk) - Shareholders' equity increased by **$24.6 million** (**7%**) in Q1 2025, primarily due to a **$17.0 million** decrease in accumulated other comprehensive loss from declining market interest rates[184](index=184&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with significant borrowing capacity and robust capital ratios well above regulatory minimums - At March 31, 2025, the Bank had available borrowing capacity of approximately **$785.0 million** from the FHLB and **$255.0 million** from the FRB[193](index=193&type=chunk) Key Capital Ratios | Ratio | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total capital to risk-weighted assets | 13.06% | 13.06% | | Tier 1 capital to risk-weighted assets | 10.39% | 10.38% | | Tier 1 capital to average assets | 8.98% | 8.94% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Interest rate sensitivity analysis shows net interest income changes of -6.89% for a 200 bps rate rise and +5.05% for a 200 bps decline Interest Rate Sensitivity Analysis (12-month ramp) | Scenario | % Change in Net Interest Income (Mar 31, 2025) | | :--- | :--- | | Rates rise 400 bps | (14.19)% | | Rates rise 200 bps | (6.89)% | | Rates unchanged | 0.00% | | Rates decline 200 bps | 5.05% | [Item 4. Controls and Procedures](index=48&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no significant changes in internal control - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[212](index=212&type=chunk) - No significant changes to internal control over financial reporting occurred during the first quarter of 2025[214](index=214&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=49&type=section&id=Item%201%20Legal%20Proceedings) The company is not involved in any material pending legal proceedings, with current litigation not expected to have a material adverse effect - There are no material pending legal proceedings against the Company, only ordinary routine litigation incidental to business[216](index=216&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A%20Risk%20Factors) No material changes have occurred in the company's risk factors since the 2024 Annual Report on Form 10-K - No material changes have occurred in the Company's risk factors since the 2024 Annual Report on Form 10-K[217](index=217&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 11,243 common shares in Q1 2025, primarily from employees for tax payments on vested restricted stock - In Q1 2025, the company repurchased **11,243** shares. These were tendered by employees for tax payments on vested restricted stock and were not part of a public buyback program[218](index=218&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with Form 10-Q, including officer certifications and Inline XBRL formatted financial statements - Exhibits filed include officer certifications (**31.1**, **31.2**, **32**) and financial data in Inline XBRL format (**101**, **104**)[223](index=223&type=chunk)

Financial Performance - Net income for Q1 2025 was $10.4 million, or $0.84 per diluted share, compared to $10.7 million, or $0.86 per diluted share in Q4 2024, and $8.5 million, or $0.69 per diluted share in Q1 2024[1]. - Net income for the first quarter of 2025 was $10,435 thousand, a decrease of 2.7% compared to $10,727 thousand in the previous quarter[35]. - The diluted earnings per common share for the quarter was $0.84, a decrease from $0.86 in the previous quarter, reflecting a decline of 2.33%[37]. Loan and Deposit Growth - Total loans increased by 1.7% to $4.05 billion compared to the previous quarter, with a year-over-year growth of 11%[3][7]. - Total deposits increased to $4,300,643 thousand as of March 31, 2025, compared to $4,187,698 thousand at December 31, 2024, reflecting a growth of 2.7%[33]. - Total customer deposits decreased to $4,150,668 thousand as of March 31, 2025, down from $4,187,698 thousand at December 31, 2024, a decline of 0.87%[39]. Interest Income and Margin - Net interest income for Q1 2025 was $38.7 million, an increase of $3.5 million, or 10%, compared to Q1 2024[4]. - Net interest margin improved to 3.32% in Q1 2025, up from 3.20% in Q1 2024[5]. - Net interest income for the three months ended March 31, 2025, was $38,690 thousand, up 1.0% from $38,493 thousand in the previous quarter[35]. Non-Interest Income and Expenses - Non-interest income decreased by $307 thousand, or 6%, to $5.2 million compared to Q1 2024, primarily due to a decrease in gains on equity securities[13]. - Non-interest expense increased by $1.0 million, or 4%, to $29.9 million compared to Q1 2024, driven by higher salaries and merger-related expenses[14]. - Non-interest income for the first quarter of 2025 was $5,188 thousand, down from $5,616 thousand in the previous quarter, a decline of 7.6%[35]. Asset Growth - Total assets increased by 2% to $4.90 billion at March 31, 2025, compared to $4.83 billion at December 31, 2024[16]. - Total assets increased to $4,900,489 thousand as of March 31, 2025, up from $4,827,726 thousand at December 31, 2024, representing a growth of 1.5%[33]. - The total assets of the company were $4,847,481 thousand, reflecting an increase from $4,786,191 thousand in the previous quarter[40]. Credit Losses and Reserves - The provision for credit losses decreased by $291 thousand to $331 thousand compared to Q1 2024, mainly due to a net decrease in reserves on individually evaluated loans[11]. - Provision for credit losses was $331 thousand for Q1 2025, compared to a reversal of $106 thousand in the previous quarter[35]. - Non-performing loans increased to $28,479 thousand, representing 0.70% of total loans as of March 31, 2025, compared to 0.67% in the previous quarter[37]. Equity and Capital - Total shareholders' equity increased by 7% to $385.4 million at March 31, 2025, compared to $360.7 million at December 31, 2024[21]. - The book value per common share increased to $30.80 as of March 31, 2025, up from $28.98 at December 31, 2024, a growth of 6.28%[37]. - The Tier 1 capital to risk-weighted assets ratio remained stable at 10.39% as of March 31, 2025, compared to 10.38% in the previous quarter[37]. Mergers and Future Outlook - The anticipated merger with Rockland Trust is expected to close in the second half of 2025, with shareholder approval received on April 3, 2025[2][3]. - The company is in the process of a proposed merger with Independent, which may impact future performance and market position[30].

