• Enterprise Bancorp, Inc. Announces Third Quarter Financial Results

    Источник: Nasdaq GlobeNewswire / 24 окт 2023 15:05:17   America/Chicago

    LOWELL, Mass., Oct. 24, 2023 (GLOBE NEWSWIRE) -- Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended September 30, 2023. Net income amounted to $9.7 million, or $0.79 per diluted common share, for the three months ended September 30, 2023, compared to $12.0 million, or $0.98, for the three months ended September 30, 2022 and $9.7 million, or $0.79, for the three months ended June 30, 2023.

    Selected financial results at or for the three months ended September 30, 2023, were as follows:

    • The return on average assets and average equity were 0.85% and 12.53%, respectively.
    • Tax-equivalent net interest margin (non-GAAP) was 3.46%.
    • Total loans increased 2% compared to June 30, 2023, and 9% compared to September 30, 2022.
    • Total deposits decreased 0.4% compared to June 30, 2023, and 2% compared to September 30, 2022.
    • Overnight and short-term investments (interest-earning deposits with banks) amounted to $180.1 million.
    • There were no brokered deposits and only $4.3 million in borrowed funds.

    Chief Executive Officer Jack Clancy commented, "We are pleased with our third quarter results. Liquidity remained favorable and loan growth has been solid and consistent. While increasing funding costs remain a challenge, we continue to experience strong growth opportunities in our markets for our commercial lending, cash management and wealth management services."

    Executive Chairman & Founder George Duncan added, "I am pleased to highlight that on October 17th, the Company's Board of Directors declared a quarterly dividend of $0.23 per share, an increase of 12% over the prior year period. On September 7th, we were once again recognized at the Boston Business Journal's Corporate Citizenship Summit for our significant contributions in employee volunteerism and corporate philanthropy. In particular, I am very proud that we ranked 2nd in the state of Massachusetts for the highest average volunteer hours per employee."

    Net Interest Income

    Net interest income for the three months ended September 30, 2023, amounted to $38.5 million, a decrease of $1.3 million, or 3%, compared to the three months ended September 30, 2022. The decrease was due largely to an increase in deposit interest expense of $11.4 million which resulted from continued market interest rate increases and a change in deposit mix, partially offset by increases in loan interest income of $9.2 million and other interest-earning asset income of $1.4 million.

    Net Interest Margin

    The decrease in net interest margin over the respective periods was due primarily to an increase in funding costs that exceeded the increase in loan yields. During the periods, the cost of deposits increased from higher market and competitor interest rates and from a change in mix as deposits migrated from lower yielding checking and savings products into higher yielding money market and certificate of deposit products.

    Three months ended – September 30, 2023, compared to June 30, 2023

    Tax-equivalent net interest margin ("net interest margin") was 3.46% for the three months ended September 30, 2023, compared to 3.55% for the three months ended June 30, 2023.

    Net interest margin compared to the prior quarter was impacted by the following factors:

    • Average interest-earning deposits with banks increased $104.5 million, or 68%, and the yield increased 40 basis points.
    • Average debt securities decreased $98.1 million, or 11%, and the tax-equivalent yield decreased 9 basis points.
    • Average loan balances increased $104.2 million, or 3%, and the tax-equivalent yield increased 11 basis points.
    • Average total deposits increased $94.1 million, or 2%, and the yield increased 27 basis points.

    Three months ended – September 30, 2023, compared to September 30, 2022

    Net interest margin was 3.46% for the three months ended September 30, 2023, compared to 3.61% for the three months ended September 30, 2022.

    Net interest margin compared to the prior year quarter was impacted by the following factors:

    • Average interest-earning deposits with banks decreased $114.8 million, or 31%, while the yield increased 308 basis points.
    • Average debt securities decreased $136.8 million, or 14%, while the tax-equivalent yield increased 10 basis points.
    • Average loan balances increased $286.9 million, or 9%, and the tax-equivalent yield increased 69 basis points.
    • Average total deposits decreased $8.6 million, while the yield increased 110 basis points.

