Enterprise Bancorp(US:EBTC)2024-05-07 21:07Financial Performance - Net income for Q1 2024 was $8,507 thousand, a decline of 21.0% from $10,768 thousand in Q1 2023[14]. - Total comprehensive income for Q1 2024 was $6,396 thousand, down from $31,016 thousand in Q1 2023, reflecting a decrease of 79.5%[16]. - Net interest income after provision for credit losses decreased to $34,568 thousand, down 7.1% from $37,235 thousand in the same period last year[14]. - Net interest income for Q1 2024 was $35.2 million, down $4.8 million, or 12%, primarily due to an increase in deposit interest expense of $11.3 million[154]. - Net interest margin decreased to 3.20% in Q1 2024 from 3.76% in Q1 2023[155]. - Total non-interest income for Q1 2024 was $5.5 million, slightly down from $5.5 million in the previous quarter[143]. - Non-interest income increased by $738 thousand, or 16%, to $5.5 million in Q1 2024, driven by gains on equity securities and wealth management fees[168]. - Non-interest expense rose by $868 thousand, or 3%, to $28.9 million in Q1 2024, mainly due to higher salaries and benefits[169]. Assets and Liabilities - Total assets increased to $4,624,015 thousand as of March 31, 2024, up from $4,466,034 thousand at December 31, 2023, representing a growth of 3.5%[12]. - Cash and cash equivalents at the end of the period were $147,834 thousand, a significant increase from $56,592 thousand at the beginning of the period[23]. - Total debt securities at fair value amounted to $643.9 million as of March 31, 2024, down from $661.1 million at December 31, 2023[42]. - The Company’s total amortized cost of debt securities was $749.6 million as of March 31, 2024[42]. - The total fair value of debt securities pledged as collateral was $633.5 million at March 31, 2024, down from $650.8 million at December 31, 2023, indicating a decrease of about 2.0%[45]. - Total deposits grew to $4,106,119 thousand, an increase of 3.2% from $3,977,521 thousand at the end of 2023[12]. - Borrowed funds increased to $63,246 thousand at March 31, 2024, compared to $25,768 thousand at December 31, 2023, reflecting a strategic move to leverage funding for growth[86]. Loans and Credit Quality - Total loans reached $3.654 billion as of March 31, 2024, compared to $3.567 billion at December 31, 2023, indicating a growth of approximately 2.43%[62]. - The allowance for credit losses (ACL) for loans was $60.7 million as of March 31, 2024, compared to $59.0 million at December 31, 2023, representing an increase of about 2.9%[49]. - The ratio of non-accrual loans to total loans increased to 0.51% at March 31, 2024, up from 0.32% at December 31, 2023, primarily due to one commercial construction loan added to non-accrual[66]. - The provision for credit losses for Q1 2024 was $622 thousand, a decrease of $2.1 million compared to Q1 2023[166]. - Non-performing loans to total loans ratio rose to 0.51% at March 31, 2024, from 0.32% at December 31, 2023[139]. - The total past due loans for commercial real estate non-owner-occupied reached $4.4 million as of March 31, 2024[63]. Investments and Securities - The Company invested $3.7 million in the NMTC Investment Fund and anticipates receiving $4.8 million in federal tax credits over the next seven years[32]. - The unrealized losses on debt securities were $105.7 million as of March 31, 2024, compared to $103.1 million at December 31, 2023[42]. - The Company’s investment in federal agency CMO had an amortized cost of $386.6 million and a fair value of $322.8 million as of March 31, 2024[42]. - The fair value of equity securities held increased to $8.1 million at March 31, 2024, up from $7.1 million at December 31, 2023, indicating a growth of approximately 14.1%[47][48]. Shareholder Information - The company declared a common stock dividend of $0.24 per share, totaling $2,944 thousand[19]. - The company declared cash dividends of $2.9 million for the three months ended March 31, 2024, compared to $2.8 million for the same period in 2023, with shareholders purchasing 14,496 shares totaling $398 thousand through the dividend reinvestment plan[200]. - Basic weighted average common shares outstanding rose to 12,292,417 in Q1 2024 from 12,155,320 in Q1 2023, an increase of 1.1%[114]. - Diluted weighted average common shares outstanding increased to 12,304,203 in Q1 2024 compared to 12,193,756 in Q1 2023, reflecting a growth of 0.9%[114]. Risk Management and Compliance - The company adopted ASU 2022-02 effective January 1, 2023, which enhanced disclosure requirements for loan restructurings but did not significantly impact financial statements[71]. - The company has determined that no allowance for credit losses (ACL) for available-for-sale securities was necessary as of March 31, 2024[43]. - The reserve for unfunded commitments decreased to $5.9 million at March 31, 2024, down from $7.1 million at December 31, 2023, suggesting a tightening of credit risk management[79]. - Management believes the company has adequate liquidity to meet its obligations, despite potential economic challenges and uncertainties in the banking industry[209].