SOURCE: 1st Enterprise Bank

1st Enterprise Bank

October 18, 2012 09:00 ET

1st Enterprise Bank Announces Record Loan Growth

LOS ANGELES, CA--(Marketwire - Oct 18, 2012) - 1st Enterprise Bank ("the Bank") (OTCBB: FENB), an independent full-service commercial bank serving the Southern California business community, reported growth in loans of $126 million, growth in deposits of $91 million and growth in total assets of $99 million over the prior year. Net income was $649,000 and income available to common shareholders was $608,000 for the quarter ended September 30, 2012. 

Financial Highlights

  • Total Assets grew by 18%, from $563 million at September 30, 2011 to $662 million at September 30, 2012
  • Total Loans outstanding grew by $126 million or 50%, from $255 million at September 30, 2011 to $381 million at September 30, 2012
  • Total Deposits grew by $91 million or 18%, from $501 million at September 30, 2011 to $592 million at September 30, 2012
  • Net interest income of $4.8 million was highest in the Bank's history and 28% higher than the third quarter of 2011
  • Net interest margin grew to 3.08% from 2.96% in the third quarter of 2011, while the loan-to-deposit ratio increased from 51% to 64%
  • The Bank continued to have no charged-off or past due loans, or any non-performing assets
  • The Bank continues to be well capitalized with a Tier 1 Leverage Ratio of 9.6% and a Total Risk Based Capital Ratio of 13.3% -- tangible book value per share was $12.76 at quarter end
  • Net Income applicable to common shareholders was $608,000 for the third quarter of 2012, compared to $442,000 for the third quarter of 2011
  • Diluted earnings per common share were $.15 for the quarter, no change from the third quarter of 2011

"We are very pleased with 1st Enterprise Bank's continued strong level of organic growth resulting in record levels of loans, deposits and net interest income," said John Black, CEO. "This growth positions the Bank very well heading into the remainder of 2012, and provides tremendous momentum as we approach the start of 2013." Brian Horton, President, added, "We made some key hires during the third quarter, adding new relationship managers throughout the Bank. These hires, along with continued recruitment of talented bankers, will be a growth driver in the future."

For the three months ended September 30, 2012, net interest income before provision was $4.8 million, an increase of more than $1 million or 28% compared to the third quarter of 2011 and an increase of more than $175,000 or 4% compared to the second quarter of 2012. The year-over-year growth in net interest income was the result of both growth in earning assets and an increase in net interest margin. Earning assets were $621 million in the third quarter of 2012, a 24% or $118 million increase over the prior year. The net interest margin was 3.08% during the third quarter of 2012, compared to 2.96% for the prior year. The increase in net interest margin was mostly the result of a lower cost of funds, which declined from .21% in the prior year to.12% for the third quarter of 2012. Transaction account balances grew by $61 million from the prior year and non-interest bearing deposits comprised 46% of average total deposits in the third quarter. The sequential growth in net interest income was the net result of growth in earning assets of $71 million and a decline in net interest margin from 3.38% to 3.08%. The yield on earning assets declined by .30% from the prior quarter as the Bank maintained more than twice the level of funds at the Federal Reserve, while the yield on investment securities declined by .33%. During the third quarter a provision for loan losses, associated with the significant growth in loans during the quarter, was recorded in the amount of $745,000, as compared to $35,000 in the third quarter of 2011 and $240,000 in the second quarter of 2012. The Bank had no loan charge-offs during the quarter and has no non-accrual loans. 

Non-interest income for the quarter increased by $261,000 or 38% from the prior year and increased by $48,000 or 5% from the prior quarter. Growth in non-interest income was attributable to growth in both loan related and deposit related fees. The third quarter of 2012 included gains on sale of securities totaling $18,000, compared to $116,000 in the prior quarter and $190,000 in the prior year.

