Enterprise Bancorp (EBTC) 8-K Enterprise Bancorp, Inc. Announces 2007 Third Quarter

Exhibit 99

Contact Info:  Mary Ellen Fitzpatrick (978) 656-5520

                        Senior Vice President, Corporate Communications

Enterprise Bancorp, Inc. Announces 2007 Third Quarter

Financial Results

LOWELL, Mass—(BUSINESS WIRE)—Oct. 16, 2007—Enterprise Bancorp, Inc. (the “company”) (NASDAQ:EBTC) announced net income of $2.623 million for the quarter ended September 30, 2007 compared to $2.451 million during the quarter ended September 30, 2006, an increase of 7%. Diluted earnings per share were $0.33 for the third quarter compared to $0.31 for the same period in 2006, an increase of 6%.

Net income for the nine months ended September 30, 2007 amounted to $7.163 million compared to $6.689 million for the same period in 2006, an increase of 7%. Diluted earnings per share were $0.91 for the nine months ended September 30, 2007 compared to $0.86 for the same period in 2006, an increase of 6%.

Year-to-date 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 and a decrease in net interest income.

Net interest income for the nine months ended September 30, 2007 amounted to $30.4 million compared to $31.0 million for the same period in 2006, a decrease of 2%. Net interest margin, the spread earned between interest-earning assets and the company’s funding sources, primarily deposits, was 4.50% for the nine months ended September 30, 2007, compared to 4.79% for the same period in 2006. Net interest margin for the quarter ended September 30, 2007 was 4.40% compared to 4.51% and 4.76% for the quarters ended June 30, 2007 and September 30, 2006, respectively. The decrease in margin resulted from both the flat yield curve and a highly-competitive marketplace.

Non-interest income was $7.1 million for the nine months ended September 30, 2007, an increase of $2.0 million or 39% over the same period in 2006. The growth resulted primarily from an increase of $850 thousand in gains on security sales, which occurred mainly in the second and third quarters, and from increases of $376 thousand in investment advisory fees, $208 thousand in bank-owned life insurance income, and $334 thousand in deposit-service fees.

Non-interest expense amounted to $26.1 million for the nine months ended September 30, 2007 compared to $24.6 million for the same period in 2006, an increase of 6%. The increases were predominantly in occupancy and compensation-related costs which support the company’s growth.

The provision for loan losses, which is impacted by asset quality and loan growth, amounted to $350 thousand for the nine months ended September 30, 2007 compared to $892 thousand for the same period in 2006, a decrease of $542 thousand. The reduced provision reflects favorable year-to-date net recoveries of $109 thousand of which $67 thousand occurred in the third quarter. The allowance for loan losses to total loans ratio was 1.65% at September 30, 2007 and June 30, 2007 as compared to 1.70% at December 31, 2006.

Key Financial Highlights

•Total assets were $1.033 billion at September 30, 2007 as compared to $979.3 million at December 31, 2006, an increase of 6%.

•Total loans increased 7% since December 31, 2006, amounting to $812.1 million at September 30, 2007.

•Total deposits, excluding brokered deposits, were $808.3 million at September 30, 2007 and $802.6 million at December 31, 2006, an increase of 0.7%. Brokered deposits amounted to $90.0 million and $64.9 million on those respective dates.

•Investment assets under management increased to $546.0 million at September 30, 2007 compared to $502.1 million at December 31, 2006, an increase of 9%.

•Total assets under management amounted to $1.6 billion at September 30, 2007 as compared to $1.5 billion at December 31, 2006, an increase of 6%.

George L. Duncan, Chairman of Enterprise Bancorp, Inc. summarized the September 30, 2007 results by stating, “The banking industry’s earnings continue to be effected by reduced interest margins. In light of this, we are very pleased to report quarter and year-to-date 2007 net income growth of 7%.”

John P. Clancy, Jr., Chief Executive Officer, added, “We have been able to show strong earnings growth in spite of net margin pressure in the banking industry while, at the same time, we remain focused on investing in our future as well as our commitment to a long-term strategy of geographic expansion and growth.

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 early 2008.

