Enterprise Bancorp (EBTC) 8-K Enterprise Bancorp, Inc. Announces 2007 First Quarter Financial Results and Quarterly Dividend

Exhibit 99

Contact Info:	Mary Ellen Fitzpatrick (978) 656-5520
	Senior Vice President, Corporate Communications

Enterprise Bancorp, Inc. Announces 2007 First Quarter
Financial Results and Quarterly Dividend

LOWELL, Mass—(BUSINESS WIRE)-Apr. 17, 2007-Enterprise Bancorp, Inc. (the “company”) (NASDAQ:EBTC) announced net income of $2.222 million for the quarter ended March 31, 2007 compared to $2.056 million during the quarter ended March 31, 2006, an increase of 8%.

Diluted earnings per share were $0.28 for the quarter compared to $0.26 for 2006, an increase of 8%.  All prior period per-share amounts have been adjusted to reflect the two-for-one stock split paid on June 30, 2006 in the form of a stock dividend.

The company also announced a quarterly dividend of $0.08 to be paid on June 1, 2007 to shareholders of record as of May 11, 2007. The quarterly dividend represents a 14% increase over the 2006 dividend rate.

Net income growth resulted primarily from an increase in non-interest income and a decrease in the provision for loan losses, partially offset by an increase in non-interest expense.

Net interest income for the quarter ended March 31, 2007 amounted to $10.0 million, representing a $55 thousand decrease from the same period in 2006.  Net interest margin, the spread earned between interest-earning assets and the company’s funding sources, primarily deposits, was 4.59% for the quarter ended March 31, 2007 compared to 4.74% and 4.79% for the quarters ended December 31, and March 31, 2006, respectively.  The decrease in margin resulted from both the flat yield curve and a highly-competitive marketplace.

Non-interest income was $2.08 million for the quarter ended March 31, 2007, an increase of $397 thousand or 24% over the same period in 2006.  The growth resulted primarily from increases of $149 thousand in investment advisory fees, $107 thousand in bank-owned life insurance income and $89 thousand in deposit service fees.

Non-interest expense amounted to $8.52 million for the quarter ended March 31, 2007 compared to $8.22 million for the same period in 2006, an increase of 4%.  The increases were predominantly in occupancy and compensation related costs necessary to support the company’s growth.

The provision for loan losses, which is impacted by asset quality and loan growth, amounted to $83 thousand for the quarter ended March 31, 2007 compared to $273 thousand in the first quarter of 2006. The reduced provision reflects continued favorable asset quality, evidenced by a non-performing loan ratio of 0.38% at March 31, 2007 and net recoveries of $73 thousand during the quarter. The allowance for loan losses to total loans ratio was 1.68% at March 31, 2007 compared to 1.70% at December 31, 2006.

Key Financial Highlights

·Total loans increased 3% since December 31, 2006, amounting to $780.4 million at March 31, 2007.

·Total assets were $995.0 million at March 31, 2007 as compared to $979.3 million at December 31, 2006, an increase of 2%.

·Total deposits, excluding brokered deposits, were $791.6 million at March 31, 2007 and $802.6 million at December 31, 2006, a decrease of 1%.   Brokered deposits amounted to $89.9 million and $64.9 million on those respective dates.

·Investment assets under management increased to $513.3 million at March 31, 2007 compared to $502.1 million at December 31, 2006, an increase of 2%.

·Total assets under management amounted to $1.529 billion at March 31, 2007 as compared to $1.503 billion at December 31, 2006, an increase of 2%.

George L. Duncan, Chairman of Enterprise Bancorp, Inc. summarized the March 31, 2007 results by stating, “The flat rate environment and highly-competitive marketplace continue to negatively impact margins and challenge earnings growth across the banking industry.  In this environment, we are very pleased to report net income growth of 8%.”

John P. Clancy, Jr., Chief Executive Officer, added, “We remain focused on investing in our future and maintain our commitment to a long-term strategy of geographic expansion and commercial banking growth, delivered by a highly-skilled management team and a well-trained, service-orientated employee base.”

Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all of its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank. The company principally is engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities.  Through the bank and its subsidiaries, the company offers a range of commercial and consumer loan and deposit products as well as investment management, trust and insurance services. The company’s headquarters and the bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The company’s primary market area is the Merrimack Valley, North Central region of Massachusetts and South Central New Hampshire.  The company has fourteen full-service branch banking offices located in the Massachusetts cities and towns of Lowell, Andover, Billerica, Chelmsford, Dracut, Fitchburg, Leominster, Tewksbury, and Westford, and in Salem, New Hampshire, which serve those cities and towns as well as the surrounding communities.  The Company plans to open a new branch facility in the city of Methuen, Massachusetts in late 2007.

The above text 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 the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” and other expressions that predict or indicate future events or trends and which do not relate to historical matters.  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 or implied by the forward-looking statements.  Factors that could cause such differences include, but are not limited to general economic conditions, changes in interest rates, regulatory considerations and competition.  For more information about these factors, please see our most recent Annual Report on Form 10-K 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 press 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.

