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Enterprise Bancorp, Inc. Announces Second Quarter Financial Results

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Enterprise Bancorp Inc
Enterprise Bancorp Inc

LOWELL, Mass., July 21, 2022 (GLOBE NEWSWIRE) -- Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced net income for the three months ended June 30, 2022, of $8.2 million, or $0.67 per diluted common share, compared to $11.1 million, or $0.92 per diluted common share, for the three months ended June 30, 2021.

As previously announced on July 19, 2022, the Company declared a quarterly dividend of $0.205 per common share to be paid on September 1, 2022, to shareholders of record as of August 11, 2022.

Chief Executive Officer Jack Clancy commented, "Our second quarter 2022 operating results were very positive, highlighted by strong loan growth, a significant improvement in our non-performing loan ratio, and strong growth in pre-tax earnings after excluding the provision for credit losses and PPP income. As of June 30, 2022, total loans, excluding PPP loans, increased 16% versus a year ago. Loan growth was especially strong in the second quarter with an increase of 5% (19% annualized) at June 30, 2022, compared to March 31, 2022, resulting from high customer demand and strong business development efforts. The non-performing loan to total loan ratio, excluding PPP loans, decreased to 0.21% at June 30, 2022 from 0.86% at March 31, 2022 and 1.21% at June 30, 2021. The improvement in the second quarter of 2022 resulted primarily from two credits being returned to accrual status due to improved financial strength and consistent payment history. The relatively high provision for credit losses of $2.4 million for the second quarter of 2022 compared to $39 thousand in the second quarter of 2021 was attributable mainly to loan growth, and to a lesser extent, the worsening of forecasted economic conditions due to the rising interest rate environment and persistent high inflation levels, partially offset by improved credit quality. PPP income was $622 thousand in the quarter compared to $5.6 million in the prior year period. Our pre-tax income excluding the provision for credit losses and PPP income increased by 34% compared to the second quarter of 2021."

Executive Chairman & Founder George Duncan commented, "Other significant items during the second quarter of 2022 were the dividend declaration of $0.205 per share on July 19th, an increase of 11% over the prior year period, and the opening of our Londonderry, New Hampshire branch in May. The new branch is in a highly visible location and reflects our strategy of contiguous organic expansion into strong commercial markets. Mr. Duncan continued, "Our operating strategy also includes ongoing investment in our team members, a deep commitment to our communities and continuous strengthening of our digital security and capabilities, with the latter allowing us to enhance existing customer relationships, expand beyond our physical locations and improve operating efficiency."

Net Income

Net income for the three months ended June 30, 2022, amounted to $8.2 million, a decrease of $3.0 million, or 27%, compared to the prior year period. Pre-tax income for three months ended June 30, 2022, decreased by $4.2 million, or 28%, compared to the prior year period. For the three months ended June 30, 2022, the effective tax rate was 23.7%, compared to 25.0% for the three months ended June 30, 2021.

  • The decrease in pre-tax income was attributable primarily to increases in the provision for credit losses of $2.4 million and non-interest expense of $1.7 million, partially offset by an increase in net interest income of $535 thousand.

  • Tax expense for the three months ended June 30, 2022, benefited from a lower effective tax rate compared to the prior year period due to increases in tax-exempt and lower-taxed income at the Bank's security corporation subsidiaries.

Net Interest Income

Net interest income for the three months ended June 30, 2022, amounted to $35.8 million, an increase of $535 thousand, or 2%, compared to the three months ended June 30, 2021.

  • The increase in net interest income was due largely to increases in loan income, excluding Paycheck Protections Program ("PPP") income (non-GAAP), of $3.5 million and investment security income of $1.4 million, and a decrease in deposit interest expense of $439 thousand, partially offset by a decrease in PPP income of $5.0 million.

  • PPP income amounted to $622 thousand for three months ended June 30, 2022, compared to $5.6 million for the three months ended June 30, 2021. PPP loans outstanding amounted to $15.3 million at June 30, 2022, compared to $300.1 million at June 30, 2021, due to the continued forgiveness of PPP loans by the Small Business Administration (the "SBA") during the period.

Net Interest Margin

Tax equivalent net interest margin ("net interest margin" or "margin") was 3.45% for each of the three-month periods ended June 30, 2022 and June 30, 2021, respectively.

Key items impacting margin for the three months ended June 30, 2022, compared to the prior year period included:

  • Average interest-earning deposits with banks decreased $292.8 million while the yield increased 61 basis points. The decrease in average balance resulted primarily from the funding of growth in the Company's investment and core loan portfolios, partially offset by funds received from the forgiveness of PPP loans by the SBA. The increase in yield reflected higher market interest rates during the current period.

  • Average investment securities increased $379.1 million, or 64%, while the tax-equivalent yield decreased 41 basis points. The increase in average balance resulted from investment security purchases in the second half of 2021 when market interest rates were lower than the current period.

  • Average loans decreased $30.2 million, or 1%, and the yield decreased 16 basis points.

    • Average PPP loans outstanding decreased $387.9 million, or 94%.

    • Average core loans (non-GAAP) increased $357.7 million, or 14%, while the yield decreased 5 basis points.

  • Average total deposits increased $58.2 million, or 2%, while the yield decreased 5 basis points.

  • Adjusted net interest margin (non-GAAP), amounted to 3.55% and 3.71%, respectively.

  • Adjusted net interest margin (non-GAAP) for the three months ended March 31, 2022, as disclosed in the prior quarter earnings release, amounted to 3.47%.

