Bay Street News

Enterprise Bancorp, Inc. Announces Second Quarter Financial Results

LOWELL, Mass., July 23, 2024 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended June 30, 2024. Net income amounted to $9.5 million, or $0.77 per diluted common share, for the three months ended June 30, 2024 compared to $8.5 million, or $0.69 per diluted common share, for the three months ended March 31, 2024 and $9.7 million, or $0.79 per diluted common share, for the three months ended June 30, 2023.

Selected financial results at or for the quarter ended June 30, 2024 compared to March 31, 2024 were as follows:

Chief Executive Officer Steven Larochelle commented, “We had a solid second quarter with strong net income and loan growth funded through core deposits. Higher deposit costs and the inverted yield curve continue to be a headwind, but net interest margin was stable at 3.19%. Our liquidity position was favorable at June 30, 2024 with the loan to deposit ratio at 89% and interest-earning deposits with banks exceeding wholesale funding by $89.6 million. Credit quality remained strong with nominal charge-offs year-to-date.”

Mr. Larochelle continued, “We remain committed to our long-term strategy of geographic expansion and customer acquisition through organic growth and investment in our team members, communities, products and technology. We are well positioned with a strong balance sheet, centered around a high-quality loan portfolio and favorable liquidity, core deposit funding and capital, paired with a conservative credit and reserve culture.”

Executive Chairman & Founder George Duncan stated, “I would like to thank Jack Clancy, who retired as Chief Executive Officer of the Company and the Bank on June 7, 2024, for his valuable contributions over the past 35 years. Steve Larochelle, who succeeded Jack as Chief Executive Officer, has been a key member of our leadership team for the past 27 years, including the last 15 years as our Chief Banking Officer. Steve has been a significant contributor to our success and has handled a wide range of leadership responsibilities including the areas of commercial lending, cash management, wealth management, mortgage services, and branch operations. Steve is a great champion of our culture and takes pride in strong relationships with our customers and communities. He is the perfect person for our Chief Executive Officer role, and I am excited to have him lead us forward.”

President Richard W. Main added, “I echo George’s comments on Steve’s leadership experience and on his commitment to our culture. We pride ourselves on understanding the unique needs of each customer and offering tailored solutions that lead to long-term relationships. The strength and depth of the relationships we have developed with our customers are a testament to our unwavering commitment to their success, which in turn has contributed to our history of consistent growth.”

Net Interest Income

Net interest income for the three months ended June 30, 2024, amounted to $36.2 million, a decrease of $1.9 million, or 5%, compared to the three months ended June 30, 2023. The decrease was due primarily to an increase in deposit interest expense of $9.5 million and a decrease in interest and dividend income on investments of $1.0 million, partially offset by an increase in loan interest income of $9.4 million. The increase in interest expense during the period was attributed primarily to an increase in the cost of funds and changes in deposit mix, while the increase in interest income during the period was due primarily to loan growth and higher market interest rates.

Net Interest Margin

Net interest margin was 3.19% for the three months ended June 30, 2024, compared to 3.20% for the three months ended March 31, 2024 and 3.55% for the three months ended June 30, 2023.

Asset yields for the second quarter of 2024 were 5.01% and increased 12 basis points compared to the first quarter of 2024, due primarily to new loan originations, loan repricing and an increase in the average balance of other interest-earning assets, which resulted mainly from deposit inflows during the period. Average total loans increased $100.3 million, or 3%, and average other interest-earning assets increased $37.8 million, or 44%, during the period.

The cost of funds for the second quarter of 2024 was 1.94% and increased 12 basis points compared to the first quarter of 2024. During the second quarter of 2024, average total deposits increased $129.2 million, or 3%, and the cost of deposits increased 13 basis points. The average balance of lower cost checking accounts increased $33.4 million, or 2%, and the average balance of higher cost savings, money market and certificate of deposit accounts increased $95.9 million, or 5%.

Provision for Credit Losses

The provision for credit losses for the three-month periods ended June 30, 2024 and June 30, 2023 are presented below:

    Three months ended   Increase / (Decrease)
(Dollars in thousands)   June 30,
2024
  June 30,
2023
Provision for credit losses on loans – collectively evaluated   $ (230 )   $ 2,210     $ (2,440 )
Provision for credit losses on loans – individually evaluated     1,358       (167 )     1,525  
Provision for credit losses for loans     1,128       2,043       (915 )
             
Provision for unfunded commitments     (991 )     225       (1,216 )
             
Provision for credit losses   $ 137     $ 2,268     $ (2,131 )
 

The decrease in the provision for credit losses on loans of $915 thousand was due primarily to the impact of a reduction in recession risk within our allowance for credit loss (“ACL”) model, partially offset by an increase in reserves on individually evaluated loans. The reduction in the provision for unfunded commitments of $1.2 million was driven primarily by a decrease in off-balance sheet commitments during the period.

