Enterprise Bancorp, Inc
Annual Report 2018

Plain-text annual report

302 0 1 8 A N N U A L R E P O R T C E L E B R A T I N G I N B U S I N E S S 3 0 Y E A R S 12“Working together, there is { } nothing we cannot accomplish.” R I C H A R D W. M A I N , P R E S I D E N T t a b l e o f c o n t e n t s Letter from the Chairman, CEO and President . . . . . . . . . . . . 2 In Appreciation: Michael A. Spinelli . . . . . . . . . . . . . 5 Celebration of Excellence. . . . . . . 6 Selected Financial Data . . . . . . . . 9 Our Customers . . . . . . . . . . . . . . . .12 Our Team Members . . . . . . . . . . 20 Our Community . . . . . . . . . . . . . . 26 Our Shareholders . . . . . . . . . . . . . 36 Board of Directors . . . . . . . . . . . . 40 Pictured on our cover, Enterprise Bank’s first branch and corporate headquarters opened on January 3, 1989 at 222 Merrimack Street, Lowell, MA. enterprise bank 1 9 8 9 - 2 0 1 9 celebrating thirty years Thirty years ago, on January 3, 1989, we opened the doors of nineteen communities. At heart we have always been—and will Enterprise Bank. Our Enterprise was designed to be a whole always be—a genuine, independent community bank where we new kind of bank—a community bank that is independent, measure our success by personal relationships, not transactions, locally managed, that operates from a deep sense of purpose and by the positive impact we make in our communities and in that values entrepreneurial and community spirit and the lives of our customers and team members. stimulates the local economy by helping to create new businesses and jobs, as well as providing a great workplace where valued team members grow and prosper. Over the past thirty years, Enterprise Bank has grown from a single office in Lowell to twenty-four branch offices in 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 thirty years. 1 dear friends, Thirty years ago, Enterprise Bank opened its doors, dedicated to the deep sense of purpose that still drives us today: serving as a true, independent community bank. While it is appropriate to pause to reflect on a groundbreaking first thirty years, our focus, as always, is on the future. By continually investing in Enterprise Bank—in our team members, facilities, services, and technology—we continually pave the way for our future. Our vision is to be the best and most impactful independent bank in America. We are strong today because of our high aspirations. We are strong because we adhere always to a mission to serve a higher purpose and make a positive contribution to society, and to the culture we created from day one: a culture of respect, trust, and teamwork in a people-first environment. OU R PEOPLE Enterprise Bank’s top priority has always been and always will be ongoing investment in our greatest asset: our people. The Bank’s extraordinary success over the past three decades is a direct result of the energy, desire, commitment, and talent of our exceptional team members. At Enterprise Bank, we create and embrace a culture that focuses on their growth and happiness, and we continually invest in their future through training and mentoring, seeking to give them opportunities to fulfill their potential, grow as professionals and people, and achieve their dreams. (Read more about our team members on pages 20 - 25.) OU R GROW TH Since inception, Enterprise Bank has achieved strong, high-quality, and consistent growth and success, expanding from a single office in Lowell to twenty-four branches in nineteen communities, and from 28 team members to 538. Today we are approaching $3.0 billion in total assets and $4.0 billion in assets under management. We have been profitable every quarter since 1990. 2 Over the past thirty years, we have made nearly $9 billion in loans to local businesses, professionals, non-profit agencies, individuals, and families, serving as an economic engine to help create countless new businesses, jobs, and homes, and to help fuel the local economy. While we measure our success by relationships, not transactions, the Bank’s financial growth has enabled us to fulfill our founding principles to focus on community: building long-term relationships, helping businesses grow, supporting non-profits, and providing great jobs for great people. This growth also allows us to continually invest in the Bank’s future, in our people, technology, facilities, branches, and new branch locations. Since 1989, Enterprise Bank has successfully operated as a growth company, with strong, high-quality, consistent and organic growth across all business lines. This is a key to our success. We are growing consistently and growing with a purpose. We are proud to share some of Enterprise Bank’s financial highlights for 2018: • Total assets amounted to $2.96 billion, an increase of $146.8 million, or 5%. • Total loans amounted to $2.39 billion, an increase of $117.6 million, or 5%. • Net income for the year was $28.9 million, an increase of $9.5 million, or 49%. • Customer deposits amounted to $2.51 billion, an increase of $214.1 million, or 9%. { Total assets in 2018 increased to 2.96 BILLION } 2.96 hosted a series of seminars focused on educating Enterprise Bank customers and community members on the fundamentals of planning for and navigating retirement. Our experienced financial advisors provided attendees with a foundational understanding of retirement planning topics including sources of income, expenses, asset