Executive Summary

Q4 2024 delivered sequential and year-over-year EPS growth on margin expansion and robust loan growth; diluted EPS rose to $0.86 vs $0.80 in Q3 and $0.64 in Q4 2023, supported by higher net interest income and a net release in credit loss provisions .
Non-GAAP tax-equivalent net interest margin expanded to 3.29% from 3.22% in Q3, as funding costs fell with Fed rate cuts and the yield curve flattened; total loans grew 3.2% QoQ to $3.98B while deposits were stable at $4.19B .
Credit metrics mixed: ACL-to-loans dipped to 1.59% (from 1.65% in Q3), while NPLs increased to 0.67% of loans, largely due to two commercial construction relationships placed on non-accrual earlier in 2024; charge-offs remained nominal .
Corporate actions: Board increased the quarterly dividend to $0.25 (from $0.24) and the Company announced a definitive merger agreement with Independent Bank Corp./Rockland Trust, targeted to close in 2H 2025 pending approvals—a potential stock catalyst tied to anticipated synergies and integration progress .

What Went Well and What Went Wrong

What Went Well

Margin expansion and earnings leverage: Tax-equivalent NIM rose 7 bps QoQ to 3.29% as funding costs fell 10 bps following ~100 bps in fed funds rate reductions in late 2024; diluted EPS increased to $0.86 on higher net interest income and lower provision expense .
Sustained loan growth: Total loans rose 3.2% QoQ and 12% YoY, with strength in CRE and construction, reflecting continued market share gains and relationship banking strategy .
Management confidence amid pending merger: “Loan growth was once again robust… margin expansion as we benefited from… Federal Reserve… rate cuts coupled with the flattening of the yield curve” (CEO Steven Larochelle) and “anticipated synergies and cultural alignment… are being confirmed” (Executive Chairman George Duncan) .

What Went Wrong

Elevated non-performing loans: NPLs increased to 0.67% of total loans (from 0.32% in Dec-23), driven by two commercial construction loans moving to non-accrual, raising investor focus on CRE/construction exposures .
Higher operating costs: Non-interest expense rose 6% YoY to $29.8M, including $1.1M in merger-related costs and higher salaries/benefits, partially offsetting earnings power .
Deposits flat QoQ and mix still cost-sensitive: Deposits were “relatively unchanged” at $4.19B; certificate balances remain elevated, sustaining higher deposit costs despite recent Fed cuts .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($USD Millions)	$36.518	$36.161	$38.020	$38.493
Total Non-Interest Income ($USD Millions)	$5.547	$5.628	$6.140	$5.616
Provision for Credit Losses ($USD Millions)	$2.493	$0.137	$1.332	$(0.106)
Total Non-Interest Expense ($USD Millions)	$28.224	$29.029	$29.353	$29.842
Income Before Income Taxes ($USD Millions)	$11.348	$12.623	$13.475	$14.373
Provision for Income Taxes ($USD Millions)	$3.441	$3.111	$3.488	$3.646
Net Income ($USD Millions)	$7.907	$9.512	$9.987	$10.727
Diluted EPS ($USD)	$0.64	$0.77	$0.80	$0.86
Net Interest Margin (tax-equivalent, Non-GAAP)	3.29%	3.19%	3.22%	3.29%

Segment breakdown – Loans (period-end):

Loan Category ($USD Millions)	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
CRE Owner-Occupied	$619.302	$660.063	$704.634
CRE Non-Owner-Occupied	$1,445.435	$1,579.827	$1,563.201
Commercial & Industrial	$430.749	$415.642	$479.821
Commercial Construction	$585.113	$674.434	$679.969
Residential Mortgages	$393.142	$424.030	$443.096
Home Equity	$85.375	$95.982	$103.858
Consumer	$8.515	$8.962	$8.319
Total Loans	$3,567.631	$3,858.940	$3,982.898

Deposits mix (period-end):

Deposit Category ($USD Millions)	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
Non-Interest Checking	$1,061.009	$1,064.424	$1,077.998
Interest-Bearing Checking	$697.632	$682.050	$699.671
Savings	$294.865	$279.824	$270.367
Money Market	$1,402.939	$1,488.437	$1,454.443
CDs ≤ $250K	$295.789	$375.055	$377.958
CDs > $250K	$225.287	$299.671	$307.261
Total Deposits	$3,977.521	$4,189.461	$4,187.698

KPIs and balance sheet:

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
ROA (%)	0.69%	0.82%	0.82%	0.89%
ROE (%)	10.21%	11.55%	11.20%	11.82%
ACL / Loans (%)	1.65%	1.65%	1.65%	1.59%
NPLs / Loans (%)	0.32%	0.47%	0.67%	0.67%
Total Assets ($USD Billions)	$4.466	$4.774	$4.743	$4.828
Borrowed Funds ($USD Millions)	$25.768	$61.785	$59.949	$153.136

Context and drivers vs prior periods:

