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Enterprise Bank saw earnings increase year-over-year by 26 percent, due in part to loan growth.

The Lowell-based bank had third quarter net income of $11.96 million, or $0.98 per diluted common share, compared to $9.8 million, or $0.81 per diluted common share, in the third quarter of 2021.

“Our third quarter operating results were very positive, highlighted by strong growth in net interest income during the period resulting primarily from strong loan and deposit growth of 15 percent (excluding PPP loans, non-GAAP) and 4 percent, respectively, over the last twelve months and from higher interest rates,” Enterprise CEO Jack Clancy said in the bank’s third quarter earnings statement.

Enterprise had third quarter net interest income of $39.8 million, up $3.9 million, or 11 percent, year-over year. The bank attributed the increase in part to higher loan income, not including Paycheck Protection Program income, of $6.3 million.

The bank’s net interest margin was 3.61 percent in the third quarter compared to 3.45 percent in the second quarter and 3.39 percent in the third quarter of 2021.

The bank had total loans of $3.11 billion at the end of the third quarter, up 6 percent from the end of December, when loans totaled $2.92 billion. The bank said its loan growth included $64.7 million in retained residential mortgages.

Enterprise had total assets of $4.53 billion as of Sept. 30, compared to $4.45 billion on Dec. 31, a 2 percent increase.

Customer deposits totaled $4.14 billion in the third quarter, up 4 percent, or $157.8 million, since the end of 2021.