Branch Opening, Closing, Relocation and Reduction in Service Policy

It is and shall be the policy of Enterprise Bank (the "Bank") that each of its branches be profitable at all times except for a start-up period determined as part of the process by which the proposed branch is approved by the Board of Directors (the "Board") and for such other circumstances as the Board or Senior Management may specify in writing. For any period during which a branch is not profitable, purchase premium expense excluded, other than the start-up phase usually the first three (3) years, Senior Management shall report to the Board the reasons for such lack of profit, the amount of any loss incurred in the current period and cumulatively, if appropriate, and what plan management has implemented to bring the branch to profitability. Such report shall be given to the Board on each non-profitable branch on a semi-annual or more frequent basis until the branch becomes profitable.

In determining whether a branch is profitable, management may make good faith use of any reasonable method provided that the same method is applied to all branches of the Bank with such reasonable exceptions for limited service branches, automated teller machines, and similar exceptional branches as the Board may approve from time to time. In particular, any form of "support" for branches from the main office or any other area of the Bank shall be allocated based purely on business considerations and not on the racial or ethnic makeup of a branch's surrounding community.

Because of the regulatory sensitivity of such closings, any proposed closing of a branch shall be referred to the Board for final decision. The economic reasons for closing such a branch shall be part of the materials presented to the Board, together with information addressing the following points:

  1. Actions taken to attempt to return the branch to profitability.

  2. The presence in the branch's neighborhood of other financial institutions and the accessibility and services of such institutions.

  3. Proposed actions to advise the branch's local community of the planned closing including meetings with key leaders in the community.

  4. Planned actions to minimize the impact of the branch's closing on its neighborhood.

Branches opened, closed and relocated during the current and past two years:

Opened
Hudson, New Hampshire - February 2011
Pelham, New Hampshire - February 2012
Tyngsboro, Massachusetts - November 2012
Lawrence, Massachusetts - April 2013

Relocated/ Closed
None

Click here for a listing of branch locations including ATMs.

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