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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Enterprise Bancorp Inc | NASDAQ:EBTC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.61 | 2.47% | 25.32 | 22.88 | 26.39 | 25.43 | 24.86 | 24.99 | 43,071 | 05:00:08 |
Massachusetts
|
04-3308902
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
|
|
222 Merrimack Street, Lowell, Massachusetts
|
01852
|
(Address of principal executive offices)
|
(Zip code)
|
Large accelerated filer
o
|
|
Accelerated filer
x
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Emerging growth company
o
|
|
|
Page Number
|
|
||
|
|
|
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||
|
|
|
Financial Statements
(unaudited)
|
||
|
||
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||
|
||
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||
|
||
|
||
|
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|
Item 1 -
|
Financial Statements
|
(Dollars in thousands)
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents:
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
41,172
|
|
|
$
|
40,310
|
|
Interest-earning deposits
|
|
97,161
|
|
|
14,496
|
|
||
Total cash and cash equivalents
|
|
138,333
|
|
|
54,806
|
|
||
Investment securities at fair value
|
|
422,174
|
|
|
405,206
|
|
||
Federal Home Loan Bank stock
|
|
2,618
|
|
|
5,215
|
|
||
Loans held for sale
|
|
657
|
|
|
208
|
|
||
Loans, less allowance for loan losses of $34,797 at June 30, 2018 and $32,915 at December 31, 2017
|
|
2,263,798
|
|
|
2,236,989
|
|
||
Premises and equipment, net
|
|
37,999
|
|
|
37,022
|
|
||
Accrued interest receivable
|
|
10,955
|
|
|
10,614
|
|
||
Deferred income taxes, net
|
|
13,223
|
|
|
10,751
|
|
||
Bank-owned life insurance
|
|
29,804
|
|
|
29,466
|
|
||
Prepaid income taxes
|
|
1,350
|
|
|
1,301
|
|
||
Prepaid expenses and other assets
|
|
7,396
|
|
|
20,330
|
|
||
Goodwill
|
|
5,656
|
|
|
5,656
|
|
||
Total assets
|
|
$
|
2,933,963
|
|
|
$
|
2,817,564
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Customer deposits
|
|
$
|
2,481,554
|
|
|
$
|
2,293,872
|
|
Brokered deposits
|
|
178,800
|
|
|
147,490
|
|
||
Total deposits
|
|
2,660,354
|
|
|
2,441,362
|
|
||
Borrowed funds
|
|
501
|
|
|
89,000
|
|
||
Subordinated debt
|
|
14,853
|
|
|
14,847
|
|
||
Accrued expenses and other liabilities
|
|
19,901
|
|
|
40,067
|
|
||
Accrued interest payable
|
|
777
|
|
|
478
|
|
||
Total liabilities
|
|
2,696,386
|
|
|
2,585,754
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
|
||
Stockholders' 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; 11,696,204 shares issued and outstanding at June 30, 2018 and 11,609,853 shares issued and outstanding at December 31, 2017
|
|
117
|
|
|
116
|
|
||
Additional paid-in capital
|
|
90,019
|
|
|
88,205
|
|
||
Retained earnings
|
|
154,094
|
|
|
143,073
|
|
||
Accumulated other comprehensive (loss) income
|
|
(6,653
|
)
|
|
416
|
|
||
Total stockholders' equity
|
|
237,577
|
|
|
231,810
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
2,933,963
|
|
|
$
|
2,817,564
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands, except per share data)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans and loans held for sale
|
|
$
|
27,527
|
|
|
$
|
23,281
|
|
|
$
|
53,677
|
|
|
$
|
45,652
|
|
Investment securities
|
|
2,606
|
|
|
1,964
|
|
|
5,093
|
|
|
3,884
|
|
||||
Other interest-earning assets
|
|
187
|
|
|
93
|
|
|
321
|
|
|
166
|
|
||||
Total interest and dividend income
|
|
30,320
|
|
|
25,338
|
|
|
59,091
|
|
|
49,702
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
2,837
|
|
|
1,380
|
|
|
5,073
|
|
|
2,608
|
|
||||
Borrowed funds
|
|
34
|
|
|
192
|
|
|
326
|
|
|
253
|
|
||||
Subordinated debt
|
|
231
|
|
|
231
|
|
|
459
|
|
|
459
|
|
||||
Total interest expense
|
|
3,102
|
|
|
1,803
|
|
|
5,858
|
|
|
3,320
|
|
||||
Net interest income
|
|
27,218
|
|
|
23,535
|
|
|
53,233
|
|
|
46,382
|
|
||||
Provision for loan losses
|
|
300
|
|
|
280
|
|
|
1,900
|
|
|
405
|
|
||||
Net interest income after provision for loan losses
|
|
26,918
|
|
|
23,255
|
|
|
51,333
|
|
|
45,977
|
|
||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
||||||
Investment advisory fees
|
|
1,418
|
|
|
1,267
|
|
|
2,826
|
|
|
2,492
|
|
||||
Deposit and interchange fees
|
|
1,567
|
|
|
1,522
|
|
|
3,056
|
|
|
2,862
|
|
||||
Income on bank-owned life insurance, net
|
|
170
|
|
|
177
|
|
|
338
|
|
|
353
|
|
||||
Net gains on sales of investment securities
|
|
—
|
|
|
229
|
|
|
1
|
|
|
769
|
|
||||
Net gains on sales of loans
|
|
48
|
|
|
138
|
|
|
132
|
|
|
271
|
|
||||
Other income
|
|
530
|
|
|
606
|
|
|
1,171
|
|
|
1,326
|
|
||||
Total non-interest income
|
|
3,733
|
|
|
3,939
|
|
|
7,524
|
|
|
8,073
|
|
||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
13,267
|
|
|
11,792
|
|
|
25,375
|
|
|
24,484
|
|
||||
Occupancy and equipment expenses
|
|
2,037
|
|
|
1,945
|
|
|
4,194
|
|
|
3,884
|
|
||||
Technology and telecommunications expenses
|
|
1,639
|
|
|
1,606
|
|
|
3,192
|
|
|
3,188
|
|
||||
Advertising and public relations expenses
|
|
1,112
|
|
|
797
|
|
|
1,832
|
|
|
1,416
|
|
||||
Audit, legal and other professional fees
|
|
419
|
|
|
314
|
|
|
926
|
|
|
677
|
|
||||
Deposit insurance premiums
|
|
346
|
|
|
376
|
|
|
846
|
|
|
759
|
|
||||
Supplies and postage expenses
|
|
266
|
|
|
245
|
|
|
498
|
|
|
478
|
|
||||
Other operating expenses
|
|
1,722
|
|
|
1,679
|
|
|
3,392
|
|
|
3,288
|
|
||||
Total non-interest expense
|
|
20,808
|
|
|
18,754
|
|
|
40,255
|
|
|
38,174
|
|
||||
Income before income taxes
|
|
9,843
|
|
|
8,440
|
|
|
18,602
|
|
|
15,876
|
|
||||
Provision for income taxes
|
|
2,269
|
|
|
2,845
|
|
|
4,203
|
|
|
4,709
|
|
||||
Net income
|
|
$
|
7,574
|
|
|
$
|
5,595
|
|
|
$
|
14,399
|
|
|
$
|
11,167
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$
|
0.65
|
|
|
$
|
0.48
|
|
|
$
|
1.24
|
|
|
$
|
0.97
|
|
Diluted earnings per share
|
|
$
|
0.64
|
|
|
$
|
0.48
|
|
|
$
|
1.23
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding
|
|
11,687,182
|
|
|
11,572,430
|
|
|
11,658,046
|
|
|
11,540,796
|
|
||||
Diluted weighted average common shares outstanding
|
|
11,764,411
|
|
|
11,652,689
|
|
|
11,733,391
|
|
|
11,625,712
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
7,574
|
|
|
$
|
5,595
|
|
|
$
|
14,399
|
|
|
$
|
11,167
|
|
Other comprehensive (loss) income, net of taxes:
|
|
|
|
|
|
|
|
|
||||||||
Gross unrealized holding (losses) gains on investments arising during the period
|
|
(1,035
|
)
|
|
4,911
|
|
|
(9,104
|
)
|
|
6,431
|
|
||||
Income tax benefit (expense)
|
|
230
|
|
|
(1,772
|
)
|
|
2,035
|
|
|
(2,316
|
)
|
||||
Net unrealized holding (losses) gains, net of tax
|
|
(805
|
)
|
|
3,139
|
|
|
(7,069
|
)
|
|
4,115
|
|
||||
Less: reclassification adjustment for net gains included in net income
|
|
|
|
|
|
|
|
|
||||||||
Net realized gains on sales of securities during the period
|
|
—
|
|
|
229
|
|
|
1
|
|
|
769
|
|
||||
Income tax expense
|
|
—
|
|
|
(83
|
)
|
|
(1
|
)
|
|
(276
|
)
|
||||
Reclassification adjustment for gains realized, net of tax
|
|
—
|
|
|
146
|
|
|
—
|
|
|
493
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive (loss) income, net
|
|
(805
|
)
|
|
2,993
|
|
|
(7,069
|
)
|
|
3,622
|
|
||||
Comprehensive income
|
|
$
|
6,769
|
|
|
$
|
8,588
|
|
|
$
|
7,330
|
|
|
$
|
14,789
|
|
(Dollars in thousands)
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
(Loss)/Income
|
|
Total
Stockholders'
Equity
|
||||||||||
Balance at December 31, 2017
|
|
$
|
116
|
|
|
$
|
88,205
|
|
|
$
|
143,073
|
|
|
$
|
416
|
|
|
$
|
231,810
|
|
Net income
|
|
|
|
|
|
14,399
|
|
|
|
|
14,399
|
|
||||||||
Other comprehensive loss, net
|
|
|
|
|
|
|
|
(7,069
|
)
|
|
(7,069
|
)
|
||||||||
Common stock dividend paid ($0.29 per share)
|
|
|
|
|
|
(3,378
|
)
|
|
|
|
(3,378
|
)
|
||||||||
Common stock issued under dividend reinvestment plan
|
|
—
|
|
|
793
|
|
|
|
|
|
|
793
|
|
|||||||
Common stock issued other
|
|
—
|
|
|
68
|
|
|
|
|
|
|
68
|
|
|||||||
Stock-based compensation
|
|
1
|
|
