LOWELL, Mass. - Enterprise Bancorp, Inc. (NASDAQ:EBTC), the parent company of Enterprise Bank, has announced that its Board of Directors has approved a quarterly dividend of $0.24 per share. This dividend is scheduled for payment on December 2, 2024, to shareholders who are on record as of November 11, 2024.
Enterprise Bank operates predominantly by attracting deposits from the public and investing in commercial loans and investment securities. The bank, along with its subsidiaries, provides a variety of financial services including commercial, residential, and consumer loan products, deposit products, cash management services, as well as electronic and digital banking options. Wealth management and trust services are also part of the bank's offerings.
The company's main office is situated at 222 Merrimack Street in Lowell, Massachusetts, and it primarily serves the Northern Middlesex, Northern Essex, and Northern Worcester counties in Massachusetts, in addition to the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank maintains a network of 27 full-service branches across these regions.
This recent declaration of a dividend reflects the company's ongoing financial activities and its commitment to providing value to its shareholders. The information disclosed is based on a press release statement from Enterprise Bancorp, Inc.
In other recent news, Enterprise Bancorp Inc. reported notable changes within its executive team. Stephen J. Irish, the long-serving Chief Operating Officer, is set to resign and transition to a Technology and Operations Advisor role before his retirement in March 2025. Brian M. Collins, a seasoned leader within the Bank, will succeed Irish as the COO. In line with these changes, the Bank's board has approved an amendment to the Supplemental Executive Retirement and Deferred Compensation Plan (SERP) 2024 Addendum.
Enterprise Bancorp has also declared a quarterly dividend of $0.24 per share. The dividend is scheduled for payment to shareholders of record as of August 13, 2024. This is part of the company's continued commitment to providing returns to its shareholders.
The company also announced the appointment of David Lynch as the new Managing Director and Chief Investment Officer of Enterprise Wealth Management. Lynch, with his extensive experience in wealth management, will guide the division's strategic direction. These developments are part of the ongoing activities at Enterprise Bancorp as it continues to evolve its leadership structure and strengthen its wealth management division.
InvestingPro Insights
Enterprise Bancorp, Inc. (NASDAQ:EBTC) has demonstrated a strong commitment to shareholder value, as evidenced by its recent dividend announcement. This commitment is further underscored by InvestingPro data, which reveals that EBTC has maintained dividend payments for 20 consecutive years and has raised its dividend for 19 consecutive years. These are significant achievements that speak to the company's financial stability and shareholder-friendly policies.
The company's current dividend yield stands at 2.96%, based on the most recent data. This yield, coupled with the company's consistent dividend growth—which saw a 4.35% increase over the last twelve months—may be attractive to income-focused investors.
EBTC's stock has shown impressive performance recently, with a 22.85% price total return over the past three months and a substantial 40.58% return over the last six months. This strong momentum has pushed the stock to trade near its 52-week high, currently at 97.1% of that peak.
From a valuation perspective, EBTC's P/E ratio of 11.53 suggests that the stock may be reasonably priced compared to its earnings. The company's price-to-book ratio of 1.2 indicates that the stock is trading slightly above its book value, which could be seen as fair given its consistent dividend history and recent stock performance.
It's worth noting that while EBTC has shown strength in many areas, an InvestingPro Tip highlights that the company suffers from weak gross profit margins. This could be an area for potential improvement as the bank continues to navigate the current economic environment.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for EBTC, providing a deeper insight into the company's financial health and market position.
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