ENTERPRISE BANCORP, INC.

Consolidated Statements of Income
Three months ended March 31, 2007 and 2006
(unaudited)

	Three Months Ended March��31,
(Dollars in thousands, except per share data)	2007		2006
Interest and dividend income:
Loans	$	14,269	$	12,482
Investment securities	1,321		1,566
Short-term investments	31		93
Total interest and dividend income	15,621		14,141
Interest expense:
Deposits	5,058		3,315
Borrowed funds	233		441
Junior subordinated debentures	294		294
Total interest expense	5,585		4,050
Net interest income	10,036		10,091
Provision for loan losses	83		273
Net interest income after provision for loan losses	9,953		9,818
Non-interest income:
Investment advisory fees	778		629
Deposit service fees	504		415
Bank-owned life insurance	148		41
Net gains on sales of investment securities	53		30
Gains on sales of loans	40		44
Other income	555		522
Total non-interest income	2,078		1,681
Non-interest expense:
Salaries and employee benefits	5,335		5,122
Occupancy expenses	1,618		1,424
Audit, legal and other professional fees	296		322
Advertising and public relations	262		245
Supplies and postage	233		225
Investment advisory and custodial expenses	123		118
Other operating expenses	653		762
Total non-interest expense	8,520		8,218
Income before income taxes	3,511		3,281
Income tax expense	1,289		1,225
Net income	$	2,222	$	2,056
Basic earnings per share	$	0.29	$	0.27
Diluted earnings per share	$	0.28	$	0.26
Basic weighted average common shares outstanding	7,747,985		7,603,694
Diluted weighted average common shares outstanding	7,879,334		7,795,572

ENTERPRISE BANCORP, INC.

Consolidated Balance Sheets
(unaudited)

	March 31,		December 31,		March 31,
(Dollars in thousands)	2007		2006		2006
Assets
Cash and cash equivalents:
Cash and due from banks	$	30,800	$	35,583	$	30,225
Short-term investments	15,886		15,304		22,690
Total cash and cash equivalents	46,686		50,887		52,915
Investment securities at fair value	129,354		131,540		153,011
Loans, less allowance for loan losses of $13,096 at March 31, 2007, $12,940 at December 31, 2006 and $12,325 at March 31, 2006	767,258		748,173		706,464
Premises and equipment	15,668		16,015		12,009
Accrued interest receivable	5,884		5,464		5,160
Deferred income taxes, net	6,704		6,861		6,346
Bank-owned life insurance	12,347		12,212		3,905
Prepaid expenses and other assets	4,955		1,976		2,649
Core deposit intangible, net of amortization	442		475		575
Goodwill	5,656		5,656		5,656
Total assets	$	994,954	$	979,259	$	948,690
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	881,549	$	867,522	$	832,976
Borrowed funds	15,168		15,105		29,474
Junior subordinated debentures	10,825		10,825		10,825
Accrued expenses and other liabilities	4,517		6,567		4,277
Income taxes payable	1,146		92		325
Accrued interest payable	2,175		2,105		1,276
Total liabilities	915,380		902,216		879,153
Commitments and Contingencies
Stockholders’ 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; 10,000,000 shares authorized; 7,770,196, 7,722,288 and 7,616,496 shares issued and outstanding at March 31, 2007, December 31, 2006 and March 31, 2006, respectively	78		77		76
Additional paid-in capital	26,489		25,806		24,609
Retained earnings	52,730		51,127		45,558
Accumulated other comprehensive income (loss)	277		33		(706		)
Total stockholders’ equity	79,574		77,043		69,537
Total liabilities and stockholders’ equity	$	994,954	$	979,259	$	948,690

ENTERPRISE BANCORP, INC.

Selected Consolidated Financial Data and Ratios
(unaudited)

	At or for the			At or for the			At or for the
	three months ended			year ended			three months ended
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share data)	2007			2006			2006
Balance Sheet Items:
Total assets	$	994,954		$	979,259		$	948,690
Loans serviced for others	21,163			21,659			22,729
Investment assets under management	513,261			502,059			441,612
Total assets under management	$	1,529,378		$	1,502,977		$	1,413,031
Book value per share	$	10.24		$	9.98		$	9.13
Dividends per common share	$	0.08		$	0.28		$	0.07
Total capital to risk weighted assets	11.28		%	11.37		%	11.08		%
Tier 1 capital to risk weighted assets	9.98		%	10.08		%	9.79		%
Tier 1 capital to average assets	8.71		%	8.47		%	8.09		%
Allowance for loan losses to total loans	1.68		%	1.70		%	1.71		%
Non-performing loans to total loans	0.38		%	0.24		%	0.21		%
Income Statement Items:
Return on average assets	0.93		%	0.98		%	0.90		%
Return on average stockholders’ equity	11.54		%	12.89		%	12.12		%
Net interest margin (tax equivalent)	4.59		%	4.78		%	4.79		%