• Enterprise Bancorp, Inc. Announces Second Quarter Financial Results

    Source: Nasdaq GlobeNewswire / 23 Jul 2024 16:25:11   America/New_York

    LOWELL, Mass., July 23, 2024 (GLOBE NEWSWIRE) -- Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended June 30, 2024. Net income amounted to $9.5 million, or $0.77 per diluted common share, for the three months ended June 30, 2024 compared to $8.5 million, or $0.69 per diluted common share, for the three months ended March 31, 2024 and $9.7 million, or $0.79 per diluted common share, for the three months ended June 30, 2023.

    Selected financial results at or for the quarter ended June 30, 2024 compared to March 31, 2024 were as follows:

    • The returns on average assets and average equity were 0.82% and 11.55%, respectively.
    • Tax-equivalent net interest margin (non-GAAP) ("net interest margin") was 3.19%, a decrease of 1 basis point.
    • Net interest income increased 2.8%.
    • Total loans and total deposits increased 3.1% and 3.5%, respectively.
    • Wealth assets under management and administration amounted to $1.40 billion, an increase of 1.7%.

    Chief Executive Officer Steven Larochelle commented, "We had a solid second quarter with strong net income and loan growth funded through core deposits. Higher deposit costs and the inverted yield curve continue to be a headwind, but net interest margin was stable at 3.19%. Our liquidity position was favorable at June 30, 2024 with the loan to deposit ratio at 89% and interest-earning deposits with banks exceeding wholesale funding by $89.6 million. Credit quality remained strong with nominal charge-offs year-to-date."

    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 thank Jack Clancy, who retired as Chief Executive Officer of the Company and the Bank on June 7, 2024, for his valuable contributions over the past 35 years. Steve Larochelle, who succeeded Jack as Chief Executive Officer, has been a key member of our leadership team for the past 27 years, including the last 15 years as our Chief Banking Officer. Steve has been a significant contributor to our success and has handled a wide range of leadership responsibilities including the areas of commercial lending, cash management, wealth management, mortgage services, and branch operations. Steve is a great champion of our culture and takes pride in strong relationships with our customers and communities. He is the perfect person for our Chief Executive Officer role, and I am excited to have him lead us forward."

    President Richard W. Main added, "I echo George's comments on Steve's leadership experience and on his commitment to our culture. We pride ourselves on understanding the unique needs of each customer and offering tailored solutions that lead to long-term relationships. The strength and depth of the relationships we have developed with our customers are a testament to our unwavering commitment to their success, which in turn has contributed to our history of consistent growth."

    Net Interest Income

    Net interest income for the three months ended June 30, 2024, amounted to $36.2 million, a decrease of $1.9 million, or 5%, compared to the three months ended June 30, 2023. The decrease was due primarily to an increase in deposit interest expense of $9.5 million and a decrease in interest and dividend income on investments of $1.0 million, partially offset by an increase in loan interest income of $9.4 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 3.19% for the three months ended June 30, 2024, compared to 3.20% for the three months ended March 31, 2024 and 3.55% for the three months ended June 30, 2023.

    Asset yields for the second quarter of 2024 were 5.01% and increased 12 basis points compared to the first quarter of 2024, due primarily to new loan originations, loan 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 $100.3 million, or 3%, and average other interest-earning assets increased $37.8 million, or 44%, during the period.

    The cost of funds for the second quarter of 2024 was 1.94% and increased 12 basis points compared to the first quarter of 2024. During the second quarter of 2024, average total deposits increased $129.2 million, or 3%, and the cost of deposits increased 13 basis points. The average balance of lower cost checking accounts increased $33.4 million, or 2%, and the average balance of higher cost savings, money market and certificate of deposit accounts increased $95.9 million, or 5%.