Non-Interest Income

Non-interest income for the three months ended June 30, 2024, amounted to $5.6 million, an increase of $2.8 million compared to the three months ended June 30, 2023. Non-interest income in the prior year period included losses on sales of debt securities of $2.4 million. Excluding this item, non-interest income for the three months ended June 30, 2024 increased 7% compared to the three months ended June 30, 2023, due primarily to increases in wealth management fees and income on bank-owned life insurance.

Non-Interest Expense

Non-interest expense for the three months ended June 30, 2024, amounted to $29.0 million, an increase of $3.4 million, or 13%, compared to the three months ended June 30, 2023. Non-interest expense in the prior year period was impacted by the receipt of $3.4 million in Employee Retention Credits which the Company recognized as a reduction to salary and benefits expense. Excluding this item, non-interest expense for the three months ended June 30, 2024 decreased $25 thousand compared to the three months ended June 30, 2023.

Balance Sheet

Total assets amounted to $4.77 billion at June 30, 2024, compared to $4.47 billion at December 31, 2023, an increase of 7%.

Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to $151.4 million at June 30, 2024, compared to $19.1 million at December 31, 2023. The increase was due primarily to deposit inflows, partially offset by loan growth.

Total investment securities at fair value amounted to $636.8 million at June 30, 2024, compared to $668.2 million at December 31, 2023. The decrease of 5% was largely attributable to principal pay-downs, calls and maturities during the six months ended June 30, 2024. Unrealized losses on debt securities amounted to $106.2 million at June 30, 2024, compared to $102.9 million at December 31, 2023, an increase of 3%.

Total loans amounted to $3.77 billion at June 30, 2024, compared to $3.57 billion at December 31, 2023. The increase of 6% was due primarily to an increase in commercial real estate loans of $140.1 million.

Total deposits amounted to $4.25 billion at June 30, 2024, compared to $3.98 billion at December 31, 2023. The increase of 7% was due primarily to increases in money market and certificate of deposit balances of $101.6 million and $98.0 million, respectively.

Total borrowed funds amounted to $61.8 million at June 30, 2024, compared to $25.8 million at December 31, 2023. The increase resulted from new term advances used to support the Company’s operations.

Total shareholders’ equity amounted to $340.4 million at June 30, 2024, compared to $329.1 million at December 31, 2023. The increase of 3% was due primarily to an increase in retained earnings of $12.1 million, partially offset by an increase in the accumulated other comprehensive loss of $2.5 million.

Credit Quality

Selected credit quality metrics at June 30, 2024, compared to December 31, 2023, were as follows:

Net recoveries amounted to $130 thousand for the three months ended June 30, 2024, compared to net charge-offs of $146 thousand for the three months ended June 30, 2023.

Wealth Management

Wealth assets under management and administration, which are not carried as assets on the Company’s consolidated balance sheets, amounted to $1.40 billion at June 30, 2024, an increase of $76.6 million, or 6%, compared to December 31, 2023, and resulted primarily from an increase in market value.

About Enterprise Bancorp, Inc.

Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 139 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company’s headquarters and Enterprise Bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.

Forward-Looking Statements

This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the current inflationary pressures, or the resurgence of elevated levels of inflation, in our market areas and the United States; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

ENTERPRISE BANCORP, INC.
Consolidated Balance Sheets
(unaudited)
 
