Enterprise Bancorp (EBTC) investor relations material

Executive summary

• Net income for Q1 2025 was $10.4 million ($0.84 per diluted share), up from $8.5 million ($0.69 per share) in Q1 2024, driven by higher net interest income and lower provision for credit losses, but down from $10.7 million ($0.86) sequentially.

• Total assets grew to $4.90 billion, up 2% from December 31, 2024, mainly due to a $66.7 million increase in loans, especially commercial real estate.

• Total deposits rose 3% to $4.30 billion, with brokered deposits increasing by $150 million, while customer deposits declined by $37 million.

• Shareholders approved a merger with Independent Bank Corp. (Rockland Trust), expected to close in the second half of 2025.

• Loan growth was 1.7% sequentially and 11% year-over-year, supporting a 10% increase in net interest income.

Financial highlights

• Net interest income increased 10% year-over-year to $38.7 million, with net interest margin rising to 3.32% from 3.20%.

• Provision for credit losses decreased to $331 thousand from $622 thousand, aided by the sale of non-performing loans and improved credit quality.

• Non-interest income was $5.2 million, down 6% year-over-year due to lower gains on equity securities, partially offset by higher wealth management fees.

• Non-interest expense rose 4% to $29.9 million, mainly from higher salaries and merger-related costs.

• Book value per share increased to $30.80, and total shareholders' equity rose 7% to $385.4 million.

Outlook and guidance

• The proposed merger with Independent Bank Corp. (Rockland Trust) is expected to close in the second half of 2025, pending regulatory approvals, with integration planning underway.

• Management expects continued focus on commercial lending and prudent risk management amid economic and industry uncertainties.

• Forward-looking statements highlight risks from the merger process, economic conditions, interest rates, and regulatory factors.