Enterprise Bancorp, Inc
Annual Report 2014

Plain-text annual report

Extraordinary Exceptional Capabilities Our Community Unwavering Support Service Exceptional The Power of Teamwork Our Community Extraordinary Service 2014 Annual Report Exceptional Capabilities About the Artwork About Our Team As part of Enterprise Bank’s passionate commitment to the cultural and We care deeply about and take great pride in our Enterprise Bankers, whose arts community, we have purchased or commissioned dozens of pieces energy, desire, talent, and respect and caring for each other are the keys to our of artwork from local artists to provide stunning visual interpretations of success. We work as a family, drawing together on our strength and respect for our mission and purpose statement in our corporate office and branches. one another, enabling us to differentiate ourselves through our customer service, We commissioned local artist Tom Gill to create a painting representing energy, passion, and leadership. Being an Enterprise Bank family member teamwork, one of our core values at Enterprise Bank. According to the artist, means being united by our core values and principles, having a deep sense of “Scull Boats on the Merrimack” (pictured at right) embodies the “energy and compassion and trust for each other, and making a difference in the lives of our power of people united and working together towards a common goal.” customers, our communities, and our shareholders. “Where is the spiritual value of rowing?…The losing of self entirely to the cooperative effort of the crew as a whole.” —The Boys In the Boat George Yeoman Pocock was a leading designer and builder of racing shells in the 20th Century. Pocock-built shells began to win U.S. Intercollegiate Rowing Association championships in 1923. He achieved international recognition by providing the eight-oared racing shells which won gold medals in the 1936 Summer Olympics with a crew from the University of Washington. Artwork by Tom Gill 1 Table of Contents Letter from the Chairman, CEO, and President Selected Financial Data Celebration of Excellence Our Stories Life Alive The Happy Chocolatier Lowell Community Charter Public School Chelmsford Housing Authority Silverio Insurance Merrimack Valley YMCA American Laboratory Products Company Simply Khmer Keystone Builders PRG (Persian Rug Gallery) Fitchburg Art Museum Branch Locations & Board of Directors 3 7 8 9 10 12 14 16 18 20 22 24 26 28 30 32 Dear Friends While we have made remarkable advances since community needs and their ability to act quickly and strong and trustful relationships and creating Enterprise Bank was founded, our foundation has effectively. While local banks may have a strong memorable and personal experiences. We work remained the same—our core values, pride and focus on the community, most have not developed diligently each day to earn our customers’ trust. With all pursuit of excellence, long-term focus, and deep their commercial lending, technology, mobile decisions being made locally, Enterprise Bank as a true sense of mission and purpose. Throughout our and electronic banking, wealth management and community bank is highly nimble and responsive. 26-year history, we have consistently outperformed insurance offerings. At Enterprise Bank, unlike most the banking industry, which we believe is a direct banks, we excel at both. The combination of our result of our passion and dedication for putting state-of-the-art products, technology, and services, our employees, customers, and communities first, delivered at a high service level by bankers who creating tremendous value for these stakeholders truly care about their customers’ and communities’ and for our shareholders. well-being, truly separates Enterprise Bank from other Enterprise Bank offers a differentiated value proposition to our customers in many ways. We offer products, technology, and services that are comparable to, and in many cases surpass, those banks and financial institutions. Exceptional Products, Technology, Services, and Customer Focus of the large megabanks. Enterprise Bankers have Very few banks, of any size, have the capabilities that authentic passion and purpose to provide solutions we have in commercial lending, mobile and digital that meet each customer’s unique needs. Most banking, cash management, wealth management, importantly, Enterprise Bank is a truly authentic trust services, insurance services, mortgage community bank that cares deeply for our employees, lending, and personal banking services. Our overall customers, and communities. capabilities, as well as our relentless focus and Our customers know that we truly value and care about them, and they recognize the level of personal attention, service, and accessibility they would not get elsewhere. Our focus on each customer’s unique needs is demonstrated in the testimonials that are contained in this annual report. Unwavering Support for Our Community We will always be a community bank. While some in the banking industry define a