Enterprise Bancorp Inc (EBTC) Reports Q3 2023 Earnings
Enterprise Bancorp Inc (NASDAQ:EBTC) reported a net income of $9.7 million for Q3 2023, compared to $12.0 million for the same period in 2022.
Total loans increased by 2% compared to Q2 2023, and 9% compared to Q3 2022.
Net interest income for Q3 2023 amounted to $38.5 million, a decrease of $1.3 million compared to Q3 2022.
The company's Board of Directors declared a quarterly dividend of $0.23 per share, an increase of 12% over the prior year period.
Enterprise Bancorp Inc (NASDAQ:EBTC) announced its financial results for the third quarter of 2023 on October 24, 2023. The company reported a net income of $9.7 million, or $0.79 per diluted common share, for the three months ended September 30, 2023. This is compared to $12.0 million, or $0.98, for the same period in 2022. The return on average assets and average equity were 0.85% and 12.53%, respectively.
Financial Highlights
The tax-equivalent net interest margin (non-GAAP) was 3.46%. Total loans increased by 2% compared to June 30, 2023, and 9% compared to September 30, 2022. However, total deposits decreased by 0.4% compared to June 30, 2023, and 2% compared to September 30, 2022. Overnight and short-term investments amounted to $180.1 million.
CEO and Executive Chairman's Comments
CEO Jack Clancy commented,
We are pleased with our third quarter results. Liquidity remained favorable and loan growth has been solid and consistent. While increasing funding costs remain a challenge, we continue to experience strong growth opportunities in our markets for our commercial lending, cash management and wealth management services."
Executive Chairman & Founder George Duncan added,
I am pleased to highlight that on October 17th, the Company's Board of Directors declared a quarterly dividend of $0.23 per share, an increase of 12% over the prior year period."
Net Interest Income and Margin
Net interest income for the three months ended September 30, 2023, amounted to $38.5 million, a decrease of $1.3 million, or 3%, compared to the three months ended September 30, 2022. The decrease was largely due to an increase in deposit interest expense of $11.4 million which resulted from continued market interest rate increases and a change in deposit mix, partially offset by increases in loan interest income of $9.2 million and other interest-earning asset income of $1.4 million.
Balance Sheet and Shareholders' Equity
Total assets amounted to $4.48 billion at September 30, 2023, compared to $4.44 billion at December 31, 2022, an increase of $44.0 million, or 1%. Total shareholders' equity amounted to $299.7 million at September 30, 2023, compared to $282.3 million at December 31, 2022. The increase of $17.4 million, or 6%, was due primarily to an increase in retained earnings, partially offset by an increase in the accumulated other comprehensive loss.
Credit Quality
The ACL for loans amounted to $57.9 million, or 1.70% of total loans, compared to $52.6 million, or 1.66% of total loans. Non-performing loans amounted to $11.7 million, or 0.34% of total loans, compared to $6.1 million, or 0.19% of total loans.
Explore the complete 8-K earnings release (here) from Enterprise Bancorp Inc for further details.
This article first appeared on GuruFocus.
