Enterprise Bancorp(US:EBTC)2023-11-06 16:00Financial Performance - Net income for the three months ended September 30, 2023, was $9,699 thousand, down 19.0% from $11,962 thousand in the prior year[11]. - Basic earnings per share decreased to $0.79 for the three months ended September 30, 2023, compared to $0.99 for the same period in 2022, a decline of 20.2%[11]. - Net income for the nine months ended September 30, 2023, was $30,151 thousand, slightly down from $30,410 thousand in the same period of 2022, representing a decrease of 0.9%[23]. - Net income for Q3 2023 was $9.7 million, a decrease of $2.3 million, or 19%, compared to Q3 2022[154]. - Net interest income for Q3 2023 was $38.5 million, down $1.3 million, or 3%, from Q3 2022, primarily due to an increase in deposit interest expense of $11.4 million[155]. - Non-interest income for the three months ended September 30, 2023, was $4.5 million, a decrease of $39 thousand, or 1%, compared to the same period in 2022[170]. - Non-interest income for the nine months ended September 30, 2023, was $12.1 million, a decrease of $2.2 million, or 15%, compared to the same period in 2022[191]. Asset and Liability Management - Total assets increased to $4,482,374 thousand as of September 30, 2023, compared to $4,438,333 thousand at December 31, 2022, reflecting a growth of 1.0%[9]. - Total liabilities increased to $4,182,675 thousand as of September 30, 2023, from $4,156,066 thousand at December 31, 2022, a growth of 0.6%[9]. - Shareholders' equity rose to $299,699 thousand as of September 30, 2023, compared to $282,267 thousand at December 31, 2022, reflecting a growth of 6.2%[9]. - Total cash and cash equivalents at the end of the period decreased to $225,421 thousand from $413,688 thousand, a decline of 45.5%[23]. - The total deposits as of September 30, 2023, were $4.06 billion, slightly up from $4.04 billion at December 31, 2022, showing a marginal increase of 0.9%[87]. - The total fair value of debt securities as of September 30, 2023, was $672.894 million, down from $816.102 million as of December 31, 2022, a decrease of 17.5%[120]. Loan and Credit Quality - Net loans rose to $3,346,109 thousand, up from $3,127,878 thousand year-over-year, representing an increase of 7.0%[9]. - The allowance for credit losses (ACL) for loans was $57.9 million as of September 30, 2023, compared to $52.6 million at December 31, 2022, reflecting an increase of 10.5%[48]. - The ratio of non-accrual loans to total loans increased to 0.34% at September 30, 2023, compared to 0.19% at December 31, 2022[64]. - Non-performing loans increased to $11.66 million, representing 0.34% of total loans as of September 30, 2023, up from 0.23% in the prior quarter[154]. - The total provision for credit losses for the three months ended September 30, 2023, was $1.75 million, compared to $1.00 million for the same period in 2022, reflecting a 75% increase[77]. - The total provision for credit losses for the nine months ended September 30, 2023, was $6.76 million, up from $3.94 million in 2022, indicating a 71.5% increase[77]. Dividends and Stock Performance - The company declared a common stock dividend of $0.230 per share for the three months ended September 30, 2023, compared to $0.205 per share in the same period of 2022[16]. - The company declared common stock dividends of $0.690 per share in 2023, compared to $0.615 per share in 2022, an increase of 12.2%[23]. - The diluted weighted average common shares outstanding for the three months ended September 30, 2023, was 12,264,778, compared to 12,156,695 for the same period in 2022, an increase of 0.9%[117]. - Book value per common share decreased to $24.45 as of September 30, 2023, from $25.11 as of June 30, 2023[154]. Capital and Regulatory Compliance - As of September 30, 2023, the Company had total capital to risk-weighted assets (RWA) of $503.6 million, representing a ratio of 13.45%[105]. - The Company maintained Tier 1 capital to RWA of $397.2 million, which is 10.61% as of September 30, 2023[105]. - The capital conservation buffer for both the Company and the Bank amounted to $93.6 million as of September 30, 2023, exceeding the Basel III requirements[107]. - The Company met the definition of "well-capitalized" under applicable regulations as of September 30, 2023[104]. Investment and Securities - The company invested $3.7 million in the NMTC Investment Fund, anticipating $4.8 million in federal tax credits over the next seven years[32]. - The fair value of the investment securities portfolio was $678.9 million at September 30, 2023, a decrease of $141.4 million, or 17%, since December 31, 2022[197]. - The company held equity securities with a fair value of $6.0 million at September 30, 2023, up from $4.3 million at December 31, 2022, marking a growth of 39.5%[46].