SOURCE: 1st Enterprise Bank

1st Enterprise Bank

January 22, 2010 17:45 ET

1st Enterprise Bank Reports Record Quarterly and Annual Earnings

LOS ANGELES, CA--(Marketwire - January 22, 2010) - 1st Enterprise Bank (OTCBB: FENB)

--  Net Income for 2009 of $2 million
--  4th Quarter Net Income of $921,000
--  Total Assets Reach $384 Million
--  Total Asset Growth Exceeds $140 million over Prior Year
--  Total Deposits Increase 57% 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 fourth quarter net income of $921,000, and $2,014,000 for the full year 2009. "The Bank continued to experience strong organic growth from both existing and new customers, which contributed to our record earnings for both the fourth quarter and full year," said John C. Black, CEO. "In this very difficult economic climate, the Bank grew its assets by more than $140 million, while continuing to maintain strong capital ratios and excellent asset quality," added Mr. Black. "The Bank did not incur any loan charge-offs during the fourth quarter or during all of 2009."

Total assets at December 31, 2009 were $384 million, an increase of 57% or $140 million compared to December 31, 2008. Net loans increased by $37 million or 30% and deposits rose by $124 million or 57% over the prior year. 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 17%.

The Bank reported net income (unaudited) of $921,000 for the fourth quarter of 2009, compared to $605,000 in the prior quarter and a loss of $77,000 in the fourth quarter of 2008. On a pretax basis, earnings grew by $351,000 over the prior quarter and by $1,061,000 over the fourth quarter of 2008. As the Bank's earnings are sufficient to support the recognition of its deferred tax assets, a tax benefit was realized in recent quarters as the valuation allowance on deferred tax assets was eliminated during 2009.

Fourth quarter net income applicable to common shareholders was $850,000, or earnings per diluted share of $0.29, compared to $534,000, or $0.18 per share in the third quarter of 2009. Net income applicable to common shareholders for the full year 2009 totaled $1,791,000 or $0.61 per share, compared to a net loss applicable to common shareholders of $379,000 or $0.14 per share for 2008.

Net interest income after provision for loan losses was $3.1 million for the quarter, a 13% increase over the prior quarter and a 70% increase over the prior year. For the full year 2009, net interest income totaled $10.8 million, a $3.6 million or 51% increase from 2008.

In December of 2009, the Bank issued $6 million of additional preferred stock to the U.S. Treasury under the Capital Purchase Program. This was in addition to the $4.4 million issued in February of 2009. The preferred shares were issued at a 5% dividend for the next five years. This additional capital will allow the Bank to continue its organic growth trajectory and maintain its high level of capitalization.

"We are extremely pleased with these results, both in terms of growth and operating performance," said Mr. Black. "In these turbulent times we are very grateful to be providing a 'safe harbor' environment for our customers, employees and shareholders."

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               Unaudited       Audited
                       Three Months Ended            Twelve Months Ended
               ----------------------------------  -----------------------
Interest
 Income        12/31/2009  9/30/2009   12/31/2008  12/31/2009   12/31/2008
               ----------  ----------  ----------  -----------  ----------
    Total
     Interest
     Income    $3,737,539  $3,225,429  $2,425,387  $12,483,057  $9,175,377
    Total
     Interest
     Expense      291,291     241,573     294,026      960,271   1,359,649
               ----------  ----------  ----------  -----------  ----------
Net Interest
 Income         3,446,248   2,983,856   2,131,361   11,522,786   7,815,728

  Provision for
   Loan Losses    331,433     229,536     301,900      720,469     646,400
               ----------  ----------  ----------  -----------  ----------
Net Interest
 Income After
 Provision for
 Loan Losses    3,114,815   2,754,320   1,829,461   10,802,317   7,169,328

Noninterest
 Income           315,337     154,852     229,600      886,976     592,259

Noninterest
 Expense
  Salaries and
   Employee
   Benefits     1,501,652   1,451,405   1,194,224    5,577,583   4,133,786
  Stock-Based
   Compensation    53,418      49,424     101,735      525,445     848,738
  Occupancy and
   Equipment
   Expenses       274,519     257,326     234,428    1,019,880     916,644
  Other
   Expenses       866,460     767,567     855,615    3,163,468   2,490,308
               ----------  ----------  ----------  -----------  ----------
    Total
     Noninterest
     Expense    2,696,049   2,525,722   2,386,002   10,286,376   8,389,476

Income (Loss)
 Before Income
 Taxes            734,103     383,450    (326,941)   1,402,917    (627,889)
               ----------  ----------  ----------  -----------  ----------
  Provision
   (benefit)
   for Income
   Taxes         (186,875)   (221,876)   (250,000)    (611,104)   (249,200)
               ----------  ----------  ----------  -----------  ----------
Net Income
 (Loss)        $  920,978  $  605,326  $  (76,941) $ 2,014,021  $ (378,689)
               ==========  ==========  ==========  ===========  ==========

Preferred
 Dividends         70,950      70,950           -      223,349           -
               ----------  ----------  ----------  -----------  ----------

Net Income
 (Loss)
 Applicable to
 Common
 Shareholders  $  850,028  $  534,376  $  (76,941) $ 1,790,672  $ (378,689)
               ==========  ==========  ==========  ===========  ==========




1st Enterprise Bank
Condensed Statements of Financial Condition

                                 Unaudited      Unaudited       Audited
                               -------------  -------------  -------------
Assets                           12/31/2009     9/30/2009      12/31/2008
                               -------------  -------------  -------------
  Total Cash and Cash
   Equivalents                 $   7,591,889  $  40,421,521  $  11,268,496
  Interest-Bearing Deposits in
   Banks                           9,945,000      5,731,000     14,950,897
  Investment Securities -
   Available-for-Sale            199,308,436    177,070,235     89,968,286
  Loans, Net of Deferred Loan
   Fees                          161,605,054    138,108,422    123,712,987
  Allowance for Loan Losses       (2,255,869)    (1,924,436)    (1,535,400)
                               -------------  -------------  -------------
  Loans, Net of Allowance for
   Loan Losses                   159,349,185    136,183,986    122,177,587
  Premises and Equipment, net      2,399,263      2,439,042      2,437,971
  Accrued Interest Receivable
   and Other Assets                5,231,847      3,903,964      2,850,071
                               -------------  -------------  -------------
    Total Assets               $ 383,825,620  $ 365,749,748  $ 243,653,308
                               =============  =============  =============
Liabilities and Shareholders'
 Equity
  Noninterest-Bearing Demand
   Deposits                    $ 138,808,042  $ 131,882,112  $  82,067,727
  Money Market, NOW & Savings
   Deposits                      190,426,080    191,018,448    129,332,334
  Time Deposits under $100,000       835,468        782,068        631,637
  Time Deposits $100,000 and
   over                            8,819,759      5,961,590      3,174,802
                               -------------  -------------  -------------
    Total Deposits               338,889,349    329,644,218    215,206,500
  Other Borrowings                 3,000,000              -              -
  Other Liabilities                2,079,860      3,000,311      1,131,495
                               -------------  -------------  -------------
    Total Liabilities            343,969,209    332,644,529    216,337,995

Shareholders' Equity              39,856,411     33,105,219     27,315,313
                               -------------  -------------  -------------
Total Liabilities and
 Shareholders' Equity          $ 383,825,620  $ 365,749,748  $ 243,653,308
                               -------------  -------------  -------------

Contact Information

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