Provision for Credit Losses

The provision for credit losses for the three months ended June 30, 2022, amounted to $2.4 million, compared to $39 thousand for the three months ended June 30, 2021.

  • The provision for the three months ended June 30, 2022, consisted of $2.2 million for loans outstanding and $214 thousand for reserves on unfunded commitments (included in other liabilities).

  • Most of the provision during the period related to the Company's strong loan growth during the second quarter of 2022, and to a lesser extent, a deterioration in the economic forecast, offset by improved credit quality.

Non-Interest Income

Non-interest income for the three months ended June 30, 2022, amounted to $4.1 million, a decrease of $620 thousand, or 13%, compared to the three months ended June 30, 2021.

  • The decrease in non-interest income over the respective periods resulted primarily from a decrease in gains on sales of loans of $490 thousand and a decline in equity investment fair values of $493 thousand (included in other income), partially offset by an increase in deposit and interchange fees of $349 thousand.

Non-Interest Expense
Non-interest expense for the three months ended June 30, 2022, amounted to $26.9 million, an increase of $1.7 million, or 7%, compared to the three months June 30, 2021.

  • The increase in non-interest expense over the respective periods resulted primarily from an increase in salaries and employee benefits of $1.3 million, or 8%. The increase in salaries and employee benefit expense included an increase of $596 thousand in performance-based accruals. Excluding this, the increases in non-interest expense and salaries and benefits expense amounted to $1.1 million, or 5% and $715 thousand, or 5% respectively, compared to the prior year period.

Credit Quality

The allowance for credit losses ("ACL") for loans amounted to $50.7 million, or 1.64% of total loans, at June 30, 2022, compared to $47.7 million, or 1.63% of total loans, at December 31, 2021. The ACL to total core loans ratio (non-GAAP) was 1.65% at June 30, 2022 compared to 1.67% at December 31, 2021. The reserve for unfunded commitments (included in other liabilities) amounted to $3.6 million at June 30, 2022, compared to $3.7 million at December 31, 2021. The Company continues to closely monitor credit quality as concerns regarding forecasted economic conditions worsen due to the rising interest rate environment and persistent high inflation levels.

Charge-offs and recoveries for the three months ended June 30, 2022, and June 30, 2021 were not significant.

Non-performing assets amounted to $6.3 million, or 0.14% of total assets, at June 30, 2022, compared to $26.6 million, or 0.60% of total assets, at December 31, 2021. The decrease in non-performing assets was due primarily to two commercial relationships, amounting to $17.9 million, which were upgraded and restored to accrual status during the second quarter of 2022, due to improved financial strength and consistent payment history.

Balance Sheet

Total assets amounted to $4.42 billion at June 30, 2022, compared to $4.45 billion at December 31, 2021, a decrease of $30.4 million, or 1%.

Total interest-earning deposits with banks amounted to $250.3 million at June 30, 2022, compared to $403.0 million at December 31, 2021, a decrease of $152.7 million, or 38%. The change in liquidity was related primarily to core loan growth (non-GAAP) during the six months ended June 30, 2022.

Total investment securities at fair value amounted to $866.6 million at June 30, 2022, compared to $958.2 million at December 31, 2021, a decrease of $91.6 million, or 10%. The change resulted primarily from a decrease in the fair value of debt securities held in the Company's securities portfolio of $99.4 million during the period, resulting from significant increases in market interest rates during the first half of 2022.

Total loans amounted to $3.08 billion at June 30, 2022, compared to $2.92 billion at December 31, 2021, an increase of $164.2 million, or 6%. Core loans (non-GAAP) increased $220.4 million, or 8%, over the respective period, driven primarily by high customer demand and strong business development efforts. Included in the loan growth for the period was $50.2 million in retained residential mortgages.

Customer deposits amounted to $4.02 billion at June 30, 2022, compared to $3.98 billion at December 31, 2021, an increase of $36.6 million, or 1%.

Shareholders' Equity & Regulatory Capital

Total shareholders' equity amounted to $285.1 million at June 30, 2022, compared to $346.9 million at December 31, 2021, a decrease of $61.8 million, or 18%. The change was attributable primarily to a decrease in accumulated other comprehensive income ("AOCI") of $77.0 million since December 31, 2021, partially offset by an increase in retained earnings of $13.5 million over the same period. The change in AOCI resulted from a decrease in the fair value of debt securities held in the Company's securities portfolio, which is attributed to the significant increase in market interest rates during the period. The Company classifies all of its debt securities held in the Company's securities portfolio as available-for-sale and anticipates they will mature or be called at par value.

The Company's reported book value per common share and return on average shareholders' equity ratios were impacted by the change in AOCI as follows:

  • Book value per common share was $23.53 at June 30, 2022, compared to $28.82 at December 31, 2021, a decrease of 18%. Excluding AOCI (non-GAAP), book value per common share was $29.51 at June 30, 2022 and $28.43 at December 31, 2021, an increase of 4%.

  • Return on average shareholders' equity was 11.24% and 12.56% for the quarters June 30, 2022, and December 31, 2021, respectively. Return on average shareholders' equity, excluding AOCI (non-GAAP), was 9.09% and 12.69% for the quarters ended June 30, 2022, and December 31, 2021, respectively.

Total Capital and Tier 1 Capital to risk weighted assets, of which AOCI is not of component, amounted to 13.38% and 10.38%, respectively, at June 30, 2022 compared to 13.73% and 10.62%, respectively, at December 31, 2021. The decrease in each ratio was due primarily to strong loan growth over the respective period.

