GBank Financial Holdings Inc. Announces Third Quarter 2024 Financial Results
LAS VEGAS, Oct. 22, 2024 /PRNewswire/ — GBank Financial Holdings Inc. (the “Company”) GBFH, the parent company of GBank (the “Bank”), today reported record net income for the quarter ended September 30, 2024, of $5.0 million, or $0.37 per diluted share. This represents an increase from $1.8 million, or $0.14 per diluted share, compared to the third quarter of 2023. For the nine months ended September 30, 2024, net income was $13.4 million, or $1.00 per diluted share, compared to $7.4 million, or $0.57 per diluted share, for the same period in 2023.
Click here: Quarterly Detailed Financials and Key Metrics
Third Quarter 2024 Financial Highlights
- Record net income of $5.0 million and diluted earnings per share of $0.37
- Record net revenue of $16.1 million
- Record SBA Lending and Commercial Banking loan originations of $156.4 million, compared to $126.9 million for the second quarter of 2024, and $91.1 million, compared to the third quarter of 2023
- Gain on sale of loans of $2.8 million on loans sold of $71.4 million, compared to gain on sale of loans of $3.1 million on loans sold of $77.9 million for the second quarter of 2024 and gain on sale of loans of $763 thousand on loans sold of $22.7 million, compared to the third quarter of 2023
- Net interest margin of 5.00%
- Gross loan growth of $35.4 million, or 4% sequentially
- Total on-balance sheet guaranteed loans of $267.0 million, compared to $252.2 million as of June 30, 2024
- Total non-performing assets of $5.4 million, representing 0.52% of total assets
- Non-performing assets, excluding guaranteed portions, of $1.6 million, representing 0.15% of total assets
Edward M. Nigro, Executive Chairman, stated, “The record revenues and earnings for the third quarter and year-to-date of $0.37 and $1.00, respectively, are a reflection upon the continued expansion of our GBank business model; and, with the recently completed $20 million capital raise, we believe we are well-positioned to continue our growth.”
Private Placement of Common Stock
The Company announced the completion of its $20.0 million Private Placement Offering on October 16, 2024. Raymond James & Associates, Inc. and Janney Montgomery Scott LLC served as financial advisors on the private placement (presentation link). After deducting offering related expenses, net proceeds to the Company will be approximately $19.2 million.
Financial Results
Income Statement
Net interest income totaled $12.3 million for the third quarter of 2024, an increase of $911 thousand, or 8.0%, compared to $11.3 million for the second quarter of 2024, and an increase of $2.7 million, or 27.9%, compared to the third quarter of 2023. The increase in net interest income from the second quarter of 2024 was primarily due to higher average loan balances, partially offset by an increase in interest bearing deposit balances and rates. The increase in net interest income from the third quarter of 2023 was driven by increases in average loan balances and yields as well as increases in average investment security balances and yields. These favorable increases were partially offset by higher balances and rates on interest bearing deposits. The increase in investment yields through September 30, 2024, was the result of the purchase of $37.2 million of investment securities during the quarter to replace certain lower-yielding U.S. Treasury securities that matured during the first nine months of 2024.
The Company recorded a provision for credit losses on loans of $570 thousand for the third quarter of 2024, an increase of $287 thousand, compared to $283 thousand for the second quarter of 2024, and an increase of $344 thousand, compared to $226 thousand for the third quarter of 2023. The provision for credit losses on loans recorded in the third quarter of 2024 primarily reflects quarterly growth in non-guaranteed loans of $20.5 million, specific reserves on non-performing loans, as well as the impact of certain model adjustments relating to projected economic conditions.
The Company’s net interest margin for the third quarter of 2024 increased to 5.00%, compared to 4.82% for the second quarter of 2024, and decreased from 5.71%, compared to the third quarter of 2023. The increase in net interest margin from the second quarter of 2024 was primarily due to improved yields on loans and investment securities, partially offset by higher balances and rates on interest-bearing deposits. The decrease in net interest margin from the second quarter of 2023 was driven by higher balances and rates on interest-bearing deposits, which offset higher balances and rates on total earning assets.
Non-interest income was $3.9 million for the third quarter of 2024, compared to $4.2 million for the second quarter of 2024, and $1.2 million for the third quarter of 2023. The $307 thousand decrease in non-interest income from the second quarter of 2024 was primarily due to a $325 thousand decrease in income from gain on sale of loans resulting from a reduction in average pretax gain on sale margin and slightly lower sales volume quarter-over-quarter. The $2.7 million increase in non-interest income, compared to the third quarter of 2023, was driven by (i) a $2.1 million increase in income from gain on sale of loans, (ii) a $332 thousand increase in loan servicing income as the third quarter of 2023 reflected the write-off of certain loan servicing assets totaling $156 thousand relating to the repurchase of the guaranteed portion of previously sold SBA loans, and (iii) a $245 thousand increase in other income, primarily due to an increase in credit card net interchange fees of $230 thousand, compared to the third quarter of 2023.
Net revenue totaled $16.1 million for the third quarter of 2024, representing an increase of $604 thousand, or 3.9%, compared to $15.5 million for the second quarter of 2024. This also marks an increase of $5.3 million, or 49.4%, compared to $10.8 million for the third quarter of 2023.
Non-interest expense was $9.0 million for the third quarter of 2024, compared to $9.1 million for the second quarter of 2024 and $8.3 million for the third quarter of 2023. The Company’s efficiency ratio was 55.9%, compared to 58.9% for the second quarter of 2024 and 76.7% for the third quarter of 2023. The decrease in non-interest expense from the second quarter of 2024 is primarily due to a decrease of $257 thousand in employee compensation costs. The increase in non-interest expense from the third quarter of 2023 was driven by a $478 thousand increase in other expenses, primarily due to higher loan origination costs commensurate with the volume increase of loan originations.
Income tax expense was $1.5 million for the third quarter of 2024, compared to $1.4 million for the second quarter of 2024 and $516 thousand for the third quarter of 2023. The increase in income tax expense from both the second quarter of 2024 and the third quarter of 2023 is primarily due to increased earnings. Additionally, the increase in income tax expense from the third quarter of 2023 was due, in part, to an increase in the effective tax rate, which increased to 23.2% at September 30, 2024, from 22.5% at September 30, 2023.
Net income was $5.0 million for the third quarter of 2024, an increase of $339 thousand from $4.7 million for the second quarter of 2024, and an increase of $3.2 million from $1.8 million for the third quarter of 2023. Diluted earnings per share totaled $0.37 for the third quarter of 2024, compared to $0.35 for the second quarter of 2024 and $0.14 for the third quarter of 2023.
The Company had 159 full-time equivalent employees as of September 30, 2024, compared to 155 full-time equivalent employees as of June 30, 2024, and 163 full-time equivalent employees as of September 30, 2023.
Balance Sheet
Total gross loans were $847.6 million as of September 30, 2024, compared to $812.3 million as of June 30, 2024, and $524.1 million as of September 30, 2023. The increase in gross loans of $35.4 million from June 30, 2024, was primarily driven by an increase in commercial real estate loans of $15.3 million and guaranteed loans held-for-sale of $26.9 million. These increases were partially offset by a decrease of $12.1 million in guaranteed loans held-for-investment. The increase in gross loans of $323.6 million from September 30, 2023, was primarily driven by increases of $162.6 million in guaranteed loans held-for-investment, $122.9 million in commercial real estate loans, and $13.3 million in guaranteed loans held-for-sale. Total guaranteed loans as a percentage of gross loans were 31.5% as of September 30, 2024, compared to 31.0% as of June 30, 2024, and 17.4% as of September 30, 2023.
