SOURCE: 1st Enterprise Bank

January 29, 2008 06:00 ET

1st Enterprise Bank Continues Strong Core Deposit and Loan Growth for the Year Ended December 31, 2007

LOS ANGELES, CA--(Marketwire - January 29, 2008) - 1st Enterprise Bank (the Bank) (OTCBB: FENB) today announced results for the twelve months ended December 31, 2007.

1st Enterprise Bank continued to experience strong growth in its core deposits and loans during 2007. Total assets of $190.0 million at year end were up $75.6 million, or 66%, from December 31, 2006. Total deposits at December 31, 2007 of $163.6 million represented an increase over the prior year end of $85.4 million, or 109%. Net loans at December 31, 2007 were $69.7 million, an increase of $48.5 million, or 228%, as compared to December 31, 2006. Non-interest bearing demand deposits increased by $21.9 million, or 75%, and interest bearing deposits increased by $63.6 million, or 130%, over the prior year. Shareholders' equity stood at $25.3 million at December 31, 2007 as compared to $25.5 million at December 31, 2006. The net loss for the period ended December 31, 2007 was $1.5 million, a decrease of $791 thousand from the net loss for the period ended December 31, 2006. The net loss reported for 2007 included an increase to our loan loss reserves and off balance sheet exposure reserves of $717 thousand and the recognition of stock option expense of $892 thousand.

"We are extremely pleased with our strong growth in total assets, core deposits and loans during 2007, as well as the substantial decrease in the net loss for the year," said John C. Black, CEO of 1st Enterprise Bank. "Our strong growth during 2007 is attributable to the high quality of our staff and their dedication to serving entrepreneurial businesses and their owners throughout Southern California. We also experienced a significant contribution to our growth through the opening of our Orange County Regional Office in September of last year. We are also very pleased to report that asset quality remains extremely high, and our liquidity remains very strong. As of year-end, we had no past due or non-performing loans in our loan portfolio, and our investments remain in either highly liquid Federal Funds Sold or U. S. Government sponsored Agency securities."

About 1st Enterprise Bank: 1st Enterprise Bank is a full service commercial banking institution, whose highly experienced bankers personally serve Southern California entrepreneurial businesses, professional firms and non profit organizations, along with their owners and key managers. Founded in 2006 and headquartered in the Los Angeles financial district with an Orange County Regional Office in Irvine, 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 their 1st Enterprise Relationship Banker, who understands the unique challenges of their industry and serves as a sounding board and an active participant in their 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
                              (In thousands)

                                                  -----------  -----------
                                                  12/31/2007   12/31/2006
                                                  -----------  -----------
Assets                                            (Unaudited)
  Cash and Due From Banks                         $     8,068  $     4,562
  Federal Funds Sold                                   28,940       62,685
  Investment Securities                                78,717       23,867
  Loans, Net                                           69,730       21,259
  Premises and Equipment                                2,250        1,815
  Accrued Interest and Other Assets                     2,328          294
                                                  -----------  -----------
     Total Assets                                 $   190,033  $   114,482
                                                  ===========  ===========
Liabilities
  Noninterest-Bearing Demand Deposits             $    51,070  $    29,180
  Money Market, NOW and Savings Deposits              109,179       48,744
  Time Deposits                                         3,367          243
                                                  -----------  -----------
     Total Deposits                                   163,616       78,167
  Payable for Investment Securities Purchased               0       10,000
  Accrued Interest and Other Liabilities                1,074          856
                                                  -----------  -----------
     Total Liabilities                                164,690       89,023

Shareholders' Equity                              $    25,343  $    25,459
                                                  -----------  -----------
Total Liabilities & Shareholders' Equity          $   190,033  $   114,482
                                                  ===========  ===========

Condensed Statements of Operations
(In thousands)                                     For the Periods Ended
                                                  -----------  -----------
                                                  12/31/2007   12/31/2006 *
                                                  -----------  -----------
Interest Income                                   (Unaudited)
  Loans                                           $     2,685  $       390
  Investment Securities                                 2,706          225
  Federal Funds Sold                                    2,165        1,053
  Other interest Income                                     3            -
  Preopening Interest Income                                -          181
                                                  -----------  -----------
     Total Interest Income                              7,559        1,849

Interest Expense
  Money Market, NOW and Savings                         2,236          353
  Time Deposits                                           101            2
                                                  -----------  -----------
     Total Interest Expense                             2,337          355
                                                  -----------  -----------
Net Interest Income                                     5,222        1,494
  Provision for Loan Losses                               626          263
                                                  -----------  -----------
Net Interest Income After
 Provision for Loan Losses                              4,596        1,231

Noninterest Income                                        154            2

Noninterest Expense
  Salaries and Employee Benefits                        2,951        1,718
  Stock Based Compensation                                892          396
  Occupancy and Equipment                                 660          340
  Other Noninterest Expense                             1,707          244
  Preopening Expenses                                       -          787
                                                  -----------  -----------
     Total Noninterest Expense                          6,210        3,485

Loss Before Income Taxes                          $    (1,460) $    (2,252)
  Income Taxes                                              1            -
                                                  -----------  -----------
Net Loss                                          $    (1,461) $    (2,252)
                                                  ===========  ===========

* The 2006 Period Ended numbers reflect preopening income and expenses
   as well as results from July 3, 2006 (opening date) to December 31,
   2006.


Contact Information

  • Contact:
    Reginald Prout
    CFO
    213-430-7040
    or
    John Black
    CEO
    213-430-7070