Executive Summary

Q1 2025 delivered steady profitability: diluted EPS $0.84 (QoQ -$0.02; YoY +$0.15) on net income of $10.4M as margin expanded to 3.32% (up 3 bps QoQ; up 12 bps YoY) and net interest income rose 10% YoY, aided by solid loan growth and a one-time 5 bps NIM benefit from selling non-performing loans .
Balance sheet mix shifted: loans grew 1.7% QoQ to $4.05B; deposits rose to $4.30B on $150M of brokered inflows, while borrowed funds fell 38% QoQ to $94.5M; excluding brokered, customer deposits declined $37M (0.9%) .
Credit quality remained manageable: NPLs ticked to 0.70% of loans (from 0.67%), ACL/loans dipped to 1.58%, and the company recorded net recoveries ($424k) with a modest $331k provision (reflecting higher unfunded commitment reserves) .
Strategic and capital updates: shareholders approved the merger with Rockland Trust (INDB) on April 3, with close expected in 2H25; quarterly dividend increased to $0.25 (payable June 2) from $0.24 in prior quarters, signaling confidence .
Estimate context: S&P Global consensus EPS and revenue were unavailable for Q1 2025; result comparison to Street is not determinable. Third-party trackers similarly show no consensus (MarketBeat) .

What Went Well and What Went Wrong

What Went Well
- Margin and NII momentum: Tax-equivalent NIM rose to 3.32% (3 bps QoQ, 12 bps YoY) with net interest income up 10% YoY; management cited strong loan growth and higher loan yields, plus a discrete 5 bps NIM lift from the sale of non-performing loans .
- Loan growth: Total loans increased 1.7% QoQ to $4.05B and ~11% YoY, led by commercial real estate; CEO highlighted “strong results” and “solid” loan growth .
- Capital/shareholder returns and merger progress: Dividend raised to $0.25 (payable June 2) and shareholders approved the Rockland Trust merger; integration planning is proceeding and expected synergies/cultural alignment remain attractive .
- Quote: “Operating results compared to the prior year quarter were positively impacted by net interest income growth of 10% resulting from strong loan growth and an increase in net interest margin.” — CEO Steven Larochelle .
What Went Wrong
- Deposit mix reliance: Total deposits increased with $150M brokered inflows; excluding brokered, customer deposits declined $37M QoQ (0.9%), reflecting continued funding pressures despite lower borrowed funds .
- Non-interest income softness: Non-interest income fell 6% YoY, driven by lower gains on equity securities (down $766k YoY), partly offset by higher wealth management fees .
- Expense pressure and merger costs: Non-interest expense rose 4% YoY, with higher salaries/benefits (+$760k) and merger-related expenses (+$290k) .
- Analyst concern: Slight uptick in NPLs to 0.70% of loans and higher reserve for unfunded commitments (+$211k provision component) may prompt questions on credit normalization and commitment utilization .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Net Interest Income ($MM)	$35.19	$38.02	$38.49	$38.69
Non-Interest Income ($MM)	$5.50	$6.14	$5.62	$5.19
Total Non-Interest Expense ($MM)	$28.91	$29.35	$29.84	$29.95
Provision for Credit Losses ($MM)	$0.62	$1.33	$(0.11)	$0.33
Net Income ($MM)	$8.51	$9.99	$10.73	$10.44
Diluted EPS ($)	$0.69	$0.80	$0.86	$0.84
Return on Avg Assets (%)	0.75%	0.82%	0.89%	0.87%
Return on Avg Equity (%)	10.47%	11.20%	11.82%	11.45%
NIM (tax-equivalent) (%)	3.20%	3.22%	3.29%	3.32%

Balance sheet and credit

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Total Assets ($B)	$4.62	$4.74	$4.83	$4.90
Total Loans ($B)	$3.65	$3.86	$3.98	$4.05
Total Deposits ($B)	$4.11	$4.19	$4.19	$4.30
Brokered Deposits ($B)	$0.00	$0.00	$0.00	$0.15
Borrowed Funds ($B)	$0.06	$0.06	$0.15	$0.09
Shareholders’ Equity ($B)	$0.33	$0.37	$0.36	$0.39
NPLs ($MM)	$18.53	$25.95	$26.69	$28.48
NPLs / Loans (%)	0.51%	0.67%	0.67%	0.70%
ACL / Loans (%)	1.66%	1.65%	1.59%	1.58%

Loan mix (outstanding, $MM)

Category	Q1 2024	Q3 2024	Q4 2024	Q1 2025
CRE Owner‑Occupied	$635.42	$660.06	$704.63	$708.65
CRE Non‑Owner‑Occupied	$1,524.17	$1,579.83	$1,563.20	$1,629.39
Commercial & Industrial	$417.60	$415.64	$479.82	$483.17
Commercial Construction	$583.71	$674.43	$679.97	$664.94
Residential Mortgages	$400.09	$424.03	$443.10	$450.46
Home Equity	$85.14	$95.98	$103.86	$105.78
Consumer	$8.18	$8.96	$8.32	$7.27
Total Loans	$3,654.32	$3,858.94	$3,982.90	$4,049.64

