SOURCE: 1st Enterprise Bank

1st Enterprise Bank

April 18, 2013 18:30 ET

1st Enterprise Bank Announces Net Income of $1 Million for the 1st Quarter of 2013

LOS ANGELES, CA--(Marketwired - Apr 18, 2013) -  1st Enterprise Bank ("the Bank") (OTCBB: FENB), an independent full-service commercial bank serving the Southern California business community, reported net income of $1,017,000 for the quarter ending March 31, 2013. 

Financial Highlights

  • Total Assets grew by 21%, from $579 million at March 31, 2012 to $702 million at March 31, 2013
  • Total Loans outstanding grew by $113 million or 36%, from $312 million at March 31, 2012 to $425 million at March 31, 2013
  • Total Deposits grew by $82 million or 16%, from $520 million at March 31, 2012 to $601 million at March 31, 2013
  • Net interest income of $5.2 million was the highest in the Bank's history and 20% higher than the first quarter of 2012
  • Income before taxes, loan loss provision and gain on sale of securities was $1.98 million for the quarter, a 19% increase over the prior quarter and a 46% increase over the prior year
  • Net Income applicable to common shareholders was $976,000 for the first quarter of 2013, compared to $1,189,000 for the fourth quarter of 2012 and $1,008,000 for the first quarter of 2012
  • Diluted earnings per common share was $.24 for the quarter, compared to $.29 in the fourth quarter of 2012 and $.34 in the first quarter of 2012

"The Bank's financial results for the first quarter demonstrate our continued focus on balancing strong organic growth with quality earnings," said John Black, CEO. "Our record levels of net interest income and 46% growth in earnings before taxes, loan loss provision and gain on sale of securities demonstrate the quality of the Bank's earnings growth." Brian Horton, President added, "we are very pleased to have added a significant number of new clients in the quarter, adding to our diverse base of customer relationships throughout Southern California. The Bank is also excited to announce the opening of its fourth office on March 1st, located in the Warner Center area of Woodland Hills."

For the three months ended March 31, 2013, net interest income before provision was $5.2 million, an increase of 20% compared to the first quarter of 2012 and an increase of 2% compared to the fourth quarter of 2012. The year-over-year growth in net interest income was the result of growth in earning assets offsetting a decline in net interest margin. Earning assets were $653 million in the first quarter of 2013, a 26% or $136 million increase over the prior year. The net interest margin was 3.23% during the first quarter of 2013, compared to 3.37% for the prior year. The decrease in net interest margin was the result of declining loan and investment yields due to the continuation of the current low rate environment. The growth in net interest income over the prior quarter was the result of an increase in the net interest margin from 3.13% to 3.23%. This increase resulted from the yield on earning assets increasing by 0.10% from the prior quarter as loan balances grew from 60% of earning assets to 63%, while balances at the Federal Reserve declined from 5% to 1% of earning assets. The provision for loan loss was $542,000 for the first quarter of 2013, a $532,000 increase year over year and a $29,000 sequential increase. Net loan charge-offs during the first quarter of 2013 totaled $349,000, compared to zero charge-offs in the prior year and net charge-offs of $598,000 in the prior quarter. The remaining balance of a non-accrual loan at December 31, 2012 was charged-off during the current quarter resulting in no non-accrual loans at March 31, 2013.

Non-interest income, excluding gain on sale, was $749,000 for the quarter, which was a 7% increase year over year and a 2% sequential increase. Growth in non-interest income was generally due to increased deposit related fees. There was no gain on sale of securities during the first quarter of 2013. The first quarter and the fourth quarter of 2012 included gain on sale of securities totaling $135,000 and $629,000, respectively.

Non-interest expense increased by $289,000 or 8% over the prior year and decreased by $208,000 or 5% over the prior quarter. 

About 1st Enterprise Bank
Founded in 2006, 1st Enterprise Bank is a full service independent 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. Headquartered in the Los Angeles financial district, with full service regional banking offices in Irvine and Ontario and an LPO in Woodland Hills, 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 a dedicated Relationship Manager, a seasoned professional who understands their unique challenges serving as a sounding board and an active participant in their client's 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 Financial Condition  
$000            
    Unaudited     Audited     Unaudited  
Assets   3/31/2013     12/31/2012     3/31/2012  
  Cash and due from banks   $ 16,393     $ 14,520       30,271  
  Interest earning deposits in other banks     14,560       23,386       10,163  
    Total cash and cash equivalents     30,953       37,906       40,434  
                         
