Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 24, 2023 (October 24, 2023)

____________________

ENTERPRISE BANCORP, INC.

(exact name of registrant as specified in charter)


Massachusetts	001-33912	04-3308902
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

222 Merrimack Street

Lowell,

Massachusetts

01852

(address of principal executive offices)

(Zip Code)

(978)

459-9000

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	EBTC	NASDAQ Stock Market

Item 2.02 Results of Operations and Financial Condition

On October 24, 2023, Enterprise Bancorp, Inc. issued a press release concerning its results of operations and financial condition at or for the three and nine months ended on September 30, 2023. A copy of this press release is included as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 2.02 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(d) The following exhibit is included with this report:

Exhibit 99.1: Earnings press release dated October 24, 2023

Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

[Remainder of Page Intentionally Blank]

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	ENTERPRISE BANCORP, INC.


October 24, 2023		By:	/s/ Joseph R. Lussier
		Joseph R. Lussier
		Executive Vice President, Treasurer
		and Chief Financial Officer

Exhibit 99.1

Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578

Enterprise Bancorp, Inc. Announces Third Quarter Financial Results

LOWELL, MA, October 24, 2023 (GLOBE NEWSWIRE) - Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended September 30, 2023. Net income amounted to $9.7 million, or $0.79 per diluted common share, for the three months ended September 30, 2023, compared to $12.0 million, or $0.98, for the three months ended September 30, 2022 and $9.7 million, or $0.79, for the three months ended June 30, 2023.

Selected financial results at or for the three months ended September 30, 2023, were as follows:

•The return on average assets and average equity were 0.85% and 12.53%, respectively.

•Tax-equivalent net interest margin (non-GAAP) was 3.46%.

•Total loans increased 2% compared to June 30, 2023, and 9% compared to September 30, 2022.

•Total deposits decreased 0.4% compared to June 30, 2023, and 2% compared to September 30, 2022.

•Overnight and short-term investments (interest-earning deposits with banks) amounted to $180.1 million.

•There were no brokered deposits and only $4.3 million in borrowed funds.

Chief Executive Officer Jack Clancy commented, "We are pleased with our third quarter results. Liquidity remained favorable and loan growth has been solid and consistent. While increasing funding costs remain a challenge, we continue to experience strong growth opportunities in our markets for our commercial lending, cash management and wealth management services."

Executive Chairman & Founder George Duncan added, "I am pleased to highlight that on October 17th, the Company's Board of Directors declared a quarterly dividend of $0.23 per share, an increase of 12% over the prior year period. On September 7th, we were once again recognized at the Boston Business Journal's Corporate Citizenship Summit for our significant contributions in employee volunteerism and corporate philanthropy. In particular, I am very proud that we ranked 2nd in the state of Massachusetts for the highest average volunteer hours per employee."

Net Interest Income

Net interest income for the three months ended September 30, 2023, amounted to $38.5 million, a decrease of $1.3 million, or 3%, compared to the three months ended September 30, 2022. The decrease was due largely to an increase in deposit interest expense of $11.4 million which resulted from continued market interest rate increases and a change in deposit mix, partially offset by increases in loan interest income of $9.2 million and other interest-earning asset income of $1.4 million.

Net Interest Margin

The decrease in net interest margin over the respective periods was due primarily to an increase in funding costs that exceeded the increase in loan yields. During the periods, the cost of deposits increased from higher market and competitor interest rates and from a change in mix as deposits migrated from lower yielding checking and savings products into higher yielding money market and certificate of deposit products.

Three months ended – September 30, 2023, compared to June 30, 2023

Tax-equivalent net interest margin ("net interest margin") was 3.46% for the three months ended September 30, 2023, compared to 3.55% for the three months ended June 30, 2023.

Net interest margin compared to the prior quarter was impacted by the following factors:

•Average interest-earning deposits with banks increased $104.5 million, or 68%, and the yield increased 40

basis points.

•Average debt securities decreased $98.1 million, or 11%, and the tax-equivalent yield decreased 9 basis points.