management, protection planning, and estate planning. OU R TECHNOLOGY AND DIGITAL BANKI NG Enterprise Bank is continuously investing in technology and process improvements to improve the customer experience, making interactions faster, easier, and secure. Through increasing focus on digitalization, we are positioning Enterprise as a digital banking leader, providing advanced technology and delivering leading-edge digital and online banking services through a human customer experience that is highly responsive, warm, trusting, and knowledgeable. These innovative digital banking solutions include remote deposit capture, a major time-saver that enables business customers to securely and conveniently deposit checks from their home or office. In 2019 we are rolling out a more robust business online banking platform that will greatly enhance the user experience. For personal banking customers, we offer Popmoney®, Digital Wallet, CardValet®, and a Personal Mobile Banking app that enables customers to pay bills with the snap of the camera, sign on with their fingerprint or face ID, and manage the security of their debit card—all within their mobile device. We are also strengthening our fraud protection services, enhancing digital and mobile channels, and investing in infrastructure, including doubling the bandwidth in all branches to increase speed and data capabilities. Enterprise Bank is deeply committed to the well-being and success of Our Customers, Our Team Members, Our Community, and Our Shareholders. Read about their relationships with Enterprise Bank, in their own words, beginning on page 12. 3 Grand opening of our new Leominster branch at 65 Main Street OUR CAPAB ILITIES AND SERVICE S Over the past thirty years, we have continually transformed how we operate in response to ever-changing customer banking preferences and technological advancements. As we have evolved and adapted, we have progressively offered products, services, capabilities, and technology comparable to what the “big banks” offer, while differentiating Enterprise through exceptional customer service and a strong sense of purpose. Very few banks our size have the depth and breadth of our capabilities and services, including expertise in commercial and residential mortgage lending, commercial banking services, investment and wealth management, cash management, digital banking, and insurance services. While we continually look to expand branch locations, we have also been focusing heavily on renovating current branches to enhance the customer experience. From pod teller stations and cash recyclers to video conferencing and intelligent ATMs, we are adapting to customers’ desire for a more consultative banking experience and the ability to bank through multiple channels. In 2018 our insurance and wealth management services continued to offer financial security, stability, and peace of mind for businesses, non-profits, and individuals. In the fall, Enterprise Wealth Management in APPRECIATION Michael A. Spinelli TH ANK YOU We extend our deepest appreciation to each of you—our team members, customers, community members, Board of Directors, and shareholders—for the trust and confidence you have placed in us and in this Enterprise that we have created. To all of you, we say “thank you” for sharing in this journey with us and for being part of the Enterprise Bank family. In return, we will continue to fulfill our promise to you to adhere always to our founding purpose, mission, and responsibility as an independent community bank. We are grateful for the opportunity to serve you and all the communities we call home, and we look forward to the next thirty years. Working together, there is nothing that we cannot accomplish. With deep gratitude, George L. Duncan Chairman Jack Clancy Chief Executive Officer Richard W. Main President Unlike many banks our size, we operate our own data center, so we have complete control over processes. This tireless work on the “back end” means that we are making it faster, easier, and safer for customers and team members to access the data they need, when they need it. Enterprise Bank is strongly positioned for the digital future. LOOKING AHEA D All of us at Enterprise Bank have an overwhelming sense of pride and accomplishment in what we have achieved—and infinite confidence, optimism, and inspiration in what the future holds. We are living proof that when people with shared values come together, the possibilities are endless. Today, we are the 14th largest and the sixth youngest of 135 banks headquartered in Massachusetts or New Hampshire. Looking around, we see many banks that have been here much longer than Enterprise, but they are not nearly as large, capable, or well-positioned for the future. As we have for thirty years, Enterprise Bank will continually evolve, change, and transform as the environment and world around us change. But even as we grow and adapt to meet the needs of those we serve, at heart we have always remained—and always will remain—a genuine, independent community bank. We operate by and hold fast to the culture that we created on day one: that each of us believes and feels that we are a valued team member and part of a family; that we are part of a team that is bigger than ourselves; that we have the opportunity to make an invaluable contribution to our Enterprise; that we have a strong feeling of inclusion and belonging; and that it is up to each of us to create a warm, caring, positive, collaborative, and team-oriented mindset by how we “show up” and how we act. This is what our Enterprise is all about, and it will never change. 