(Dollars in thousands, except per share data)   June 30,
2024
  December 31,
2023
  June 30,
2023
Assets            
Cash and cash equivalents:            
Cash and due from banks   $ 48,352     $ 37,443     $ 49,996  
Interest-earning deposits with banks     151,367       19,149       208,829  
Total cash and cash equivalents     199,719       56,592       258,825  
Investments:            
Debt securities at fair value (amortized cost of $734,523, $763,981 and $820,004, respectively)     628,314       661,113       706,953  
Equity securities at fair value     8,524       7,058       5,898  
Total investment securities at fair value     636,838       668,171       712,851  
Federal Home Loan Bank stock     2,482       2,402       2,404  
Loans held for sale           200        
Loans:            
Total loans     3,768,649       3,567,631       3,345,667  
Allowance for credit losses     (61,999 )     (58,995 )     (56,899 )
Net loans     3,706,650       3,508,636       3,288,768  
Premises and equipment, net     44,209       44,931       43,603  
Lease right-of-use asset     24,469       24,820       24,578  
Accrued interest receivable     20,343       19,233       16,885  
Deferred income taxes, net     48,619       49,166       48,875  
Bank-owned life insurance     66,381       65,455       64,779  
Prepaid income taxes     4,806       1,589       2,790  
Prepaid expenses and other assets     13,509       19,183       32,330  
Goodwill     5,656       5,656       5,656  
Total assets   $ 4,773,681     $ 4,466,034     $ 4,502,344  
Liabilities and ShareholdersEquity            
Liabilities            
Deposits   $ 4,248,801     $ 3,977,521     $ 4,075,598  
Borrowed funds     61,785       25,768       3,334  
Subordinated debt     59,657       59,498       59,340  
Lease liability     24,157       24,441       24,148  
Accrued expenses and other liabilities     30,546       45,011       29,161  
Accrued interest payable     8,294       4,678       3,273  
Total liabilities     4,433,240       4,136,917       4,194,854  
Commitments and Contingencies            
ShareholdersEquity            
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued                  
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,424,407, 12,272,674 and 12,244,733 shares issued and outstanding, respectively.     124       123       122  
Additional paid-in capital     109,137       107,377       105,552  
Retained earnings     313,486       301,380       289,409  
Accumulated other comprehensive loss     (82,306 )     (79,763 )     (87,593 )
Total shareholders’ equity     340,441       329,117       307,490  
Total liabilities and shareholders’ equity   $ 4,773,681     $ 4,466,034     $ 4,502,344  
ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited)
 
    Three months ended   Six months ended
(Dollars in thousands, except per share data)   June 30,
2024
  March 31,
2024
  June 30,
2023
  June 30,
2024
  June 30,
2023
Interest and dividend income:                    
Other interest-earning assets   $ 1,697     $ 1,172     $ 1,917     $ 2,869     $ 4,125  
Investment securities     3,943       4,034       4,967       7,977       10,040  
Loans and loans held for sale     51,224       48,817       41,798       100,041       81,354  
Total interest and dividend income     56,864       54,023       48,682       110,887       95,519  
Interest expense:                    
Deposits     19,172       17,272       9,692       36,444       15,679  
Borrowed funds     664       694       30       1,358       42  
Subordinated debt     867       867       867       1,734       1,734  
Total interest expense     20,703       18,833       10,589       39,536       17,455  
Net interest income     36,161       35,190       38,093       71,351       78,064  
Provision for credit losses     137       622       2,268       759       5,004  
Net interest income after provision for credit losses     36,024       34,568       35,825       70,592       73,060  
Non-interest income:                    
Wealth management fees     1,970       1,850       1,673       3,820       3,260  
Deposit and interchange fees     2,284       2,069       2,295       4,353       4,343  
Income on bank-owned life insurance, net     503       458       316       961       623  
Net losses on sales of debt securities                 (2,419 )           (2,419 )
Net gains on sales of loans     44       22       6       66       20  
Gains on equity securities     101       465       189       566       173  
Other income     726       631       759       1,357       1,576  
Total non-interest income     5,628       5,495       2,819       11,123       7,576  
Non-interest expense:                    
Salaries and employee benefits     19,675       19,176       16,135       38,851       34,656  
Occupancy and equipment expenses     2,406       2,459       2,505       4,865       5,006  
Technology and telecommunications expenses     2,658       2,745       2,636       5,403       5,311  
Advertising and public relations expenses     674       743       804       1,417       1,485  
Audit, legal and other professional fees     711       734       782       1,445       1,422  
Deposit insurance premiums     862       859       615       1,721       1,290  
Supplies and postage expenses     240       237       247       477       502  
Other operating expenses     1,803       1,955       1,899       3,758       3,991  
Total non-interest expense     29,029       28,908       25,623       57,937       53,663  
Income before income taxes     12,623       11,155       13,021       23,778       26,973  
Provision for income taxes     3,111       2,648       3,337       5,759       6,521  
Net income   $ 9,512     $ 8,507     $ 9,684     $ 18,019     $ 20,452  
                     
Basic earnings per common share   $ 0.77     $ 0.69     $ 0.79     $ 1.46     $ 1.68  
Diluted earnings per common share   $ 0.77     $ 0.69     $ 0.79     $ 1.46     $ 1.67  
                     
Basic weighted average common shares outstanding     12,389,917       12,292,417       12,228,081       12,341,630       12,191,857  
Diluted weighted average common shares outstanding     12,394,463       12,304,203       12,244,863       12,349,573       12,218,735  
ENTERPRISE BANCORP, INC.
Selected Consolidated Financial Data and Ratios
(unaudited)
 
