0001018399FALSE00010183992024-07-232024-07-23

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): July 23, 2024 (July 23, 2024)
____________________
ENTERPRISE BANCORP, INC.
(exact name of registrant as specified in charter)
Massachusetts001-3391204-3308902
(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 classTrading symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareEBTCNASDAQ Stock Market



Item 2.02              Results of Operations and Financial Condition
On July 23, 2024, Enterprise Bancorp, Inc. issued a press release concerning its results of operations and financial condition at or for the three and six months ended on June 30, 2024. 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
(c)        Not applicable
(d)        The following exhibit is included with this report:
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.
  
  
July 23, 2024By:/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 Second Quarter Financial Results

LOWELL, MA, July 23, 2024 (GLOBE NEWSWIRE) - Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended June 30, 2024. Net income amounted to $9.5 million, or $0.77 per diluted common share, for the three months ended June 30, 2024 compared to $8.5 million, or $0.69 per diluted common share, for the three months ended March 31, 2024 and $9.7 million, or $0.79 per diluted common share, for the three months ended June 30, 2023.

Selected financial results at or for the quarter ended June 30, 2024 compared to March 31, 2024 were as follows:
•The returns on average assets and average equity were 0.82% and 11.55%, respectively.
•Tax-equivalent net interest margin (non-GAAP) ("net interest margin") was 3.19%, a decrease of 1 basis point.
•Net interest income increased 2.8%.
•Total loans and total deposits increased 3.1% and 3.5%, respectively.
•Wealth assets under management and administration amounted to $1.40 billion, an increase of 1.7%.

Chief Executive Officer Steven Larochelle commented, "We had a solid second quarter with strong net income and loan growth funded through core deposits. Higher deposit costs and the inverted yield curve continue to be a headwind, but net interest margin was stable at 3.19%. Our liquidity position was favorable at June 30, 2024 with the loan to deposit ratio at 89% and interest-earning deposits with banks exceeding wholesale funding by $89.6 million. Credit quality remained strong with nominal charge-offs year-to-date."

Mr. Larochelle continued, "We remain committed to our long-term strategy of geographic expansion and customer acquisition through organic growth and investment in our team members, communities, products and technology. We are well positioned with a strong balance sheet, centered around a high-quality loan portfolio and favorable liquidity, core deposit funding and capital, paired with a conservative credit and reserve culture."

Executive Chairman & Founder George Duncan stated, "I would like to thank Jack Clancy, who retired as Chief Executive Officer of the Company and the Bank on June 7, 2024, for his valuable contributions over the past 35 years. Steve Larochelle, who succeeded Jack as Chief Executive Officer, has been a key member of our leadership team for the past 27 years, including the last 15 years as our Chief Banking Officer. Steve has been a significant contributor to our success and has handled a wide range of leadership responsibilities including the areas of commercial lending, cash management, wealth management, mortgage services, and branch operations. Steve is a great champion of our culture and takes pride in strong relationships with our customers and communities. He is the perfect person for our Chief Executive Officer role, and I am excited to have him lead us forward."

President Richard W. Main added, "I echo George's comments on Steve's leadership experience and on his commitment to our culture. We pride ourselves on understanding the unique needs of each customer and offering tailored solutions that lead to long-term relationships. The strength and depth of the relationships we have developed with our customers are a testament to our unwavering commitment to their success, which in turn has contributed to our history of consistent growth."

Net Interest Income
Net interest income for the three months ended June 30, 2024, amounted to $36.2 million, a decrease of $1.9 million, or 5%, compared to the three months ended June 30, 2023. The decrease was due primarily to an increase in deposit interest expense of $9.5 million and a decrease in interest and dividend income on investments of $1.0 million, partially offset by an increase in loan interest income of $9.4 million. The increase in interest expense
1

during the period was attributed primarily to an increase in the cost of funds and changes in deposit mix, while the increase in interest income during the period was due primarily to loan growth and higher market interest rates.

Net Interest Margin
Net interest margin was 3.19% for the three months ended June 30, 2024, compared to 3.20% for the three months ended March 31, 2024 and 3.55% for the three months ended June 30, 2023.

Asset yields for the second quarter of 2024 were 5.01% and increased 12 basis points compared to the first quarter of 2024, due primarily to new loan originations, loan repricing and an increase in the average balance of other interest-earning assets, which resulted mainly from deposit inflows during the period. Average total loans increased $100.3 million, or 3%, and average other interest-earning assets increased $37.8 million, or 44%, during the period.