4 in APPRECIATION Michael A. Spinelli The Board of Directors of Enterprise Bank expresses its sincere appreciation to Michael A. Spinelli for his thirty-one years of dedicated service to Enterprise Bank and Enterprise Bancorp, Inc. Mr. Spinelli is retiring from service as a director. A founding director in 1988, Mr. Spinelli served Enterprise Bank and our community with the utmost integrity and distinction. His various roles included Clerk, Assistant Clerk, and Secretary. Mr. Spinelli has served as the Chairman of the Audit Committee, as well as a member of the Marketing and Business Development, Investment Management/Enterprise Wealth Management, Asset/Liability, and Banking Technology committees. and success of Enterprise Bank over the past thirty-one years, and he has earned the deepest respect and “Mike Spinelli’s inspiring leadership, strategic intellect, and community focus have helped shape the culture { } appreciation of his fellow board members, our management team, and our employees. His service and contributions will have a lasting impact on Enterprise Bank and our communities well into the future.” G E O R G E L . D U N C A N , F O U N D E R A N D C H A I R M A N 5 I am always impressed that Enterprise treats everyone – “I wanted to thank you and everyone at Enterprise for the wonderful event last night. It was uplifting and inspiring. { } each customer, each employee, each community member – with the same degree of dignity, respect and appreciation. We are fortunate indeed to have you in our community.” CLARE C. GUNTHER CHIEF DEVELOPMENT & COMMUNICATIONS OFFICER LOWELL COMMUNITY HEALTH CENTER 6 celebration of excellence HONORING OUR COMMUNITY’S BEST Enterprise Bank hosted the seventh Celebration of Excellence AWARD RECIPIENTS on May 1, 2018 at the Lowell Memorial Auditorium. More than 2,000 guests came together to honor and celebrate the entrepreneurial and community spirit of those dreamers and doers who make such a positive difference in our lives. They were inspired by the stories of the outstanding nominees and eleven award recipients. Victoria Arlen, an ESPN host and Paralympic gold medalist, served as keynote speaker, sharing her inspiring and powerful message on overcoming adversity: “Face It, Embrace It, Defy It, Conquer It.” Entrepreneur of the Year: Ross Haghighat • Triton Systems, and Tom Bolduc and Mick Bolduc • Optiline Enterprises Business of the Year: Westford Veterinary Emergency and Referral Center Educator of the Year: Dr. Sheila Harrity • Montachusett Regional Vocational Technical School Community Service Award: Dr. Patricia Ruze Corporate Philanthropy Award: Quiet Logistics Non-Profit of the Year: Boys & Girls Club of Greater Lowell and YDO - Youth Development Organization, Inc. George L. Duncan Award of Excellence: Kronos, Inc. 7 serving our customers and communities To serve our growing number of customers seeking a strong, community-focused, independent bank, Enterprise Bank is pleased to offer twenty-four convenient branch locations throughout the Greater Merrimack Valley, Nashoba Valley and North Central Regions of Massachusetts and in Southern New Hampshire. MANCHESTER MANCHESTER AUBURN AUBURN CHESTER CHESTER SANDOWN SANDOWN MERRIMACK MERRIMACK LONDONDERRY LONDONDERRY DERRY DERRY HAMPSTEAD HAMPSTEAD LITCHFIELD LITCHFIELD ATKINSON ATKINSON PLAISTOW PLAISTOW 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 CONCORD CONCORD LEOMINSTER LEOMINSTER STERLING STERLING N N O O T T G G L I N L I N R R U U B B Communities with branch locations are shown in green. BOLTON BOLTON STOW STOW MAYNARD MAYNARD LINCOLN LINCOLN LEXINGTON LEXINGTON 24 { 24 B R A N C H LO C AT I O N S } 8 19 { 1 9 CO M M U N I T I E S } KEY GROWTH FIGURES Through December 31, 2018 ANNUAL COMPOUNDED GROWTH RATES AT YEAR END 2018 2018 $ GROWTH 2018 % GROWTH LAST 5 YRS LAST 10 YRS LAST 15 YRS Bank Assets $2.96 Billion $146.8 Million Loans Outstanding $2.39 Billion $117.6 Million Customer Deposits $2.51 Billion $214.1 Million 5% 5% 9% Net Income (1) $28.9 Million $9.5 Million(1) 49%(1) 10% 9% 10% 16% 10% 10% 11% 18% (1) 2017 net income included a $4.8 million tax expense adjustment for the Bank’s net deferred tax assets due to the 2017 Federal Tax Cuts and Jobs Act. ANNUALIZED DIVIDEND PER SHARE Through March 2019 10% 11% 9% 10% $0.64 $0.650 $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 2019 9 CUSTOMER DEPOSITS $ in billions (Deposits, excluding brokered deposits) NET INCOME $ in millions $2.21 $2.29 $2.51 $1.91 $1.68 $28.9 $18.8 $19.4 $14.7 $16.1 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 TOTAL LOANS $ in billions TOTAL ASSETS & TOTAL ASSETS UNDER MANAGEMENT $ in billions n Total Assets n Total Assets Under Management $1.50 $1.67 $2.27 $2.39 $2.02 $1.86 $3.75 $3.85 $3.33 $2.82 $2.96 $2.76 $2.29 $3.04 $2.53 $2.02 $4.50 $3.75 $3.00 $2.25 $1.50 $0.75 $0.00 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 $2.50 $2.00 $1.00 $0.50 $0.00 10 SELECTED FINANCIAL DATA Year Ended December 31 2018 2017 2016 2015 2014 EARNINGS DATA Net interest income $ 108,835 $ (dollars in thousands, except per share data) $ 86,792 $ 97,522 Provision for loan losses Net interest income after provision for loan loss Non-interest income 2,250 106,585 14,940 