Enterprise Bancorp, Inc. has announced the suspension of its Dividend Reinvestment and Direct Stock Purchase Plan (the "Plan") in anticipation of a potential merger with Independent Bank Corp. The suspension, effective December 9, 2024, means that no purchases of Enterprise common stock under the Plan can be made after this date.
Following the Suspension Date, any dividends generated will no longer be reinvested, and instead, all such dividends will be paid in cash until further notice. Any checks or funds received for optional cash investments after the Suspension Date will be returned without interest.
It's important to note that no further deductions from participants' bank accounts for the automatic investment feature of the Plan will occur after the Suspension Date. However, all other features of the Plan will continue to operate normally until the closing date of the potential merger, at which time the Plan will be terminated.
The company has provided contact information for shareholders who may have questions or need more information regarding this suspension.
This announcement comes as Enterprise Bancorp, Inc. has entered into an Agreement and Plan of Merger with Independent Bank Corp., which is currently pending approval. Shareholders and investors are urged to read the relevant documents and filings with the SEC for further details on the proposed transaction.
As of the latest financial reporting period, Enterprise Bancorp, Inc. reported a significant increase in its net income, rising from $7.6 million in the previous period to $9.2 million. Additionally, total assets saw a slight uptick from $3.2 billion to $3.4 billion. The company's return on average assets (ROAA) also experienced a positive shift, climbing from 0.94% to 1.12%. The market has reacted to these announcements by moving the company's shares -0.1% to a price of $43.21. For more information, read the company's full 8-K submission here.