    Provision for Credit Losses

    The provision for credit losses for the three-month periods ended June 30, 2024 and June 30, 2023 are presented below:

      Three months ended Increase / (Decrease)

    (Dollars in thousands) June 30,
    2024
     June 30,
    2023
    Provision for credit losses on loans - collectively evaluated $(230) $2,210  $(2,440)
    Provision for credit losses on loans - individually evaluated  1,358   (167)  1,525 
    Provision for credit losses for loans  1,128   2,043   (915)
           
    Provision for unfunded commitments  (991)  225   (1,216)
           
    Provision for credit losses $137  $2,268  $(2,131)
     

    The decrease in the provision for credit losses on loans of $915 thousand was due primarily to the impact of a reduction in recession risk within our allowance for credit loss ("ACL") model, partially offset by an increase in reserves on individually evaluated loans. The reduction in the provision for unfunded commitments of $1.2 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 June 30, 2024, amounted to $5.6 million, an increase of $2.8 million compared to the three months ended June 30, 2023. Non-interest income in the prior year period included losses on sales of debt securities of $2.4 million. Excluding this item, non-interest income for the three months ended June 30, 2024 increased 7% compared to the three months ended June 30, 2023, due primarily to increases in wealth management fees and income on bank-owned life insurance.

    Non-Interest Expense

    Non-interest expense for the three months ended June 30, 2024, amounted to $29.0 million, an increase of $3.4 million, or 13%, compared to the three months ended June 30, 2023. Non-interest expense in the prior year period was impacted by the receipt of $3.4 million in Employee Retention Credits which the Company recognized as a reduction to salary and benefits expense. Excluding this item, non-interest expense for the three months ended June 30, 2024 decreased $25 thousand compared to the three months ended June 30, 2023.

    Balance Sheet

    Total assets amounted to $4.77 billion at June 30, 2024, compared to $4.47 billion at December 31, 2023, an increase of 7%.

    Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to $151.4 million at June 30, 2024, compared to $19.1 million at December 31, 2023. The increase was due primarily to deposit inflows, partially offset by loan growth.

    Total investment securities at fair value amounted to $636.8 million at June 30, 2024, compared to $668.2 million at December 31, 2023. The decrease of 5% was largely attributable to principal pay-downs, calls and maturities during the six months ended June 30, 2024. Unrealized losses on debt securities amounted to $106.2 million at June 30, 2024, compared to $102.9 million at December 31, 2023, an increase of 3%.

    Total loans amounted to $3.77 billion at June 30, 2024, compared to $3.57 billion at December 31, 2023. The increase of 6% was due primarily to an increase in commercial real estate loans of $140.1 million.

    Total deposits amounted to $4.25 billion at June 30, 2024, compared to $3.98 billion at December 31, 2023. The increase of 7% was due primarily to increases in money market and certificate of deposit balances of $101.6 million and $98.0 million, respectively.

    Total borrowed funds amounted to $61.8 million at June 30, 2024, compared to $25.8 million at December 31, 2023. The increase resulted from new term advances used to support the Company's operations.

    Total shareholders' equity amounted to $340.4 million at June 30, 2024, compared to $329.1 million at December 31, 2023. The increase of 3% was due primarily to an increase in retained earnings of $12.1 million, partially offset by an increase in the accumulated other comprehensive loss of $2.5 million.

    Credit Quality

    Selected credit quality metrics at June 30, 2024, compared to December 31, 2023, were as follows:

    • The ACL for loans amounted to $62.0 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 $4.9 million, compared to $7.1 million.
    • Non-performing loans amounted to $17.7 million, or 0.47% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase in non-performing loans resulted primarily from one individually evaluated commercial construction loan which was placed on non-accrual in the first quarter of 2024.

    Net recoveries amounted to $130 thousand for the three months ended June 30, 2024, compared to net charge-offs of $146 thousand for the three months ended June 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 $1.40 billion at June 30, 2024, an increase of $76.6 million, or 6%, compared to December 31, 2023, and resulted primarily from an increase in market value.