Tier 1 Capital to average assets, of which AOCI is not a component, amounted to 8.04% at June 30, 2022, compared to 7.56% at December 31, 2021. The increase was driven primarily by the increase in retained earnings noted above and to a lesser extent a reduction in average assets.

Wealth Management

Wealth assets under management and wealth assets under administration, which are not carried as assets on the Company's consolidated balance sheets, amounted to $849.5 million and $205.6 million, at June 30, 2022, respectively, representing decreases of $191.9 million, or 18%, and $52.2 million, or 20%, respectively, compared to December 31, 2021. The decreases in wealth assets under management and wealth assets under administration were attributable primarily to declines in market values during the six months ended June 30, 2022.

Non-GAAP Measures

Throughout this press release, certain measures have been adjusted to provide what management believes are more meaningful comparisons between periods. The items principally impacted and reported as non-GAAP were loans (PPP loans), liquidity (interest-earning deposits with banks), shareholders' equity (AOCI), and any related measures presented. We refer to any measure that excludes PPP loans as "core" and any measure that excludes PPP loans and interest-earning deposits with banks as "adjusted." The activity which resulted in the Company's use of non-GAAP measures consisted of: (1) the Company originated over $715 million in short-term PPP loans between April 2020 and May 2021; (2) forgiveness of PPP loans by the SBA began in November 2020 and continued through the current period, and approximately 98% of the principal balance of PPP loans originated by the Company has been forgiven by the SBA through June 30, 2022; (3) liquidity, carried as lower-yielding interest-earning deposits with banks, had increased significantly following the trends in customer deposits and PPP loan forgiveness over the past two years; and (4) the significant increase in market interest rates during the first half of 2022 has resulted in unrealized losses in the Company's available-for-sale debt securities portfolio of $93.5 million and an accumulated other comprehensive loss, included in shareholder's equity, of $72.4 million at June 30, 2022. The tables beginning on page 12 of this press release provide a reconciliation of the non-GAAP measures to the information presented under U.S. generally accepted accounting principles ("GAAP").

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 131 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, and commercial insurance services, 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," "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, general economic conditions, the impact of the ongoing COVID-19 pandemic and any current or future variants thereof, changes in market interest rates, the persistence of the inflationary environment in the United States and our market areas, regulatory considerations, competition and market expansion opportunities, changes in non-interest expenditures or in the anticipated benefits of such expenditures, the receipt of required regulatory approvals, changes in tax laws, and current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic and any current or future variants thereof. 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,
2022

 

December 31,
2021

 

June 30,
2021

Assets

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

Cash and due from banks

 

$

56,201

 

 

$

33,572

 

 

$

48,335

 

Interest-earning deposits with banks

 

 

250,259

 

 

 

403,004

 

 

 

690,909

 

Total cash and cash equivalents

 

 

306,460

 

 

 

436,576

 

 

 

739,244

 

Investments:

 

 

 

 

 

 

Debt securities at fair value (amortized cost of $956,934, $950,523, and $611,827 respectively)

 

 

863,401

 

 

 

956,430

 

 

 

632,759

 

Equity securities at fair value

 

 

3,179

 

 

 

1,785

 

 

 

1,265

 

Total investment securities at fair value

 

 

866,580

 

 

 

958,215

 

 

 

634,024

 

Federal Home Loan Bank ("FHLB") stock

 

 

2,343

 

 

 

2,164

 

 

 

2,164

 

Loans held for sale

 

 

 

 

 

 

 

 

1,304

 

Loans:

 

 

 

 

 

 

Total loans

 

 

3,084,915

 

 

 

2,920,684

 

 

 

2,954,189

 

Allowance for credit losses

 

 

(50,703

)

 

 

(47,704

)

 

 

(50,041

)

Net loans

 

 

3,034,212

 

 

 

2,872,980

 

 

 

2,904,148

 

Premises and equipment, net

 

 

44,769

 

 

 

44,689

 

 

 

45,046

 

Lease right-of-use asset

 

 

24,738

 

 

 

24,295

 

 

 

20,550

 

Accrued interest receivable

 

 

14,260

 

 

 

13,354

 

 

 

14,042

 

Deferred income taxes, net

 

 

43,858

 

 

 

19,644

 

 

 

15,402

 

Bank-owned life insurance

 

 

63,544

 

 

 

62,954

 

 

 

31,631

 

Prepaid income taxes

 

 

2,003

 

 

 

279

 

 

 

1,716

 

Prepaid expenses and other assets

 

 

9,024

 

 

 

7,013

 

 

 

13,074

 

Goodwill

 

 

5,656

 

 

 

5,656

 

 

 

5,656

 

Total assets

 

$

4,417,447

 

 

$

4,447,819

 

 

$

4,428,001

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Customer deposits

 

$

4,016,814

 

 

$

3,980,239

 

 

$

3,889,619

 

Brokered deposits

 

 

 

 

 

 

 

 

75,014

 

Total deposits

 

 

4,016,814

 

 

 

3,980,239

 

 

 

3,964,633

 

Borrowed funds

 

 

2,954

 

 

 

5,479

 

 

 

8,620

 

Subordinated debt

 

 

59,039

 

 

 

58,979

 

 

 

58,919

 

Lease liability

 

 

24,156

 

 

 

23,627

 

 

 

19,726

 

Accrued expenses and other liabilities

 

 

27,829

 

 

 

31,063

 

 

 

35,086

 

Accrued interest payable

 

 

1,545

 

 

 

1,537

 

 

 

