Enterprise Bancorp(US:EBTC)2025-01-28 21:16Financial 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].