The cost of funds for the second quarter of 2024 was 1.94% and increased 12 basis points compared to the first quarter of 2024. During the second quarter of 2024, average total deposits increased $129.2 million, or 3%, and the cost of deposits increased 13 basis points. The average balance of lower cost checking accounts increased $33.4 million, or 2%, and the average balance of higher cost savings, money market and certificate of deposit accounts increased $95.9 million, or 5%.

Provision for Credit Losses
The provision for credit losses for the three-month periods ended June 30, 2024 and June 30, 2023 are presented below:
Three months ended
Increase / (Decrease)
(Dollars in thousands)June 30,
2024		June 30,
2023
Provision for credit losses on loans - collectively evaluated
$(230)$2,210 $(2,440)
Provision for credit losses on loans - individually evaluated
1,358 (167)1,525 
Provision for credit losses for loans
1,128 2,043 (915)
Provision for unfunded commitments(991)225 (1,216)
Provision for credit losses
$137 $2,268 $(2,131)

The decrease in the provision for credit losses on loans of $915 thousand was due primarily to the impact of a reduction in recession risk within our allowance for credit loss ("ACL") model, partially offset by an increase in reserves on individually evaluated loans. The reduction in the provision for unfunded commitments of $1.2 million was driven primarily by a decrease in off-balance sheet commitments during the period.

Non-Interest Income
Non-interest income for the three months ended June 30, 2024, amounted to $5.6 million, an increase of $2.8 million compared to the three months ended June 30, 2023. Non-interest income in the prior year period included losses on sales of debt securities of $2.4 million. Excluding this item, non-interest income for the three months ended June 30, 2024 increased 7% compared to the three months ended June 30, 2023, due primarily to increases in wealth management fees and income on bank-owned life insurance.

Non-Interest Expense
Non-interest expense for the three months ended June 30, 2024, amounted to $29.0 million, an increase of $3.4 million, or 13%, compared to the three months ended June 30, 2023. Non-interest expense in the prior year period was impacted by the receipt of $3.4 million in Employee Retention Credits which the Company recognized as a reduction to salary and benefits expense. Excluding this item, non-interest expense for the three months ended June 30, 2024 decreased $25 thousand compared to the three months ended June 30, 2023.

Balance Sheet
Total assets amounted to $4.77 billion at June 30, 2024, compared to $4.47 billion at December 31, 2023, an increase of 7%.
2

Total interest-earning deposits with banks, which consist of overnight and short-term investments, amounted to $151.4 million at June 30, 2024, compared to $19.1 million at December 31, 2023. The increase was due primarily to deposit inflows, partially offset by loan growth.

Total investment securities at fair value amounted to $636.8 million at June 30, 2024, compared to $668.2 million at December 31, 2023. The decrease of 5% was largely attributable to principal pay-downs, calls and maturities during the six months ended June 30, 2024. Unrealized losses on debt securities amounted to $106.2 million at June 30, 2024, compared to $102.9 million at December 31, 2023, an increase of 3%.

Total loans amounted to $3.77 billion at June 30, 2024, compared to $3.57 billion at December 31, 2023. The increase of 6% was due primarily to an increase in commercial real estate loans of $140.1 million.

Total deposits amounted to $4.25 billion at June 30, 2024, compared to $3.98 billion at December 31, 2023. The increase of 7% was due primarily to increases in money market and certificate of deposit balances of $101.6 million and $98.0 million, respectively.

Total borrowed funds amounted to $61.8 million at June 30, 2024, compared to $25.8 million at December 31, 2023. The increase resulted from new term advances used to support the Company's operations.

Total shareholders' equity amounted to $340.4 million at June 30, 2024, compared to $329.1 million at December 31, 2023. The increase of 3% was due primarily to an increase in retained earnings of $12.1 million, partially offset by an increase in the accumulated other comprehensive loss of $2.5 million.

Credit Quality
Selected credit quality metrics at June 30, 2024, compared to December 31, 2023, were as follows:
•The ACL for loans amounted to $62.0 million, or 1.65% of total loans, compared to $59.0 million, or 1.65% of total loans.
•The reserve for unfunded commitments (included in other liabilities) amounted to $4.9 million, compared to $7.1 million.
•Non-performing loans amounted to $17.7 million, or 0.47% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase in non-performing loans resulted primarily from one individually evaluated commercial construction loan which was placed on non-accrual in the first quarter of 2024.