    At or for the three months ended
(Dollars in thousands, except per share data)   June 30,
2024
  March 31,
2024
  December 31,
2023
  September 30,
2023
  June 30,
2023
Balance Sheet Data                    
Total cash and cash equivalents   $ 199,719     $ 147,834     $ 56,592     $ 225,421     $ 258,825  
Total investment securities at fair value     636,838       652,026       668,171       678,932       712,851  
Total loans     3,768,649       3,654,322       3,567,631       3,404,014       3,345,667  
Allowance for credit losses     (61,999 )     (60,741 )     (58,995 )     (57,905 )     (56,899 )
Total assets     4,773,681       4,624,015       4,466,034       4,482,374       4,502,344  
Total deposits     4,248,801       4,106,119       3,977,521       4,060,403       4,075,598  
Borrowed funds     61,785       63,246       25,768       4,290       3,334  
Subordinated debt     59,657       59,577       59,498       59,419       59,340  
Total shareholders’ equity     340,441       333,439       329,117       299,699       307,490  
Total liabilities and shareholders’ equity     4,773,681       4,624,015       4,466,034       4,482,374       4,502,344  
                     
Wealth Management                    
Wealth assets under management   $ 1,129,147     $ 1,105,036     $ 1,077,761     $ 984,647     $ 1,009,386  
Wealth assets under administration   $ 267,529     $ 268,074     $ 242,338     $ 211,046     $ 214,116  
                     
Shareholders’ Equity Ratios                    
Book value per common share   $ 27.40     $ 26.94     $ 26.82     $ 24.45     $ 25.11  
Dividends paid per common share   $ 0.24     $ 0.24     $ 0.23     $ 0.23     $ 0.23  
                     
Regulatory Capital Ratios                    
Total capital to risk weighted assets     13.07 %     13.20 %     13.12 %     13.45 %     13.37 %
Tier 1 capital to risk weighted assets(1)     10.34 %     10.43 %     10.34 %     10.61 %     10.52 %
Tier 1 capital to average assets     8.76 %     8.85 %     8.74 %     8.59 %     8.62 %
                     
Credit Quality Data                    
Non-performing loans   $ 17,731     $ 18,527     $ 11,414     $ 11,656     $ 7,647  
Non-performing loans to total loans     0.47 %     0.51 %     0.32 %     0.34 %     0.23 %
Non-performing assets to total assets     0.37 %     0.40 %     0.26 %     0.26 %     0.17 %
ACL for loans to total loans     1.65 %     1.66 %     1.65 %     1.70 %     1.70 %
Net (recoveries) charge-offs   $ (130 )   $ 122     $ 15     $ (12 )   $ 146  
                     
Income Statement Data                    
Net interest income   $ 36,161     $ 35,190     $ 36,518     $ 38,502     $ 38,093  
Provision for credit losses     137       622       2,493       1,752       2,268  
Total non-interest income     5,628       5,495       5,547       4,486       2,819  
Total non-interest expense     29,029       28,908       28,224       28,312       25,623  
Income before income taxes     12,623       11,155       11,348       12,924       13,021  
Provision for income taxes     3,111       2,648       3,441       3,225       3,337  
Net income   $ 9,512     $ 8,507     $ 7,907     $ 9,699     $ 9,684  
                     
Income Statement Ratios                    
Diluted earnings per common share   $ 0.77     $ 0.69     $ 0.64     $ 0.79     $ 0.79  
Return on average total assets     0.82 %     0.75 %     0.69 %     0.85 %     0.88 %
Return on average shareholders’ equity     11.55 %     10.47 %     10.21 %     12.53 %     12.63 %
Net interest margin (tax-equivalent)(2)     3.19 %     3.20 %     3.29 %     3.46 %     3.55 %
(1) Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.
(2) Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.
ENTERPRISE BANCORP, INC.
Consolidated Loan and Deposit Data
(unaudited)
 
Major classifications of loans at the dates indicated were as follows:
 
(Dollars in thousands)   June 30,
2024
  March 31,
2024
  December 31,
2023
  September 30,
2023
  June 30,
2023
Commercial real estate   $ 2,204,864     $ 2,159,594     $ 2,064,737     $ 2,032,458     $ 2,009,263  
Commercial and industrial     426,976       417,604       430,749       425,334       420,095  
Commercial construction     622,094       583,711       585,113       501,179       487,018  
Total commercial loans     3,253,934       3,160,909       3,080,599       2,958,971       2,916,376  
                     