Merger Agreement - The Company entered into a Merger Agreement with Independent Bank Corp, where each outstanding share of Company common stock will convert into 0.60 shares of Independent common stock and $2.00 in cash[19] - The Merger is expected to close in the second half of 2025, pending regulatory approvals and shareholder votes[19] - Each share of Enterprise common stock will be converted into the right to receive 0.60 of a share of Independent common stock and $2.00 in cash in the Merger[206] - Enterprise shareholders will not know the market value of the consideration they will receive at the effective time of the Merger[207] - The success of the Merger will depend on the ability to successfully combine the businesses of Independent and Enterprise, with potential integration costs expected to be significant[210][212] - Independent and Enterprise expect to incur significant, non-recurring costs related to the Merger, including legal, financial advisory, and regulatory fees[213] - The integration process may result in the loss of key employees and disrupt ongoing businesses, potentially affecting revenue and costs[210] - Independent may fail to realize all anticipated benefits of the Merger if the integration is more difficult or costly than expected[210] - Uncertainty about the effect of the Merger on employees and customers may adversely affect Enterprise's ability to retain key personnel[209] - Independent and Enterprise may incur additional costs to maintain employee morale and retain key employees during the integration[213] - The market price of Independent common stock after the Merger may be affected by factors different from those currently affecting Enterprise common stock[208] - The Merger Agreement restricts Enterprise from taking certain actions without the consent of Independent until the Merger occurs[209] Market Presence and Operations - The Company's primary market area includes Northern Middlesex, Northern Essex, and Northern Worcester counties in Massachusetts, and Southern Hillsborough and Southern Rockingham counties in New Hampshire, with 27 full-service branches[21] - The Company actively seeks to strengthen its market position through organic growth and strategic expansion into neighboring geographic markets[22] - The Company specializes in lending to business entities and individuals, focusing on high-quality, long-term commercial relationships[27] - The Company has a diverse loan portfolio, including commercial real estate, commercial and industrial loans, and residential loans, with varying interest rates and repayment terms[35][36][41] - The Company employs a seasoned commercial lending staff and conducts regular internal and external loan reviews to manage credit risk[29] - The Company offers a range of deposit products, including checking accounts, savings accounts, and term CDs, with FDIC insurance coverage for depositors[46] - The Company provides cash management services that streamline deposit processing and facilitate fund usage for disbursements and automated short-term investments[50] - The Company offers a range of wealth advisory and management services through Enterprise Wealth Management and Enterprise Wealth Services[55] Capital and Financial Management - As of December 31, 2024, the Company believes its current capital is adequate to support ongoing operations and met all capital adequacy requirements under Basel III[75] - The Company primarily invests in debt securities, with all debt securities classified as available-for-sale and carried at fair value[64] - Management utilizes an outside registered investment adviser to manage the corporate and municipal bond portfolios within prescribed guidelines[62] - The Company utilizes brokered deposits as an alternative to borrowed funds to support asset growth beyond internally generated deposits[50] - The Company is required to maintain certain minimum capital ratios under Basel III, including a Total Risk-Based Capital ratio of 10.50%[123] - As of December 31, 2024, the Company met all capital adequacy requirements under Basel III and was classified as "well-capitalized"[125] - The Federal Reserve Board limits the payment of dividends by the Company to ensure it can meet its debts and maintain capital adequacy[126] - The Company must consult with the Federal Reserve Board before redeeming any equity or capital instruments if it could materially affect its capital base[128] - The Bank's regulatory capital ratios were in excess of the levels established for "well-capitalized" institutions as of December 31, 2024[137] - The FDIC requires a Total risk-based capital ratio of 10% and a Tier 1 risk-based capital ratio of 8% for institutions to be classified as "well-capitalized"[135] - The Bank is subject to restrictions on dividend payments based on its capital position and recent net income, requiring approval for dividends exceeding