|
1,028
|
|
|
|
|
|
|
1,029
|
|
|||||||
Net settlement for employee taxes on restricted stock and options
|
|
—
|
|
|
(362
|
)
|
|
|
|
|
|
(362
|
)
|
|||||||
Stock options exercised, net
|
|
—
|
|
|
287
|
|
|
|
|
|
|
287
|
|
|||||||
Balance at June 30, 2018
|
|
$
|
117
|
|
|
$
|
90,019
|
|
|
$
|
154,094
|
|
|
$
|
(6,653
|
)
|
|
$
|
237,577
|
|
|
|
Six months ended June 30,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
14,399
|
|
|
$
|
11,167
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Provision for loan losses
|
|
1,900
|
|
|
405
|
|
||
Depreciation and amortization
|
|
3,434
|
|
|
3,468
|
|
||
Stock-based compensation expense
|
|
885
|
|
|
820
|
|
||
Income on bank-owned life insurance, net
|
|
(338
|
)
|
|
(353
|
)
|
||
Net gains on sales of investment securities
|
|
(1
|
)
|
|
(769
|
)
|
||
Mortgage loans originated for sale
|
|
(6,296
|
)
|
|
(11,610
|
)
|
||
Proceeds from mortgage loans sold
|
|
5,979
|
|
|
12,594
|
|
||
Net gains on sales of loans
|
|
(132
|
)
|
|
(271
|
)
|
||
Changes in:
|
|
|
|
|
||||
Decrease in other assets
|
|
473
|
|
|
425
|
|
||
Increase (decrease) in other liabilities
|
|
693
|
|
|
(747
|
)
|
||
Net cash provided by operating activities
|
|
20,996
|
|
|
15,129
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Proceeds from sales of investment securities
|
|
12,705
|
|
|
10,438
|
|
||
Net proceeds (purchases) from FHLB capital stock
|
|
2,597
|
|
|
(2,270
|
)
|
||
Proceeds from maturities, calls and pay-downs of investment securities
|
|
18,331
|
|
|
12,986
|
|
||
Purchase of investment securities
|
|
(66,969
|
)
|
|
(31,153
|
)
|
||
Net increase in loans
|
|
(28,709
|
)
|
|
(91,460
|
)
|
||
Additions to premises and equipment, net
|
|
(3,325
|
)
|
|
(3,949
|
)
|
||
Net cash used in investing activities
|
|
(65,370
|
)
|
|
(105,408
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Net increase in deposits
|
|
218,992
|
|
|
84,861
|
|
||
Net (decrease) increase in borrowed funds
|
|
(88,499
|
)
|
|
33,584
|
|
||
Cash dividends paid
|
|
(3,378
|
)
|
|
(3,113
|
)
|
||
Proceeds from issuance of common stock
|
|
861
|
|
|
785
|
|
||
Net settlement for employee taxes on restricted stock and options
|
|
(362
|
)
|
|
(802
|
)
|
||
Proceeds from stock option exercises
|
|
287
|
|
|
252
|
|
||
Net cash provided by financing activities
|
|
127,901
|
|
|
115,567
|
|
||
|
|
|
|
|
||||
Net increase in cash and cash equivalents
|
|
83,527
|
|
|
25,288
|
|
||
Cash and cash equivalents at beginning of period
|
|
54,806
|
|
|
50,475
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
138,333
|
|
|
$
|
75,763
|
|
|
|
|
|
|
||||
Supplemental financial data:
|
|
|
|
|
||||
Cash paid for: interest
|
|
$
|
5,559
|
|
|
$
|
3,320
|
|
Cash paid for: income taxes
|
|
$
|
4,663
|
|
|
$
|
5,055
|
|
|
|
|
|
|
||||
Supplemental schedule of non-cash investing activity:
|
|
|
|
|
||||
Net purchases of investment securities not yet settled
|
|
$
|
351
|
|
|
$
|
—
|
|
(1)
|
Summary of Significant Accounting Policies
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
•
|
Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income;
|
•
|
Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and
|
•
|
Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements.
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
June 30, 2018
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
cost
|
|
Unrealized
gains
|
|
Unrealized
losses
|
|
Fair Value
|
||||||||
Federal agency obligations
(1)
|
|
$
|
48,830
|
|
|
$
|
—
|
|
|
$
|
508
|
|
|
$
|
48,322
|
|
Residential federal agency MBS
(1)
|
|
155,088
|
|
|
5
|
|
|
4,253
|
|
|
150,840
|
|
||||
Commercial federal agency MBS
(1)
|
|
74,403
|
|
|
—
|
|
|
2,238
|
|
|
72,165
|
|
||||
Municipal securities
|
|
138,873
|
|
|
505
|
|
|
1,791
|
|
|
137,587
|
|
||||
Corporate bonds
|
|
11,679
|
|
|
4
|
|
|
314
|
|
|
11,369
|
|
||||
Certificates of deposits
(2)
|
|
950
|
|
|
—
|
|
|
8
|
|
|
942
|
|
||||
Total debt securities, at fair value
|
|
$
|
429,823
|
|
|
$
|
514
|
|
|
$
|
9,112
|
|
|
$
|
421,225
|
|
|
|
December 31, 2017
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
cost
|
|
Unrealized
gains
|
|
Unrealized
losses
|
|
Fair Value
|
||||||||
Federal agency obligations
(1)
|
|
$
|
51,769
|
|
|
$
|
30
|
|
|
$
|
82
|
|
|
$
|
51,717
|
|
Residential federal agency MBS
(1)
|
|
141,054
|
|
|
71
|
|
|
971
|
|
|
140,154
|
|
||||
Commercial federal agency MBS
(1)
|
|
66,777
|
|
|
9
|
|
|
286
|
|
|
66,500
|
|
||||
Municipal securities
|
|
132,603
|
|
|
2,097
|
|
|
354
|
|
|
134,346
|
|
||||
Corporate bonds
|
|
11,546
|
|
|
63
|
|
|
67
|
|
|
11,542
|
|
||||
Certificates of deposits
(2)
|
|
950
|
|
|
—
|
|
|
3
|
|
|
947
|
|
||||
Total debt securities, at fair value
|
|
$
|
404,699
|
|
|
$
|
2,270
|
|
|
$
|
1,763
|
|
|
$
|
405,206
|
|
(1)
|
These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae ("GNMA"), a wholly-owned government entity.
|
(2)
|
Certificates of deposit ("CDs") represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market.
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
June 30, 2018
|
|||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
|||||||||||||||||||||
(Dollars in thousands)
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of holdings
|
|||||||||||||
Federal agency obligations
|
|
$
|
48,321
|
|
|
$
|
508
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48,321
|
|
|
$
|
508
|
|
|
15
|
|
Residential federal agency MBS
|
|
142,321
|
|
|
3,939
|
|
|
6,031
|
|
|
314
|
|
|
148,352
|
|
|
4,253
|
|
|
44
|
|
||||||
Commercial federal agency MBS
|
|
67,146
|
|
|
2,004
|
|
|
5,019
|
|
|
234
|
|
|
72,165
|
|
|
2,238
|
|
|
20
|
|
||||||
Municipal securities
|
|
80,198
|
|
|
1,258
|
|
|
9,820
|
|
|
533
|
|
|
90,018
|
|
|
1,791
|
|
|
140
|
|
||||||
Corporate bonds
|
|
7,793
|
|
|
203
|
|
|
2,529
|
|
|
111
|
|
|
10,322
|
|
|
314
|
|
|
61
|
|
||||||
Certificates of deposit
|
|
942
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
942
|
|
|
8
|
|
|
4
|
|
||||||
Total temporarily impaired debt securities
|
|
$
|
346,721
|
|
|
$
|
7,920
|
|
|
$
|
23,399
|
|
|
$
|
1,192
|
|
|
$
|
370,120
|
|
|
$
|
9,112
|
|
|
284
|
|
|
|
December 31, 2017
|
|||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
|||||||||||||||||||||
(Dollars in thousands)
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of holdings
|
|||||||||||||
Federal agency obligations
|
|
$
|
34,344
|
|
|
$
|
82
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,344
|
|
|
$
|
82
|
|
|
9
|
|
Residential federal agency MBS
|
|
109,308
|
|
|
882
|
|
|
2,015
|
|
|
89
|
|
|
111,323
|
|
|
971
|
|
|
30
|
|
||||||
Commercial federal agency MBS
|
|
35,859
|
|
|
205
|
|
|
5,190
|
|
|
81
|
|
|
41,049
|
|
|
286
|
|
|
11
|
|
||||||
Municipal securities
|
|
16,983
|
|
|
129
|
|
|
10,210
|
|
|
225
|
|
|
27,193
|
|
|
354
|
|
|
50
|
|
||||||
Corporate bonds
|
|
2,802
|
|
|
23
|
|
|
2,913
|
|
|
44
|
|
|
5,715
|
|
|
67
|
|
|
33
|
|
||||||
Certificates of deposit
|
|
947
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
947
|
|
|
3
|
|
|
4
|
|
||||||
Total temporarily impaired debt securities
|
|
$
|
200,243
|
|
|
$
|
1,324
|
|
|
$
|
20,328
|
|
|
$
|
439
|
|
|
$
|
220,571
|
|
|
$
|
1,763
|
|
|
137
|
|
(Dollars in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
|
$
|
22,688
|
|
|
$
|
22,678
|
|
Due after one, but within five years
|
|
86,706
|
|
|
85,675
|
|
||
Due after five, but within ten years
|
|
137,030
|
|
|
133,927
|
|
||
Due after ten years
|
|
183,399
|
|
|
178,945
|
|
||
Total debt securities
|
|
$
|
429,823
|
|
|
$
|
421,225
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Six months ended June 30,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Amortized cost of debt securities sold
(1)
|
|
$
|
668
|
|
|
$
|
2,262
|
|
Gross realized gains on sales
|
|
3
|
|
|
32
|
|
||
Gross realized losses on sales
|
|
(2
|
)
|
|
—
|
|
||
Total proceeds from sales of debt securities
|
|
$
|
669
|
|
|
$
|
2,294
|
|
(1)
|
Amortized cost of investments sold is determined on a specific identification basis.
