SOURCE: 1st Enterprise Bank

1st Enterprise Bank

February 17, 2011 16:57 ET

1st Enterprise Bank Reaches $500 Million in Assets

LOS ANGELES, CA--(Marketwire - February 17, 2011) - 1st Enterprise Bank (OTCBB: FENB)

--  $118 million or 31% Growth in Assets from Prior Year
--  34% loan growth and 30% deposit growth from Prior Year
--  Income before taxes and loan loss provision grows by 74% over Prior
    Year

1st Enterprise Bank ("the Bank") (OTCBB: FENB), a full-service commercial bank serving the Southern California business community, reported fourth quarter and full year 2010 net income of $620,000 and $1,740,000, respectively. "We are pleased to announce that the Bank reached $502 million in total assets," said Brian Horton, President. "Over the last year, the Bank has continued its strong organic growth, evidenced by a 30% increase in core deposits and a 34% increase in loans." "During these difficult economic times, we are pleased to report that the Bank continues to have no charged-off or past due loans," said John Black, CEO, "which is a testament to the quality of our customer base." "We are also proud of the Bank's 2010 earnings, as income before both taxes and provision for loan losses increased by $1.6 million over 2009."

The Bank's 2010 results reflect a 77% increase in pretax income over the prior year. In 2009, the Bank recorded a net tax benefit as it eliminated the valuation allowance on deferred tax assets. Total assets grew by $118 million or 31% over the prior year and outstanding loans grew by 34% or $55 million. Customer deposits grew by $102 million or 30% over the prior year.

The Bank reported net income of $620,000 and income applicable to common shareholders of $474,000 for the quarter ending December 31, 2010. This compares to net income of $402,000 and income applicable to common shareholders of $256,000 for the quarter ending September 30, 2010. Basic and diluted earnings per share were $0.17 and $0.16, respectively, which compares to basic and diluted earnings per share of $0.09 for the prior period.

"We are very proud of these results and want to thank our clients, friends and staff who made these results possible," added Mr. Black.

About 1st Enterprise Bank

Founded in 2006, 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. 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                               Unaudited     Audited
Condensed Statements of Operations                  Twelve Months Ended
(thousands)                                         2010          2009
                                                ------------  ------------
INTEREST INCOME
     Interest and fees on loans                 $      8,685  $      6,464
     Interest on investment securities                 6,079         5,842
     Interest on federal funds sold                        -            12
     Other interest income                               296           165
                                                ------------  ------------
             Total interest income                    15,060        12,483
                                                ------------  ------------
INTEREST EXPENSE                                       1,260           960
                                                ------------  ------------
NET INTEREST INCOME                                   13,800        11,523

PROVISION FOR LOAN LOSSES                              1,209           721
                                                ------------  ------------
NET INTEREST INCOME AFTER PROVISION
 FOR LOAN LOSSES                                      12,591        10,802
                                                ------------  ------------

NON-INTEREST INCOME
     Gain on sale of investment securities               335           154
     Service charges, fees and other income            1,058           733
                                                ------------  ------------
             Total non-interest income                 1,393           887
                                                ------------  ------------

NON-INTEREST EXPENSES
     Salaries and employee benefits                    6,322         5,577
     Stock-based compensation                            153           526
     Occupancy and equipment expenses                  1,120         1,020
     Other expenses                                    3,911         3,163
                                                ------------  ------------
             Total non-interest expenses              11,506        10,286
                                                ------------  ------------

INCOME BEFORE INCOME TAXES                             2,478         1,403
Provision (benefit) for income taxes                     738          (611)
                                                ------------  ------------

NET INCOME                                      $      1,740  $      2,014
                                                ============  ============

Earnings per share - basic                      $       0.42  $       0.64
                                                ============  ============

Earnings per share - diluted                    $       0.40  $       0.61
                                                ============  ============




1st Enterprise Bank                               Unaudited      Audited
Condensed Statements of Financial Condition      12/31/2010    12/31/2009
(thousands)                                     ------------  ------------

ASSETS
 Total cash and cash equivalents                $      4,577  $      7,592
 Interest-bearing deposits in banks                   25,926         9,945
 Investment securities - available-for-sale          199,293       199,309
 Investment securities - held-to-maturity             39,616             -
   Loans, net of deferred loan fees                  216,919       161,605
   Allowance for loan losses                          (3,465)       (2,256)
                                                ------------  ------------
 Loans, net of allowance for loan losses             213,454       159,349
 Bank Owned Life Insurance                            10,062             -
 Premises and equipment, net                           2,053         2,399
 Accrued interest receivable and other assets          7,303         5,232
                                                ------------  ------------
TOTAL ASSETS                                    $    502,284  $    383,826
                                                ============  ============

LIABILITIES AND SHAREHOLDERS' EQUITY
 Noninterest-bearing demand deposits            $    173,146  $    138,808
 Money market accounts, savings and NOW
  deposits                                           259,600       190,426
 Time deposits under $100,000                            878           835
 Time deposits $100,000 and over                       7,728         8,820
                                                ------------  ------------
   Total Deposits                                    441,352       338,889
 Federal Home Loan Bank borrowings                    16,500         3,000
 Other liabilities                                     2,351         2,080
                                                ------------  ------------
   Total Liabilities                            $    460,203  $    343,969
                                                ------------  ------------

SHAREHOLDERS' EQUITY                            $     42,081  $     39,857
                                                ------------  ------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $    502,284  $    383,826
                                                ============  ============

Contact Information

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