Net (losses) gains on sales of investment securities (2,950) 80,878 37,697 8,816 $ 28,881 $ $ 2.47 2.46 21.80 0.58 11,679,520 11,750,462 $ 2,964,358 89,232 800,751 $ 3,854,341 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 Customer deposits Total 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 1,430 96,092 14,958 716 76,145 35,621 16,228 19,393 1.68 1.66 19.97 0.54 $ $ $ 2,993 83,799 13,639 802 70,328 27,912 9,161 18,751 1.71 1.70 18.72 0.52 $ $ $ 11,568,430 11,651,763 10,966,333 11,039,511 78,294 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 $ 16,148 $ 14,651 $ $ 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 $ 2,022,228 64,122 674,604 $ 2,760,954 $ 2,817,564 89,059 844,977 $ 3,751,600 $ 2,526,269 $ 2,285,531 80,996 725,338 71,272 678,377 $ 3,332,603 $ 3,035,180 $ 2,387,506 $ 2,269,904 $ 2,022,729 $ 1,859,962 $ 1,672,604 33,849 432,921 19,255 2,507,999 2,564,782 100,492 14,860 255,297 1.00% 12.15% 1.42% 8.61% 23.48% 32,915 405,206 14,496 2,293,872 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 2,209,559 2,268,921 10,671 14,834 214,786 0.78% 9.33% 1.55% 8.50% 30.41% 29,008 300,358 19,177 1,911,378 2,018,148 53,671 14,822 180,327 0.76% 9.29% 1.56% 7.89% 32.05% 27,1 2 1 245,065 10,102 1,683,361 1,768,546 58,900 10,825 166,950 0.76% 9.20% 1.62% 8.26% 33.10% 11 $8.9 BILLION IN LOANS to Enterprise Bank has made over { } and individuals, serving as an economic businesses, professionals, non-profits, engine to help fuel the local economy. 8.9 12 our C U S T O M E R S Enterprise Bank is built on a foundation of trust, committed to We take the time to get to know and understand each customer, providing the highest level of customer experience by exceeding with a goal to make them feel like our most important customer. expectations every day through true customer-focused banking. Enterprise Bank’s five-star personal service includes the Buck Over the past thirty years, we have adapted and evolved our Stops Here principle—taking responsibility for customers’ capabilities and services to meet the growing and changing problems until they are resolved—and our Sundown Rule, needs of customers, without ever sacrificing the outstanding responding to every customer’s request by the end of each day. personal attention, service, and accessibility that is unique to Enterprise. Our commitment to customer service is matched by our commitment to providing outstanding capabilities to meet Our customers tell us that it is important to do business with customers’ needs. We continuously invest in technology and a bank that is rooted in their local communities, with team product innovation to make banking more efficient, more members who truly value and care about them. Because we secure, and easier for our customers, improving their overall value long-term relationships over transactions, we have earned banking experience. the trust of our customers to do what is in the best interest for both them and for the Bank. We measure our success by the success of our customers, and we take genuine pride and satisfaction in helping them dream big and accomplish their goals in their businesses, jobs, homes, and personal wealth, as we help to support our communities and fuel the local economy. We deeply value the relationships that we have with the businesses, non-profits, and individuals that we have the privilege of serving. Picture opposite page: Marie Mayotte, Red Brick Clothing Co.; Fouad Mahfuz and Sy Mahfuz, PRG Rugs; Julia Silverio, Evan Silverio and Dario Silverio, Silverio Insurance. 13 our C U S T O M E R S it’s all about relationships WESTFORD VETERINARY EMERGENCY AND REF ER RAL CENTER { } Founded in 2012, Westford Veterinary Emergency and Referral center—and are continuing to grow. It is important for the team Center is a specialized veterinary hospital providing lifesaving to work with a local bank where they are more than just a emergency intervention, chronic disease management, advanced number, so they choose Enterprise. From commercial loans for surgeries, and cancer treatment. With increasing demand for building expansions and equipment purchases to day-to-day their expertise, co-founders Dr. Chris D’Orazio, DVM, and cash management, Enterprise handles the details so the Sarah Gill-D’Orazio have significantly expanded the center’s services, staff, and locations—including a newly opened 7,800-foot specialty services veterinary team can keep their focus where it should be: taking care of their patients and growing their business. 14 “We simply would not be where we are today without Enterprise. A successful business takes { } a village, and Enterprise is part of our village. They make everything effortless for us.” DR. CHRIS D’OR AZ IO, DVM Front row: Sarah Gill-D’Orazio, Carole Decker-Gill Back row: Dr. Chris D’Orazio, John Gill 15 “We have 100 percent trust in Enterprise Bank and HUB International { } to give us just what we need, just when we need it.” HA RRY HOWE Harry Howe and Philip Latini, Owners 16 our C U S T O M E R S exceptional customer care MORRIS MECHANICAL SALES AND SERVICE , I NC . Morris Mechanical Sales and Service, Inc. sells and services new and cash management. And, to protect their trucks, expensive and reconditioned HVAC, water chillers, and cooling towers— equipment, and their most valuable asset—their people—they both industrial and commercial—providing quality engineering, trust Enterprise Insurance Services.