SOURCE: 1st Enterprise Bank

October 12, 2007 20:32 ET

1st Enterprise Bank Continues Strong Loan and Core Deposit Growth for the Quarter Ended September 30, 2007

LOS ANGELES, CA--(Marketwire - October 12, 2007) - 1st Enterprise Bank (the Bank) (OTCBB: FENB) today announced results for the 3rd quarter of 2007 ended September 30, 2007.

1st Enterprise Bank, which opened for business on July 3, 2006, continued to experience strong growth in its loans and core deposits during the 3rd quarter of 2007. At September 30, 2007 total assets had grown to $167.5 million, an increase of $16.5 million, or 10.9%, over June 30, 2007. Net loans were up from the prior quarter by $15.5 million, or 38.3%, to $56.0 million. The Bank's investments were $86.0 million, an increase of $43.5 million, or 102.4% over the June 30, 2007 level. Total deposits stood at $141.6 million, an increase of $16.6 million, or 13.2% over June 30, 2007. Non-interest bearing demand deposits increased $5.0 million, or 12.5%, to $45.4 million. Interest bearing deposits increased $11.8 million, or 14.0%, to $96.2 million over the level at June 30, 2007. Shareholders' equity stood at $24.7 million at September 30, 2007. The net loss for the 3rd quarter of 2007 was $372 thousand, $104 thousand, or 24%, less than the 2nd quarter loss. The 3rd quarter net loss included $183 thousand of stock-based compensation expense, and $188 thousand in additions to the loan loss and off-balance sheet exposure reserves.

"We are very excited about the strong growth in loans, core deposits, and total assets, as well as the level of reduced losses, during the third quarter of 2007," said John C. Black, CEO of 1st Enterprise Bank. "It demonstrates that we are fulfilling the business market's need for a full service, locally owned and managed commercial business bank like ours. Our highly experienced and capable staff at 1st Enterprise Bank provides outstanding service to our clientele and takes a personal interest in the success of their businesses. The results during the third quarter provide strong validation of our business model and our understanding of our market niche."

About 1st Enterprise Bank: 1st Enterprise Bank is a full service commercial banking institution, whose highly experienced bankers personally serve Southern California entrepreneurial businesses, professional firms and non profit organizations, along with their owners and key managers. Headquartered in the Los Angeles financial district and founded in 2006, 1st Enterprise Bank offers a full range of credit and depository services, with special emphasis on superior customer service, sophisticated cash management services and direct access to bank decision makers. Customers work directly with their 1st Enterprise Relationship Banker, who understands the unique challenges of their industry and serves as a sounding board and an active participant in their success. For more information on 1st Enterprise Bank, please visit www.1stenterprisebank.com.

                            1st Enterprise Bank
                Condensed Statement of Financial Condition
                        000's Omitted - (Unaudited)


                        -----------  -----------  -----------  -----------
Assets                   9/30/2007    6/30/2007   12/31/2006    9/30/2006
                        -----------  -----------  -----------  -----------
 Cash & Due From Banks  $     9,278  $     8,098  $     4,562  $     2,868
 Federal Funds Sold          13,035       57,195       62,685       29,960
 Investment Securities       85,958       42,468       23,867       13,814
 Loans (Net)                 56,012       40,495       21,259       11,448
 Premises and
  Equipment, Net              1,857        1,864        1,815        1,825
 Other Assets                 1,396          930          294          194
                        -----------  -----------  -----------  -----------
  Total Assets          $   167,536  $   151,050  $   114,482  $    60,109
                        ===========  ===========  ===========  ===========
Liabilities
 Demand Deposits        $    45,353  $    40,604  $    29,180  $    10,646
 Money Market, NOW &
  Savings                    93,993       80,193       48,744       22,732
 Time Deposits                2,209        4,204          243          111
                        -----------  -----------  -----------  -----------
  Total Deposits            141,555      125,001       78,167       33,489
 Other Liabilities            1,247        1,130       10,856          716
                        -----------  -----------  -----------  -----------
  Total Liabilities         142,802      126,131       89,023       34,204

Shareholders' Equity    $    24,734  $    24,919  $    25,459  $    25,905
                        -----------  -----------  -----------  -----------
Total Liabilities &
Shareholders' Equity    $   167,536  $   151,050  $   114,482  $    60,109
                        ===========  ===========  ===========  ===========


                            1st Enterprise Bank
                      Condensed Statement of Operations
                         000's Omitted - (Unaudited)


                           Three Months Ended        Nine Months Ended
                        ------------------------  ------------------------
Interest Income           9/30/2007  9/30/2006 *    9/30/2007  9/30/2006 *
                        -----------  -----------  -----------  -----------
 Federal Funds Sold     $       504  $       412  $     1,958  $       412
 Investment Securities          810           47        1,646           47
 Loans                          831           70        1,892           70
 Preopening Interest
  Income                                     181                       181
                        -----------  -----------  -----------  -----------
  Total Interest Income $     2,145  $       711  $     5,497  $       711

Interest Expense
 Money Market, NOW &
  Savings                       665           78        1,593           78
 Time Deposits                   33            1           76            1
                        -----------  -----------  -----------  -----------
  Total Interest
   Expense                      698           78        1,669           78
                        -----------  -----------  -----------  -----------
Net Interest Income     $     1,447  $       632  $     3,828  $       632

 Provision for Loan
  Losses                        157          145          406          145
                        -----------  -----------  -----------  -----------
Net Interest Income
 After Loan Loss
 Provision              $     1,290  $       487  $     3,422  $       487

Noninterest Income      $        37  $         1  $        75  $         1
Noninterest Expense
 Salaries and Benefits          909          651        2,586          651
 Stock-Based
  Compensation                  183          215          542          215
 Premises and Fixed
  Assets                        155          122          448          122
 Other Noninterest
  Expense                       452          332        1,202          332
 Preopening Expenses              0          787            0          787
                        -----------  -----------  -----------  -----------
  Total Noninterest
   Expense              $     1,699  $     2,107  $     4,778  $     2,107

Net Loss Before Taxes   $      (372) $    (1,619) $    (1,281) $    (1,619)

 Taxes                            0            0            1            0
                        -----------  -----------  -----------  -----------
Net Loss                $      (372) $    (1,619) $    (1,282) $    (1,619)
                        ===========  ===========  ===========  ===========



* The Three and Nine month numbers reflect preopening income and expenses
 as well as the results from July 3, 2006 (opening date) to September 30,
 2006.

Forward-Looking Statement:

This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about 1st Enterprise Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: 1st Enterprise Bank's timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in 1st Enterprise Bank's reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and 1st Enterprise Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

Contact Information

  • Contact:
    Reginald Prout
    CFO
    213-430-7040

    John Black
    CEO
    213-430-7070