|
(3)
|
Loans
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(Dollars in thousands)
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
Commercial real estate
|
|
$
|
1,246,501
|
|
|
$
|
1,201,351
|
|
Commercial and industrial
|
|
493,981
|
|
|
498,802
|
|
||
Commercial construction
|
|
246,865
|
|
|
274,905
|
|
||
Total commercial loans
|
|
1,987,347
|
|
|
1,975,058
|
|
||
Residential mortgages
|
|
205,781
|
|
|
195,492
|
|
||
Home equity loans and lines
|
|
98,176
|
|
|
91,706
|
|
||
Consumer
|
|
9,756
|
|
|
10,293
|
|
||
Total retail loans
|
|
313,713
|
|
|
297,491
|
|
||
|
|
|
|
|
||||
Gross loans
|
|
2,301,060
|
|
|
2,272,549
|
|
||
Deferred loan origination fees, net
|
|
(2,465
|
)
|
|
(2,645
|
)
|
||
Total loans
|
|
2,298,595
|
|
|
2,269,904
|
|
||
Allowance for loan losses
|
|
(34,797
|
)
|
|
(32,915
|
)
|
||
Net loans
|
|
$
|
2,263,798
|
|
|
$
|
2,236,989
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(Dollars in thousands)
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
Commercial real estate
|
|
$
|
211,661
|
|
|
$
|
224,703
|
|
Residential mortgages
|
|
187,266
|
|
|
187,524
|
|
||
Home equity
|
|
8,904
|
|
|
9,405
|
|
||
Total loans pledged to FHLB
|
|
$
|
407,831
|
|
|
$
|
421,632
|
|
(4)
|
Allowance for Loan Losses
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(Dollars in thousands)
|
|
Loans individually
evaluated for
impairment
|
|
Loans collectively
evaluated for
impairment
|
|
Gross Loans
|
||||||
Commercial real estate
|
|
$
|
13,234
|
|
|
$
|
1,233,267
|
|
|
$
|
1,246,501
|
|
Commercial and industrial
|
|
12,571
|
|
|
481,410
|
|
|
493,981
|
|
|||
Commercial construction
|
|
1,686
|
|
|
245,179
|
|
|
246,865
|
|
|||
Residential mortgages
|
|
562
|
|
|
205,219
|
|
|
205,781
|
|
|||
Home equity loans and lines
|
|
494
|
|
|
97,682
|
|
|
98,176
|
|
|||
Consumer
|
|
164
|
|
|
9,592
|
|
|
9,756
|
|
|||
Total gross loans
|
|
$
|
28,711
|
|
|
$
|
2,272,349
|
|
|
$
|
2,301,060
|
|
(Dollars in thousands)
|
|
Loans individually
evaluated for
impairment
|
|
Loans collectively
evaluated for
impairment
|
|
Gross Loans
|
||||||
Commercial real estate
|
|
$
|
13,739
|
|
|
$
|
1,187,612
|
|
|
$
|
1,201,351
|
|
Commercial and industrial
|
|
10,096
|
|
|
488,706
|
|
|
498,802
|
|
|||
Commercial construction
|
|
1,624
|
|
|
273,281
|
|
|
274,905
|
|
|||
Residential mortgages
|
|
397
|
|
|
195,095
|
|
|
195,492
|
|
|||
Home equity loans and lines
|
|
371
|
|
|
91,335
|
|
|
91,706
|
|
|||
Consumer
|
|
35
|
|
|
10,258
|
|
|
10,293
|
|
|||
Total gross loans
|
|
$
|
26,262
|
|
|
$
|
2,246,287
|
|
|
$
|
2,272,549
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
June 30, 2018
|
||||||||||||||||||
|
|
Adversely Classified
|
|
Not Adversely
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Classified
|
|
Gross Loans
|
||||||||||
Commercial real estate
|
|
$
|
16,933
|
|
|
$
|
493
|
|
|
$
|
—
|
|
|
$
|
1,229,075
|
|
|
$
|
1,246,501
|
|
Commercial and industrial
|
|
14,018
|
|
|
—
|
|
|
—
|
|
|
479,963
|
|
|
493,981
|
|
|||||
Commercial construction
|
|
1,686
|
|
|
—
|
|
|
—
|
|
|
245,179
|
|
|
246,865
|
|
|||||
Residential mortgages
|
|
1,502
|
|
|
—
|
|
|
—
|
|
|
204,279
|
|
|
205,781
|
|
|||||
Home equity loans and lines
|
|
543
|
|
|
—
|
|
|
—
|
|
|
97,633
|
|
|
98,176
|
|
|||||
Consumer
|
|
183
|
|
|
9
|
|
|
—
|
|
|
9,564
|
|
|
9,756
|
|
|||||
Total gross loans
|
|
$
|
34,865
|
|
|
$
|
502
|
|
|
$
|
—
|
|
|
$
|
2,265,693
|
|
|
$
|
2,301,060
|
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Adversely Classified
|
|
Not Adversely
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Classified
|
|
Gross Loans
|
||||||||||
Commercial real estate
|
|
$
|
12,895
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,188,456
|
|
|
$
|
1,201,351
|
|
Commercial and industrial
|
|
9,915
|
|
|
48
|
|
|
1
|
|
|
488,838
|
|
|
498,802
|
|
|||||
Commercial construction
|
|
1,624
|
|
|
—
|
|
|
—
|
|
|
273,281
|
|
|
274,905
|
|
|||||
Residential mortgages
|
|
1,355
|
|
|
—
|
|
|
—
|
|
|
194,137
|
|
|
195,492
|
|
|||||
Home equity loans and lines
|
|
513
|
|
|
—
|
|
|
—
|
|
|
91,193
|
|
|
91,706
|
|
|||||
Consumer
|
|
52
|
|
|
10
|
|
|
—
|
|
|
10,231
|
|
|
10,293
|
|
|||||
Total gross loans
|
|
$
|
26,354
|
|
|
$
|
58
|
|
|
$
|
1
|
|
|
$
|
2,246,136
|
|
|
$
|
2,272,549
|
|
|
|
Balance at June 30, 2018
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Past Due 90 days or more
|
|
Total Past
Due Loans
|
|
Current Loans
|
|
Gross
Loans
|
|
Non-accrual Loans
|
||||||||||||||
Commercial real estate
|
|
$
|
5,209
|
|
|
$
|
137
|
|
|
$
|
4,149
|
|
|
$
|
9,495
|
|
|
$
|
1,237,006
|
|
|
$
|
1,246,501
|
|
|
$
|
6,512
|
|
Commercial and industrial
|
|
950
|
|
|
432
|
|
|
1,579
|
|
|
2,961
|
|
|
491,020
|
|
|
493,981
|
|
|
3,438
|
|
|||||||
Commercial construction
|
|
1,710
|
|
|
—
|
|
|
—
|
|
|
1,710
|
|
|
245,155
|
|
|
246,865
|
|
|
187
|
|
|||||||
Residential mortgages
|
|
547
|
|
|
946
|
|
|
—
|
|
|
1,493
|
|
|
204,288
|
|
|
205,781
|
|
|
429
|
|
|||||||
Home equity loans and lines
|
|
442
|
|
|
—
|
|
|
38
|
|
|
480
|
|
|
97,696
|
|
|
98,176
|
|
|
494
|
|
|||||||
Consumer
|
|
110
|
|
|
2
|
|
|
—
|
|
|
112
|
|
|
9,644
|
|
|
9,756
|
|
|
17
|
|
|||||||
Total gross loans
|
|
$
|
8,968
|
|
|
$
|
1,517
|
|
|
$
|
5,766
|
|
|
$
|
16,251
|
|
|
$
|
2,284,809
|
|
|
$
|
2,301,060
|
|
|
$
|
11,077
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Balance at December 31, 2017
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Past Due 90 days or more
|
|
Total Past
Due Loans
|
|
Current Loans
|
|
Gross Loans
|
|
Non-accrual Loans
|
||||||||||||||
Commercial real estate
|
|
$
|
4,200
|
|
|
$
|
69
|
|
|
$
|
3,569
|
|
|
$
|
7,838
|
|
|
$
|
1,193,513
|
|
|
$
|
1,201,351
|
|
|
$
|
6,751
|
|
Commercial and industrial
|
|
374
|
|
|
527
|
|
|
327
|
|
|
1,228
|
|
|
497,574
|
|
|
498,802
|
|
|
1,294
|
|
|||||||
Commercial construction
|
|
2,526
|
|
|
518
|
|
|
—
|
|
|
3,044
|
|
|
271,861
|
|
|
274,905
|
|
|
193
|
|
|||||||
Residential mortgages
|
|
1,931
|
|
|
93
|
|
|
89
|
|
|
2,113
|
|
|
193,379
|
|
|
195,492
|
|
|
262
|
|
|||||||
Home equity loans and lines
|
|
491
|
|
|
120
|
|
|
12
|
|
|
623
|
|
|
91,083
|
|
|
91,706
|
|
|
463
|
|
|||||||
Consumer
|
|
51
|
|
|
5
|
|
|
45
|
|
|
101
|
|
|
10,192
|
|
|
10,293
|
|
|
69
|
|
|||||||
Total gross loans
|
|
$
|
9,573
|
|
|
$
|
1,332
|
|
|
$
|
4,042
|
|
|
$
|
14,947
|
|
|
$
|
2,257,602
|
|
|
$
|
2,272,549
|
|
|
$
|
9,032
|
|
|
|
Balance at June 30, 2018
|
||||||||||||||||||
(Dollars in thousands)
|
|
Unpaid
contractual
principal
balance
|
|
Total recorded
investment in
impaired loans
|
|
Recorded
investment
with no
allowance
|
|
Recorded
investment
with
allowance
|
|
Related specific
allowance
|
||||||||||
Commercial real estate
|
|
$
|
14,436
|
|
|
$
|
13,234
|
|
|
$
|
13,029
|
|
|
$
|
205
|
|
|
$
|
42
|
|
Commercial and industrial
|
|
13,003
|
|
|
12,571
|
|
|
7,539
|
|
|
5,032
|
|
|
2,621
|
|
|||||
Commercial construction
|
|
1,747
|
|
|
1,686
|
|
|
1,686
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgages
|
|
687
|
|
|
562
|
|
|
429
|
|
|
133
|
|
|
3
|
|
|||||
Home equity loans and lines
|
|
712
|
|
|
494
|
|
|
494
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
165
|
|
|
164
|
|
|
147
|
|
|
17
|
|
|
17
|
|
|||||
Total
|
|
$
|
30,750
|
|
|
$
|
28,711
|
|
|
$
|
23,324
|
|
|
$
|
5,387
|
|
|
$
|
2,683
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Balance at December 31, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Unpaid
contractual
principal
balance
|
|
Total recorded
investment in
impaired loans
|
|
Recorded
investment
with no
allowance
|
|
Recorded
investment
with
allowance
|
|
Related specific
allowance
|
||||||||||
Commercial real estate
|
|
$
|
15,132
|
|
|
$
|
13,739
|
|
|
$
|
12,850
|
|
|
$
|
889
|
|
|
$
|
59
|
|
Commercial and industrial
|
|
10,458
|
|
|
10,096
|
|
|
7,053
|
|
|
3,043
|
|
|
1,284
|
