Enterprise Bancorp, Inc
Annual Report 2017

Plain-text annual report

O U R P E O P L E O U R S U C C E S S 2 0 1 7 A N N U A L R E P O R T There is a reason I have dedicated 30 years of my life to Enterprise Bank: this is a family where everyone treats one another with respect and consideration, and is truly dedicated to serving our customers and our communities. dedicated to serving our customers and our communities. My years with Enterprise Bank have been the best of my life.” My years with Enterprise Bank have been the best of my life.” Carole I. McOsker Carole I. McOsker – Assistant to the Chairman TABLE OF CONTENTS Letter from the Chairman, CEO and President. . . . . . . . . . . . . . . . . . . . . . . . . . .2 Selected Financial Data . . . . . . . . . . . . . . . . . . . . . .9 OUR CUSTOMERS’ STORIES CCS Concrete, LLC. . . . . . . . . . . . . . . . . . . . . . . . . .10 C.W. Keller & Associates . . . . . . . . . . . . . . . . . . . . 12 Dermcare Physicians & Surgeons . . . . . . . . . . . .14 Fitchburg State University . . . . . . . . . . . . . . . . . . . 16 Greater Lawrence Family Health Center . . . . . . 18 Jackson Lumber & Millwork . . . . . . . . . . . . . . . . 20 Kistler and Knapp. . . . . . . . . . . . . . . . . . . . . . . . . . 22 Nashua Country Club . . . . . . . . . . . . . . . . . . . . . . 24 Parlee Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Pelham Resort Hotel . . . . . . . . . . . . . . . . . . . . . . . 28 Triton Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Tupelo Music Hall . . . . . . . . . . . . . . . . . . . . . . . . . 32 Valley Collaborative . . . . . . . . . . . . . . . . . . . . . . . 34 Dr. John Walker . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . 38 Pictured on our cover, representing the outstanding Enterprise Bank team members that truly make a difference in our Enterprise, and in our community: Tom Hosey, Jasmine Pandit, Donna LaPointe, Marisa Veiga, Sue Suon, Jesus Suriel, Clare Carroll, Jessica Lord, Shari Howe, Cheryl Stafford and Anne Muita. THANK YOU TO ALL OF OUR TEAM MEMBERS On November 16, 2017, Enterprise Bank was named the number one place to work among large-sized companies in the employee-based “Top Places to Work in Massachusetts” survey from The Boston Globe. Enterprise Bank has been recognized as a top employer since 2012. According to The Boston Globe, the 10th We are so deeply honored and humbled that the opinions of our team members have earned us recognition as the Top Place to Work in Massachusetts. There is nothing more important to us than our Enterprise family, who have made Enterprise what it is today. Our team is our greatest asset and is what sets us apart from other companies. annual Top Places to Work survey honored employers who care for their most valuable resource: the people who work for them. The survey measures employee opinions about their We are truly a family—united by our core values of integrity, community, excellence, teamwork and professionalism—and this recognition is a reflection of the spirit and purpose on which our company’s direction, execution, connection, management, work, Enterprise operates. pay and benefits, and engagement. Those businesses earning Our teams are deeply committed to Enterprise Bank’s caring and a spot in The Top Places to Work share several key traits, including collaborative work environment, as well as our positive and dynamic offering progressive benefits and creative perks, allowing the culture of high standards of excellence, personal accountability and flexibility needed to have good lives both at work and at home, responsibility to each other and our customers, and giving back to embracing the diverse backgrounds of their employees, and our community. We thank each and every one of our Enterprise offering a promising future to all of their workers. Bank team members for making Enterprise what it is today. 1 D E A R F R I E N D S When someone asks what sets Enterprise Bank apart from other banks, our response is unequivocally: “Our people.” While many companies can certainly speak highly of their employees and customer service, we have come to recognize that what we have created here at Enterprise Bank is truly different. We passionately embrace a people-first philosophy that is ingrained in the culture that we live and breathe every day. As we celebrate another successful year, it is important that we acknowledge that it is our team members, inspired by a passionate, vision-driven Board of Directors, who are— and always have been—responsible for creating the success of Enterprise Bank and setting the strong base for our future. OUR GREATEST ASSET At Enterprise Bank, it all starts with hiring highly competent, caring, and purpose-driven people who embrace our culture and genuinely care about our Bank, our customers, and our community. Working together and creating a positive, rewarding, and inspiring working environment translates directly to outstanding service to our customers, leading to financial success and shareholder value. This “people-first equation” creates tangible and measurable results. It has been our operating philosophy from day one and will never change. In 2017, Enterprise Bank was deeply honored to be named the number one place to work among large-sized companies in The Boston Globe’s “Top Places to Work in Massachusetts” survey. This is the sixth consecutive year that Enterprise earned recognition among the top places to work and the first time Enterprise earned the top position in the survey, which measures employee opinions about their company’s direction, communication, management, work, pay and benefits, and engagement. 