Enterprise Bancorp, Inc. (EBTC) Bundle
A Brief History of Enterprise Bancorp, Inc.
Enterprise Bancorp, Inc. (EBTC) operates primarily through Enterprise Bank and Trust Company. As of September 30, 2024, the company reported total assets of $4.742 billion, an increase of 6% from $4.466 billion at the end of 2023. The increase in total assets was driven by a rise in total loans to $3.859 billion, up from $3.568 billion at December 31, 2023, marking an 8% increase.
Financial Performance Overview
For the third quarter of 2024, Enterprise Bancorp reported net interest income of $38.020 million, slightly down from $38.502 million in the same quarter of the previous year. The net interest margin for the quarter was 3.22%, compared to 3.46% a year earlier. The provision for credit losses for this quarter was $1.332 million, compared to $1.752 million in Q3 2023.
Balance Sheet Highlights
Total deposits increased to $4.189 billion as of September 30, 2024, from $3.978 billion at the end of 2023, reflecting a 5% growth. The company's total borrowed funds reached $59.949 million, a significant increase from $25.768 million at December 31, 2023.
| Financial Metric | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $4.742 billion | $4.466 billion | 6% |
| Total Loans | $3.859 billion | $3.568 billion | 8% |
| Total Deposits | $4.189 billion | $3.978 billion | 5% |
| Borrowed Funds | $59.949 million | $25.768 million | 133% |
Credit Quality Metrics
As of September 30, 2024, non-performing loans amounted to $25.946 million, which represents 0.67% of total loans, a rise from 0.32% a year earlier. The allowance for credit losses (ACL) was $63.654 million, or 1.65% of total loans.
Wealth Management and Other Services
Enterprise Bancorp's wealth assets under management reached $1.212 billion as of September 30, 2024, up from $1.078 billion at the end of 2023, reflecting a 12.4% increase. The company continues to expand its offerings in wealth management to enhance its revenue streams.
Recent Developments
In recognition of its community involvement, Enterprise Bancorp was ranked second in Massachusetts for employee volunteerism. This commitment to community service complements its financial performance and reputation in the market.
Enterprise Bancorp remains focused on strategic growth, with plans to enhance its product offerings and expand its market presence through both organic growth and community engagement initiatives.
A Who Owns Enterprise Bancorp, Inc. (EBTC)
Ownership Structure
As of 2024, Enterprise Bancorp, Inc. (NASDAQ: EBTC) has a diversified ownership structure consisting of institutional investors, individual shareholders, and company insiders. The ownership percentage among these groups provides insights into the company's governance and market confidence.
| Ownership Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 50.3% | 6,250,000 |
| Insider Ownership | 10.5% | 1,312,500 |
| Individual Shareholders | 39.2% | 4,890,000 |
Major Institutional Shareholders
The largest institutional shareholders of Enterprise Bancorp include several prominent investment firms. Their involvement can significantly influence corporate strategies and shareholder value.
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| Fidelity Investments | 12.5% | 1,562,500 |
| BlackRock, Inc. | 9.8% | 1,225,000 |
| Wellington Management | 8.3% | 1,037,500 |
| State Street Global Advisors | 7.2% | 900,000 |
| Vanguard Group | 6.5% | 812,500 |
Insider Ownership
Insider ownership is a crucial indicator of management's confidence in the company's future. Key executives and board members hold a significant portion of shares.
| Name | Position | Shares Owned |
|---|---|---|
| George Duncan | Executive Chairman | 400,000 |
| Steven Larochelle | CEO | 250,000 |
| Joseph Lussier | CFO | 150,000 |
| Board Members | Various | 512,500 |
Recent Shareholder Changes
In recent months, there has been a notable increase in institutional holdings, indicating growing confidence in Enterprise Bancorp's strategic direction and financial performance. The increase in share price, which rose approximately 12% over the last year, has also attracted new investors.
| Quarter | Institutional Shareholder Change | Percentage Change |
|---|---|---|
| Q1 2024 | Increased by 3% | From 47.3% to 50.3% |
| Q2 2024 | Stable | No significant change |
| Q3 2024 | Increased by 1% | From 49.3% to 50.3% |
Market Capitalization and Stock Performance
As of September 30, 2024, Enterprise Bancorp's market capitalization stands at approximately $368.1 million, reflecting robust financial performance and investor confidence.
| Metric | Value |
|---|---|
| Market Capitalization | $368.1 million |
| Stock Price (as of Sept 30, 2024) | $29.62 |
| 52-week High | $32.50 |
| 52-week Low | $25.00 |
Enterprise Bancorp, Inc. (EBTC) Mission Statement
Enterprise Bancorp, Inc. (EBTC) aims to enhance the financial well-being of its customers through personalized banking solutions and a commitment to community engagement.
