Executive Summary

Q2 2024 EPS was $0.77, up from $0.69 in Q1 2024 and slightly below $0.79 in Q2 2023; net income was $9.5M with ROA 0.82% and ROE 11.55% .
Net interest margin (tax-equivalent) held essentially flat at 3.19% versus 3.20% in Q1, though down from 3.55% a year ago; asset yields rose to 5.01% while cost of funds increased to 1.94% .
Balance sheet growth remained solid: total loans +3.1% QoQ to $3.77B, deposits +3.5% QoQ to $4.25B; liquidity strong with loan-to-deposit ratio at 89% and interest-earning deposits with banks exceeding wholesale funding by $89.6M .
Credit quality remains sound despite higher NPLs (0.47% of loans) tied to one commercial construction loan; net recoveries of $130K in Q2 .
Quarterly dividend maintained at $0.24 per share (payable Sep 3, 2024); no formal financial guidance provided; S&P Global Wall Street consensus estimates were unavailable for EBTC this quarter .

What Went Well and What Went Wrong

What Went Well

“We had a solid second quarter with strong net income and loan growth funded through core deposits… net interest margin was stable at 3.19%” — CEO Steven Larochelle .
Liquidity and funding quality were favorable: loan-to-deposit ratio 89%; interest-earning deposits with banks exceeded wholesale funding by $89.6M .
Non-interest income improved YoY excluding prior-year security sale losses; wealth management AUM/administration rose to $1.40B (+6% vs YE 2023) .

What Went Wrong

Deposit costs and cost of funds rose (+13 bps and +12 bps QoQ respectively), compressing NIM relative to prior year (3.19% vs 3.55% YoY) amid inverted yield curve .
Non-performing loans increased to $17.7M (0.47% of loans), driven primarily by one commercial construction loan placed on non-accrual in Q1 2024 .
Non-interest expense was up YoY (to $29.0M), though prior-year benefited from $3.4M Employee Retention Credits; excluding ERC, expenses were effectively flat YoY .

Financial Results

Core P&L and Margins

Metric	Q2 2023	Q1 2024	Q2 2024
Diluted EPS ($)	0.79	0.69	0.77
Net Income ($MM)	9.684	8.507	9.512
Net Interest Income ($MM)	38.093	35.190	36.161
Non-Interest Income ($MM)	2.819	5.495	5.628
Net Interest Margin (tax-equivalent, %)	3.55	3.20	3.19
Asset Yield (tax-equivalent, %)	4.53	4.89	5.01
Cost of Funds (%)	1.04	1.82	1.94
ROA (%)	0.88	0.75	0.82
ROE (%)	12.63	10.47	11.55
Provision for Credit Losses ($MM)	2.268	0.622	0.137

Note: Revenue in various third-party sources equals Net Interest Income + Non-Interest Income; components cited above .

Balance Sheet Highlights

Metric	Q2 2023	Q1 2024	Q2 2024
Total Loans ($MM)	3,345.667	3,654.322	3,768.649
Total Deposits ($MM)	4,075.598	4,106.119	4,248.801
Total Assets ($MM)	4,502.344	4,624.015	4,773.681
Shareholders’ Equity ($MM)	307.490	333.439	340.441

Segment (Loan Mix) Breakdown

Loan Category ($MM)	Q2 2023	Q4 2023	Q1 2024	Q2 2024
Commercial Real Estate	2,009.263	2,064.737	2,159.594	2,204.864
Commercial & Industrial	420.095	430.749	417.604	426.976
Commercial Construction	487.018	585.113	583.711	622.094
Residential Mortgages	346.523	393.142	400.093	413.323
Home Equity	74.374	85.375	85.144	93.220
Consumer	8.394	8.515	8.176	8.172
Total Loans	3,345.667	3,567.631	3,654.322	3,768.649

KPIs and Credit Quality

KPI	Q2 2023	Q1 2024	Q2 2024
Non-Interest Checking ($MM)	1,273.968	1,050.608	1,050.876
Money Market ($MM)	1,373.816	1,469.181	1,504.551
CDs ≤$250K ($MM)	244.114	337.367	358.149
CDs >$250K ($MM)	171.678	244.775	260.942
NPLs ($MM)	7.647	18.527	17.731
NPLs / Total Loans (%)	0.23	0.51	0.47
ACL / Loans (%)	1.70	1.66	1.65
Net (Recoveries)/Charge-offs ($000)	146	122	(130)
Cost of Deposits (%)	0.97	1.72	1.85
Asset Yield (%)	4.53	4.89	5.01
Loan-to-Deposit Ratio (%)	—	—	89

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share ($)	Q3 2024 (payable Sep 3; record Aug 13)	$0.24 (recent quarters)	$0.24	Maintained
Net Interest Margin	N/A	No formal guidance	No formal guidance	Maintained
Revenue/Margins/OpEx/Tax	N/A	No formal guidance	No formal guidance	Maintained

No formal quantitative guidance was issued; management reiterated strategy and highlighted stable NIM and strong liquidity .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was found in our document catalog; themes below reflect management’s press release commentary and recent quarters’ releases.