2 Of the many awards and recognitions we have earned over the past 29 years, none is as meaningful as this one, because it comes directly from our team members. There is nothing more important to us than our team members, who have made Enterprise what it is today and who will always be our greatest asset and what sets us apart from every other bank. We are truly a family, united by our core values of integrity, community, excellence, teamwork, and professionalism. To succeed, our Enterprise Team must be reflective of those we serve. We foster an inclusive culture in our leadership, hiring, and team member development. We embrace diversity and strive always to create an environment where our team members are valued for their diverse perspectives and feel comfortable expressing them. We continually invest in the growth and well-being of our team through initiatives such as formal mentoring programs, tuition reimbursement, wellness programs, and numerous family activities. Through extensive coaching and learning and development training, from professionals both within and outside the Bank, we are developing a new generation of Enterprise Bankers who will achieve even greater success in the future. OUR COMMUNITY A true passion for and commitment to community service is deeply entrenched in the Enterprise Bank culture. This refl ects our deep sense of purpose as a community bank. We hold ourselves to a responsibility beyond our own success through our core belief that business should be a force for good, serving a social purpose and making a positive contribution to society. Working with non-profi ts, our team members become invested in the communities we serve, strengthening their character and sense of values. They feel rewarded and fulfi lled by the relationships they build, which leads to gaining new customers and strengthening existing customer loyalty, which, in turn, leads to greater success for team members and our Bank. This volunteerism is not only of participation, but also of leadership. Our team members and trusted advisors serve in key positions on more than 100 non-profi t boards, playing a critical role in their success and stability, and we are repeatedly recognized by civic and professional organizations for our leadership and commitment to community. In 2017, Enterprise Bank was recognized by the Boston Business Journal during its “Corporate Citizenship Summit” for our volunteerism and charitable giving. Enterprise Bank ranked #4 for the highest average I love working at Enterprise Bank because I know I am valued. Enterprise appreciates me as an employee and as a person and gives me the employee and as a person and gives me the opportunity to grow and succeed within the bank.” opportunity to grow and succeed within the bank.” – Commercial Lending Assistant Ashwini Dhanaraj – Commercial Lending Assistant hours (55.67 per employee) in community service hours (55.67 per employee) in community service and #52 in a listing of the largest corporate donors and #52 in a listing of the largest corporate donors in Massachusetts. Entering its tenth year, Enterprise Bank’s Entering its tenth year, Enterprise Bank’s Non-Profi t Collaborative provides critically Non-Profi t Collaborative provides critically needed support to non-profi t organizations needed support to non-profi t organizations in our region. These are just a few examples in our region. These are just a few examples of the commitment by our team members of the commitment by our team members to reach out and support the many non-profi t organizations that create non-profi t organizations that create a better quality of life for all of us. : TEN YEARS OF HELPING THOSE WHO HELP OTHERS NON-PROFIT COLLABORATIVESM: TEN YEARS OF HELPING THOSE WHO HELP OTHERS Understanding that strong and successful non-profi t organizations are vital to the well-being of any region, and that Understanding that strong and successful non-profi t organizations are vital to the well-being of any region, and that the needs of these organizations go far beyond charitable giving, Enterprise Bank founded its Non-Profi t CollaborativeSM the needs of these organizations go far beyond charitable giving, Enterprise Bank founded its Non-Profi t CollaborativeSM (NPC) in 2008. The Non-Profi t Collaborative provides critically needed programs, resources, and guidance to non-profi ts (NPC) in 2008. The Non-Profi t Collaborative provides critically needed programs, resources, and guidance to non-profi ts in our region, including a free Educational Seminar Series, with industry experts addressing topics ranging from strategic in our region, including a free Educational Seminar Series, with industry experts addressing topics ranging from strategic planning and governance to cyber security and fundraising. The Non-Profi t Collaborative also offers networking and planning and governance to cyber security and fundraising. The Non-Profi t Collaborative also offers networking and relationship-building opportunities, as well as board and volunteer support, to support these valuable organizations that relationship-building opportunities, as well as board and volunteer support, to support these valuable organizations that have such a profound impact on the quality of our lives. 