community bank as a bank with less than $10 billion in assets or fewer than 75 branches, we believe that being a community bank has little to do with size and more to do with culture and how a bank operates. Businesses, non- profit organizations, and individuals want a bank that Banking industry experts consider banks in the $2 billion – $10 billion asset size to be in the “sweet spot,” the size where a progressive bank can have investment in technology—including in mobile and knows them, understands their needs, is responsive, digital banking products—give our customers banking communicates proactively, acts as a trusted advisor, options that are highly sophisticated and advanced. and gives back to their communities. large bank products, services, and capabilities We combine our state-of-the-art capabilities with As a truly authentic community bank, we take very while also operating as a local community bank. customer focus and five-star service from our seriously our pledge to make a positive difference The large regional, national, and international banks Enterprise Bankers, who excel in understanding both in our communities; we would not be a community may have a strong product offering, but they our products and our customers. We are committed bank otherwise. Enterprise, as a bank, and our fall short in their understanding of customer and to exceeding customer expectations by developing employees as individuals, are deeply entrenched 3 in the communities we serve, providing extensive participation and leadership in Enterprise Bank was founded in 1988, we have reported a cumulative net income of non-profit organizations, committing to a high level of charitable giving, and building $150 million, paid $43 million in dividends (of which $15.3 million has been reinvested positive and supportive business relationships with non-profit organizations. We give and $27.7 million has been paid in cash), and we have originated more than $6 billion back significantly to our communities because it is the right thing to do and because in loans in our communities. Since we opened our doors our purpose to create we understand the vital importance of non-profit organizations to our communities’ success. We are proud to say that we believe our communities are significantly success for businesses, non-profit organizations, communities, and people, and to play a vital role in stimulating our region’s economy and communities has never wavered. enriched because of Enterprise Bank. 2014 Financial Results In 2014 we reported the following increases: net income increased by 8%; loans by As we continue to grow, we will continue to better ourselves and always measure ourselves in terms of superlatives. We will always remain true to our founding purpose, mission and responsibility as a local, independent community bank. 10%; deposits (excluding brokered deposits) by 6%; and total assets by 9%. Over the last 20 years, our compounded average annual asset growth rate has been in excess Thank You of 10% with most individual year’s growth approximating 10%, which is extraordinary We are fortunate to have financial stability and a consistently growing company, and and highly consistent long-term organic growth. Enterprise Today—and Tomorrow we are fortunate to be “just the right size.” Most of all, we are fortunate to have an incredibly dedicated and passionate team of 480 Enterprise employees and directors. While we have made incredible strides and reached many significant milestones in our As of December 31, 2014, we surpassed $2 billion in assets and $2.75 billion in total first 26 years, the future for Enterprise Bank has never been more exciting. On behalf assets under management. We also celebrated our 101st consecutive quarter of of the Enterprise Bank team, we would like to express our deepest and most sincere profitability, reported our 25th consecutive profitable year, and increased our dividend appreciation to each of you—our shareholders, customers and communities—for the for the 23rd consecutive year since we started paying a dividend in 1992. Since trust and confidence you have placed in us. 2014 Highlights » Increased net income by 8%; loans by 10%; » Deposited 12,959 checks through our mobile deposit deposits (excluding brokered deposits) by 6%; application, up 56% from 2013. and total assets by 9%. » Reached over $2 billion in assets and recorded our 101st consecutive quarter of profitability as of » Deposited over 1.1 million checks through our remote deposit scanners. Combined with the mobile app deposits, this accounts for 37% of all check deposits December 31, 2014. with the bank. » Increased personal mobile banking usage by 27%, » Awarded, for the third time, the SBA 504 Lender of the from 41% in 2013 to 68% in 2014. Year Award for the State of New Hampshire. » Recognized for the second consecutive year as one of the top-performing small-capitalization banks in the nation by investment banking firm Sandler O’Neill & Partners, achieving “All Star” status (among only 10 of 443, or the top 2.5% of banks evaluated). » Recognized by The Boston Globe as one of the 2014 Top Places to Work in Massachusetts (#6 among large-sized companies). 