EBTC News & Events

Reports Q4 book value per share $28.98. Reports Q4 CET1 capital ratio 10.38%. Reports Q4 net charge-offs .01%. CEO Steven Larochelle commented, "As we continue to work toward the upcoming completion of the proposed merger with Rockland Trust, I am pleased to announce that our team continued to deliver strong results in the fourth quarter. 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."

Independent Bank (INDB) and Enterprise Bancorp (EBTC) have signed a definitive merger agreement pursuant to which Enterprise will merge into Independent and Enterprise Bank will merge into Rockland Trust in a cash and stock transaction for total consideration valued at approximately $562M in aggregate, or $45.06 per share based on the Independent closing price of $71.77 on December 6. The merger agreement provides that Enterprise shareholders will receive 0.60 shares of Independent common stock and $2.00 in cash for each share of Enterprise common stock they hold. The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and to provide a tax-free exchange for Enterprise shareholders for the Independent common stock portion of the merger consideration they will receive. Independent anticipates issuing approximately 7.5M shares of its common stock and paying an aggregate amount of $27.1M in cash in the merger. The merger is expected to close in the second half of 2025 subject to customary closing conditions, including regulatory approvals and approval of Enterprise shareholders. No vote of Independent shareholders is required. The merger is expected to be approximately 16% accretive to Independent's earnings per share in 2026, the first full year of combined operations, assuming full phase-in of cost savings. Independent anticipates the transaction will meet its three year or less tangible book value earn back hurdle rate. Combined merger-related charges are expected to be approximately $61.2M before tax, in the aggregate. As part of the transaction, Independent plans to raise approximately $250M in subordinated debt prior to the transaction closing. Post close, board chair and Enterprise Bank founding member, George Duncan, will become an advisor to the independent board and Larochelle will serve as a consultant for Rockland Trust for one year. Additionally, Independent will appoint two Enterprise directors to its board following the merger. The boards of directors of each company have unanimously approved the transaction. Enterprise's directors and executive officers who currently own, in the aggregate, about 20.4% of Enterprise's outstanding shares have signed voting agreements pursuant to which they have agreed to vote their shares in favor of the merger.

Reports Q3 net interest income for the three months ended September 30, , amounted to $38M, a decrease of $482K , or 1%, compared to the three months ended September 30, 2023. The decrease was due primarily to increases in deposit interest expense of $7.7M and borrowings interest expense of $646K and a decrease in income on other interest-earning assets of $971K partially offset by an increase in loan interest income of $9.3M. Chief Executive Officer Steven Larochelle commented, "Our team continued to deliver strong results in the third quarter. Loan growth was 2.4% for the quarter and 13.4% over the past twelve months. Customer deposits, which were down slightly during the quarter, have increased 5.3% in 2024 and 3.2% over the last twelve months. We continue to be primarily core funded and had no brokered deposits at September 30 . Total borrowings were down $1.8M compared to June 30 and amounted to only $59.9M, or 1.3% of total assets. Higher deposit costs and the inverted yield curve continued to be a headwind, but net interest margin increased to 3.22% in the third quarter of 2024 from 3.19% in the prior quarter and benefited by 2 basis points from a large seasonal deposit." 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."