The Company’s allowance for credit losses totaled $7.9 million as of September 30, 2024, compared to $7.3 million as of June 30, 2024, and $6.6 million as of September 30, 2023. The allowance for loan losses as a percentage of total gross loans was 0.94% as of September 30, 2024, compared to 0.90% as of June 30, 2024, and 1.27% as of September 30, 2023. The allowance for loan losses as a percentage of total net loans, excluding guaranteed portions, was 1.36% as of September 30, 2024, compared to 1.31% as of June 30, 2024, and 1.54% as of September 30, 2023.
Deposits totaled $883.5 million as of September 30, 2024, an increase of $43.2 million from $840.4 million as of June 30, 2024, and an increase of $289.9 million from $593.6 million as of September 30, 2023. By deposit type, the increase from the prior quarter was driven by an increase of $22.0 million in savings and money market accounts and a $11.2 million increase in certificates of deposit. From September 30, 2023, certificates of deposit increased by $185.0 million, and savings and money market accounts increased by $98.1 million. Non-interest bearing deposits totaled $229.9 million as of September 30, 2024, an increase of $9.4 million from $220.4 million as of June 30, 2024, and an increase of $18.0 million from $211.9 million as of September 30, 2023.
The Company’s ratio of gross loans to deposits was 95.9% as of September 30, 2024, compared to 96.7% as of June 30, 2024, and 88.3% as of September 30, 2023.
The Company held no short-term borrowings as of September 30, 2024, compared to short term borrowings of $12.0 million as of June 30, 2024, and no short-term borrowings as of September 30, 2023. As of September 30, 2024, the Company had approximately $448.3 million in available borrowing capacity from the Federal Reserve Bank, the Federal Home Loan Bank, and through its various Fed Funds lines.
Subordinated notes totaled $26.1 million as of September 30, 2024, and June 30, 2024, compared to $26.0 million as of September 30, 2023.
Stockholders’ equity was $116.4 million as of September 30, 2024, compared to $110.9 million as of June 30, 2024, and $94.6 million as of September 30, 2023. The increase in stockholders’ equity from June 30, 2024, is attributable to net income earned during the quarter. The increase since September 30, 2023, is driven by both net income earned during the previous twelve months as well as an increase in common stock and paid-in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BankCard Services, LLC (“BCS“) during the second quarter of 2024.
The Company’s tangible common equity to tangible assets ratio was 11.1% as of September 30, 2024, compared to 11.0% as of June 30, 2024, and 13.0% as of September 30, 2023. The Bank’s Tier 1 leverage ratio was 13.08% as of September 30, 2024, compared to 12.9% as of June 30, 2024, and 16.2% as of September 30, 2023. The Company’s tangible book value per share was $8.91 as of September 30, 2024, an increase of 4.9% from $8.49 as of June 30, 2024, and an increase of 19.8% from $7.44 as of September 30, 2023. The increase in tangible book value per share from June 30, 2024, is attributable to net income, while the increase since September 30, 2023, is attributable to net income as well as the increase in common stock and paid-in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BCS during the second quarter of 2024.
Total assets increased 3.8% to $1.048 billion as of September 30, 2024, from $1.009 billion as of June 30, 2024, and increased 43.7% from $729.3 million as of September 30, 2023. The increase in total assets from June 30, 2024, was primarily driven by an increase in gross loans and investment securities, partially offset by a decrease in interest-bearing deposit cash equivalents. The increase in total assets from September 30, 2023, was primarily driven by an increase in gross loans, partially offset by a decrease in investment securities.
Asset Quality
The provision for credit losses on loans totaled $570 thousand for the third quarter of 2024, compared to $283 thousand for the prior linked quarter and $226 thousand for the third quarter of 2023. Net loan recoveries in the third quarter totaled $22 thousand, or 0.01% of average net loans (annualized), compared to net loan charge-offs of $29 thousand, or 0.01% of average net loans (annualized) in the second quarter of 2024 and net loan charge-offs of $764 thousand, or 0.62% of average net loans (annualized), in the third quarter of 2023.
Nonaccrual loans decreased $1.1 million to $5.4 million as of September 30, 2024, and increased $5.4 million from zero as of September 30, 2023. Loans past due 90 days and still accruing interest decreased to $27 thousand as of September 30, 2024, compared to $1.1 million at June 30, 2024, and no loans past due 90 days and still accruing interest as of September 30, 2023.
There was no other real estate owned as of September 30, 2024, or June 30, 2024, compared to $1.1 million as of September 30, 2023.
Total non-performing assets totaled $5.4 million as of September 30, 2024, a decrease of $2.2 million from $7.6 million as of June 30, 2024, and an increase of $4.3 million from $1.1 million as of September 30, 2023. Non-performing assets, excluding guaranteed portions, totaled $1.6 million as of September 30, 2024, a decrease of $646 thousand from $2.2 million as of June 30, 2024, and an increase of $490 thousand from $1.1 million as of September 30, 2023.
Loans past due 30-89 days and still accruing interest totaled $12.4 million as of September 30, 2024, of which $8.5 million was guaranteed, an increase from $1.1 million as of June 30, 2024, and $1.8 million as of September 30, 2023.
The ratio of total non-performing assets to total assets was 0.52% as of September 30, 2024, compared to 0.75% as of June 30, 2024, and 0.15% as of September 30, 2023. The ratio of non-performing assets, excluding guaranteed portions, to total assets was 0.15% as of September 30, 2024 and 2023, compared to 0.22% as of June 30, 2024.
Segment Highlights
SBA Lending and Commercial Banking
Loan originations by the Bank’s SBA Lending and Commercial Banking Divisions totaled $156.4 million, compared to $126.9 million for the second quarter of 2024 and $91.1 million for the third quarter 2023. Loan sale volume decreased by 8% to $71.4 million, compared to $77.9 million for the second quarter of 2024, and increased by 214% from $22.7 million, compared to the third quarter of 2023. Gain on sale of loans decreased by 10% to $2.8 million, compared to $3.2 million for the second quarter of 2024, and increased 272% from $763 thousand for the third quarter of 2023. The average pretax gain on sale of loans margin was 3.64%, compared to 4.36% for the second quarter of 2024 and 3.36% for the third quarter of 2023.
Gaming FinTech
GBank’s partner, BCS, has been actively developing its pipeline of Pooled Player and Pooled Consumer Accounts “Powered by PIMS and CIMS”™. BCS recently completed onboarding of two of its programs. First, the US prepaid program, Mastercard Express, is designed to support and accelerate growth of fintech companies by providing the tools and resources necessary to scale and innovate within the payments industry. BCS, GBank, and i2c shall be key partners with Mastercard in the expansion of gaming, medical, and government related providers. Mastercard and i2c believe that this program shall enable accelerating products to market with unprecedented speed. Second, BoltBetz executed its BCS Agreement that provides PPA account structure and RTP/RfP payments loading and offloading systems to their Konami integrated application, facilitating cashless slot wagering. It is anticipated that both programs shall be approved and activated by GBank in the fourth quarter of 2024.
BCS and GBank now have 16 active prepaid access and PPA/PCA clients. Currently, BCS and GBank are conducting due diligence for 6 new prepaid access and PPA/PCA clients, with anticipated onboarding in future quarters. Gaming FinTech deposits averaged $31.7 million for the third quarter of 2024, compared to $32.4 million for the second quarter of 2024.
Credit Card
The Bank launched its GBank Visa Signature® Card in the second quarter of 2023. The GBank Visa Signature® Card targets prime and super-prime consumers, offering 1% cash rewards on gaming transactions and 2% cash rewards on all other purchases. Since the product launch in 2023, the Bank has entered into eight marketing referral agreements as of September 30, 2024.