3 3 “Enterprise Bank enables and encourages employees to give back to the non-profi ts and social causes that make our communities and world a better place. It is a privilege to be part a company that believes that business should be a force for good.” Richard Chavez – Senior Commercial Lending Offi cer, SVP In 2017, for the fourth consecutive year, Enterprise was honored as the leading Small Business Association (SBA) 504 lender among all New Hampshire banks. Enterprise Wealth Management and Enterprise Wealth Services assets under management grew by 17% in 2017 and have grown to become the leading wealth management fi rm in our marketplace, with $842 million in combined assets under management. Strategic growth includes investing in our existing facilities and expanding and optimizing space to OUR GROWTH OUR GROWTH Engaging with our customers and community in Engaging with our customers and community in meaningful and authentic ways across all interactions meaningful and authentic ways across all interactions builds customer trust and loyalty in Enterprise builds customer trust and loyalty in Enterprise Bank, which has contributed to our consistent Bank, which has contributed to our consistent and strong, sustained growth. In 2017, and strong, sustained growth. In 2017, total assets grew to exceed $2.8 billion. total assets grew to exceed $2.8 billion. Assets grew by $291.3 million, or 12%; loans Assets grew by $291.3 million, or 12%; loans outstanding grew by $247.2 million or 12%; outstanding grew by $247.2 million or 12%; and customer deposits, excluding brokered and customer deposits, excluding brokered deposits, grew by $84.3 million, or 4%. deposits, grew by $84.3 million, or 4%. Net income in 2017 was $19.4 million, Net income in 2017 was $19.4 million, an increase of $642,000 over 2016. Our an increase of $642,000 over 2016. Our average compounded growth rates over average compounded growth rates over the last fi fteen years for assets, loans, the last fi fteen years for assets, loans, deposits, and net income have been 10%, deposits, and net income have been 10%, 12%, 9%, and 8%, respectively. As of 12%, 9%, and 8%, respectively. As of December 31, 2017, we recorded our December 31, 2017, we recorded our 113th consecutive profi table quarter, 113th consecutive profi table quarter, reported our 28th consecutive profi table reported our 28th consecutive profi table year, and have both paid and increased year, and have both paid and increased the dividend rate to our shareholders the dividend rate to our shareholders every year for 25 consecutive years. every year for 25 consecutive years. accommodate our growing organization. In August 2017, we opened a new freestanding branch at 15 Indian Rock Road in Windham, NH, offering video-conferencing capabilities, drive-up lanes, and an ATM. This is Enterprise Bank’s 24th branch location and the seventh in Southern New Hampshire. To signifi cantly enhance services and convenience for our customers, we relocated our Salem, NH branch to 55 Main Street, and this year we will complete the relocation of our Leominster, MA branch to 65 Main Street. Both locations are highly visible, with ample on-site parking and drive-up lanes. In 2018, we will also be unveiling our new Mortgage Center on Merrimack Street in downtown Lowell. OUR PROGRESSIVE CAPABILITIES AND TECHNOLOGY The quality of our outstanding team members is matched by the quality of the leading-edge products, services, and technology we offer. Very few banks our size have the breadth of our capabilities and services. Our expertise in commercial and residential mortgage lending, commercial banking services, investment and wealth management, cash management, and insurance services continue to drive our growth. In 2017, we introduced numerous new exciting banking products, including CardValet®—which allows customers to turn their Enterprise debit card on and off, set and remove spending limits, get real-time 4 deeply and truly committed to positively impacting the lives of our fellow team members, our customers, our communities, and our shareholders. We are always looking ahead, and our future has never been so exciting and full of promise. OUR GRATITUDE We would like to express our deepest appreciation and gratitude to each of you—our shareholders, board members, team members, customers, and community members—for the trust and confidence you have placed in us. The success and growth of Enterprise Bank have been due to the relationships we have built with each of you, and we are grateful for your continued support. It is truly a privilege to serve you. Working together, there is nothing that we cannot accomplish. George L. Duncan Founder and Chairman Jack Clancy Chief Executive Officer Richard W. Main President purchase alerts, and restrict transactions based on geography and merchant type—and Same Day ACH, which provides commercial clients with a convenient way to move money electronically in an efficient and cost-effective manner. We also unveiled a new website, redesigned to give our customers a simpler and more efficient banking experience. This year our team will also be rolling out additional enhancements to our cash management capabilities for businesses, creating a more efficient, secure, and convenient customer experience. Through continuous and rigorous advancement over the past 29 years, Enterprise Bank has grown and evolved to offer the products, capabilities, and technology similar to that of the “big” banks, while staying true to our community bank values of five-star personal service, operating with a sense of purpose, and truly caring about our customers. This is at the core of what we’ve created at Enterprise. OUR FUTURE Every decision we make at Enterprise Bank is focused on our long-term success and our goal to be the best and most impactful independent community bank in America. This includes adhering to our mission to serve a higher social purpose and make a positive contribution to society. To achieve this, our priority has been and always will be ongoing investment in our greatest asset: our people. Keeping