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Enterprise Bancorp, Inc. Announces Third Quarter Financial Results
来源: Nasdaq GlobeNewswire / 22 10月 2024 17:41:14 America/New_York
LOWELL, Mass., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended September 30, 2024. Net income amounted to $10.0 million, or $0.80 per diluted common share, for the three months ended September 30, 2024 compared to $9.5 million, or $0.77 per diluted common share, for the three months ended June 30, 2024 and $9.7 million, or $0.79 per diluted common share, for the three months ended September 30, 2023.
Selected financial results at or for the quarter ended September 30, 2024 compared to June 30, 2024 were as follows:
- The returns on average assets and average equity were 0.82% and 11.20%, respectively.
- Tax-equivalent net interest margin (non-GAAP) ("net interest margin") was 3.22%, an increase of 3 basis points.
- Total loans amounted to $3.86 billion, an increase of 2.4%.
- Total deposits amounted to $4.19 billion, a decrease of 1.4%.
- Wealth assets under management and administration amounted to $1.51 billion, an increase of 8.5%.
Chief Executive Officer Steven Larochelle commented, "Our team continued to deliver strong results in the third quarter. Loan growth was 2.4% for the quarter and 13.4% over the past twelve months. Customer deposits, which were down slightly during the quarter, have increased 5.3% in 2024 and 3.2% over the last twelve months. We continue to be primarily core funded and had no brokered deposits at September 30, 2024. Total borrowings were down $1.8 million compared to June 30, 2024, and amounted to only $59.9 million, or 1.3% of total assets. Higher deposit costs and the inverted yield curve continued to be a headwind, but net interest margin increased to 3.22% in the third quarter of 2024 from 3.19% in the prior quarter and benefited by 2 basis points from a large seasonal deposit."
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 congratulate Steve, who completed his first quarter as CEO of Enterprise, and the whole team for a very successful quarter. I am particularly impressed that the team has been able to achieve such strong loan and deposit growth while stabilizing our net interest margin and without significant increases in wholesale funding. I firmly believe this is a testament to our relationship based, sales and service culture partnered with our strong commitment to community outreach and involvement."
Mr. Duncan added, "On September 5th, we were once again recognized at the Boston Business Journal's Corporate Citizenship Summit for our significant contributions in employee volunteerism and corporate philanthropy. In particular, I am very proud that we ranked 2nd in the Commonwealth of Massachusetts for the highest average of volunteer hours per employee."
Net Interest Income
Net interest income for the three months ended September 30, 2024, amounted to $38.0 million, a decrease of $482 thousand, or 1%, compared to the three months ended September 30, 2023. The decrease was due primarily to increases in deposit interest expense of $7.7 million and borrowings interest expense of $646 thousand and a decrease in income on other interest-earning assets of $971 thousand, partially offset by an increase in loan interest income of $9.3 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 3.22% for the three months ended September 30, 2024, compared to 3.19% for the three months ended June 30, 2024 and 3.46% for the three months ended September 30, 2023.Asset yields for the third quarter of 2024 were 5.09%, an increase of 8 basis points compared to the second quarter of 2024, due primarily to new loan originations, loans 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 $105.3 million, or 3%, and average other interest-earning assets increased $57.6 million, or 46%, compared to the second quarter of 2024.
The cost of funds for the third quarter of 2024 was 1.99%, an increase of 5 basis points compared to the second quarter of 2024. During the third quarter of 2024, average total deposits increased $128.8 million, or 3%, and the cost of deposits increased 6 basis points, compared to the second quarter of 2024. The increase in average total deposits was comprised of increases in average lower-cost checking account balances of $59.4 million, or 3%, which was driven primarily by a large seasonal deposit, and higher-cost savings, money market and certificate of deposit account balances of $69.4 million, or 3%.