Credit card charge transactions were $13.9 million for the third quarter of 2024, compared to $7.0 million for the second quarter of 2024 and $1.1 million for the first quarter of 2024. Credit card balances were $1.2 million as of September 30, 2024, compared to $919 thousand as of June 30, 2024. Total open credit card lines were $4.9 million as of September 30, 2024, compared to $3.7 million as of June 30, 2024. Through September 30, 2024, and since launch, the Bank has processed over $21.0 million in gaming transactions through its credit card product.
Non-voting Equity Investment in BankCard Services, LLC
On June 26, 2024, the Company announced the acquisition of a 32.99% non-voting equity interest in BCS. This acquisition was completed by exchanging 231,508 shares of restricted, non-voting GBFH common stock for 143,371 shares of non-voting BCS common stock. The GBFH non-voting stock must be held by BCS for a minimum of one year and can only be converted into voting shares upon a disposition by BCS, in accordance with applicable Federal Reserve regulations.
Earnings Call
The Company will host its Q3 2024 quarterly earnings call on Wednesday, October 23, 2024, at 10:00 a.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance.
Interested parties may join online, via the ZOOM app on their smartphones, or by telephone:
- ZOOM Conference ID 826 3030 7240
- Passcode: 549549
Joining by ZOOM Conference (audio only):
Log in on your computer at
https://us02web.zoom.us/j/82630307240?pwd=TU4yZXJqMEc2VGZoUm5rRTl0OVFxdz09
or use the ZOOM app on your smartphone.
Joining by Telephone
Dial (408) 638-0968. The conference ID is 826 3030 7240. Passcode: 549549.
Click here to learn more about GBank Financial Holdings Inc.
Cautionary Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company’s goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions. These statements are based upon the current belief and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include, but are not limited to: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; regulatory considerations; our ability to recognize the expected benefits and synergies of our completed acquisitions; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.
View original content:https://www.prnewswire.com/news-releases/gbank-financial-holdings-inc-announces-third-quarter-2024-financial-results-302283799.html
SOURCE GBank Financial Holdings Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trump Vows To 'Make Interest On Car Loans Fully Tax-Deductible' For Made In America Vehicles
Former President Donald Trump has proposed making the interest on car loans tax-deductible for vehicles manufactured in the United States. This move is seen as an attempt to bolster the American auto industry and attract voters.
What Happened: Trump made this announcement on Tuesday during a rally in North Carolina. He stated that if elected, he would make the interest on car loans fully tax-deductible for vehicles produced in the U.S., reported Reuters.
“I will make interest on car loans fully tax-deductible,” Trump said. “I am only going to do it if they build that particular product – namely an automobile – in the United States.”
With the presidential election just two weeks away, Trump’s proposal is seen as a strategic move to win over voters.
Why It Matters: Trump’s proposal comes amid a tight race between him and Democratic Vice President Kamala Harris. Both candidates have been making economic pledges to appeal to voters.
This is not the first time Trump has proposed economic incentives to boost the American auto industry. Earlier in September, he pledged to impose 100% tariffs on cars made in Mexico if elected. He also suggested that car assembly work in the U.S. is simple, drawing criticism from labor advocates and Democratic officials.
However, economists have warned that Trump’s economic policies could lead to higher inflation and deficits compared to Harris’ policies, as per a survey.
Read Next:
Image Via Flickr
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Texas Instruments Says It’s Nearing Recovery After Sales Slump
(Bloomberg) — Texas Instruments Inc. Chief Executive Officer Haviv Ilan said that customers are working through excess inventory and the timing is right for an order recovery following eight straight quarters of revenue declines.
Most Read from Bloomberg
Speaking on a conference call after delivering third-quarter results, Ilan said that three of TI’s main markets have already begun to rebound, but its biggest sales sources — industrial and automotive chips — are still suffering from a glut of inventory.
“We really need the broad industrial market and the automotive market to join,” he said. When asked to predict a rebound he replied, “It’s about time, but we haven’t seen it yet.”
Investors seized on the optimistic tone and sent the shares up about 3% in late trading. The stock had been down after Texas Instruments posted its results, which included a tepid forecast for the fourth quarter.
Sales in that period will be $3.7 billion to $4 billion, the company said. Analysts, on average, estimated $4.08 billion, according to data compiled by Bloomberg. Profit will be $1.07 to $1.29 a share, compared with an average projection of $1.35.
The Dallas-based company is the biggest maker of chips that perform simple but vital functions in a wide range of electronic devices. While the chipmaker’s executives are typically reluctant to give industrywide long-term projections, investors use its forecasts as indicators of demand across the industry.
Texas Instruments shares, up 14% this year, closed at $193.97 on Tuesday.
In the third quarter, revenue fell 8.4% to $4.15 billion, marking the eighth consecutive contraction. Analysts projected $4.12 billion. Profit was $1.47 a share, compared with an estimate of $1.37 per share.
Heading into Texas Instruments earnings, chip companies had been giving conflicting signals about the industry. Equipment maker ASML Holding NV reported weak orders for its gear and said customers are becoming more cautious. Taiwan Semiconductor Manufacturing Co., meanwhile, delivered a strong forecast. For both companies, demand for advanced chips used in artificial intelligence computing is a bright spot.
The biggest chunk of Texas Instruments’ revenue comes from makers of industrial equipment and vehicles, which together account for more than 70% of sales. Its products provide a variety of functions — some as simple as registering button pushes and converting power.
The 2025 tax brackets are here. How much will you owe?
The IRS just released its inflation-adjusted tax brackets for 2025 — and it’s the smallest increase in four years. Income thresholds for each tax bracket will rise by about 2.8% in the new year, compared to 5.4% in 2024 and 7% for 2023. The modest increase reflects the cooling pace of inflation since the peak years of the pandemic.
The tax brackets for 2025 apply to taxes due in 2026. To calculate your taxes due on April 15, 2025, you’ll use 2024 tax brackets.
Understanding how tax brackets work can get a bit confusing, but essentially, your income is taxed at several different rates that increase as you earn more money. Let’s say, for example, that you’re a single filer who earns $50,000 in 2025. Even though you’d fall into the 22% tax bracket, you won’t pay a flat tax rate of 22%.
Instead, your income would be taxed as follows:
-
10% of the first $11,925 = $1,192.50
-
12% of the next $36,529 ($48,475-$11,926) = $4,383.48
-
22% of the last $1,524 ($50,000-$48,476) = $335.28
Total tax bill: $5,911.26
Even though you’re in the 22% tax bracket, your effective tax rate is just under 12%. You may be able to lower your tax bill even more if you qualify for tax credits and deductions.
Read more: 2024-2025 federal income tax brackets and rates
The standard deduction is an amount you can subtract from your taxable income, even if you don’t have deductible expenses. Most taxpayers opt for the standard deduction vs. itemizing.
The standard deduction will increase to the following amounts in 2025:
-
Single filers: $15,000
-
Heads of household: $22,500
-
Married couples filing jointly: $30,000
-
Married couples filing separately: $15,000
Going back to our example of a single filer who earns $50,000 in 2025: If you took the standard deduction of $15,000, your taxable income would drop to just $35,000 ($50,000-$15,000).
The IRS also announced a few more inflation adjustments that are coming next year.
The earned income tax credit, or EITC, is a tax credit aimed at helping low- to moderate-income workers and their families. The maximum credit for taxpayers with three or more qualifying children jumps to $8,046 in 2025, up from $7,830 in 2024. You may be able to qualify for a smaller credit if you have fewer than three children (or even no tax dependents at all), depending on your income.
A health flexible spending account, or FSA, is an employer-sponsored account that lets you set aside pre-tax money for IRS-approved health expenses. The contribution limit for health FSAs will increase by $100, from $3,200 in 2024 to $3,300 in 2025.