1,700

 

Total liabilities

 

 

4,132,337

 

 

 

4,100,924

 

 

 

4,088,684

 

Commitments and Contingencies

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

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; 12,115,924, 12,038,382, and 12,014,933 shares issued and outstanding, respectively

 

 

121

 

 

 

120

 

 

 

120

 

Additional paid-in capital

 

 

102,108

 

 

 

100,352

 

 

 

98,708

 

Retained earnings

 

 

255,259

 

 

 

241,761

 

 

 

225,529

 

Accumulated other comprehensive (loss) income

 

 

(72,378

)

 

 

4,662

 

 

 

14,960

 

Total shareholders' equity

 

 

285,110

 

 

 

346,895

 

 

 

339,317

 

Total liabilities and shareholders' equity

 

$

4,417,447

 

 

$

4,447,819

 

 

$

4,428,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 


ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited)

 

 

Three months ended

 

Six months ended

 

 

June 30,

 

June 30,

(Dollars in thousands, except per share data)

 

2022

 

2021

 

2022

 

2021

Interest and dividend income:

 

 

 

 

 

 

 

 

Loans and loans held for sale

 

$

32,148

 

$

33,660

 

$

62,843

 

$

67,310

Investment securities

 

 

4,781

 

 

3,428

 

 

9,369

 

 

6,822

Other interest-earning assets

 

 

393

 

 

144

 

 

574

 

 

209

Total interest and dividend income

 

 

37,322

 

 

37,232

 

 

72,786

 

 

74,341

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

671

 

 

1,110

 

 

1,271

 

 

2,433

Borrowed funds

 

 

13

 

 

18

 

 

26

 

 

26

Subordinated debt

 

 

817

 

 

818

 

 

1,635

 

 

1,860

Total interest expense

 

 

1,501

 

 

1,946

 

 

2,932

 

 

4,319

Net interest income

 

 

35,821

 

 

35,286

 

 

69,854

 

 

70,022

Provision for credit losses

 

 

2,409

 

 

39

 

 

2,939

 

 

719

Net interest income after provision for credit losses

 

 

33,412

 

 

35,247

 

 

66,915

 

 

69,303

Non-interest income:

 

 

 

 

 

 

 

 

Wealth management fees

 

 

1,610

 

 

1,638

 

 

3,339

 

 

3,250

Deposit and interchange fees

 

 

2,000

 

 

1,651

 

 

3,802

 

 

3,257

Income on bank-owned life insurance, net

 

 

295

 

 

132

 

 

590

 

 

268

Net gains on sales of debt securities

 

 

 

 

 

 

1,062

 

 

128

Net gains on sales of loans

 

 

 

 

490

 

 

22

 

 

618

Other income

 

 

227

 

 

841

 

 

912

 

 

1,530

Total non-interest income

 

 

4,132

 

 

4,752

 

 

9,727

 

 

9,051

Non-interest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

17,743

 

 

16,432

 

 

34,535

 

 

32,153

Occupancy and equipment expenses

 

 

2,364

 

 

2,416

 

 

4,779

 

 

4,797

Technology and telecommunications expenses

 

 

2,919

 

 

2,740

 

 

5,555

 

 

5,294

Advertising and public relations expenses

 

 

560

 

 

653

 

 

1,227

 

 

1,167

Audit, legal and other professional fees

 

 

675

 

 

577

 

 

1,385

 

 

1,144

Deposit insurance premiums

 

 

366

 

 

378

 

 

922

 

 

734

Supplies and postage expenses

 

 

224

 

 

178

 

 

444

 

 

405

Loss on extinguishment of subordinated debt

 

 

 

 

 

 

 

 

713

Other operating expenses

 

 

2,002

 

 

1,782

 

 

3,763

 

 

3,433

Total non-interest expense

 

 

26,853

 

 

25,156

 

 

52,610

 

 

49,840

Income before income taxes

 

 

10,691

 

 

14,843

 

 

24,032

 

 

28,514

Provision for income taxes

 

 

2,530

 

 

3,704

 

 

5,584

 

 

7,023

Net income

 

$

8,161

 

$

11,139

 

$

18,448

 

$

21,491

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.67

 

$

0.93

 

$

1.53

 

$

1.79

Diluted earnings per common share

 

$

0.67

 

$

0.92

 

$

1.52

 

$

1.79

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

 

12,107,804

 

 

12,009,358

 

 

12,082,041

 

 

11,984,283

Diluted weighted average common shares outstanding

 

 

12,151,712

 

 

12,055,744

 

 

12,136,610

 

 

12,025,028

 

 

 

 

 

 

 

 

 

 

 

 

 


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,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

 

June 30,
2021

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

306,460

 

 

$

429,687

 

 

$

436,576

 

 

$

644,377

 

 

$

739,244

 

Total investment securities at fair value

 

 

866,580

 

 

 

910,013

 

 

 

958,215

 

 

 

819,222

 

 

 

634,024

 

Total loans

 

 

3,084,915

 

 

 

2,962,721

 

 

 

2,920,684

 

 

 

2,848,110

 

 

 

2,954,189

 

Allowance for credit losses

 

 

(50,703

)

 

 

(48,424

)

 

 

(47,704

)

 

 

(47,262

)

 

 

(50,041

)

Total assets

 

 

4,417,447

 

 

 

4,454,474

 

 

 

4,447,819

 

 

 

4,451,432

 

 

 

4,428,001

 

Total deposits

 

 

4,016,814

 

 

 

4,034,500

 

 

 

