SOURCE: 1st Enterprise Bank

1st Enterprise Bank

April 16, 2014 18:47 ET

1st Enterprise Bank Announces Record Quarterly Net Income of $1.5 Million for the 1st Quarter of 2014

LOS ANGELES, CA--(Marketwired - Apr 16, 2014) - 1st Enterprise Bank ("the Bank") (OTCQB: FENB), an independent full-service commercial bank serving the Southern California business community, reported net income of $1.5 million for the quarter ending March 31, 2014. 

Financial Highlights

  • Net income for the quarter ending March 31, 2014 was $1.5 million, a 27% increase over the prior quarter and a 48% increase over the prior year
  • Diluted earnings per common share were $.35 for the quarter, compared to $.28 in the fourth quarter of 2013 and $.24 in the first quarter of 2013
  • Total Assets grew by $74 million, from $702 million at March 31, 2013 to $776 million at March 31, 2014
  • Total Loans outstanding grew by $88 million, from $419 million at March 31, 2013 to $507 million at March 31, 2014
  • Total Deposits grew by $50 million, from $601 million at March 31, 2013 to $652 million at March 31, 2014
  • Income before taxes, loan loss provision and gain on sale of securities was $2.3 million for the quarter, a 16% increase over the prior year

John Black, CEO, stated, "We continue to be very pleased with the Bank's earnings and asset growth. Once again I am excited to announce record quarterly earnings, as well as loan growth that exceed 20% over the last 12 months." Brian Horton, President, added, "This growth validates our customers' appreciation for the importance of relationship banking and is the result of the efforts of a very talented staff."

For the three months ended March 31, 2014, net interest income before provision was $6.1 million, an increase of 17% compared to the first quarter of 2013 and an increase of 5% compared to the fourth quarter of 2013. The year-over-year growth in net interest income was the result of both growth in earning assets and expansion in net interest margin. Earning assets were $704 million in the first quarter of 2014, an 8% or $51 million increase over the prior year. The net interest margin was 3.50% during the first quarter of 2014, compared to 3.23% for the prior year. The increase in net interest margin was the result of a .27% increase in the earning asset yield over the prior year. The growth in net interest income over the prior quarter was mostly the result of an increase in the net interest margin from 3.30% to 3.50%. This increase resulted from the yield on earning assets increasing by 0.20% from the prior quarter as loan balances grew from 68% of earning assets to 73% and the yield on investment securities increased by .26%. There was no provision for loan loss during the quarter, compared to a provision of $542,000 in the first quarter of 2013 and a provision of $710,000 in the fourth quarter of 2013. There were no loan charge-offs during the first quarter of 2014 or the fourth quarter of 2013, compared to net loan charge-offs during the first quarter of 2013 that totaled $349,000. As of March 31, 2014 there was one non-accrual loan that totaled $1.7 million.

Non-interest income, excluding gain on sale, was $900,000 for the quarter, which was a 20% increase year over year, but declined by $124,000 sequentially due to lower loan related income. Growth in non-interest income from the prior year was generally due to increased deposit related fees. 

Non-interest expense increased by $720,000 or 18% over the prior year and increased by $128,000 or 3% over the prior quarter. The year over year increase is mostly the result of continued investment in staffing levels to support current and future customer growth. The sequential increase in non-interest expense was due to a $112,000 increase in the Bank's off-balance sheet reserves due to growth in unused loan commitments. 

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   3/31/2014     12/31/2013     3/31/2013  
  Cash and due from banks   $ 33,270     $ 12,126       16,393  
  Interest earning deposits in other banks     29,461       5,793       14,560  
    Total cash and cash equivalents     62,731       17,919       30,953  
                         
  Certificates of deposit in other banks     -       -       2,490  
  Investment securities - available-for-sale     113,071       148,809       164,580  
  Investment securities - held-to-maturity     61,769       62,118       55,753  
  Loans, net of deferred loan fees     513,360       505,258       425,009  
  Allowance for loan losses     (6,519 )     (6,517 )     (5,703 )
  Loans, net of allowance for loan losses     506,841       498,741       419,306  
  Bank owned life insurance     16,538       16,411       16,017  
  Premises and equipment, net     2,372       2,453       2,700  
  Accrued interest receivable and other assets     12,590       13,550       9,985  
    Total Assets   $ 775,912     $ 760,001     $ 701,784  
                         