Cathie Wood-Led Ark Dumps $5.8M Worth Of Robinhood Shares Amid Forecasts Of A Potential Rally From Analysts
On Tuesday, Cathie Wood’s Ark Invest made significant trades, with a notable sell-off in Robinhood Markets Inc HOOD.
The Robinhood Trade
Ark Invest sold a total of 210,483 shares of Robinhood from its ARK Innovation ETF ARKK and ARK Next Generation Internet ETF ARKW, marking a significant reduction in its holdings of the stock. The value of this trade, based on Robinhood’s closing price of $27.41 on Tuesday, is approximately $5.8 million. This move comes amidst a backdrop of changing analyst forecasts for Robinhood, with some predicting a potential rally of around 12% for the stock.
However, this isn’t the first time that Ark Invest has reduced its stake in Robinhood. Earlier in the week, Cathie Wood had already trimmed Ark’s holdings in the company, sparking discussions among investors about whether to follow her lead or stay put. As Benzinga noted, the reasons behind selling a stock can be varied and often more nuanced than market reactions might suggest.
Other Key Trades:
- Ark Invest sold 34,392 shares of Moderna Inc (MRNA) from its ARKG fund. The firm bought shares of Tempus AI Inc (TEM) for its ARKG fund and ARKK fund.
- Ark purchased 7,609 shares of CRISPR Therapeutics AG (CRSP) for its ARKG fund and also for its ARKK fund. The investment manager also added shares of Cerus Corp (CERS) to its ARKG fund and ARKK funds.
Read Next:
This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The bond market is selling off after traders got their Fed forecasts wrong
-
Bonds have sold off as traders reassess the path of Fed Reserve rate cuts.
-
Strong economic data and the potential for a Trump win have pushed interest rates higher.
-
The Fed may keep rates unchanged next month, and the October jobs report is a key indicator to watch.
The bond market is in sell-off mode as traders reassess the path of interest rate cuts from the Federal Reserve.
Strong economic data in recent weeks and the potential for a Donald Trump victory in November have helped push bond yields higher and prices lower, with traders adjusting their outlooks after pricing in aggressive rate cuts following the Fed’s big 50 basis point move last month.
The 10-year US Treasury yield jumped to 4.22% on Tuesday, representing its highest level since July and a sharp increase from the 3.62% level it traded at in mid-September when the Fed delivered a jumbo rate cut.
The Bloomberg Aggregate Bond Index dropped 3% since mid-September, and long-term treasuries, as measured by the iShares 20+ Year Treasury Bond ETF, are down about 9% over the same time period.
On the economic front, investors have focused on a recent string of hot data, which has whittled the odds of swift, steep cuts from the central bank at upcoming meetings.
A strong September jobs report showing a stunning 254,000 jobs added completely erased the odds of another 50 basis point cut.
The jobs data, combined with solid retail sales, slightly hotter-than-expected inflation, and the Atlanta Fed’s prediction of third-quarter GDP growth of 3.4%, has forced markets to rethink how eager the Fed will be to cut borrowing costs in order to support the economy.
Apollo chief economist Torsten Sløk argued in a note over the weekend that officials will “reverse course” and keep interest rates unchanged at next month’s meeting of the Federal Open Market Committee.
“The US consumer continues to do well, driven by solid job growth, strong wage growth, and high stock prices and home prices,” Sløk said.
Sløk says the key indicator to watch is the upcoming October jobs report.
“Look at the next nonfarm payrolls report. If we do get that at 150 or 200,000, we could easily get a scenario where the Fed will basically have to reverse course and begin to stay on hold,” Sløk told Bloomberg on Monday.
That would be a big surprise to traders, with the market pricing in a 90% chance of a 25-basis point interest rate cut from the Fed next month.
Fed officials, for their part, have indicated they’re likely to move cautiously, though more rate cuts are still their base case.
Motion Control Market Size is Expected to Reach US$ 35.52 Billion by 2033 | Fact.MR Report
Rockville, MD, Oct. 22, 2024 (GLOBE NEWSWIRE) — The global motion control market is predicted to touch US$ 35.52 billion by 2033, advancing at 5.1% CAGR from 2023 to 2033, as per the latest industry analysis by Fact.MR, a market research and competitive intelligence provider.
The market is expanding steadily as a result of numerous major factors. Automation and industrialization are in high demand across many industries. Companies are looking for ways to increase their manufacturing operations’ productivity, efficiency, and quality. Motion control systems provide precise positioning, speed control, and machinery synchronization, allowing industries to automate activities and optimize production lines.
Developments in motion control technologies, such as motor design, sensor technology, and control algorithms, have broadened the application possibilities and enhanced the appeal of motion control systems. These technical improvements have increased the performance, dependability, and integration capabilities of motion control systems, resulting in their widespread acceptance in industries around the world.
Integration of motion control systems with emerging technologies like the Industrial Internet of Things (IIoT) and Industry 4.0 is contributing to market expansion. Industries can acquire and analyze data, enable predictive maintenance, and accomplish real-time monitoring and control by linking motion control systems to networks. This integration enables streamlined operations, increased efficiency, and less downtime.
For More Insights into the Market, Request a Sample of this Report:
https://www.factmr.com/connectus/sample?flag=S&rep_id=335
Key Takeaways from Market Study:
- The global motion control market amounted to US$ 21.60 billion in 2023.
- Worldwide demand for motion control systems is anticipated to rise at a CAGR of 5.1% over the next ten years.
- The global market is set to garner US$ 35.52 billion by 2033.
- The Chinese market is expected to reach US$ 7.74 billion by 2033.
- Demand for AC servo motors is estimated to expand at a CAGR of 5.8% during the study period.
“Motion control systems are becoming more popular as the demand for automation and industrialization grows across industries. Companies are seeking ways to increase efficiency, productivity, and quality in their production processes, which has led to a growth in the use of motion control systems. Furthermore, expanding industries in emerging economies and favourable government measures to boost automation are driving market expansion,” says a Fact.MR analyst.
Leading Players Driving Innovation in the Motion Control Market:
The global motion control market players are Siemens AG, ABB Group, Schneider Electric, Rockwell Automation Inc, STM Microelectronics, Eaton Corp. Plc, Galil Motion Control, Kollmorgen Corp., Mitsubishi Electric Corp., Moog Inc.
Regional Analysis:
Asia Pacific, particularly China, India, and South Korea, is witnessing significant growth in the global motion control market. In China, rapid industrialization, government support for automation, and a thriving manufacturing sector are driving the demand for motion control systems.
Renowned for its technological prowess, Japan is a major market in the region. The country’s advanced manufacturing capabilities, particularly in the automotive and electronics sectors, necessitate precise motion control, leading to increased adoption of motion control systems. Moreover, South Korea, with its strong presence in the electronics and robotics industries, also contributing to market growth.
Overall, the Asia Pacific region, including China, Japan, and South Korea, is a key driver of the global motion control market, fueled by industrial growth, technological advancements, and the increasing adoption of automation in various sectors.
Get Customization on this Report for Specific Research Solutions:
https://www.factmr.com/connectus/sample?flag=S&rep_id=335
Motion Control Industry News:
- In January 2022, Moen introduced the Smart Faucet, which features cutting-edge motion control technology for completely touchless operation. With the innovative touchless technology in the next-generation Smart Faucet with motion control, users may regulate the water flow and temperature with only a few hand gestures.
More Valuable Insights on Offer:
Fact.MR, in its new offering, presents an unbiased analysis of the global motion control market, presenting historical demand data (2018 to 2022) and forecast statistics for the period of 2023 to 2033.
