Enterprise Bancorp, Inc. Announces 2005 First Quarter Financial Results and Annual Dividend.LOWELL Lowell, city (1990 pop. 103,439), a seat of Middlesex co., NE Mass., at the confluence of the Merrimack and Concord rivers; settled 1653, set off from Chelmsford 1826, inc. as a city 1836. , Mass. -- Enterprise Bancorp, Inc. (the "company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :EBTC EBTC Enterprise Bank and Trust Company EBTC Eastern Border Transportation Coalition (Canada) EBTC Edmonton Bicycle and Touring Club (Canada) EBTC Environmental Business and Technology Center ) announced first quarter net income of $1.851 million compared to $1.715 million during the first quarter of 2004, an increase of 8%. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.48 for the quarter compared to $0.45 for first quarter 2004, an increase of 7%. Enterprise Bancorp, Inc. today also announced that its Board of Directors has approved a $0.48 per share annual dividend which will be payable on June June: see month. 24, 2005, to stockholders of record as of the close of business on June 3, 2005. The first quarter of 2005 results benefited from an increase in net interest income, which was partially offset by a reduction in non-interest income and an increase in non-interest expenses. The increase in net interest income was due to growth in interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin and an increase in the net interest margin due to the recent increases in market interest rates. Non-interest income declined primarily due to the higher level of gains realized on the sales of investment securities in the prior period and a reduction in deposit servicing fee income in 2005 mainly due to higher earnings credit rates paid on business checking accounts. The increase in non-interest expenses reflects the company's continued growth and strategic initiatives, including our 2004 branch expansion into the new markets of Andover Andover (ăn`dōvər), town (1990 pop. 29,151), Essex co., NE Mass.; inc. 1646. Chiefly a textile producer in the 19th cent., Andover now makes toiletries, electronic and computer equipment, chemicals, medical instruments, rubber products, , MA and Salem, New Hampshire Salem is a town in Rockingham County, New Hampshire, United States. The population was 28,112 at the 2000 census. Salem is a marketing and distributing center, with several colleges, recreation attractions and a large shopping mall, the Mall at Rockingham Park. . The 2004 period also reflects a higher provision for loan losses compared to the first quarter of 2005, contributing to the increase in current net income over the prior period. The higher provision for loan losses in the 2004 period reflects management's ongoing assessments of the allowance and estimates of the credit risk within the loan portfolio, including the level of charge offs during the period. Net charge offs in the first quarter of 2004 were $407 thousand as compared to net recoveries of $14 thousand in the first quarter of 2005. Key Financial Highlights --Total loans increased 17% over the last twelve months, amounting to $590.6 million at March 31, 2005. --Total deposits grew 10% over the last twelve months, amounting to $754.2 million at March 31, 2005. --Net interest margin was 4.71% for the three months ended March 31, 2005 as compared to 4.55% for the three months ended March 31, 2004. --Total assets amounted to $867.9 million at March 31, 2005 as compared to $776.1 million at March 31, 2004, an increase of 12%. --Total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. amounted to $1.268 billion at March 31, 2005 as compared to $1.191 billion at March 31, 2004, an increase of 7%. "We are pleased to report continued net income and asset growth for the first three months of 2005. In addition, we are pleased to announce an annual dividend increase of 12% to $0.48 per share," said George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). L. Duncan Duncan, city (1990 pop. 21,732), seat of Stephens co., SW Okla., in an oil, farm, and cattle area; inc. 1892. There is an oil industry, and electronics, concrete, and apparel are manufactured. During the late 19th cent. , Chairman and Chief Executive Officer of Enterprise Bancorp, Inc. Duncan continued, "Throughout Enterprise's 16 plus years, we have maintained strong growth through ongoing business development efforts and continued market expansion within existing and into new markets such as our 2004 branch openings in Andover, MA and Salem Salem, in the Bible Salem (sā`ləm) [Heb.,=peace], in the Bible, royal city of Melchizedek, traditionally identified with Jerusalem. Salem, city, India Salem, city (1991 pop. , NH. Our second Tewksbury Tewksbury, town (1990 pop. 27,266), Middlesex co., NE Mass.; settled 1637, set off from Billerica and inc. 1734. It was once the site of a Native American settlement. Primarily residential, the town has light manufacturing, including pharmaceuticals and computer equipment. , MA office is scheduled to open in the early summer and we continue to look to expand our branch network to take advantage of other opportunities within our market area." Duncan concluded "We feel that our business model, strong service culture, skilled management team and brand name creates opportunities for Enterprise to be the leading provider of commercial banking and investment management services in the Merrimack Valley The Merrimack Valley is the area surrounding the Merrimack River in northeastern Massachusetts. The area on either side of the Merrimack in New Hampshire is named the Merrimack Valley Region by the NH Division of Travel and Tourism Development. and North Central Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. ."Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all of its operations through Enterprise Bank and Trust Company. The company is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through the bank and its subsidiaries, the company offers a range of commercial and consumer loan and deposit products, and investment management, trust and insurance services. The company's headquarters and the bank's main office are located at 222 Merrimack Merrimack, river, United States Merrimack, river, c.110 mi (180 km) long, formed at Franklin, S central N.H., by the junction of the Pemigewasset (rising in the White Mts.) and Winnipesaukee rivers. It flows S past Concord and Manchester into NE Mass. Street in Lowell, Massachusetts Lowell is a city in Middlesex County, Massachusetts, USA. As of the 2000 census, the city had a total population of 105,167. It is the fourth largest city in the state. It and Cambridge are the county seats of Middlesex County. . The company's primary market area is northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. Massachusetts and southern New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). . The company has thirteen full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branch banking offices located in the Massachusetts cities and towns of Andover, Billerica Billerica (bĭlrĭ`kə), town (1990 pop. 37,609), Middlesex co., NE Mass., on the Concord River; settled 1637, inc. 1655. An important high-tech center, its manufactures include computer hardware and software, precision instruments, and , Chelmsford Chelmsford, city, England Chelmsford, city (1991 pop. 91,109), county seat of Essex, SE England. It is a market center (especially for cattle) for the surrounding agricultural district. , Dracut Dracut (drā`kət), town (1990 pop. 25,594), Middlesex co., NE Mass., near the N.H. line; settled 1664, inc. 1702. The growing commercial center of a fertile farm region, the town has light manufacturing. , Fitchburg Fitchburg, industrial city (1990 pop. 41,194), seat of Worcester co., N Mass., on the north branch of the Nashua River; settled c.1730, inc. as a city 1872. Its important paper industry dates approximately from 1805. , Leominster Leominster (lĕm`ĭnstər), city (1990 pop. 38,145), Worcester co., N central Mass.; set off from Lancaster 1740, inc. as a city 1915. , Lowell, Tewksbury, and Westford Westford, town (1990 pop. 16,392), Middlesex co., NE Mass., a suburb of the greater Boston area; settled 1653, set off from Chelmsford and inc. 1729. Although chiefly residential, there are apple orchards, granite quarries (which have long been in operation), and a ; and in Salem, New Hampshire, which serve those cities and towns as well as the surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. communities. The above text contains statements about future events that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements may be identified by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "will," "should," and other expressions that predict or indicate future events or trends and which do not relate to historical matters. 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 or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to general economic conditions, changes in interest rates, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. considerations and competition. For more information about these factors, please see our most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. on file with the SEC, including the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations". Any forward-looking statements contained in this press release are made as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and we undertake no duty, and specifically disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise.
ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
Three months ended March 31, 2005 and 2004
(unaudited)
March 31, March 31,
(Dollars in thousands, except per share data) 2005 2004
----------- -----------
Interest and dividend income:
Loans $ 8,837 $ 7,559
Investment securities 1,820 1,724
Total short-term investments 61 14
----------- -----------
Total interest and dividend income 10,718 9,297
----------- -----------
Interest expense:
Deposits 1,672 1,456
Borrowed funds 85 67
Junior subordinated debentures 294 294
----------- -----------
Total interest expense 2,051 1,817
----------- -----------
Net interest income 8,667 7,480
Provision for loan losses 200 750
----------- -----------
Net interest income after provision
for loan losses 8,467 6,730
----------- -----------
Non-interest income:
Investment management and trust service
fees 507 516
Deposit service fees 400 549
Net gains on sales of investment
securities 200 631
Gains on sales of loans 32 85
Other income 395 399
----------- -----------
Total non-interest income 1,534 2,180
----------- -----------
Non-interest expense:
Salaries and employee benefits 4,326 3,695
Occupancy expenses 1,373 1,237
Audit, legal and other professional fees 376 263
Advertising and public relations 154 170
Supplies and postage 212 221
Trust professional and custodial expenses 115 152
Other operating expenses 568 461
----------- -----------
Total non-interest expense 7,124 6,199
----------- -----------
Income before income taxes 2,877 2,711
Income tax expense 1,026 996
----------- -----------
Net income $ 1,851 $ 1,715
=========== ===========
Basic earnings per share $ 0.50 $ 0.48
=========== ===========
Diluted earnings per share $ 0.48 $ 0.45
=========== ===========
Basic weighted average common shares
outstanding 3,690,797 3,605,344
=========== ===========
Diluted weighted average common shares
outstanding 3,829,906 3,789,679
=========== ===========
ENTERPRISE BANCORP, INC.
