SOURCE: 1st Enterprise Bank

1st Enterprise Bank

July 18, 2012 17:31 ET

1st Enterprise Bank Exceeds $600 Million in Assets

LOS ANGELES, CA--(Marketwire - Jul 18, 2012) - 1st Enterprise Bank ("the Bank") (OTCBB: FENB), an independent full-service commercial bank serving the Southern California business community, reported total assets of $619 million and net income of $804,000 for the quarter ended June 30, 2012.

Financial Highlights

  • A private placement of $12.5 million of Common Equity at a price of $13 per share was completed in May
  • Total Assets grew by 18% from $526 million at June 30, 2011 to $619 million at June 30, 2012
  • Total Loans outstanding grew by $103 million or 43% from $238 million at June 30, 2011 to $341 million at June 30, 2012
  • Total Deposits grew by $73 million or 15% from $478 million at June 30, 2011 to $551 million at June 30, 2012
  • Net interest income of $4.62 million was highest in Bank's history and 25% higher than the second quarter of 2011
  • Net interest margin grew to 3.38% from 3.12% in the second quarter of 2011, while the loan-to-deposit ratio increased from 50% to 62%
  • 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 10.6% and a Total Risk Based Capital Ratio of 14.5% -- tangible book value per share was $12.52 at quarter end
  • Net Income applicable to common shareholders was $763,000 for the second quarter of 2012, compared to $686,000 for the second quarter of 2011
  • Diluted earnings per common share were $.22 for the quarter, compared to $.23 for the second quarter of 2011

"We are proud to announce that 1st Enterprise Bank exceeded $600 million in assets prior to the Bank's sixth anniversary," said John Black, CEO. "Our loan growth of 43% over the last twelve months demonstrates the Bank's strong financial position and capabilities in supporting the continued credit needs of existing and new customers. Our strong loan and deposit growth resulted in a 25% increase in net interest income, while the Bank continued to maintain excellent asset quality." Brian Horton, President, added, "We are not only excited about the financial results in the second quarter, but we are very excited about recent new hires and our soon-to-be announced new regional office in the San Fernando Valley."

For the three months ended June 30, 2012, net interest income before provision was $4.62 million, an increase of more than $915,000 or 25% compared to the second quarter of 2011 and an increase of more than $285,000 or 7% compared to the first 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. The net interest margin was 3.38% during the second quarter of 2012, compared to 3.12% for the prior year and 3.37% for the prior quarter. The Bank's cost of funds was .13% for the quarter, compared to a cost of funds of .15% in the prior quarter and .28% in the prior year. Transaction account balances grew by $67 million or 29% from the prior year and non-interest bearing deposits comprised 45% of average total deposits in the second quarter. Earning assets were $550 million in the second quarter of 2012, a 15% increase over the prior year and a 6% increase over the prior quarter. The Bank had no loan charge-offs during the quarter and has no non-accrual loans. During the second quarter a provision for loan losses was recorded in the amount of $240,000, compared to $243,000 in the second quarter of 2011 and $10,000 in the first quarter of 2012.

Non-interest income increased by $337,000 or 76% from the prior year and increased by $82,000 or 12% from the prior quarter. Growth in non-interest income is attributable to growth in both loan related and deposit related fees. The second quarter of 2012 includes gains on sale of securities totaling $116,000, compared to $135,000 in the prior quarter and $683,000 in the prior year.

Non-interest expense increased by $799,000 or 24% over the prior year and increased by $466,000 or 13% over the prior quarter. The second quarter included non-recurring compensation expense for retention and other employee matters totaling $500,000.

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            
                   
    6/30/2012     3/31/2012     6/30/2011  
Assets   unaudited     unaudited     unaudited  
  Cash and due from banks   $ 3,379     $ 30,271     $ 20,774  
  Interest earning deposits in other banks     51,817       10,163       26,294  
    Total cash and cash equivalents     55,196       40,434       47,068  
                           