this at the forefront, decision-making is clear and simple. We will continue to succeed because we know who we are and what we do well. Our team members continually build on our unique strengths, and we continue to reinvest our profits in businesses, people, jobs, and non-profit organizations, creating stability and sustainability in our Bank and in the communities we serve. Adhering always to our founding purpose, mission, and responsibility as a local, independent community bank, we will continue to build on our strong reputation as the leading locally owned and locally managed financial institution in our region. We will continue to be 5 G R O W I N G E V E R Y D AY To serve our growing number of customers seeking a strong, community-focused, independent bank, Enterprise Bank is pleased to offer 24 convenient branch locations throughout the Greater Merrimack Valley and North Central regions of Massachusetts and in Southern New Hampshire. We are continuing to invest in new communities, like our newest branch location at 15 Indian Rock Road in Windham, NH., offering video-conferencing capabilities, drive-up lanes, cash recyclers and community meeting rooms. Seeking to significantly enhance services and convenience for our customers, we have relocated our Salem, NH branch to a prime location on 55 Main Street. In 2018, we will also be relocating our Leominster, MA branch to a strategic location at 65 Main Street. Salem, NH MANCHESTER MANCHESTER AUBURN AUBURN CHESTER CHESTER SANDOWN SANDOWN MERRIMACK MERRIMACK LONDONDERRY LONDONDERRY DERRY DERRY HAMPSTEAD HAMPSTEAD LITCHFIELD LITCHFIELD ATKINSON ATKINSON PLAISTOW PLAISTOW Communities with branch locations are shown in green HOLLIS HOLLIS WINDHAM WINDHAM SALEM SALEM HUDSON HUDSON HAVERHILL HAVERHILL GROVELAND GROVELAND ASHBY ASHBY TOWNSEND TOWNSEND PEPPERELL PEPPERELL NASHUA NASHUA DUNSTABLE DUNSTABLE G G N N Y Y T T H H G G U U O O R R O O B B S S PELHAM PELHAM METHUEN METHUEN GEORGETOWN GEORGETOWN LAWRENCE LAWRENCE DRACUT DRACUT BOXFORD BOXFORD NORTH NORTH ANDOVER ANDOVER LOWELL LOWELL ANDOVER ANDOVER FITCHBURG FITCHBURG LUNENBURG LUNENBURG GROTON GROTON WESTFORD WESTFORD CHELMSFORD CHELMSFORD TEWKSBURY TEWKSBURY SHIRLEY SHIRLEY AYER AYER BILLERICA BILLERICA N N O O T T G G W I L M I N W I L M I N MIDDLETON MIDDLETON NORTH NORTH READING READING HARVARD HARVARD LITTLETON LITTLETON CARLISLE CARLISLE LANCASTER LANCASTER BOXBOROUGH BOXBOROUGH ACTON ACTON BEDFORD BEDFORD N N O O T T G G L I N L I N R R U U B B CONCORD CONCORD LEOMINSTER LEOMINSTER STERLING STERLING BOLTON BOLTON STOW STOW MAYNARD MAYNARD LINCOLN LINCOLN LEXINGTON LEXINGTON Windham, NH 6 KEY GROWTH FIGURES Through December 31, 2017 ANNUAL COMPOUNDED GROWTH RATES AT YEAR END 2017 2017 $ GROWTH 2017 % GROWTH LAST 5 YRS LAST 10 YRS LAST 15 YRS Bank Assets $2.82 Billion $291 Million Loans Outstanding $2.27 Billion $247 Million Customer Deposits $2.29 Billion $84 Million Net Income (1) $19.4 Million $642 Thousand 12% 12% 4% 3% 11% 11% 9% 9% 10% 11% 11% 7% (1) Includes the impact of a $4.8 million tax expense in 2017 from revaluing the Bank’s net deferred tax assets due to the 2017 Federal Tax Cuts and Jobs Act. ANNUALIZED DIVIDEND PER SHARE Through March 2018 10% 12% 9% 8% $0.58 $0.600 $0.550 $0.500 $0.450 $0.400 $0.350 $0.300 $0.250 $0.200 $0.150 $0.100 $0.050 $0.000 $0.025 1992 2005 2018 7 CUSTOMER DEPOSITS $ in billions (Deposits, excluding brokered deposits) NET INCOME $ in millions $2.21 $2.29 $1.58 $1.68 $1.91 $18.8 $19.4 $16.1 $14.7 $20.0 $16.0 $12.0 $13.5 $8.0 $4.0 $0.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 TOTAL LOANS $ in billions $2.27 $2.02 $1.86 $1.67 $1.52 TOTAL ASSETS & TOTAL ASSETS UNDER MANAGEMENT $ in billions n Total Assets n Total Assets Under Management $3.75 $3.33 $2.82 $3.04 $2.76 $2.53 $2.29 $2.59 $1.85 $2.02 $3.75 $3.00 $2.25 $1.50 $0.75 $0.00 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 8 SELECTED FINANCIAL DATA Year Ended December 31 2017 2016 2015 2014 2013 $ 97,522 $ (dollars in thousands, except per share data) $ 78,294 $ 86,792 EARNINGS DATA Net interest income Provision for loan losses Net interest income after provision for loan loss 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 1,430 96,092 14,958 716 76,145 35,621 16,228 19,393 1.68 1.66 19.97 0.54 $ $ $ Basic weighted average shares outstanding Diluted weighted average shares outstanding 11,568,430 11,651,763 YEAR END BALANCE SHEET AND OTHER DATA 2,993 83,799 13,639 802 70,328 27,912 9,161 3,267 75,027 13,139 1,828 65,732 24,262 8,114 71,230 1,395 69,835 12,813 1,619 62,031 22,236 7,585 $ 65,791 3,279 62,512 12,553 1,239 55,824 20,480 6,951 $ 18,751 $ 16,148 $ 14,651 $ 13,529 $ $ 1.71 1.70 18.72 0.52 10,966,333 11,039,511 $ $ 1.56 1.55 17.38 0.50 10,323,016 10,389,934 $ $ 1.45 1.44 16.35 0.48 10,118,762 10,209,243 $ $ 1.37 1.36 15.14 0.46 9,862,678 9,950,609 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 Subordinated debt 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 $ 2,817,564 $ 2,526,269 $ 2,285,531 $ 2,022,228 $ 1,849,925 89,059 844,977 80,996 725,338 71,272 678,377 64,122 674,604 72,711 667,330 $ 3,751,600 $ 3,332,603 $ 3,035,180 $ 2,760,954 $ 2,589,966 $ 2,269,904 $ 2,022,729 $ 1,859,962 $ 1,672,604 $ 1,524,056 32,915 405,206 14,496 2,441,362 89,000 14,847 231,810 0.73% 8.58% 1.45% 8.23% 32.14% 31,342 374,790 17,428 29,008 300,358 19,177 2,268,921 2,018,148 10,671 14,834 214,786 0.78% 9.33% 1.55% 8.50% 30.41% 53,671 14,822 180,327 0.76% 9.29% 1.56% 7.89% 32.05% 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% 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% 9 Working with Enterprise Bank is like having an entire business team on my side.” Michael