SOURCE: 1st Enterprise Bank

1st Enterprise Bank

April 15, 2009 17:12 ET

1st Enterprise Bank Reports Quarterly Net Income of $111,000

LOS ANGELES, CA--(Marketwire - April 15, 2009) - 1st Enterprise Bank (OTCBB: FENB)

--  Record Total Assets of $262 Million
--  Net Loans Increase 55% from the prior year
--  Total Deposits Increase 41% from the prior year
--  Net Interest Income Rises 42% from the prior year
--  Maintains Strong Capital Position
    

1st Enterprise Bank (the "Bank") (OTCBB: FENB), a full-service commercial bank serving businesses and their owners in Southern California, today announced results for the quarter ended March 31, 2009. Total assets, loans and deposits each reached record levels, reflecting strong organic growth and the Bank's sound on-going financial condition.

The company reported net income (unaudited) of $111,000 for the first quarter of 2009, compared to a loss in the prior quarter of ($77,000) and a loss of ($219,000) in the first quarter of 2008. Core earnings (before loan loss provisions, stock option expense, and taxes) for the first quarter 2009 were $342,000, an increase of $227,000 from the first quarter of 2008. Net interest income after provision for loan losses was $2.36 million for the quarter compared to $1.83 million and $1.66 million in the fourth and first quarters of 2008, respectively. Average earning assets grew by 8% over the prior quarter and the Bank's net interest margin rose to 4.06% compared with 3.84% in the fourth quarter of 2008.

Total assets at March 31, 2009 were $262 million, up 7% compared to $244 million at December 31, 2008 and up 39% compared to $189 million at March 31, 2008. Net loans increased 55% to $125 million at quarter end compared to $80 million the prior year. Total deposits rose 41% to $227 million at quarter end compared to $161 million the prior year and non-interest bearing deposits increased by 18% over the prior quarter.

"The Bank's quarterly net income is a result of strong organic growth and excellent asset quality," said John C. Black, CEO. "The Bank continues to add quality customers and grow its loan and core deposit portfolios. Since the Bank's inception, the loan portfolio has had no non-performing loans, past due loans or loan charge-offs."

1st Enterprise Bank continues to maintain a very strong liquidity position with 50% of its assets in cash and investments. The bank's investments mostly consist of securities issued or guaranteed by government agencies or government-sponsored agencies. As of March 31, the portfolio had a net unrealized gain of $1.8mm. The Bank's funding is from core deposits with approximately 43% in non-interest bearing accounts.

The Bank continued to be well capitalized by all regulatory standards. At March 31, 2009 the bank had a tier 1 leverage capital ratio of 12% and a total risk based capital ratio of greater than 17%. The Bank issued $4.4 million of preferred stock to the U.S. Treasury Department under the Capital Purchase Program in February of 2009. This additional capital will allow the Bank to continue its organic growth trajectory and maintain its high level of capitalization.

"During the first quarter of this year we experienced continued sound growth in our loan portfolio and our core deposit base. This has resulted from our ability to capitalize on our strong overall financial condition, the quality of our banking staff and our consistent approach to our local market. We continue to offer local businesses, professional firms and community based organizations a clear alternative to the much larger national and regional banks," said Mr. Black.

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 Relationship Manager, 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


                                 Unaudited       Audited       Unaudited
                               -------------  -------------  -------------
Assets                           3/31/2009      12/31/2008     3/31/2008
                               -------------  -------------  -------------
  Total Cash and Cash
   Equivalents                 $  12,008,396  $  11,268,496  $  34,405,703
  Interest-Bearing Deposits in
   Banks                           4,950,897     14,950,897              -
  Investment Securities -
   Available-for-Sale            114,850,442     89,968,286     69,644,371
  Loans, Net of Deferred Loan
   Fees                          126,248,896    123,712,987     81,388,727
  Allowance for Loan Losses       (1,566,900)    (1,535,400)      (998,850)
                               -------------  -------------  -------------
  Loans, Net of Allowance for
   Loan Losses                   124,681,996    122,177,587     80,389,877
  Premises and Equipment           2,382,970      2,437,971      2,333,936
  Accrued Interest Receivable
   and Other Assets                2,777,310      2,850,071      1,951,701
                               -------------  -------------  -------------
    Total Assets               $ 261,652,011  $ 243,653,308  $ 188,725,588
                               =============  =============  =============

Liabilities and Shareholders'
 Equity
  Noninterest-Bearing Demand
   Deposits                    $  97,077,031  $  82,067,727  $  50,049,572
  Money Market, NOW & Savings
   Deposits                      125,976,804    129,332,334    105,299,831
  Time Deposits under $100,000       716,600        631,637        396,367
  Time Deposits $100,000 and
   over                            2,762,703      3,174,802      5,099,342
                               -------------  -------------  -------------
    Total Deposits               226,533,138    215,206,500    160,845,112
  Other Liabilities                2,972,451      1,131,495      1,148,628
                               -------------  -------------  -------------
    Total Liabilities            229,505,589    216,337,995    161,993,740

Shareholders' Equity              32,146,422     27,315,313     26,731,848
                               -------------  -------------  -------------

Total Liabilities and
 Shareholders' Equity          $ 261,652,011  $ 243,653,308  $ 188,725,588
                               =============  =============  =============




1st Enterprise Bank
Condensed Statements of Operations
(Unaudited)

                                            Three Months Ended
                               --------------------------  ---------------
Interest Income                  3/31/2009      12/31/2008     3/31/2008
                               -------------  -------------  -------------
   Total Interest Income       $   2,598,919  $   2,425,387  $   2,206,616
   Total Interest Expense            202,980        294,026        435,202
                               -------------  -------------  -------------
Net Interest Income                2,395,939      2,131,361      1,771,414

  Provision for Loan Losses           31,500        301,900        109,850
                               -------------  -------------  -------------

Net Interest Income After
 Provision for Loan Losses         2,364,439      1,829,461      1,661,564

Noninterest Income                   139,315        229,600         56,216

Noninterest Expense
  Salaries and Employee
   Benefits                        1,300,174      1,194,224        930,065
  Stock-Based Compensation           210,556        176,177        224,368
  Occupancy and Equipment
   Expenses                          244,679        234,428        222,248
  Other Expenses                     648,095        781,173        560,391
                               -------------  -------------  -------------
    Total Noninterest Expense      2,403,504      2,386,002      1,937,072

Income (Loss) Before Income
 Taxes                               100,250       (326,941)      (219,292)
                               -------------  -------------  -------------

  Benefit for Income Taxes           (10,691)      (250,000)             -
                               -------------  -------------  -------------

Net Income (Loss)              $     110,941  $     (76,941) $    (219,292)
                               =============  =============  =============

Contact Information

  • Contact:
    John Black
    CEO
    213-430-7070