Core Values
- Customer Focus: Prioritizing customer satisfaction and building long-term relationships.
- Integrity: Conducting business with transparency and ethical standards.
- Community Commitment: Supporting local communities through volunteerism and philanthropy.
- Innovation: Leveraging technology to improve banking experiences.
Financial Performance Overview
As of September 30, 2024, EBTC reported a total net income of $10.0 million, or $0.80 per diluted common share. This reflects a growth compared to $9.5 million, or $0.77 per diluted common share in the previous quarter, and $9.7 million, or $0.79 per diluted common share in the same quarter last year.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (in millions) | $10.0 | $9.5 | $9.7 |
| Earnings Per Share (EPS) | $0.80 | $0.77 | $0.79 |
| Total Assets (in billions) | $4.74 | $4.77 | $4.48 |
| Total Loans (in billions) | $3.86 | $3.77 | $3.40 |
| Total Deposits (in billions) | $4.19 | $4.25 | $4.06 |
Commitment to Community
EBTC is dedicated to community involvement, evidenced by its recognition at the Boston Business Journal's Corporate Citizenship Summit, where it was ranked 2nd in Massachusetts for the highest average volunteer hours per employee.
Strategic Goals
- Geographic Expansion: Entering new markets to broaden customer base.
- Customer Acquisition: Focusing on organic growth through enhanced services.
- Investment in Technology: Upgrading digital banking platforms for improved customer experience.
Recent Financial Highlights
For the three months ended September 30, 2024, the following key financial metrics were noted:
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Interest Income | $38,020 |
| Provision for Credit Losses | $1,332 |
| Non-Interest Income | $6,140 |
| Total Non-Interest Expense | $29,353 |
| Net Income | $9,987 |
Conclusion of Financial Overview
As of September 30, 2024, EBTC maintains a strong balance sheet with total shareholders' equity amounting to $368.1 million, reflecting a 12% increase from the previous year.
How Enterprise Bancorp, Inc. (EBTC) Works
Business Model
Enterprise Bancorp, Inc. operates primarily through Enterprise Bank and Trust Company, focusing on attracting deposits and investing in commercial loans and investment securities. The company offers a variety of services including:
- Commercial, residential, and consumer loan products
- Deposit products and cash management services
- Electronic and digital banking options
- Wealth management and trust services
Financial Overview
As of September 30, 2024, Enterprise Bancorp reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $4.74 billion |
| Total Loans | $3.86 billion |
| Total Deposits | $4.19 billion |
| Total Shareholders' Equity | $368.1 million |
| Net Income | $10.0 million |
| Earnings Per Share (Diluted) | $0.80 |
| Return on Average Assets | 0.82% |
| Return on Average Equity | 11.20% |
Loan Portfolio
The composition of the loan portfolio as of September 30, 2024, is as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Real Estate Owner-Occupied | $660,063 |
| Commercial Real Estate Non-Owner-Occupied | $1,579,827 |
| Commercial and Industrial | $415,642 |
| Commercial Construction | $674,434 |
| Residential Mortgages | $424,030 |
| Home Equity Loans and Lines | $95,982 |
| Consumer Loans | $8,962 |
Deposit Composition
The breakdown of deposits as of September 30, 2024, is detailed below:
| Deposit Type | Amount (in thousands) |
|---|---|
| Non-Interest Checking | $1,064,424 |
| Interest-Bearing Checking | $682,050 |
| Savings | $279,824 |
| Money Market | $1,488,437 |
| Certificates of Deposit (CDs) | $674,726 |
Income Statement Highlights
For the three months ended September 30, 2024, the income statement reveals the following:
| Item | Amount (in thousands) |
|---|---|
| Net Interest Income | $38,020 |
| Provision for Credit Losses | $1,332 |
| Total Non-Interest Income | $6,140 |
| Total Non-Interest Expense | $29,353 |
| Income Before Income Taxes | $13,475 |
| Net Income | $9,987 |
Asset Quality Metrics
As of September 30, 2024, key credit quality metrics are as follows:
| Metric | Value |
|---|---|
| Non-Performing Loans | $25.9 million |
| Allowance for Credit Losses (ACL) | $63.7 million |
| Non-Performing Loans to Total Loans | 0.67% |
| ACL for Loans to Total Loans | 1.65% |
Wealth Management
The wealth management segment reported assets under management and administration of $1.51 billion as of September 30, 2024, reflecting a 15% increase compared to the previous year.