The study divulges essential insights on the market based on component type (motion controllers, AC drives, AC servo motors, sensors & feedback services, actuators & mechanical systems), end use (food & beverages, aerospace & defense, automotive, semiconductor & electronics, metals & machinery manufacturing, medical, printing & paper), and application (metal cutting, metal forming, material handling equipment, semiconductor machinery, packaging & labelling, robotics), across five major regions (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).
Check out More Related Studies Published by Fact.MR:
Drone Market: Sales are evaluated to climb to US$ 223.66 billion by the end of 2034, up from US$ 29.96 billion in 2024. The global drone market size is projected to expand at a remarkable CAGR of 22.3% from 2024 to 2034.
Automotive Headliner Market: Size is approximated at US$ 9.9 billion in 2024 and is forecasted to increase at a CAGR of 4% to reach US$ 14.6 billion by 2034-end.
Motorcycle Accessory Market: Size is poised to reach US$ 8.81 billion in 2024. The market has been projected to expand at a CAGR of 3.6% and reach a valuation of US$ 21.05 billion by the end of 2034.
Heavy Duty Truck Market: Sales are forecasted to increase at a CAGR of 4.6% and reach US$ 305.46 billion by 2034-end.
Third-Party Logistics Market: Demand for 3PL logistics solutions is projected to reach a market value of US$ 2.5 billion by 2034, registering a CAGR of 7.6% from 2024 to 2034.
Autonomous Farm Equipment Market: Size is anticipated to increase from a value of US$ 1.1 billion in 2024 to US$ 4.59 billion by 2034, as revealed in the recently updated industry report by Fact.MR.
About Us:
Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning.
With its unwavering dedication to providing reliable market intelligence, FACT.MR continues to assist companies in navigating dynamic market challenges with confidence and achieving long-term success. With a global presence and a team of experienced analysts, FACT.MR ensures its clients receive actionable insights to capitalize on emerging opportunities and stay competitive.
Contact:
11140 Rockville Pike
Suite 400
Rockville, MD 20852
United States
Tel: +1 (628) 251-1583
Sales Team: sales@factmr.com
Follow Us: LinkedIn | Twitter | Blog
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Enterprise Bancorp, Inc. Announces Third Quarter Financial Results
LOWELL, Mass., Oct. 22, 2024 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. EBTC, parent of Enterprise Bank, announced its financial results for the three months ended September 30, 2024. Net income amounted to $10.0 million, or $0.80 per diluted common share, for the three months ended September 30, 2024 compared to $9.5 million, or $0.77 per diluted common share, for the three months ended June 30, 2024 and $9.7 million, or $0.79 per diluted common share, for the three months ended September 30, 2023.
Selected financial results at or for the quarter ended September 30, 2024 compared to June 30, 2024 were as follows:
- The returns on average assets and average equity were 0.82% and 11.20%, respectively.
- Tax-equivalent net interest margin (non-GAAP) (“net interest margin”) was 3.22%, an increase of 3 basis points.
- Total loans amounted to $3.86 billion, an increase of 2.4%.
- Total deposits amounted to $4.19 billion, a decrease of 1.4%.
- Wealth assets under management and administration amounted to $1.51 billion, an increase of 8.5%.
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, 2024. Total borrowings were down $1.8 million compared to June 30, 2024, and amounted to only $59.9 million, 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.”
Executive Chairman & Founder George Duncan stated, “I would like to congratulate Steve, who completed his first quarter as CEO of Enterprise, and the whole team for a very successful quarter. 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. I firmly believe this is a testament to our relationship based, sales and service culture partnered with our strong commitment to community outreach and involvement.”
Mr. Duncan added, “On September 5th, we were once again recognized at the Boston Business Journal’s Corporate Citizenship Summit for our significant contributions in employee volunteerism and corporate philanthropy. In particular, I am very proud that we ranked 2nd in the Commonwealth of Massachusetts for the highest average of volunteer hours per employee.”
Net Interest Income
Net interest income for the three months ended September 30, 2024, amounted to $38.0 million, a decrease of $482 thousand, or 1%, compared to the three months ended September 30, 2023. The decrease was due primarily to increases in deposit interest expense of $7.7 million and borrowings interest expense of $646 thousand and a decrease in income on other interest-earning assets of $971 thousand, partially offset by an increase in loan interest income of $9.3 million.
The increase in interest expense during the period was attributed primarily to an increase in the cost of funds and changes in deposit mix, while the increase in interest income during the period was due primarily to loan growth and higher market interest rates.
Net Interest Margin
Net interest margin was 3.22% for the three months ended September 30, 2024, compared to 3.19% for the three months ended June 30, 2024 and 3.46% for the three months ended September 30, 2023.
Asset yields for the third quarter of 2024 were 5.09%, an increase of 8 basis points compared to the second quarter of 2024, due primarily to new loan originations, loans repricing and an increase in the average balance of other interest-earning assets, which resulted mainly from deposit inflows during the period. Average total loans increased $105.3 million, or 3%, and average other interest-earning assets increased $57.6 million, or 46%, compared to the second quarter of 2024.
The cost of funds for the third quarter of 2024 was 1.99%, an increase of 5 basis points compared to the second quarter of 2024. During the third quarter of 2024, average total deposits increased $128.8 million, or 3%, and the cost of deposits increased 6 basis points, compared to the second quarter of 2024. The increase in average total deposits was comprised of increases in average lower-cost checking account balances of $59.4 million, or 3%, which was driven primarily by a large seasonal deposit, and higher-cost savings, money market and certificate of deposit account balances of $69.4 million, or 3%.
Provision for Credit Losses
The provision for credit losses for the three-month periods ended September 30, 2024 and September 30, 2023 are presented below:
| Three months ended | Increase / (Decrease) | |||||||||||
| (Dollars in thousands) | September 30, 2024 |
September 30, 2023 |
||||||||||
| Provision for credit losses on loans – collectively evaluated | $ | (663 | ) | $ | (1,518 | ) | $ | 855 | ||||
| Provision for credit losses on loans – individually evaluated | 2,311 | 2,512 | (201 | ) | ||||||||
| Provision for credit losses on loans | 1,648 | 994 | 654 | |||||||||
| Provision for unfunded commitments | (316 | ) | 758 | (1,074 | ) | |||||||
| Provision for credit losses | $ | 1,332 | $ | 1,752 | $ | (420 | ) | |||||
The increase in the provision for credit losses on loans of $654 thousand was due primarily to a net increase in reserves on individually evaluated loans. The increase in reserves on individually evaluated loans for the three months ended September 30, 2024 was driven by one individually evaluated commercial relationship which was downgraded, placed on non-accrual and assigned specific reserves of $3.4 million, partially offset by a reduction of $1.2 million in specific reserves resulting from a commercial relationship that experienced improvement in its collateral valuation during the period. The reduction in the provision for unfunded commitments of $1.1 million was driven primarily by a decrease in off-balance sheet commitments during the period.
Non-Interest Income
Non-interest income for the three months ended September 30, 2024, amounted to $6.1 million, an increase of $1.7 million compared to the three months ended September 30, 2023. The increase in non-interest income was due primarily to increases in gains on equity securities, wealth management fees and deposit and interchange fees.
Non-Interest Expense
Non-interest expense for the three months ended September 30, 2024, amounted to $29.4 million, an increase of $1.0 million, or 4%, compared to the three months ended September 30, 2023. The increase in non-interest expense was due primarily to an increase in salaries and employee benefits expense of $938 thousand, or 5%.
Balance Sheet
Total assets amounted to $4.74 billion at September 30, 2024, compared to $4.47 billion at December 31, 2023, an increase of 6%.