net profits[145] Regulatory Compliance and Risk Management - The Company is subject to supervision and regulation by the Federal Reserve Board and the Massachusetts Division of Banks[101] - The Company must obtain prior approval from the Federal Reserve Board for acquisitions that would result in owning 5% or more of any class of voting securities[104] - The Company is prohibited from engaging in unsafe or unsound banking practices, with the Federal Reserve Board having the authority to terminate such activities[114] - The Company is required to file annual and quarterly reports of its financial condition and results of operations with the Federal Reserve Board[103] - The Bank must comply with capital restoration plans if deemed "undercapitalized" under prompt corrective action regulations[136] - The Bank is required to notify the Federal Reserve or FDIC of significant computer-security incidents within 36 hours[173] - The Company is subject to the Bank Secrecy Act and USA PATRIOT Act, requiring an anti-money laundering program to monitor transactions and report suspicious activities[176] - The final rule by FinCEN mandates covered financial institutions to identify beneficial owners with a 25% or more ownership interest in legal entity customers[177] - The National Defense Authorization Act includes a beneficial ownership registry and increased penalties for violations of the Bank Secrecy Act[178] - FinCEN's final rule on beneficial ownership information reporting requires most corporations to report their beneficial owners to FinCEN[179] - Proposed amendments by federal banking agencies aim to enhance anti-money laundering and counter-terrorism financing programs for supervised institutions[180] - The Company maintains a Compliance Management Program to meet regulatory requirements and monitor compliance effectiveness[195] - The Company’s risk management framework includes credit risk, market risk, liquidity management, and cybersecurity risk[187] - The Company has a Disaster Recovery and Business Continuity Program to ensure rapid recovery from operational disruptions[193] - The Audit Committee oversees the effectiveness of internal controls over financial reporting to ensure accurate disclosures[199] - The Company faces various risks that could materially affect its financial condition and operational results, including regulatory scrutiny and potential penalties[202] Employee and Diversity Initiatives - As of December 31, 2024, the Company employed 576 full-time equivalent team members, with 66% being women and 23% self-identified as black, indigenous, and persons of color[84] - The Company has established several Employee Resource Groups to promote diversity and inclusion within the workplace[83] Competitive Landscape - The Company faces competition from national banks, local banks, credit unions, and the evolving Fintech industry in its market area[96] - The increased use of technology and data analytics is expected to significantly impact the competitive landscape for financial service businesses[98] Compliance and Cybersecurity - The SEC mandates public companies to disclose material cybersecurity incidents within four business days of determination[174] - The Dodd-Frank Act has increased regulations on mortgage lending, requiring mortgage originators to act in the best interests of consumers[160] - The Bank's incentive compensation policies must align with risk management and corporate governance standards to avoid excessive risk-taking[164] - The HMDA Rules have been amended to exempt certain institutions from expanded data collection requirements based on loan origination thresholds[162] - The Bank must implement a comprehensive information security program to protect customer records and comply with federal regulations[172]

Financial Performance - Net income for Q4 2024 was $10.7 million, or $0.86 per diluted share, up from $10.0 million, or $0.80 per diluted share in Q3 2024, and $7.9 million, or $0.64 per diluted share in Q4 2023[3]. - Net income for the year ended December 31, 2024, was $38,733 thousand, a slight increase from $38,058 thousand in 2023, reflecting a growth of 1.8%[32]. - Net income for the quarter reached $10,727 thousand, an increase of 7.4% compared to $9,987 thousand in the prior quarter[35]. - Basic earnings per common share increased to $3.13 for the year ended December 31, 2024, compared to $3.11 in 2023[32]. - The effective tax rate for Q4 2024 was 25.4%, down from 30.3% in Q4 2023, due to annual adjustments[17]. Loan and Asset Growth - Total loans increased by 3.2% to $3.98 billion in Q4 2024, marking the third consecutive year of 12% loan growth[5][20]. - Total assets grew by 8% to $4.83 billion at December 31, 2024, compared to $4.47 billion a year earlier[18]. - Net loans rose to $3,919,400 thousand, an increase of 11.7% from $3,508,636 thousand in the previous year[30]. - Total