Cabral - President 10 F A S T, L O C A L D E C I S I O N - M A K I N G CCS Concrete, LLC of Tewksbury specializes in commercial on Enterprise Bank to deliver the high level of personalized and residential construction, servicing all of New England with service and attention to detail that CCS gives its own a professional staff holding more than 20 years of combined customers. With Enterprise, customized solutions and a experience in concrete services. Michael Cabral and his CCS plan for success are just one phone call away. For this plan for success are just one phone call away. For this team need a bank with fast, local decision-making and trusted business seeking to grow and expand, Enterprise Bank business seeking to grow and expand, Enterprise Bank advisors to help them achieve their business goals, from cash paves the way. management to fi nancing for equipment upgrades. They count SANDRA BRINQUINHO Commercial Lending Offi cer, VP “ At Enterprise Bank, we value and care deeply about the businesses we serve. That is why we work hard every day to provide the most responsive, effi cient, and convenient banking services to help them meet their goals and achieve success. 11 F L E X I B L E , I N N O V AT I V E S O L U T I O N S C.W. Keller & Associates of Plaistow, NH is one of the most They have found a similar business model in Enterprise Bank, respected fabrication shops in the U.S., working with merging small-town personalized service with big-bank architects, designers, and contractors to design, fabricate, capabilities. In a construction industry that can be volatile, and deliver custom visions within a defi ned budget. Enterprise provides a calm, steady, and thoughtful approach, C.W. Keller bridges the gap from concept to reality, merging producing fl exible and innovative solutions that have fueled old-world craftsmanship with new-age digital technology. C.W. Keller’s growth and success, from day-to-day cash management to fi nancing infrastructure, machinery, and materials. Like C.W. Keller’s designs, that’s a relationship built to last. DWIGHT FEENEY DWIGHT FEENEY Commercial Lending Offi cer, VP Commercial Lending Offi cer, VP “ Our successful relationships start with “ Our successful relationships start with knowing our customers. By listening and knowing our customers. By listening and understanding their unique needs, we are understanding their unique needs, we are able to create customized commercial able to create customized commercial lending and cash management solutions lending and cash management solutions to help them achieve success. to help them achieve success. 12 ©Anton Grassl/Esto The trusted advisors at Enterprise Bank are able to assess our needs and partner with us for innovative growth.” Shawn Keller - President 13 Enterprise Bank has been critical to our practice’s growth and success.” Helen Raynham, MD, PhD 14 Pictured: Dr. Helen Raynham Dr. Loreen Ali Dr. Christine Hayes C U S T O M I Z E D L E N D I N G S O L U T I O N S Dermcare Physicians & Surgeons provides state-of-the-art but Enterprise Bank believed in her dream and invested in expertise and personalized care in general dermatology, her future. With Enterprise by her side, Dr. Raynham has plastic and reconstructive surgery, oculoplastic procedures, expanded from a single offi ce to four successful locations in Mohs skin cancer treatment, and cosmetic rejuvenation. Chelmsford, Natick, Waltham, and Arlington, taking on two When Dr. Helen Raynham sought fi nancing to open the partners and six additional physicians. From commercial real practice in 2006, other banks didn’t take her seriously— estate loans to fi nancing for construction and equipment, Enterprise Bank’s customized lending solutions have enabled Dermcare to turn their business dream into reality. DAVID BROWN Commercial Lending Offi cer, VP “ As an innovative community bank, Enterprise Bank celebrates entrepreneurial spirit by giving entrepreneurs the expert fi nancial advice and capabilities they need to achieve their goals and fulfi ll their dreams. 15 E X C E P T I O N A L S E R V I C E S A N D C A PA B I L I T I E S Fitchburg State University is a public institution dedicated lending to fraud services and wealth management. When to integrating high-quality professional programs with strong Fitchburg State looked to purchase the downtown Main liberal arts and sciences studies, offering more than 30 Street theater block to create innovative laboratory and undergraduate and 22 master’s degree programs for 7,000 entrepreneurship space, they turned to Enterprise Bank full- and part-time students. As a fast-paced university full- and part-time students. As a fast-paced university to fi nance their vision. For this university, Enterprise to fi nance their vision. For this university, Enterprise continuing to expand, Fitchburg State relies on continuing to expand, Fitchburg State relies on Bank’s flexibility, responsiveness, and extraordinary Bank’s flexibility, responsiveness, and extraordinary Enterprise Bank to meet their diverse needs, Enterprise Bank to meet their diverse needs, customer service have put them at the top of customer service have put them at the top of from cash management and commercial from cash management and commercial the class. TRACY LAFLEUR CHERYL GAUDREAU Branch Relationship Manager Senior Regional Business Advisor, SVP Senior Regional Business Advisor, SVP “ Our goal at Enterprise Bank is to make every customer feel like our most important customer, giving them the personalized service, immediacy of response, and attention to detail they simply can’t fi nd anywhere else. 16 X X Enterprise Bank has a small-town feel and