Lowell’s Enterprise Bancorp Inc, parent of Enterprise Bank, reported net income of $1.4 million for the second quarter, compared to $1.8 million for the same period a year ago – a 22.2 percent drop, despite record-setting gains in both total loans and deposits.

Net income for the six months ended June 30 amounted to $2.9 million compared to $3.8 million for the comparable 2008 period.

Net income for both the quarter and year-to-date were impacted by a higher FDIC assessment and a jump in the provision for loan losses and non-interest expenses, partially offset by an increase in net interest income.

For the first time in the bank’s history, deposits and loans both exceeded $1 billion, the bank said.

Deposits, excluding brokered deposits, totaled $1.025 billion at the end of the quarter, an increase of $152.3 million, or 17.5 percent, since Dec. 31, 2008, representing an annualized growth rate of 35 percent. Loans outstanding totaled $1.019 billion at June 30, an increase of $70.8 million, or 7.5 percent, since Dec. 31, 2008, representing an annualized growth rate of 15 percent, according to the bank.

"The current environment continues to provide unprecedented opportunities for community banks like Enterprise, as customers are migrating from larger, national banks to local community banks, choosing to do business with professionals they know and trust and who act in their best interests," said Chief Executive Officer Jack Clancy. "We are extremely pleased with our financial results. Our net income results were very strong, particularly in light of the increase in FDIC insurance premiums as the government replenishes the insurance fund, the recent opening of three branch offices and the increase in the provision for loan losses, partly due to strong loan growth."