Residential mortgages     413,323       400,093       393,142       362,514       346,523  
Home equity loans and lines     93,220       85,144       85,375       74,433       74,374  
Consumer     8,172       8,176       8,515       8,096       8,394  
Total retail loans     514,715       493,413       487,032       445,043       429,291  
Total loans     3,768,649       3,654,322       3,567,631       3,404,014       3,345,667  
                     
ACL for loans     (61,999 )     (60,741 )     (58,995 )     (57,905 )     (56,899 )
Net loans   $ 3,706,650     $ 3,593,581     $ 3,508,636     $ 3,346,109     $ 3,288,768  

Deposits are summarized as follows as of the periods indicated:

(Dollars in thousands)   June 30,
2024
  March 31,
2024
  December 31,
2023
  September 30,
2023
  June 30,
2023
Non-interest checking   $ 1,050,876     $ 1,050,608     $ 1,070,104     $ 1,130,732     $ 1,273,968  
Interest-bearing checking     788,822       730,819       697,632       727,817       701,701  
Savings     285,461       273,369       285,770       290,363       310,321  
Money market     1,504,551       1,469,181       1,402,939       1,434,036       1,373,816  
CDs $250,000 or less     358,149       337,367       295,789       262,975       244,114  
CDs greater than $250,000     260,942       244,775       225,287       214,480       171,678  
Deposits   $ 4,248,801     $ 4,106,119     $ 3,977,521     $ 4,060,403     $ 4,075,598  
ENTERPRISE BANCORP, INC.
Consolidated Average Balance Sheets and Yields (tax-equivalent basis)
(unaudited)
 
The following table presents the Company’s average balance sheets, net interest income and average rates for the periods indicated:
 
    Three months ended June 30, 2024   Three Months Ended March 31, 2024   Three months ended June 30, 2023
(Dollars in thousands)   Average
Balance
  Interest(1)   Average
Yield(1)
  Average
Balance
  Interest(1)   Average
Yield(1)
  Average
Balance
  Interest(1)   Average
Yield(1)
Assets:                                    
Other interest-earning assets(2)   $ 123,887     $ 1,697       5.51 %   $ 86,078     $ 1,172       5.48 %   $ 155,934     $ 1,917       4.93 %
Investment securities(3)(tax-equivalent)     750,822       4,057       2.16 %     763,692       4,157       2.18 %     917,965       5,189       2.26 %
Loans and loans held for sale(4)(tax-equivalent)     3,708,485       51,366       5.57 %     3,608,157       48,960       5.46 %     3,268,586       41,930       5.14 %
Total interest-earnings assets (tax-equivalent)     4,583,194       57,120       5.01 %     4,457,927       54,289       4.89 %     4,342,485       49,036       4.53 %
Other assets     96,991               91,794               92,909          
Total assets   $ 4,680,185             $ 4,549,721             $ 4,435,394          
                                     
Liabilities and stockholders’ equity:                                    
Non-interest checking   $ 1,054,932               $ 1,069,145               $ 1,269,339            
Interest checking, savings and money market     2,510,155       12,381       1.98 %     2,418,947       11,356       1.89 %     2,351,011       6,880       1.17 %
CDs     601,339       6,791       4.54 %     549,097       5,916       4.33 %     393,387       2,812       2.87 %
Total deposits     4,166,426       19,172       1.85 %     4,037,189       17,272       1.72 %     4,013,737       9,692       0.97 %
Borrowed funds     62,513       664       4.27 %     63,627       694       4.38 %     4,595       30       2.58 %
Subordinated debt(5)     59,609       867       5.82 %     59,530       867       5.82 %     59,293       867       5.85 %
Total funding liabilities     4,288,548       20,703       1.94 %     4,160,346       18,833       1.82 %     4,077,625       10,589       1.04 %
Other liabilities     60,270               62,500               50,113          
Total liabilities     4,348,818               4,222,846               4,127,738          
Stockholders’ equity     331,367               326,875               307,656          
Total liabilities and stockholders’ equity   $ 4,680,185             $ 4,549,721             $ 4,435,394          
                                     
Net interest-rate spread (tax-equivalent)             3.07 %             3.07 %             3.49 %
Net interest income (tax-equivalent)         36,417               35,456               38,447      
Net interest margin (tax-equivalent)             3.19 %             3.20 %             3.55 %
Less tax-equivalent adjustment         256               266               354      
Net interest income       $ 36,161             $ 35,190             $ 38,093      
Net interest margin             3.17 %             3.17 %             3.52 %
(1) Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
(2) Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock.
(3) Average investment securities are presented at average amortized cost.
(4) Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans.
(5) Subordinated debt is net of average deferred debt issuance costs.

Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578


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