* For more than a dozen years, sales, installation, and service to their neighbors in Central Enterprise and partner HUB International New England, LLC Massachusetts and far beyond. The busy owners of this growing have worked with Morris Mechanical to customize cost-effective company need a bank to make their lives easier, so they rely on Enterprise Bank for their commercial loans coverage to insure specific needs, from overseas shipping to employee health. Now that’s really cool. * Insurance products are not a Deposit, not FDIC insured, not guaranteed by Enterprise Bank, not insured by any government agency, and may lose value. 17 { } our C U S T O M E R S a foundation of trust THE KATZ GROUP AND FINNEG AN DEVELOPMEN T { } Together, Katz Group and Finnegan Development create a they trust Enterprise Bank—and have for nearly thirty years. family-owned, multi-generational partnership delivering Enterprise knows their business inside-out and can anticipate excellence in residential and commercial development in their needs, making the process simple, seamless, and Massachusetts and New Hampshire. Katz and Finnegan are effortless. Like Katz and Finnegan, Enterprise is built on solid, nimble and innovative, large enough to handle major projects, long-term relationships: knowing its customers, earning their but small enough to provide a hands-on management approach. For the financing of their projects, loyalty, and delivering on promises. Now that’s a strong foundation on which to build. 18 “With Enterprise, it’s all about the relationship. We know them, { } ERIC KATZ AND JAY FINNEGAN we trust them, and they have always been there for us.” Eric Katz, President, Katz Group Jay Finnegan, Partner, Finnegan Development 19 The early Enterprise Bank team, shown here in April 1989, consisted { } of just 28 TEAM MEMBERS. has grown to more than 530. Today, our Enterprise family 20 28 our T E A M M E M B E R S Our team members have made Enterprise what it is today, and have a lot of fun, celebrating each other and the joy of sharing they will always be the Bank’s greatest asset. At Enterprise Bank, this Enterprise together. we are truly a family, made up of outstanding people of the highest character, integrity, and loyalty, who embrace our culture and genuinely care about each other and our bank, customers, community, and shareholders. We are all aligned; we believe in our mission and we trust and believe in each other, united by our strength and respect for one another and the Bank’s core values of integrity, community, excellence, teamwork and professionalism. In recognition of this focus on our team members, Enterprise Bank has been named to The Boston Globe’s “Top Places to Work in Massachusetts” for the seventh consecutive year, ranking in 2018 among the top three among large companies. The survey honors employers who care for their most valuable resource: the people who work for them, based on employee opinions about their company. Of the many awards and Enterprise is built on a foundation of diversity and inclusion. recognitions that we have earned, this is the most meaningful, We cultivate this in our leadership, hiring, training, and team because it comes directly from our team members. member development, committed to creating an environment where our team members feel a strong sense of belonging and are valued for their diverse perspectives. Enterprise Bank’s team members know they are appreciated and cherished as people, not just employees. They work hard every day, taking At Enterprise Bank, we recognize that we are all part of a team that is bigger than ourselves. Operating as a family, we focus on serving each other and our customers with respect, kindness, generosity, and genuine caring. on new responsibilities, striving for excellence, and continually That is what makes us so special and what differentiates us from making Enterprise a better place to work and bank. We also every other bank. 21 our TEAM MEMBERS our greatest asset DI ANE J. SILVA Chief Mortgage and Consumer Lending Officer When Diane Silva began working at Enterprise Bank on January 3, 1989, she knew she had found her permanent home. She believed deeply in Founder George Duncan’s vision for a new kind of community bank, focused on developing long-term relationships with customers and co-workers, giving back to the community, and being responsible to shareholders. One of the first team members to join this exciting new Enterprise, she was hired to oversee mortgage lending and has risen through the ranks to become an Executive Vice President, encouraged and supported every step of the way by her Enterprise family. Today, celebrating thirty years—and her role as the driving force behind more than $2 billion in residential, home equity, and consumer loans—Diane Silva is thrilled to be part of the Enterprise Bank family. 