10-Q - ENTERPRISE BANCORP INC /MA/ (0001018399) (Filer)

Tue, May 6, 7:23 PM (16 days ago)

**Enterprise Bancorp, Inc. (EBTC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $59.551 million, up from $54.023 million in Q1 2024. - **Profit Margins:** Net income increased by 23% to $10.435 million, with earnings per share at $0.84. - **Cash Flow:** Net cash provided by operating activities was $5.395 million, up from $2.177 million in Q1 2024. - **Earnings Changes:** Net income rose by $1.9 million, driven by a $3.5 million increase in net interest income, partially offset by a $1.0 million rise in non-interest expense. **Quarterly Performance Discussion:** - **Net Interest Income:** Increased by $3.5 million due to higher loan interest income. - **Net Interest Margin:** Improved to 3.32% from 3.20%, benefiting from loan growth and yield increases. - **Non-Interest Income:** Decreased by $307 thousand due to lower gains on equity securities. - **Non-Interest Expense:** Increased by $1.0 million, mainly due to higher salaries and merger-related expenses. **Trends and Uncertainties:** - **Loan Growth:** Total loans increased by $66.7 million, with significant growth in commercial real estate loans. - **Deposit Growth:** Total deposits rose by 3%, driven by brokered deposits. - **Asset Quality:** Non-performing loans increased slightly, but the allowance for credit losses remained adequate. - **Regulatory Capital:** The company maintained strong capital ratios, exceeding regulatory requirements. **Future Operations Impact:** - **Merger:** The proposed merger with Independent Bank Corp. is expected to close in the second half of 2025, subject to regulatory approvals. - **Economic Uncertainties:** The company faces risks from potential recessions, interest rate changes, and competitive pressures. **Conclusion:** Enterprise Bancorp, Inc. demonstrated strong financial performance in Q1 2025, with notable improvements in net income and margin. The company's strategic initiatives, including loan growth and merger activities, position it for future success, despite economic uncertainties.