V ision
Building on the Past.
Creating the Future.
2013 ANNUAL REPORT
ABOUT THE COVER: The success of Enterprise Bank over
the past 25 years has been a true team effort of our entire
Enterprise Bank family. However, in essence, it was the vision,
will and culture created by George Duncan that has been the
driving force behind the success and creation of Enterprise Bank.
It is only appropriate that we feature Mr. Duncan on the cover of
this special 25th anniversary report as we honor the past, and
share our excitement for the future.
— Jack Clancy
Chief Executive Officer
T A B L E O F
Contents
Introduction
Letter to the Shareholders
Selected Financial Data
Celebrating 25 Years of Creating Success
An Entrepreneurial Spirit: George L. Duncan
An Economic Engine: Richard W. Main
The Same Bank We Were 25 Years Ago: Jack Clancy
25 Years of Technology: Stephen Irish
Enterprise Bank Timeline: 25 Years, Immeasurable Impact
Branch Locations
Members of the Board of Directors
Contact Information
» Enterprise Bank Annual Report 2013
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The Original Incorporators of Enterprise Bank
The plaque below hangs inside the entrance to Enterprise Bank’s original branch
office at 222 Merrimack Street, Lowell, in recognition and appreciation of the
Bank’s founding incorporators. The inscription on the plaque reads:
On March 14, 1988, a group of twenty-five local individuals took the first step in
establishing a new, state-chartered commercial bank to serve the Greater Lowell
region. By doing so, they became the bank’s original organizers and incorporators.
These individuals saw the clear need for a locally owned and managed
commercial bank that would be highly responsive to the needs of consumers,
professionals, and small and medium-sized businesses.
The bank’s major goals will be to provide knowledgeable, prompt, and
personalized services to all of its customers and to become an outstanding
community “citizen”.
We offer this recognition in tribute to those individuals who had the vision and
initiative to make our new bank a reality!
Dated: January 3, 1989
Raymond L. Anstiss, Sr.
George Aprahamian
Gerald G. Bousquet
Kathleen M. Bradley
Vessarios G. Chigas
Kenneth F. Cox
M. Patricia Crane
Peter O. Dion
Nancy L. Donahue
Eileen M. Duffy
George L. Duncan
Joseph S. Fitzpatrick
John M. Handley, Jr.
Eric W. Hanson
Daniel P. Leahy
Arnold S. Lerner
Gerald J. Lussier
Philip S. Nyman
Herbert Pitta, Jr.
Evelyn M. Reardon
Maureen H. Sheehy
Michael A. Spinelli
Karin Theodoros
Raymond R. Toupin
Peter L. Trivers
Celebrating
2 5 Y E A R S
We are pleased to share with you this special annual report, which commemorates
Enterprise Bank’s first 25 years of creating success in our communities.
From the beginning, we have been committed to our purpose as a community
bank, helping to create new businesses, meaningful jobs, vibrant communities,
and a dynamic work environment in which employees grow and prosper. It
is because of each of you—our employees, shareholders, customers, and
community members—that we stand here today, celebrating a quarter-century of
serving our community.
We thank you for sharing this journey with us. It is our honor and privilege to serve
you, and we look forward to the next 25 years.
Enterprise Bank Annual Report 2013 » 1
Enterprise Bank
Letter to the Shareholders
“A vision without a plan is just a dream.
A plan without a vision is just drudgery.
But a vision with a plan can change the world.”
— Unknown
2 » Enterprise Bank Annual Report 2013
Dear Shareholders
The words of this old proverb to the left could have
been written for George Duncan, whose vision for
a special kind of independent and purpose-driven
community bank has been positively impacting our
communities for 25 years. It was in 1988 that he
led a group of local visionaries with a deep passion
to create a truly unique “enterprise,” a bank whose
mission would be based on entrepreneurial spirit,
playing a leadership role in our communities and
non-profit organizations, creating new businesses
and jobs, and creating a workplace where
employees grow and prosper. This vision for
Enterprise Bank was founded on the core values
of integrity, community, excellence, teamwork,
and professionalism.
What has led to Enterprise Bank’s continued
progress has been our ability to stay true to our
mission, values, and vision while continuously
adapting to the changing environment and
economy. This is what will enable us to continue to
be successful in the generations ahead. Building on
the past, we are creating the future.
Creating Success
In 2013, our 25th year in business, we celebrated
a year of record earnings and extremely strong
growth across all business lines—commercial loans,
residential lending, deposits, cash management
services, investment assets managed, and
insurance services. As of December 31, 2013, we
have now posted 24 consecutive profitable years.
For 22 continuous years, we have paid a dividend
and this dividend has increased every year.
Enterprise Bank reached several significant
financial milestones in 2013, including total assets
under management exceeding $2.5 billion and
loans outstanding exceeding $1.5 billion. Over
the past 25 years, we have made over $5 billion
in loans to local businesses, professionals, non-
profit organizations, and individuals, serving as an
economic engine to help fuel the local economy and
assist businesses in their growth, expansion, and
creation of new jobs.
Regardless of how far we’ve grown and progressed,
we still think of and operate Enterprise Bank as
a startup—albeit a “25-year-old startup.” Every
day, our Enterprise team works diligently and with
immense pride to keep our bank growing and
moving forward, seeking new opportunities to
improve our services, increase our market share,
and strengthen our communities.