3,980,239

 

 

 

3,970,936

 

 

 

3,964,633

 

Subordinated debt

 

 

59,039

 

 

 

59,009

 

 

 

58,979

 

 

 

58,949

 

 

 

58,919

 

Total shareholders' equity

 

 

285,110

 

 

 

310,539

 

 

 

346,895

 

 

 

346,540

 

 

 

339,317

 

Total liabilities and shareholders' equity

 

 

4,417,447

 

 

 

4,454,474

 

 

 

4,447,819

 

 

 

4,451,432

 

 

 

4,428,001

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management

 

 

 

 

 

 

 

 

 

 

Wealth assets under management

 

$

849,536

 

 

$

961,491

 

 

$

1,041,409

 

 

$

966,180

 

 

$

966,393

 

Wealth assets under administration

 

$

205,646

 

 

$

243,247

 

 

$

257,867

 

 

$

235,002

 

 

$

236,547

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity Ratios

 

 

 

 

 

 

 

 

 

 

Book value per common share

 

$

23.53

 

 

$

25.66

 

 

$

28.82

 

 

$

28.81

 

 

$

28.24

 

Dividends paid per common share

 

$

0.410

 

 

$

0.205

 

 

$

0.740

 

 

$

0.555

 

 

$

0.370

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital Ratios

 

 

 

 

 

 

 

 

 

 

Total capital to risk weighted assets

 

 

13.38

%

 

 

13.72

%

 

 

13.73

%

 

 

14.16

%

 

 

14.46

%

Tier 1 capital to risk weighted assets(1)

 

 

10.38

%

 

 

10.65

%

 

 

10.62

%

 

 

10.94

%

 

 

11.15

%

Tier 1 capital to average assets

 

 

8.04

%

 

 

7.83

%

 

 

7.56

%

 

 

7.42

%

 

 

7.44

%

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Data

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

6,321

 

 

$

25,173

 

 

$

26,581

 

 

$

27,835

 

 

$

32,061

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

2,400

 

 

 

2,400

 

Non-performing assets

 

$

6,321

 

 

$

25,173

 

 

$

26,581

 

 

$

30,235

 

 

$

34,461

 

Non-performing loans to total loans

 

 

0.20

%

 

 

0.85

%

 

 

0.91

%

 

 

0.98

%

 

 

1.09

%

Non-performing assets to total assets

 

 

0.14

%

 

 

0.57

%

 

 

0.60

%

 

 

0.68

%

 

 

0.78

%

ACL for loans to total loans

 

 

1.64

%

 

 

1.63

%

 

 

1.63

%

 

 

1.66

%

 

 

1.69

%

ACL for loans to total core loans (non-GAAP)(2)

 

 

1.65

%

 

 

1.65

%

 

 

1.67

%

 

 

1.75

%

 

 

1.89

%

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

35,821

 

 

$

34,033

 

 

$

35,655

 

 

$

35,879

 

 

$

35,286

 

Provision for credit losses

 

 

2,409

 

 

 

530

 

 

 

1,023

 

 

 

28

 

 

 

39

 

Total non-interest income

 

 

4,132

 

 

 

5,595

 

 

 

5,977

 

 

 

3,079

 

 

 

4,752

 

Total non-interest expense

 

 

26,853

 

 

 

25,757

 

 

 

26,526

 

 

 

25,769

 

 

 

25,156

 

Income before income taxes

 

 

10,691

 

 

 

13,341

 

 

 

14,083

 

 

 

13,161

 

 

 

14,843

 

Provision for income taxes

 

 

2,530

 

 

 

3,054

 

 

 

3,235

 

 

 

3,329

 

 

 

3,704

 

Net income

 

$

8,161

 

 

$

10,287

 

 

$

10,848

 

 

$

9,832

 

 

$

11,139

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Ratios

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.67

 

 

$

0.85

 

 

$

0.90

 

 

$

0.81

 

 

$

0.92

 

Return on average total assets

 

 

0.76

%

 

 

0.95

%

 

 

0.97

%

 

 

0.88

%

 

 

1.04

%

Return on average shareholders' equity

 

 

11.24

%

 

 

12.56

%

 

 

12.56

%

 

 

11.30

%

 

 

13.39

%

Net interest margin (tax-equivalent)(3)

 

 

3.45

%

 

 

3.28

%

 

 

3.34

%

 

 

3.39

%

 

 

3.45

%

(1)   Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.

(2)   See non-GAAP measures table below for PPP-adjusted balances referred to as core.

(3)   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)

(Dollars in thousands)

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

 

June 30,
2021

Commercial real estate

 

$

1,865,198

 

 

$

1,779,691

 

 

$

1,680,792

 

 

$

1,556,240

 

 

$

1,541,397

 

Commercial and industrial

 

 

422,006

 

 

 

408,341

 

 

 

412,070

 

 

 

401,718

 

 

 

404,432

 

Commercial construction

 

 

385,752

 

 

 

375,709

 

 

 

410,443

 

 

 

412,332

 

 

 

383,807

 

SBA PPP

 

 

15,288

 

 

 

32,153

 

 

 

71,502

 

 

 

148,240

 

 

 

300,083

 

Total commercial loans

 

 

2,688,244

 

 

 

2,595,894

 

 

 

2,574,807

 

 

 

2,518,530

 

 

 

2,629,719

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgages

 

 

307,131

 

 

 

280,507

 

 

 

256,940

 

 

 

239,960

 

 

 

233,580

 

Home equity loans and lines

 

 

81,648

 

 