assets increased to $4,827,726 thousand as of December 31, 2024, up from $4,466,034 thousand a year earlier, representing a growth of 8.1%[30]. - Total loans increased to $3,982,898 thousand, up from $3,858,940 thousand in the previous quarter, representing a growth of 3.2%[35]. Income Sources - Net interest income for Q4 2024 was $38.5 million, a 5% increase from Q4 2023, driven by a $7.8 million rise in loan interest income[6]. - Total interest and dividend income for the year ended December 31, 2024, was $230,270 thousand, up 14.5% from $201,053 thousand in 2023[32]. - Non-interest income for Q4 2024 was $5.6 million, a 1% increase compared to Q4 2023, primarily due to higher wealth management fees[15]. - Non-interest income for the year ended December 31, 2024, was $22,879 thousand, an increase of 30.0% from $17,609 thousand in 2023[32]. - Total non-interest income decreased to $5,616 thousand from $6,140 thousand, a decline of 8.5%[35]. Credit Quality - The provision for credit losses decreased by $2.6 million to $(106) thousand in Q4 2024, reflecting improvements in collateral valuations and a decrease in reserves for unfunded commitments[13]. - Non-performing loans increased to $26.7 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans in the previous year[25]. - Provision for credit losses decreased to $1,985 thousand for the year ended December 31, 2024, down from $9,249 thousand in 2023[32]. - Non-performing loans rose to $26,687 thousand, maintaining a ratio of 0.67% to total loans, unchanged from the previous quarter[35]. Mergers and Future Outlook - The company announced a merger agreement with Independent Bank Corp., expected to close in the second half of 2025, enhancing market presence and operational synergies[4]. - The company is currently pursuing a proposed merger with Independent, which may impact future performance and market position[28]. - The company anticipates continued growth and stability in its financial performance, subject to economic conditions and regulatory approvals related to the proposed transaction with Independent Bank Corp[42][43]. Wealth Management - Wealth assets under management increased by 16% to $1.54 billion at December 31, 2024, driven by rising market values[25]. - Wealth assets under management increased to $1,230,014 thousand, up from $1,212,076 thousand, reflecting a growth of 1.5%[35]. Capital and Equity - Stockholders' equity increased to $360,966 thousand, compared to $354,736 thousand in the previous quarter[39]. - The Tier 1 capital to risk-weighted assets ratio remained stable at 10.38% compared to 10.36% in the previous quarter[35].

Loan Portfolio and Credit Quality - The total loan portfolio amounts to $3,858,940,000, with a significant decrease from $6,358,660,000 in the previous period[47] - Current period charge-offs total $308,000, showing an increase from $470,000 in the previous period[47] - The pass-rated loans in commercial real estate owner-occupied category decreased to $35,994,000 from $93,047,000[47] - The total commercial real estate non-owner-occupied loans pass rating is $114,663,000, down from $143,443,000[47] - The commercial and industrial loans pass rating stands at $55,028,000, a decrease from $64,558,000[47] - The residential mortgages pass rating decreased to $52,699,000 from $80,896,000[47] - Home equity loans pass rating is $356,000, down from $457,000[47] - Consumer loans pass rating increased to $3,285,000 from $2,197,000[47] - The total current period charge-offs for consumer loans is $59,000, up from $3,000[47] - The company continues to monitor internal credit quality indicators to minimize credit losses[45] - Total loans amounted to $3,567,631 thousand, a decrease from $4,000,000 thousand in the previous year, reflecting a decline of approximately 10.8%[48] - The total amortized cost basis of adversely classified loans was $54.8 million, or 1.42% of total loans, as of September 30, 2024, compared to $56.7 million, or 1.59% of total loans, at December 31, 2023[48] - Current period charge-offs for total loans were $50 thousand, down from $248 thousand in the previous year, indicating a reduction of approximately 79.8%[48] - The total past due loans reached $6,732 thousand, with $3,184 thousand past due for 30-59 days and $2,708 thousand past due for 90 days or more[50] - Non-accrual loans totaled $25,946 thousand, with $14,773 thousand classified under commercial construction[52] - The balance of commercial real estate owner-occupied loans was $82,531 thousand, a decrease from $84,677 thousand year-over-year[48] - Residential mortgages totaled $393,142 thousand, down from $421,202 thousand, reflecting a decline of approximately 6.7%[50] - Commercial and industrial loans amounted to $430,749 thousand, a decrease from $585,113 thousand, indicating a decline of approximately 26.4%[50] - The total past due loans amounted to $7,906 million