SOURCE: 1st Enterprise Bank

October 16, 2009 13:34 ET

1st Enterprise Bank Reports Record Earnings and Assets

LOS ANGELES, CA--(Marketwire - October 16, 2009) - 1st Enterprise Bank (OTCBB: FENB)

--  3rd Quarter Net Income of $605,000
--  $1.1 million in Net Income through September 30, 2009
--  Total Assets Reach $366 Million
--  Total Asset Growth Exceeds $140 million over Prior Year
--  Total Deposits Increase 67% from the Prior Year
--  Net Interest Income Rises 42% from the Prior Year
--  No non-performing loans, OREO or loan losses for quarter or YTD
    

1st Enterprise Bank ("the Bank") (OTCBB: FENB), a full-service commercial bank serving businesses and their owners throughout Southern California, today announced results for the quarter ended September 30, 2009. The Bank reported record earnings for the third quarter of $605,000 in net income. "The Bank's exceptional deposit and loan growth, and outstanding asset quality, have resulted in strong earnings growth this year," said John C. Black, CEO. "Further, in this very difficult economic climate, the Bank generated a return on common equity for our shareholders in the third quarter of 7.7%. We are extremely proud of these results, which are a direct reflection of the quality of our customers."

The Bank reported net income (unaudited) of $605,000 for the third quarter of 2009, compared to $377,000 in the prior quarter and a loss of $66,000 in the third quarter of 2008. Net income available to common shareholders was $545,000 for the quarter ended September 30, or $.15 per share. For the quarter, the Bank's return on common equity was 7.7% and its return on assets was .72%. The Bank also reported pre-tax income of $383,000 for the third quarter, which was more than a 100% increase over the second quarter of 2009. Year-to-date net income (unaudited) totaled $1.1 million.

Net interest income after provision for loan losses was $2.75 million for the quarter, a 7% increase compared to the second quarter of 2009 and a 42% increase compared to the third quarter of 2008. Average earning assets grew by 20% over the prior quarter and 59% over the prior year. The Bank's net interest margin was 3.68% for the quarter, compared to 4.05% for the same quarter of last year.

Total assets at September 30, 2009 were $366 million, an increase of 18% or $56 million compared to June 30, 2009, and an increase of $141 million or 63% compared to September 30, 2008. Net loans increased 39% to $136 million at quarter end compared to $98 million the prior year. Total deposits rose 67% over the prior year to $330 million. Deposits grew by $55 million over the prior quarter, as the Bank established a significant number of new commercial and personal banking relationships during the third quarter.

1st Enterprise Bank continued to be well capitalized. As of September 30, 2009 the bank had a Tier 1 leverage capital ratio of 9.4% and a total risk based capital ratio of 16%. The Bank continues to maintain a very strong liquidity position with more than 50% of its assets in cash and investments. The Bank's funding is based solely on core deposits, including $132 million in non-interest bearing accounts representing approximately 40% of total deposits.

"The Bank has generated very positive financial results and upward trends over the past three quarters as a result of continued strong organic growth and excellent asset quality," said John C. Black, CEO. "Business owners continue to experience shifting policies and high staff turnover at the major banks, which creates significant opportunities for us to establish new banking relationships with very fine companies throughout Southern California."

During the third quarter 1st Enterprise Bank opened its second full service regional banking office. Located in Ontario, and led by veteran banker Keith Cerwinski, this office will serve businesses and their owners throughout the Inland Empire region.