    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 139 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 continuation of 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 continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the current inflationary pressures, or the resurgence of elevated levels of inflation, 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 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; 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) June 30,
    2024
     December 31,
    2023
     June 30,
    2023
    Assets      
    Cash and cash equivalents:      
    Cash and due from banks $48,352  $37,443  $49,996 
    Interest-earning deposits with banks  151,367   19,149   208,829 
    Total cash and cash equivalents  199,719   56,592   258,825 
    Investments:      
    Debt securities at fair value (amortized cost of $734,523, $763,981 and $820,004, respectively)  628,314   661,113   706,953 
    Equity securities at fair value  8,524   7,058   5,898 
    Total investment securities at fair value  636,838   668,171   712,851 
    Federal Home Loan Bank stock  2,482   2,402   2,404 
    Loans held for sale     200    
    Loans:      
    Total loans  3,768,649   3,567,631   3,345,667 
    Allowance for credit losses  (61,999)  (58,995)  (56,899)
    Net loans  3,706,650   3,508,636   3,288,768 
    Premises and equipment, net  44,209   44,931   43,603 
    Lease right-of-use asset  24,469   24,820   24,578 
    Accrued interest receivable  20,343   19,233   16,885 
    Deferred income taxes, net  48,619   49,166   48,875 
    Bank-owned life insurance  66,381   65,455   64,779 
    Prepaid income taxes  4,806   1,589   2,790 
    Prepaid expenses and other assets  13,509   19,183   32,330 
    Goodwill  5,656   5,656   5,656 
    Total assets $4,773,681  $4,466,034  $4,502,344 
    Liabilities and Shareholders'Equity      
    Liabilities      
    Deposits $4,248,801  $3,977,521  $4,075,598 
    Borrowed funds  61,785   25,768   3,334 
    Subordinated debt  59,657   59,498   59,340 
    Lease liability  24,157   24,441   24,148 
    Accrued expenses and other liabilities  30,546   45,011   29,161 
    Accrued interest payable  8,294   4,678   3,273 
    Total liabilities  4,433,240   4,136,917   4,194,854 
    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; 12,424,407, 12,272,674 and 12,244,733 shares issued and outstanding, respectively.  124   123   122 
    Additional paid-in capital  109,137   107,377   105,552 
    Retained earnings  313,486   301,380   289,409 
    Accumulated other comprehensive loss  (82,306)  (79,763)  (87,593)
    Total shareholders' equity  340,441   329,117   307,490 
    Total liabilities and shareholders' equity $4,773,681  $4,466,034  $4,502,344 


    ENTERPRISE BANCORP, INC.
    Consolidated Statements of Income
    (unaudited)
     
      Three months ended Six months ended
    (Dollars in thousands, except per share data) June 30,
    2024
     March 31,
    2024
     June 30,
    2023
     June 30,
    2024
     June 30,
    2023
    Interest and dividend income:          
    Other interest-earning assets $1,697  $1,172  $1,917  $2,869  $4,125 
    Investment securities  3,943   4,034   4,967   7,977   10,040 
    Loans and loans held for sale  51,224   48,817   41,798   100,041   81,354 
    Total interest and dividend income  56,864   54,023   48,682   110,887   95,519 
    Interest expense:          
    Deposits  19,172   17,272   9,692   36,444   15,679 
    Borrowed funds  664   694   30   1,358   42 
    Subordinated debt  867   867   867   1,734   1,734 
    Total interest expense  20,703   18,833   10,589   39,536   17,455 
    Net interest income  36,161   35,190   38,093   71,351   78,064 
    Provision for credit losses  137   622   2,268   759   5,004 
    Net interest income after provision for credit losses  36,024   34,568   35,825   70,592   73,060 
    Non-interest income:          
    Wealth management fees  1,970   1,850   1,673   3,820   3,260 
    Deposit and interchange fees  2,284   2,069   2,295   4,353   4,343 
    Income on bank-owned life insurance, net  503   458   316   961   623 
    Net losses on sales of debt securities        (2,419)     (2,419)
    Net gains on sales of loans  44   22   6   66   20 
    Gains on equity securities  101   465   189   566   173 
    Other income  726   631   759   1,357   1,576 
    Total non-interest income  5,628   5,495   2,819   11,123   7,576 
    Non-interest expense:          
    Salaries and employee benefits  19,675   19,176   16,135   38,851   34,656 
    Occupancy and equipment expenses  2,406   2,459   2,505   4,865   5,006 
    Technology and telecommunications expenses  2,658   2,745   2,636   5,403   5,311 
    Advertising and public relations expenses  674   743   804   1,417   1,485 
    Audit, legal and other professional fees  711   734   782   1,445   1,422 
    Deposit insurance premiums  862   859   615   1,721   1,290 
    Supplies and postage expenses  240   237   247   477   502 
    Other operating expenses  1,803   1,955   1,899   3,758   3,991 
    Total non-interest expense  29,029   28,908   25,623   57,937   53,663 
    Income before income taxes  12,623   11,155   13,021   23,778   26,973 
    Provision for income taxes  3,111   2,648   3,337   5,759   6,521 
    Net income $9,512  $8,507  $9,684  $18,019  $20,452 
               
