Executive Summary

Q3 2024 EPS was $0.80, up from $0.77 in Q2 2024 and $0.79 in Q3 2023 as NIM ticked up to 3.22% and net interest income improved sequentially; non‑interest income also rose on equity gains and higher wealth and deposit fees .
Balance sheet growth remained healthy: total loans reached $3.86B (+2.4% QoQ), while deposits declined 1.4% to $4.19B; management emphasized core funding, no brokered deposits, and modest borrowings of $59.9M (1.3% of assets) .
Credit costs were contained (provision $1.33M), but non‑performing loans rose to 0.67% of total loans, driven by two commercial construction loans; specific reserves added on one downgraded commercial relationship were partly offset by reserve releases on another .
Wealth AUM/administration increased, with AUM $1.21B and AUA $0.303B at quarter‑end; ROAA/ROAE remained stable at 0.82%/11.20% .
Street consensus (S&P Global) for EBTC was unavailable in our dataset this quarter, so beat/miss vs. estimates cannot be assessed; company provided no formal financial guidance. S&P Global consensus unavailable note: GetEstimates mapping for EBTC was missing (no estimates retrieved).

What Went Well and What Went Wrong

What Went Well

Sequential earnings and margin improvement: EPS rose to $0.80 (from $0.77) and tax‑equivalent NIM increased to 3.22% (from 3.19%); management noted a 2 bps benefit from a large seasonal deposit .
Core‑funding profile intact: “primarily core funded,” no brokered deposits at 9/30/24; total borrowings modest at $59.9M (1.3% of assets) and down $1.8M QoQ .
Management tone confident on growth and positioning: “well positioned with a strong balance sheet… high‑quality loan portfolio and favorable liquidity, core deposit funding and capital,” per the CEO .

What Went Wrong

Deposit contraction in the quarter: total deposits fell 1.4% QoQ to $4.19B, reflecting ongoing pricing competition and mix shift toward higher‑cost accounts .
Funding cost pressures persisted: cost of funds rose to 1.99% (+5 bps QoQ), reflecting higher deposit costs and mix; NIM remains below prior‑year levels (3.22% vs. 3.46%) due to the inverted curve .
Asset quality migration: non‑performing loans increased to 0.67% of total loans (from 0.47% in Q2 and 0.34% YoY) tied to two commercial construction relationships; specific reserves of $3.4M established on one downgraded relationship .

Financial Results

Performance vs prior year and prior quarter

Metric	Q3 2023	Q2 2024	Q3 2024
Diluted EPS ($)	$0.79	$0.77	$0.80
Net Interest Income ($USD Millions)	$38.502	$36.161	$38.020
Total Non-Interest Income ($USD Millions)	$4.486	$5.628	$6.140
Total Interest & Dividend Income ($USD Millions)	$52.285	$56.864	$60.141
Net Interest Margin (TE) (%)	3.46%	3.19%	3.22%
ROAA (%)	0.85%	0.82%	0.82%
ROAE (%)	12.53%	11.55%	11.20%

Balance sheet snapshot

Metric	Q3 2023	Q2 2024	Q3 2024
Total Loans ($USD Billions)	$3.404	$3.769	$3.859
Total Deposits ($USD Billions)	$4.060	$4.249	$4.189
Borrowed Funds ($USD Millions)	$4.290	$61.785	$59.949
Total Shareholders’ Equity ($USD Millions)	$299.699	$340.441	$368.109

Key KPIs

KPI	Q3 2023	Q2 2024	Q3 2024
NPLs / Total Loans (%)	0.34%	0.47%	0.67%
ACL / Total Loans (%)	1.70%	1.65%	1.65%
Net (Recoveries) / Charge-offs ($USD Thousands)	$(12)	$(130)	$(7)
Book Value / Share ($)	$24.45	$27.40	$29.62
Tier 1 Capital / RWA (%)	10.61%	10.34%	10.36%
Avg. Yield on Interest-Earning Assets (TE) (%)	4.69%	5.01%	5.09%
Rate on Total Funding Liabilities (%)	1.31%	1.94%	1.99%

Loan portfolio composition (period-end)

Category ($USD Millions)	Q3 2023	Q2 2024	Q3 2024
CRE – Owner-Occupied	$618.903	$660.478	$660.063
CRE – Non Owner-Occupied	$1,413.555	$1,544.386	$1,579.827
Commercial & Industrial	$425.334	$426.976	$415.642
Commercial Construction	$501.179	$622.094	$674.434
Residential Mortgages	$362.514	$413.323	$424.030
Home Equity	$74.433	$93.220	$95.982
Consumer	$8.096	$8.172	$8.962
Total Loans	$3,404.014	$3,768.649	$3,858.940

Deposit mix (period-end)

Category ($USD Millions)	Q3 2023	Q2 2024	Q3 2024
Non-Interest Checking	$1,118.714	$1,041.771	$1,064.424
Interest-Bearing Checking	$727.817	$788.822	$682.050
Savings	$302.381	$294.566	$279.824
Money Market	$1,434.036	$1,504.551	$1,488.437
CDs ≤ $250K	$262.975	$358.149	$375.055
CDs > $250K	$214.480	$260.942	$299.671
Total Deposits	$4,060.403	$4,248.801	$4,189.461