Net recoveries amounted to $130 thousand for the three months ended June 30, 2024, compared to net charge-offs of $146 thousand for the three months ended June 30, 2023.

Wealth Management
Wealth assets under management and administration, which are not carried as assets on the Company's consolidated balance sheets, amounted to $1.40 billion at June 30, 2024, an increase of $76.6 million, or 6%, compared to December 31, 2023, and resulted primarily from an increase in market value.

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 139 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,
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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 bank failures and any continuation of 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; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the current inflationary pressures, or the resurgence of elevated levels of inflation, 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; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; 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.
4

ENTERPRISE BANCORP, INC.
Consolidated Balance Sheets
(unaudited)
(Dollars in thousands, except per share data)June 30,
2024		December 31,
2023		June 30,
2023
Assets  
Cash and cash equivalents:  
Cash and due from banks$48,352 $37,443 $49,996 
Interest-earning deposits with banks151,367 19,149 208,829 
Total cash and cash equivalents199,719 56,592 258,825 
Investments:
Debt securities at fair value (amortized cost of $734,523, $763,981 and $820,004, respectively)
628,314 661,113 706,953 
Equity securities at fair value8,524 7,058 5,898 
Total investment securities at fair value636,838 668,171 712,851 
Federal Home Loan Bank stock2,482 2,402 2,404 
Loans held for sale— 200 — 
Loans:
Total loans3,768,649 3,567,631 3,345,667 
Allowance for credit losses(61,999)(58,995)(56,899)
Net loans3,706,650 3,508,636 3,288,768 
Premises and equipment, net44,209 44,931 43,603 
Lease right-of-use asset24,469 24,820 24,578 
Accrued interest receivable20,343 19,233 16,885 
Deferred income taxes, net48,619 49,166 48,875 
Bank-owned life insurance66,381 65,455 64,779 
Prepaid income taxes4,806 1,589 2,790 
Prepaid expenses and other assets13,509 19,183 32,330 
Goodwill5,656 5,656 5,656 
Total assets$4,773,681 $4,466,034 $4,502,344 
Liabilities and Shareholders' Equity
Liabilities
Deposits$4,248,801 $3,977,521 $4,075,598 
Borrowed funds61,785 25,768 3,334 
Subordinated debt59,657 59,498 59,340 
Lease liability24,157 24,441 24,148 
Accrued expenses and other liabilities30,546 45,011 29,161 
Accrued interest payable8,294 4,678 3,273 
Total liabilities4,433,240 4,136,917 4,194,854 
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; 12,424,407, 12,272,674 and 12,244,733 shares issued and outstanding, respectively.
124 123 122 
Additional paid-in capital109,137 107,377 105,552 
Retained earnings313,486 301,380 289,409 
Accumulated other comprehensive loss(82,306)(79,763)(87,593)
Total shareholders' equity340,441 329,117 307,490 
Total liabilities and shareholders' equity$4,773,681 $4,466,034 $4,502,344 