 

78,557

 

 

 

80,467

 

 

 

81,217

 

 

 

82,336

 

Consumer

 

 

7,892

 

 

 

7,763

 

 

 

8,470

 

 

 

8,403

 

 

 

8,554

 

Total retail loans

 

 

396,671

 

 

 

366,827

 

 

 

345,877

 

 

 

329,580

 

 

 

324,470

 

Total loans

 

 

3,084,915

 

 

 

2,962,721

 

 

 

2,920,684

 

 

 

2,848,110

 

 

 

2,954,189

 

 

 

 

 

 

 

 

 

 

 

 

ACL for loans

 

 

(50,703

)

 

 

(48,424

)

 

 

(47,704

)

 

 

(47,262

)

 

 

(50,041

)

Net loans

 

$

3,034,212

 

 

$

2,914,297

 

 

$

2,872,980

 

 

$

2,800,848

 

 

$

2,904,148

 

Major classifications of loans at the dates indicated were as follows:

(Dollars in thousands)

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

 

June 30,
2021

Non-interest checking

 

$

1,457,220

 

$

1,444,047

 

$

1,364,258

 

$

1,404,353

 

$

1,373,353

Interest-bearing checking

 

 

712,898

 

 

718,107

 

 

743,587

 

 

713,991

 

 

694,508

Savings

 

 

334,728

 

 

334,923

 

 

310,244

 

 

294,143

 

 

303,663

Money market

 

 

1,293,453

 

 

1,337,670

 

 

1,355,701

 

 

1,344,116

 

 

1,293,733

CDs $250,000 or less

 

 

144,084

 

 

149,309

 

 

154,403

 

 

160,810

 

 

163,821

CDs greater than $250,000

 

 

74,431

 

 

50,444

 

 

52,046

 

 

53,523

 

 

60,541

Total customer deposits

 

 

4,016,814

 

 

4,034,500

 

 

3,980,239

 

 

3,970,936

 

 

3,889,619

Brokered deposits

 

 

 

 

 

 

 

 

 

 

75,014

Deposits

 

$

4,016,814

 

$

4,034,500

 

$

3,980,239

 

$

3,970,936

 

$

3,964,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits are summarized as follows as of the periods indicated:

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 three months ended June 30, 2022 and 2021:

 

 

Three months ended June 30, 2022

 

Three months ended June 30, 2021

(Dollars in thousands)

 

Average
Balance

 

Interest(1)

 

Average
Yield(1)

 

Average
Balance

 

Interest(1)

 

Average
Yield(1)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Loans and loans held for sale(2) (tax equivalent)

 

$

3,020,113

 

$

32,259

 

4.28

%

 

$

3,050,289

 

$

33,786

 

4.44

%

Investment securities(3) (tax equivalent)

 

 

969,563

 

 

5,012

 

2.07

%

 

 

590,488

 

 

3,661

 

2.48

%

Other interest-earning assets(4)

 

 

214,167

 

 

393

 

0.74

%

 

 

506,803

 

 

144

 

0.11

%

Total interest-earnings assets (tax equivalent)

 

 

4,203,843

 

 

37,664

 

3.59

%

 

 

4,147,580

 

 

37,591

 

3.63

%

Other assets

 

 

115,413

 

 

 

 

 

 

157,297

 

 

 

 

Total assets

 

$

4,319,256

 

 

 

 

 

$

4,304,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking, savings and money market

 

$

2,296,268

 

 

456

 

0.08

%

 

$

2,234,017

 

 

381

 

0.07

%

CDs

 

 

198,766

 

 

215

 

0.43

%

 

 

230,028

 

 

470

 

0.82

%

Brokered deposits

 

 

 

 

 

%

 

 

75,001

 

 

259

 

1.39

%

Borrowed funds

 

 

2,961

 

 

13

 

1.73

%

 

 

8,625

 

 

18

 

0.83

%

Subordinated debt(5)

 

 

59,021

 

 

817

 

5.54

%

 

 

58,901

 

 

818

 

5.55

%

Total interest-bearing funding

 

 

2,557,016

 

 

1,501

 

0.24

%

 

 

2,606,572

 

 

1,946

 

0.30

%

Non-interest checking

 

 

1,424,132

 

 

 

 

 

 

1,321,903

 

 

 

 

Total deposits, borrowed funds and subordinated debt

 

 

3,981,148

 

 

1,501

 

0.15

%

 

 

3,928,475

 

 

1,946

 

0.20

%

Other liabilities

 

 

46,945

 

 

 

 

 

 

42,816

 

 

 

 

Total liabilities

 

 

4,028,093

 

 

 

 

 

 

3,971,291

 

 

 

 

Stockholders' equity

 

 

291,163

 

 

 

 

 

 

333,586

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,319,256

 

 

 

 

 

$

4,304,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest-rate spread (tax equivalent)

 

 

 

 

 

3.35

%

 

 

 

 

 

3.33

%

Net interest income (tax equivalent)

 

 

 

 

36,163

 

 

 

 

 

 

35,645

 

 

Net interest margin (tax equivalent)

 

 

 

 

 

3.45

%

 

 

 

 

 

3.45

%

Less tax equivalent adjustment

 

 

 

 

342

 

 

 

 

 

 

359

 

 

Net interest income

 

 

 

$

35,821

 

 

 

 

 

$

35,286

 

 

Net interest margin

 

 

 

 

 

3.42

%

 

 

 

 

 

3.41

%

(1)   Average yields and interest income are presented on a tax equivalent basis, calculated using a U.S. federal income tax rate of 21% in both 2022 and 2021, based on tax equivalent adjustments associated with tax exempt loans and investments interest income.