|
|||||
Commercial construction
|
|
1,678
|
|
|
1,624
|
|
|
1,624
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgages
|
|
511
|
|
|
397
|
|
|
262
|
|
|
135
|
|
|
5
|
|
|||||
Home equity loans and lines
|
|
543
|
|
|
371
|
|
|
371
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
36
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|
35
|
|
|||||
Total
|
|
$
|
28,358
|
|
|
$
|
26,262
|
|
|
$
|
22,160
|
|
|
$
|
4,102
|
|
|
$
|
1,383
|
|
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Average recorded
investment
|
|
Interest income
recognized
|
|
Average recorded
investment
|
|
Interest income
recognized
|
||||||||
Commercial real estate
|
|
$
|
13,506
|
|
|
$
|
95
|
|
|
$
|
14,403
|
|
|
$
|
78
|
|
Commercial and industrial
|
|
11,601
|
|
|
89
|
|
|
12,367
|
|
|
76
|
|
||||
Commercial construction
|
|
1,676
|
|
|
23
|
|
|
1,622
|
|
|
22
|
|
||||
Residential mortgages
|
|
644
|
|
|
1
|
|
|
279
|
|
|
—
|
|
||||
Home equity loans and lines
|
|
499
|
|
|
—
|
|
|
565
|
|
|
—
|
|
||||
Consumer
|
|
66
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
Total
|
|
$
|
27,992
|
|
|
$
|
208
|
|
|
$
|
29,251
|
|
|
$
|
176
|
|
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Average recorded
investment
|
|
Interest income
recognized
|
|
Average recorded
investment
|
|
Interest income recognized
|
||||||||
Commercial real estate
|
|
$
|
13,611
|
|
|
$
|
189
|
|
|
$
|
13,891
|
|
|
$
|
179
|
|
Commercial and industrial
|
|
11,124
|
|
|
166
|
|
|
12,623
|
|
|
181
|
|
||||
Commercial construction
|
|
1,656
|
|
|
45
|
|
|
2,017
|
|
|
49
|
|
||||
Residential mortgages
|
|
629
|
|
|
—
|
|
|
283
|
|
|
—
|
|
||||
Home equity loans and lines
|
|
487
|
|
|
—
|
|
|
552
|
|
|
(2
|
)
|
||||
Consumer
|
|
49
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Total
|
|
$
|
27,556
|
|
|
$
|
400
|
|
|
$
|
29,380
|
|
|
$
|
407
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Six months ended
|
||||||||||||
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||
(Dollars in thousands)
|
|
Number of
restructurings
|
|
Amount
|
|
Number of
restructurings
|
|
Amount
|
||||||
Loan advances with adequate collateral
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
367
|
|
Extended maturity date
|
|
—
|
|
|
—
|
|
|
6
|
|
|
5,739
|
|
||
Temporary payment reduction and payment re-amortization of remaining principal over extended term
|
|
5
|
|
|
222
|
|
|
5
|
|
|
1,086
|
|
||
Temporary interest only payment plan
|
|
2
|
|
|
148
|
|
|
7
|
|
|
1,016
|
|
||
Other payment concessions
|
|
1
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
8
|
|
|
$
|
382
|
|
|
19
|
|
|
$
|
8,208
|
|
Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above
|
|
|
|
$
|
73
|
|
|
|
|
$
|
376
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Three months ended
|
||||||||||||||||||||
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Number of
restructurings
|
|
Pre-modification
outstanding recorded
investment
|
|
Post-modification
outstanding recorded
investment
|
|
Number of
restructurings
|
|
Pre-modification
outstanding recorded
investment
|
|
Post-modification
outstanding recorded
investment
|
||||||||||
Commercial real estate
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
929
|
|
|
$
|
928
|
|
Commercial and industrial
|
|
2
|
|
|
20
|
|
|
17
|
|
|
10
|
|
|
2,213
|
|
|
2,326
|
|
||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1,420
|
|
|
1,419
|
|
||||
Residential mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Home equity loans and lines
|
|
2
|
|
|
112
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
4
|
|
|
$
|
132
|
|
|
$
|
121
|
|
|
15
|
|
|
$
|
4,562
|
|
|
$
|
4,673
|
|
|
|
Three months ended
|
||||||||||||
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||
(Dollars in thousands)
|
|
Number of TDRs that defaulted
|
|
Post-
modification outstanding
recorded investment
|
|
Number of TDRs that defaulted
|
|
Post-
modification outstanding
recorded investment
|
||||||
Commercial real estate
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Commercial and industrial
|
|
1
|
|
|
73
|
|
|
5
|
|
|
1,457
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity loans and lines
|
|
1
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
2
|
|
|
$
|
85
|
|
|
5
|
|
|
$
|
1,457
|
|
|
|
Six months ended
|
||||||||||||||||||||
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Number of
restructurings
|
|
Pre-modification
outstanding recorded
investment
|
|
Post-modification
outstanding recorded
investment
|
|
Number of
restructurings
|
|
Pre-modification
outstanding recorded
investment
|
|
Post-modification
outstanding recorded
investment
|
||||||||||
Commercial real estate
|
|
2
|
|
|
$
|
131
|
|
|
$
|
148
|
|
|
4
|
|
|
$
|
1,304
|
|
|
$
|
1,299
|
|
Commercial and industrial
|
|
4
|
|
|
162
|
|
|
130
|
|
|
12
|
|
|
5,165
|
|
|
5,290
|
|
||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1,626
|
|
|
1,619
|
|
||||
Residential mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Home equity loans and lines
|
|
2
|
|
|
112
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
8
|
|
|
$
|
405
|
|
|
$
|
382
|
|
|
19
|
|
|
$
|
8,095
|
|
|
$
|
8,208
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Six months ended
|
||||||||||||
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||
(Dollars in thousands)
|
|
Number of TDRs that defaulted
|
|
Post-
modification outstanding
recorded investment
|
|
Number of TDRs that defaulted
|
|
Post-
modification outstanding
recorded investment
|
||||||
Commercial real estate
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
734
|
|
Commercial and industrial
|
|
1
|
|
|
73
|
|
|
6
|
|
|
1,687
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity loans and lines
|
|
1
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
2
|
|
|
$
|
85
|
|
|
8
|
|
|
$
|
2,421
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(Dollars in thousands)
|
|
Cmml Real
Estate
|
|
Cmml and
Industrial
|
|
Cmml
Constr
|
|
Resid.
Mortgage
|
|
Home
Equity
|
|
Consumer
|
|
Total
|
||||||||||||||
Beginning Balance at March 31, 2018
|
|
$
|
18,300
|
|
|
$
|
11,171
|
|
|
$
|
3,283
|
|
|
$
|
914
|
|
|
$
|
629
|
|
|
$
|
227
|
|
|
$
|
34,524
|
|
Provision
|
|
114
|
|
|
(109
|
)
|
|
261
|
|
|
25
|
|
|
16
|
|
|
(7
|
)
|
|
300
|
|
|||||||
Recoveries
|
|
—
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
69
|
|
|||||||
Less: Charge offs
|
|
—
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
96
|
|
|||||||
Ending Balance at June 30, 2018
|
|
$
|
18,414
|
|
|
$
|
11,043
|
|
|
$
|
3,544
|
|
|
$
|
939
|
|
|
$
|
645
|
|
|
$
|
212
|
|
|
$
|
34,797
|
|
(Dollars in thousands)
|
|
Cmml Real
Estate
|
|
Cmml and
Industrial
|
|
Cmml
Constr
|
|
Resid.
Mortgage
|
|
Home
Equity
|
|
Consumer
|
|
Total
|
||||||||||||||
Beginning Balance at December 31, 2017
|
|
$
|
17,545
|
|
|
$
|
9,669
|
|
|
$
|
3,947
|
|
|
$
|
904
|
|
|
$
|
608
|
|
|
$
|
242
|
|
|
$
|
32,915
|
|
Provision
|
|
869
|
|
|
1,326
|
|
|
(403
|
)
|
|
35
|
|
|
36
|
|
|
37
|
|
|
1,900
|
|
|||||||
Recoveries
|
|
—
|
|
|
165
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
17
|
|
|
183
|
|
|||||||
Less: Charge offs
|
|
—
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
201
|
|
|||||||
Ending Balance at June 30, 2018
|
|
$
|
18,414
|
|
|
$
|
11,043
|
|
|
$
|
3,544
|
|
|
$
|
939
|
|
|
$
|
645
|
|
|
$
|
212
|
|
|
$
|
34,797
|
|
Ending allowance balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allocated to loans individually evaluated for impairment
|
|
$
|
42
|
|
|
$
|
2,621
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
2,683
|
|
Allocated to loans collectively evaluated for impairment
|
|
$
|
18,372
|
|
|
$
|
8,422
|
|
|
$
|
3,544
|
|
|
$
|
936
|
|
|
$
|
645
|
|
|
$
|
195
|
|
|
$
|
32,114
|
|
(Dollars in thousands)
|
|
Cmml Real
Estate
|
|
Cmml and
Industrial
|
|
Cmml
Constr
|
|
Resid.
