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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
 
Defined Contribution Plans
 
The Company has a 401(k) defined contribution employee benefit plan. The 401(k) plan allows eligible employees to contribute a percentage of their earnings to the plan. A portion of an employee's contribution, as determined by the Compensation and Human Resources Committee of the Board of Directors, is matched by the Company. In 2020, 2019, and 2018 the Company's percentage match was 70% up to the first 6% contributed by the employee.
 
All eligible employees, at least 18 years of age and completing 1 hour of service, may participate in the 401(k) plan.  Since the fourth quarter of 2017, vesting for the Company's 401(k) retirement plan matching contribution is based on years of service with participants becoming 25% vested on the anniversary of their hire date and each subsequent year until they are 100% vested following four years of service. Unvested amounts not distributable to an employee following termination of employment are used to offset plan expenses and the Company's matching contributions.

The Company's expense for the 401(k) plan match was $1.6 million, $1.5 million, and $1.3 million, respectively, for the years ended December 31, 2020, 2019, and 2018.

Additionally, on December 11, 2018, the Board approved and adopted the Enterprise Bank Supplemental Executive Retirement and Deferred Compensation Plan. The plan is unfunded and is maintained for the purpose of providing deferred compensation to a certain group of management employees. Total expenses for the deferred compensation plan were $249 thousand and $322 thousand for the years ended December 31, 2020 and 2019, respectively.

Supplemental Employee Retirement Plan ("SERP")

The Company has salary continuation agreements with two of its current executive officers and one former executive officer. These salary continuation agreements provide for predetermined fixed-cash supplemental retirement benefits to be provided for a period of 20 years after each individual reaches a defined "benefit age." The individuals covered under the SERP have reached the defined benefit age and are receiving payments under the SERP. Additionally, the Company has not recognized service costs in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the SERP.
 
This non-qualified plan represents a direct liability of the Company, and as such, the Company has no specific assets set aside to settle the benefit obligation. The aggregate amount accrued, or the "accumulated benefit obligation," is equal to the present value of the benefits to be provided to the employee or any beneficiary. Because the Company's benefit obligations provide for predetermined fixed-cash payments, the Company does not have any unrecognized costs to be included as a component of accumulated other comprehensive income.

The amounts charged to expense for the SERP are included in the table below. The Company anticipates accruing an additional $60 thousand to the SERP for the year ending December 31, 2021.
 
The following table provides a reconciliation of the changes in the supplemental retirement benefit obligation and the net periodic benefit cost for the years ended December 31:
(Dollars in thousands)202020192018
Reconciliation of benefit obligation:   
Benefit obligation at beginning of year$2,064 $2,174 $2,372 
Net periodic benefit cost:
Interest cost61 84 110 
Actuarial loss (gain)74 82 (32)
Net periodic benefit costs$135 $166 $78 
Benefits paid(276)(276)(276)
Benefit obligation at end of year$1,923 $2,064 $2,174 
Funded status:   
Accrued liability as of December 31$(1,923)$(2,064)$(2,174)
Discount rate used for benefit obligation(1)
3.25 %4.00 %4.75 %
__________________________________________
(1)Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss.

 SERP benefits expected to be paid in each of the next five years and in the aggregate five years thereafter: 
(Dollars in thousands) 
2021$276 
2022276 
2023276 
2024276 
2025276 
2026-2030835 


Supplemental Life Insurance
 
The Company has provided supplemental life insurance through split-dollar life insurance arrangements for certain executive and senior officers on whom the Bank owns BOLI. See Item (l), "Bank Owned Life Insurance," in Note 1, "Summary of Significant Accounting Policies," to the Company's consolidated financial statements of this Form 10-K, contained above, for further information regarding BOLI.
 
These arrangements provide a death benefit to the officer's designated beneficiaries that extend to post-retirement periods for some of the supplemental life insurance plans. The Company has recognized a liability for these future post-retirement benefits.

These non-qualified plans represent a direct liability of the Company, and, as such, the Company has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the "accumulated post-retirement benefit obligation," which is the present value of the post-retirement benefits associated with this arrangement.
 
The following table provides a reconciliation of the changes in the post-retirement supplemental life insurance plan obligation and the net periodic benefit cost for the years ended December 31:
(Dollars in thousands)202020192018
Reconciliation of benefit obligation:   
Benefit obligation at beginning of year$2,424$2,084$2,032
Net periodic benefit cost:
Service cost(21)(16)(13)
Interest cost1319594
Actuarial loss (gain)97261(29)
Total net period cost $207$340$52
Benefit obligation at end of year$2,631$2,424$2,084
Funded status:   
Accrued liability as of December 31$(2,631)$(2,424)$(2,084)
Discount rate used for benefit obligation(1)
3.25 %4.00 %4.75 %
__________________________________________
(1)    Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. 

The amounts charged to expense for supplemental life insurance are included in the table above. The Company anticipates accruing an additional $63 thousand to the plan for the year ending December 31, 2021.
 
See also Note 14, "Stock-Based Compensation," to the Company's consolidated financial statements of this Form 10-K, contained below, for further information regarding employee benefits offered in the form of stock options and stock awards.