•Average loan balances increased $104.2 million, or 3%, and the tax-equivalent yield increased 11 basis points.

•Average total deposits increased $94.1 million, or 2%, and the yield increased 27 basis points.

Three months ended – September 30, 2023, compared to September 30, 2022

Net interest margin was 3.46% for the three months ended September 30, 2023, compared to 3.61% for the three months ended September 30, 2022.

Net interest margin compared to the prior year quarter was impacted by the following factors:

•Average interest-earning deposits with banks decreased $114.8 million, or 31%, while the yield increased 308 basis points.

•Average debt securities decreased $136.8 million, or 14%, while the tax-equivalent yield increased 10 basis points.

•Average loan balances increased $286.9 million, or 9%, and the tax-equivalent yield increased 69 basis points.

•Average total deposits decreased $8.6 million, while the yield increased 110 basis points.

Provision for Credit Losses

The provision for credit losses for the three months ended September 30, 2023, amounted to $1.8 million, compared to $1.0 million for the three months ended September 30, 2022. The provision expense for the third quarter of 2023 resulted primarily from an increase in reserves for individually evaluated loans and, to a lesser extent, growth in the Company's loan portfolio and off-balance sheet commitments, partially offset by the impact of a reduction in general reserve loss factors in our allowance for credit loss ("ACL") model related primarily to an improvement in the economic forecast relative to the prior quarter. The ACL for loans to total loans ratio was 1.70% at September 30, 2023 compared to 1.65% at September 30, 2022.

Non-Interest Income

Non-interest income for the three months ended September 30, 2023, amounted to $4.5 million, a decrease of $39 thousand, or 1%, compared to the three months ended September 30, 2022. There were no individually significant changes in non-interest income during the period when compared to the prior year period.

Non-Interest Expense

Non-interest expense for the three months ended September 30, 2023, amounted to $28.3 million, an increase of $775 thousand, or 3%, compared to the three months ended September 30, 2022. The increase was due primarily to increases in salary and employee benefits of $244 thousand, occupancy and equipment expenses of $230 thousand and deposit insurance premiums of $263 thousand.

Income Taxes

The effective tax rate was 25.0% and 24.1% for the three months ended September 30, 2023 and 2022, respectively. The difference resulted primarily from an increase in state taxes including a transfer of funds from the Bank's investment subsidiary corporations.

Balance Sheet

Total assets amounted to $4.48 billion at September 30, 2023, compared to $4.44 billion at December 31, 2022, an increase of $44.0 million, or 1%.

Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to $180.1 million at September 30, 2023, compared to $230.7 million at December 31, 2022. The decrease of $50.6

million, or 22%, was related primarily to funding loan growth.

Total investment securities at fair value amounted to $678.9 million at September 30, 2023, compared to $820.4 million at December 31, 2022. The decrease of $141.4 million, or 17%, was attributable principally to sales of debt securities of $84.8 million and principal pay-downs, calls and maturities of $46.3 million. At September 30, 2023, unrealized losses on debt securities amounted to $133.2 million and Management determined that no ACL for available-for-sale securities was necessary.

Total loans amounted to $3.40 billion at September 30, 2023, compared to $3.18 billion at December 31, 2022. The increase of $223.5 million, or 7%, was primarily in commercial real estate of $111.0 million, or 6%, and commercial construction of $77.1 million, or 18%.

Total deposits amounted to $4.06 billion at September 30, 2023, compared to $4.04 billion at December 31, 2022, an increase of $24.6 million, or 1%. The Company has experienced a shift in deposit mix at September 30, 2023, compared to December 31, 2022, resulting from customers moving funds out of lower yielding checking and savings products (which together, have decreased 9%) into higher yielding money market and certificate of deposit products (which together, have increased 15%).

Shareholders' Equity

Total shareholders' equity amounted to $299.7 million at September 30, 2023, compared to $282.3 million at December 31, 2022. The increase of $17.4 million, or 6%, was due primarily to an increase in retained earnings, partially offset by an increase in the accumulated other comprehensive loss.