    Provision for Credit Losses

    The provision for credit losses for the three months ended September 30, 2023, amounted to $1.8 million, compared to $1.0 million for the three months ended September 30, 2022. The provision expense for the third quarter of 2023 resulted primarily from an increase in reserves for individually evaluated loans and, to a lesser extent, growth in the Company's loan portfolio and off-balance sheet commitments, partially offset by the impact of a reduction in general reserve loss factors in our allowance for credit loss ("ACL") model related primarily to an improvement in the economic forecast relative to the prior quarter. The ACL for loans to total loans ratio was 1.70% at September 30, 2023 compared to 1.65% at September 30, 2022.

    Non-Interest Income

    Non-interest income for the three months ended September 30, 2023, amounted to $4.5 million, a decrease of $39 thousand, or 1%, compared to the three months ended September 30, 2022. There were no individually significant changes in non-interest income during the period when compared to the prior year period.

    Non-Interest Expense

    Non-interest expense for the three months ended September 30, 2023, amounted to $28.3 million, an increase of $775 thousand, or 3%, compared to the three months ended September 30, 2022. The increase was due primarily to increases in salary and employee benefits of $244 thousand, occupancy and equipment expenses of $230 thousand and deposit insurance premiums of $263 thousand.

    Income Taxes

    The effective tax rate was 25.0% and 24.1% for the three months ended September 30, 2023 and 2022, respectively. The difference resulted primarily from an increase in state taxes including a transfer of funds from the Bank's investment subsidiary corporations.

    Balance Sheet

    Total assets amounted to $4.48 billion at September 30, 2023, compared to $4.44 billion at December 31, 2022, an increase of $44.0 million, or 1%.

    Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to $180.1 million at September 30, 2023, compared to $230.7 million at December 31, 2022. The decrease of $50.6 million, or 22%, was related primarily to funding loan growth.

    Total investment securities at fair value amounted to $678.9 million at September 30, 2023, compared to $820.4 million at December 31, 2022. The decrease of $141.4 million, or 17%, was attributable principally to sales of debt securities of $84.8 million and principal pay-downs, calls and maturities of $46.3 million. At September 30, 2023, unrealized losses on debt securities amounted to $133.2 million and Management determined that no ACL for available-for-sale securities was necessary.

    Total loans amounted to $3.40 billion at September 30, 2023, compared to $3.18 billion at December 31, 2022. The increase of $223.5 million, or 7%, was primarily in commercial real estate of $111.0 million, or 6%, and commercial construction of $77.1 million, or 18%.

    Total deposits amounted to $4.06 billion at September 30, 2023, compared to $4.04 billion at December 31, 2022, an increase of $24.6 million, or 1%. The Company has experienced a shift in deposit mix at September 30, 2023, compared to December 31, 2022, resulting from customers moving funds out of lower yielding checking and savings products (which together, have decreased 9%) into higher yielding money market and certificate of deposit products (which together, have increased 15%).

    Shareholders' Equity

    Total shareholders' equity amounted to $299.7 million at September 30, 2023, compared to $282.3 million at December 31, 2022. The increase of $17.4 million, or 6%, was due primarily to an increase in retained earnings, partially offset by an increase in the accumulated other comprehensive loss.

    Credit Quality

    Selected credit quality metrics at September 30, 2023, compared to December 31, 2022, are as follows:

    • The ACL for loans amounted to $57.9 million, or 1.70% of total loans, compared to $52.6 million, or 1.66% of total loans.
    • The reserve for unfunded commitments (included in other liabilities) amounted to $5.7 million compared to $4.3 million.
    • Non-performing loans amounted to $11.7 million, or 0.34% of total loans, compared to $6.1 million, or 0.19% of total loans. The increase resulted primarily from one commercial relationship which also accounted for the increase in reserves for individually evaluated loans noted above.

