Enterprise Bancorp reports Q2 EPS 77c, vs. 69c last year

Reports Q2 net interest income for the three months ended June 30, amounted to $36.2M a decrease of $1.9M, or 5%, compared to the three months ended June 30, 2023. The decrease was due primarily to an increase in deposit interest expense of $9.5M and a decrease in interest and dividend income on investments of $1M, partially offset by an increase in loan interest income of $9.4M. The increase in interest expense during the period was attributed primarily to an increase in the cost of funds and changes in deposit mix, while the increase in interest income during the period was due primarily to loan growth and higher market interest rates.Chief Executive Officer Steven Larochelle commented, “We had a solid second quarter with strong net income and loan growth funded through core deposits. Higher deposit costs and the inverted yield curve continue to be a headwind, but net interest margin was stable at 3.19%. Our liquidity position was favorable at June 30 with the loan to deposit ratio at 89% and interest-earning deposits with banks exceeding wholesale funding by $89.6 M. Credit quality remained strong with nominal charge-offs year-to-date.” Mr. Larochelle continued, “We remain committed to our long-term strategy of geographic expansion and customer acquisition through organic growth and investment in our team members, communities, products and technology. We are well positioned with a strong balance sheet, centered around a high-quality loan portfolio and favorable liquidity, core deposit funding and capital, paired with a conservative credit and reserve culture.”