Credit Quality

Selected credit quality metrics at September 30, 2023, compared to December 31, 2022, are as follows:

•The ACL for loans amounted to $57.9 million, or 1.70% of total loans, compared to $52.6 million, or 1.66% of total loans.

•The reserve for unfunded commitments (included in other liabilities) amounted to $5.7 million compared to $4.3 million.

•Non-performing loans amounted to $11.7 million, or 0.34% of total loans, compared to $6.1 million, or 0.19% of total loans. The increase resulted primarily from one commercial relationship which also accounted for the increase in reserves for individually evaluated loans noted above.

Wealth Management

Wealth assets are not carried as assets on the Company's consolidated balance sheets.

Wealth assets under management amounted to $984.6 million at September 30, 2023. The increase of $93.2 million, or 10%, compared to December 31, 2022 resulted primarily from an increase in market values, and to a lesser extent, net asset growth attracted through new and expanded client relationships.

Wealth assets under administration amounted to $211.0 million at September 30, 2023 an increase of $12.5 million, or 6%, compared to December 31, 2022.

Supplemental Information

All balances and ratios presented in this section are at September 30, 2023 unless otherwise indicated.

Liquidity & Funding Capacity

•Overnight and short-term investments amounted to $180.1 million.

•FHLB and Federal Reserve Bank of Boston secured borrowing capacity amounted to $1.2 billion.

•The Company has several brokered deposit relationships (unsecured borrowings) which management estimated could provide an additional $800.0 million in funding capacity.

Deposit Information

•Uninsured deposits amounted to 35% of total deposits.

•Deposit balances that utilize third party enhanced Federal Deposit Insurance Corporation ("FDIC") insured products amounted to $815.0 million.

•Additional capacity to utilize these enhanced FDIC insured products exceeds the Company's total deposits balance.

About Enterprise Bancorp, Inc.

Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 136 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company's headquarters and Enterprise Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company's primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.

Forward-Looking Statements

This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "will," "should," "could," "plan," and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from recent bank failures and any continuation of the recent uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; changes in market interest rates; the persistence of the current inflationary environment in our market areas and the United States; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; the effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or security breaches; severe weather, natural disasters, acts of war or terrorism or other external events; regulatory considerations; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the receipt of required regulatory approvals; changes in tax laws; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

ENTERPRISE BANCORP, INC.

Consolidated Balance Sheets

(unaudited)


(Dollars in thousands, except per share data)	September 30, 2023		December 31, 2022
Assets
Cash and cash equivalents:
Cash and due from banks	$	45,345	$	36,901
Interest-earning deposits with banks	180,076		230,688

Total cash and cash equivalents	225,421		267,589
Investments:
Debt securities at fair value (amortized cost of $806,077 and $940,227, respectively)	672,894		816,102
Equity securities at fair value	6,038		4,269
Total investment securities at fair value	678,932		820,371
Federal Home Loan Bank stock	2,403		2,343

Loans:
Total loans	3,404,014		3,180,518
Allowance for credit losses	(57,905)		(52,640)
Net loans	3,346,109		3,127,878
Premises and equipment, net	43,391		44,228
Lease right-of-use asset	24,979		24,923
Accrued interest receivable	18,572		17,117
Deferred income taxes, net	55,080		51,981
Bank-owned life insurance	65,106		64,156
Prepaid income taxes	2,548		683
Prepaid expenses and other assets	14,177		11,408
Goodwill	5,656		5,656
Total assets	$	4,482,374	$	4,438,333
Liabilities and Shareholders' Equity
Liabilities

Deposits	$	4,060,403	$	4,035,806


Borrowed funds	4,290		3,216
Subordinated debt	59,419		59,182
Lease liability	24,589		24,415
Accrued expenses and other liabilities	31,288		31,442

Accrued interest payable	2,686		2,005
Total liabilities	4,182,675		4,156,066
Commitments and Contingencies
Shareholders' Equity
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued	—		—
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,256,964 and 12,133,516 shares issued and outstanding, respectively	123		121
Additional paid-in capital	106,451		103,793
Retained earnings	296,291		274,560
Accumulated other comprehensive loss	(103,166)		(96,207)
Total shareholders' equity	299,699		282,267
Total liabilities and shareholders' equity	$	4,482,374	$	4,438,333

ENTERPRISE BANCORP, INC.