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 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 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     Unaudited     Audited       Unaudited
                    ------------  ------------  ------------  ------------
Assets                9/30/2009     6/30/2009    12/31/2008     9/30/2008
                    ------------  ------------  ------------  ------------
  Total Cash and
   Cash Equivalents $ 40,421,521  $ 27,919,370  $ 11,268,496  $ 38,218,084
  Interest-Bearing
   Deposits in
   Banks               5,731,000     5,980,000    14,950,897     8,000,000
  Investment
   Securities -
   Available-for-
    Sale             177,070,235   135,406,891    89,968,286    76,035,576
  Loans, Net of
   Deferred Loan
   Fees              138,108,422   135,932,311   123,712,987    99,321,090
  Allowance for
   Loan Losses        (1,924,436)   (1,694,900)   (1,535,400)   (1,233,500)
                    ------------  ------------  ------------  ------------
  Loans, Net of
   Allowance for
   Loan Losses       136,183,986   134,237,411   122,177,587    98,087,590
  Premises and
   Equipment           2,439,042     2,422,735     2,437,971     2,323,028
  Accrued Interest
   Receivable and
   Other Assets        3,903,964     3,560,378     2,850,071     2,113,574
                    ------------  ------------  ------------  ------------
    Total Assets    $365,749,748  $309,526,785  $243,653,308  $224,777,852
                    ============  ============  ============  ============

Liabilities and
 Shareholders'
 Equity
  Noninterest-Bear-
   ing Demand
   Deposits         $131,882,112  $106,863,136  $ 82,067,727  $ 75,542,084
  Money Market, NOW
   & Savings
   Deposits          191,018,448   165,129,586   129,332,334   117,287,181
  Time Deposits
   under $100,000        782,068       729,663       631,637       546,332
  Time Deposits
   $100,000 and
   over                5,961,590     2,356,026     3,174,802     3,940,417
                    ------------  ------------  ------------  ------------
    Total Deposits   329,644,218   275,078,411   215,206,500   197,316,014
  Other Liabilities    3,000,311     1,764,408     1,131,495     1,337,762
                    ------------  ------------  ------------  ------------
    Total
     Liabilities     332,644,529   276,842,819   216,337,995   198,653,776

Shareholders'
 Equity               33,105,219    32,683,966    27,315,313    26,124,076
                    ------------  ------------  ------------  ------------

Total Liabilities
 and Shareholders'
 Equity             $365,749,748  $309,526,785  $243,653,308  $224,777,852
                    ============  ============  ============  ============


1st Enterprise Bank
Condensed Statements of Operations
(Unaudited)
                                                               Nine Months
                               Three Months Ended                 Ended
                    ----------------------------------------  ------------
Interest Income       9/30/2009     6/30/2009     9/30/2008     9/30/2009
                    ------------  ------------  ------------  ------------
    Total Interest
     Income         $  3,225,429  $  2,921,170  $  2,410,309  $  8,745,518
    Total Interest
     Expense             241,573       224,427       351,881       668,980
                    ------------  ------------  ------------  ------------
Net Interest Income    2,983,856     2,696,743     2,058,428     8,076,538

  Provision for
   Loan Losses           229,536       128,000       120,900       389,036
                    ------------  ------------  ------------  ------------

Net Interest Income
 After Provision
 for Loan Losses       2,754,320     2,568,743     1,937,528     7,687,502

Noninterest Income       154,852       277,472       182,224       571,639

Noninterest Expense
  Salaries and
   Employee
   Benefits            1,451,405     1,324,352     1,117,331     4,075,931
  Stock-Based
   Compensation           49,424       212,046       220,964       472,026
  Occupancy and
   Equipment
   Expenses              257,326       243,356       234,430       745,361
  Other Expenses         767,567       881,348       612,787     2,297,010
                    ------------  ------------  ------------  ------------
    Total
     Noninterest
     Expense           2,525,722     2,661,102     2,185,512     7,590,328

Income (Loss)
 Before Income
 Taxes                   383,450       185,113       (65,760)      668,813
                    ------------  ------------  ------------  ------------

  Provision
   (benefit) for
   Income Taxes         (221,876)     (191,662)            -      (424,229)
                    ------------  ------------  ------------  ------------

Net Income (Loss)   $    605,326  $    376,775  $    (65,760) $  1,093,042
                    ============  ============  ============  ============

Contact Information

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