22 We treat each other like family and want to make a “The culture is what makes Enterprise Bank so special. { } genuine, meaningful difference in each other’s lives and in the lives of our customers and community.” DIAN E J. SILVA SUSAN CALLERY ROSSIN I Senior Financial Advisor/SVP Enterprise Wealth Management While studying finance at University of Massachusetts Lowell in 1989, Sue Rossini took a job as a part-time teller at Enterprise Bank—a small, just-opened community bank in downtown Lowell. Thirty years later, both Sue and Enterprise have grown far beyond her expectations. Shortly after college graduation, Sue transitioned to the accounting and finance department. With support from the Enterprise education reimbursement program, she earned her master’s degree in Accounting and her Certified Financial Planner™ designation, opening doors to a fulfilling and rewarding career with Enterprise Wealth Management. Today, as a highly respected and trusted financial advisor, Sue is dedicated to building meaningful relationships with her clients and helping them to achieve their goals, just as Enterprise Bank has enabled her to achieve her own. { } “Enterprise Bank is a place of unlimited opportunity { } are valued and supported in pursuing their goals.” and learning and growth, where employees SUE ROSSI NI 23 SOMATH RY Commercial Loan Processing Supervisor, Bank Officer Somath Ry’s life changed forever the day she accepted a part-time job at Enterprise Bank. A quiet high school senior, her supervisors at Enterprise saw a potential in her that she didn’t see in herself. Under their mentoring, a new world of opportunity opened to Somath. She continually advanced in her job, accepting a full-time job as a loan processor after graduation, taking professional development courses, and gaining in confidence every day. Today, twenty years later, she is a loan processing supervisor, guiding and teaching others. At eighteen, she couldn’t have imagined the wonderful future ahead of her at Enterprise; today, she couldn’t imagine working anywhere else. { } not just an employee. We are all here for each other. This is a place of trust, where people care about me and support me and treat me as a whole person, “Enterprise Bank is my second family. I love it here and never want to leave.” SOMAT H RY 24 The Enterprise Bank family has grown from a Each year, our Enterprise Bankers gather for our handful of trailblazers to 538 TEAM MEMBERS. { } Celebration of Success event—a special opportunity to come together and celebrate our achievements. The theme of this year’s event, pictured here, was “Celebrating the Magic of Disney.” { } 538 25 dedicated 30,401 HOURS In 2018, our Enterprise Bankers OF SERVICE to local non-profit { } 30,401 and charitable organizations. 26 our C O M M U N I T Y Since our inception, we have believed that a business should to support these valuable organizations that have such a be a force for good, serving a social purpose and operating as profound impact on the quality of the communities we serve. a good philanthropic partner and neighbor. A true passion for Our Celebration of Excellence program celebrates and honors and commitment to community service is deeply entrenched in the business owners, entrepreneurs, non-profit organizations, the Enterprise Bank culture and reflects a core principle of our educators, and leaders who contribute to the economy and purpose as a community bank. our quality of life in profound ways. In addition to continuing financial support of non-profit Our commitment to community is consistently recognized organizations, Enterprise team members share their time at the Boston Business Journal Corporate Citizenship Summit. and expertise with non-profits and social causes. Team In September, Enterprise Bank was honored at the summit as members and trusted advisors serve in key positions on #3 for the highest average hours (49.32 per employee) in more than 100 non-profit boards, playing a critical role in community service. The Bank was also recognized as #56 in their success and stability. a listing of the largest corporate donors in Massachusetts. Entering its eleventh year, Enterprise Bank’s Non-Profit CollaborativeSM provides critically needed support and resources to non-profit organizations in the region, including a free Educational Seminar Series, networking and relationship- building opportunities, as well as board and volunteer support, This special recognition is a tribute to our team members who embrace Enterprise Bank’s corporate values and make such a difference in the lives of so many. We are extremely grateful for all they do each and every day to improve lives in the communities where we live and work. 27 our C O M M U N I T Y helping those who help others BOYS & GIRLS CLUB OF GREATER NASHUA The Boys & Girls Club of Greater Nashua is dedicated to enabling caring and trust, it is important for the Club to work with a all young people, especially those most in need, to reach their bank that shares those values and supports the community. potential as productive, caring, responsible citizens. The Club They trust Enterprise to provide banking services that help provides the tools and programs to help members succeed the Club run more efficiently, and value Enterprise Bank’s academically, overcome challenges, and understand their value generous support of non-profit organizations. For the Boys & Girls Club, Enterprise Bank is a true community partner. because of the people. We’ve built “We choose and value Enterprise Bank { } strong, long-term relationships with NORMAN BOUTHILETTE, CEO people we can trust.” in the world. For a community service organization built on a culture of 28 Norman Bouthilette, CEO, Boys & Girls Club of Greater Nashua Mary Jane King, Club Board President, Enterprise Bank Director 29 30 our C O M M U N I T Y investing in community COMMUNITY TEAMWORK, INC. Community Teamwork is a catalyst for social change, using commitment to a positive workplace. They have found that in innovative approaches to strengthen communities and help Enterprise Bank. For the past thirty years, Enterprise has been a people improve their lives and reach a place of fulfillment resource for Community Teamwork, from development loans and and economic stability. Community Teamwork delivers vital retirement plans to Wealth Management services to support the services and collaborates with key stakeholders to create organization’s long-term success.