5

ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited)
Three months endedSix months ended
(Dollars in thousands, except per share data)June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Interest and dividend income:  
Other interest-earning assets$1,697 $1,172 $1,917 $2,869 $4,125 
Investment securities3,943 4,034 4,967 7,977 10,040 
Loans and loans held for sale51,224 48,817 41,798 100,041 81,354 
Total interest and dividend income56,864 54,023 48,682 110,887 95,519 
Interest expense:   
Deposits19,172 17,272 9,692 36,444 15,679 
Borrowed funds664 694 30 1,358 42 
Subordinated debt867 867 867 1,734 1,734 
Total interest expense20,703 18,833 10,589 39,536 17,455 
Net interest income36,161 35,190 38,093 71,351 78,064 
Provision for credit losses137 622 2,268 759 5,004 
Net interest income after provision for credit losses36,024 34,568 35,825 70,592 73,060 
Non-interest income:  
Wealth management fees1,970 1,850 1,673 3,820 3,260 
Deposit and interchange fees2,284 2,069 2,295 4,353 4,343 
Income on bank-owned life insurance, net503 458 316 961 623 
Net losses on sales of debt securities
— — (2,419)— (2,419)
Net gains on sales of loans44 22 6 66 20 
Gains on equity securities
101 465 189 566 173 
Other income726 631 759 1,357 1,576 
Total non-interest income5,628 5,495 2,819 11,123 7,576 
Non-interest expense:
Salaries and employee benefits19,675 19,176 16,135 38,851 34,656 
Occupancy and equipment expenses2,406 2,459 2,505 4,865 5,006 
Technology and telecommunications expenses2,658 2,745 2,636 5,403 5,311 
Advertising and public relations expenses674 743 804 1,417 1,485 
Audit, legal and other professional fees711 734 782 1,445 1,422 
Deposit insurance premiums862 859 615 1,721 1,290 
Supplies and postage expenses240 237 247 477 502 
Other operating expenses1,803 1,955 1,899 3,758 3,991 
Total non-interest expense29,029 28,908 25,623 57,937 53,663 
Income before income taxes12,623 11,155 13,021 23,778 26,973 
Provision for income taxes3,111 2,648 3,337 5,759 6,521 
Net income$9,512 $8,507 $9,684 $18,019 $20,452 
Basic earnings per common share$0.77 $0.69 $0.79 $1.46 $1.68 
Diluted earnings per common share$0.77 $0.69 $0.79 $1.46 $1.67 
Basic weighted average common shares outstanding12,389,917 12,292,417 12,228,081 12,341,630 12,191,857 
Diluted weighted average common shares outstanding12,394,463 12,304,203 12,244,863 12,349,573 12,218,735 
6

ENTERPRISE BANCORP, INC.
Selected Consolidated Financial Data and Ratios
(unaudited)

At or for the three months ended
(Dollars in thousands, except per share data)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Balance Sheet Data  
Total cash and cash equivalents$199,719$147,834$56,592$225,421$258,825
Total investment securities at fair value636,838652,026668,171678,932712,851
Total loans3,768,6493,654,3223,567,6313,404,0143,345,667
Allowance for credit losses(61,999)(60,741)(58,995)(57,905)(56,899)
Total assets4,773,6814,624,0154,466,0344,482,3744,502,344
Total deposits4,248,8014,106,1193,977,5214,060,4034,075,598
Borrowed funds
61,78563,24625,7684,2903,334
Subordinated debt59,65759,57759,49859,41959,340
Total shareholders' equity340,441333,439329,117299,699307,490
Total liabilities and shareholders' equity4,773,6814,624,0154,466,0344,482,3744,502,344
Wealth Management
Wealth assets under management$1,129,147$1,105,036$1,077,761$984,647$1,009,386
Wealth assets under administration$267,529$268,074$242,338$211,046$214,116
Shareholders' Equity Ratios
Book value per common share$27.40$26.94$26.82$24.45$25.11
Dividends paid per common share$0.24$0.24$0.23$0.23$0.23
Regulatory Capital Ratios
Total capital to risk weighted assets13.07 %13.20 %13.12 %13.45 %13.37 %
Tier 1 capital to risk weighted assets(1)
10.34 %10.43 %10.34 %10.61 %10.52 %
Tier 1 capital to average assets8.76 %8.85 %8.74 %8.59 %8.62 %
Credit Quality Data
Non-performing loans$17,731$18,527$11,414$11,656$7,647
Non-performing loans to total loans0.47 %0.51 %0.32 %0.34 %0.23 %
Non-performing assets to total assets0.37 %0.40 %0.26 %0.26 %0.17 %
ACL for loans to total loans1.65 %1.66 %1.65 %1.70 %1.70 %
Net (recoveries) charge-offs
$(130)$122$15$(12)$146
Income Statement Data   
Net interest income$36,161$35,190$36,518$38,502$38,093
Provision for credit losses1376222,4931,7522,268
Total non-interest income5,6285,4955,5474,4862,819
Total non-interest expense29,02928,90828,22428,31225,623
Income before income taxes12,62311,15511,34812,92413,021
Provision for income taxes3,1112,6483,4413,2253,337
Net income$9,512$8,507$7,907$9,699$9,684
Income Statement Ratios
Diluted earnings per common share$0.77$0.69$0.64$0.79$0.79
Return on average total assets0.82 %0.75 %0.69 %0.85 %0.88 %
Return on average shareholders' equity11.55 %10.47 %10.21 %12.53 %12.63 %
Net interest margin (tax-equivalent)(2)
3.19 %3.20 %3.29 %3.46 %3.55 %
(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.