As the banking industry changes, we are ready
not just to adapt, but to prosper. Very few banks
our size have the breadth of our capabilities and
services to create growth. Our depth and expertise
in commercial lending, commercial banking
services, investment and wealth management, cash
management, and insurance services will continue
to fuel our growth.
Growing with a Purpose
While we build on our reputation as the leading
locally owned and managed bank in the
communities we serve, we are continuing to
expand and strengthen our share of the financial
services market.
We have opened seven new branches in the last five
years, with four of these branches opening in 2012
and 2013. In 2013, we expanded into two new and
very large communities. We opened our 21st branch
in April at 290 Merrimack Street in the Riverwalk
Complex in Lawrence, MA. In December we opened
our 22nd branch at 88 Main Street in Nashua, NH.
Both of these new branches incorporate cutting-
edge technology and branch design features.
The Nashua branch represents our fifth location in
Southern New Hampshire.
Strategic growth includes investing in our existing
facilities, expanding and optimizing space to
accommodate our growing organization, and
building a strong foundation of infrastructure for
future expansion. In 2013, we undertook major
interior and exterior renovations at our Tyngsborough
branch; added space for our accounting department
on the third floor of our main office at 222 Merrimack
Street; added space to our mortgage and credit
departments; and renovated offices to enhance
customer accessibility on the first floor of the main
branch. We also signed a lease for additional space
Enterprise Bank Annual Report 2013 » 3
leader in mobile banking technology with a new
mobile application for smartphones and tablets,
featuring mobile deposit, Popmoney ®, Bill Pay, and
funds transfer capabilities.
An example of community bank-focused technology at
work is cash recyclers, which are now installed in four
of our branches. A cash recycler machine can verify
cash deposits and dispense cash for withdrawals
or cashed checks, holding cash within its own
secured vault. This increases speed for transactions,
decreasing customer wait time, while reducing human
error in counting and managing cash levels.
Most importantly, cash recyclers allow our Customer
Service Representatives to focus much more on
interacting with our customers. This allows us to
operate in a more consultative manner and provide
a much more engaging, warm, and memorable
customer experience. That is community bank-
focused technology at its best.
PHOTO: A long way from banking's roots, today's cash recycler
machines reduce wait time and human error while enhancing
customer service.
in a building at 18 Palmer Street to support present
and future growth.
Our Enterprise Team
Our most important operating tenet is that we care
deeply about and take great pride in our employees.
Their energy, desire, talent, and respect and caring
for each other result in five-star service to our
customers every day.
We work diligently to attract talented, intelligent,
kind, and customer-focused professionals to our
Enterprise family. In 2013, we grew our outstanding
Enterprise Bank family to 440 Enterprise Bankers.
We work hard to provide a dynamic work
environment where all Enterprise Bankers can
receive quality coaching in a caring and thoughtful
work environment.
Our Enterprise Bankers are the heart and soul of
this organization. We are committed to providing our
Enterprise Bankers with a positive and rewarding
workplace. We know that employees who feel
valued and appreciated make their customers feel
the same way and are committed to giving back to
their communities. This creates a circle of positive
relationships that benefit all involved.
Technology
Our continuous and leading-edge investment in
technology and product innovation is making banking
more efficient, more secure, and easier to use
for our customers, improving their overall banking
experience. In 2013, Enterprise Bank became a
Total Loans
($ in billions)
$1.52
$1.36
$1.25
$1.08
$1.14
2009
2010
2011
2012
2013
Deposits
($ in billions)
(Excluding Brokered Deposits)
$1.58
$1.47
$1.33
$1.24
$1.12
2009
2010
2011
2012
2013
4 » Enterprise Bank Annual Report 2013
2013 Highlights
2013 was another year of substantial growth and
progress for Enterprise Bank.
» We increased net income from the previous year
by $1.2 million, or 9%, to $13.5 million; loans
outstanding by $164.4 million, or 12%, to $1.52 billion;
total deposits, excluding brokered deposits,
by $112.4 million, or 8%, to $1.58 billion; total
assets by $184.2 million, or 11%, to $1.85 billion;
and investment assets under management by
$75 million, or 13%, to $667.3 million.
» Based on the closing stock price of $21.17 per
share on December 31, 2013, original investors
who purchased Enterprise Bank stock in the fall of
1988 have seen their stock investment increase in
value by 1,365% (including dividends reinvested).
Thus, a shareholder who purchased $100,000 of
Enterprise stock and reinvested all dividends now
owns Enterprise stock valued at $1.365 million (as
of December 31, 2013).
» Our Non-Profit Collaborative (NPC) celebrated its fifth
anniversary of developing programs and resources
to benefit the valuable organizations of the non-profit
community. The NPC’s series of educational forums
and onsite speaker presentations have covered
topics from social media and fundraising to board
development and financial management.
» Enterprise Bank received recognition from the
Boston Globe as one of the 2013 Top Places to
Work in Massachusetts. Enterprise was honored as
#11 among large-sized companies.
» We received two prestigious recognitions for our
commitment to our community at the Boston
Business Journal’s “A Salute to Corporate
Citizenship Summit.” Enterprise was ranked
#44 of all public companies in Massachusetts
for dollars contributed to area non-profits. We
ranked #2 among companies for hours spent by
Enterprise Bank employees in community service.
This is the seventh consecutive year our Enterprise
has been honored. Helping to create strong
and caring communities is a core belief, and we
congratulate all of our employees, as every team
member contributes to our success.