* Enterprise is also a strong housing, education, and economic opportunities. It is important for Community Teamwork to partner with organizations that reflect their social values, diversity, and community non-profit organizations “Enterprise Bank supports and helps { } to succeed. They believe in us and invest in us and are a true community partner.” KAREN FRED ERICK, CEO community partner through its philanthropic support. When it comes to supporting non-profit organizations in our community, Enterprise Bank is an important part of the team. * Investment products are not a Deposit, not FDIC insured, not guaranteed by Enterprise Bank, not insured by any government agency, and may lose value. 31 our C O M M U N I T Y a true community partner MONTACHUSETT OPPORTUNITY COUN CIL, IN C. Montachusett Opportunity Council, Inc. (MOC) empowers to the community. For more than fifteen years, MOC has relied families and communities across the North Central region to on the expertise of Enterprise Bank, from day-to-day cash achieve economic stability. They work to eliminate barriers and management to commercial lending for large facility expansions. create opportunities, providing child care, education, workforce The trusted advisors at Enterprise have served as board members development, nutrition, health, and community and housing and volunteers, dedicating countless hours of their own “Enterprise Bank is truly invested in our organization and invested in our { } communities. They set the standard for KEVIN REED, EXECUTIVE DIRECTOR commitment to community.” time and expertise to support the organization and the communities it serves. For MOC, that is the definition of commitment to community. support. As a non-profit dedicated to enriching communities, it is important for MOC to work with a local bank dedicated to giving back 32 33 our C O M M U N I T Y stepping up to serve their community E NTE RPRISE BANKERS RE SPOND WHEN DISASTER STRI KES { } When a devastating natural gas explosion affected thousands Jonathan Machado immediately volunteered their services, of people in the Massachusetts communities of Lawrence, volunteering for several days at the senior center and high Andover and North Andover last year, Enterprise Bankers school, helping to coordinate and process donations and intake were among the first to step up to help. Lawrence Branch claims for displaced families seeking assistance. Over the next Relationship Manager Jessica Colcord and Commercial Lender two months, during work hours and their personal time, they “We love Lawrence and are a part of this great community. We felt a responsibility as individuals { } and as representatives of Enterprise Bank to JONATHAN MACHADO, LAWRENCE BRANCH step up and do everything we could to help.” 34 and their Lawrence branch team members served as liaisons between non-profits and displaced residents in need of assistance, as well as providing cash management support in processing and distributing claims checks from the $10 million pool provided by Columbia Gas. “The sense of spirit and togetherness and community in Lawrence was just incredible, { } JESSICA COLCORD, LAWREN CE BRA NCH and we were blessed to be a part of it.” “I wanted to show these people who had been through so much that someone cares about them. I’m very lucky { } that I work for Enterprise Bank, because it allows me to give back and help others in the community.” THERE SE LEO NE, A NDOVER BR ANCH In Andover, Branch Relationship Manager Therese Leone, who also serves as Chair of the Andover Chamber of Commerce, wanted to do something special for displaced families, as well as the tireless first responders and gas company workers, many of whom were from out of town and would be unable to return home for the Thanksgiving holiday. She collected donations of food and money and rallied volunteers to host Thanksgiving dinner at the Andover Senior Center, as well as deliver meals to housebound residents. In response to the disaster, Enterprise Bank established the Merrimack Valley Gas Explosion Relief Fund, matching more than $20,000 in donations, and distributed those funds to the American Red Cross and Salvation Army. Enterprise was also a lead bank in funding the Merrimack Valley Small Business Emergency Loan Fund, in partnership with the Lawrence Partnership and Mill Cities Community Investments, helping businesses to stay afloat as they dealt with the aftermath of the disaster. Community is a core value of Enterprise Bank, and we are deeply committed to supporting those in need in the communities we serve. Caption Jonathan Machado, Jessica Colcord and Therese Leone 35 George L. Duncan Founder and Chairman, Enterprise Bank 117 CONSECUTIVE QUARTERS, Enterprise Bank has been profitable for { } the dividend rate to our shareholders and we have both paid and increased every year for 27 consecutive years. 