  Certificates of deposit in other banks     2,490       2,490       4,083  
  Investment securities - available-for-sale     164,580       180,491       146,980  
  Investment securities - held-to-maturity     55,753       56,026       57,412  
  Loans, net of deferred loan fees     425,009       408,767       312,308  
  Allowance for loan losses     (5,703 )     (5,510 )     (4,610 )
  Loans, net of allowance for loan losses     419,306       403,257       307,698  
  Bank owned life insurance     16,017       13,389       10,553  
  Premises and equipment, net     2,700       2,256       2,341  
  Accrued interest receivable and other assets     9,985       10,323       9,460  
    Total Assets   $ 701,784     $ 706,138     $ 578,961  
                         
Liabilities                        
  Non-interest-bearing demand deposits   $ 268,584     $ 286,800     $ 214,130  
  Interest bearing transaction accounts     35,250       39,428       34,760  
  Money market and savings accounts     278,610       274,088       248,421  
  Time deposits     18,996       11,784       22,293  
    Total Deposits     601,440       612,100       519,604  
  Federal Home Loan Bank Borrowings     30,500       24,000       5,000  
  Other liabilities     3,484       4,647       3,222  
    Total Liabilities     635,424       640,747       527,826  
                         
Shareholders' Equity                        
  Serial Preferred Stock     16,380       16,380       16,380  
  Common Stock     43,048       43,034       31,008  
  Retained Earnings     5,918       4,942       2,382  
  Accumulated other comprehensive income     1,014       1,035       1,365  
    Total Shareholders' Equity     66,360       65,391       51,135  
                         
Total Liabilities and Shareholders' Equity   $ 701,784     $ 706,138     $ 578,961  
                         
                   
1st Enterprise Bank                  
Condensed Statements of Operations   Three Months Ended  
$000   Unaudited  
    3/31/2013     12/31/2012     3/31/2012  
Interest Income                        
  Interest and fees on loans   $ 4,428     $ 4,291     $ 3,430  
  Interest on investment securities     952       963       1,091  
  Other interest income     10       23       11  
    Total interest income     5,390       5,277       4,532  
Interest Expense     192       174       195  
Net Interest Income     5,198       5,103       4,337  
                         
Provision for loan losses     542       513       10  
                         
Net Interest Income After Provision for Loan Losses     4,656       4,590       4,327  
                         
Non-interest Income                        
Service charges, fees and other income     749       733       698  
Gain on sale of investment sercurities     0       629       135  
    Total non-interest Income     749       1,362       833  
                         
Non-interest Expenses                        
  Compensation and benefit expenses     2,431       2,543       2,216  
  Occupancy and equipment expenses     374       364       359  
  Data processing     256       268       215  
  Professional and legal     328       318       361  
  Other operating expenses     575       679       524  
    Total non-interest expense     3,964       4,172       3,675  
                         
Income Before Income Taxes     1,442       1,781       1,485  
                         
Provision for income taxes     425       550       436  
                         
Net Income   $ 1,017     $ 1,230     $ 1,049  
                         
Preferred dividends & Warrant amortization     41       41       41  
                         
Net Income Applicable to Common Shareholders   $ 976     $ 1,189     $ 1,008  
                         
Earnings Per Share                        
Basic earnings per share   $ 0.26     $ 0.31     $ 0.36  
                         
Diluted earnings per share   $ 0.24     $ 0.29     $ 0.34  
                         
Average shares outstanding     3,793,150       3,791,905       2,818,500  
                         
Average fully diluted shares     4,062,894       4,039,003       2,942,105  
                         
Total Shares outstanding at end of period     3,815,089       3,815,089       2,851,500  
                         
Capital Ratios                        
Tier 1 leverage ratio     9.4 %     9.4 %     8.9 %
                         
Tier 1 risk-based capital ratio     11.9 %     12.1 %     11.3 %
                         
Total risk-based capital ratio     13.0 %     13.2 %     12.4 %
                         
Book value per share   $ 13.10     $ 12.85     $ 12.19  
                         
Performance Ratios                        
Return on average assets     0.59 %     0.71 %     0.75 %
                         
Return on average common equity     7.95 %     9.56 %     11.76 %
                         
Net interest margin     3.23 %     3.13 %     3.37 %
                         
Cost of Funds     0.12 %     0.11 %     0.15 %
                         
Efficiency ratio     66.70 %     70.16 %     71.09 %
                         
Average Balances                        
Total Assets   $ 695,576     $ 689,361     $ 561,010  
                         
Earning Assets     653,274       648,523       517,307  
                         
Total Loans     415,003       389,321       301,047  
                         
Total Securities     230,343       222,696       214,164  
                         
Total Deposits     606,208       617,678       501,504  
                         
Common Equity     49,812       49,473       34,463  
                         

Contact Information

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