SOURCE: 1st Enterprise Bank

1st Enterprise Bank

April 20, 2010 14:32 ET

1st Enterprise Bank Grows to $400 Million in Assets

LOS ANGELES, CA--(Marketwire - April 20, 2010) - 1st Enterprise Bank ("the Bank") (OTCBB: FENB)

--  Total Assets Reach $404 Million
--  1st Quarter Pre-tax Income grows by $694,000 over Prior Year
--  1st Quarter Net Income of $467,000
--  Total Assets grow by 54% from the Prior Year

1st Enterprise Bank ("the Bank") (OTCBB: FENB), a full-service commercial bank serving businesses and their owners throughout Southern California, today reported first quarter net income of $467,000, an increase of $356,000 or 321% over the first quarter of 2009. "The Bank reached a great milestone at the end of the first quarter by exceeding $400 million in assets before the Bank is even four years old," said John C. Black, CEO. "The Bank continued to add quality customer relationships, growing its assets by more than $140 million from the prior year and by $20 million from the end of the prior quarter," added Mr. Black. "The Bank has grown its loan portfolio by more than 30% over the last year, while continuing its outstanding asset quality."

Total assets at March 31, 2010 were $404 million, an increase of 54% or $142 million compared to March 31, 2009 and an increase of 5% or $20 million compared to December 31, 2009. Deposits increased by $129 million or 57% over the prior year and by $17 million or 5% over the prior quarter. The Bank continues to maintain strong capital ratios, with a Tier 1 leverage capital ratio of 10% and a total risk based capital ratio of 16.5%.

The Bank reported net income (unaudited) of $467,000 for the first quarter of 2010, compared to $111,000 in the prior year and $921,000 in the prior quarter. As a valuation allowance on deferred tax assets was eliminated during 2009, the Bank recorded a net tax benefit in the fourth quarter of 2009 in the amount of $187,000. On a pretax basis, earnings grew by $694,000 over the prior year and by $60,000 from the prior quarter.

Net income applicable to common shareholders for the quarter ending March 31, 2010 was $343,000 and basic and diluted earnings per share were both $0.12. This compares to basic and diluted earnings per share of $0.04 in the prior year.

The Bank continues to experience excellent asset quality, as the Bank had no loan charge-offs or any "other-than-temporary impairments" of its assets.

"We are very pleased with our continued growth and operating performance," said Mr. Black. "As the economy stabilizes and improves over the coming years our customers' businesses will do the same and we will all benefit as a result. Our sound financial condition positions us to take advantage of market opportunities and continue our strong organic growth."

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 nonprofit organizations, along with their owners and key managers. Founded in 2006 and headquartered in the Los Angeles financial district with full service regional banking offices in Irvine and Ontario, 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 Relationship Manager, 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.

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.

                           1st Enterprise Bank
                    Condensed Statements of Operations


                                                   Unaudited
                                               Three Months Ended
                                     --------------------------------------
Interest Income                       3/31/2010   12/31/2009    3/31/2009
                                     ------------ -----------  -----------
  Total interest income              $  3,666,932 $ 3,737,539  $ 2,598,919
  Total interest expense                  270,641     291,291      202,980
                                     ------------ -----------  -----------
Net Interest Income                     3,396,291   3,446,248    2,395,939

Provision for loan losses                  57,244     331,433       31,500
                                     ------------ -----------  -----------
Net Interest Income After Provision
 for Loan Losses                        3,339,047   3,114,815    2,364,439

Non-interest Income                       193,639     315,337      139,315

Non-interest Expenses
 Salaries and employee benefits         1,546,546   1,501,652    1,300,174
 Stock-based compensation                  45,379      53,418      210,556
 Occupancy and equipment expenses         272,905     274,519      244,679
 Other expenses                           873,346     866,460      648,095
                                     ------------ -----------  -----------
  Total non-interest expense            2,738,176   2,696,049    2,403,504
Income Before Income Taxes                794,510     734,103      100,250
                                     ------------ -----------  -----------
Provision (benefit) for income taxes      327,692    (186,875)     (10,691)
                                     ------------ -----------  -----------
Net Income                           $    466,818 $   920,978  $   110,941
                                     ============ ===========  ===========
Preferred dividends                       124,283      70,950       10,499
                                     ------------ -----------  -----------
Net Income Applicable to Common
 Shareholders                        $    342,535 $   850,028  $   100,442
                                     ============ ===========  ===========





                            1st Enterprise Bank
                Condensed Statements of Financial Condition


                                 Unaudited       Audited       Unaudited
                               -------------  -------------  -------------
Assets                           3/31/2010      12/31/2009     3/31/2009
                               -------------  -------------  -------------
 Total cash and cash
  equivalents                  $  12,533,795  $   7,591,889  $  12,008,396
  Interest-bearing deposits in
   banks                          23,591,468      9,945,000      4,950,897
 Investment securities -
  available-for-sale             183,457,513    199,308,436    114,850,442
 Investment securities -
  held-to-maturity                13,856,121              -              -
 Loans, net of deferred loan
  fees                           165,750,369    161,605,054    126,248,896
 Allowance for loan losses        (2,313,113)    (2,255,869)    (1,566,900)
                               -------------  -------------  -------------
 Loans, net of allowance for
  loan losses                    163,437,256    159,349,185    124,681,996
 Premises and equipment, net       2,363,971      2,399,263      2,382,970
 Accrued interest receivable
  and other assets                 4,853,582      5,231,847      2,777,310
                               -------------  -------------  -------------
  Total Assets                 $ 404,093,706  $ 383,825,620  $ 261,652,011
                               =============  =============  =============

Liabilities and Shareholders'
 Equity
 Noninterest-bearing demand
  deposits                     $ 153,682,690  $ 138,808,042  $  97,077,031
 Money market accounts,
  savings and NOW deposits       193,636,803    190,426,080    125,976,804
 Time deposits under $100,000        774,937        835,468        716,600
 Time deposits $100,000 and
  over                             7,434,234      8,819,759      2,762,703
                               -------------  -------------  -------------
  Total Deposits                 355,528,664    338,889,349    226,533,138

 Federal Home Loan Bank
  borrowings                               -      3,000,000              -
 Other liabilities                 7,543,024      2,079,860      2,972,451
                               -------------  -------------  -------------
  Total Liabilities              363,071,688    343,969,209    229,505,589

Shareholders' Equity              41,022,018     39,856,411     32,146,422
                               -------------  -------------  -------------
Total Liabilities and
 Shareholders' Equity          $ 404,093,706  $ 383,825,620  $ 261,652,011
                               =============  =============  =============

Contact Information

  • Contact:
    John C. Black
    CEO
    213-430-7000