    Wealth Management

    Wealth assets are not carried as assets on the Company's consolidated balance sheets.

    Wealth assets under management amounted to $984.6 million at September 30, 2023. The increase of $93.2 million, or 10%, compared to December 31, 2022 resulted primarily from an increase in market values, and to a lesser extent, net asset growth attracted through new and expanded client relationships.

    Wealth assets under administration amounted to $211.0 million at September 30, 2023 an increase of $12.5 million, or 6%, compared to December 31, 2022.

    Supplemental Information

    All balances and ratios presented in this section are at September 30, 2023 unless otherwise indicated.

    Liquidity & Funding Capacity

    • Overnight and short-term investments amounted to $180.1 million.
    • FHLB and Federal Reserve Bank of Boston secured borrowing capacity amounted to $1.2 billion.
    • The Company has several brokered deposit relationships (unsecured borrowings) which management estimated could provide an additional $800.0 million in funding capacity.

    Deposit Information

    • Uninsured deposits amounted to 35% of total deposits.
    • Deposit balances that utilize third party enhanced Federal Deposit Insurance Corporation ("FDIC") insured products amounted to $815.0 million.
    • Additional capacity to utilize these enhanced FDIC insured products exceeds the Company's total deposits balance.

    About Enterprise Bancorp, Inc.
    Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 136 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company's headquarters and Enterprise Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company's primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.

    Forward-Looking Statements
    This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "will," "should," "could," "plan," and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from recent bank failures and any continuation of the recent uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; changes in market interest rates; the persistence of the current inflationary environment in our market areas and the United States; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; the effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or security breaches; severe weather, natural disasters, acts of war or terrorism or other external events; regulatory considerations; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the receipt of required regulatory approvals; changes in tax laws; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

     
    ENTERPRISE BANCORP, INC.
    Consolidated Balance Sheets
    (unaudited)
     
    (Dollars in thousands, except per share data) September 30,
    2023
     December 31,
    2022
    Assets    
    Cash and cash equivalents:    
    Cash and due from banks $45,345  $36,901 
    Interest-earning deposits with banks  180,076   230,688 
    Total cash and cash equivalents  225,421   267,589 
    Investments:    
    Debt securities at fair value (amortized cost of $806,077 and $940,227, respectively)  672,894   816,102 
    Equity securities at fair value  6,038   4,269 
    Total investment securities at fair value  678,932   820,371 
    Federal Home Loan Bank stock  2,403   2,343 
    Loans:    
    Total loans  3,404,014   3,180,518 
    Allowance for credit losses  (57,905)  (52,640)
    Net loans  3,346,109   3,127,878 
    Premises and equipment, net  43,391   44,228 
    Lease right-of-use asset  24,979   24,923 
    Accrued interest receivable  18,572   17,117 
    Deferred income taxes, net  55,080   51,981 
    Bank-owned life insurance  65,106   64,156 
    Prepaid income taxes  2,548   683 
    Prepaid expenses and other assets  14,177   11,408 
    Goodwill  5,656   5,656 
    Total assets $4,482,374  $4,438,333 
    Liabilities and Shareholders' Equity    
    Liabilities    
    Deposits $4,060,403  $4,035,806 
    Borrowed funds  4,290   3,216 
    Subordinated debt  59,419   59,182 
    Lease liability  24,589   24,415 
    Accrued expenses and other liabilities  31,288   31,442 
    Accrued interest payable  2,686   2,005 
    Total liabilities  4,182,675   4,156,066 
    Commitments and Contingencies    
    Shareholders' Equity    
    Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued      
    Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,256,964 and 12,133,516 shares issued and outstanding, respectively  123   121 
    Additional paid-in capital  106,451   103,793 
    Retained earnings  296,291   274,560 
    Accumulated other comprehensive loss  (103,166)  (96,207)
    Total shareholders' equity  299,699   282,267 
    Total liabilities and shareholders' equity $4,482,374  $4,438,333 