» We held our 4th Celebration of Excellence event in
May, attracting 1,750 local business and community
leaders and professionals, with inspirational keynote
speaker Bonnie St. John—Olympic medalist, author,
executive coach, and TV personality.
» We hosted four Economic Breakfasts in the North
Central, Acton, and Westford regions, including an
amazing and inspirational breakfast attended by over
200 guests with keynote speakers Ed Davis, former
Boston Police Commissioner, and Jeff Bauman,
a Boston Marathon bombing survivor from
Chelmsford, MA.
» We were extremely honored in 2013 to welcome
two new members to our Board of Directors:
John Grady and John Koutsos. John Grady, a
senior advisor at Moelis & Company, a global
investment firm with offices in Boston and New York,
is a highly respected financial services executive
with over 25 years of experience in private wealth
Net Income
($ in millions)
$13.5
$12.4
$10.6
$10.9
$7.9
2009
2010
2011
2012
2013
Total Assets
Total Assets Under Management
($ in billions)
$2.59
$2.33
$2.06
$1.95
$1.85
$1.79
$1.67
$1.30
$1.40
$1.49
2009
2010
2011
2012
2013
Enterprise Bank Annual Report 2013 » 5
Thank You
We recognize that it is because of you that we are here today, celebrating
a quarter-century of serving our community. We would like to express our
deepest appreciation to each of you—our shareholders, board members,
employees, customers, and community members—for your unwavering
support and for the trust and confidence you have placed in us. We are
genuinely humbled by the excellence of our Enterprise Bank family, united by
our core values and principles and committed to making a difference in the
lives of our customers and our communities.
Adhering always to our founding purpose, mission, and responsibility as a
local, independent community bank, we look forward to celebrating many more
milestones and accomplishments in the years to come. We are always looking
ahead, and the future is exciting indeed.
George L. Duncan
Founder and Chairman
Jack Clancy
Chief Executive Officer
Richard W. Main
President
management and commercial banking. He is a graduate of Boston University.
John Koutsos is a third-generation owner and operator of Alec's Shoe
Store, Inc., a downtown Nashua business that has earned Retailer of the
Year awards from the New Hampshire Retail Merchants Association and the
Boston Shoe Travelers Association. He is a graduate of the University of New
Hampshire’s Whittemore School of Business and Economics. Our board has
skillfully guided and set our direction for the past 25 years and has set a very
high standard for us to follow.
» We held a successful Investment Forum attended by over 200 of our
Enterprise Investment clients in the fall of 2013.
» We rolled out consumer and business mobile deposit capabilities. By year's
end, we were averaging more than 500 mobile deposits per month and
reached a milestone of 3,000 retail mobile banking users.
A Bright Future
As we complete our 25th year in business, we stand strong and well-positioned
for a future that is brighter and more vibrant than ever. Our optimal size puts us
in a position to manage increased regulatory oversight and costs. We offer our
customers the responsiveness and execution of a genuine community bank. We
have highly competitive and progressive technology capabilities, with a broad
array of financial services in place.
However, we never take that future for granted. We know we have to continue
to create it, define it, and make it happen, as we have for our first 25 years,
through teamwork, individual contribution, focus, and determination.
Most importantly, we are a team that will continue to draw together on our
strength and respect for one another, enabling us to differentiate ourselves
through our customer service, energy, mindset, and leadership. With a
commitment to our founding core values and philosophy, we look forward to
many more successful and rewarding years ahead of us.
6 » Enterprise Bank Annual Report 2013
Selected Financial Data
Years Ended December 31
EARNINGS DATA
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Non-interest income
Other than temporary impairment on investment securities
Net gains on sales of investment securities
Non-interest expense
Income before income taxes
Provision for income taxes
Net income
COMMON SHARE DATA
Basic earnings per share
Diluted earnings per share
Book value per share at year end
Dividends paid per share
Basic weighted average shares outstanding
Diluted weighted average shares outstanding
YEAR END BALANCE SHEET AND OTHER DATA
Total assets
Loans serviced for others
Investment assets under management
Total assets under management
Total loans
Allowance for loan losses
Investment securities
Interest-earning deposits and fed funds
Deposits (including brokered deposits)
Borrowed funds
Junior subordinated debentures
Total stockholders’ equity
RATIOS
Return on average total assets
Return on average stockholders’ equity
Allowance for loan losses to total loans
Stockholders’ equity to total assets
Dividend payout ratio
2013
2012
2011
2010
{dollars in thousands, except per share data}
$
$
$
$
$
$
$
65,791
3,279
62,512
12,553
-
1,239
55,824
20,480
6,951
13,529
1.37
1.36
15.14
0.46
9,862,678
9,950,609
1,849,925
72,711
667,330
2,589,966
1,524,056
26,967
215,369
12,371
1,635,992
36,534
10,825
151,334
0.78%
9.32%
1.77%
8.18%
33.58%
$
$
$
$
$
$
$
61,910
2,750
59,160
11,939
-
236
52,612
18,723
6,348
12,375
1.29
1.28
14.42
0.44
9,586,783
9,660,676
1,665,726
75,854
592,355
2,333,935
1,359,655
24,254
184,464
14,728
1,475,027
26,540
10,825
139,549
0.78%
9.27%
1.78%
8.38%
34.11%
$
$
$
$
$
$
$
58,326
5,197
53,129
11,154
(3)
791
48,966
16,105
5,161
10,944
1.16
1.16
13.45
0.42
9,401,714
9,445,725
1,489,163
67,367
505,163
2,061,693
1,245,428
23,160
140,405
8,900
1,333,158
4,494
10,825
127,448
0.75%
8.98%
1.86%
8.56%
36.21%
$
$
$
$
$
$
$
54,971
5,137
49,834
10,602
(8)
875
45,589
15,714
5,074
10,640
1.15
1.15
12.56
0.40
9,216,524
9,221,257
1,397,321
63,807
493,078
1,954,206
1,136,938
19,415
142,060
28,711
1,244,071
15,541
10,825
116,673
0.78%
9.42%
1.71%
8.35%
34.78%
$
$
$
$
$
$
$
2009
48,446
4,846
43,600
9,497
(797)
1,487
42,623
11,164
3,218
7,946
0.96
0.96
11.84
0.38
8,268,502
8,279,126
1,304,001
53,659
433,043
1,790,703
1,082,452
18,218
134,369
6,835
1,144,948
24,876
10,825
107,664
0.64%
8.30%
1.68%
8.26%
39.58%
Enterprise Bank Annual Report 2013 » 7
8 » Enterprise Bank Annual Report 2013
25 Years of Creating Success
Celebrating
It was 25 years ago, on January 3, 1989, that Enterprise Bank opened its doors with
a vision to create a better future for our customers, communities, and employees.