Consolidated Statements of Income

(unaudited)


	Three months ended				Nine months ended
	September 30,				September 30,
(Dollars in thousands, except per share data)	2023		2022		2023		2022
Interest and dividend income:
Loans and loans held for sale	$	44,501	$	35,306	$	125,855	$	98,149
Investment securities	4,316		4,728		14,356		14,097
Other interest-earning assets	3,468		2,068		7,593		2,642
Total interest and dividend income	52,285		42,102		147,804		114,888
Interest expense:
Deposits	12,889		1,460		28,568		2,731
Borrowed funds	28		13		70		39
Subordinated debt	866		850		2,600		2,485
Total interest expense	13,783		2,323		31,238		5,255
Net interest income	38,502		39,779		116,566		109,633
Provision for credit losses	1,752		1,000		6,756		3,939
Net interest income after provision for credit losses	36,750		38,779		109,810		105,694
Non-interest income:
Wealth management fees	1,673		1,626		4,933		4,965
Deposit and interchange fees	1,987		2,045		6,330		5,847
Income on bank-owned life insurance, net	327		303		950		893
Net (losses) gains on sales of debt securities	—		—		(2,419)		1,062

Net gains on sales of loans	14		8		34		30



Losses on equity securities	(181)		(193)		(8)		(688)
Other income	666		736		2,242		2,143
Total non-interest income	4,486		4,525		12,062		14,252
Non-interest expense:
Salaries and employee benefits	19,159		18,915		53,815		53,450
Occupancy and equipment expenses	2,433		2,203		7,439		6,982
Technology and telecommunications expenses	2,626		2,599		7,937		8,154
Advertising and public relations expenses	592		510		2,077		1,737
Audit, legal and other professional fees	735		693		2,157		2,078
Deposit insurance premiums	654		391		1,944		1,313
Supplies and postage expenses	251		219		753		663

Other operating expenses	1,862		2,007		5,853		5,770
Total non-interest expense	28,312		27,537		81,975		80,147
Income before income taxes	12,924		15,767		39,897		39,799
Provision for income taxes	3,225		3,805		9,746		9,389
Net income	$	9,699	$	11,962	$	30,151	$	30,410

Basic earnings per common share	$	0.79	$	0.99	$	2.47	$	2.51
Diluted earnings per common share	$	0.79	$	0.98	$	2.46	$	2.50

Basic weighted average common shares outstanding	12,247,892		12,119,348		12,210,740		12,094,613
Diluted weighted average common shares outstanding	12,264,778		12,156,695		12,233,861		12,143,468

ENTERPRISE BANCORP, INC.

Selected Consolidated Financial Data and Ratios

(unaudited)


	At or for the three months ended
(Dollars in thousands, except per share data)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Balance Sheet Data
Total cash and cash equivalents	$	225,421		$	258,825		$	215,693		$	267,589		$	413,688
Total investment securities at fair value	678,932			712,851			830,895			820,371			831,030
Total loans	3,404,014			3,345,667			3,230,156			3,180,518			3,109,369
Allowance for credit losses	(57,905)			(56,899)			(55,002)			(52,640)			(51,211)
Total assets	4,482,374			4,502,344			4,441,896			4,438,333			4,529,820
Total deposits	4,060,403			4,075,598			4,016,156			4,035,806			4,138,038
Subordinated debt	59,419			59,340			59,261			59,182			59,102
Total shareholders' equity	299,699			307,490			311,318			282,267			272,193
Total liabilities and shareholders' equity	4,482,374			4,502,344			4,441,896			4,438,333			4,529,820