How Enterprise Bancorp, Inc. (EBTC) Makes Money
Net Interest Income
Net interest income for the three months ended September 30, 2024, amounted to $38.0 million, a decrease of 1% compared to the previous year. This reduction was driven by an increase in deposit interest expense of $7.7 million and borrowings interest expense of $646 thousand.
The interest income from loans increased by $9.3 million, while the income on other interest-earning assets decreased by $971 thousand. The overall net interest margin was 3.22% for the third quarter of 2024.
| Metrics | September 30, 2024 | September 30, 2023 | Change |
|---|---|---|---|
| Net Interest Income | $38.0 million | $38.5 million | -1% |
| Loan Interest Income | $53.8 million | $44.5 million | +21% |
| Deposit Interest Expense | $20.6 million | $12.9 million | +60% |
| Net Interest Margin | 3.22% | 3.46% | -24 bps |
Non-Interest Income
Non-interest income for the three months ended September 30, 2024, amounted to $6.1 million, an increase of $1.7 million from the previous year. This increase was primarily due to higher gains on equity securities, wealth management fees, and deposit and interchange fees.
| Non-Interest Income Components | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Wealth Management Fees | $2.025 million | $1.673 million |
| Deposit and Interchange Fees | $2.282 million | $1.987 million |
| Net Gains on Equity Securities | $604 thousand | ($181 thousand) |
Loan Portfolio
Total loans amounted to $3.86 billion as of September 30, 2024, reflecting a growth of 2.4% for the quarter and 13.4% year-over-year. The composition of the loan portfolio shows significant growth in commercial real estate and commercial construction loans.
| Loan Type | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Commercial Real Estate (Owner-Occupied) | $660.1 million | $619.3 million |
| Commercial Real Estate (Non-Owner-Occupied) | $1.579 billion | $1.445 billion |
| Commercial Construction | $674.4 million | $585.1 million | Total Commercial Loans | $3.33 billion | $3.08 billion |
Deposit Growth
Total deposits amounted to $4.19 billion as of September 30, 2024, a slight decrease of 1.4% from the previous quarter. The bank continues to emphasize core deposits, with no brokered deposits reported.
| Deposit Type | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Non-Interest Checking | $1.064 billion | $1.061 billion |
| Interest-Bearing Checking | $682.1 million | $697.6 million |
| Money Market | $1.488 billion | $1.402 billion |
| CDs | $675.7 million | $525.1 million |
Non-Interest Expense
Non-interest expense for the three months ended September 30, 2024, totaled $29.4 million, which is an increase of $1.0 million from the previous year. This rise was mainly due to higher salaries and employee benefits, which accounted for approximately 68% of the total non-interest expenses.
| Expense Category | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Salaries and Employee Benefits | $20.1 million | $19.2 million |
| Occupancy and Equipment | $2.4 million | $2.4 million |
| Technology and Telecommunications | $2.6 million | $2.6 million |
| Advertising and PR | $559 thousand | $592 thousand |
| Other Operating Expenses | $1.9 million | $1.9 million |
Wealth Management Services
Wealth management assets under management and administration amounted to $1.51 billion as of September 30, 2024, marking an increase of 15% compared to the previous year.
| Wealth Management Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Assets Under Management | $1.212 billion | $1.078 billion |
| Assets Under Administration | $302.9 million | $242.3 million |
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Article updated on 8 Nov 2024
Resources:
- Enterprise Bancorp, Inc. (EBTC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Enterprise Bancorp, Inc. (EBTC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Enterprise Bancorp, Inc. (EBTC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.