From the beginning, we have been committed to our deep sense of purpose as a genuine community
bank. We take seriously our role as an economic engine to help fuel the local economy, as well as
a good philanthropic partner and neighbor. In 25 years, we have issued over $5 billion in loans to
create lasting change in the communities we serve, as well as countless dollars and employee hours
donated to non-profit organizations and charities that are so important to our quality of life.
In 25 years, Enterprise Bank has grown from a single Lowell office to 22 branches in 18 communities.
We have grown from 21 employees to more than 440 Enterprise family members, celebrated
24 consecutive profitable years, and reached many significant financial milestones.
Ultimately, however, we have measured our success not by numbers and transactions, but by our
relationships, by the communities and lives we influence, and by the dreams we help fulfill.
In the following pages, you will get a glimpse of how our vision has created a new way of banking
in our region, with a profound and far-reaching impact on the individuals, businesses, non-profit
organizations, and communities we call home.
Enterprise Bank Annual Report 2013 » 9
An
E N T R E P R E N E U R I A L
Spirit:
From Great Risk Comes Great Success
By George L. Duncan, Founder and Chairman
When some people hear the Enterprise Bank
success story, they might say, “You were all so
lucky!” Many people, however, believe as I do that, to
a great extent, individuals create their own happiness
and opportunities.
Entrepreneurial success happens when those
imaginary lines of great preparation and great timing
intersect, and you’re willing to take risks and take
advantage of the opportunity.
In 1988, I obviously knew there was risk in opening
a new bank, especially in a city where there were
already a number of well-established, highly
competitive local and regional banks. I was confident,
however, that our team had the banking background
and experience to pick great people and establish
and run a highly successful entrepreneurial bank with
exceptional customer service and total devotion to its
stockholders, community, and its employees. Looking
back now, I can honestly say that I didn’t realize how
big of a risk I was actually taking. I had no idea just
how bad the economy was to become, or that it
would last for almost five years.
To put it in sailing terms, I knew we were going to
sea during a storm, but I had no idea it was going
to turn into a typhoon. Had I known, I would have
hesitated, but I would have done it anyway. When
putting to sea, there is never a perfect time. There
are always obstacles—the wind, the current, and
other factors of risk that you cannot always control.
I thought the time and tide were as good as they
were going to be for the foreseeable future, so I
“put to sea." That attitude has made all the difference
as to who we have become as business people
and entrepreneurs.
The entire process—from filing the application to
opening the doors on January 3, 1989—took about
11 months. Once I decided to move forward, I
threw everything I had into it, directly or indirectly
putting my reputation and all of my assets on the
line. Fortunately, it was with the unwavering support
of my incredible wife, Carol, and my family. When
we began construction at 222 Merrimack Street,
10 » Enterprise Bank Annual Report 2013
purchasing furniture, hiring personnel, accountants, and
lawyers, it was all done before I raised or put any future
stockholders’ money at risk.
The state banking regulators required me initially to
raise $5 million from a public stock offering, but then
immediately increased it to $7.5 million due to the
worsening and unpredictable economy. During the
process of selling stock to the public, our friends,
neighbors, and relatives frequently came to our
home to subscribe to our stock offering or drop off
checks. In many cases, they were taking money out
of their savings accounts or certificates of deposit
that they had worked diligently to save. I remember
PHOTO: The four original employees of Enterprise Bank—
Jack Clancy, Carole Ledoux, Carole McOsker, and
George Duncan—in 1988 and today, standing in front of the
condominium that served as the offices of Enterprise Bank
leading up to the Bank's opening.
Entrepreneurial success happens when those imaginary lines
of great preparation and great timing intersect, and you’re
willing to take risks and take advantage of the opportunity.
one evening when my son, Andrew, who was then a
teenager, was sitting at the kitchen table witnessing
some of these transactions. After some of the
potential investors had left, he made the comment, “If
this all doesn’t work out, Dad, we’re going to have to
leave town, right?”