Mortgage
|
|
Home
Equity
|
|
Consumer
|
|
Total
|
||||||||||||||
Beginning Balance at March 31, 2017
|
|
$
|
15,294
|
|
|
$
|
11,178
|
|
|
$
|
3,364
|
|
|
$
|
978
|
|
|
$
|
635
|
|
|
$
|
234
|
|
|
$
|
31,683
|
|
Provision
|
|
295
|
|
|
(148
|
)
|
|
120
|
|
|
11
|
|
|
(14
|
)
|
|
16
|
|
|
280
|
|
|||||||
Recoveries
|
|
56
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
130
|
|
|||||||
Less: Charge offs
|
|
—
|
|
|
114
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
135
|
|
|||||||
Ending Balance at June 30, 2017
|
|
$
|
15,645
|
|
|
$
|
10,987
|
|
|
$
|
3,484
|
|
|
$
|
989
|
|
|
$
|
622
|
|
|
$
|
231
|
|
|
$
|
31,958
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(Dollars in thousands)
|
|
Cmml Real
Estate
|
|
Cmml and
Industrial
|
|
Cmml
Constr
|
|
Resid.
Mortgage
|
|
Home
Equity
|
|
Consumer
|
|
Total
|
||||||||||||||
Beginning Balance at December 31, 2016
|
|
$
|
14,902
|
|
|
$
|
11,204
|
|
|
$
|
3,406
|
|
|
$
|
960
|
|
|
$
|
634
|
|
|
$
|
236
|
|
|
$
|
31,342
|
|
Provision
|
|
611
|
|
|
(343
|
)
|
|
78
|
|
|
29
|
|
|
(14
|
)
|
|
44
|
|
|
405
|
|
|||||||
Recoveries
|
|
132
|
|
|
343
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
482
|
|
|||||||
Less: Charge offs
|
|
—
|
|
|
217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
271
|
|
|||||||
Ending Balance at June 30, 2017
|
|
$
|
15,645
|
|
|
$
|
10,987
|
|
|
$
|
3,484
|
|
|
$
|
989
|
|
|
$
|
622
|
|
|
$
|
231
|
|
|
$
|
31,958
|
|
Ending allowance balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allocated to loans individually evaluated for impairment
|
|
$
|
393
|
|
|
$
|
1,771
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
2,177
|
|
Allocated to loans collectively evaluated for impairment
|
|
$
|
15,252
|
|
|
$
|
9,216
|
|
|
$
|
3,484
|
|
|
$
|
989
|
|
|
$
|
622
|
|
|
$
|
218
|
|
|
$
|
29,781
|
|
(5)
|
Deposits
|
(Dollars in thousands)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Non-interest bearing demand deposits
|
|
$
|
739,890
|
|
|
$
|
705,846
|
|
Interest-bearing checking
|
|
442,944
|
|
|
391,111
|
|
||
Savings
|
|
198,666
|
|
|
193,385
|
|
||
Money market
|
|
859,611
|
|
|
807,931
|
|
||
Certificates of deposit $250,000 or less
|
|
184,858
|
|
|
150,445
|
|
||
Certificates of deposit more than $250,000
|
|
55,585
|
|
|
45,154
|
|
||
Total customer deposits
|
|
2,481,554
|
|
|
2,293,872
|
|
||
Brokered deposits
(1)
|
|
178,800
|
|
|
147,490
|
|
||
Total deposits
|
|
$
|
2,660,354
|
|
|
$
|
2,441,362
|
|
(1)
|
Brokered CDs $250,000 and under.
|
(6)
|
Borrowed Funds and Subordinated Debt
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(7)
|
Derivatives and Hedging Activities
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Asset Derivatives
|
|
Liability Derivatives
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Interest rate contracts - pay floating, received fixed
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
25
|
|
|
$
|
568
|
|
Interest rate contracts - pay fixed, receive floating
|
|
1,000
|
|
|
—
|
|
|
543
|
|
|
—
|
|
||||
Total interest rate swaps
|
|
$
|
1,000
|
|
|
$
|
1,000
|
|
|
$
|
568
|
|
|
$
|
568
|
|
|
|
As of June 30, 2018
|
||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amounts of Assets Presented in the Statement of Financial Position
|
||||||
Asset Derivatives
|
|
|
|
|
|
|
||||||
Interest rate contracts - pay fixed, receive floating
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
|
As of December 31, 2017
|
||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amounts of Assets Presented in the Statement of Financial Position
|
||||||
Asset Derivatives
|
|
|
|
|
|
|
||||||
Interest rate contracts - pay fixed, receive floating
|
|
$
|
568
|
|
|
$
|
25
|
|
|
$
|
543
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(8)
|
Stockholders' Equity
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(9)
|
Supplemental Retirement Plan and Other Post-retirement Benefit Obligations
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service Cost
|
|
$
|
(18
|
)
|
|
$
|
(3
|
)
|
|
$
|
(35
|
)
|
|
$
|
(6
|
)
|
Interest Cost
|
|
62
|
|
|
23
|
|
|
124
|
|
|
46
|
|
||||
Net periodic benefit cost
|
|
$
|
44
|
|
|
$
|
20
|
|
|
$
|
89
|
|
|
$
|
40
|
|
(10)
|
Stock-Based Compensation
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Options granted
|
14,755
|
|
|
15,009
|
|
||
Term in years
|
10
|
|
|
10
|
|
||
Weighted average assumptions used in the fair value model:
|
|
|
|
||||
Expected volatility
|
37
|
%
|
|
40
|
%
|
||
Expected dividend yield
|
2.10
|
%
|
|
2.09
|
%
|
||
Expected life in years
|
6.5
|
|
|
7
|
|
||
Risk-free interest rate
|
2.86
|
%
|
|
2.35
|
%
|
||
Weighted average market price on date of grants
|
$
|
34.33
|
|
|
$
|
30.46
|
|
Per share weighted average fair value
|
$
|
11.98
|
|
|
$
|
11.34
|
|
Fair value as a percentage of market value at grant date
|
35
|
%
|
|
37
|
%
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
Six Months Ended June 30,
|
||||||
Restricted Stock Awards (Number of underlying shares)
|
|
2018
|
|
2017
|
||||
Two year vesting
|
|
7,280
|
|
|
6,944
|
|
||
Four year vesting
|
|
16,666
|
|
|
16,253
|
|
||
Performance-based vesting
|
|
20,559
|
|
|
25,623
|
|
||
Total restricted stock awards granted
|
|
44,505
|
|
|
48,820
|
|
||
Weighted average grant date fair value
|
|
$
|
34.33
|
|
|
$
|
30.46
|
|
(11)
|
Earnings per Share
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Basic weighted average common shares outstanding
|
11,687,182
|
|
|
11,572,430
|
|
|
11,658,046
|
|
|
11,540,796
|
|
Dilutive shares
|
77,229
|
|
|
80,259
|
|
|
75,345
|
|
|
84,916
|
|
Diluted weighted average common shares outstanding
|
11,764,411
|
|
|
11,652,689
|
|
|
11,733,391
|
|
|
11,625,712
|
|
(12)
|
Fair Value Measurements
|
|
|
June 30, 2018
|
||||||||||||||
|
|
|
|
Fair Value Measurements using:
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets measured on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities
|
|
$
|
421,225
|
|
|
$
|
—
|
|
|
$
|
421,225
|
|
|
$
|
—
|
|
Equity securities
|
|
949
|
|
|
949
|
|
|
—
|
|
|
—
|
|
||||
FHLB stock
|
|
2,618
|
|
|
—
|
|
|
—
|
|
|
2,618
|
|
||||
Interest rate swaps
|
|
1,000
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
||||
Assets measured on a non-recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans (collateral dependent)
|
|
2,677
|
|
|
—
|
|
|
—
|
|
|
2,677
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities measured on a recurring basis:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
—
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
|
|
Fair Value Measurements using:
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets measured on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities
|
|
$
|
405,206
|
|
|
$
|
—
|
|
|
$
|
405,206
|
|
|
$
|
—
|
|
FHLB stock
|
|
5,215
|
|
|
—
|
|
|
—
|
|
|
5,215
|
|
||||
Interest rate swaps
|
|
568
|
|
|
—
|
|
|
568
|
|
|
—
|
|
||||
Assets measured on a non-recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans (collateral dependent)
|
|
2,696
|
|
|
—
|
|
|
—
|
|
|
2,696
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities measured on a recurring basis:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
$
|
568
|
|
|
$
|
—
|
|
|
$
|
568
|
|
|
$
|
—
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
(Dollars in thousands)
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Unobservable Input Value or Range
|
||
Assets measured on a recurring basis:
|
|
|
|
|
|
|
|
|
||
FHLB stock
|
|
$
|
2,618
|
|
|
FHLB Stated Par Value
|
|
N/A
|
|
N/A
|
Assets measured on a non-recurring basis:
|
|
|
|
|
|
|
|
|
||
Impaired loans (collateral dependent)
|
|
$
|
2,677
|
|
|
Appraisal of collateral
|
|
Appraisal adjustments
(1)
|
|
5% - 50%
|
|
|
June 30, 2018
|
||||||||||||||||||
|
|
|
|
|
|
Fair value measurement
|
||||||||||||||
(Dollars in thousands)
|
|
Carrying
Amount
|
|
Fair Value
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
|
$
|
657
|
|
|
$
|
657
|
|
|
$
|
—
|
|
|
$
|
657
|
|
|
$
|
—
|
|
Loans, net
|
|
2,263,798
|
|
|
2,237,361
|
|
|
—
|
|
|
—
|
|
|
2,237,361
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit (including brokered)
|
|
419,243
|
|
|
416,821
|
|
|
—
|
|
|
416,821
|
|
|
—
|
|
|||||
Borrowed funds
|
|
501
|
|
|
500
|
|
|
—
|
|
|
500
|
|
|
—
|
|
|||||
Subordinated debt
|
|
14,853
|
|
|
13,848
|
|
|
—
|
|
|
—
|
|
|
13,848
|
|
ENTERPRISE BANCORP, INC.