Provision for Credit Losses
The provision for credit losses for the three-month periods ended September 30, 2024 and September 30, 2023 are presented below:Three months ended Increase / (Decrease) (Dollars in thousands) September 30,
2024September 30,
2023Provision for credit losses on loans - collectively evaluated $ (663 ) $ (1,518 ) $ 855 Provision for credit losses on loans - individually evaluated 2,311 2,512 (201 ) Provision for credit losses on loans 1,648 994 654 Provision for unfunded commitments (316 ) 758 (1,074 ) Provision for credit losses $ 1,332 $ 1,752 $ (420 )
The increase in the provision for credit losses on loans of $654 thousand was due primarily to a net increase in reserves on individually evaluated loans. The increase in reserves on individually evaluated loans for the three months ended September 30, 2024 was driven by one individually evaluated commercial relationship which was downgraded, placed on non-accrual and assigned specific reserves of $3.4 million, partially offset by a reduction of $1.2 million in specific reserves resulting from a commercial relationship that experienced improvement in its collateral valuation during the period. The reduction in the provision for unfunded commitments of $1.1 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 September 30, 2024, amounted to $6.1 million, an increase of $1.7 million compared to the three months ended September 30, 2023. The increase in non-interest income was due primarily to increases in gains on equity securities, wealth management fees and deposit and interchange fees.Non-Interest Expense
Non-interest expense for the three months ended September 30, 2024, amounted to $29.4 million, an increase of $1.0 million, or 4%, compared to the three months ended September 30, 2023. The increase in non-interest expense was due primarily to an increase in salaries and employee benefits expense of $938 thousand, or 5%.Balance Sheet
Total assets amounted to $4.74 billion at September 30, 2024, compared to $4.47 billion at December 31, 2023, an increase of 6%.Total investment securities at fair value amounted to $632.0 million at September 30, 2024, compared to $668.2 million at December 31, 2023. The decrease of 5% during the nine months ended September 30, 2024 was largely attributable to principal pay-downs, calls and maturities. Unrealized losses on debt securities amounted to $80.8 million at September 30, 2024, compared to $102.9 million at December 31, 2023, a decrease of 21% that resulted from lower term interest rates.
Total loans amounted to $3.86 billion at September 30, 2024, compared to $3.57 billion at December 31, 2023. The increase of 8% during the nine months ended September 30, 2024 was due primarily to increases in commercial real estate and construction loans of $175.2 million and $89.3 million, respectively.
Total deposits amounted to $4.19 billion at September 30, 2024, compared to $3.98 billion at December 31, 2023. The increase of 5% during the nine months ended September 30, 2024 was due primarily to increases in money market and certificate of deposit balances of $85.5 million and $153.6 million, respectively.
Total borrowed funds amounted to $59.9 million at September 30, 2024, compared to $25.8 million at December 31, 2023. The increase during the nine months ended September 30, 2024 resulted from a term advance in the first quarter of 2024.
Total shareholders' equity amounted to $368.1 million at September 30, 2024, compared to $329.1 million at December 31, 2023. The increase of 12% during the nine months ended September 30, 2024 was due primarily to an increase in retained earnings of $19.1 million and a decrease in the accumulated other comprehensive loss of $17.1 million.
Credit Quality
Selected credit quality metrics at September 30, 2024, compared to December 31, 2023, were as follows:- The ACL for loans amounted to $63.7 million, or 1.65% of total loans, compared to $59.0 million, or 1.65% of total loans.
- The reserve for unfunded commitments (included in other liabilities) amounted to $4.6 million, compared to $7.1 million.
- Non-performing loans amounted to $25.9 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase in non-performing loans during the nine months ended September 30, 2024 resulted primarily from two individually evaluated commercial construction loans which were placed on non-accrual.