4 Richard W. Main, President Jack Clancy, Chief Executive Officer George L. Duncan, Founder and Chairman 2014 Highlights (continued) » Elected two highly respected business leaders to the Board of Directors: Mary Jane King of Nashua, NH, President of the Conway Management Company; and Luis M. Pedroso of Hampton, NH, Co-Founder, President, and CEO of Accutronics, Inc. and the Founder and former President and CEO of Qualitronics, Inc. » Expanded language options on select ATMs to » Implemented a direct stock purchase plan in which include Khmer. shares of Enterprise Bancorp, Inc. can be purchased » Hosted our 5th Celebration of Excellence with close to 2,000 people in attendance (see page 8). » Expanded our Lowell office headquarters with the addition of 20,000 square feet at 18 Palmer Street, including office space, training rooms, and a Community Room. directly from Enterprise. » Celebrated the 10th Anniversary of our Salem and Andover branches and the 15th Anniversary of our Westford branch. 5 Deposits $1.47 $1.68 $1.58 ($ in billions) (Excluding Brokered Deposits) $1.24 $1.33 Total Loans $1.67 $1.52 $1.36 $1.25 ($ in billions) $1.14 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Net Income Total Assets Total Assets Under Management ($ in millions) ($ in billions) $14.7 $13.5 $12.4 $10.6 $10.9 $2.76 $2.59 $2.33 $2.06 $1.95 $2.02 $1.85 $1.67 $1.40 $1.49 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 6 Selected Financial Data Years Ended December 31 2014 2013 2012 2011 2010 EARNINGS DATA {dollars in thousands, except per share data} Net interest income Provision for loan losses Net interest income after provision for loan losses Non-interest income 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 $ $ $ $ $ $ $ 71,230 1,395 69,835 12,813 1,619 62,031 22,236 7,585 14,651 1.45 1.44 16.35 0.48 10,118,762 10,209,243 2,022,228 64,122 674,604 2,760,954 1,672,604 27,121 245,065 10,102 1,768,546 58,900 10,825 166,950 0.76% 9.20% 1.62% 8.26% 33.10% $ $ $ $ $ $ $ 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 11,151 791 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 10,594 875 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% 7 On November 12, 2014, Enterprise Bank celebrated our fifth Celebration of Excellence, a special event to thank and honor those remarkable entrepreneurs, organizations, and community, education, and business leaders who make our world and communities a better and more vibrant place to live, work, and visit. The 2,000 guests who attended the ceremony at the Lowell Memorial Auditorium were inspired by stories of the honorees’ dedication, perseverance, and triumph over adversity, and by the incredibly moving keynote address by Sal Giunta, the first living Medal of Honor recipient since Vietnam. These honorees are not seeking recognition and they know that creating success is its own reward, but it is our honor and privilege to provide them with the public recognition they so richly deserve. It is just another way Enterprise Bank is supporting and giving back to the communities that we call home. We extend our sincere congratulations and appreciation to the 2014 Celebration of Excellence Award recipients. Business of the Year Colony Foods, LLC Lawrence, MA Non-Profit of the Year Catie’s Closet Dracut, MA Parlee Farms Tyngsboro, MA Corporate Philanthropy Howell Custom Building Group Lawrence, MA Groundwork Lawrence Lawrence, MA Community Service Dr. John Mulqueen Gardner, MA Entrepreneur of the Year Nancy Chippendale Nancy Chippendale’s Dance Studios North Andover, MA Educator of the Year Rebecca Duda Justus C. Richardson Middle School Dracut, MA George L. Duncan Award of Excellence Joe Faro, Tuscan Brands, Salem, NH Dorcas Grigg-Saito, Lowell Community Health Center, Lowell, MA 8 Exceptional Capabilities Extraordinary Service Unwavering Commitment to Community At Enterprise Bank, we measure our success not by numbers and transactions, but by the success of our clients and by the long-lasting relationships we build, the communities and lives we influence, and the dreams we help fulfill. In the following pages, we invite you to experience Enterprise Bank through the stories of those who know us best: our clients. 