Notes to the Unaudited Consolidated Interim Financial Statements
|
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
|
|
Fair value measurement
|
||||||||||||||||
(Dollars in thousands)
|
|
Carrying
Amount
|
|
Fair Value
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
|
$
|
208
|
|
|
$
|
208
|
|
|
$
|
—
|
|
|
$
|
208
|
|
|
$
|
—
|
|
Loans, net
|
|
2,236,989
|
|
|
2,236,169
|
|
|
—
|
|
|
—
|
|
|
2,236,169
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit (including brokered)
|
|
343,089
|
|
|
341,765
|
|
|
—
|
|
|
341,765
|
|
|
—
|
|
|||||
Borrowed funds
|
|
89,000
|
|
|
88,996
|
|
|
—
|
|
|
88,996
|
|
|
—
|
|
|||||
Subordinated debt
|
|
14,847
|
|
|
14,208
|
|
|
—
|
|
|
—
|
|
|
14,208
|
|
Item 2 -
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Net charge-offs of
$18 thousand
for the
six months ended
June 30, 2018
, compared to net recoveries of
$211 thousand
for the
six months ended
June 30, 2017
.
|
•
|
Total non-performing loans as a percentage of total loans amounted to
0.48%
at
June 30, 2018
, compared to
0.63%
at
June 30, 2017
.
|
•
|
The ratio of adversely classified loans (substandard, doubtful, loss) to total loans amounted to
1.54%
at
June 30, 2018
, compared to
1.48%
at
June 30, 2017
.
|
•
|
Loan growth for the
six months ended
June 30, 2018
was
$28.7 million
, compared to
$91.7 million
during the
six months ended
June 30, 2017
.
|
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Federal agency obligations
(1)
|
|
$
|
48,322
|
|
|
11.5
|
%
|
|
$
|
51,717
|
|
|
12.8
|
%
|
|
$
|
75,189
|
|
|
19.7
|
%
|
Residential federal agency MBS
(1)
|
|
150,840
|
|
|
35.8
|
%
|
|
140,154
|
|
|
34.6
|
%
|
|
95,714
|
|
|
25.1
|
%
|
|||
Commercial federal agency MBS
(1)
|
|
72,165
|
|
|
17.1
|
%
|
|
66,500
|
|
|
16.4
|
%
|
|
76,437
|
|
|
20.0
|
%
|
|||
Municipal securities
|
|
137,587
|
|
|
32.7
|
%
|
|
134,346
|
|
|
33.2
|
%
|
|
122,158
|
|
|
32.0
|
%
|
|||
Corporate bonds
|
|
11,369
|
|
|
2.7
|
%
|
|
11,542
|
|
|
2.8
|
%
|
|
11,367
|
|
|
3.0
|
%
|
|||
Certificates of deposits
(2)
|
|
942
|
|
|
0.2
|
%
|
|
947
|
|
|
0.2
|
%
|
|
953
|
|
|
0.2
|
%
|
|||
Total debt securities
|
|
$
|
421,225
|
|
|
100.0
|
%
|
|
$
|
405,206
|
|
|
100.0
|
%
|
|
$
|
381,818
|
|
|
100.0
|
%
|
(1)
|
These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae ("GNMA"), a wholly-owned government entity.
|
(2)
|
Certificates of deposits ("CDs") represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Commercial real estate
|
|
$
|
1,246,501
|
|
|
54.2
|
%
|
|
$
|
1,201,351
|
|
|
52.9
|
%
|
|
$
|
1,107,714
|
|
|
52.3
|
%
|
Commercial and industrial
|
|
493,981
|
|
|
21.5
|
%
|
|
498,802
|
|
|
21.9
|
%
|
|
505,240
|
|
|
23.9
|
%
|
|||
Commercial construction
|
|
246,865
|
|
|
10.7
|
%
|
|
274,905
|
|
|
12.1
|
%
|
|
218,277
|
|
|
10.3
|
%
|
|||
Total commercial loans
|
|
1,987,347
|
|
|
86.4
|
%
|
|
1,975,058
|
|
|
86.9
|
%
|
|
1,831,231
|
|
|
86.5
|
%
|
|||
Residential mortgages
|
|
205,781
|
|
|
8.9
|
%
|
|
195,492
|
|
|
8.6
|
%
|
|
188,941
|
|
|
8.9
|
%
|
|||
Home equity loans and lines
|
|
98,176
|
|
|
4.3
|
%
|
|
91,706
|
|
|
4.0
|
%
|
|
86,394
|
|
|
4.1
|
%
|
|||
Consumer
|
|
9,756
|
|
|
0.4
|
%
|
|
10,293
|
|
|
0.5
|
%
|
|
10,064
|
|
|
0.5
|
%
|
|||
Total retail loans
|
|
313,713
|
|
|
13.6
|
%
|
|
297,491
|
|
|
13.1
|
%
|
|
285,399
|
|
|
13.5
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross loans
|
|
2,301,060
|
|
|
100.0
|
%
|
|
2,272,549
|
|
|
100.0
|
%
|
|
2,116,630
|
|
|
100.0
|
%
|
|||
Deferred fees, net
|
|
(2,465
|
)
|
|
|
|
|
(2,645
|
)
|
|
|
|
|
(2,230
|
)
|
|
|
|
|||
Total loans
|
|
2,298,595
|
|
|
|
|
|
2,269,904
|
|
|
|
|
|
2,114,400
|
|
|
|
|
|||
Allowance for loan losses
|
|
(34,797
|
)
|
|
|
|
|
(32,915
|
)
|
|
|
|
|
(31,958
|
)
|
|
|
|
|||
Net loans
|
|
$
|
2,263,798
|
|
|
|
|
|
$
|
2,236,989
|
|
|
|
|
|
$
|
2,082,442
|
|
|
|
|
(Dollars in thousands)
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
||||||
Non-accrual loan summary:
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
$
|
6,512
|
|
|
$
|
6,751
|
|
|
$
|
8,446
|
|
Commercial and industrial
|
|
3,438
|
|
|
1,294
|
|
|
3,744
|
|
|||
Commercial construction
|
|
187
|
|
|
193
|
|
|
200
|
|
|||
Residential
|
|
429
|
|
|
262
|
|
|
272
|
|
|||
Home equity
|
|
494
|
|
|
463
|
|
|
594
|
|
|||
Consumer
|
|
17
|
|
|
34
|
|
|
13
|
|
|||
Total non-accrual loans
|
|
11,077
|
|
|
8,997
|
|
|
13,269
|
|
|||
Overdrafts > 90 days past due
|
|
—
|
|
|
35
|
|
|
7
|
|
|||
Total non-performing loans
|
|
11,077
|
|
|
9,032
|
|
|
13,276
|
|
|||
OREO
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total non-performing assets
|
|
$
|
11,077
|
|
|
$
|
9,032
|
|
|
$
|
13,276
|
|
Total Loans
|
|
$
|
2,298,595
|
|
|
$
|
2,269,904
|
|
|
$
|
2,114,400
|
|
Accruing TDR loans not included above
|
|
$
|
18,077
|
|
|
$
|
17,356
|
|
|
$
|
17,316
|
|
Delinquent loans 60-89 days past due and still accruing
|
|
$
|
1,054
|
|
|
$
|
1,026
|
|
|
$
|
111
|
|
Loans 60-89 days past due and still accruing to total loans
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.01
|
%
|
|||
Adversely classified loans to total loans
|
|
1.54
|
%
|
|
1.16
|
%
|
|
1.48
|
%
|
|||
Non-performing loans to total loans
|
|
0.48
|
%
|
|
0.40
|
%
|
|
0.63
|
%
|
|||
Non-performing assets to total assets
|
|
0.38
|
%
|
|
0.32
|
%
|
|
0.50
|
%
|
|||
Allowance for loan losses
|
|
$
|
34,797
|
|
|
$
|
32,915
|
|
|
$
|
31,958
|
|
Allowance for loan losses to non-performing loans
|
|
314.14
|
%
|
|
364.43
|
%
|
|
240.72
|
%
|
|||
Allowance for loan losses to total loans
|
|
1.51
|
%
|
|
1.45
|
%
|
|
1.51
|
%
|
|
|
Six Months Ended June 30,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Balance at beginning of year
|
|
$
|
32,915
|
|
|
$
|
31,342
|
|
|
|
|
|
|
||||
Provision charged to operations
|
|
1,900
|
|
|
405
|
|
||
Recoveries on charged-off loans:
|
|
|
|
|
|
|
||
Commercial real estate
|
|
—
|
|
|
132
|
|
||
Commercial and industrial
|
|
165
|
|
|
343
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential
|
|
—
|
|
|
—
|
|
||
Home equity
|
|
1
|
|
|
2
|
|
||
Consumer
|
|
17
|
|
|
5
|
|
||
Total recoveries
|
|
183
|
|
|
482
|
|
||
Charged-off loans
|
|
|
|
|
||||
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Commercial and industrial
|
|
117
|
|
|
217
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential
|
|
—
|
|
|
—
|
|
||
Home equity
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
84
|
|
|
54
|
|
||
Total charged off
|
|
201
|
|
|
271
|
|
||
|
|
|
|
|
||||
Net loans charged off (recovered)
|
|
18
|
|
|
(211
|
)
|
||
Ending Balance
|
|
$
|
34,797
|
|
|
$
|
31,958
|
|
Annualized net loans charged off (recovered): Average loans outstanding
|
|
—
|
%
|
|
(0.02
|
)%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Non-interest bearing demand deposits
|
|
$
|
739,890
|
|
|
27.8
|
%
|
|
$
|
705,846
|
|
|
28.9
|
%
|
|
$
|
700,415
|
|
|
29.7
|
%
|
Interest-bearing checking
|
|
442,944
|
|
|
16.7
|
%
|
|
391,111
|
|
|
16.0
|
%
|
|
406,077
|
|
|
17.3
|
%
|
|||
Total checking
|
|
1,182,834
|
|
|
44.5
|
%
|
|
1,096,957
|
|
|
44.9
|
%
|
|
1,106,492
|
|
|
47.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Savings
|
|
198,666
|
|
|
7.5
|
%
|
|
193,385
|
|
|
7.9
|
%
|
|
199,018
|
|
|
8.5
|
%
|
|||
Money markets
|
|
859,611
|
|
|
32.3
|
%
|
|
807,931
|
|
|