Consolidated Balance Sheets
(unaudited)
March 31, Dec. 31, March 31,
(Dollars in thousands) 2005 2004 2004
--------- --------- ---------
Assets
Cash and cash equivalents:
Cash and due from banks $ 32,130 $ 25,180 $ 32,147
Short-term investments 35,146 32,090 32,500
--------- --------- ---------
Total cash and cash equivalents 67,276 57,270 64,647
--------- --------- ---------
Other short-term investments - 8,200 6,000
Investment securities at fair value 189,376 187,601 179,320
Loans, less allowance for loan losses of
$11,138 at March 31, 2005,
$10,923 at December 31, 2004, and
$10,329 at March 31, 2004 579,465 559,536 495,402
Premises and equipment 11,898 11,914 12,218
Accrued interest receivable 4,103 3,629 3,176
Deferred income taxes, net 5,343 4,084 3,304
Prepaid expenses and other assets 4,049 9,540 5,561
Core deposit intangible, net of
amortization 708 741 841
Goodwill 5,656 5,656 5,656
--------- --------- ---------
Total assets $867,874 $848,171 $776,125
========= ========= =========
Liabilities and Stockholders' Equity
Liabilities
Deposits $754,248 $768,644 $688,500
Borrowed funds 36,180 3,651 16,438
Junior subordinated debentures 10,825 10,825 10,825
Accrued expenses and other liabilities 3,714 2,577 2,313
Income taxes payable 566 50 407
Accrued interest payable 494 740 423
--------- --------- ---------
Total liabilities 806,027 786,487 718,906
--------- --------- ---------
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;
10,000,000 shares authorized;
3,691,435, 3,690,163 and 3,609,063
shares issued and outstanding at March
31, 2005,
December 31, 2004 and March 31, 2004,
respectively 37 37 36
Additional paid-in capital 22,614 22,598 21,062
Retained earnings 39,259 37,408 33,184
Accumulated other comprehensive income
(loss) (63 ) 1,641 2,937
--------- --------- ---------
Total stockholders' equity 61,847 61,684 57,219
--------- --------- ---------
Total liabilities and
stockholders' equity $867,874 $848,171 $776,125
========= ========= =========
ENTERPRISE BANCORP, INC.
Selected Consolidated Financial Data and Ratios
(unaudited)
At or for At or for At or for
the the the
three months year three months
ended ended ended
March 31, December 31, March 31,
2005 2004 2004
-----------------------------------
(Dollars in thousands, except per
share data)
Balance Sheet Items:
Total assets $ 867,874 $ 848,171 $ 776,125
Loans serviced for others 35,911 35,067 28,064
Investment assets under management 364,574 363,250 386,661
Total assets under management 1,268,359 1,246,488 1,190,850
Book value per share $16.75 $16.72 $15.85
Total capital to risk weighted
assets 11.53% 11.24% 11.50%
Tier 1 capital to risk weighted
assets 10.28% 9.96% 10.25%
Tier 1 capital to average assets 8.11% 7.83% 8.00%
Allowance for loan losses to loans 1.89% 1.91% 2.04%
Non-performing loans to total loans 0.34% 0.38% 0.57%
Income Statement Items
(annualized):
Return on average assets 0.92% 0.95% 0.94%
Return on average stockholders'
equity 12.10% 12.99% 12.25%
Net interest margin (tax
equivalent) 4.71% 4.50% 4.55%
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