Loan income from the Paycheck Protection Program helped drive Enterprise Bank’s earnings up more than 50 percent compared to the same quarter last year.

The Lowell-based bank had second quarter net income of $11.1 million, or $0.92 per diluted common share, compared to $7.3 million, or $0.61 per diluted common share, in the same quarter last year. Net income in the first quarter was $10.4 million, or $0.86 per diluted common share.

For the first six months of 2021, Enterprise Bank had net income of $21.5 million, or $1.79 per diluted common share, compared to $11.3 million, or $0.95 per diluted common share, for the same period last year.

Enterprise CEO Jack Clancy said in the bank’s earnings statement that second quarter and year-to-date results were primarily driven by a growth in net interest income and a decrease in the provision for loan losses. The provision for loan losses in the second quarter was $39,000, a decrease of $2.6 million compared to the second quarter of 2020, when reserves were increased primarily because of the impact of the COVID-19 pandemic.

Along with a decrease in interest expenses, PPP loan income helped drive the increase in net interest income. Noting that Enterprise Bank has been a regional and national leader in PPP loan originations, Clancy said PPP income was $5.6 million in the second quarter and $11.6 million year to date. In the second quarter last year at the start of the program, the bank had $2.5 million in PPP loan income.

Clancy added that the growth in net interest income was partially offset by a decrease in other loan income, excluding PPP loans.

“As experienced by many banks, our net interest income, excluding PPP loan income, has declined compared to 2020 as a result of lower interest rates and low loan growth since the pandemic began,” Clancy said. “During the second quarter, our balance sheet figures continued to be impacted significantly by PPP related activity. PPP loans outstanding decreased $184.1 million in the second quarter primarily from $209.3 million in loans being forgiven by the SBA. Customer deposits, which we expect to decrease as customers spend down their PPP funds, increased $148.5 million as customers continued to maintain higher deposit balances.”

Enterprise Bank had total assets of $4.43 billion in the second quarter, up 10 percent from the end of 2020, when assets were $4.01 billion. The bank attributed the increase primarily to higher customer deposits, which helped increase the bank’s interest-earning deposits.

Total customer deposits in the second quarter were $3.89 billion, up 12 percent since Dec. 31. The bank said deposit growth was primarily due to PPP loan advances, government stimulus checks and customers maintaining higher liquidity.

Enterprise Bank had total loans of $2.95 billion in the second quarter, down from $3.07 billion at the end of 2020. During the first six months of 2021, the bank originated $207.8 million in new PPP loans and had net core loan growth of $23.3 million.

The bank had COVID-19-related payment deferrals on 17 loans, amounting to $36 million, or 1.36 percent of total core loans as of June 30. This is down from the end of March, when 29 loans totaling $38.2 million, or 1.46 percent of total core loans, had deferrals.

The bank is also making some adjustments to its branches. Enterprise’s executive chairman and founder, George Duncan, said in the earnings statement that the bank expects to open its 27th branch in the second quarter next year in Londonderry, New Hampshire. Two other branches are relocating.

“We are also proceeding on schedule with our Lawrence and Lexington, Massachusetts branch relocations,” Duncan added. “In Lawrence we are moving this September to the end unit within our existing building, where we will have a drive-up window and a drive-up ATM, which we do not have now. In Lexington we anticipate moving this October to a prime location in the downtown area where we will have dedicated parking and a vestibule for a walk-up ATM and night-time deposit drop, which we do not have now.”