as of September 30, 2024, with no subsequent defaults on modified loans[64] - The company modified loans for borrowers experiencing financial difficulty, with various concessions including principal forgiveness and interest rate reductions[59] - The company closely monitors the performance of modified loans to assess the effectiveness of its modification efforts[63] - The ratio of non-accrual loans to total loans was 0.32% at December 31, 2023[53] - The provision for credit losses on loans was $1.332 million for the three months ended September 30, 2024, compared to $1.752 million for the same period in 2023, reflecting a decrease of 24%[65] - The allowance for credit losses (ACL) for loans increased to $63.7 million at September 30, 2024, from $59.0 million at December 31, 2023, representing a growth of 4.7%[66] Deposits and Borrowings - The total deposits amounted to $4.189 billion as of September 30, 2024, up from $3.978 billion at December 31, 2023, indicating an increase of 5.3%[75] - The reserve for unfunded commitments decreased to $4.6 million at September 30, 2024, down from $7.1 million at December 31, 2023, a reduction of 35.2%[69] - The total borrowed funds increased to $59.949 million at September 30, 2024, compared to $25.768 million at December 31, 2023, marking a significant rise of 132.8%[77] - The company had $875.3 million in reciprocal deposits at September 30, 2024, compared to $835.0 million at December 31, 2023, reflecting an increase of 4.9%[76] - The outstanding subordinated debt was $59.7 million at September 30, 2024, slightly up from $59.5 million at December 31, 2023[78] Capital and Equity - The Company had a total capital to risk-weighted assets ratio of 13.07% as of September 30, 2024, exceeding the minimum requirement of 8.00%[96] - The Tier 1 capital to risk-weighted assets ratio was 10.36% as of September 30, 2024, above the minimum requirement of 6.00%[96] - Total shareholders' equity increased by $39.0 million, or 12%, during the nine months ended September 30, 2024, primarily due to a $19.1 million rise in retained earnings[139] - The balance of shareholders' equity increased to $368,109,000 as of September 30, 2024, compared to $299,699,000 as of September 30, 2023[12] - Total stockholders' equity increased to $368,109 thousand as of September 30, 2024, up from $329,117 thousand at the end of 2023, reflecting a growth of 11.9%[15] Income and Expenses - Net income for Q3 2024 was $10.0 million, or $0.80 per diluted share, up from $9.7 million, or $0.79 per diluted share in Q3 2023, reflecting a $288 thousand increase primarily due to a $1.7 million rise in non-interest income[135] - For the nine months ended September 30, 2024, net income decreased to $28.0 million, or $2.26 per diluted share, from $30.2 million, or $2.46 per diluted share in the same period of 2023, a decline of $2.1 million attributed to a $7.2 million drop in net interest income[136] - Net interest income decreased by $482 thousand, or 1%, to $38.0 million, primarily due to a $7.7 million increase in deposit interest expense[143] - Net interest margin was 3.22% for Q3 2024, down from 3.46% in the prior year period, impacted by increased funding costs[145] - Non-interest income for the three months ended September 30, 2024, amounted to $6.1 million, an increase of $1.7 million compared to the prior year period[156] - Non-interest expense for the three months ended September 30, 2024, amounted to $29.4 million, an increase of $1.0 million, or 4%, compared to the prior year period[157] - The provision for credit losses for the three months ended September 30, 2024, was $1,332 million, a decrease of $420 thousand compared to the prior year period[153] Assets and Securities - Total assets for the Company as of September 30, 2024, amounted to $511.7 million, with a capital adequacy ratio of 13.12%[98] - Total assets increased to $4.74 billion as of September 30, 2024, a rise of $276.8 million, or 6%, driven by an $291.3 million increase in total loans, primarily in commercial real estate and construction loans[137] - The fair value of debt securities is $622,527,000, a decrease from $661,113,000 as of December 31, 2023, representing a decline of approximately 5.8%[113][114] - The fair value of individually evaluated loans (collateral dependent) increased to $11,181,000 as of September 30, 2024, compared to $1,595,000 at December 31, 2023, indicating a significant increase of 600%[120][119] - The specific reserve assigned to collateral dependent loans rose to $8,000,000 at September 30, 2024, up from $2,800,000 at December 31, 2023, reflecting a 185.7% increase[119] - The fair value of equity securities decreased to $9,448,000 as of September 30, 2024, from $7,058,000 at December 31, 2023, reflecting an increase of 33.8%[114][115] Dividends and Stock Compensation - The company declared cash dividends of $8.9 million for the nine months ended September 30, 2024[202] - The Company granted a total of 122,042 restricted stock awards during the nine months ended September 30, 2024, compared to 73,904 in the same period of 2023[106] - Total stock-based compensation expense for the three months ended September 30, 2024, was $622 thousand, compared to $584 thousand for the same period in 2023[102] - The average grant date fair value of restricted stock awards decreased from $32.04 in 2023 to $24.68 in 2024[106]

