Actionable news
0
All posts from Actionable news
Actionable news in EBTC: Enterprise Bancorp Inc,

Enterprise Bancorp, Inc. Announces Quarter

The following excerpt is from the company's SEC filing.

Net Income of

$4.3 Million

Increase Over the Prior Year

LOWELL, Mass.,

(GLOBE NEWSWIRE) - Enterprise Bancorp, Inc. (the “Company”) (NASDAQ: EBTC), parent of Enterprise Bank, announces net income for the

three months ended

March 31, 2016

amounted to

$4.3 million

, an increase of

$693 thousand

, compared to the

March 31, 2015

. Diluted earnings per share was

As previously announced on

April 19, 2016

, the Company declared a quarterly dividend of

per share to be paid on

June 1, 2016

to shareholders of record as of

May 11, 2016

. The

dividend rate represents a

increase over the

dividend rate.

Chief Executive Officer Jack Clancy commented, “The increase in our

quarter earnings compared to

is largely driven by our growth over the last twelve months. Loans and deposits, excluding brokered deposits, have increased

$183 million

, and

$253 million

, respectively, as compared to

. This growth continues to be driven by the collective efforts and contributions of our dedicated Enterprise team, active community involvement, relationship building and a customer-focused mindset, market expansion, and ongoing enhancements to our state-of-the-art product and service offerings. Additionally, as part of our continued organic growth, our 23rd branch, on route 101A, in Nashua, NH is scheduled to open in the second quarter of 2016.”

Mr. Clancy continued, “Strategically, our focus remains on organic growth and continually planning for and investing in our future. As part of our focus on long-term strategic growth, we recently announced a shareholder rights offering combined with a community offering. This additional capital will help ensure that we are positioned to continue to take advantage of growth opportunities.”

Founder and Chairman of the Board George Duncan commented, “Our March quarter represents our

consecutive profitable quarter. While we are proud of our continued growth and profitability, the true value of that growth is reflected in what it means for our customers and shareholders. Along with strong customer service, the growth of our lending and deposit base ties directly to our ever advancing and progressive commercial lending, cash management, mobile banking, wealth management, trust, insurance and overall state-of-the-art services.”

Mr. Duncan also noted, “Our planned shareholder rights offering provides each stockholder with the equitable opportunity to retain their ownership percentage, and combined with the community offering, positions us for future growth. We believe the rights and community offering is the best way for us to support our customers and communities, expand our local shareholder base and ultimately benefit our shareholders.”

Results of Operations

The Company’s growth contributed to increases in net interest income and non-interest expenses. This growth and other items impacting the Company’s net income are discussed further below.

Net interest income for the

$21.1 million

$2.6 million

. The increase in net interest income was due primarily to loan growth. Average loan balances (including loans held for sale) increased

$181.0 million

compared to the same

period average. Net interest margin was

December 31, 2015

, respectively.

For the

, the provision for loan losses amounted to

$850 thousand

$625 thousand

, respectively. The increase in the provision for the

was due primarily to additional reserves allocated to classified commercial loans.

In determining the provision to the allowance for loan losses, management takes into consideration the level of loan growth and an estimate of credit risk, which includes such items as adversely classified and non-performing loans, the estimated specific reserves needed for impaired loans, the level of net charge-offs, and the estimated impact of current economic conditions on credit quality. Loan growth for the

$4.7 million

$9.5 million

during the

. Total non-performing loans as a percentage of total loans declined to

. The balance of the allowance for loan losses allocated to impaired loans amounted to

$2.1 million

$2.7 million

. The balance of the allowance for loan losses allocated to non-impaired classified loans amounted to

$2.2 million

$1.6 million

. The Company recorded net recoveries of

$52 thousand

$57 thousand

The allowance for loan losses to total loans ratio was

. The decline in the allowance ratio reflects the generally improving credit quality of the loan portfolio, in part, due to improved economic conditions. However, in the current period, the credit ratings of three larger commercial relationships were downgraded, based on a review of their individual business circumstances, requiring higher levels of reserves in the current period which increased the allowance to total loan ratio compared to

Non-interest income for the

$3.2 million

, a decrease of

$819 thousand

due primarily to a decrease in net gains on the sales of investment securities. Included in other income for the

was the net loss on the Company’s Capital Trust subsidiary due to the write-off of debt issuance costs related to the redemption of Trust Preferred Securities (Subordinated Debt), partially offset by g

ns on the sales of other real estate owned.

, non-interest expense amounted to

$16.9 million

$659 thousand

, over the

. Increases in expenses over the prior year primarily related to increases in salaries and benefits due to the Company’s strategic growth and market expansion initiatives. Non-interest expense for

was also impacted by prepayment fees associated with the redemption of the Trust Preferred Securities mentioned above, included in other expenses.