33.1
|
%
|
|
793,131
|
|
|
33.7
|
%
|
|||
Total savings/money markets
|
|
1,058,277
|
|
|
39.8
|
%
|
|
1,001,316
|
|
|
41.0
|
%
|
|
992,149
|
|
|
42.2
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Certificates of deposit (CD's)
|
|
240,443
|
|
|
9.0
|
%
|
|
195,599
|
|
|
8.0
|
%
|
|
167,681
|
|
|
7.1
|
%
|
|||
Total customer deposits
|
|
2,481,554
|
|
|
93.3
|
%
|
|
2,293,872
|
|
|
93.9
|
%
|
|
2,266,322
|
|
|
96.3
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Brokered deposits
(1)
|
|
178,800
|
|
|
6.7
|
%
|
|
147,490
|
|
|
6.1
|
%
|
|
87,460
|
|
|
3.7
|
%
|
|||
Total deposits
|
|
$
|
2,660,354
|
|
|
100.0
|
%
|
|
$
|
2,441,362
|
|
|
100.0
|
%
|
|
$
|
2,353,782
|
|
|
100.0
|
%
|
(1)
|
Brokered CDs $250,000 and under.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Brokered deposits
|
|
$
|
178,800
|
|
|
99.7
|
%
|
|
$
|
147,490
|
|
|
62.4
|
%
|
|
$
|
87,460
|
|
|
66.4
|
%
|
Borrowed funds
|
|
501
|
|
|
0.3
|
%
|
|
89,000
|
|
|
37.6
|
%
|
|
44,255
|
|
|
33.6
|
%
|
|||
Wholesale funding
|
|
$
|
179,301
|
|
|
100.0
|
%
|
|
$
|
236,490
|
|
|
100.0
|
%
|
|
$
|
131,715
|
|
|
100.0
|
%
|
|
|
Actual
|
|
Minimum Capital
for Capital Adequacy
Purposes
(1)
|
|
Minimum Capital
To Be
Well Capitalized
(2)
|
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
|||||||||
The Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital (to risk weighted assets)
|
|
$
|
283,907
|
|
|
11.66
|
%
|
|
$
|
194,734
|
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|||
Tier 1 Capital (to risk weighted assets)
|
|
$
|
238,573
|
|
|
9.80
|
%
|
|
$
|
146,050
|
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|||
Tier 1 Capital (to average assets) or Leverage ratio
|
|
$
|
238,573
|
|
|
8.35
|
%
|
|
$
|
114,261
|
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|||
Common equity tier 1 capital (to risk weighted assets)
|
|
$
|
238,573
|
|
|
9.80
|
%
|
|
$
|
109,538
|
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital (to risk weighted assets)
|
|
$
|
283,505
|
|
|
11.67
|
%
|
|
$
|
194,376
|
|
|
8.00
|
%
|
|
$
|
242,970
|
|
|
10.00
|
%
|
|
Tier 1 Capital (to risk weighted assets)
|
|
$
|
253,079
|
|
|
10.42
|
%
|
|
$
|
145,782
|
|
|
6.00
|
%
|
|
$
|
194,376
|
|
|
8.00
|
%
|
|
Tier 1 Capital (to average assets) or Leverage ratio
|
|
$
|
253,079
|
|
|
8.86
|
%
|
|
$
|
114,258
|
|
|
4.00
|
%
|
|
$
|
142,822
|
|
|
5.00
|
%
|
|
Common equity tier 1 capital (to risk weighted assets)
|
|
$
|
253,079
|
|
|
10.42
|
%
|
|
$
|
109,337
|
|
|
4.50
|
%
|
|
$
|
157,931
|
|
|
6.50
|
%
|
|
|
|
Basel III Minimum for Capital Adequacy Purposes
|
|
Basel III Additional Capital Conservation Buffer
|
|
Basel III "Adequate" Ratio with Capital Conservation Buffer
|
(Dollars in thousands)
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
8.00%
|
|
2.50%
|
|
10.50%
|
Tier 1 Capital (to risk weighted assets)
|
|
6.00%
|
|
2.50%
|
|
8.50%
|
Tier 1 Capital (to average assets) or Leverage ratio
|
|
4.00%
|
|
—%
|
|
4.00%
|
Common equity tier 1 capital (to risk weighted assets)
|
|
4.50%
|
|
2.50%
|
|
7.00%
|
(Dollars in thousands)
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
||||||
Total assets
|
|
$
|
2,933,963
|
|
|
$
|
2,817,564
|
|
|
$
|
2,656,547
|
|
Loans serviced for others
|
|
92,465
|
|
|
89,059
|
|
|
83,268
|
|
|||
Investment assets under management
|
|
848,181
|
|
|
844,977
|
|
|
781,052
|
|
|||
Total assets under management
|
|
$
|
3,874,609
|
|
|
$
|
3,751,600
|
|
|
$
|
3,520,867
|
|
|
|
|
|
Increase (decrease) due to
|
||||||||||||
(Dollars in thousands)
|
|
Net
Change
|
|
Volume
|
|
Rate
|
|
Rate/
Volume
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans and loans held for sale
|
|
$
|
4,246
|
|
|
$
|
2,229
|
|
|
$
|
1,680
|
|
|
$
|
337
|
|
Investment securities
|
|
642
|
|
|
308
|
|
|
82
|
|
|
252
|
|
||||
Other interest earning assets
(1)
|
|
94
|
|
|
33
|
|
|
45
|
|
|
16
|
|
||||
Total interest-earning assets
|
|
4,982
|
|
|
2,570
|
|
|
1,807
|
|
|
605
|
|
||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest checking, savings and money market
|
|
461
|
|
|
37
|
|
|
410
|
|
|
14
|
|
||||
Certificates of deposit
|
|
481
|
|
|
134
|
|
|
244
|
|
|
103
|
|
||||
Brokered CDs
|
|
515
|
|
|
286
|
|
|
103
|
|
|
126
|
|
||||
Borrowed funds
|
|
(158
|
)
|
|
(172
|
)
|
|
134
|
|
|
(120
|
)
|
||||
Subordinated debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total interest-bearing funding
|
|
1,299
|
|
|
285
|
|
|
891
|
|
|
123
|
|
||||
Change in net interest income
|
|
$
|
3,683
|
|
|
$
|
2,285
|
|
|
$
|
916
|
|
|
$
|
482
|
|
(1)
|
Income on other interest-earning assets includes interest on deposits and fed funds sold, and dividends on FHLB stock.
|
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield
(1)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield
(1)
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans and loans held for sale
(2)
|
|
$
|
2,294,931
|
|
|
$
|
27,527
|
|
|
4.84
|
%
|
|
$
|
2,098,528
|
|
|
$
|
23,281
|
|
|
4.50
|
%
|
Investments
(3)
|
|
425,373
|
|
|
2,606
|
|
|
2.74
|
%
|
|
379,138
|
|
|
1,964
|
|
|
2.63
|
%
|
||||
Other interest earning assets
(4)
|
|
35,936
|
|
|
187
|
|
|
2.09
|
%
|
|
26,687
|
|
|
93
|
|
|
1.41
|
%
|
||||
Total interest-earning assets
|
|
2,756,240
|
|
|
30,320
|
|
|
4.48
|
%
|
|
2,504,353
|
|
|
25,338
|
|
|
4.19
|
%
|
||||
Other assets
|
|
97,524
|
|
|
|
|
|
|
|
|
108,632
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
2,853,764
|
|
|
|
|
|
|
|
|
$
|
2,612,985
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Int chkg, savings and money market
|
|
$
|
1,433,531
|
|
|
1,292
|
|
|
0.36
|
%
|
|
$
|
1,371,650
|
|
|
831
|
|
|
0.24
|
%
|
||
Certificates of deposit
|
|
232,872
|
|
|
795
|
|
|
1.37
|
%
|
|
163,057
|
|
|
314
|
|
|
0.77
|
%
|
||||
Brokered CDs
|
|
176,700
|
|
|
750
|
|
|
1.70
|
%
|
|
79,452
|
|
|
235
|
|
|
1.18
|
%
|
||||
Borrowed funds
|
|
7,164
|
|
|
34
|
|
|
1.90
|
%
|
|
68,653
|
|
|
192
|
|
|
1.12
|
%
|
||||
Subordinated debt
(5)
|
|
14,851
|
|
|
231
|
|
|
6.23
|
%
|
|
14,839
|
|
|
231
|
|
|
6.23
|
%
|
||||
Total interest-bearing funding
|
|
1,865,118
|
|
|
3,102
|
|
|
0.67
|
%
|
|
1,697,651
|
|
|
1,803
|
|
|
0.43
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest rate spread
|
|
|
|
|
|
|
|
3.81
|
%
|
|
|
|
|
|
|
|
3.76
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
737,656
|
|
|
—
|
|
|
|
|
|
676,364
|
|
|
—
|
|
|
|
|
||||
Total deposits, borrowed funds and subordinated debt
|
|
2,602,774
|
|
|
3,102
|
|
|
0.48
|
%
|
|
2,374,015
|
|
|
1,803
|
|
|
0.30
|
%
|
||||
Other liabilities
|
|
17,659
|
|
|
|
|
|
|
|
|
15,234
|
|
|
|
|
|
|
|
||||
Total liabilities
|
|
2,620,433
|
|
|
|
|
|
|
|
|
2,389,249
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
|
233,331
|
|
|
|
|
|
|
|
|
223,736
|
|
|
|
|
|
|
|
||||
Total liabilities and stockholders' equity
|
|
$
|
2,853,764
|
|
|
|
|
|
|
|
|
$
|
2,612,985
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
|
|
|
$
|
27,218
|
|
|
|
|
|
|
|
|
$
|
23,535
|
|
|
|
|
||
Net interest margin (tax equivalent)
|
|
|
|
|
|
|
|
4.03
|
%
|
|
|
|
|
|
|
|
3.90
|
%
|
(1)
|
Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, which was not included in the interest amount above, was
$460 thousand
and
$824 thousand
for the quarters ended
June 30, 2018
and
June 30, 2017
, respectively.