Net recoveries amounted to $7 thousand for the three months ended September 30, 2024, compared to $12 thousand for the three months ended September 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 $1.51 billion at September 30, 2024, an increase of $194.9 million, or 15%, compared to December 31, 2023, and resulted primarily from an increase in market values.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 140 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 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 the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures 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, deficit 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, including as a result of changes in U.S. presidential administrations or Congress; 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) September 30,
2024December 31,
2023September 30,
2023Assets Cash and cash equivalents: Cash and due from banks $ 60,466 $ 37,443 $ 45,345 Interest-earning deposits with banks 28,166 19,149 180,076 Total cash and cash equivalents 88,632 56,592 225,421 Investments: Debt securities at fair value (amortized cost of $703,311, $763,981 and $806,077, respectively) 622,527 661,113 672,894 Equity securities at fair value 9,448 7,058 6,038 Total investment securities at fair value 631,975 668,171 678,932 Federal Home Loan Bank stock 2,482 2,402 2,403 Loans held for sale 1,229 200 — Loans: Total loans 3,858,940 3,567,631 3,404,014 Allowance for credit losses (63,654 ) (58,995 ) (57,905 ) Net loans 3,795,286 3,508,636 3,346,109 Premises and equipment, net 43,291 44,931 43,391 Lease right-of-use asset 24,291 24,820 24,979 Accrued interest receivable 20,529 19,233 18,572 Deferred income taxes, net 44,067 49,166 55,080 Bank-owned life insurance 66,899 65,455 65,106 Prepaid income taxes 4,645 1,589 2,548 Prepaid expenses and other assets 13,827 19,183 14,177 Goodwill 5,656 5,656 5,656 Total assets $ 4,742,809 $ 4,466,034 $ 4,482,374 Liabilities and Shareholders'Equity Liabilities Deposits $ 4,189,461 $ 3,977,521 $ 4,060,403 Borrowed funds 59,949 25,768 4,290 Subordinated debt 59,736 59,498 59,419 Lease liability 24,010 24,441 24,589 Accrued expenses and other liabilities 32,116 45,011 31,288 Accrued interest payable 9,428 4,678 2,686 Total liabilities 4,374,700 4,136,917 4,182,675 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; 12,428,426, 12,272,674 and 12,256,964 shares issued and outstanding, respectively. 124 123 123 Additional paid-in capital 110,110 107,377 106,451 Retained earnings 320,497 301,380 296,291 Accumulated other comprehensive loss (62,622 ) (79,763 ) (103,166 ) Total shareholders' equity 368,109 329,117 299,699 Total liabilities and shareholders' equity $ 4,742,809 $ 4,466,034 $ 4,482,374 ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited)Three months ended Nine months ended (Dollars in thousands, except per share data) September 30,
2024June 30,
2024September 30,
2023September 30,
2024September 30,
2023Interest and dividend income: Other interest-earning assets $ 2,497 $ 1,697 $ 3,468 $ 5,366 $ 7,593 Investment securities 3,835 3,943 4,316 11,812 14,356 Loans and loans held for sale 53,809 51,224 44,501 153,850 125,855 Total interest and dividend income 60,141 56,864 52,285 171,028 147,804 Interest expense: Deposits 20,581 19,172 12,889 57,025 28,568 Borrowed funds 674 664 28 2,032 70 Subordinated debt 866 867 866 2,600 2,600 Total interest expense 22,121 20,703 13,783 61,657 31,238 Net interest income 38,020 36,161 38,502 109,371 116,566 Provision for credit losses 1,332 137 1,752 2,091 6,756 Net interest income after provision for credit losses 36,688 36,024 36,750 107,280 109,810 Non-interest income: Wealth management fees 2,025 1,970 1,673 5,845 4,933 Deposit and interchange fees 2,282 2,284 1,987 6,635 6,330 Income on bank-owned life insurance, net 518 503 327 1,479 950 Net losses on sales of debt securities (2 ) — — (2 ) (2,419 ) Net gains on sales of loans 57 44 14 123 34 Net gains (losses) on equity securities 604 101 (181 ) 1,170 (8 ) Other income 656 726 666 2,013 2,242 Total non-interest income 6,140 5,628 4,486 17,263 12,062 Non-interest expense: Salaries and employee benefits 20,097 19,675 19,159 58,948 53,815 Occupancy and equipment expenses 2,438 2,406 2,433 7,303 7,439 Technology and telecommunications expenses 2,618 2,658 2,626 8,021 7,937 Advertising and public relations expenses 559 674 592 1,976 2,077 Audit, legal and other professional fees 569 711 735 2,014 2,157 Deposit insurance premiums 900 862 654 2,621 1,944 Supplies and postage expenses 261 240 251 738 753 Other operating expenses 1,911 1,803 1,862 5,669 5,853 Total non-interest expense 29,353 29,029 28,312 87,290 81,975 Income before income taxes 13,475 12,623 12,924 37,253 39,897 Provision for income taxes 3,488 3,111 3,225 9,247 9,746 Net income $ 9,987 $ 9,512 $ 9,699 $ 28,006 $ 30,151 Basic earnings per common share $ 0.80 $ 0.77 $ 0.79 $ 2.26 $ 2.47 Diluted earnings per common share $ 0.80 $ 0.77 $ 0.79 $ 2.26 $ 2.46 Basic weighted average common shares outstanding 12,428,543 12,389,917 12,247,892 12,370,812 12,210,740 Diluted weighted average common shares outstanding 12,438,160 12,394,463 12,264,778 12,379,390 12,233,861 ENTERPRISE BANCORP, INC.