Wealth Management
Wealth assets under management	$	984,647		$	1,009,386		$	930,714		$	891,451		$	835,661
Wealth assets under administration	$	211,046		$	214,116		$	206,569		$	198,586		$	185,977

Shareholders' Equity Ratios
Book value per common share	$	24.45		$	25.11		$	25.47		$	23.26		$	22.44
Dividends paid per common share	$	0.230		$	0.230		$	0.230		$	0.205		$	0.205

Regulatory Capital Ratios
Total capital to risk weighted assets	13.41		%	13.37		%	13.55		%	13.49		%	13.49		%
Tier 1 capital to risk weighted assets(1)	10.58		%	10.52		%	10.64		%	10.56		%	10.52		%
Tier 1 capital to average assets	8.59		%	8.62		%	8.47		%	8.10		%	7.89		%


Credit Quality Data
Non-performing loans	$	11,656		$	7,647		$	7,532		$	6,122		$	5,717


Non-performing loans to total loans	0.34		%	0.23		%	0.23		%	0.19		%	0.18		%
Non-performing assets to total assets	0.26		%	0.17		%	0.17		%	0.14		%	0.13		%
ACL for loans to total loans	1.70		%	1.70		%	1.70		%	1.66		%	1.65		%
Net charge-offs (recoveries)	$	(12)		$	146		$	(44)		$	166		$	52

Income Statement Data
Net interest income	$	38,502		$	38,093		$	39,971		$	42,165		$	39,779
Provision for credit losses	1,752			2,268			2,736			1,861			1,000
Total non-interest income	4,486			2,819			4,757			4,210			4,525
Total non-interest expense	28,312			25,623			28,040			28,167			27,537
Income before income taxes	12,924			13,021			13,952			16,347			15,767
Provision for income taxes	3,225			3,337			3,184			4,041			3,805
Net income	$	9,699		$	9,684		$	10,768		$	12,306		$	11,962

Income Statement Ratios
Diluted earnings per common share	$	0.79		$	0.79		$	0.88		$	1.01		$	0.98
Return on average total assets	0.85		%	0.88		%	0.99		%	1.08		%	1.05		%
Return on average shareholders' equity	12.53		%	12.63		%	14.67		%	18.08		%	16.47		%
Net interest margin (tax-equivalent)(2)	3.46		%	3.55		%	3.76		%	3.81		%	3.61		%

(1)Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.

(2)Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.

ENTERPRISE BANCORP, INC.

Consolidated Loan and Deposit Data

(unaudited)

Major classifications of loans at the dates indicated were as follows:


(Dollars in thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Commercial real estate	$	2,032,458	$	2,009,263	$	1,929,544	$	1,921,410	$	1,886,365
Commercial and industrial	425,334		420,095		423,864		414,490		413,347
Commercial construction	501,179		487,018		456,735		424,049		396,027
SBA PPP	—		—		—		—		2,725
Total commercial loans	2,958,971		2,916,376		2,810,143		2,759,949		2,698,464

Residential mortgages	362,514		346,523		335,834		332,632		321,663
Home equity loans and lines	74,433		74,374		75,809		79,807		80,882
Consumer	8,096		8,394		8,370		8,130		8,360
Total retail loans	445,043		429,291		420,013		420,569		410,905
Total loans	3,404,014		3,345,667		3,230,156		3,180,518		3,109,369

ACL for loans	(57,905)		(56,899)		(55,002)		(52,640)		(51,211)
Net loans	$	3,346,109	$	3,288,768	$	3,175,154	$	3,127,878	$	3,058,158

Deposits are summarized as follows as of the periods indicated:


(Dollars in thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Non-interest checking	$	1,130,732	$	1,273,968	$	1,247,253	$	1,361,588	$	1,441,104
Interest-bearing checking	727,817		701,701		641,194		678,715		719,474
Savings	290,363		310,321		297,790		326,666		351,665
Money market	1,434,036		1,373,816		1,454,858		1,381,645		1,395,756
CDs $250,000 or less	262,975		244,114		222,116		187,758		163,520
CDs greater than $250,000	214,480		171,678		152,945		99,434		66,519


Deposits	$	4,060,403	$	4,075,598	$	4,016,156	$	4,035,806	$	4,138,038

ENTERPRISE BANCORP, INC.

