Enterprise Bancorp in Lowell posted double-digit earnings in the first quarter and announced plans to raise $10 million in capital through a new stock offering.
The parent company of Enterprise Bank netted $4.3 million in net income for the period ended March 31, representing a 19 percent, or $693,000, increase over the year ago period. Earnings per share increased 17 percent year-over-year to 41 cents per share, and the company’s board of directors approved a quarterly dividend of 13 cents per share, 4 percent higher than its rate last year.
In a statement, CEO Jack Clancy touted an 11 percent increase in loans, a 14 percent increase in deposits and the anticipated opening of Enterprise Bank’s Nashua, New Hampshire branch in the second quarter. This will be Enterprise’s fourth New Hampshire branch and its 23rd location across its entire footprint.
The company also outlined a plan to raise $10 million in new capital through a common stock offering. Existing shareholders will have first rights to the stock, priced at $21.50 per share, from April 21 through May 27. After the rights offering expires, any remaining shares of common stock will be available to the public until June 10.
“Strategically, our focus remains on organic growth and continually planning for and investing in our future,” Clancy said. “This additional capital will help ensure that we are positioned to continue to take advantage of growth opportunities.”
Enterprise Bancorp increased net interest income 14 percent year-over-year to $21.1 million for the first quarter, largely due to loan growth. Average loan balances increased $181 million year-over-year. The net interest margin was 4.02 percent compared with 3.95 percent a year ago.
Enterprise increased its provision for loan losses 36 percent year-over-year to $850,000, mainly to cover additional reserves allocated to three commercial relationships that were downgraded during the quarter. Nonperforming loans made up 0.60 percent of total loans at March 31, compared with 1.07 percent last year. The company also recorded $52,000 in net recoveries during the first quarter, compared with $57,000 in net recoveries for the year-ago period.
Deposits, excluding brokered deposits, totaled $2 billion at March 31, compared with $1.91 billion at year-end 2015, an increase of $87.1 million, or 5 percent. Brokered deposits totaled $89.3 million at March 31, compared with $106.8 million at Dec. 31.
Total loans amounted to $1.86 billion at both March 31, and year-end 2015.
Investment assets under management totaled $688.3 million at March 31, compared with $678.4 million at Dec. 31, an increase of $9.9 million, or 1 percent.
Total assets under management amounted to $3.06 billion at March 31, 2016, compared to $3.04 billion at December 31, 2015, an increase of $29.0 million, or 1 percent.
Total assets increased 11 percent year-over-year to $2.3 billion.