Commentary on drivers

NIM expansion QoQ reflected higher asset yields (+8 bps to 5.09%) and a 2 bps benefit from a large seasonal deposit, partially offset by higher cost of funds (+5 bps to 1.99%) amid deposit pricing pressure and mix shift .
Provision reflected higher reserves on an individually evaluated commercial relationship (specific reserves $3.4M) offset by improved collateral valuation on another and a reduction in unfunded commitment reserves .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2024 (payable Dec 2, 2024)	$0.24 per share (recent run-rate)	$0.24 per share (declared 10/15/24)	Maintained
Financial guidance (revenue/margins/OpEx/tax)	2024	None provided	None provided	N/A

Company did not issue formal quantitative guidance on revenues, margins, operating expenses, OI&E, tax, or segment metrics in Q3 materials -.

Earnings Call Themes & Trends

Note: No Q3 2024 EBTC earnings call transcript was available via our sources; themes reflect Q1–Q3 press releases.

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
Funding costs & NIM	NIM 3.20% in Q1; deposit costs and inverted curve were headwinds . Q2 NIM 3.19% with ongoing funding pressure .	NIM 3.22%; asset yields +8 bps QoQ to 5.09%; cost of funds +5 bps; seasonal deposit +2 bps to NIM .	Stabilizing/slight improvement
Core deposits vs. wholesale	Liquidity favorable; loan/deposit ratio 89% in Q2; core-funded growth .	Primarily core funded; no brokered deposits; borrowings only $59.9M (1.3% of assets) .	Positive/unchanged
Loan growth	Q1–Q2: strong loan growth (CRE led) .	Loans $3.86B; +2.4% QoQ; +13.4% YoY per CEO .	Positive
Credit quality (CRE/construction)	NPL uptick tied to one construction credit in Q1/Q2 .	NPLs 0.67%; two construction loans on non‑accrual; specific reserves on one relationship .	Deteriorated modestly
Capital & AOCI	Equity +$4.3M in Q1; AOCI more negative . Q2 equity +$11.3M; AOCI more negative QoQ .	Equity $368.1M (+12% YTD); unrealized losses down to $80.8M (-21% vs 12/31/23) on lower term rates .	Improving (AOCI)
Strategy & tech investment	Ongoing investment in products and technology; geographic expansion .	Continued emphasis on expansion, products, and technology; culture and community engagement highlighted .	Consistent

Management Commentary

“Higher deposit costs and the inverted yield curve continued to be a headwind, but net interest margin increased to 3.22%... and benefited by 2 basis points from a large seasonal deposit.” — CEO Steven Larochelle .
“We continue to be primarily core funded and had no brokered deposits at September 30, 2024. Total borrowings… amounted to only $59.9 million, or 1.3% of total assets.” — CEO Steven Larochelle .
“I am particularly impressed that the team has been able to achieve such strong loan and deposit growth while stabilizing our net interest margin and without significant increases in wholesale funding.” — Executive Chairman & Founder George Duncan .

Q&A Highlights

We found no publicly available Q3 2024 EBTC earnings call transcript in our document set or web sources; therefore, no Q&A details or clarifications are available to summarize at this time (no “earnings-call-transcript” for EBTC found) [ListDocuments result: none].

Estimates Context

S&P Global/Capital IQ consensus for EBTC Q3 2024 was unavailable in our dataset (ticker mapping missing), so we cannot provide a beat/miss assessment vs. Street for EPS or revenue this quarter. As a result, no estimate comparison is shown.
Given the lack of formal company guidance and unavailable consensus, investors should focus on sequential trends (NIM improvement, non‑interest income strength) and credit developments noted by management .

Key Takeaways for Investors

Sequential improvement: EPS to $0.80 and NIM to 3.22% reflect better asset yields and a small seasonal boost; watch sustainability as seasonal benefits fade and funding costs remain elevated .
Core funding strength: No brokered deposits and minimal borrowings (1.3% of assets) underpin balance sheet resilience amid competitive deposit markets .
Credit watchlist: Non‑performers rose to 0.67% (two construction loans); reserve actions targeted a downgraded commercial relationship—monitor CRE/construction concentrations and migration .
Mix shift in deposits: QoQ deposit decline and higher CDs indicate continued pricing competition; cost of funds up 5 bps QoQ—margin trajectory depends on pricing discipline and mix .
Capital and AOCI improving: Shareholders’ equity up 12% YTD; unrealized losses receded with lower term rates, supporting TBV trajectory if rate backdrop holds .
Wealth momentum: Wealth AUM $1.21B and AUA $0.303B at quarter‑end; non‑interest income growth diversified earnings beyond NII .
Catalysts: Future updates on construction exposures and deposit trends, plus any stabilization in funding costs, are likely to drive narrative and valuation.

Sources: Q3 2024 press release and 8‑K (including full financial tables), Q2 and Q1 2024 press releases, and October 15 dividend press release - - - - .

ENTERPRISE BANCORP INC /MA/ (EBTC)·Q3 2024 Earnings Summary