Employee Benefit Plans

12 Months Ended

Dec. 31, 2024

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. During the years ended December 31, 2024, 2023 and 2022 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. 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 distributed 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 $2.2 million, $2.1 million and $1.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Additionally, the Company maintains 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 $149 thousand and $315 thousand for the years ended December 31, 2024 and 2023, respectively.

Supplemental Employee Retirement Plan

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 $49 thousand to the SERP for the year ending December 31, 2025.

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)	2024			2023			2022
Reconciliation of benefit obligation:
Benefit obligation at beginning of year	$	1,192		$	1,420		$	1,708
Net periodic benefit cost:
Interest cost	61			69			74
Actuarial gain	(7)			(21)			(86)
Net periodic benefit costs	$	54		$	48		$	(12)
Benefits paid	(276)			(276)			(276)
Benefit obligation at end of year	$	970		$	1,192		$	1,420
Funded status:
Accrued liability as of December 31	$	(970)		$	(1,192)		$	(1,420)
Discount rate used for benefit obligation(1)	5.50		%	5.25		%	4.75		%

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(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)	Payments
2025	$	276
2026	276
2027	276
2028	165
2029	95
2030-2034	24

Supplemental Life Insurance

The Company has provided supplemental life insurance benefits to certain executive and senior officers through split-dollar life insurance and a death benefit only plan. 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.

The split-dollar arrangements provide a death benefit to the officer's designated beneficiaries that extend to post-retirement periods and the Company has recognized a liability for post-retirement cost of insurance related to these plans. The employee benefit related to the death benefit only plans terminates when the employee is no longer employed by the Company.

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 of the split dollar plan represents the "accumulated post-retirement benefit obligation," which is the present value of the post-retirement cost of insurance 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)	2024			2023			2022
Reconciliation of benefit obligation:
Benefit obligation at beginning of year	$	2,277		$	2,358		$	2,620
Net periodic benefit cost:
Service cost	(32)			(29)			(26)
Interest cost	124			115			105
Actuarial gain	(25)			(167)			(341)
Total net period cost	$	67		$	(81)		$	(262)
Benefit obligation at end of year	$	2,344		$	2,277		$	2,358
Funded status:
Accrued liability as of December 31	$	(2,344)		$	(2,277)		$	(2,358)
Discount rate used for benefit obligation(1)	5.50		%	5.25		%	4.75		%

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(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 a credit of approximately $34 thousand to the plan for the year ending December 31, 2025.