SOURCE: 1st Enterprise Bank

February 26, 2007 08:00 ET

1st Enterprise Bank Announces Strong Growth in Both Total Assets and Core Deposits for the Period Ended December 31, 2006

LOS ANGELES, CA -- (MARKET WIRE) -- February 26, 2007 -- 1st Enterprise Bank (the Bank) (OTCBB: FENB), today announced results for the period ended December 31, 2006. After raising $27.5 million in its initial common stock offering, the Bank commenced operations in its downtown Los Angeles Headquarters office on July 3, 2006.

The Bank reported total assets at December 31, 2006 of $114.5 million, an increase of $54.4 million or 90.5% over the $60.1 million at September 30, 2006. Total deposits grew to $78.2 million, an increase of $44.7 million or 133.4% over the September 30, 2006 figure of $33.5 million. Also at December 31, 2006, total net loans were $21.3 million, total investment securities were $23.9 million and Federal Funds Sold was $62.7 million, resulting in increases of 85.7%, 72.8% and 109.2% respectively, over the September 30, 2006 numbers of $11.4 million, $13.8 million, and $30.0 million, respectively. Total equity at December 31, 2006 was $25.5 million. The Bank reported a net operating loss for the three month period ended December 31, 2006 of $634 thousand, a reduction of $378 thousand or 37.4% from the $1,012 thousand loss incurred for the period from the opening of the Bank on July 3, 2006 to September 30, 2006. For the periods ended at December 31, 2006 and September 30, 2006, the provisions for loan losses were $118 thousand and $145 thousand, respectively, and the expensing of stock options granted were $181 thousand and $215 thousand, respectively. The loan loss reserve represented approximately 1.22% of loans outstanding at December 31, 2006.

The total asset number of $114.5 million included $10 million of investment securities purchased in December that did not settle until early in January 2007. Accordingly, the $10 million is reflected on the year end financial statements in Investments and in Other Liabilities. Trade-date accounting rules require the recording of the securities on the date the trades were made. Total assets and liabilities were reduced by $10 million each when the trades were settled in early January 2007.

Chief Executive Officer John C. Black stated, "We are very pleased with the impressive growth of the Bank to date. Our growth has been achieved through the establishment of 'core' banking relationships with high quality businesses throughout Los Angeles and Orange Counties. Client acceptance of the Bank's business model and the services provided by the Bank has been overwhelmingly positive and has fueled this rapid growth. We are grateful for the trust and confidence our clients have placed in us and we look forward to serving their banking needs over many years to come."

"The growth results exceeded our projections and our operating loss was less than our projections," said President K. Brian Horton. "The Bank's performance in its first six months of operations is well within the norms of other de novo banks in California and the Bank is well positioned to continue to grow and serve its clientele in the Los Angeles and Orange County markets."

About 1st Enterprise Bank: The Bank is chartered by the State of California and has its headquarters in downtown Los Angeles. Its business model covers the Los Angeles County and Orange County markets and it provides a wide variety of financial services to its target market of small to medium size businesses, their owners and key employees. The bank emphasizes providing comprehensive relationship banking services to its clientele. For further information about the Bank, go to www.1stenterprisebank.com.


                 Condensed Statement of Financial Condition
                               (Unaudited)

                                      September 30, 2006  December 31, 2006
                                      ------------------  -----------------
Assets                                        (000’s)            (000’s)
                                             --------           --------
  Cash & Due From Banks                      $  2,868           $  4,562
  Federal Funds Sold                           29,960             62,685
  Investments                                  13,814             23,867
  Loans (Net)                                  11,448             21,259
  Other Assets                                  2,019              2,109
                                             --------           --------
    Total Assets                             $ 60,109           $114,482
                                             ========           ========
Liabilities & Shareholders' Equity
  Demand Deposits                            $ 10,646           $ 29,181
  Money Market, Savings, NOW &
   Certificates of Deposit                     22,843             48,986
                                             --------           --------
    Total Deposits                             33,489             78,167
  Other Liabilities                               716             10,856
   Shareholders' Equity                        25,904             25,459
                                             --------           --------
   Total Liabilities & Shareholders'
    Equity                                   $ 60,109           $114,482
                                             ========           ========


                     Condensed Statement of Operations
                                (Unaudited)

                                 July 3, 2006             July 3, 2006
                             (Bank Opening Date)       (Bank Opening Date)
                            to September 30, 2006     to December 31, 2006
                             ------------------        ------------------
                                    (000’s)                 (000’s)
                                    -------                 -------
Interest Income                     $   530                 $ 1,668
Interest Expense                         78                     355
                                    -------                 -------
  Net Interest Income                   452                   1,313
Provision for Loan Losses               145                     263
                                    -------                 -------
  Net Interest Income After
   Provision for Loan Losses            307                   1,050
Non Interest Income                       1                       2
Non Interest Expense                  1,320                   2,698
                                    -------                 -------
  Net Loss Before Income Taxes       (1,012)                 (1,646)
Income Taxes                              0                       0
                                    -------                 -------
  Net Loss                          $(1,012)                $(1,646)
                                    =======                 =======
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.

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