Lowell-based Enterprise Bancorp, parent of Enterprise Bank, reported net income of $5.5 million for 2008, compared to $9.9 million in 2007, a 44.4 percent drop.

Net income for the fourth quarter was $29,000, compared to $2.7 million for the same period in 2007, a whopping 98.9 percent decrease.

The decline in earnings from the prior period included "the impact of a charge on certain equity investments in the investment portfolio which reflect declines in the equity markets, significant increases in expenses associated with accelerated expansion and growth initiatives, and an increase in FDIC insurance premiums incurred by all banking institutions," the company said.

Expenses related to expansion and growth initiatives include the opening of two branches, loan growth, and increased marketing and advertising expenses. While these factors adversely affect earnings in the short-term, the company said this is an opportune time to incur such expenses and invest in long-term growth.