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
Deposit Costs & Mix	Costs rising; migration from checking/savings to MM/CD; Q4 NIM 3.29% . Q1 cost of deposits 1.72%; mix continued shifting .	Cost of deposits +13 bps QoQ; continued mix shift; NIM essentially flat QoQ .	Worsening YoY, Stable QoQ
Net Interest Margin	Q4: 3.29%; Q1: 3.20%; pressure from higher funding costs .	3.19% in Q2; “stable” per CEO .	Stable QoQ
Loan Growth (CRE/Construction)	Loans +5% QoQ in Q4; +2.4% vs Dec-23 in Q1; CRE and construction drove growth .	Loans +3.1% QoQ; CRE +$140.1M YTD .	Improving
Liquidity & Wholesale Funding	YE 2023 wholesale funding <1% of assets . Q1: borrowed funds rose to $63.2M .	Favorable liquidity; interest-earning deposits with banks > wholesale funding by $89.6M .	Improving
Credit Quality	Q4 NPLs 0.32%; Q1 NPLs up to 0.51% due to one construction loan on non-accrual .	NPLs 0.47%; net recoveries of $130K; ACL/loans 1.65% .	Mixed (elevated NPL vs YE, stable QoQ)
Leadership/Strategy	35-year milestone; focus on organic growth, technology, community . Q1 reiteration of balance sheet strength .	CEO transition completed; reaffirmed growth/investment priorities .	Stable/Positive

Management Commentary

“We had a solid second quarter with strong net income and loan growth funded through core deposits… net interest margin was stable at 3.19%. Our liquidity position was favorable… loan to deposit ratio at 89% and interest-earning deposits with banks exceeding wholesale funding by $89.6 million. Credit quality remained strong with nominal charge-offs year-to-date.” — CEO Steven Larochelle .
“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.” — CEO Steven Larochelle .
“Steve… is the perfect person for our Chief Executive Officer role, and I am excited to have him lead us forward.” — Executive Chairman & Founder George Duncan .
“We pride ourselves on… tailored solutions that lead to long-term relationships… which has contributed to our history of consistent growth.” — President Richard W. Main .

Q&A Highlights

No Q2 2024 earnings call transcript was available in our document catalog; therefore, no Q&A details or clarifications can be provided for this quarter [ListDocuments: earnings-call-transcript returned none].

Estimates Context

S&P Global Wall Street consensus estimates for EBTC Q2 2024 were unavailable due to missing CIQ mapping; as a result, we cannot quantify beats/misses versus consensus this quarter (Values retrieved from S&P Global)*.
Given the absence of consensus, investors should focus on sequential improvements (EPS $0.77 vs $0.69), stability in NIM (3.19%), and balance sheet growth as primary indicators of performance .

Key Takeaways for Investors

Earnings quality solid: EPS improved QoQ with flat NIM despite rate headwinds; focus on maintaining spread via disciplined funding .
Funding dynamics supportive: deposit growth (+3.5% QoQ) and liquidity metrics (interest-earning deposits > wholesale funding) reduce near-term rate risk and refinancing pressure .
Loan growth remains broad-based, with CRE and construction leading; monitor construction exposures given the non-accrual-driven NPL uptick .
Credit costs benign: net recoveries in Q2 and ACL coverage steady at 1.65%; watch NPL trajectory and any further migration from construction .
Expense discipline: YoY non-interest expense increase reflects prior-year ERC benefit; underlying run-rate appears stable; continued tech and talent investments likely keep OpEx consistent with growth .
Dividend consistency: $0.24 per share maintained, signaling confidence in earnings and capital position absent formal guidance .
CEO transition complete: continuity of strategy and culture under Larochelle should support organic growth and risk management focus near term .

Footnote: *S&P Global consensus data was unavailable for EBTC this quarter due to missing CIQ mapping; comparisons to estimates could not be performed.

ENTERPRISE BANCORP INC /MA/ (EBTC)·Q2 2024 Earnings Summary