(2)   Average loans and loans held for sale include non-accrual loans and are net of average deferred loan fees.

(3)   Average investments are presented at average amortized cost.

(4)   Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock.

(5)   The subordinated debt is net of average deferred debt issuance costs.


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 six months ended June 30, 2022 and 2021:

 

 

Six months ended June 30, 2022

 

Six months ended June 30, 2021

(Dollars in thousands)

 

Average
Balance

 

Interest(1)

 

Average
Yield(1)

 

Average
Balance

 

Interest(1)

 

Average
Yield(1)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Loans and loans held for sale(2) (tax equivalent)

 

$

2,965,998

 

$

63,064

 

4.29

%

 

$

3,058,424

 

$

67,562

 

4.45

%

Investment securities(3) (tax equivalent)

 

 

958,211

 

 

9,833

 

2.05

%

 

 

583,172

 

 

7,287

 

2.50

%

Other interest-earning assets(4)

 

 

298,409

 

 

574

 

0.39

%

 

 

394,888

 

 

209

 

0.11

%

Total interest-earnings assets (tax equivalent)

 

 

4,222,618

 

 

73,471

 

3.50

%

 

 

4,036,484

 

 

75,058

 

3.75

%

Other assets

 

 

134,683

 

 

 

 

 

 

157,943

 

 

 

 

Total assets

 

$

4,357,301

 

 

 

 

 

$

4,194,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking, savings and money market

 

$

2,333,587

 

 

835

 

0.07

%

 

$

2,166,805

 

 

851

 

0.08

%

CDs

 

 

200,723

 

 

436

 

0.44

%

 

 

235,089

 

 

1,069

 

0.92

%

Brokered deposits

 

 

 

 

 

%

 

 

75,000

 

 

513

 

1.38

%

Borrowed funds

 

 

3,608

 

 

26

 

1.46

%

 

 

7,302

 

 

26

 

0.72

%

Subordinated debt(5)

 

 

59,006

 

 

1,635

 

5.54

%

 

 

66,206

 

 

1,860

 

5.62

%

Total interest-bearing funding

 

 

2,596,924

 

 

2,932

 

0.23

%

 

 

2,550,402

 

 

4,319

 

0.34

%

Non-interest checking

 

 

1,398,840

 

 

 

 

 

 

1,268,133

 

 

 

 

Total deposits, borrowed funds and subordinated debt

 

 

3,995,764

 

 

2,932

 

0.15

%

 

 

3,818,535

 

 

4,319

 

0.23

%

Other liabilities

 

 

50,051

 

 

 

 

 

 

44,812

 

 

 

 

Total liabilities

 

 

4,045,815

 

 

 

 

 

 

3,863,347

 

 

 

 

Stockholders' equity

 

 

311,486

 

 

 

 

 

 

331,080

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,357,301

 

 

 

 

 

$

4,194,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest-rate spread (tax equivalent)

 

 

 

 

 

3.27

%

 

 

 

 

 

3.41

%

Net interest income (tax equivalent)

 

 

 

 

70,539

 

 

 

 

 

 

70,739

 

 

Net interest margin (tax equivalent)

 

 

 

 

 

3.36

%

 

 

 

 

 

3.53

%

Less tax equivalent adjustment

 

 

 

 

685

 

 

 

 

 

 

717

 

 

Net interest income

 

 

 

$

69,854

 

 

 

 

 

$

70,022

 

 

Net interest margin

 

 

 

 

 

3.33

%

 

 

 

 

 

3.49

%

(1)   Average yields and interest income are presented on a tax equivalent basis, calculated using a U.S. federal income tax rate of 21% in both 2022 and 2021, based on tax equivalent adjustments associated with tax exempt loans and investments interest income.

(2)   Average loans and loans held for sale include non-accrual loans and are net of average deferred loan fees.

(3)   Average investments are presented at average amortized cost.

(4)   Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock.

(5)   The subordinated debt is net of average deferred debt issuance costs.


ENTERPRISE BANCORP, INC.
Non-GAAP Financial Measures and Reconciliations
(unaudited)

NON-GAAP MEASURES
The accompanying unaudited consolidated interim financial statements have been prepared in accordance with GAAP. However, certain financial measures we present are supplemental measures that are not required by or are not presented in accordance with GAAP. These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. In addition, the non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies; therefore these measures may not be comparable to other similarly titled measures as presented by other companies.

The following tables summarize the reconciliation of GAAP to non-GAAP measures related to the impact of PPP loans on total loans and loan interest income:

(Dollars in thousands)

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

 

June 30,
2021

Total Core Loans

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

3,084,915

 

 

$

2,962,721

 

 

$

2,920,684

 

 

$

2,848,110

 

 

$

2,954,189

 

Adjustment: PPP loans

 

 

(15,758

)

 

 

(33,182

)

 

 

(73,885

)

 

 

(153,552

)

 

 

(309,710

)

Adjustment: Deferred PPP fees

 

 

470

 

 

 

1,029

 

 

 

2,383

 

 

 

5,312

 

 

 

9,627

 

Total core loans (non-GAAP)

 

$

3,069,627

 

 

$

2,930,568

 

 

$

2,849,182

 

 

$

2,699,870

 

 

$

2,654,106

 


 

 

Three months ended

 

Six months ended

 

 

June 30,

 

June 30,

(Dollars in thousands)