Financial Performance - Net income for Q3 2024 was $10.0 million, or $0.80 per diluted share, compared to $9.5 million in Q2 2024 and $9.7 million in Q3 2023[1] - Net income for the three months ended September 30, 2024, was $9,987 thousand, compared to $9,512 thousand in the previous quarter, indicating a growth of 5.0%[20] - Basic earnings per common share increased to $0.80 for the three months ended September 30, 2024, compared to $0.77 in the previous quarter[20] - The diluted earnings per common share increased to $0.80, compared to $0.77 in the previous quarter, reflecting a growth of 3.9%[23] Loans and Deposits - Total loans increased to $3.86 billion, a rise of 2.4% from the previous quarter and 13.4% year-over-year[2] - Total deposits decreased to $4.19 billion, down 1.4% from the previous quarter, but increased by 5.3% in 2024[2] - Net loans reached $3,795,286 thousand, an increase of 8.2% from $3,508,636 thousand in the previous quarter[18] - Total commercial loans reached $3,329,966 thousand, an increase from $2,958,971 thousand a year ago, representing a growth of 12.5%[24] - Total deposits rose to $4,295,183,000, an increase of 3.10% from $4,166,426,000[27] Assets and Liabilities - Total assets reached $4.74 billion, a 6% increase from $4.47 billion at the end of 2023[10] - Total assets increased to $4,742,809 thousand as of September 30, 2024, up from $4,466,034 thousand at December 31, 2023, representing a growth of 6.2%[18] - Total liabilities increased to $4,374,700 thousand, up from $4,136,917 thousand at the end of the previous quarter, reflecting a growth of 5.8%[18] - Stockholders' equity increased to $354,736,000 from $331,367,000, indicating a growth of 7.06%[27] Income and Expenses - Non-interest income rose to $6.1 million, an increase of $1.7 million compared to Q3 2023, driven by gains on equity securities and wealth management fees[8] - Non-interest income totaled $6,140 thousand for the three months ended September 30, 2024, compared to $5,628 thousand in the previous quarter, marking a 9.1% increase[20] - Non-interest expense increased by 4% to $29.4 million, primarily due to a rise in salaries and employee benefits[9] Credit Quality - The provision for credit losses was $1.332 million, a decrease of $420 thousand compared to Q3 2023[7] - Non-performing loans increased to $25.9 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans, at the end of 2023[12] - The allowance for credit losses was $63,654 thousand, up from $58,995 thousand in the previous quarter, indicating a proactive approach to risk management[18] Wealth Management - Wealth assets under management grew to $1.51 billion, a 15% increase since December 31, 2023[13] - Wealth assets under management reached $1,212,076 thousand, up from $984,647 thousand a year ago, reflecting a growth of 23.1%[23] Interest Income and Margin - Total interest and dividend income for the three months ended September 30, 2024, was $60,141 thousand, a rise of 5.3% compared to $56,864 thousand for the previous quarter[20] - Net interest income after provision for credit losses was $36,688 thousand, slightly up from $36,024 thousand in the previous quarter[20] - Net interest income (tax-equivalent) for the quarter was $38,277,000, up from $36,417,000, representing a 5.09% increase[27] - The net interest margin (tax-equivalent) improved to 3.22% compared to 3.19% in the previous quarter[27]

Financial Performance - Total assets increased to $4,773,681 thousand as of June 30, 2024, compared to $4,466,034 thousand at December 31, 2023, reflecting a growth of 6.9%[8] - Total loans rose to $3,768,649 thousand, up from $3,567,631 thousand, marking an increase of 5.6%[8] - Deposits grew significantly to $4,248,801 thousand, compared to $3,977,521 thousand, representing a 6.8% increase[8] - Net income for Q2 2024 was $9,512, a decrease of 1.8% from $9,684 in Q2 2023[10] - Basic earnings per share for Q2 2024 was $0.77, down from $0.79 in Q2 2023[9] - Total comprehensive income for Q2 2024 was $9,080, compared to a loss of $1,950 in Q2 2023[10] - Net income for the six months ended June 30, 2024, was $18,019 thousand, compared to $20,452 thousand for the same period in 2023, representing a decrease of approximately 11.3%[16] Income and Expenses - Total interest and dividend income for Q2 2024 was $56,864, an increase of 16.5% compared to $48,682 in Q2 2023[9] - Net interest income