Enterprise Bancorp, Inc. (the “Company”) (NASDAQ: EBTC), parent of Enterprise Bank, announced net income of $2.6 million for the quarter ended June 30, 2010, compared to $1.4 million for the quarter ended June 30, 2009, an increase of 89%. Net income for the six months ended June 30, 2010 amounted to $5.5 million compared to $2.9 million for the comparable 2009 period, an increase of 90%. Diluted earnings per share were $0.28 and $0.60 for the three and six months ended June 30, 2010 compared to $0.17 and $0.36 for each of the same periods in 2009, increases of 65% and 67% respectively.
The increase in net income is primarily attributed to growth in loans, deposits and investment assets under management during the last year, increased net interest income spreads, increased gains on securities in the current quarter, and for the 2009 periods, results were negatively impacted by the FDIC special assessment and impairment charges on investment securities.
As previously announced on July 20, 2010, the Company declared a quarterly dividend of $0.10 per share to be paid on September 1, 2010, to shareholders of record as of August 11, 2010. The quarterly dividend represents a 5.3% increase over the 2009 dividend rate.
Chief Executive Officer Jack Clancy commented, “We are pleased to continue to report strong financial results, while at the same time, investing to position Enterprise for continued long-term growth. Investments in our branch network, infrastructure, technology, and most importantly, in our people are positioning us to take advantage of current market opportunities now and into the future. Deposits, excluding brokered deposits, and loans have grown 17% and 6%, respectively, on an annualized basis since December 31, 2009. In early June, we moved from our temporary location in Derry, NH to our newly constructed full-service branch at 47 Crystal Ave., and we recently announced plans for a new office in Hudson, NH, which we anticipate opening by the end of the year. Hudson will be our third Southern New Hampshire location.”