SOURCE: 1st Enterprise Bank

April 16, 2012 12:35 ET

1st Enterprise Bank Announces Record Quarterly Earnings

LOS ANGELES, CA--(Marketwire - Apr 16, 2012) - 1st Enterprise Bank ("the Bank") (OTCBB: FENB), an independent full-service commercial bank serving the Southern California business community, reported net income of $1,049,000 for the quarter ended March 31, 2012 and total assets of $579 million.

Financial Highlights

  • Net income was a record amount of $1.05 million for the first quarter of 2012, a 76% increase over the first quarter of 2011 and a 9% increase over the fourth quarter of 2011
  • Net interest income of $4.34 million was highest in Bank's history
  • Net interest margin grew to 3.37% from 3.02%
  • Total Assets grew by 14% from $510 million at March 31, 2011 to $579 million at March 31, 2012
  • Total Loans outstanding grew by 35% from $232 million at March 31, 2011 to $312 million at March 31, 2012
  • Total Deposits grew by 13% from $461 million at March 31, 2011 to $520 million at March 31, 2012
  • Diluted earnings per common share were $.34 for the first quarter, compared to $.15 for the first quarter of 2011 and $.32 for the fourth quarter of 2011
  • The Bank continues to be well capitalized with Tier 1 Leverage Ratio of 8.9% & Total Risk Based Capital Ratio of 12.4% -- tangible book value per share was $12.19 at quarter end
  • The Bank's Return on Common Equity was 11.76% for the first quarter of 2012
  • The Bank continued to have no charged-off or past due loans, or any non-performing assets

"We are very excited to announce that 1st Enterprise Bank achieved record quarterly earnings and that quarterly net income exceeded a million dollars for the first time in our history," said John Black, CEO. "The Bank's earnings growth this quarter was driven by a 37% increase in net interest income and a 35% increase in loans outstanding over the first quarter of 2011. We also saw meaningful growth in our core areas of non-interest income. We are pleased by the fact that during the quarter we added another experienced Relationship Manager in our Inland Empire Regional Office and an additional Relationship Manager in our Los Angeles Office. We continue to aggressively pursue experienced and talented bankers to join our winning team here at 1st Enterprise Bank."

For the three months ended March 31, 2012, net interest income before provision was $4.34 million, an increase of more than $880,000 or 26% compared to the first quarter of 2011 and an increase of more than $260,000 or 7% compared to the fourth quarter of 2011. 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. The net interest margin was 3.37% during the first quarter of 2012, compared to 3.02% for the prior year and 3.04% for the prior quarter. The Bank's cost of funds was .15% for the quarter and 41% of total deposits were non-interest bearing. Earning assets were $517 million in the first quarter of 2012, an 11% increase over the prior year and a 3% decrease from the prior quarter. Non-interest income increased by $26,000 or 3% from the prior year and increased by $64,000 or 8% from the prior quarter. Non-interest expense increased by $525,000 or 17% over the prior year and increased by $370,000 or 11% over the prior quarter. The Bank had no loan charge-offs during the quarter and has no non-accrual loans. During the first quarter a provision for loan losses was recorded in the amount of $10,000, compared to $292,000 in the first quarter of 2011 and $565,000 in the fourth quarter of 2011.

Brian Horton, President, concluded, "Our strong growth and financial returns are the result of the collective efforts of a very talented team of bankers who take a personal interest in their clients. With this team, the new hires we have made, and the hiring initiatives we have in place, we look forward to continued growth in the future."

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
3/31/2012 12/31/2011 3/31/2011
Assets unaudited audited unaudited
Cash and due from banks $ 30,271 $ 17,344 $ 23,397
Interest earning deposits in other banks 10,163 8,388 18,328
Total cash and cash equivalents 40,434 25,733 41,725
Certificates of deposit in other banks 4,083 5,522 11,300
Investment securities - available-for-sale 146,980 173,155 169,773
Investment securities - held-to-maturity 57,412 53,127 39,567
Loans, net of deferred loan fees 312,308 292,587 231,635
Allowance for loan losses (4,610 ) (4,600 ) (3,757 )
Loans, net of allowance for loan losses 307,698 287,987 227,878
Bank Owned Life Insurance 10,553 10,462 10,165
Premises and equipment, net 2,341 2,464 1,949
Accrued interest receivable and other assets 9,460 8,611 7,283
Total Assets $ 578,961 $ 567,061 $ 509,640
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits $ 214,130 $ 215,355 $ 184,951
Money market, savings and NOW deposits 283,181 270,612 254,110
Time deposits 22,293 10,975 21,941
Total Deposits 519,604 496,942 461,002
Federal Home Loan Bank borrowings 5,000 17,000 0
Other liabilities 3,222 2,881 6,313
Total Liabilities 527,826 516,824 467,315
Shareholders' Equity 51,135 50,237 42,325
Total Liabilities and Shareholders' Equity $ 578,961 $ 567,061 $ 509,640
1st Enterprise Bank
Condensed Statements of Operations
$000 Three Months Ended
Unaudited
Interest Income 3/31/2012 12/31/2011 3/31/2011
Total interest income $ 4,532 $ 4,304 $ 3,763
Total interest expense 195 231 307
Net Interest Income 4,337 4,073 3,456
Provision for loan losses 10 565 292
Net Interest Income After Provision for Loan Losses 4,327 3,508 3,164
Non-interest Income
Service charges, fees and other income 698 769 503
Gain on sale of investment sercurities 135 - 304
Total non-interest Income 833 769 807
Non-interest Expenses
Compensation and benefit expenses 2,216 1,912 1,861
Occupancy and equipment expenses 359 352 273
Other expenses 1,100 1,041 1,016
Total non-interest expense 3,675 3,305 3,150
Income Before Income Taxes 1,485 972 821
Provision for income taxes 436 11 226
Net Income $ 1,049 $ 961 $ 595
Preferred dividends & Warrant amortization $ 41 $ 41 146
Net Income Applicable to Common Shareholders $ 1,008 $ 920 $ 449
Three Months Ended
Unaudited
Earnings Per Share: 3/31/2012 12/31/2011 3/31/2011
Basic earnings per share $ 0.36 $ 0.33 $ 0.16
Diluted earnings per share $ 0.34 $ 0.32 $ 0.15
Weighted average fully diluted shares 2,942,105 2,843,250 2,966,872
Weighted averge common shares outstanding 2,818,500 2,818,500 2,818,487

Contact Information

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