     
    ENTERPRISE BANCORP, INC.
    Consolidated Statements of Income
    (unaudited)
     
      Three months ended Nine months ended
      September 30, September 30,
    (Dollars in thousands, except per share data)  2023   2022   2023   2022 
    Interest and dividend income:        
    Loans and loans held for sale $44,501  $35,306  $125,855  $98,149 
    Investment securities  4,316   4,728   14,356   14,097 
    Other interest-earning assets  3,468   2,068   7,593   2,642 
    Total interest and dividend income  52,285   42,102   147,804   114,888 
    Interest expense:        
    Deposits  12,889   1,460   28,568   2,731 
    Borrowed funds  28   13   70   39 
    Subordinated debt  866   850   2,600   2,485 
    Total interest expense  13,783   2,323   31,238   5,255 
    Net interest income  38,502   39,779   116,566   109,633 
    Provision for credit losses  1,752   1,000   6,756   3,939 
    Net interest income after provision for credit losses  36,750   38,779   109,810   105,694 
    Non-interest income:        
    Wealth management fees  1,673   1,626   4,933   4,965 
    Deposit and interchange fees  1,987   2,045   6,330   5,847 
    Income on bank-owned life insurance, net  327   303   950   893 
    Net (losses) gains on sales of debt securities        (2,419)  1,062 
    Net gains on sales of loans  14   8   34   30 
    Losses on equity securities  (181)  (193)  (8)  (688)
    Other income  666   736   2,242   2,143 
    Total non-interest income  4,486   4,525   12,062   14,252 
    Non-interest expense:        
    Salaries and employee benefits  19,159   18,915   53,815   53,450 
    Occupancy and equipment expenses  2,433   2,203   7,439   6,982 
    Technology and telecommunications expenses  2,626   2,599   7,937   8,154 
    Advertising and public relations expenses  592   510   2,077   1,737 
    Audit, legal and other professional fees  735   693   2,157   2,078 
    Deposit insurance premiums  654   391   1,944   1,313 
    Supplies and postage expenses  251   219   753   663 
    Other operating expenses  1,862   2,007   5,853   5,770 
    Total non-interest expense  28,312   27,537   81,975   80,147 
    Income before income taxes  12,924   15,767   39,897   39,799 
    Provision for income taxes  3,225   3,805   9,746   9,389 
    Net income $9,699  $11,962  $30,151  $30,410 
             
    Basic earnings per common share $0.79  $0.99  $2.47  $2.51 
    Diluted earnings per common share $0.79  $0.98  $2.46  $2.50 
             
    Basic weighted average common shares outstanding  12,247,892   12,119,348   12,210,740   12,094,613 
    Diluted weighted average common shares outstanding  12,264,778   12,156,695   12,233,861   12,143,468 


     
    ENTERPRISE BANCORP, INC.
    Selected Consolidated Financial Data and Ratios
    (unaudited)
     
      At or for the three months ended
    (Dollars in thousands, except per share data) September 30,
    2023
     June 30,
    2023
     March 31,
    2023
     December 31,
    2022
     September 30,
    2022
    Balance Sheet Data          
    Total cash and cash equivalents $225,421  $258,825  $215,693  $267,589  $413,688 
    Total investment securities at fair value  678,932   712,851   830,895   820,371   831,030 
    Total loans  3,404,014   3,345,667   3,230,156   3,180,518   3,109,369 
    Allowance for credit losses  (57,905)  (56,899)  (55,002)  (52,640)  (51,211)
    Total assets  4,482,374   4,502,344   4,441,896   4,438,333   4,529,820 
    Total deposits  4,060,403   4,075,598   4,016,156   4,035,806   4,138,038 
    Subordinated debt  59,419   59,340   59,261   59,182   59,102 
    Total shareholders' equity  299,699   307,490   311,318   282,267   272,193 
    Total liabilities and shareholders' equity  4,482,374   4,502,344   4,441,896   4,438,333   4,529,820 
               