9 An Entrepreneurial Spirit Life Alive, an “Urban Oasis & Organic Café” founded in Lowell in 2004, has a mission to renew people’s energy and connection to life by soulfully serving delicious, organic, healing food in an inspiring environment that honors local artisans, the community, and the global ecology. With the success of the Lowell location—which also sells organic body care, essential oils, and supplements, in addition to great food and drinks—owner Heidi Feinstein opened a second café in Cambridge in 2010 and a third in Salem, MA in 2012. Her vision for growth includes a plan to expand across the country, with Enterprise Bank by her side. 10 ‘‘They care about me” Pictured: Heidi Feinstein, Founder and CEO “From day one, Enterprise Bank has been on my side as an advisor and partner, enabling me to reach my business and personal goals. They care about me and they care about my success. I choose to bank with Enterprise because we are both mission-driven enterprises, with a vision to make a difference and have a positive social impact in the communities we serve.” —Heidi Feinstein, Founder and CEO Life Alive, locations in Lowell, Cambridge, and Salem, MA “From the first moment we heard the concept and vision for growth for Life Alive, Enterprise Bank has been there every step of the way, providing the commercial lending, cash management services, and financial advice to help Heidi develop and grow her business and achieve her dreams.” —Maria Lobao, Branch Relationship Manager, VP Enterprise Bank 11 Champion of Small Business The Happy Chocolatier, founded in 2011, is comprised of a retail shop, a corporate gift program, and a wholesale business. The retail shop in Acton, MA sells a variety of hand-crafted, fine chocolates and ice cream, and manufactures select confections on site. The corporate gift program provides a wide range of gifts to area businesses, from event favors to large gift baskets. The wholesale business makes its signature confections, Cubze, available to gift shops, florists, small grocery stores and pharmacies, and specialty food and wine shops. The company is known for its signature Cubze, unique truffles coated in chocolate and hand foiled with an inspirational message about happiness. “At Enterprise Bank, it is an important part of our mission to provide responsive, efficient, and convenient banking services to the small businesses we serve, helping them to meet their goals and achieve success.” —Wendy Baker, Branch Relationship Manager, VP Enterprise Bank 12 “A high level of confidence in their team” “We may be a small startup business, but at Enterprise Bank we are treated the same as a multi-million dollar account. Their professionalism and attention to detail give me a high level of confidence in their team.” —Paul McMahon, Co-Founder The Happy Chocolatier, Acton, MA 13 Celebrating Vision and Mission The Lowell Community Charter Public School has a mission to graduate creative, confident and independent thinkers, global citizens, and leaders who give back to their community. The school serves 750 students from kindergarten to seventh grade, with a majority of low-income, minority students whose first language is not English. Since the state nearly closed the school four years ago due to low MCAS scores, the school has achieved a Level 1 status three years in a row, with MCAS scores meeting and exceeding those of peers across the state. The Level 1 designation is reserved for state schools that meet targeted goals, the highest classification level that only 26% of all schools reached this year. “Our partnership with Enterprise Bank has been critical “We understand and appreciate the importance of a generous to our school’s success. All banks deal with numbers and competitive benefits plan in attracting and retaining the and dollars, but Enterprise Bank grasps and celebrates highest quality teachers and staff. It is our responsibility and the vision and mission our dollars are trying to fulfill. privilege to support the tremendous success of the Lowell They know us, they visit the school regularly, and they Community Charter Public School by creating a specialized consistently help us make good decisions to ensure benefits package that maximizes their resources and achieves our school’s success and future.” the best return on their investment.” —Kathy Egmont, Head of School Lowell Community Charter Public School, Lowell, MA —Jim Moriarty, Senior Vice President Enterprise Insurance Services/HUB International New England, LLC 14 †Insurance products are not a Deposit, not FDIC insured, not guaranteed by Enterprise Bank, not insured by any government agency, and may lose value. “Ensure our school’s success and future” Pictured: Elvira Paulino, Director of Human Resources and Diversity and Kathy Egmont, Head of School 15 Exceeding Expectations The Chelmsford Housing Authority (CHA), and its affiliate non-profit CHOICE, Inc., is dedicated to meeting the needs of the elderly, veterans, disabled and families in need of affordable housing. Supportive services tailored to the needs of each group are considered of the utmost importance. Families are offered support to continuously improve themselves, achieve self-sufficiency, and eventually move towards homeownership. The disabled are directed to the appropriate local services in order to meet their individual needs. In addition to financial services, Enterprise Bank supports CHA through charitable donations, volunteering, and leadership support on CHA’s Board of Commissioners. 