Consolidated Average Balance Sheets and Yields (tax-equivalent basis)

(unaudited)

The following table presents the Company's average balance sheets, net interest income and average rates for the periods indicated:


	Three months ended September 30, 2023				Three months ended June 30, 2023						Three months ended September 30, 2022
(Dollars in thousands)	Average Balance		Interest(1)		Average Yield(1)		Average Balance		Interest(1)		Average Yield(1)		Average Balance		Interest(1)		Average Yield(1)
Assets:
Loans and loans held for sale(2) (tax-equivalent)	$	3,372,754	$	44,644	5.25	%	$	3,268,586	$	41,930	5.14	%	$	3,085,896	$	35,422	4.56	%
Investment securities(3) (tax-equivalent)	820,156		4,444		2.17	%	917,965		5,189		2.26	%	954,385		4,959		2.08	%
Other interest-earning assets(4)	260,475		3,468		5.28	%	155,934		1,917		4.93	%	375,213		2,068		2.19	%
Total interest-earnings assets (tax-equivalent)	4,453,385		52,556		4.69	%	4,342,485		49,036		4.53	%	4,415,494		42,449		3.82	%
Other assets	82,190						92,909						101,095
Total assets	$	4,535,575					$	4,435,394					$	4,516,589

Liabilities and stockholders' equity:
Interest checking, savings and money market	$	2,481,814	9,185		1.47	%	$	2,351,011	6,880		1.17	%	$	2,444,705	1,045		0.17	%
CDs	430,376		3,704		3.41	%	393,387		2,812		2.87	%	221,827		415		0.74	%

Borrowed funds	4,938		28		2.30	%	4,595		30		2.58	%	2,940		13		1.77	%
Subordinated debt(5)	59,372		866		5.84	%	59,293		867		5.85	%	59,052		850		5.76	%
Total interest-bearing funding	2,976,500		13,783		1.84	%	2,808,286		10,589		1.51	%	2,728,524		2,323		0.34	%
Non-interest checking	1,195,658		—				1,269,339		—				1,449,909		—
Total deposits, borrowed funds and subordinated debt	4,172,158		13,783		1.31	%	4,077,625		10,589		1.04	%	4,178,433		2,323		0.22	%
Other liabilities	56,414						50,113						50,034
Total liabilities	4,228,572						4,127,738						4,228,467
Stockholders' equity	307,003						307,656						288,122
Total liabilities and stockholders' equity	$	4,535,575					$	4,435,394					$	4,516,589

Net interest-rate spread (tax-equivalent)					2.85	%					3.02	%					3.48	%
Net interest income (tax-equivalent)			38,773						38,447						40,126
Net interest margin (tax-equivalent)					3.46	%					3.55	%					3.61	%
Less tax-equivalent adjustment			271						354						347
Net interest income			$	38,502					$	38,093					$	39,779
Net interest margin					3.43	%					3.52	%					3.58	%

(1)Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.

(2)Average loans and loans held for sale are presented at amortized cost and include non-accrual loans.

(3)Average investments are presented at average amortized cost.

(4)Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock.

(5)Subordinated debt is net of average deferred debt issuance costs.

Cover	Oct. 24, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 24, 2023
Entity Registrant Name	ENTERPRISE BANCORP, INC.
Entity Incorporation, State or Country Code	MA
Entity File Number	001-33912
Entity Tax Identification Number	04-3308902
Entity Address, Address Line One	222 Merrimack Street
Entity Address, City or Town	Lowell,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01852
City Area Code	(978)
Local Phone Number	459-9000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	EBTC
Security Exchange Name	NASDAQ
Amendment Flag	false
Entity Central Index Key	0001018399