Selected Consolidated Financial Data and Ratios
(unaudited)At or for the three months ended (Dollars in thousands, except per share data) September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023Balance Sheet Data Total cash and cash equivalents $ 88,632 $ 199,719 $ 147,834 $ 56,592 $ 225,421 Total investment securities at fair value 631,975 636,838 652,026 668,171 678,932 Total loans 3,858,940 3,768,649 3,654,322 3,567,631 3,404,014 Allowance for credit losses (63,654 ) (61,999 ) (60,741 ) (58,995 ) (57,905 ) Total assets 4,742,809 4,773,681 4,624,015 4,466,034 4,482,374 Total deposits 4,189,461 4,248,801 4,106,119 3,977,521 4,060,403 Borrowed funds 59,949 61,785 63,246 25,768 4,290 Subordinated debt 59,736 59,657 59,577 59,498 59,419 Total shareholders' equity 368,109 340,441 333,439 329,117 299,699 Total liabilities and shareholders' equity 4,742,809 4,773,681 4,624,015 4,466,034 4,482,374 Wealth Management Wealth assets under management $ 1,212,076 $ 1,129,147 $ 1,105,036 $ 1,077,761 $ 984,647 Wealth assets under administration $ 302,891 $ 267,529 $ 268,074 $ 242,338 $ 211,046 Shareholders' Equity Ratios Book value per common share $ 29.62 $ 27.40 $ 26.94 $ 26.82 $ 24.45 Dividends paid per common share $ 0.24 $ 0.24 $ 0.24 $ 0.23 $ 0.23 Regulatory Capital Ratios Total capital to risk weighted assets 13.07 % 13.07 % 13.20 % 13.12 % 13.45 % Tier 1 capital to risk weighted assets(1) 10.36 % 10.34 % 10.43 % 10.34 % 10.61 % Tier 1 capital to average assets 8.68 % 8.76 % 8.85 % 8.74 % 8.59 % Credit Quality Data Non-performing loans $ 25,946 $ 17,731 $ 18,527 $ 11,414 $ 11,656 Non-performing loans to total loans 0.67 % 0.47 % 0.51 % 0.32 % 0.34 % Non-performing assets to total assets 0.55 % 0.37 % 0.40 % 0.26 % 0.26 % ACL for loans to total loans 1.65 % 1.65 % 1.66 % 1.65 % 1.70 % Net (recoveries) charge-offs $ (7 ) $ (130 ) $ 122 $ 15 $ (12 ) Income Statement Data Net interest income $ 38,020 $ 36,161 $ 35,190 $ 36,518 $ 38,502 Provision for credit losses 1,332 137 622 2,493 1,752 Total non-interest income 6,140 5,628 5,495 5,547 4,486 Total non-interest expense 29,353 29,029 28,908 28,224 28,312 Income before income taxes 13,475 12,623 11,155 11,348 12,924 Provision for income taxes 3,488 3,111 2,648 3,441 3,225 Net income $ 9,987 $ 9,512 $ 8,507 $ 7,907 $ 9,699 Income Statement Ratios Diluted earnings per common share $ 0.80 $ 0.77 $ 0.69 $ 0.64 $ 0.79 Return on average total assets 0.82 % 0.82 % 0.75 % 0.69 % 0.85 % Return on average shareholders' equity 11.20 % 11.55 % 10.47 % 10.21 % 12.53 % Net interest margin (tax-equivalent)(2) 3.22 % 3.19 % 3.20 % 3.29 % 3.46 % (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) September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023Commercial real estate owner-occupied $ 660,063 $ 660,478 $ 635,420 $ 619,302 $ 618,903 Commercial real estate non owner-occupied 1,579,827 1,544,386 1,524,174 1,445,435 1,413,555 Commercial and industrial 415,642 426,976 417,604 430,749 425,334 Commercial construction 674,434 622,094 583,711 585,113 501,179 Total commercial loans 3,329,966 3,253,934 3,160,909 3,080,599 2,958,971 