16 Pictured: Connie Donahue, Deputy Director and David Hedison, Executive Director “A true collaborative partner’’ “For more than a decade, Enterprise Bank has been a true partner in serving our community, going well beyond what many would consider traditional banking services to make sure we can fulfill our mission of providing a safe, affordable place for our families, veterans, and seniors to live.” —David Hedison, Executive Director Chelmsford Housing Authority, Chelmsford, MA “Enterprise Bank has been privileged to work with the Chelmsford Housing Authority for more than 15 years, providing the responsive and competitive commercial and construction lending services they need to best serve their clients and community.” —Denise Marcaurelle, Regional Manager, SVP Enterprise Bank 17 ‘‘No one” can beat Enterprise Bank” Pictured: Julia Silverio, Principal; Evan Silverio, Marketing Director; and Dario Silverio, Vice President 18 Leading-Edge Technology Silverio Insurance is an independent insurance agency that has served the Lawrence community and the surrounding areas for more than 30 years, offering competitive rates customized for individual needs. In addition to Massachusetts, the agency is licensed to serve communities in Connecticut, New Hampshire and Rhode Island. Owner Julia Silverio, who founded the agency out of her home in 1984, has been honored in the community as an entrepreneur for outstanding growth and service to the Latino population. “We work to provide Silverio Insurance with quality service, leading-edge technology, and flexible financing solutions to enable them to thrive in the fast-paced insurance industry.” —Andrew Santos, Commercial Lending Officer, AVP Enterprise Bank “There is a real misconception that the bigger banks provide better technology. Enterprise Bank is constantly updating and enhancing their technology to be equal to or even better than what bigger banks are offering. This is incredibly valuable and convenient for us as a small business. And no one can beat Enterprise for their customer service.” —Evan Silverio, Marketing Director Silverio Insurance, Lawrence, MA Enterprise Bank Richard Chávez, Commercial Lending Officer, VP Danissa Lembert, Branch Relationship Manager Andrew Santos, Commercial Lending Officer, AVP 19 “Everything we believe banking should be” “We are proud to support the Merrimack Valley YMCA’s vision by providing the commercial lending, cash management, and deposit services customized to meet their financing needs, both in the present and in the future.” —Arthur Santos, Senior Commercial Lending Officer, SVP Enterprise Bank “Enterprise Bank is a trusted and trustworthy financial partner. They represent everything we believe banking should be: flexible, creative solutions, a deeply personal relationship, and a strong commitment to community.” —Stephen Ives, President & CEO Merrimack Valley YMCA 20 Flexible, Creative Solutions The Merrimack Valley YMCA— comprised of facilities in Andover/North Andover, Lawrence, and Methuen— stresses personal growth, teamwork, fair play, participation and fun in all YMCA programs. The Andover/North Andover YMCA, which serves 8,000 members, is currently undergoing a $21 million expansion to double the existing facility space and feature a number of enhancements, including a new childcare development center, an expanded aquatics facility, active living center for older adults, expanded wellness center, an active learning center and a rehabilitation center operated by Lawrence General Hospital. The expansion is being financed through fundraising and tax-exempt bond financing provided by Enterprise Bank. Pictured: Stephen Ives, President & CEO 21 “We choose Enterprise Bank because they are dependable, local, and they listen carefully to our needs and respond with meaningful solutions customized for us. They are a great partner for small business and consistently deliver on what they promise.” —Richard Conley, Jr., CEO American Laboratory Products Company Salem, NH “Enterprise Bank is pleased to provide ALPCO with the cash management, deposit services, and lending solutions to help meet their short-term and long-term goals, from their day-to-day cash flow to their growth plan for the future.” —Dwight Feeney, Commercial Lending Officer, AVP Enterprise Bank 22 Pictured: Richard Conley, Jr., CEO and Sean Conley, President listen“They carefully to our needs” Delivering on Our Promise American Laboratory Products Company (ALPCO) in Salem, NH specializes in developing and producing high-quality immunoassay testing kits used for medical research in both biopharma and academic settings. Originally focused on just the endocrinology sector, the company has expanded to numerous other medical fields, including immunology and diabetes and obesity research. ALPCO, which represents more than 60 collaborating partners from around the globe, is in the process of acquiring a new facility in the Salem Industrial Park, to be financed by Enterprise Bank. 23 Focus on the Customer Simply Khmer Restaurant in Lowell offers the finest Cambodian cuisine in a cozy environment. Opened in 2008 by owners Sam Neang and Denise Ban, the restaurant features fresh ingredients from local