Liabilities                        
  Noninterest-bearing demand deposits   $ 321,500     $ 315,888     $ 268,584  
  Interest bearing transaction accounts     43,770       39,358       35,250  
  Money market and savings accounts     270,219       277,035       278,610  
  Time deposits     16,083       10,518       18,996  
    Total Deposits     651,572       642,799       601,440  
  Federal Home Loan Bank borrowings     50,000       44,000       30,500  
  Other liabilities     3,253       3,923       3,484  
    Total Liabilities     704,825       690,722       635,424  
                         
Shareholders' Equity                        
  Serial Preferred Stock     16,380       16,380       16,380  
  Common Stock     43,378       43,142       43,048  
  Retained Earnings     11,245       9,781       5,918  
  Accumulated other comprehensive income     84       (24 )     1,014  
    Total Shareholders' Equity     71,087       69,279       66,360  
                         
Total Liabilities and Shareholders' Equity   $ 775,912     $ 760,001     $ 701,784  
                         
                         
                   
1st Enterprise Bank                  
Condensed Statements of Operations   Three Months Ended  
$000   Unaudited  
    3/31/2014     12/31/2013     3/31/2013  
Interest Income                        
  Interest and fees on loans   $ 5,293     $ 5,036     $ 4,428  
  Interest on investment securities     972       944       952  
  Other interest income     3       8       10  
    Total interest income     6,268       5,988       5,390  
Interest Expense     191       189       192  
Net Interest Income     6,077       5,799       5,198  
                         
Provision for loan losses     -       710       542  
                         
Net Interest Income After Provision for Loan Losses     6,077       5,089       4,656  
                         
Non-interest Income                        
Service charges, fees and other income     900       1,024       749  
Gain on sale of investment sercurities     41       -       -  
    Total non-interest Income     941       1,024       749  
                         
Non-interest Expenses                        
  Compensation and benefit expenses     2,876       2,846       2,431  
  Occupancy and equipment expenses     379       393       374  
  Data processing     268       269       256  
  Professional and legal     401       382       328  
  Other operating expenses     761       667       575  
    Total non-interest expense     4,685       4,557       3,964  
                         
Income Before Income Taxes     2,334       1,557       1,442  
                         
Provision for income taxes     829       369       425  
                         
Net Income   $ 1,505     $ 1,187     $ 1,017  
                         
Preferred dividends & Warrant amortization     41       41       41  
                         
Net Income Applicable to Common Shareholders   $ 1,464     $ 1,146     $ 976  
                         
Earnings Per Share                        
Basic earnings per share   $ 0.38     $ 0.30     $ 0.26  
                         
Diluted earnings per share   $ 0.35     $ 0.28     $ 0.24  
                         
Average shares outstanding     3,803,389       3,798,213       3,793,150  
                         
Average fully diluted shares     4,182,521       4,149,582       4,062,894  
                         
Total Shares outstanding at end of period     3,840,938       3,823,939       3,815,089  
                         
Capital Ratios                        
Tier 1 leverage ratio     9.5 %     9.3 %     9.4 %
                         
Tier 1 risk-based capital ratio     11.1 %     11.0 %     11.9 %
                         
Total risk-based capital ratio     12.2 %     12.0 %     13.0 %
                         
Book value per share   $ 14.24     $ 13.83     $ 13.10  
                         
Performance Ratios                        
Return on average assets     0.81 %     0.63 %     0.59 %
                         
Return on average common equity     10.98 %     8.57 %     7.95 %
                         
Net interest margin     3.50 %     3.30 %     3.23 %
                         
Cost of Funds     0.11 %     0.11 %     0.12 %
                         
Efficiency ratio     66.80 %     66.41 %     66.70 %
                         
Average Balances                        
Total Assets   $ 751,031     $ 742,247     $ 695,576  
                         
Earning Assets     704,112       696,826       653,274  
                         
Total Loans     512,559       477,186       415,003  
                         
Total Securities     188,384       209,826       230,343  
                         
Total Deposits     634,225       656,444       606,208  
                         
Common Equity     54,075       53,091       49,812  
                         
                         

Contact Information

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