Enterprise Bancorp Reports $38.7 Million Net Income and Announces Merger with Independent Bank Corp

Enterprise Bancorp, Inc. reported a net income of $38.7 million, or $3.12 per diluted share, for the fiscal year ending December 31, 2024, reflecting a slight increase from the previous year's net income of $38.1 million, or $3.11 per diluted share. The company's total assets grew to $4.83 billion, up from $4.47 billion in 2023, driven by a 12% increase in total loans, which reached $3.98 billion. The net interest margin decreased to 3.23% from 3.51% in the prior year, primarily due to rising deposit interest expenses and a decrease in interest income from investments.

The year saw significant operational changes, including the announcement of a merger agreement with Independent Bank Corp. on December 8, 2024. Under the terms of the agreement, Enterprise will merge with Independent, with the transaction expected to close in the second half of 2025, pending regulatory and shareholder approvals. This strategic move aims to enhance the company's market position and expand its service offerings.

In terms of customer engagement, total deposits increased by 5% to $4.19 billion, with notable growth in certificates of deposit and money market accounts as customers shifted towards higher-yielding products. The company also reported a 16% increase in wealth assets under management, totaling $1.54 billion, indicating strong performance in its wealth management services. As of December 31, 2024, the company employed 576 full-time equivalent team members, reflecting its commitment to maintaining a robust workforce.

The filing also highlighted a decrease in the provision for credit losses, which fell to $1.99 million from $9.25 million in the previous year. This reduction was attributed to improved economic forecasts and a decrease in non-performing loans, which rose to 0.67% of total loans from 0.32% in 2023. The allowance for credit losses to total loans ratio was reported at 1.59%, down from 1.65% the previous year, indicating a stable credit risk profile.

Looking ahead, Enterprise Bancorp expressed optimism about its growth trajectory, bolstered by the anticipated merger and ongoing efforts to enhance its product offerings and market presence. The company remains focused on navigating the challenges posed by the current economic environment, including interest rate fluctuations and competitive pressures, while maintaining its commitment to customer service and community engagement.