    Wealth Management          
    Wealth assets under management $984,647  $1,009,386  $930,714  $891,451  $835,661 
    Wealth assets under administration $211,046  $214,116  $206,569  $198,586  $185,977 
               
    Shareholders' Equity Ratios          
    Book value per common share $24.45  $25.11  $25.47  $23.26  $22.44 
    Dividends paid per common share $0.230  $0.230  $0.230  $0.205  $0.205 
               
    Regulatory Capital Ratios          
    Total capital to risk weighted assets  13.41%  13.37%  13.55%  13.49%  13.49%
    Tier 1 capital to risk weighted assets(1)  10.58%  10.52%  10.64%  10.56%  10.52%
    Tier 1 capital to average assets  8.59%  8.62%  8.47%  8.10%  7.89%
               
    Credit Quality Data          
    Non-performing loans $11,656  $7,647  $7,532  $6,122  $5,717 
    Non-performing loans to total loans  0.34%  0.23%  0.23%  0.19%  0.18%
    Non-performing assets to total assets  0.26%  0.17%  0.17%  0.14%  0.13%
    ACL for loans to total loans  1.70%  1.70%  1.70%  1.66%  1.65%
    Net charge-offs (recoveries) $(12) $146  $(44) $166  $52 
               
    Income Statement Data          
    Net interest income $38,502  $38,093  $39,971  $42,165  $39,779 
    Provision for credit losses  1,752   2,268   2,736   1,861   1,000 
    Total non-interest income  4,486   2,819   4,757   4,210   4,525 
    Total non-interest expense  28,312   25,623   28,040   28,167   27,537 
    Income before income taxes  12,924   13,021   13,952   16,347   15,767 
    Provision for income taxes  3,225   3,337   3,184   4,041   3,805 
    Net income $9,699  $9,684  $10,768  $12,306  $11,962 
               
    Income Statement Ratios          
    Diluted earnings per common share $0.79  $0.79  $0.88  $1.01  $0.98 
    Return on average total assets  0.85%  0.88%  0.99%  1.08%  1.05%
    Return on average shareholders' equity  12.53%  12.63%  14.67%  18.08%  16.47%
    Net interest margin (tax-equivalent)(2)  3.46%  3.55%  3.76%  3.81%  3.61%


    (1)Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.
    (2)Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.
      

    ENTERPRISE BANCORP, INC.
    Consolidated Loan and Deposit Data
    (unaudited)

    Major classifications of loans at the dates indicated were as follows:

    (Dollars in thousands) September 30,
    2023
     June 30,
    2023
     March 31,
    2023
     December 31,
    2022
     September 30,
    2022
    Commercial real estate $2,032,458  $2,009,263  $1,929,544  $1,921,410  $1,886,365 
    Commercial and industrial  425,334   420,095   423,864   414,490   413,347 
    Commercial construction  501,179   487,018   456,735   424,049   396,027 
    SBA PPP              2,725 
    Total commercial loans  2,958,971   2,916,376   2,810,143   2,759,949   2,698,464 
               
    Residential mortgages  362,514   346,523   335,834   332,632   321,663 
    Home equity loans and lines  74,433   74,374   75,809   79,807   80,882 
    Consumer  8,096   8,394   8,370   8,130   8,360 
    Total retail loans  445,043   429,291   420,013   420,569   410,905 
    Total loans  3,404,014   3,345,667   3,230,156   3,180,518   3,109,369 
               
    ACL for loans  (57,905)  (56,899)  (55,002)  (52,640)  (51,211)
    Net loans $3,346,109  $3,288,768  $3,175,154  $3,127,878  $3,058,158 

    Deposits are summarized as follows as of the periods indicated:

    (Dollars in thousands) September 30,
    2023
     June 30,
    2023
     March 31,
    2023
     December 31,
    2022
     September 30,
    2022
    Non-interest checking $1,130,732 $1,273,968 $1,247,253 $1,361,588 $1,441,104
    Interest-bearing checking  727,817  701,701  641,194  678,715  719,474
    Savings  290,363  310,321  297,790  326,666  351,665
    Money market  1,434,036  1,373,816  1,454,858  1,381,645  1,395,756
    CDs $250,000 or less  262,975  244,114  222,116  187,758  163,520
    CDs greater than $250,000  214,480  171,678  152,945  99,434  66,519
    Deposits $4,060,403 $4,075,598 $4,016,156 $4,035,806 $4,138,038
                    

    ENTERPRISE BANCORP, INC.
    Consolidated Average Balance Sheets and Yields (tax-equivalent basis)
    (unaudited)

    The following table presents the Company's average balance sheets, net interest income and average rates for the periods indicated:

    (Dollars in thousands) Three months ended September 30, 2023 Three months ended June 30, 2023 Three months ended September 30, 2022
     Average
    Balance
     Interest(1) Average
    Yield(1)
     Average
    Balance
     Interest(1) Average
    Yield(1)
     Average
    Balance
     Interest(1) Average
    Yield(1)
    Assets:                  
    Loans and loans held for sale(2) (tax-equivalent) $3,372,754 $44,644 5.25% $3,268,586 $41,930 5.14% $3,085,896 $35,422 4.56%
    Investment securities(3) (tax-equivalent)  820,156  4,444 2.17%  917,965  5,189 2.26%  954,385  4,959 2.08%
    Other interest-earning assets(4)  260,475  3,468 5.28%  155,934  1,917 4.93%  375,213  2,068 2.19%
    Total interest-earnings assets (tax-equivalent)  4,453,385  52,556 4.69%  4,342,485  49,036 4.53%  4,415,494  42,449 3.82%
    Other assets  82,190      92,909      101,095    
    Total assets $4,535,575     $4,435,394     $4,516,589    
                       
    Liabilities and stockholders' equity:                  
    Interest checking, savings and money market $2,481,814  9,185 1.47% $2,351,011  6,880 1.17% $2,444,705  1,045 0.17%
    CDs  430,376  3,704 3.41%  393,387  2,812 2.87%  221,827  415 0.74%
    Borrowed funds  4,938  28 2.30%  4,595  30 2.58%  2,940  13 1.77%
    Subordinated debt(5)  59,372  866 5.84%  59,293  867 5.85%  59,052  850 5.76%
    Total interest-bearing funding  2,976,500  13,783 1.84%  2,808,286  10,589 1.51%  2,728,524  2,323 0.34%
    Non-interest checking  1,195,658      1,269,339      1,449,909    
    Total deposits, borrowed funds and subordinated debt  4,172,158  13,783 1.31%  4,077,625  10,589 1.04%  4,178,433  2,323 0.22%
    Other liabilities  56,414      50,113      50,034    
    Total liabilities  4,228,572      4,127,738      4,228,467    
    Stockholders' equity  307,003      307,656      288,122    
    Total liabilities and stockholders' equity $4,535,575     $4,435,394     $4,516,589    
                       
    Net interest-rate spread (tax-equivalent)     2.85%     3.02%     3.48%
    Net interest income (tax-equivalent)    38,773      38,447      40,126  
    Net interest margin (tax-equivalent)     3.46%     3.55%     3.61%
    Less tax-equivalent adjustment    271      354      347  
    Net interest income   $38,502     $38,093     $39,779  
    Net interest margin     3.43%     3.52%     3.58%


    (1)Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
    (2)Average loans and loans held for sale are presented at amortized cost and include non-accrual loans.
    (3)Average investments are presented at average amortized cost.
    (4)Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock.
    (5)Subordinated debt is net of average deferred debt issuance costs.
      

    Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578


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