    Basic earnings per common share $0.77  $0.69  $0.79  $1.46  $1.68 
    Diluted earnings per common share $0.77  $0.69  $0.79  $1.46  $1.67 
               
    Basic weighted average common shares outstanding  12,389,917   12,292,417   12,228,081   12,341,630   12,191,857 
    Diluted weighted average common shares outstanding  12,394,463   12,304,203   12,244,863   12,349,573   12,218,735 



    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,
    2024
     March 31,
    2024
     December 31,
    2023
     September 30,
    2023
     June 30,
    2023
    Balance Sheet Data          
    Total cash and cash equivalents $199,719  $147,834  $56,592  $225,421  $258,825 
    Total investment securities at fair value  636,838   652,026   668,171   678,932   712,851 
    Total loans  3,768,649   3,654,322   3,567,631   3,404,014   3,345,667 
    Allowance for credit losses  (61,999)  (60,741)  (58,995)  (57,905)  (56,899)
    Total assets  4,773,681   4,624,015   4,466,034   4,482,374   4,502,344 
    Total deposits  4,248,801   4,106,119   3,977,521   4,060,403   4,075,598 
    Borrowed funds  61,785   63,246   25,768   4,290   3,334 
    Subordinated debt  59,657   59,577   59,498   59,419   59,340 
    Total shareholders' equity  340,441   333,439   329,117   299,699   307,490 
    Total liabilities and shareholders' equity  4,773,681   4,624,015   4,466,034   4,482,374   4,502,344 
               
    Wealth Management          
    Wealth assets under management $1,129,147  $1,105,036  $1,077,761  $984,647  $1,009,386 
    Wealth assets under administration $267,529  $268,074  $242,338  $211,046  $214,116 
               
    Shareholders' Equity Ratios          
    Book value per common share $27.40  $26.94  $26.82  $24.45  $25.11 
    Dividends paid per common share $0.24  $0.24  $0.23  $0.23  $0.23 
               
    Regulatory Capital Ratios          
    Total capital to risk weighted assets  13.07%  13.20%  13.12%  13.45%  13.37%
    Tier 1 capital to risk weighted assets(1)  10.34%  10.43%  10.34%  10.61%  10.52%
    Tier 1 capital to average assets  8.76%  8.85%  8.74%  8.59%  8.62%
               
    Credit Quality Data          
    Non-performing loans $17,731  $18,527  $11,414  $11,656  $7,647 
    Non-performing loans to total loans  0.47%  0.51%  0.32%  0.34%  0.23%
    Non-performing assets to total assets  0.37%  0.40%  0.26%  0.26%  0.17%
    ACL for loans to total loans  1.65%  1.66%  1.65%  1.70%  1.70%
    Net (recoveries) charge-offs $(130) $122  $15  $(12) $146 
               
    Income Statement Data          
    Net interest income $36,161  $35,190  $36,518  $38,502  $38,093 
    Provision for credit losses  137   622   2,493   1,752   2,268 
    Total non-interest income  5,628   5,495   5,547   4,486   2,819 
    Total non-interest expense  29,029   28,908   28,224   28,312   25,623 
    Income before income taxes  12,623   11,155   11,348   12,924   13,021 
    Provision for income taxes  3,111   2,648   3,441   3,225   3,337 
    Net income $9,512  $8,507  $7,907  $9,699  $9,684 
               
    Income Statement Ratios          
    Diluted earnings per common share $0.77  $0.69  $0.64  $0.79  $0.79 
    Return on average total assets  0.82%  0.75%  0.69%  0.85%  0.88%
    Return on average shareholders' equity  11.55%  10.47%  10.21%  12.53%  12.63%
    Net interest margin (tax-equivalent)(2)  3.19%  3.20%  3.29%  3.46%  3.55%


    (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) June 30,
    2024
     March 31,
    2024
     December 31,
    2023
     September 30,
    2023
     June 30,
    2023
    Commercial real estate $2,204,864  $2,159,594  $2,064,737  $2,032,458  $2,009,263 
    Commercial and industrial  426,976   417,604   430,749   425,334   420,095 
    Commercial construction  622,094   583,711   585,113   501,179   487,018 
    Total commercial loans  3,253,934   3,160,909   3,080,599   2,958,971   2,916,376 
               