Total investment securities at fair value amounted to $632.0 million at September 30, 2024, compared to $668.2 million at December 31, 2023. The decrease of 5% during the nine months ended September 30, 2024 was largely attributable to principal pay-downs, calls and maturities. Unrealized losses on debt securities amounted to $80.8 million at September 30, 2024, compared to $102.9 million at December 31, 2023, a decrease of 21% that resulted from lower term interest rates.
Total loans amounted to $3.86 billion at September 30, 2024, compared to $3.57 billion at December 31, 2023. The increase of 8% during the nine months ended September 30, 2024 was due primarily to increases in commercial real estate and construction loans of $175.2 million and $89.3 million, respectively.
Total deposits amounted to $4.19 billion at September 30, 2024, compared to $3.98 billion at December 31, 2023. The increase of 5% during the nine months ended September 30, 2024 was due primarily to increases in money market and certificate of deposit balances of $85.5 million and $153.6 million, respectively.
Total borrowed funds amounted to $59.9 million at September 30, 2024, compared to $25.8 million at December 31, 2023. The increase during the nine months ended September 30, 2024 resulted from a term advance in the first quarter of 2024.
Total shareholders’ equity amounted to $368.1 million at September 30, 2024, compared to $329.1 million at December 31, 2023. The increase of 12% during the nine months ended September 30, 2024 was due primarily to an increase in retained earnings of $19.1 million and a decrease in the accumulated other comprehensive loss of $17.1 million.
Credit Quality
Selected credit quality metrics at September 30, 2024, compared to December 31, 2023, were as follows:
- The ACL for loans amounted to $63.7 million, or 1.65% of total loans, compared to $59.0 million, or 1.65% of total loans.
- The reserve for unfunded commitments (included in other liabilities) amounted to $4.6 million, compared to $7.1 million.
- Non-performing loans amounted to $25.9 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase in non-performing loans during the nine months ended September 30, 2024 resulted primarily from two individually evaluated commercial construction loans which were placed on non-accrual.
Net recoveries amounted to $7 thousand for the three months ended September 30, 2024, compared to $12 thousand for the three months ended September 30, 2023.
Wealth Management
Wealth assets under management and administration, which are not carried as assets on the Company’s consolidated balance sheets, amounted to $1.51 billion at September 30, 2024, an increase of $194.9 million, or 15%, compared to December 31, 2023, and resulted primarily from an increase in market values.
About Enterprise Bancorp, Inc.
Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 140 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company’s headquarters and Enterprise Bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.
Forward-Looking Statements
This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures in our market areas and the United States; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
ENTERPRISE BANCORP, INC.
Consolidated Balance Sheets
(unaudited)
| (Dollars in thousands, except per share data) | September 30, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||||||
| Assets | ||||||||||||
| Cash and cash equivalents: | ||||||||||||
| Cash and due from banks | $ | 60,466 | $ | 37,443 | $ | 45,345 | ||||||
| Interest-earning deposits with banks | 28,166 | 19,149 | 180,076 | |||||||||
| Total cash and cash equivalents | 88,632 | 56,592 | 225,421 | |||||||||
| Investments: | ||||||||||||
| Debt securities at fair value (amortized cost of $703,311, $763,981 and $806,077, respectively) | 622,527 | 661,113 | 672,894 | |||||||||
| Equity securities at fair value | 9,448 | 7,058 | 6,038 | |||||||||
| Total investment securities at fair value | 631,975 | 668,171 | 678,932 | |||||||||
| Federal Home Loan Bank stock | 2,482 | 2,402 | 2,403 | |||||||||
| Loans held for sale | 1,229 | 200 | — | |||||||||
| Loans: | ||||||||||||
| Total loans | 3,858,940 | 3,567,631 | 3,404,014 | |||||||||
| Allowance for credit losses | (63,654 | ) | (58,995 | ) | (57,905 | ) | ||||||
| Net loans | 3,795,286 | 3,508,636 | 3,346,109 | |||||||||
| Premises and equipment, net | 43,291 | 44,931 | 43,391 | |||||||||
| Lease right-of-use asset | 24,291 | 24,820 | 24,979 | |||||||||
| Accrued interest receivable | 20,529 | 19,233 | 18,572 | |||||||||
| Deferred income taxes, net | 44,067 | 49,166 | 55,080 | |||||||||
| Bank-owned life insurance | 66,899 | 65,455 | 65,106 | |||||||||
| Prepaid income taxes | 4,645 | 1,589 | 2,548 | |||||||||
| Prepaid expenses and other assets | 13,827 | 19,183 | 14,177 | |||||||||
| Goodwill | 5,656 | 5,656 | 5,656 | |||||||||
| Total assets | $ | 4,742,809 | $ | 4,466,034 | $ | 4,482,374 | ||||||
| Liabilities and Shareholders‘Equity | ||||||||||||
| Liabilities | ||||||||||||
| Deposits | $ | 4,189,461 | $ | 3,977,521 | $ | 4,060,403 | ||||||
| Borrowed funds | 59,949 | 25,768 | 4,290 | |||||||||
| Subordinated debt | 59,736 | 59,498 | 59,419 | |||||||||
| Lease liability | 24,010 | 24,441 | 24,589 | |||||||||
| Accrued expenses and other liabilities | 32,116 | 45,011 | 31,288 | |||||||||
| Accrued interest payable | 9,428 | 4,678 | 2,686 | |||||||||
| Total liabilities | 4,374,700 | 4,136,917 | 4,182,675 | |||||||||
| Commitments and Contingencies | ||||||||||||
| Shareholders‘Equity | ||||||||||||
| Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | — | — | — | |||||||||
| Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,428,426, 12,272,674 and 12,256,964 shares issued and outstanding, respectively. | 124 | 123 | 123 | |||||||||
| Additional paid-in capital | 110,110 | 107,377 | 106,451 | |||||||||
| Retained earnings | 320,497 | 301,380 | 296,291 | |||||||||
| Accumulated other comprehensive loss | (62,622 | ) | (79,763 | ) | (103,166 | ) | ||||||
| Total shareholders’ equity | 368,109 | 329,117 | 299,699 | |||||||||
| Total liabilities and shareholders’ equity | $ | 4,742,809 | $ | 4,466,034 | $ | 4,482,374 | ||||||
ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited)
| Three months ended | Nine months ended | ||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Other interest-earning assets | $ | 2,497 | $ | 1,697 | $ | 3,468 | $ | 5,366 | $ | 7,593 | |||||||||
| Investment securities | 3,835 | 3,943 | 4,316 | 11,812 | 14,356 | ||||||||||||||
| Loans and loans held for sale | 53,809 | 51,224 | 44,501 | 153,850 | 125,855 | ||||||||||||||
| Total interest and dividend income | 60,141 | 56,864 | 52,285 | 171,028 | 147,804 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 20,581 | 19,172 | 12,889 | 57,025 | 28,568 | ||||||||||||||