Key Financial Highlights

Total assets amounted to

$2.30 billion

$2.29 billion

$19.1 million

Total loans amounted to

$1.86 billion

at both

Total deposits, excluding brokered deposits, were

$2.00 billion

$1.91 billion

$87.1 million

. Brokered deposits were

$89.3 million

$106.8 million

Investment assets under management amounted to

$688.3 million

$678.4 million

$9.9 million

Total assets under management amounted to

$3.06 billion

$3.04 billion

$29.0 million

Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all of its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank. The Company 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 and consumer loan products, and deposit and cash management services. The Company also offers investment advisory and wealth management, trust, and insurance services. The Company’s headquarters and the bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the greater

Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. Enterprise Bank has

full-service branch offices located in the Massachusetts communities of Lowell, Acton, Andover, Billerica, Chelmsford, Dracut, Fitchburg, Lawrence, Leominster, Methuen, Tewksbury, Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Nashua, Pelham and Salem. The Company has also obtained the necessary regulatory approvals to establish its second branch in Nashua, NH and anticipates that the office will open in the second quarter of 2016.

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 reference to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “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 or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to, general economic conditions, changes in interest rates, regulatory considerations, competition, and the receipt of required regulatory approvals. For more information about these factors, please see our reports filed with or furnished to the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K 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 press 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)

Assets

Cash and cash equivalents:

Cash and due from banks

34,018

32,318

55,314

Interest-earning deposits

24,912

19,177

35,846

Total cash and cash equivalents

58,930

51,495

91,160

Investment securities at fair value

304,946

300,358

240,068

Federal Home Loan Bank stock

Loans held for sale

Loans, less allowance for loan losses of $29,910 at March 31, 2016, $29,008 at December 31, 2015 and $27,803 at March 31, 2015

1,834,782

1,830,954

1,654,317

Premises and equipment, net

31,984

30,553

30,070

Accrued interest receivable

Deferred income taxes, net

12,962

14,111

12,368

Bank-owned life insurance

28,209

28,018

16,415

Prepaid income taxes

Prepaid expenses and other assets

15,207

11,780

Goodwill

2,304,632

2,285,531

2,068,730

Liabilities and Stockholders’ Equity

Deposits

2,087,737

2,018,148

1,865,294

Borrowed funds

53,671

Subordinated debt

14,825

14,822

14,810

Accrued expenses and other liabilities

13,497

18,287

15,322

Income taxes payable

Accrued interest payable

Total liabilities

2,118,547

2,105,204

1,897,242

Commitments and Contingencies

Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued

Common stock $0.01 par value per share; 20,000,000 shares authorized; 10,473,738 shares issued and outstanding at March 31, 2016 (including 155,421 shares of unvested participating restricted awards), 10,377,787 shares issued and outstanding at December 31, 2015 (including 144,717 shares of unvested participating restricted awards) and 10,323,539 shares issued and outstanding at March 31, 2015 (including 148,490 shares of unvested participating restricted awards)

Additional paid-in capital

61,927

61,008

58,529

Retained earnings

119,904

116,941

108,292

Accumulated other comprehensive income

Total stockholders’ equity

186,085

180,327

171,488

Total liabilities and stockholders’ equity

Consolidated Statements of Income

Three months ended March 31,

(Dollars in thousands, except per share data)

Interest and dividend income:

Loans and loans held for sale

20,881

18,582

Other interest-earning assets

Total interest and dividend income

22,465

19,839

Interest expense:

Total interest expense

21,083

18,454

Provision for loan losses

Net interest income after provision for loan losses

20,233

17,829

Non-interest income:

Investment advisory fees

Deposit and interchange fees

Income on bank-owned life insurance, net

Net gains on sales of investment securities

Gains on sales of loans

Other income

Total non-interest income

Non-interest expense:

Salaries and employee benefits

10,485

Occupancy and equipment expenses

Technology and telecommunications expenses

Advertising and public relations expenses

Audit, legal and other professional fees

Deposit insurance premiums

Supplies and postage expenses

Investment advisory and custodial expenses

Other operating expenses

Total non-interest expense

16,869

16,210

Income before income taxes

Provision for income taxes

Net income

Basic earnings per share

Basic weighted average common shares outstanding

10,405,112

10,243,044

Diluted weighted average common shares outstanding

10,471,784

10,310,474

Selected Consolidated Financial Data and Ratios

(Dollars in thousands, except per share data)

At or for the

year ended

three months ended March 31, 2015

BALANCE SHEET AND OTHER DATA

Loans serviced for others

71,294

71,272

65,553

688,294

678,377

707,789

3,064,220

3,035,180

2,842,072

Book value per share

Dividends paid per common share

Total capital to risk weighted assets

Tier 1 capital to risk weighted assets

Tier 1 capital to average assets

Common equity tier 1 capital to risk weighted assets

Allowance for loan losses to total loans

Non-performing assets

11,264

13,845

18,149

Non-performing assets to total assets

INCOME STATEMENT DATA (annualized)

Return on average total assets

Return on average stockholders’ equity

Net interest margin (tax equivalent)

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever Enterprise Bancorp Inc makes a similar move, sign up!

Other recent filings from the company include the following:

Enterprise Bancorp: Other Events - April 21, 2016
Prospectus [Rule 424(b)(5)] - April 21, 2016
Enterprise Bancorp Inc's EVP-Principal Subsidiary just declared owning 4,544 shares of Enterprise Bancorp Inc - April 21, 2016
Enterprise Bancorp, Inc. Announces Quarterly Dividend LOWELL, Mass., - April 19, 2016