    Residential mortgages  413,323   400,093   393,142   362,514   346,523 
    Home equity loans and lines  93,220   85,144   85,375   74,433   74,374 
    Consumer  8,172   8,176   8,515   8,096   8,394 
    Total retail loans  514,715   493,413   487,032   445,043   429,291 
    Total loans  3,768,649   3,654,322   3,567,631   3,404,014   3,345,667 
               
    ACL for loans  (61,999)  (60,741)  (58,995)  (57,905)  (56,899)
    Net loans $3,706,650  $3,593,581  $3,508,636  $3,346,109  $3,288,768 


    Deposits are summarized as follows as of the periods indicated:

    (Dollars in thousands) June 30,
    2024
     March 31,
    2024
     December 31,
    2023
     September 30,
    2023
     June 30,
    2023
    Non-interest checking $1,050,876  $1,050,608  $1,070,104  $1,130,732  $1,273,968 
    Interest-bearing checking  788,822   730,819   697,632   727,817   701,701 
    Savings  285,461   273,369   285,770   290,363   310,321 
    Money market  1,504,551   1,469,181   1,402,939   1,434,036   1,373,816 
    CDs $250,000 or less  358,149   337,367   295,789   262,975   244,114 
    CDs greater than $250,000  260,942   244,775   225,287   214,480   171,678 
    Deposits $4,248,801  $4,106,119  $3,977,521  $4,060,403  $4,075,598 



    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 June 30, 2024 Three Months Ended March 31, 2024 Three months ended June 30, 2023
    (Dollars in thousands) Average
    Balance
     Interest(1) Average
    Yield(1)
     Average
    Balance
     Interest(1) Average
    Yield(1)
     Average
    Balance
     Interest(1) Average
    Yield(1)
    Assets:                  
    Other interest-earning assets(2) $123,887  $1,697   5.51% $86,078  $1,172   5.48% $155,934  $1,917   4.93%
    Investment securities(3)(tax-equivalent)  750,822   4,057   2.16%  763,692   4,157   2.18%  917,965   5,189   2.26%
    Loans and loans held for sale(4)(tax-equivalent)  3,708,485   51,366   5.57%  3,608,157   48,960   5.46%  3,268,586   41,930   5.14%
    Total interest-earnings assets (tax-equivalent)  4,583,194   57,120   5.01%  4,457,927   54,289   4.89%  4,342,485   49,036   4.53%
    Other assets  96,991       91,794       92,909     
    Total assets $4,680,185      $4,549,721      $4,435,394     
                       
    Liabilities and stockholders' equity:                  
    Non-interest checking $1,054,932       $1,069,145       $1,269,339      
    Interest checking, savings and money market  2,510,155   12,381   1.98%  2,418,947   11,356   1.89%  2,351,011   6,880   1.17%
    CDs  601,339   6,791   4.54%  549,097   5,916   4.33%  393,387   2,812   2.87%
    Total deposits  4,166,426   19,172   1.85%  4,037,189   17,272   1.72%  4,013,737   9,692   0.97%
    Borrowed funds  62,513   664   4.27%  63,627   694   4.38%  4,595   30   2.58%
    Subordinated debt(5)  59,609   867   5.82%  59,530   867   5.82%  59,293   867   5.85%
    Total funding liabilities  4,288,548   20,703   1.94%  4,160,346   18,833   1.82%  4,077,625   10,589   1.04%
    Other liabilities  60,270       62,500       50,113     
    Total liabilities  4,348,818       4,222,846       4,127,738     
    Stockholders' equity  331,367       326,875       307,656     
    Total liabilities and stockholders' equity $4,680,185      $4,549,721      $4,435,394     
                       
    Net interest-rate spread (tax-equivalent)      3.07%      3.07%      3.49%
    Net interest income (tax-equivalent)    36,417       35,456       38,447   
    Net interest margin (tax-equivalent)      3.19%      3.20%      3.55%
    Less tax-equivalent adjustment    256       266       354   
    Net interest income   $36,161      $35,190      $38,093   
    Net interest margin      3.17%      3.17%      3.52%


    (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 FHLB 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



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