| Borrowed funds | 674 | 664 | 28 | 2,032 | 70 | ||||||||||||||
| Subordinated debt | 866 | 867 | 866 | 2,600 | 2,600 | ||||||||||||||
| Total interest expense | 22,121 | 20,703 | 13,783 | 61,657 | 31,238 | ||||||||||||||
| Net interest income | 38,020 | 36,161 | 38,502 | 109,371 | 116,566 | ||||||||||||||
| Provision for credit losses | 1,332 | 137 | 1,752 | 2,091 | 6,756 | ||||||||||||||
| Net interest income after provision for credit losses | 36,688 | 36,024 | 36,750 | 107,280 | 109,810 | ||||||||||||||
| Non-interest income: | |||||||||||||||||||
| Wealth management fees | 2,025 | 1,970 | 1,673 | 5,845 | 4,933 | ||||||||||||||
| Deposit and interchange fees | 2,282 | 2,284 | 1,987 | 6,635 | 6,330 | ||||||||||||||
| Income on bank-owned life insurance, net | 518 | 503 | 327 | 1,479 | 950 | ||||||||||||||
| Net losses on sales of debt securities | (2 | ) | — | — | (2 | ) | (2,419 | ) | |||||||||||
| Net gains on sales of loans | 57 | 44 | 14 | 123 | 34 | ||||||||||||||
| Net gains (losses) on equity securities | 604 | 101 | (181 | ) | 1,170 | (8 | ) | ||||||||||||
| Other income | 656 | 726 | 666 | 2,013 | 2,242 | ||||||||||||||
| Total non-interest income | 6,140 | 5,628 | 4,486 | 17,263 | 12,062 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||||
| Salaries and employee benefits | 20,097 | 19,675 | 19,159 | 58,948 | 53,815 | ||||||||||||||
| Occupancy and equipment expenses | 2,438 | 2,406 | 2,433 | 7,303 | 7,439 | ||||||||||||||
| Technology and telecommunications expenses | 2,618 | 2,658 | 2,626 | 8,021 | 7,937 | ||||||||||||||
| Advertising and public relations expenses | 559 | 674 | 592 | 1,976 | 2,077 | ||||||||||||||
| Audit, legal and other professional fees | 569 | 711 | 735 | 2,014 | 2,157 | ||||||||||||||
| Deposit insurance premiums | 900 | 862 | 654 | 2,621 | 1,944 | ||||||||||||||
| Supplies and postage expenses | 261 | 240 | 251 | 738 | 753 | ||||||||||||||
| Other operating expenses | 1,911 | 1,803 | 1,862 | 5,669 | 5,853 | ||||||||||||||
| Total non-interest expense | 29,353 | 29,029 | 28,312 | 87,290 | 81,975 | ||||||||||||||
| Income before income taxes | 13,475 | 12,623 | 12,924 | 37,253 | 39,897 | ||||||||||||||
| Provision for income taxes | 3,488 | 3,111 | 3,225 | 9,247 | 9,746 | ||||||||||||||
| Net income | $ | 9,987 | $ | 9,512 | $ | 9,699 | $ | 28,006 | $ | 30,151 | |||||||||
| Basic earnings per common share | $ | 0.80 | $ | 0.77 | $ | 0.79 | $ | 2.26 | $ | 2.47 | |||||||||
| Diluted earnings per common share | $ | 0.80 | $ | 0.77 | $ | 0.79 | $ | 2.26 | $ | 2.46 | |||||||||
| Basic weighted average common shares outstanding | 12,428,543 | 12,389,917 | 12,247,892 | 12,370,812 | 12,210,740 | ||||||||||||||
| Diluted weighted average common shares outstanding | 12,438,160 | 12,394,463 | 12,264,778 | 12,379,390 | 12,233,861 | ||||||||||||||
ENTERPRISE BANCORP, INC.
Selected Consolidated Financial Data and Ratios
(unaudited)
| At or for the three months ended | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||||||||||||
| Balance Sheet Data | ||||||||||||||||||||
| Total cash and cash equivalents | $ | 88,632 | $ | 199,719 | $ | 147,834 | $ | 56,592 | $ | 225,421 | ||||||||||
| Total investment securities at fair value | 631,975 | 636,838 | 652,026 | 668,171 | 678,932 | |||||||||||||||
| Total loans | 3,858,940 | 3,768,649 | 3,654,322 | 3,567,631 | 3,404,014 | |||||||||||||||
| Allowance for credit losses | (63,654 | ) | (61,999 | ) | (60,741 | ) | (58,995 | ) | (57,905 | ) | ||||||||||
| Total assets | 4,742,809 | 4,773,681 | 4,624,015 | 4,466,034 | 4,482,374 | |||||||||||||||
| Total deposits | 4,189,461 | 4,248,801 | 4,106,119 | 3,977,521 | 4,060,403 | |||||||||||||||
| Borrowed funds | 59,949 | 61,785 | 63,246 | 25,768 | 4,290 | |||||||||||||||
| Subordinated debt | 59,736 | 59,657 | 59,577 | 59,498 | 59,419 | |||||||||||||||
| Total shareholders’ equity | 368,109 | 340,441 | 333,439 | 329,117 | 299,699 | |||||||||||||||
| Total liabilities and shareholders’ equity | 4,742,809 | 4,773,681 | 4,624,015 | 4,466,034 | 4,482,374 | |||||||||||||||
| Wealth Management | ||||||||||||||||||||
| Wealth assets under management | $ | 1,212,076 | $ | 1,129,147 | $ | 1,105,036 | $ | 1,077,761 | $ | 984,647 | ||||||||||
| Wealth assets under administration | $ | 302,891 | $ | 267,529 | $ | 268,074 | $ | 242,338 | $ | 211,046 | ||||||||||
| Shareholders’ Equity Ratios | ||||||||||||||||||||
| Book value per common share | $ | 29.62 | $ | 27.40 | $ | 26.94 | $ | 26.82 | $ | 24.45 | ||||||||||
| Dividends paid per common share | $ | 0.24 | $ | 0.24 | $ | 0.24 | $ | 0.23 | $ | 0.23 | ||||||||||
| Regulatory Capital Ratios | ||||||||||||||||||||
| Total capital to risk weighted assets | 13.07 | % | 13.07 | % | 13.20 | % | 13.12 | % | 13.45 | % | ||||||||||
| Tier 1 capital to risk weighted assets(1) | 10.36 | % | 10.34 | % | 10.43 | % | 10.34 | % | 10.61 | % | ||||||||||
| Tier 1 capital to average assets | 8.68 | % | 8.76 | % | 8.85 | % | 8.74 | % | 8.59 | % | ||||||||||
| Credit Quality Data | ||||||||||||||||||||
| Non-performing loans | $ | 25,946 | $ | 17,731 | $ | 18,527 | $ | 11,414 | $ | 11,656 | ||||||||||
| Non-performing loans to total loans | 0.67 | % | 0.47 | % | 0.51 | % | 0.32 | % | 0.34 | % | ||||||||||
| Non-performing assets to total assets | 0.55 | % | 0.37 | % | 0.40 | % | 0.26 | % | 0.26 | % | ||||||||||
| ACL for loans to total loans | 1.65 | % | 1.65 | % | 1.66 | % | 1.65 | % | 1.70 | % | ||||||||||
| Net (recoveries) charge-offs | $ | (7 | ) | $ | (130 | ) | $ | 122 | $ | 15 | $ | (12 | ) | |||||||
| Income Statement Data | ||||||||||||||||||||
| Net interest income | $ | 38,020 | $ | 36,161 | $ | 35,190 | $ | 36,518 | $ | 38,502 | ||||||||||
| Provision for credit losses | 1,332 | 137 | 622 | 2,493 | 1,752 | |||||||||||||||
| Total non-interest income | 6,140 | 5,628 | 5,495 | 5,547 | 4,486 | |||||||||||||||
| Total non-interest expense | 29,353 | 29,029 | 28,908 | 28,224 | 28,312 | |||||||||||||||
| Income before income taxes | 13,475 | 12,623 | 11,155 | 11,348 | 12,924 | |||||||||||||||
| Provision for income taxes | 3,488 | 3,111 | 2,648 | 3,441 | 3,225 | |||||||||||||||
| Net income | $ | 9,987 | $ | 9,512 | $ | 8,507 | $ | 7,907 | $ | 9,699 | ||||||||||
| Income Statement Ratios | ||||||||||||||||||||
| Diluted earnings per common share | $ | 0.80 | $ | 0.77 | $ | 0.69 | $ | 0.64 | $ | 0.79 | ||||||||||
| Return on average total assets | 0.82 | % | 0.82 | % | 0.75 | % | 0.69 | % | 0.85 | % | ||||||||||
| Return on average shareholders’ equity | 11.20 | % | 11.55 | % | 10.47 | % | 10.21 | % | 12.53 | % | ||||||||||
| Net interest margin (tax-equivalent)(2) | 3.22 | % | 3.19 | % | 3.20 | % | 3.29 | % | 3.46 | % | ||||||||||
(1) Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.
