Enterprise Bancorp(EBTC) - 2024 Q2 - Quarterly Report

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]