Well, we didn’t have to leave town, and we actually
ended up raising over $10 million by the time the bank
was ready to open. Looking back, that was amazing,
given the brief time we had and the depressed
economy we were facing. To a great extent, it was a
testimony to the reputation of the incorporators, board,
and management team we had assembled, and to all of
their support and efforts in helping to raise the money.
Enterprise Bank opened for business 25 years ago
and we haven’t looked back. From the first day, our
success at Enterprise Bank has unquestionably
been due to the team we have put together. Some
have said a talent of mine is picking great people,
mentoring, managing, and motivating them—“the
three M’s”—and then getting out of the way and
letting them do their job.
We also owe so much to our Board of Directors,
which has set such a high moral and business
standard for all of us to achieve. We are also deeply
grateful to the people and leadership of Lowell, our
headquarters, who have given us such unrelenting
support from the very beginning.
We have the same mission today that we’ve had
from day one: "The Enterprise Bank Team helps
create successful businesses, jobs, opportunities,
wealth, and vibrant, prosperous communities.”
We continue to always improve ourselves and
our products, and we always remember to deal
in superlatives rather than just comparatives. It is
all part of our entrepreneurial spirit and it is in our
corporate DNA to stay.
We are restless, energetic, creative, and curious
by nature. We are always looking for ways to grow,
stay independent, and improve ourselves personally
and professionally. There is no finish line…
Enterprise Bank Annual Report 2013 » 11
An Economic Engine
F U E L I N G
the Economy
By Richard W. Main, President
In 1989, Enterprise Bank opened for business as a local commercial bank with a mission to
“create successful businesses, jobs, opportunities, wealth, and vibrant, prosperous communities.”
Over the past 25 years, we have made over $5 billion
in loans to local businesses, professionals, non-profit
organizations and individuals, serving as an economic
engine to help fuel the local economy.
Our customers range from small local retailers and
non-profits to large manufacturers and professionals.
Our commitment to local businesses is evident in loans
we have made to assist in their growth, expansion,
and creation of new jobs. With over $120 million in
residential construction loans on the books, we have
supported our local real estate developers in providing
residential housing, from single-family homes to
apartments and affordable housing projects.
Whether it's a revolving line of credit to assist cash flow,
a term loan for new equipment, a commercial mortgage
to acquire or expand an office, or a construction loan
to build housing, Enterprise Bank has been committed
to making our community a better place to work and
live. Our business is built on relationships, not on
transactions or bottom lines. We are committed to our
customers; we work with them not just in the good
times, but through the bad times as well.
So much of our success is due to our lenders—
the most experienced commercial lending team in
our marketplace. They are constantly adapting to
changing market conditions and continually looking
for new and creative ways in which to serve our
customers’ needs. Right now, over 30 local lenders
work within our branch system in locations throughout
the Merrimack Valley, North Central Massachusetts,
and Southern New Hampshire. In addition, we have
experienced branch relationship managers, regional
business advisors, and cash management specialists
working with small and medium-sized businesses in
Massachusetts and New Hampshire.
We are proud that so many of our lenders have emerged
from Enterprise Bank's Leadership Development
Program, through which we attract and develop our
next generation of leaders. And we are proud that our
lenders are so invested in the communities they serve.
They live here, they volunteer and provide community
12 » Enterprise Bank Annual Report 2013
Our customers consider us
trusted advisors, and that’s a role
we work hard to earn every day.
service here, and they are very connected to what is going on.
Our customers consider us trusted advisors, and that’s a role we
work hard to earn every day.
Over the past 25 years, Enterprise Bank has grown and
expanded into a full-service bank, offering a full line of banking
products and services. We offer personal rewards checking
and savings products, as well as home mortgages, home
equity lines of credit, and personal loans. We offer investment
management services through Enterprise Investment Advisors
and Enterprise Investment Services (brokerage). We also
offer insurance through Enterprise Insurance Services. But
at its heart, Enterprise Bank remains a commercial bank
committed to fueling the economic growth and stability of our
local communities.
PHOTO: Dick Main, right, with
George Duncan in the Bank's early days.
Enterprise Bank Annual Report 2013 » 13
The Same Bank We Were
2 5 Y E A R S A G O :
A Community Bank, Leading with a Purpose
By Jack Clancy, Chief Executive Officer
Reflecting on what I affectionately
call “Our Enterprise,” it seems
that the more things have
changed over the last 25 years,
the more they have stayed
the same.
Our core values, operating principles, mission,
focus, and deep sense of caring for our fellow
employees, our customers, and our communities
have not changed in 25 years. We will always be
a community bank, leading with a deep sense of
mission and purpose.
PHOTO: Jack Clancy working on Enterprise Bank’s first and only
computer in 1989.
14 » Enterprise Bank Annual Report 2013
In the spring of 1988, I joined George Duncan and
Carole McOsker during Enterprise Bank’s early
formation stage. Soon, many others would join
Enterprise Bank. It was a formidable undertaking,
considering that the substantial challenge of starting
a bank—something that doesn’t happen often—was
compounded by the devastating economic downturn
in New England in the late 1980s.
Honestly, at 30 years old I was too young and
inexperienced to truly comprehend many of the
dynamics surrounding the founding of a bank.
However, I did have a sense that something special
was being created. We all believed in George’s vision
and, most of all, we believed in him.