Residential mortgages 424,030 413,323 400,093 393,142 362,514 Home equity loans and lines 95,982 93,220 85,144 85,375 74,433 Consumer 8,962 8,172 8,176 8,515 8,096 Total retail loans 528,974 514,715 493,413 487,032 445,043 Total loans 3,858,940 3,768,649 3,654,322 3,567,631 3,404,014 ACL for loans (63,654 ) (61,999 ) (60,741 ) (58,995 ) (57,905 ) Net loans $ 3,795,286 $ 3,706,650 $ 3,593,581 $ 3,508,636 $ 3,346,109 Deposits are summarized as follows as of the periods indicated:
(Dollars in thousands) September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023Non-interest checking $ 1,064,424 $ 1,041,771 $ 1,038,887 $ 1,061,009 $ 1,118,714 Interest-bearing checking 682,050 788,822 730,819 697,632 727,817 Savings 279,824 294,566 285,090 294,865 302,381 Money market 1,488,437 1,504,551 1,469,181 1,402,939 1,434,036 CDs $250,000 or less 375,055 358,149 337,367 295,789 262,975 CDs greater than $250,000 299,671 260,942 244,775 225,287 214,480 Deposits $ 4,189,461 $ 4,248,801 $ 4,106,119 $ 3,977,521 $ 4,060,403 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 September 30, 2024 Three Months Ended June 30, 2024 Three months ended September 30, 2023 (Dollars in thousands) Average
BalanceInterest(1) Average
Yield(1)Average
BalanceInterest(1) Average
Yield(1)Average
BalanceInterest(1) Average
Yield(1)Assets: Other interest-earning assets(2) $ 181,465 $ 2,497 5.48 % $ 123,887 $ 1,697 5.51 % $ 260,475 $ 3,468 5.28 % Investment securities(3)(tax-equivalent) 731,815 3,945 2.16 % 750,822 4,057 2.16 % 820,156 4,444 2.17 % Loans and loans held for sale(4)(tax-equivalent) 3,813,800 53,956 5.63 % 3,708,485 51,366 5.57 % 3,372,754 44,644 5.25 % Total interest-earnings assets (tax-equivalent) 4,727,080 60,398 5.09 % 4,583,194 57,120 5.01 % 4,453,385 52,556 4.69 % Other assets 104,284 96,991 82,190 Total assets $ 4,831,364 $ 4,680,185 $ 4,535,575 Liabilities and stockholders' equity: Non-interest checking $ 1,069,130 — $ 1,044,648 — $ 1,186,243 — Interest checking, savings and money market 2,574,439 13,017 2.01 % 2,520,439 12,381 1.98 % 2,491,229 9,185 1.47 % CDs 651,614 7,564 4.62 % 601,339 6,791 4.54 % 430,376 3,704 3.41 % Total deposits 4,295,183 20,581 1.91 % 4,166,426 19,172 1.85 % 4,107,848 12,889 1.24 % Borrowed funds 61,232 674 4.38 % 62,513 664 4.27 % 4,938 28 2.30 % Subordinated debt(5) 59,689 866 5.81 % 59,609 867 5.82 % 59,372 866 5.84 % Total funding liabilities 4,416,104 22,121 1.99 % 4,288,548 20,703 1.94 % 4,172,158 13,783 1.31 % Other liabilities 60,524 60,270 56,414 Total liabilities 4,476,628 4,348,818 4,228,572 Stockholders' equity 354,736 331,367 307,003 Total liabilities and stockholders' equity $ 4,831,364 $ 4,680,185 $ 4,535,575 Net interest-rate spread (tax-equivalent) 3.10 % 3.07 % 3.38 % Net interest income (tax-equivalent) 38,277 36,417 38,773 Net interest margin (tax-equivalent) 3.22 % 3.19 % 3.46 % Less tax-equivalent adjustment 257 256 271 Net interest income $ 38,020 $ 36,161 $ 38,502 Net interest margin 3.20 % 3.17 % 3.43 % (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 Federal Home Loan Bank 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