Cambodian markets to produce the most flavorful and attractive dishes. Along with Enterprise Bank, Sam and Denise were among the first to step up to support families displaced by a tragic Branch Street fire in July 2014, preparing and delivering authentic Cambodian meals for the fire victims at their hotels. “People who say all banks are the same don’t know Enterprise Bank. We feel like we are part of a family.” —Denise Ban and Sambath Neang, Owners Simply Khmer, Lowell, MA 24 “Part of a family’’ “By providing quality and convenient financial services for Simply Khmer’s daily operations, we allow them to keep their focus where they want it: their customers.” —Bopha Malone, Branch Relationship Manager, AVP Enterprise Bank 25 “They are a loyal partner” Earning Our Customers’ Loyalty Keystone Builders is a diversified builder/developer of residential communities and commercial developments throughout New Hampshire and Massachusetts, earning a reputation for attention to detail and design over 30 years in the construction industry. Keystone has also earned a reputation for giving back to the community. Recently, owner Bob MacCormack and Keystone Builders provided pro bono renovations to a meeting house on the property of Ironstone Farm in Andover, MA a non-profit that Enterprise Bank supports and introduced to them. “Enterprise Bank has earned my loyalty. Through every cycle of our business—the growth periods, success periods, down cycles—the one constant is Enterprise Bank, right there looking after my needs. From day-to-day operations to long-term growth, they are a loyal partner, a trusted friend, and a great example of how to succeed in business while giving back to the community.” —Robert MacCormack, Owner and Founder Keystone Builders, Billerica, MA 26 “By listening and understanding the specific needs of each project, we customize our diverse commercial and construction lending products to give Keystone Builders the exact lending solution that best fits those needs at that time.” —Mark Owen, Commercial Lending Officer, VP Enterprise Bank Pictured: Steve MacCormack, Keystone Builders 27 Exceptional Banking Services PRG (formerly the Persian Rug Gallery) in Nashua, NH manufactures, imports, sells, cleans, stores, repairs/restores, and appraises quality and high-value rugs from all over the world. Their downtown Nashua showroom features the region’s largest selection of Oriental, handwoven and machine-made rugs, including the largest selection of power-loomed Karastan rugs in the country. Owner Sy Mahfuz, a third-generation Oriental rug expert, is recognized as among the industry’s leading experts, bringing a passion and love for Oriental rugs to every encounter. PRG had been with the same bank for more than 60 years before choosing Enterprise Bank in 2014. “We are dedicated to providing PRG with exceptional banking services customized to meet their needs, from commercial lending to cash and deposit services. More importantly, we provide them with the peace of mind and confidence that Enterprise Bank stands behind their family and their company every step of the way.” —Michael Fox, Senior Commercial Lending Officer, SVP Enterprise Bank 28 “When we knew it was time to choose a new bank, Enterprise Bank made the transition seamless and effortless and one of the most enjoyable and satisfying experiences I’ve had as a businessman. It was the best decision we ever made. Enterprise Bank exceeds our expectations and delivers a level of service that you just don’t find anymore in banking. Our success and growth and future are in great hands with Enterprise Bank.” —Sy Mahfuz, Owner PRG, Nashua, NH “Enterprise Bank exceeds our expectations” Pictured: Fouad Mahfuz and Sy Mahfuz, Owners 29 “Much more than a relationship” 30 Detail of an installation created for the FAM exhibition One Language is Never Enough: Latino Artists in Southern New England Text-Tile-Textual, 2014 serigraphy on paper by Ingrid de Aguiar Sanchez Commitment to Community The Fitchburg Art Museum (FAM) serves a vital role in the economy and cultural life of Central New England through its exhibitions of historical and contemporary art, education programs, and economic development collaborations. As a community-oriented museum, FAM is increasingly committed to working with business partners that share the museum’s commitment to service and positive change. Enterprise Bank supports FAM not only through its financial services, but also through charitable donations, community event planning, and leadership support on FAM’s Board of Trustees. “Through our wealth management and investment services, Enterprise Bank is proud to serve as a steward and trusted advisor for the Fitchburg Art Museum’s endowment, helping the museum to continue to build a strong foundation for the future.” — Patrick Connerty, MSF Vice President, Senior Relationship Manager Enterprise Investment Advisors “We have so much more than a business relationship with Enterprise Bank. It is a true partnership. Enterprise shares our values and commitment to the community, and we have a deep and abiding trust in their financial expertise and guidance.” *Investment products are not a Deposit, not FDIC insured, not guaranteed by Enterprise Bank, not insured by any government agency, and may lose value. —Nick Capasso, Director Fitchburg Art Museum, Fitchburg, MA 31 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 Greater Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. Branch locations are shown in green. 