There were, of course, some extremely anxious
moments. When the stock offering materials were
mailed to 4,000 people at the end of July 1988,
it turned out to be just days before the negative
New England economic banking stories began to
emerge. Through August there was a painfully slow
response in attracting investors, which in hindsight
was likely due to summer vacations. But then, after
Labor Day, it was like the movie “It’s a Wonderful Life,”
with local people pouring in to invest in Enterprise
Bank as initial stockholders. I vividly remember the
lines of local people, with their checks, investing in
George and his vision. This stock offering raised over
$10 million, all from local investors.
On January 3, 1989, Enterprise Bank opened for
business at 222 Merrimack Street in Lowell. We had
10,000 square feet of space. The first floor consisted
of lending offices on one side and the bank lobby
on the other side. The basement housed all of our
back-office operations. Today, due to our growth and
need to support our 22 branches, we have close to
100,000 square feet of space in downtown Lowell.
George Duncan’s office is located in the same spot
today as it was when Enterprise opened 25 years
ago, overlooking the main branch lobby, easily visible
and accessible to anyone coming into the bank.
The first day we opened, we took in a staggering
$5.5 million in deposits. All 21 Enterprise bankers
joined for a champagne celebration when the doors
closed at the end of the day. The toast would be one
of our many celebrations through the years. We have
always put a priority on thanking and recognizing
each other for a job well done.
From the beginning, the success of our Enterprise
family has been founded on teamwork. We operate
as a family, where individuals respect, trust, and care
for each other both professionally and personally.
When Enterprise Bank was founded, this is what
we deeply believed in and wanted for our Enterprise
family more than anything else. It is today—and will
always be—our most important operating principle.
Our Enterprise family has continued to grow. We
now have 440 Enterprise Bankers—an inspiring and
wonderful group of caring, kind, hard-working, and
proud people. Personally, I could not adequately
express the deep gratitude I have for being a part of
all the wonderful and kind people that make up the
Enterprise team.
Looking ahead, our vision includes continued
organic growth and continued expansion into
nearby communities. We are deeply committed
to preserving the heritage, values, principles, and
culture of “Our Enterprise.” We take our fiduciary duty
extremely seriously and we strive for nothing less than
excellence in all that we do—for our employees, our
customers, our communities, and our shareholders.
Enterprise Bank Annual Report 2013 » 15
25 Years of
T E C H N O L O G Y
at Enterprise Bank
By Stephen J. Irish, Chief Operating Officer/EVP
In the 25 years since Enterprise Bank opened its doors,
advancements in technology have revolutionized the
way we do banking, making the banking experience
safer, faster and more convenient for our customers.
Everything we do with technology is to create a better
experience for our customers—to enable them to
do their banking when they want to do it, how they
want to do it, and in the easiest and most convenient
way possible. And for 25 years, Enterprise Bank
has been committed to investing in technology to
enhance convenience, security, and time efficiency
for customers.
Technology has changed how we conduct business,
but not the core principles of the business. The
foundation of Enterprise Bank is based on relationships,
not transactions, so customer service and personal
engagement with customers will always be the priority.
When I came on board as Chief Information Officer at the
fledgling Enterprise Bank in 1988, it was a different time,
with floppy disks, no smartphones, and no internet.
The early 1990s saw the advent of the first online
banking, using downloaded software and dial-up
modems. The more robust online banking—and later,
mobile banking—that developed over the next 20 years
has enabled our customers to make most banking
transactions without traveling to a physical branch
building or ATM.
With the dramatic increase in online and mobile banking
comes the need for even more stringent security. That’s
why our team constantly works with security experts to
detect and prevent fraud and security breaches.
Over the past year, with the shift from online banking to
mobile banking, we have focused on rolling out a robust
line of mobile banking products for smartphones and
16 » Enterprise Bank Annual Report 2013
PHOTO: Steve Irish working out all the technical
difficulties in preparing for the Bank’s opening on
January 3, 1989.
tablets, including bill pay, transfers, and mobile
deposit. One of the newest and most popular of
those products is Popmoney®, an innovative personal
payment service that allows customers to send and
receive money as easily as they send and receive email
and text messages, using their current checking or
savings account.
So what is on the horizon for technology at
Enterprise Bank? Whatever it takes to give our
customers the best experience possible. Every day
at Enterprise Bank, we ask ourselves, “How can
we use technology to make a better experience for
our customers?”
Enterprise Bank Annual Report 2013 » 17
Enterprise Bank:
A T I M E L I N E
25 Years, Immeasurable Impact
1988
» Incorporators of Enterprise Bank file the application with banking regulators to establish Enterprise Bank on March 14.
Pictured above left are George Duncan and Attorney Phil Nyman at the regulation hearing.
» Enterprise Bank holds its first meeting with the Board of Directors on June 20.
» Construction begins at 222 Merrimack Street in Lowell, the future site of Enterprise Bank.
» Enterprise Bank issues initial stock offering (July–September), raising $10.26 million in capital.
18 » Enterprise Bank Annual Report 2013
1989
1990
1991
1992
1993
» Enterprise Bank celebrates
1st anniversary.
» In first year of business,
Enterprise Bank surpasses
$67 million in loans made and
$112 million in deposits.
» George Duncan receives
“Entrepreneur of the Year” from
Ernst & Young, Inc. magazine
and Merrill Lynch.
» Enterprise Bank grows
to 50 employees.
» Establishes Investment
Advisory Services
» Enterprise Bank pays first
annual stockholder dividend
of $.10 per share ($.025 per share
after adjustment to reflect the
two-for-one stock splits in 1999
and 2006).