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Loan Income Excluding PPP Income

 

 

 

 

 

 

 

 

Loan income

 

$

32,148

 

 

$

33,660

 

 

$

62,843

 

 

$

67,310

 

Adjustment: PPP income

 

 

(622

)

 

 

(5,584

)

 

 

(2,100

)

 

 

(11,597

)

Loan income excluding PPP income (non-GAAP)

 

$

31,526

 

 

$

28,076

 

 

$

60,743

 

 

$

55,713

 

 

 

 

 

 

 

 

 

 

Net Interest Income Excluding PPP Income

 

 

 

 

 

 

 

 

Net interest income

 

$

35,821

 

 

$

35,286

 

 

$

69,854

 

 

$

70,022

 

Adjustment: PPP income

 

 

(622

)

 

 

(5,584

)

 

 

(2,100

)

 

 

(11,597

)

Net interest income excluding PPP income (non-GAAP)

 

$

35,199

 

 

$

29,702

 

 

$

67,754

 

 

$

58,425

 


ENTERPRISE BANCORP, INC.
Non-GAAP Financial Measures and Reconciliations (continued)
(unaudited)

The following tables summarize the reconciliation of GAAP to non-GAAP measures related to the impact of PPP loans and interest-earning deposits with banks on net interest margin:

 

 

Three months ended

 

Six months ended

(Dollars in thousands)

 

June 30,
2022

 

June 30,
2021

 

June 30,
2022

 

June 30,
2021

Adjusted Average Interest-Earning Assets

 

 

 

 

 

 

 

 

Total average interest-earning assets

 

$

4,203,843

 

 

$

4,147,580

 

 

$

4,222,618

 

 

$

4,036,484

 

Adjustment: Average PPP loans, net

 

 

(23,997

)

 

 

(411,867

)

 

 

(36,394

)

 

 

(432,227

)

Adjustment: Average interest-earning deposits with banks

 

 

(211,844

)

 

 

(504,649

)

 

 

(296,212

)

 

 

(392,844

)

Total adjusted average interest-earning assets (non-GAAP)

 

$

3,968,002

 

 

$

3,231,064

 

 

$

3,890,012

 

 

$

3,211,413

 

 

 

 

 

 

 

 

 

 

Adjusted Net Interest Income

 

 

 

 

 

 

 

 

Net interest income (tax equivalent)

 

$

36,163

 

 

$

35,645

 

 

$

70,539

 

 

$

70,739

 

Adjustment: PPP income

 

 

(622

)

 

 

(5,584

)

 

 

(2,100

)

 

 

(11,597

)

Adjustment: Interest on interest-earning deposits with banks

 

 

(380

)

 

 

(136

)

 

 

(552

)

 

 

(204

)

Adjusted net interest income (tax equivalent) (non-GAAP)

 

$

35,161

 

 

$

29,925

 

 

$

67,887

 

 

$

58,938

 

 

 

 

 

 

 

 

 

 

Adjusted Net Interest Margin

 

 

 

 

 

 

 

 

Net interest margin (tax equivalent)

 

 

3.45

%

 

 

3.45

%

 

 

3.36

%

 

 

3.53

%

Adjustment: PPP effect(1)

 

(0.04)        %

 

(0.22)        %

 

(0.07)        %

 

(0.22)        %

Adjustment: Interest-earning deposits with banks effect(2)

 

 

0.14

%

 

 

0.48

%

 

 

0.22

%

 

 

0.39

%

Adjusted net interest margin (tax equivalent) (non-GAAP)

 

 

3.55

%

 

 

3.71

%

 

 

3.51

%

 

 

3.70

%

(1)   PPP loan adjustments include an elimination of average PPP loans, net of deferred SBA fees, as well as interest income on PPP loans and related SBA fee accretion, included in net interest income.

(2)   Interest-earning deposit adjustments include an elimination of average interest-earning deposits with banks, as well as interest income on interest-earning deposits with banks, included in net interest income.

The following tables summarize the reconciliation of GAAP to non-GAAP measures related to the impact of AOCI on the Company's reported book value per common share and return on average shareholders' equity:

 

 

At or for the three months ended

(Dollars in thousands, except per share data)

 

June 30,
2022

 

December 31,
2021

Shareholders' Equity

 

 

 

 

Total shareholders' equity (as reported)

 

$

285,110

 

 

$

346,895

 

Less: accumulated other comprehensive (loss) income

 

 

(72,378

)

 

 

4,662

 

Shareholders' equity excluding AOCI (non-GAAP)

 

$

357,488

 

 

$

342,233

 

 

 

 

 

 

Book Value Per Common Share

 

 

 

 

Book value per common share (as reported)

 

$

23.53

 

 

$

28.82

 

Book value per common share excluding AOCI (non-GAAP)

 

$

29.51

 

 

$

28.43

 

 

 

 

 

 

Average Shareholders' Equity

 

 

 

 

Total average shareholders' equity (as reported)

 

$

291,163

 

 

$

342,635

 

Less: average accumulated other comprehensive (loss) income

 

 

(69,125

)

 

 

3,585

 

Average shareholders' equity excluding AOCI (non-GAAP)

 

$

360,288

 

 

$

339,050

 

 

 

 

 

 

Return on Average Shareholders' Equity

 

 

 

 

Return on average shareholders' equity (as reported)

 

 

11.24

%

 

 

12.56

%

Return on average shareholders' equity excluding AOCI (non-GAAP)

 

 

9.09

%

 

 

12.69

%

 

 

 

 

 

 

 

 

 

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