32 George L. Duncan Founder and Chairman of the Board Mary Jane King President, Conway Management Company Arnold S. Lerner Vice Chairman and Lead Director of the Board; Retired Radio Station Owner Michael A. Spinelli Secretary of the Board; Founder, Global Tourism Solutions Eric W. Hanson Assistant Secretary of the Board; Chairman of the Board and Chief Financial Officer, 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, Chief Executive Officer and Chairman, Courier Corporation Dr. Carole A. Cowan Past President, Middlesex Community College Normand E. Deschene President and Chief Executive Officer, Circle Health and Wellforce Lucy A. Flynn Principal, LAF Associates, LLC John T. Grady, Jr. Senior Advisor, Moelis & Company John P. Harrington Retired Energy Industry Executive John A. Koutsos President, Alec’s Shoe Store, Inc. Richard W. Main President, Enterprise Bank Dr. Jacqueline F. Moloney Executive Vice Chancellor, University of Massachusetts Lowell Luis M. Pedroso Co-Founder, President, and Chief Executive Officer, Accutronics, Inc. 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 95959595959593939393909019029029029049549549549529333312810110112812832222WorcesterManchesterBostonManchesterBostonWorcesterNEW HAMPSHIREMASSACHUSETTSHudsonNashuaPelhamLowellTewksburyLawrenceTyngsboroMethuenTewksburyChelmsfordDracutLeominsterActonSalemDerryAndoverLowellWestfordBillericaChelmsfordFitchburgN. BillericaMethuenTewksburyChelmsfordDracutLeominsterActonSalemDerryAndoverLowellWestfordBillericaN. BillericaHudsonNashuaPelhamChelmsfordLowellTewksburyLawrenceTyngsboroFitchburgLexingtonNorthAndoverConcordPlaistowAyerWindhamLondonderryBedfordHaverhillNorthReadingLittletonReadingWilmingtonBurlingtonWestConcordHollisMerrimackBedfordWilmingtonBurlingtonNorthAndoverConcordPlaistowAyerWindhamLondonderryBedfordHaverhillNorthReadingLittletonReadingLexingtonWestConcordHollisMerrimackBedford“Enterprise Bank exceeds our expectations” 33 Pictured: Sy Mahfuz and Fouad Mahfuz, Owners Exceptional Banking Services PRG (formerly the Persian Rug Gallery) in Nashua, NH manufactures, imports, sells, cleans, stores, repairs/restores, and appraises quality and high-value rugs from all over the world. Their downtown Nashua showroom features the region’s largest selection of Oriental, handwoven and machine- made rugs, including the largest selection of power-loomed Karastan rugs in the country. Owner Sy Mahfuz, a third-generation Oriental rug expert, is recognized as among the industry’s leading experts, bringing a passion and love for Oriental rugs to every encounter. PRG had been with the same bank for more than 60 years before choosing Enterprise Bank in 2014. “We are dedicated to providing PRG with exceptional banking services customized to meet their needs, from commercial lending to cash and deposit services. More importantly, we provide them with the peace of mind and confidence that Enterprise Bank stands behind their family and their company every step of the way.” —Michael Fox, Senior Commercial Lending Officer, SVP Enterprise Bank “When we knew it was time to choose a new bank, Enterprise Bank made the transition seamless and effortless and one of the most enjoyable and satisfying experiences I’ve had as a businessman. It was the best decision we ever made. Enterprise Bank exceeds our expectations and delivers a level of service that you just don’t find anymore in banking. Our success and growth and future are in great hands with Enterprise Bank.” —Sy Mahfuz, Owner PRG, Nashua, NH 34 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. Transfer Agent and Registrar Shareholders who have questions regarding their Annual Meeting The 2015 Annual Meeting of shareholders 222 Merrimack Street, Lowell, MA 01852 ownership of Enterprise Bancorp, Inc. stock will be held on May 5, 2015 at 4:00 p.m. at the 978-459-9000 shareholders@ebtc.com should contact the Registrar: UMASS Lowell Inn & Conference Center Computershare Investor Services P.O. Box 30170, College Station, TX 77842 1-888-218-4390 50 Warren Street Lowell, MA 01852 info@ebtc.com » EnterpriseBanking.com The common stock of Enterprise Bancorp, Inc. is traded on the NASDAQ Stock Market under the symbol “EBTC.” Unwavering Support Our Purpose The Enterprise Bank team helps create successful businesses, jobs, opportunities, wealth, and vibrant, prosperous communities. Exceptional Capabilities Our Community Extraordinary Service Exceptional Capabilities Our Community EnterpriseBanking.com 002CSN483A ENT-MKT76 Unwavering Support 

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