culture, but the services and capabilities to meet our needs.” Dr. Richard S. Lapidus - President Pictured: Yvonnie Malcolm, Comptroller Jay Bry, Vice President of Finance and Administration (standing) Dr. Richard S. Lapidus, President 17 In 40 years of working with banks, Enterprise is as close to a perfect relationship as I’ve had. They are that exceptional.” John Silva - President and CEO Pictured: John Silva, President and CEO Bob Urquhart, CFO 18 C O M M I T M E N T T O T H E C O M M U N I T Y The Greater Lawrence Family Health Center provides a cash management, deposit, and lending services—as well network of quality, comprehensive healthcare services and as be a genuine community partner, supporting and giving healthcare professionals for individuals and families in the back to non-profit organizations. Enterprise Bank has Merrimack Valley, responding to the needs of a culturally exceeded their expectations on all counts, delivering diverse population. As the second-largest community health consistent, exceptional customer service focused on center in Massachusetts, it is important to work with a long-term relationships, not transactions. Now that’s bank that can respond to their needs, including just what the doctor ordered. EDITH JOYCE JESSICA COLCORD Cash Management Director, CTP, SVP Branch Relationship Manager, VP “ Enterprise Bank is deeply committed to the non-profi t organizations that contribute to the health and quality of our communities. It is a privilege to serve as an advocate, advisor, and fi nancial counselor to support their mission and success. 19 E X C E E D I N G E X P E C TAT I O N S Owned and operated by the Torrisi family since 1946, Jackson handled the details and served as an advocate for a smooth Lumber & Millwork provides quality hardware, lumber, and and effi cient transition. The award-winning company has custom millwork products through its fi ve locations, including grown signifi cantly, while remaining committed to its core its Jackson Kitchen Design showroom in North Andover. When values of quality products and exceptional customer service. the company looked to purchase a Woburn lumberyard last It’s important for the Torrisi family to work with a local bank year, one call to Enterprise Bank’s commercial that shares those values, with local decision makers who lending team was all it took. Enterprise know and understand their business. MARLENE HOYT Construction Lending Director, EVP “ We are fully invested in our clients and work “ We are fully invested in our clients and work tirelessly to exceed their expectations as tirelessly to exceed their expectations as we help them grow and expand, giving our we help them grow and expand, giving our one-on-one attention and expert guidance one-on-one attention and expert guidance every step of the way. every step of the way. 20 X X Enterprise is the best of both worlds: a local, community bank, but big enough to handle all our needs.” Jay Torrisi - CEO and Treasurer Pictured: Jay Torrisi, CEO and Treasurer Mark Torrisi, President 21 Enterprise has the capacity of a large bank, but with small bank personal service. That’s a perfect combination.” Renée West - Principal and CFO Pictured: Douglas Stevenson, Principal Renée West, Principal and CFO 22 T R U S T E D R E L AT I O N S H I P S With over 35 years of building experience, Kistler and Knapp their customers, and that’s a quality they expect in their bank in Acton has grown to be one of the most highly regarded as well. With Enterprise, they have found a bank that hits construction fi rms in the Greater Boston area, creating every mark: Enterprise knows and values their customers, exquisite custom homes, renovations, additions, and historical provides exceptional customer service, and goes above and restorations for the most discerning clientele. Their beyond to help their customers succeed. Now that’s a strong business is built on trusted relationships with foundation on which to build. CHERYL SERPE Regional Manager, SVP SEAN MORIARTY Commercial Lending Offi cer, VP “ We are dedicated to providing every client with exceptional banking services customized to meet their individual needs. More importantly, we give them the confi dence and security that Enterprise Bank stands behind their company and their dream every step of the way. 23 O U T S TA N D I N G C U S T O M E R S E R V I C E Nashua Country Club offers a premier golfi ng experience Enterprise Bank’s commercial lending team to help turn and exceptional facilities focused on family-centered activities, their vision into reality. After experiencing Enterprise Bank’s including swimming, tennis, curling, fi tness classes, and creative fi nancing solutions, stellar customer service, local adult and junior instructional and competitive programs. decision-making, and broad capabilities, Nashua Country When the club had a vision to build a new golf Pro Shop Club moved all their banking to Enterprise, which made and Sports Center—including a state-of-the-art, the transition seamless and smooth for the entire staff. four-sheet curling facility—they relied on Now that’s a banking hole in one. JAY DINKEL ALKA SEN Senior Commercial Lending Offi cer, SVP Branch Service Manager “ Our commitment to responsiveness, fl exibility, and attention to detail enables us to stay one step ahead, anticipating and eliminating potential obstacles for our customers. That’s the experience we deliver. XXX24 XX Enterprise Bank has the capabilities we need—and the outstanding customer service to match.” David Scaer, Jr., CCM, CCE – General Manager and COO 25 It’s no surprise Enterprise Bank was named the number one place to work in Massachusetts. The