after provision for credit losses was $36,024 for Q2 2024, slightly up from $35,825 in Q2 2023[9] - Non-interest income increased significantly to $5,628 in Q2 2024, compared to $2,819 in Q2 2023, representing a growth of 100.5%[9] - Total non-interest expense rose to $29,029 in Q2 2024, up from $25,623 in Q2 2023, marking an increase of 9.3%[9] - Net interest income for the six months ended June 30, 2024, was $71.4 million, a decrease of $6.7 million, or 9%, primarily due to an increase in deposit interest expense of $20.8 million[134] Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased to $61,999 thousand from $58,995 thousand, reflecting a rise of 3.4%[8] - The provision for credit losses decreased significantly to $759 thousand in 2024 from $5,004 thousand in 2023, indicating improved credit quality[16] - The provision for credit losses for loans was $1,128 million for the three months ended June 30, 2024, compared to $2,043 million for the same period in 2023[56] - The ACL to total loans ratio was 1.65% at June 30, 2024, compared to 1.70% at June 30, 2023[128] Shareholders' Equity and Dividends - Shareholders' equity reached $340,441 thousand, up from $329,117 thousand, showing an increase of 3.9%[8] - The company declared a common stock dividend of $0.24 per share for Q2 2024, compared to $0.23 per share in Q2 2023[12] - The balance of total shareholders' equity increased to $340,441 as of June 30, 2024, from $311,318 as of June 30, 2023[12] - The company declared common stock dividends of $0.48 per share for the six months ended June 30, 2024, compared to $0.46 per share in 2023, reflecting a slight increase in shareholder returns[14] Liquidity and Cash Flow - The company reported net cash provided by operating activities increased to $15,889 thousand in 2024 from $8,070 thousand in 2023, reflecting a growth of approximately 96.5%[16] - Cash and cash equivalents at the end of the period were $199,719 thousand, compared to $258,825 thousand at the end of June 30, 2023, showing a decrease of approximately 22.8%[16] - The company reported net cash used in investing activities of $174,732 thousand for the six months ended June 30, 2024, compared to $51,619 thousand in 2023, representing a significant increase[16] Loans and Loan Portfolio - The total loan portfolio increased to $3.769 billion as of June 30, 2024, compared to $3.568 billion at December 31, 2023, reflecting a growth of approximately 5.6%[34] - The company serviced residential mortgage loans amounting to $7.4 million and commercial loans of $73.0 million as of June 30, 2024[36] - The total commercial real estate loans increased to $2.205 billion as of June 30, 2024, from $2.064 billion at December 31, 2023[34] - Non-performing loans increased to $17.73 million, or 0.47% of total loans, compared to $11.41 million, or 0.32% at December 31, 2023[154] Investment Securities - The total debt securities at fair value amounted to $628,314 thousand as of June 30, 2024, down from $734,523 thousand at the end of 2023, indicating a reduction in investment securities[25] - The fair value of the investment securities portfolio decreased by $31.3 million, or 5%, totaling $636.8 million at June 30, 2024[146] - The company does not intend to sell its investments in debt securities before recovering their amortized cost basis[26] Market Presence and Strategic Initiatives - The company is focused on expanding its market presence and enhancing product offerings through strategic initiatives[6] - Wealth assets under management and administration amounted to $1.40 billion, reflecting a 1.7% increase[110] - Wealth assets under management increased by $51.4 million, or 5%, to $1.13 billion, while wealth assets under administration rose by $25.2 million, or 10%, to $267.5 million as of June 30, 2024[175]

Financial Performance - Net income for the second quarter of 2024 was $9.5 million, or $0.77 per diluted common share, compared to $8.5 million, or $0.69 per diluted common share in the previous quarter, and $9.7 million, or $0.79 per diluted common share in the same quarter last year[1]. - Net income for the three months ended June 30, 2024, was $9,512,000, representing a 11.8% increase compared to $8,507,000[50]. - Basic earnings per common share increased to $0.77 for the three months ended June 30, 2024, compared to $0.69 for the previous quarter, marking a growth of 11.6%[48]. - Return on average shareholders' equity improved to 11.55%, compared to 10.47% in the previous period[50]. Loans and Deposits - Total loans increased by 6% to $3.77 billion at June 30, 2024, up from $3.57 billion at December 31, 2023, primarily driven by a $140.1 million increase in commercial real estate loans[22]. - Total deposits rose by 7% to $4.25 billion at June 30, 2024, compared to $3.98 billion at December 31, 2023, with significant increases in money market and certificate of deposit