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 and nine months ended September 30, 2007 and 2006

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2007		2006		2007		2006
Interest and dividend income:
Loans	$	15,096	$	13,991	$	43,936	$	39,802
Investment securities	1,463		1,510		4,151		4,558
Short-term investments	143		97		209		257
Total interest and dividend income	16,702		15,598		48,296		44,617
Interest expense:
Deposits	5,946		4,722		16,451		12,021
Borrowed funds	183		95		589		726
Junior subordinated debentures	294		294		883		883
Total interest expense	6,423		5,111		17,923		13,630
Net interest income	10,279		10,487		30,373		30,987
Provision for loan losses	215		375		350		892
Net interest income after provision for loan losses	10,064		10,112		30,023		30,095
Non-interest income:
Investment advisory fees	794		747		2,389		2,013
Deposit service fees	588		454		1,615		1,281
Bank-owned life insurance	152		158		448		240
Net gains on sales of investment securities	391		28		869		19
Gains on sales of loans	45		39		144		117
Other income	574		442		1,672		1,469
Total non-interest income	2,544		1,868		7,137		5,139
Non-interest expense:
Salaries and employee benefits	5,303		4,835		15,945		14,964
Occupancy expenses	1,520		1,539		4,873		4,474
Audit, legal and other professional fees	289		297		1,081		922
Advertising and public relations	259		326		816		955
Supplies and postage	222		235		704		636
Investment advisory and custodial expenses	132		130		384		364
Other operating expenses	867		730		2,273		2,251
Total non-interest expense	8,592		8,092		26,076		24,566
Income before income taxes	4,016		3,888		11,084		10,668
Income tax expense	1,393		1,437		3,921		3,979
Net income	$	2,623	$	2,451	$	7,163	$	6,689
Basic earnings per share	$	0.33	$	0.32	$	0.92	$	0.88
Diluted earnings per share	$	0.33	$	0.31	$	0.91	$	0.86
Basic weighted average common shares outstanding	7,846,563		7,691,407		7,797,682		7,644,641
Diluted weighted average common shares outstanding	7,921,918		7,840,578		7,899,919		7,811,668

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ENTERPRISE BANCORP, INC.

Consolidated Balance Sheets

(unaudited)

	September 30,		December 31,		September 30,
(Dollars in thousands)	2007		2006		2006
Assets
Cash and cash equivalents:
Cash and due from banks	$	29,500	$	35,583	$	28,408
Short-term investments	3,542		15,304		20,856
Total cash and cash equivalents	33,042		50,887		49,264
Investment securities at fair value	147,391		131,540		142,936
Loans, less allowance for loan losses of $13,399 at September 30, 2007, $12,940 at December 31, 2006, and $12,721 at September 30, 2006	798,740		748,173		733,841
Premises and equipment	18,585		16,015		13,848
Accrued interest receivable	6,139		5,464		5,615
Deferred income taxes, net	6,590		6,861		6,241
Bank-owned life insurance	12,594		12,212		12,074
Prepaid expenses and other assets	2,910		1,976		1,959
Income taxes receivable	1,150		—		842
Core deposit intangible, net of amortization	376		475		509
Goodwill	5,656		5,656		5,656
Total assets	$	1,033,173	$	979,259	$	972,785
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	898,336	$	867,522	$	867,917
Borrowed funds	30,402		15,105		9,967
Junior subordinated debentures	10,825		10,825		10,825
Accrued expenses and other liabilities	6,399		6,567		7,580
Income taxes payable	—		92		—
Accrued interest payable	2,782		2,105		2,433
Total liabilities	948,744		902,216		898,722
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; 20,000,000 shares authorized; 7,860,818, 7,722,288 and 7,702,702 shares issued and outstanding at September 30, 2007, December 31, 2006 and September 30, 2006, respectively	79		77		77
Additional paid-in capital	27,487		25,806		25,463
Retained earnings	56,421		51,127		49,120
Accumulated other comprehensive income / (loss)	442		33		(597		)
Total stockholders’ equity	84,429		77,043		74,063
Total liabilities and stockholders’ equity	$	1,033,173	$	979,259	$	972,785

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ENTERPRISE BANCORP, INC.

Selected Consolidated Financial Data and Ratios

(unaudited)

	At or for the			At or for the			At or for the
	nine months			year			nine months
	ended			ended			ended
	September 30,			December 31,			September 30,
(Dollars in thousands, except per share data)	2007			2006			2006
Balance Sheet Items:
Total assets	$	1,033,173		$	979,259		$	972,785
Loans serviced for others	20,516			21,659			22,152
Investment assets under management	546,030			502,059			462,811
Total assets under management	$	1,599,719		$	1,502,977		$	1,457,748
Book value per share	$	10.74		$	9.98		$	9.62
Dividends per common share	$	0.24		$	0.28		$	0.21
Total capital to risk weighted assets	11.46		%	11.37		%	11.22		%
Tier 1 capital to risk weighted assets	10.17		%	10.08		%	9.95		%
Tier 1 capital to average assets	8.77		%	8.47		%	8.32		%
Allowance for loan losses to total loans	1.65		%	1.70		%	1.70		%
Non-performing loans to total loans	0.43		%	0.24		%	0.26		%
Income Statement Items (annualized):
Return on average assets	0.97		%	0.98		%	0.95		%
Return on average stockholders’ equity	11.92		%	12.89		%	12.71		%
Net interest margin (tax equivalent)	4.50		%	4.78		%	4.79		%

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