Enterprise Bancorp, Inc. (the “Company”) (NASDAQ: EBTC), parent of Enterprise Bank, announced record net income of $10.6 million, or $1.15 per diluted share, for the year ended December 31, 2010, compared to $7.9 million, or $0.96 per diluted share, for the year ended December 31, 2009, increases of $2.7 million, or 34%, and $0.19, or 20%, per diluted share. Net income for the three months ended December 31, 2010 amounted to $2.4 million, or $0.26 per diluted share, compared to $2.8 million, or $0.32 per diluted share, for the comparable 2009 period, decreases of $363 thousand, or 13%, and $0.06, or 19%, per diluted share.
The increase in net income for the year was primarily attributed to growth in loans, deposits and investment assets under management, and an increase in the net interest margin. Net income for the quarter ended December 31, 2010 was impacted by other real estate owned expenses for fair value adjustments and a decrease in net gains on sales of investment securities compared to the 2009 quarter.
As previously announced on January 18, 2011, the Company declared a quarterly dividend of $0.105 per share to be paid on March 1, 2011 to shareholders of record as of February 8, 2011. The quarterly dividend represents a 5% increase over the 2010 dividend rate.
Chief Executive Officer Jack Clancy commented, “We are very pleased with our financial results and numerous accomplishments in 2010. Deposits, excluding brokered deposits, have grown $127 million, or 11%, since December 31, 2009. During a period when many banks have experienced declining loan portfolios, our loan balances grew $60.5 million, or 6% since December 31, 2009. This growth has been a key factor in our reporting of record net income, which exceeded the $10 million mark for the first time in the Bank’s history.”
Mr. Clancy further stated, “In 2011, our focus will remain on increasing market share and on growing all of our business lines, including quality lending, deposits, investment assets managed and insurance services through continued organic growth and strategic expansion, as we seek to take advantage of market opportunities that continue to be presented to strong community banks. We remain committed to making investments in our branch network, technology, and most importantly in our employees, customers and communities, while positioning the Bank for long-term growth. We anticipate opening our third Southern New Hampshire location in Hudson within a few weeks.”