|
(2)
|
Average loans and loans held for sale include non-accrual loans and are net of average deferred loan fees.
|
(3)
|
Average investments are presented at average amortized cost.
|
(4)
|
Average other interest earning assets include interest earning deposits, fed funds sold and FHLB stock.
|
(5)
|
The subordinated debt issued in
January 2015
is net of average deferred debt issuance costs.
|
•
|
Investment advisory fees increased by
$151 thousand
, or
12%
, primarily driven by asset growth due to changes in market values.
|
•
|
Net gains on sales of investment securities
decreased
by
$229 thousand
. Gains on investment sales in the prior period were primarily from equity securities. The equity portfolio was liquidated by the end of 2017 in order to reduce the magnitude of the impact from market changes on earnings due to new accounting rules in effect January 1, 2018.
|
•
|
Salaries and employee benefits
increased
by
$1.5 million
, or
13%
, primarily to support the Company's strategic growth and market expansion initiatives since the prior period.
|
•
|
Advertising and public relations expenses
increased
$315 thousand
, or
40%
, primarily due to the Company's Celebration of Excellence, a community recognition event, in the second quarter of 2018.
|
•
|
Audit, legal and other professional fees
increased
$105 thousand
, or
33%
, largely in other professional costs to further support the Company's strategic initiatives.
|
|
|
|
|
Increase (decrease) due to
|
||||||||||||
(Dollars in thousands)
|
|
Net
Change
|
|
Volume
|
|
Rate
|
|
Rate/
Volume
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans and loans held for sale
|
|
$
|
8,025
|
|
|
$
|
4,765
|
|
|
$
|
2,687
|
|
|
$
|
573
|
|
Investment securities
|
|
1,209
|
|
|
584
|
|
|
167
|
|
|
458
|
|
||||
Other interest-earning assets
(1)
|
|
155
|
|
|
27
|
|
|
110
|
|
|
18
|
|
||||
Total interest-earning assets
|
|
9,389
|
|
|
5,376
|
|
|
2,964
|
|
|
1,049
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest checking, savings and money market
|
|
724
|
|
|
28
|
|
|
685
|
|
|
11
|
|
||||
Certificates of deposit
|
|
816
|
|
|
222
|
|
|
441
|
|
|
153
|
|
||||
Brokered CDs
|
|
925
|
|
|
618
|
|
|
124
|
|
|
183
|
|
||||
Borrowed funds
|
|
73
|
|
|
(45
|
)
|
|
143
|
|
|
(25
|
)
|
||||
Subordinated debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total interest-bearing funding
|
|
2,538
|
|
|
823
|
|
|
1,393
|
|
|
322
|
|
||||
Change in net interest income
|
|
$
|
6,851
|
|
|
$
|
4,553
|
|
|
$
|
1,571
|
|
|
$
|
727
|
|
(1)
|
Income on other interest-earning assets includes interest on deposits and fed funds sold, and dividends on FHLB stock.
|
|
|
Six months ended June 30, 2018
|
|
Six months ended June 30, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield (1) |
|
Average
Balance
|
|
Interest
|
|
Average
Yield
(1)
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans and loans held for sale
(2)
|
|
$
|
2,284,674
|
|
|
$
|
53,677
|
|
|
4.76
|
%
|
|
$
|
2,073,388
|
|
|
$
|
45,652
|
|
|
4.49
|
%
|
Investment Securities
(3)
|
|
419,650
|
|
|
5,093
|
|
|
2.72
|
%
|
|
378,309
|
|
|
3,884
|
|
|
2.61
|
%
|
||||
Other interest-earning assets
(4)
|
|
30,661
|
|
|
321
|
|
|
2.11
|
%
|
|
26,432
|
|
|
166
|
|
|
1.27
|
%
|
||||
Total interest-earnings assets
|
|
2,734,985
|
|
|
59,091
|
|
|
4.42
|
%
|
|
2,478,129
|
|
|
49,702
|
|
|
4.17
|
%
|
||||
Other assets
|
|
98,391
|
|
|
|
|
|
|
|
|
105,912
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
2,833,376
|
|
|
|
|
|
|
|
|
$
|
2,584,041
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest checking, savings and money market
|
|
$
|
1,405,729
|
|
|
2,308
|
|
|
0.33
|
%
|
|
$
|
1,380,960
|
|
|
1,584
|
|
|
0.23
|
%
|
||
Certificates of deposit
|
|
224,234
|
|
|
1,430
|
|
|
1.29
|
%
|
|
164,536
|
|
|
614
|
|
|
0.75
|
%
|
||||
Brokered CDs
|
|
174,233
|
|
|
1,335
|
|
|
1.55
|
%
|
|
69,468
|
|
|
410
|
|
|
1.19
|
%
|
||||
Borrowed funds
|
|
40,061
|
|
|
326
|
|
|
1.64
|
%
|
|
48,654
|
|
|
253
|
|
|
1.05
|
%
|
||||
Subordinated debt
(5)
|
|
14,850
|
|
|
459
|
|
|
6.23
|
%
|
|
14,837
|
|
|
459
|
|
|
6.24
|
%
|
||||
Total interest-bearing funding
|
|
1,859,107
|
|
|
5,858
|
|
|
0.64
|
%
|
|
1,678,455
|
|
|
3,320
|
|
|
0.40
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest rate spread
|
|
|
|
|
|
|
|
3.78
|
%
|
|
|
|
|
|
|
|
3.77
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
723,542
|
|
|
—
|
|
|
|
|
668,944
|
|
|
—
|
|
|
|
||||||
Total deposits, borrowed funds and subordinated debt
|
|
2,582,649
|
|
|
5,858
|
|
|
0.46
|
%
|
|
2,347,399
|
|
|
3,320
|
|
|
0.29
|
%
|
||||
Other liabilities
|
|
18,676
|
|
|
|
|
|
|
|
|
16,234
|
|
|
|
|
|
|
|
||||
Total liabilities
|
|
2,601,325
|
|
|
|
|
|
|
|
|
2,363,633
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
|
232,051
|
|
|
|
|
|
|
|
|
220,408
|
|
|
|
|
|
|
|
||||
Total liabilities and stockholders' equity
|
|
$
|
2,833,376
|
|
|
|
|
|
|
|
|
$
|
2,584,041
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
|
|
|
$
|
53,233
|
|
|
|
|
|
|
|
|
$
|
46,382
|
|
|
|
|
||
Net interest margin (tax equivalent)
|
|
|
|
|
|
|
|
3.99
|
%
|
|
|
|
|
|
|
|
3.90
|
%
|
(1)
|
Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, which was not included in the interest amount above, was
$918 thousand
for the
six months ended
June 30, 2018
and
$1.6 million
for the comparable period in
2017
.
|
(2)
|
Average loans and loans held for sale include non-accrual loans and are net of average deferred loan fees.
|
(3)
|
Average investment balances are presented at average amortized cost.
|
(4)
|
Average other interest earning assets includes interest-earning deposits, fed funds sold, and FHLB stock.
|
(5)
|
The subordinated debt is net of average deferred debt issuance costs.
|
•
|
Investment advisory fees
increased
$334 thousand
, or
13%
, and was primarily driven by asset growth due to changes in market values.
|
•
|
Deposit and interchange fees
increased
$194 thousand
, or
7%
, primarily due to increases in ATM interchange fee income in the current year.
|
•
|
Net gain on sales of investment securities
decreased
$768 thousand
. Gains on investment sales in the prior year-to-date period were primarily from equity securities. The equity portfolio was liquidated by the end of 2017 in order to reduce the magnitude of the impact from market changes on earnings due to new accounting rules in effect January 1, 2018.
|
•
|
Net gain on sales of loans
decreased
$139 thousand
, or
51%
, due to a lower volume of activity in the current year.
|
•
|
Salaries and employee benefits
increased
$891 thousand
, or
4%
, primarily to support the Company's strategic growth and market expansion initiatives since the prior period.
|
•
|
Occupancy and equipment expenses
increased
$310 thousand
, or
8%
, due in large part to the addition of the Windham, NH branch and the relocation of the Salem, NH and Leominster, MA branches.
|
•
|
Advertising and public relations expenses
increased
$416 thousand
, or
29%
, primarily due to the Company's Celebration of Excellence, a community recognition event, in the second quarter of 2018.
|
•
|
Audit, legal and other professional fees
increased
$249 thousand
, or
37%
, largely in other professional costs to further support the Company's strategic initiatives.
|
Item 3 -
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4 -
|
Controls and Procedures
|
Item 1 -
|
Legal Proceedings
|
Item 1A -
|
Risk Factors
|
Item 2 -
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
|
|
|
|
|
|
|
|
Total number of shares repurchased
(1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Announced
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
April
|
|
1,558
|
|
$36.74
|
|
—
|
|
—
|
May
|
|
—
|
|
—
|
|
—
|
|
—
|
June
|
|
53
|
|
$40.75
|
|
—
|
|
—
|
Item 3 -
|
Defaults upon Senior Securities
|
Item 4 -
|
Mine Safety Disclosures
|
Item 5 -
|
Other Information
|
Item 6 -
|
Exhibits
|
101*
|
The following materials from Enterprise Bancorp, Inc.’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018
were formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of
June 30, 2018
and
December 31, 2017
; (ii) Consolidated Statements of Income for the
three and six months ended
June 30, 2018
and
2017
; (iii) Consolidated Statements of Comprehensive Income for the
three and six months ended
June 30, 2018
and
2017
; (iv) Consolidated Statements of Changes in Equity for the
six months ended
June 30, 2018
; (v) Consolidated Statements of Cash Flows for the
six months ended
months ended
June 30, 2018
and
2017
; and (vi) Notes to Unaudited Consolidated Interim Financial Statements.
|
|
|
ENTERPRISE BANCORP, INC.
|
|
|
|
|
|
DATE:
|
August 7, 2018
|
By:
|
/s/ James A. Marcotte
|
|
|
|
James A. Marcotte
|
|
|
|
Executive Vice President,
|
|
|
|
Chief Financial Officer and Treasurer
|
|
|
|
(Principal Financial Officer)
|
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