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Lowell-based Enterprise Bank saw deposits drop by less than 1 percent during the quarter, while loans grew by 2 percent.
The bank’s deposits totaled $4.02 billion at the end of the first quarter, down $19.7 million from $4.04 billion at end of 2022. The bank did receive a large deposit of approximately $60 million during the first quarter. In its first quarter earnings statement, Enterprise Bank said this deposit resulted from a customer business transaction and could be temporary.
Enterprise Bank had a first quarter loan balance of $3.23 billion compared to $3.18 billion at end of 2022, an increase of $49.6 million. The bank said the growth was primarily in the commercial construction portfolio, which increased by $32.7 million. The commercial and industrial portfolio increased by $9.4 million, while commercial real estate went up by $8.1 million.
Enterprise Bank had first quarter net income of $10.8 million, or $0.88 per diluted common share, compared to $10.3 million, or $0.85 per diluted common share, in the first quarter of 2022.
“Our operating strategy has always been to serve our customers and communities through consistent and disciplined lending, a conservative and long-term focus, being highly responsive to our customers’ banking needs and making ongoing investments in our products, services, and people to provide the best banking options through all economic cycles,” Enterprise Bank CEO Jack Clancy said in the earnings statement.
The bank said that 36 percent of its deposits did not have FDIC insurance or collateral secured by the bank and that it has additional capacity to further use enhanced FDIC-insured products.
The bank’s total assets were $4.44 billion at the end of the first quarter, which was unchanged from Dec. 31.
“We have always sought to fund asset growth through relationship-based customer deposits and use wholesale borrowings as supplemental funding for relatively short periods of time,” George Duncan, Enterprise Bank’s executive chairman and founder, said in the statement. “This approach has served us well over time and especially now. We have a relatively high level of liquidity with significant funding capacity and are well positioned to take advantage of market opportunities in our current environment.”
