| Enterprise Bancorp in Lowell posted double-digit gains in the second quarter, boosted by organic loan growth.
Net income for the period ended June 30 totaled $4.8 million, representing a 36 percent increase from the year ago period. Earnings per share increased 32 percent year-over-year to 45 cents per share. Net income for the six months ended June 30 increased 27 percent year-over-year to $9.1 million.
Earlier this month, the company declared a quarterly dividend of 13 cents per share to be paid out Sept. 1 to shareholders of record on Aug. 11.
Chief Executive Officer Jack Clancy commented, “The increase in our 2016 earnings compared to 2015 is largely driven by our growth over the last twelve months,” CEO Jack Clancy said in a statement.
He touted loan, asset and deposit growth of 9 percent, 12 percent and 15 percent, respectively. Clancy also said the bank’s focus is on organic growth, noting the recent opening of its 23rd branch in Nashua, N.H., and the anticipated opening of its 24th branch in Windham, N.H. next year.
Net interest income increased 11 percent year-over-year to $21.3 million, primarily due to loan growth. Average loan balances, including loans held for sale, increased $179.3 million year-over-year. Net interest margin stood at 4.02 percent in the second quarter, compared with 3.98 percent last year.
Improving credit quality and lower levels of charge-offs prompted management to decrease this quarter’s provision for loan losses, which totaled $267,000 compared with $1.2 million in the year-ago quarter.
Enterprise posted $1.9 billion in total loans at June 30, and total assets increased 12 percent year-over-year to $2.4 billion.
Total non-performing loans as a percentage of total loans declined to 0.54 percent, compared with 0.92 percent in the year-ago quarter. The balance of the allowance for loan losses allocated to impaired loans totaled $2.1 million at June 30, compared with $2.6 million last year. The balance of the allowance for loan losses allocated to non-impaired classified loans totaled $2 million at June 30, 2016, compared with $1.2 million in the year-ago period. The company recorded net recoveries of $220,000 for the six months ended June 30, compared with net charge-offs of $809,000 last year.