professionalism and great attitude of every single employee is just incredible.” Mark and Ellen Parlee - Owners 26 F O C U S O N T H E C U S T O M E R Named by the Massachusetts Offi ce of Travel & Tourism as It is important to owners Mark and Ellen Parlee to work with a one of the 1,000 Great Places to Visit in Massachusetts, bank that shares their core values: focusing on outstanding Parlee Farms is a “pick your own” 93-acre farm located on the personal service, providing a great customer experience, and banks of the Merrimack River in Tyngsboro, with a farm stand, giving back to the community. They found their perfect match animal barn, country kitchen and bakery, and hay ride wagons. with Enterprise Bank, which makes their family business very happy to be part of the Enterprise family. PATRICIA FOSTER PATRICIA FOSTER Branch Relationship Manager Branch Relationship Manager “ At Enterprise, we measure our success “ At Enterprise, we measure our success by relationships, not transactions, by relationships, not transactions, with a goal to give every customer with a goal to give every customer an outstanding, fi ve-star banking an outstanding, fi ve-star banking experience they can get nowhere else. experience they can get nowhere else. 27 S T R O N G , P E R S O N A L R E L AT I O N S H I P S Built in 1890 and enjoying a rich history, the Pelham Resort community-minded bank that values their customers the Hotel on Hampton Beach, NH has hosted generations of same way. That’s just what they found with Enterprise Bank. families who return year after year. Owners Jackie and Charles They appreciate the strong, personal relationships they have (Chuck) Rage, who purchased the hotel in 1984, consider their built with their trusted advisors at Enterprise, who have customers to be like family. They wanted to fi nd an independent, helped them expand from a single structure to a successful four-building resort. The Rages say that at Enterprise, like the Pelham Resort, “You’re a stranger but once.” PETER RAYNO NH Community Banking and Lending Director, EVP “ As a community bank, we take seriously our role to help businesses grow and increase profi tability, focusing on their long-term success and strengthening their fi nancial foundation as they strengthen the communities in which they operate. 28 Enterprise Bank has a small bank feel but big bank capabilities.” Charles and Jackie Rage – Owners 29 Enterprise Bank is an outstanding blend of community banking with a global perspective.” Ross Haghighat – Chairman and CEO X30 E N H A N C E D C A PA B I L I T I E S As a business executive, serial entrepreneur, and venture commercial lending to foreign exchange and employee capitalist, Ross Haghighat has founded and transformed retirement and benefi ts. Mr. Haghighat is drawn to Enterprise more than a dozen high-tech companies throughout the U.S., Bank’s commitment and ability to grow and adapt to meet Europe, Middle East, and Australia, including Triton Systems, the needs of customers, while staying true to its founding headquartered in Chelmsford, MA. For 20 years, Enterprise culture, core values, and mission as a people-focused Bank has been an integral part of his global fi nancial team, community bank. providing a range of services, from cash management and STEVEN LAROCHELLE Chief Banking Offi cer, EVP “ Enterprise Bank has grown consistently over the past “ Enterprise Bank has grown consistently over the past 29 years, continually enhancing our capabilities to 29 years, continually enhancing our capabilities to ensure we fulfi ll our clients’ evolving needs, while ensure we fulfi ll our clients’ evolving needs, while retaining the high-level service standards and personal relationships that make working with Enterprise Bank truly special. 31 M A K I N G D R E A M S P O S S I B L E Tupelo Music Hall is a multi-genre performing arts space challenge that arose, the Enterprise commercial lending team providing an intimate setting for music events, comedy, and had the solution. With Enterprise behind them, Tupelo Music theatrical shows. When owner Scott Hayward had a dream Hall relocated in 2017 to a renovated space in Derry, expanding in 2016 to relocate the hall from Londonderry to Derry, their capacity from 240 to 700, and are now selling out shows Enterprise Bank stepped up with creative, out-of-the-box in their new larger, acoustically superior space. fi nancing solutions to make that dream possible. For every Now that’s music to their ears. LAURA FRASER Senior Commercial Lending Offi cer, SVP Senior Commercial Lending Offi cer, SVP “ While other banks may offer loans, we “ While other banks may offer loans, we fully invest in our customers and their dreams, offering long-term relationships, dreams, offering long-term relationships, expert guidance, and a “can do” positive expert guidance, and a “can do” positive approach that enable them to achieve their goals. 