  Certificates of deposit in other banks     498       4,083       9,704  
  Investment securities - available-for-sale     144,605       146,980       171,235  
  Investment securities - held-to-maturity     57,067       57,412       40,048  
  Loans, net of deferred loan fees     340,929       312,308       238,139  
  Allowance for loan losses     (4,850 )     (4,610 )     (4,000 )
  Loans, net of allowance for loan losses     336,079       307,698       234,139  
  Bank owned life insurance     13,161       10,553       10,268  
  Premises and equipment, net     2,407       2,341       2,367  
  Accrued interest receivable and other assets     10,063       9,460       11,417  
    Total Assets   $ 619,076     $ 578,961     $ 526,246  
                         
Liabilities                        
  Non-interest-bearing demand deposits   $ 258,114     $ 214,130     $ 199,739  
  Interest bearing transaction accounts     37,541       34,760       29,130  
  Money market and savings accounts     233,736       248,421       228,386  
  Time deposits     21,565       22,293       20,953  
    Total Deposits     550,956       519,604       478,208  
  Federal Home Loan Bank borrowings     -       5,000       -  
  Other liabilities     4,085       3,222       4,622  
    Total Liabilities     555,041       527,826       482,830  
                         
Shareholders' Equity                        
  Serial Preferred Stock     16,380       16,380       10,471  
  Common Stock     42,982       31,008       30,869  
  Retained Earnings     3,144       2,382       12  
  Accumulated other comprehensive income     1,529       1,365       2,064  
    Total Shareholders' Equity     64,035       51,135       43,416  
                         
Total Liabilities and Shareholders' Equity   $ 619,076     $ 578,961     $ 526,246  
                         
                         
1st Enterprise Bank          
Condensed Statements of Operations          
$000                        
      Three Months Ended  
      Unaudited  
Interest Income     6/30/2012       3/31/2012       6/30/2011  
    Total interest income   $ 4,798     $ 4,532     $ 4,029  
    Total interest expense     175       195       322  
Net Interest Income     4,623       4,337       3,707  
                         
Provision for loan losses     240       10       243  
                         
Net Interest Income After Provision for Loan Losses     4,383       4,327       3,464  
                         
Non-interest Income                        
Service charges, fees and other income     781       698       444  
Gain on sale of investment sercurities     116       135       683  
    Total non-interest Income     897       833       1,127  
                         
Non-interest Expenses                        
  Compensation and benefit expenses     2,562       2,216       1,829  
  Occupancy and equipment expenses     361       359       343  
  Data processing     247       214       207  
  Professional and legal     240       227       377  
  Other operating expenses     731       659       585  
    Total non-interest expense     4,141       3,675       3,341  
                         
Income Before Income Taxes     1,139       1,485       1,250  
                         
Provision for income taxes     335       436       418  
                         
Net Income   $ 804     $ 1,049     $ 832  
                         
Preferred dividends & Warrant amortization     41       41       146  
                         
Net Income Applicable to Common Shareholders   $ 763     $ 1,008     $ 686  
                         
Earnings Per Share                        
Basic earnings per share   $ 0.23     $ 0.36     $ 0.24  
                         
Diluted earnings per share   $ 0.22     $ 0.34     $ 0.23  
                         
Average shares outstanding     3,315,021       2,818,500       2,818,500  
                         
Average fully diluted shares     3,505,846       2,942,105       2,978,351  
                         
Total Shares outstanding at end of period     3,805,039       2,851,500       2,838,500  
                         
Capital Ratios                        
Tier 1 leverage ratio     10.6 %     8.9 %     8.1 %
                         
Tier 1 risk-based capital ratio     13.4 %     11.3 %     11.9 %
                         
Total risk-based capital ratio     14.5 %     12.4 %     13.1 %
                         
Book value per share   $ 12.52     $ 12.19     $ 11.61  
                         
Performance Ratios                        
Return on average assets     0.54 %     0.75 %     0.65 %
                         
Return on average common equity     7.29 %     11.76 %     8.42 %
                         
Net interest margin     3.38 %     3.37 %     3.12 %
                         
Efficiency ratio     73.12 %     71.09 %     71.35 %
                         
Average Balances                        
Total Assets   $ 593,877     $ 561,010     $ 514,033  
                         
Earning Assets     550,050       517,307       477,135  
                         
Total Loans     325,867       301,047       241,717  
                         
Total Deposits     531,125       501,504       468,716  
                         
Common Equity     42,078       34,463       32,662  

Contact Information

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