» Mortgage Center opens at
19 Palmer Street, Lowell, MA.
» Chelmsford branch opens
at 185 Littleton Road.
» Enterprise Bank opens on
January 3 with 21 employees at
222 Merrimack Street, Lowell, MA.
» Enterprise grows to $100 million in
assets in first nine months.
» Enterprise Bank issues second
stock offering (June–November),
raising $4.91 million in capital.
» Enterprise Bank celebrates
first (Q4) of 97 consecutive
profitable quarters.
Enterprise Bank Annual Report 2013 » 19
1994
1995
1996
1997
1998
» Enterprise Bank celebrates
5th anniversary.
» Leominster branch opens
at 4 Central Street.
» Tewksbury branch opens
at 910 Andover Street.
» Dracut branch opens at
1168 Lakeview Avenue.
» Enterprise Bank family grows
to 150 employees.
» Enterprise Bank is recognized by
the Small Business Administration
as “one of the leading banks
lending to small businesses.”
» Enterprise Bank is listed by
asset size in September (Boston
Business Journal) for the first time
in the top 25 commercial banks
in Massachusetts.
» Enterprise Bank family grows
to 100 employees.
» Billerica branch opens
at 674 Boston Road.
» Enterprise Bank earns “authorized”
lender status from SBA.
» Enterprise Bank receives Blue Chip
Enterprise Initiative Award from the
U.S. Chamber of Commerce.
» Enterprise Bank launches presence
on the World Wide Web with the
bank's first website.
» Combined assets under
management reach
$500 million mark.
» Enterprise Bank reaches
$500 million in loans made.
» Enterprise Bank opens an in-house
training center to continually
educate and train Bank employees
to better serve our customers.
» Boston Business Journal lists
Enterprise Bank as #2 of Top
5 SBA lenders in Massachusetts
and the top lender in
Eastern Massachusetts.
20 » Enterprise Bank Annual Report 2013
1999
2000
2001
2002
2003
» Enterprise Bank celebrates
10th anniversary.
» Enterprise Insurance Services
is established.
» Westford branch opens
at 237 Littleton Road.
» Online banking services
are introduced on the
Bank’s website.
» Enterprise Bank stock splits 2 for 1.
» Branches at 20 Drum Hill Road,
Chelmsford, and 223 Boston Road,
North Billerica, are added to the
Enterprise Bank family on July 24.
» Enterprise Bank reaches
$1 billion in loans made.
» Enterprise Bank reaches #1 in
market share of FDIC deposits
for the region containing Billerica,
Dracut, Lowell, Tewksbury,
and Westford.
» The Enterprise Bank 9/11 Fund
raises more than $112,500 to
provide assistance to local families
whose lives were affected by the
September 11 terrorist attacks.
» Enterprise Bank reaches
milestone of $1 billion in assets
under management.
» Enterprise Bank is ranked #1 in
Massachusetts by Entrepreneur
Magazine as the “top small-
business friendly micro-lender.”
» Connector branch opens at
430 Gorham Street, Lowell.
» Fitchburg branch opens at
420 John Fitch Highway.
Enterprise Bank Annual Report 2013 » 21
2004
2005
2006
2007
2008
» Enterprise celebrates
15th anniversary.
» Enterprise Bank enters Southern
New Hampshire market with
opening of Salem branch at
130 Main Street.
» EBTC is listed on NASDAQ.
» Enterprise Bank unveils new logo.
» Enterprise Bank reaches milestone
» Tewksbury Center branch opens
at 1120 Main Street.
» Andover branch opens in the heart
of downtown at 8 High Street.
» Enterprise Bank is recognized
as the #1 504 Lender in
Massachusetts by SBA.
» Enterprise is ranked the
12th largest commercial bank
in Massachusetts.
» Enterprise is ranked the
10th largest commercial bank
in Massachusetts.
» Enterprise Bank stock splits 2 for 1.
» Enterprise Bank launches Business
Remote Deposit Capture.
of $1 billion in assets.
» Recognizing hours spent by
employees in community service,
the Boston Business Journal
honors Enterprise Bank with a
Corporate Philanthropy award, the
first of seven consecutive years
receiving the award.
» Enterprise Bank installs first
sustainable and environmentally
friendly “green” roof in
downtown Lowell.
» Enterprise Bank introduces
the Non-Profit Collaborative,
offering educational forums and
resources to benefit local non-
profit organizations.
» Methuen branch opens
at 255 Broadway.
» Enterprise Bank launches
first Celebration of Excellence
to recognize the individuals,
businesses, educators, and non-
profit organizations that envision,
create, sustain, support, and foster
our communities.
22 » Enterprise Bank Annual Report 2013
Enterprise Bank named one of the 2010
Best Places to Work in America
®
2009
2010
2011
2012
2013
» Enterprise Bank celebrates
20th anniversary.
» Derry, NH branch opens
at 47 Crystal Avenue.
» Hudson, NH branch opens
at 45 Lowell Road.
» Pelham, NH branch opens
at 139 Bridge Street.
» Lawrence branch opens
at 290 Merrimack Street.
» Enterprise Bank earns national
recognition as one of the
Best Places to Work in America
(14th for mid-sized companies).
» Enterprise Bank launches retail
and business mobile banking.
» Total assets under management
exceed $2 billion.
» Tyngsborough branch opens
at 253 Middlesex Road.