117 36 our S H A R E H O L D E R S Local ownership has been, and remains, a critical part of the Shareholders’ investment in Enterprise Bank enables us to success of Enterprise Bank. Many of our shareholders have fulfill and further that mission, and we take seriously our been with the Bank since inception, and we are energized fiduciary responsibility to operate in their best interest. by new investors who place their faith and confidence in We are both humbled and inspired by the trust they place in Enterprise Bank. As a truly independent bank, we are locally Enterprise Bank as shareholders and—for so many of them— owned and locally managed—and always will be. as customers. Their support has always been, and will We work every day to earn our shareholders’ trust to lead Enterprise profitably into the future as an independent, innovative, purpose-driven community bank, holding true to our integrity and core values, and commitment to meaningful relationships with our team members, customers, and communities. continue to be, a key component of our long-term success and independence as a genuine community bank. 37 our SHAREHOLDERS believing in the vision NANCY L. DONA HUE When George Duncan announced plans to open Enterprise Bank, Nancy Donahue immediately came on board as an investor and a board director, not because she thought the bank would be a tremendous financial success, but because she knew the bank would be socially responsible and vested in the community. Nancy was eager to support a bank with the vision and priorities laid out by Enterprise: operating with a sense of purpose, with honesty, integrity, and character, and putting the well-being of employees and the community first. From day one, Nancy recognized that the value of Enterprise Bank is in the quality and character of its leaders and employees. Today, she sees other banks looking to Enterprise to lead the way in doing what’s right for the greater good. 38 “I am invested in Enterprise Bank because of their investment in the community and their employees. { } They are champions of social responsibility and set the standard for how all banks should operate.” NAN CY L . DONAH UE ROBERT AND HILD E G ILMAN As the Lowell assistant city manager in the 1970s and ‘80s, Robert Gilman highly respected George Duncan as a successful and proven financial leader. More importantly, he respected him as a man of great character who earned the loyalty and dedication of the people around him. Bob leaped at the opportunity to be an initial investor in Enterprise Bank, wanting to support an independent community bank with such a strong corporate and people-centered culture. Soon after, he joined the bank as a team member, spending twenty years as a commercial lender and later Executive Vice President for Human Resources and Facilities, before retiring in 2010. As a customer, team member, and shareholder, Bob Gilman has always been—and always will be—proud to be part of the Enterprise family. { } “We are very proud to have invested in Enterprise Bank what they stand for. From day one they have been true because of the quality and character of the people and { } to their vision as a strong, local community bank that is good and responsible to their customers, their employees, and their shareholders.” ROBERT AND HIL DE GILMAN 39 Enterprise Bancorp, Inc. and Enterprise Bank board of directors George L. Duncan Founder and Chairman of the Board James F. Conway III Vice Chairman and Lead Director of the Board Former President, Chief Executive Officer and Chairman, Courier Corporation John A. Koutsos Secretary of the Board President, Alec’s Shoe Store, Inc. Luis M. Pedroso Assistant Secretary of the Board Co-Founder, President, and Chief Executive Officer, Accutronics, Inc. Kenneth S. Ansin President, Ansin Consulting Group Dr. Carole A. Cowan Former President Middlesex Community College Normand E. Deschene Former Chief Executive Officer, Wellforce John T. Grady, Jr. Senior Advisor, Moelis & Company Mary Jane King President, Conway Management Company Joseph C. Lerner Managing Partner, 819 Energy, LLC Shelagh E. Mahoney Owner and Chief Executive Officer Eastern Salt Company, Inc. Gino J. Baroni Owner and Managing Principal Trident Project Advisors and Development Group Richard W. Main President, Enterprise Bank John P. Clancy, Jr. Chief Executive Officer, Enterprise Bank John R. Clementi Chief Executive Officer Longview Development, LLC Former President, Plastican, Inc. Dr. Jacqueline F. Moloney Chancellor University of Massachusetts Lowell Michael T. Putziger Chairman, WinnCompanies Carol L. Reid Former Corporate Controller and Chief Accounting Officer Avid Technology, Inc. Michael A. Spinelli Founder, Global Tourism Solutions General Counsel Philip S. Nyman, Esquire SEC & Regulatory Counsel Hunton Andrews Kurth LLP Financial Consultant Raymond L. Anstiss, Jr., CPA Advisor to the Enterprise Wealth Management Committee Marcia S. Wagner, Esquire Honorary Board Members Kathleen M. Bradley Nancy L. Donahue Lucy A. Flynn Eric W. Hanson John P. Harrington Arnold S. Lerner Nickolas Stavropoulos 40 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 our transfer agent: Computershare Investor Services PO Box 505000, Louisville, KY 40233 888-218-4390 ANNUAL MEETING The 2019 Annual Meeting of shareholders will be held on May 7, 2019 at 4:00 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.” EnterpriseBanking.com 002CSN9B46 

Continue reading text version or see original annual report in PDF format above