Non-interest expense increased by $854,000 or 26% over the prior year and decreased by $63,000 or 2% 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, 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  
Assets   9/30/2012     6/30/2012     9/30/2011  
  Cash and due from banks   $ 21,058     $ 17,731       24,670  
  Interest earning deposits in other banks     15,357       37,465       17,321  
    Total cash and cash equivalents     36,415       55,196       41,991  
                         
  Certificates of deposit in other banks     498       498       6,866  
  Investment securities - available-for-sale     167,518       144,605       193,057  
  Investment securities - held-to-maturity     56,114       57,067       49,196  
  Loans, net of deferred loan fees     381,307       340,929       255,028  
  Allowance for loan losses     (5,595 )     (4,850 )     (4,035 )
  Loans, net of allowance for loan losses     375,712       336,079       250,993  
  Bank owned life insurance     13,276       13,161       10,372  
  Premises and equipment, net     2,274       2,407       2,527  
  Accrued interest receivable and other assets     10,022       10,063       8,138  
    Total Assets   $ 661,829     $ 619,076     $ 563,140  
                         
Liabilities                        
  Non-interest-bearing demand deposits   $ 273,197     $ 258,114     $ 226,851  
  Interest bearing transaction accounts     43,884       37,541       29,666  
  Money market and savings accounts     264,056       233,736       232,131  
  Time deposits     10,739       21,565       12,695  
    Total Deposits     591,876       550,956       501,343  
  Other liabilities     4,913       4,085       12,190  
    Total Liabilities     596,789       555,041       513,533  
                         
Shareholders' Equity                        
  Serial Preferred Stock     16,380       16,380       16,400  
  Common Stock     43,008       42,982       28,910  
  Retained Earnings     3,752       3,144       2,458  
  Accumulated other comprehensive income     1,900       1,529       1,839  
    Total Shareholders' Equity     65,040       64,035       49,607  
                         
Total Liabilities and Shareholders' Equity   $ 661,829     $ 619,076     $ 563,140  
                         
                         
   
1st Enterprise Bank  
Condensed Statements of Operations  
$000  
    Three Months Ended  
    Unaudited  
    9/30/2012     6/30/2012     9/30/2011  
Interest Income                        
  Interest and fees on loans   $ 3,957     $ 3,677     $ 2,970  
  Interest on investment securities     987       1,109       1,027  
  Other interest income     35       12       15  
    Total interest income     4,979       4,798       4,012  
Interest Expense     179       175       260  
Net Interest Income     4,800       4,623       3,752  
                         
Provision for loan losses     745       240       35  
                         
Net Interest Income After Provision for Loan Losses     4,055       4,383       3,717  
                         
Non-interest Income                        
Service charges, fees and other income     927       781       494  
Gain on sale of investment sercurities     18       116       190  
    Total non-interest Income     945       897       684  
                         
Non-interest Expenses                        
  Compensation and benefit expenses     2,341       2,562       1,910  
  Occupancy and equipment expenses     359       361       357  
  Data processing     278       247       207  
  Professional and legal     250       240       198  
  Other operating expenses     850       731       552  
    Total non-interest expense     4,078       4,141       3,224  
                         
Income Before Income Taxes     922       1,139       1,177  
                         
Provision for income taxes     273       335       413  
                         
Net Income   $ 649     $ 804     $ 764  
                         
Preferred dividends & Warrant amortization     41       41       322  
                         
Net Income Applicable to Common Shareholders   $ 608     $ 763     $ 442  
                         
Earnings Per Share                        
Basic earnings per share   $ 0.16     $ 0.23     $ 0.16  
                         
Diluted earnings per share   $ 0.15     $ 0.22     $ 0.15  
                         
Average shares outstanding     3,790,359       3,315,021       2,818,500  
                         
Average fully diluted shares     4,002,939       3,505,846       2,955,842  
                         
Total Shares outstanding at end of period     3,814,539       3,805,039       2,838,500  
                         
Capital Ratios                        
Tier 1 leverage ratio     9.6 %     10.6 %     8.7 %
                         
Tier 1 risk-based capital ratio     12.1 %     13.4 %     13.0 %
                         
Total risk-based capital ratio     13.3 %     14.5 %     14.2 %
                         
Book value per share   $ 12.76     $ 12.52     $ 11.70  
                         
Performance Ratios                        
Return on average assets     0.39 %     0.54 %     0.55 %
                         
Return on average common equity     4.97 %     7.29 %     5.28 %
                         
Net interest margin     3.08 %     3.38 %     2.96 %
                         
Efficiency ratio     72.37 %     73.12 %     71.79 %
                         
Average Balances                        
Total Assets   $ 660,792     $ 593,877     $ 551,467  
                         
Earning Assets     620,656       550,050       502,389  
                         
Total Loans     356,425       325,867       249,359  
                         
Total Securities     210,271       200,677       225,621  
                         
Total Deposits     591,691       531,125       500,792  
                         
Common Equity     48,692       42,078       33,182  
                         

Contact Information

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