Additional KPIs and drivers

NIM drivers: 5 bps Q1 benefit from sale of NPLs (recoveries $461k; loan interest income $486k), alongside loan repricing and originations at higher rates (asset yields +21 bps YoY vs funding costs +9 bps) .
Provision bridge: $331k total provision; lower individually evaluated reserves YoY (improved collateral on two commercial relationships) offset by higher reserve for unfunded commitments (+$1.5M YoY) due to higher off‑balance sheet commitments .
Non-interest income: $5.19M (-6% YoY) on lower equity securities gains (-$766k YoY), partly offset by higher wealth management fees (+$247k YoY) .
Expenses: $29.95M (+4% YoY) on salaries/benefits (+$760k) and merger costs (+$290k) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per common share	Q2 2025 payment (declared Apr 15, 2025)	$0.24/quarter (2024 run‑rate)	$0.25/quarter (payable Jun 2, 2025)	Raised
Merger with Rockland Trust (INDB) – expected close	2H 2025	2H 2025 (as announced Dec 9, 2024)	2H 2025; EBTC shareholder approval on Apr 3, 2025	Maintained
Financial guidance (revenue, NIM, OpEx, tax, segment)	—	Not provided	Not provided	—

Earnings Call Themes & Trends

Note: An EBTC Q1 2025 earnings call transcript was not available in our sources; themes below synthesize management commentary from Q3–Q1 press releases.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Net Interest Margin and rates	NIM 3.22% (+3 bps QoQ); deposit cost headwinds; benefit from seasonal deposit	NIM 3.29% (+7 bps QoQ) benefiting from Fed cuts and yield curve flattening	NIM 3.32% (+3 bps QoQ); +5 bps from NPL sale; asset yields higher YoY	Improving sequentially
Funding mix & liquidity	“Primarily core funded” with no brokered deposits; total deposits down 1.4% QoQ	Deposits stable; borrowed funds increased at year-end to support loan growth	Deposits +$150M brokered; customer deposits -$37M; borrowed funds down 38% QoQ	Mix shift to brokered; lower wholesale borrowings
Loan growth	+2.4% QoQ; +13.4% LTM	+3.2% QoQ; third straight year of ~12% loan growth	+1.7% QoQ; +~11% LTM; CRE led	Moderating but positive
Credit quality	NPLs up to 0.67% (two construction loans); provision dynamics detailed	NPLs 0.67%; reserve on certain loans reduced after collateral improvements; negative provision	NPLs 0.70%; net recoveries; small provision; unfunded commitment reserve higher	Stable to slightly weaker NPLs; benign losses
Strategic/M&A	—	Definitive agreement to merge with INDB/Rockland; expected close 2H25	Shareholders approved April 3; integration planning progressing; synergies/culture attractive	On track toward close

Management Commentary

Strategic posture and drivers: “Loan growth was solid at 1.7% for the quarter and 11% for the last twelve months. Operating results compared to the prior year quarter were positively impacted by net interest income growth of 10% resulting from strong loan growth and an increase in net interest margin.” — Steven Larochelle, CEO .
Merger integration/tone: “Our anticipated merger with Rockland Trust has been well received…with shareholders approving the merger on April 3rd. The planning for our integration into Rockland Trust is going well and the anticipated synergies and cultural alignment of our two banks remains attractive.” — George Duncan, Executive Chairman & Founder .

Q&A Highlights

An EBTC Q1 2025 earnings call transcript was not available in our sources; no Q&A details or clarifications beyond the press release could be reviewed [Search returned none for EBTC; only third-party references without transcript].

Estimates Context

S&P Global consensus EPS and revenue for EBTC Q1 2025 were unavailable in our data environment; therefore, a beat/miss assessment versus Street cannot be determined at this time. If/when S&P data mapping becomes available, we will update this section accordingly.
Third-party trackers indicate no consensus was compiled for Q1 2025 (MarketBeat lists consensus as N/A) .
Actuals: Diluted EPS $0.84; Net interest income $38.69M; Non-interest income $5.19M; NIM 3.32% .

Key Takeaways for Investors

Margin trajectory is incrementally positive, supported by asset yield repricing and discrete recoveries; sustained rate stability or additional cuts (with curve normalization) could further aid funding costs and NIM mix over time .
Funding mix bears watching: brokered inflows substituted for wholesale borrowings, stabilizing liquidity while pressuring deposit costs; core franchise trends (ex-brokered) remain the key indicator for durability .
Credit metrics remain manageable with net recoveries and modest provisioning, though NPLs drifted up; management cites collateral valuation improvements on select relationships as a positive offset .
Expense control is solid but merger-related costs and wage inflation continue to pressure run-rate; integration synergies post-close with Rockland Trust could provide medium-term operating leverage .
Capital return signaled via dividend increase to $0.25; combined with merger progress (shareholder approval secured), near-term stock catalysts include regulatory approvals and updated closing timeline .
With no formal guidance and unavailable Street consensus, focus on sequential NIM, core deposit trends ex-brokered, and credit migration to gauge earnings power and potential estimate resets post-merger .
Trading lens: steady fundamentals plus merger visibility could support downside protection; watch funding mix headlines and any credit surprises as primary risk skew in the near term .

Sources: Q1 2025 8‑K and press release (including financial statements and selected data) ; Q4 2024 8‑K/press release ; Q3 2024 8‑K/press release ; Dividend press release (Apr 15, 2025) .

ENTERPRISE BANCORP INC /MA/ (EBTC)·Q1 2025 Earnings Summary