(2) Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.
ENTERPRISE BANCORP, INC.
Consolidated Loan and Deposit Data
(unaudited)
Major classifications of loans at the dates indicated were as follows:
| (Dollars in thousands) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||||||||||||
| Commercial real estate owner-occupied | $ | 660,063 | $ | 660,478 | $ | 635,420 | $ | 619,302 | $ | 618,903 | ||||||||||
| Commercial real estate non owner-occupied | 1,579,827 | 1,544,386 | 1,524,174 | 1,445,435 | 1,413,555 | |||||||||||||||
| Commercial and industrial | 415,642 | 426,976 | 417,604 | 430,749 | 425,334 | |||||||||||||||
| Commercial construction | 674,434 | 622,094 | 583,711 | 585,113 | 501,179 | |||||||||||||||
| Total commercial loans | 3,329,966 | 3,253,934 | 3,160,909 | 3,080,599 | 2,958,971 | |||||||||||||||
| Residential mortgages | 424,030 | 413,323 | 400,093 | 393,142 | 362,514 | |||||||||||||||
| Home equity loans and lines | 95,982 | 93,220 | 85,144 | 85,375 | 74,433 | |||||||||||||||
| Consumer | 8,962 | 8,172 | 8,176 | 8,515 | 8,096 | |||||||||||||||
| Total retail loans | 528,974 | 514,715 | 493,413 | 487,032 | 445,043 | |||||||||||||||
| Total loans | 3,858,940 | 3,768,649 | 3,654,322 | 3,567,631 | 3,404,014 | |||||||||||||||
| ACL for loans | (63,654 | ) | (61,999 | ) | (60,741 | ) | (58,995 | ) | (57,905 | ) | ||||||||||
| Net loans | $ | 3,795,286 | $ | 3,706,650 | $ | 3,593,581 | $ | 3,508,636 | $ | 3,346,109 | ||||||||||
Deposits are summarized as follows as of the periods indicated:
| (Dollars in thousands) | September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||
| Non-interest checking | $ | 1,064,424 | $ | 1,041,771 | $ | 1,038,887 | $ | 1,061,009 | $ | 1,118,714 | |||||
| Interest-bearing checking | 682,050 | 788,822 | 730,819 | 697,632 | 727,817 | ||||||||||
| Savings | 279,824 | 294,566 | 285,090 | 294,865 | 302,381 | ||||||||||
| Money market | 1,488,437 | 1,504,551 | 1,469,181 | 1,402,939 | 1,434,036 | ||||||||||
| CDs $250,000 or less | 375,055 | 358,149 | 337,367 | 295,789 | 262,975 | ||||||||||
| CDs greater than $250,000 | 299,671 | 260,942 | 244,775 | 225,287 | 214,480 | ||||||||||
| Deposits | $ | 4,189,461 | $ | 4,248,801 | $ | 4,106,119 | $ | 3,977,521 | $ | 4,060,403 | |||||
ENTERPRISE BANCORP, INC.
Consolidated Average Balance Sheets and Yields (tax-equivalent basis)
(unaudited)
The following table presents the Company’s average balance sheets, net interest income and average rates for the periods indicated:
| Three months ended September 30, 2024 | Three Months Ended June 30, 2024 | Three months ended September 30, 2023 | |||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance |
Interest(1) | Average Yield(1) |
Average Balance |
Interest(1) | Average Yield(1) |
Average Balance |
Interest(1) | Average Yield(1) |
||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||
| Other interest-earning assets(2) | $ | 181,465 | $ | 2,497 | 5.48 | % | $ | 123,887 | $ | 1,697 | 5.51 | % | $ | 260,475 | $ | 3,468 | 5.28 | % | |||||||||
| Investment securities(3)(tax-equivalent) | 731,815 | 3,945 | 2.16 | % | 750,822 | 4,057 | 2.16 | % | 820,156 | 4,444 | 2.17 | % | |||||||||||||||
| Loans and loans held for sale(4)(tax-equivalent) | 3,813,800 | 53,956 | 5.63 | % | 3,708,485 | 51,366 | 5.57 | % | 3,372,754 | 44,644 | 5.25 | % | |||||||||||||||
| Total interest-earnings assets (tax-equivalent) | 4,727,080 | 60,398 | 5.09 | % | 4,583,194 | 57,120 | 5.01 | % | 4,453,385 | 52,556 | 4.69 | % | |||||||||||||||
| Other assets | 104,284 | 96,991 | 82,190 | ||||||||||||||||||||||||
| Total assets | $ | 4,831,364 | $ | 4,680,185 | $ | 4,535,575 | |||||||||||||||||||||
| Liabilities and stockholders’ equity: | |||||||||||||||||||||||||||
| Non-interest checking | $ | 1,069,130 | — | $ | 1,044,648 | — | $ | 1,186,243 | — | ||||||||||||||||||
| Interest checking, savings and money market | 2,574,439 | 13,017 | 2.01 | % | 2,520,439 | 12,381 | 1.98 | % | 2,491,229 | 9,185 | 1.47 | % | |||||||||||||||
| CDs | 651,614 | 7,564 | 4.62 | % | 601,339 | 6,791 | 4.54 | % | 430,376 | 3,704 | 3.41 | % | |||||||||||||||
| Total deposits | 4,295,183 | 20,581 | 1.91 | % | 4,166,426 | 19,172 | 1.85 | % | 4,107,848 | 12,889 | 1.24 | % | |||||||||||||||
| Borrowed funds | 61,232 | 674 | 4.38 | % | 62,513 | 664 | 4.27 | % | 4,938 | 28 | 2.30 | % | |||||||||||||||
| Subordinated debt(5) | 59,689 | 866 | 5.81 | % | 59,609 | 867 | 5.82 | % | 59,372 | 866 | 5.84 | % | |||||||||||||||
| Total funding liabilities | 4,416,104 | 22,121 | 1.99 | % | 4,288,548 | 20,703 | 1.94 | % | 4,172,158 | 13,783 | 1.31 | % | |||||||||||||||
| Other liabilities | 60,524 | 60,270 | 56,414 | ||||||||||||||||||||||||
| Total liabilities | 4,476,628 | 4,348,818 | 4,228,572 | ||||||||||||||||||||||||
| Stockholders’ equity | 354,736 | 331,367 | 307,003 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,831,364 | $ | 4,680,185 | $ | 4,535,575 | |||||||||||||||||||||
| Net interest-rate spread (tax-equivalent) | 3.10 | % | 3.07 | % | 3.38 | % | |||||||||||||||||||||
| Net interest income (tax-equivalent) | 38,277 | 36,417 | 38,773 | ||||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 3.22 | % | 3.19 | % | 3.46 | % | |||||||||||||||||||||
| Less tax-equivalent adjustment | 257 | 256 | 271 | ||||||||||||||||||||||||
| Net interest income | $ | 38,020 | $ | 36,161 | $ | 38,502 | |||||||||||||||||||||
| Net interest margin | 3.20 | % | 3.17 | % | 3.43 | % | |||||||||||||||||||||
(1) Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
(2) Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and Federal Home Loan Bank stock
(3) Average investment securities are presented at average amortized cost.
(4) Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans.
(5) Subordinated debt is net of average deferred debt issuance costs.
Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.