QoQ: NIM expanded on 10 bps lower funding costs and slightly lower asset yields (down 3 bps), consistent with Fed rate reductions; loan growth funded by decreased other interest-earning assets and increased short-term advances late in December .
YoY: Net interest income +5% on higher loan yields and volume, partially offset by higher deposit costs and lower income on other interest-earning assets; effective tax rate fell to 25.4% from 30.3% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q1 2025 pay date (declared Jan 21, 2025)	$0.24 quarterly (2024 run-rate)	$0.25 quarterly to be paid Mar 3, 2025	Raised
Merger Timeline	2025	N/A	Transaction with Independent/Rockland Trust expected to close 2H 2025, subject to approvals	New disclosure

Note: The Company does not provide formal revenue, expense, margin, or tax-rate guidance in these materials; only dividend and merger timeline disclosures are available .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in the document catalog. Themes are derived from Q4, Q3, and Q2 press releases.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Rate environment & NIM	NIM stable at 3.19%; asset yields +12 bps; deposit costs +13 bps; inverted curve headwind	NIM up to 3.22%; asset yields +8 bps; deposit costs +6 bps	NIM up to 3.29%; funding costs −10 bps on Fed cuts; asset yields −3 bps	Improving margin backdrop
Funding & liquidity	Deposits +3.5% QoQ; loan/deposit 89%; cash with banks high	Deposits −1.4% QoQ; remained core funded; no brokered deposits	Deposits flat; borrowed funds up late-Dec to fund loans (avg borrowings lower than period-end)	Mixed: funding costs easing, mix still CD-heavy
Loan growth	Loans +3.1% QoQ; strength in CRE	Loans +2.4% QoQ; +13.4% LTM	Loans +3.2% QoQ; +12% YoY; CRE & construction key	Robust, sustained
Credit quality	NPLs 0.47%; nominal charge-offs	NPLs 0.67%; specific reserves added to downgraded construction loan	NPLs 0.67%; provision negative on reserve releases/commitment declines	NPLs elevated vs 2023; reserves stable-to-down
Corporate actions	Leadership transition to new CEO	Recognition for corporate citizenship; core funding emphasis	Dividend raised; merger timeline and synergy narrative	Accretive corporate catalysts

Management Commentary

CEO (Steven Larochelle): “Loan growth was once again robust at 3.2% for the quarter while operating results were positively impacted by margin expansion as we benefited from the impact of Federal Reserve Bank interest rate cuts coupled with the flattening of the yield curve.”
Executive Chairman & Founder (George Duncan): “The planning of our integration with [Rockland Trust] is going well and the anticipated synergies and cultural alignment of our two banks are being confirmed.”
Q3 perspective (CEO): “We continue to be primarily core funded and had no brokered deposits… net interest margin increased to 3.22%… benefited by 2 bps from a large seasonal deposit.”

Q&A Highlights

No Q4 2024 earnings call transcript was available to extract Q&A; therefore, no Q&A highlights or on-call guidance clarifications can be provided from primary sources in this period.

Estimates Context

S&P Global consensus estimates for EBTC were unavailable in our dataset due to a missing CIQ mapping, so we cannot quantify beats/misses vs Wall Street consensus for Q4 2024, Q3 2024, or Q2 2024 at this time. We attempted to retrieve “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for Q2–Q4 2024 but the mapping was missing in S&P Global Capital IQ (SPGI) for EBTC [SpgiEstimatesError].
Given the absence of S&P coverage in this tool, investors should treat estimate comparisons as not available rather than infer beats/misses.

Key Takeaways for Investors

Earnings quality improved: sequential EPS growth and NIM expansion reflect early benefits from Fed cuts; further easing could support additional funding cost relief if deposit pricing re-sets lower over time .
Growth engine intact: three consecutive years of ~12% loan growth highlight relationship-driven origination capacity; Q4 showed broad-based growth across CRE, construction, and residential .
Watch credit normalization in construction/CRE: NPLs up to 0.67% and specific reserve dynamics bear monitoring; however, net charge-offs remain minimal, and Q4 provision was a net release .
Funding mix still cost-sensitive: CDs and money markets remain elevated; as rates decline, pricing discipline and retention strategies will be key to protecting NIM .
Leverage and liquidity: period-end borrowed funds jumped to $153.1M (avg $37.8M) to support strong loan growth; monitor wholesale reliance and trajectory as deposits re-price .
Corporate catalysts: dividend increase supports yield; merger with Independent/Rockland Trust (target 2H 2025) introduces integration and synergy narrative that could drive multiple expansion if executed smoothly .
Near-term trading lens: Positive margin trajectory and stable deposits are near-term supports; headline risk around credit (construction loans/NPLs) and merger timeline/regulatory steps could add volatility .

Additional Data Appendix (select items)

Effective tax rate in Q4 2024 was 25.4% vs 30.3% in Q4 2023, aiding net income growth .
Wealth AUM/AUA reached $1.54B (+16% YoY) at year-end, supported by market gains; quarterly AUM/AUA up ~1.4% QoQ .
Book value per share was $28.98 at Q4 2024 vs $29.62 at Q3 2024, reflecting accumulated OCI and equity movements; equity increased 10% YoY to $360.7M .

Documents read in full: Q4 2024 8-K and press release (Exhibit 99.1) -; Q3 2024 press release - and 8-K -; Q2 2024 press release - and 8-K -; dividend press release .

ENTERPRISE BANCORP INC /MA/ (EBTC)·Q4 2024 Earnings Summary