32 We love Enterprise Bank because they do business the way we do, dedicated to giving their customers an experience that’s positive and memorable.” Scott Hayward – Owner and Director of Entertainment 33 It’s a win/win with Enterprise Insurance Services. The entire team is very knowledgeable and experienced, and the customer service is superb.” Chris A. Scott, PhD – Executive Director XX34 Pictured: Sean Glavin, Director of Finance and Operations Kari Morrin, Director of Student and Adult Services Joia Mercurio, Assistant Executive Director of Curriculum and Technology Dr. Chris A. Scott, Executive Director S P E C I A L I Z E D , E X P E R I E N C E D T E A M Valley Collaborative offers elementary through high school system, she turned to the experts at Enterprise Insurance and adult education, partnering with families, districts, and the Services* to review their insurance coverage. Enterprise and community to provide innovative programming and empower partner HUB International New England, LLC were able to students and adults to discover their individual strengths, signifi cantly enhance the district’s coverage while saving interests, and abilities. As part of Executive Director substantial money. With a single point of contact and timely Chris Scott’s successful reformation of the Valley Collaborative and responsive service, Enterprise Insurance and HUB International really make the grade. * Insurance products are not a Deposit, not FDIC insured, not guaranteed by Enterprise Bank, not Insured by any government agency, and may lose value. JIM MORIARTY Senior Insurance Services Advisor, SVP Enterprise Insurance Services/HUB International New England, LLC “ We understand and appreciate the importance of a comprehensive and cost-effective insurance package in protecting the clients we serve. It is our privilege to support their success by creating specialized insurance programs that maximize their resources and achieve the best return on their investment. X35 X T R U S T E D A D V I S O R S When Dr. John Walker took the fi rst step to open his own technology. When he needed a fi nancial team to guide orthodontic practice, he turned to Enterprise Bank to provide his personal fi nances, he chose Enterprise Wealth the fi nancial guidance and commercial lending solutions to Management.* Dr. Walker has trusted Enterprise Wealth achieve his dreams. With Enterprise by his side, he has built Management to restructure his investment portfolio and successful practices in Lunenburg and Harvard, expanded his signifi cantly grow his assets, allowing him to reinvest in practice to include a partner, and purchased state-of-the-art his business and prepare for a very comfortable retirement. Now that really gives him something to smile about. * Investment products are not a Deposit, not FDIC insured, not guaranteed by Enterprise Bank, not Insured by any government agency, and may lose value. PATRICK CONNERTY Director, Advisor Services, SVP “ Through our wealth management and investment services, Enterprise Bank serves as a trusted advisor for our clients, using our experience and expertise to protect and preserve their assets, giving them peace of mind and a strong fi nancial foundation for the future. 36 I wouldn’t trust my future with anyone but Enterprise Bank and Enterprise Wealth Management.” John Walker, DMD 37 Enterprise Bancorp, Inc. and Enterprise Bank B O A R D O F D I R E C T O R S George L. Duncan Founder and Chairman of the Board Normand E. Deschene Chief Executive Officer, Wellforce James F. Conway, III Vice Chairman and Lead Director of the Board Former President, Chief Executive Officer and Chairman, Courier Corporation Michael A. Spinelli Secretary of the Board Founder, Global Tourism Solutions John T. Grady, Jr. Senior Advisor, Moelis & Company Mary Jane King President, Conway Management Company John A. Koutsos President, Alec’s Shoe Store, Inc. General Counsel Philip S. Nyman Michael T. Putziger Chairman, WinnCompanies Carol L. Reid Former Corporate Controller and Chief Accounting Officer Avid Technology, Inc. Kenneth S. Ansin President, Ansin Consulting Group Joseph C. Lerner Managing Partner, 819 Energy, LLC Gino J. Baroni Owner and Managing Principal Trident Project Advisors and Development Group Shelagh E. Mahoney Owner and Chief Executive Officer Eastern Salt Company, Inc. John P. Clancy, Jr. Chief Executive Officer, Enterprise Bank Richard W. Main President, Enterprise Bank SEC & Regulatory Counsel Hunton & Williams Financial Consultant Raymond L. Anstiss, Jr., CPA Trust & Investment Management Counsel George B. Leahey John R. Clementi Chief Executive Officer Longview Development, LLC Former President, Plastican, Inc. Dr. Carole A. Cowan Former President Middlesex Community College Dr. Jacqueline F. Moloney Chancellor University of Massachusetts Lowell Luis M. Pedroso Co-Founder, President, and Chief Executive Officer, Accutronics, Inc. Honorary Board Members Kathleen M. Bradley Nancy L. Donahue Lucy A. Flynn Eric W. Hanson John P. Harrington Arnold S. Lerner Charles P. Sarantos Nickolas Stavropoulos 38 Enterprise Bank fosters a learning environment with classes, trainings, and shadowing opportunities that have enabled me to develop both personally and professionally, allowing me to advance from an entry level position to a Branch Relationship Manager, AVP. Enterprise Bank saw something in me that I didn’t even see in myself.” me that I didn’t even see in myself.” – Branch Relationship Manager, AVP Nicole Paglieroni – Branch Relationship Manager, AVP 222 Merrimack Street, Lowell, MA 01852 • 978-459-9000 24 CONVENIENT LOCATIONS IN: Massachusetts: Acton • Andover • Billerica • Chelmsford Dracut • Fitchburg • Lawrence • Leominster • Lowell • Methuen Tewksbury • Tyngsborough • Westford New Hampshire: Derry • Hudson • Nashua • Pelham • Salem • Windham 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 Investor Services PO Box 505000, Louisville, KY 40233 888-218-4390 ANNUAL MEETING The 2018 Annual Meeting of shareholders will be held on May 1, 2018 at 3:30 p.m. at the University of Massachusetts Lowell Inn & Conference Center • 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.” THANK YOU TO ALL OF OUR TEAM MEMBERS WHO HELP US TO LIVE OUR PURPOSE – TO HELP CREATE SUCCESSFUL BUSINESSES, JOBS, OPPORTUNITIES, WEALTH, AND VIBRANT, PROSPEROUS COMMUNITIES. EnterpriseBanking.com 002CSN8C7E 

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