» Nashua, NH branch opens
at 88 Main Street.
» Boston Business Journal ranks
Enterprise Bank #2 among
Massachusetts businesses for
average hours spent by employees
in community-based activities.
» Enterprise Bank family grows
to over 400 employees.
» Enterprise Bank reaches
$5.6 billion in loans made.
» Enterprise Bank launches mobile
application for smartphones.
» Enterprise Bank launches mobile
deposit and application for tablets.
» Acton branch opens
at 340 Great Road.
» Enterprise Bank issues third stock
offering (October–December),
raising $8.94 million in capital.
» Enterprise Bank commissions
dozens of local artists to create
“Community Ties,” a unique art
display in the Bank’s lobbies that
interprets our purpose statement
through various art mediums.
Enterprise Bank Annual Report 2013 » 23
Branches
Enterprise Bancorp, Inc. and Enterprise Bank Board of Directors
Our expanding market includes opportunities for future growth.
In order to best serve our growing customer base, Enterprise
Bank seeks out convenient branch locations throughout the
Merrimack Valley and North Central regions of Massachusetts
and Southern New Hampshire.
George L. Duncan
John P. Harrington
Founder and Chairman of the Board
Retired Energy Industry Executive
Arnold S. Lerner
Vice Chairman and Lead Director of the Board;
Retired Radio Station Owner
John A. Koutsos
President, Alec’s Shoe Store, Inc.
Michael A. Spinelli
Secretary of the Board;
Founder, Global Tourism Solutions
Eric W. Hanson
Assistant Secretary of the Board;
Chairman of the Board and CFO,
Klin Groupe, LLC
Gino J. Baroni
Owner and Managing Principal, Trident
Project Advisors and Development Group
John P. Clancy, Jr.
Chief Executive Officer, Enterprise Bank
John R. Clementi
Chief Executive Officer,
Longview Development, LLC
James F. Conway III
President, CEO and Chairman,
Courier Corporation
Dr. Carole A. Cowan
President, Middlesex Community College
Normand E. Deschene
President and Chief Executive Officer,
Circle Health and Chief Executive Officer,
Lowell General Hospital
Lucy A. Flynn
Principal, LAF Associates, LLC
John T. Grady, Jr.
Senior Advisor, Moelis & Company
Richard W. Main
President, Enterprise Bank
Dr. Jacqueline F. Moloney
Executive Vice Chancellor,
University of Massachusetts Lowell
Michael T. Putziger
Chairman, WinnCompanies and
of Counsel, Murtha Cullina, LLP
Carol L. Reid
Financial Executive; Former Vice
President, Corporate Controller and Chief
Accounting Officer, Avid Technology, Inc.
GENERAL COUNSEL
Philip S. Nyman
SEC & REGULATORY COUNSEL
Hunton & Williams
FINANCIAL CONSULTANT
Raymond L. Anstiss, Jr., CPA
TRUST & INVESTMENT
MANAGEMENT COUNSEL
George B. Leahey
HONORARY BOARD MEMBERS
Kathleen M. Bradley
Nancy L. Donahue
Charles P. Sarantos
Nickolas Stavropoulos
Branch locations are shown in green.
24 » Enterprise Bank Annual Report 2013
9595959393901901902904954954954953331281283222BostonWorcesterNEW HAMPSHIREMASSACHUSETTSHudsonNashuaPelhamLowellTewksburyLawrenceTyngsboroMethuenTewksburyChelmsfordDracutLeominsterActonSalemDerryAndoverLowellWestfordBillericaChelmsfordFitchburgN. BillericaMethuenTewksburyChelmsfordDracutLeominsterActonSalemDerryAndoverLowellWestfordBillericaN. BillericaHudsonNashuaPelhamChelmsfordLowellTewksburyLawrenceTyngsboroFitchburgWilmingtonBurlingtonNorthAndoverConcordPlaistowAyerWindhamLondonderryBedfordHaverhillNorthReadingLittletonReadingLexingtonWestConcordWestConcordHollisMerrimackHollisMerrimack Enterprise Bank
222 Merrimack Street, Lowell, Massachusetts 01852 » 978-459-9000
22 Convenient Locations in:
Massachusetts: Acton » Andover » Billerica » Chelmsford » Dracut » Fitchburg » Lawrence » Leominster » Lowell » Methuen » Tewksbury » Tyngsborough » Westford
New Hampshire: Derry » Hudson » Nashua » Pelham » Salem
Investor Relations
Enterprise Bancorp, Inc.
222 Merrimack Street, Lowell, MA 01852
978-459-9000
shareholders@ebtc.com
Transfer Agent and Registrar
Shareholders who have questions regarding their
ownership of Enterprise Bancorp, Inc. stock
should contact the Registrar:
Computershare Trust Company, N.A.
250 Royall Street, Canton, MA 02021
1-888-218-4390
Annual Meeting
The 2014 Annual Meeting of shareholders
will be held on May 6, 2014 at 4pm at the
Vesper Country Club
185 Pawtucket Boulevard
Tyngsborough, MA 01879
info@ebtc.com » EnterpriseBanking.com
The common stock of Enterprise Bancorp, Inc. is traded on the NASDAQ Stock Market under the symbol “EBTC.”
Our Purpose
The Enterprise Bank team helps create
successful businesses, jobs, opportunities, wealth,
and vibrant, prosperous communities.
EnterpriseBanking.com
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