7

ENTERPRISE BANCORP, INC.
Consolidated Loan and Deposit Data
(unaudited)

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

(Dollars in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Commercial real estate$2,204,864$2,159,594$2,064,737$2,032,458$2,009,263
Commercial and industrial426,976417,604430,749425,334420,095
Commercial construction622,094583,711585,113501,179487,018
Total commercial loans3,253,9343,160,9093,080,5992,958,9712,916,376
Residential mortgages413,323400,093393,142362,514346,523
Home equity loans and lines 93,22085,14485,37574,43374,374
Consumer8,1728,1768,5158,0968,394
Total retail loans514,715493,413487,032445,043429,291
Total loans3,768,6493,654,3223,567,6313,404,0143,345,667
ACL for loans(61,999)(60,741)(58,995)(57,905)(56,899)
Net loans$3,706,650$3,593,581$3,508,636$3,346,109$3,288,768

Deposits are summarized as follows as of the periods indicated:
(Dollars in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Non-interest checking$1,050,876 $1,050,608 $1,070,104 $1,130,732 $1,273,968 
Interest-bearing checking788,822 730,819 697,632 727,817 701,701 
Savings285,461 273,369 285,770 290,363 310,321 
Money market1,504,551 1,469,181 1,402,939 1,434,036 1,373,816 
CDs $250,000 or less 358,149 337,367 295,789 262,975 244,114 
CDs greater than $250,000260,942 244,775 225,287 214,480 171,678 
 Deposits$4,248,801 $4,106,119 $3,977,521 $4,060,403 $4,075,598 















8

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 June 30, 2024Three Months Ended March 31, 2024Three months ended June 30, 2023
(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:      
Other interest-earning assets(2)
$123,887 $1,697 5.51 %$86,078 $1,172 5.48 %$155,934 $1,917 4.93 %
Investment securities(3) (tax-equivalent)
750,822 4,057 2.16 %763,692 4,157 2.18 %917,965 5,189 2.26 %
Loans and loans held for sale(4) (tax-equivalent)
3,708,485 51,366 5.57 %3,608,157 48,960 5.46 %3,268,586 41,930 5.14 %
Total interest-earnings assets (tax-equivalent)4,583,194 57,120 5.01 %4,457,927 54,289 4.89 %4,342,485 49,036 4.53 %
Other assets96,991   91,794 92,909  
Total assets$4,680,185   $4,549,721 $4,435,394  
Liabilities and stockholders' equity:     
Non-interest checking$1,054,932 — $1,069,145 — $1,269,339 — 
Interest checking, savings and money market2,510,155 12,381 1.98 %2,418,947 11,356 1.89 %2,351,011 6,880 1.17 %
CDs601,339 6,791 4.54 %549,097 5,916 4.33 %393,387 2,812 2.87 %
Total deposits
4,166,426 19,172 1.85 %4,037,189 17,272 1.72 %4,013,737 9,692 0.97 %
Borrowed funds62,513 664 4.27 %63,627 694 4.38 %4,595 30 2.58 %
Subordinated debt(5)
59,609 867 5.82 %59,530 867 5.82 %59,293 867 5.85 %
Total funding liabilities
4,288,548 20,703 1.94 %4,160,346 18,833 1.82 %4,077,625 10,589 1.04 %
Other liabilities60,270   62,500 50,113  
Total liabilities4,348,818   4,222,846 4,127,738  
Stockholders' equity331,367   326,875 307,656 
Total liabilities and stockholders' equity$4,680,185   $4,549,721 $4,435,394  
Net interest-rate spread (tax-equivalent)  3.07 %3.07 %  3.49 %
Net interest income (tax-equivalent) 36,417  35,456  38,447 
Net interest margin (tax-equivalent)  3.19 %3.20 %  3.55 %
Less tax-equivalent adjustment 256 266 354 
Net interest income$36,161 $35,190 $38,093 
Net interest margin 3.17 %3.17 %3.52 %
(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 other interest-earning assets include interest-earning deposits with banks, federal funds sold and FHLB stock.
(3)Average investment securities are presented at average amortized cost.
(4)Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans.
(5)Subordinated debt is net of average deferred debt issuance costs.

9
v3.24.2
Cover
Jul. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 23, 2024
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
Enterprise Bancorp (NASDAQ:EBTC)
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