SOURCE: 1st Enterprise Bank

October 21, 2008 18:00 ET

1st Enterprise Bank Maintains Strong Loan and Core Deposit Growth for the Quarter Ended September 30, 2008

LOS ANGELES, CA--(Marketwire - October 21, 2008) - 1st Enterprise Bank (the Bank) (OTCBB: FENB), today announced results for the Quarter ended September 30, 2008.

1st Enterprise Bank continues to experience strong organic growth in its loans and core deposits during the quarter ended September 30, 2008.

The Bank's net loans at September 30, 2008 were $98 million, an increase of $10 million or 11%, compared to June 30, 2008 and an increase of $42 million or 75%, in comparison to September 30, 2007. The Bank's loan portfolio had zero non-performing loans, zero past due loans and there were no charge offs during the quarter. The Bank continues to maintain a strong liquidity position with 55% of its assets in cash and investments. More than 90% of the bank's bond portfolio consisted of securities issued or guaranteed by government agencies or government sponsored agencies. Total assets were $225 million at the end of the third quarter, up $20 million, or 10%, from the prior quarter and 34% from the third quarter of 2007.

Deposits totaled $197 million at quarter end, which represented an increase of $19 million, or 11% over the prior quarter and $55 million, or 39% over the third quarter of 2007. Non-interest bearing demand deposits increased by $13 million, or 21%, from the end of the second quarter and increased by 67% from the end of the third quarter of 2007. Shareholders' equity was $26 million at September 30, 2008. The Bank continues to be well capitalized, with regulatory capital ratios of 11.9% and 18.2% for tier 1 leverage and total risk based capital, respectively.

The net loss for the three months ended September 30, 2008 was $66 thousand compared to a net loss of $372 thousand for the same period in 2007, an improvement of $306 thousand.

"We continue to benefit from the excellent customer base that we have developed over the past several years. These successful companies and their owners have weathered the economic and financial storms, at present and in the past, and have provided us with a safe, sound and stable commercial banking company. We look forward to continuing to build upon this foundation for years to come," said John C. Black, CEO of 1st Enterprise Bank.

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 nonprofit 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.

Contact Information

  • Contact:
    John Black
    CEO
    213-430-7070