balances[12]. - Total loans rose to $3,768,649 thousand, up 3.1% from $3,654,322 thousand[50]. - Total deposits increased to $4,248,801 thousand, up 3.5% from $4,106,119 thousand[50]. Income and Expenses - Non-interest income for the second quarter of 2024 was $5.6 million, an increase of $2.8 million compared to the same period last year, primarily due to higher wealth management fees[9]. - Total non-interest income rose to $5,628 thousand, an increase of 2.4% from $5,495 thousand[50]. - Total non-interest expense was $29,029,000 for the three months ended June 30, 2024, slightly higher than $28,908,000 in the previous quarter, indicating a rise of 0.4%[48]. Interest and Margins - Net interest margin was stable at 3.19% for the second quarter of 2024, a slight decrease from 3.20% in the previous quarter and down from 3.55% in the same quarter last year[6]. - Total interest and dividend income for the three months ended June 30, 2024, was $56,864,000, an increase of 5.3% from $54,023,000 for the previous quarter[48]. - Net interest income after provision for credit losses was $36,024,000 for the three months ended June 30, 2024, compared to $34,568,000 for the previous quarter, reflecting a growth of 4.2%[48]. - The company reported a net interest margin (tax-equivalent) of 3.19%, slightly down from 3.20% in the previous quarter[53]. Asset Management - Total assets amounted to $4.77 billion, representing a 7% increase from $4.47 billion at December 31, 2023[39]. - Total assets grew to $4,680,185, compared to $4,549,721 in the previous quarter[53]. - Wealth assets under management and administration reached $1.40 billion, an increase of 1.7% compared to the previous quarter[16]. Credit Quality - Non-performing loans amounted to $17.7 million, or 0.47% of total loans, compared to $11.4 million, or 0.32% of total loans in the previous year[13]. - Provision for credit losses was $137,000 for the three months ended June 30, 2024, significantly lower than $622,000 in the previous quarter, indicating a decrease of 78%[48]. - Non-performing loans decreased to $17,731 thousand, down from $18,527 thousand, a reduction of 4.3%[50]. Shareholder Equity - Total shareholders' equity increased by 3% to $340.4 million at June 30, 2024, from $329.1 million at December 31, 2023, primarily due to an increase in retained earnings[23]. - Total shareholders' equity increased to $340,441 thousand from $329,117 thousand at December 31, 2023[47]. - Book value per common share increased to $27.40, up from $26.94, a growth of 1.7%[50].

Core Insights - Enterprise Bank has appointed David Lynch as Managing Director and Chief Investment Officer of Enterprise Wealth Management, overseeing the wealth management division and setting strategic direction [1][3] - Lynch brings over 25 years of experience in the wealth management industry, previously serving as Chief Investment Officer at Cambridge Trust Company, managing $4.5 billion in investment portfolios [3][4] - The wealth management division at Enterprise Bank currently manages over $1.3 billion in assets and is experiencing growth [4] Company Overview - Enterprise Bank is characterized as a community bank with a mission to create successful businesses and prosperous communities, offering sophisticated services akin to larger banks while maintaining a personal touch [6] - The bank emphasizes a culture of service excellence and community involvement, which Lynch aims to continue [2][6] Leadership and Expertise - David Lynch is recognized for his extensive track record in wealth management, making him a suitable leader for Enterprise Wealth Management [7] - Lynch holds a Bachelor of Arts in Economics from Dartmouth College and an MBA from Babson College, and is a CFA charterholder [7]

Core Points - John "Jack" P. Clancy Jr. is retiring after a distinguished 35-year career at Enterprise Bank, including over 17 years as CEO, and will serve as an executive advisor during the transition [4][5] - Steven R. Larochelle, previously Chief Banking Officer, has been appointed as the new CEO, bringing over 27 years of experience with the bank [2][4][3] - Under Clancy's leadership, Enterprise Bank expanded from 14 branches to 27 and increased total assets from $980 million in 2006 to $4.6 billion as of March 2024 [5] Company Overview - Enterprise Bancorp, Inc. operates primarily through Enterprise Bank and Trust Company, which has reported 138 consecutive profitable quarters [6] - The bank offers a variety of services including commercial, residential, and consumer loans, deposit products, cash management services, and wealth management [6] - Enterprise Bank has 27 full-service branches located in Massachusetts and New Hampshire, serving communities in Northern Middlesex, Northern Essex, and Northern Worcester counties in Massachusetts, as well as Southern Hillsborough and Southern Rockingham counties in New Hampshire [6]