SOURCE: 1st Enterprise Bank

1st Enterprise Bank

July 14, 2011 18:08 ET

1st Enterprise Bank Reports Results for the Quarter Ending June 30, 2011, Highlighted by Net Income of $832,000 and 32% Growth in Loans Over the Prior Year

LOS ANGELES, CA--(Marketwire - Jul 14, 2011) - 1st Enterprise Bank ("the Bank") (OTCBB: FENB), a full-service commercial bank serving the Southern California business community, reported net income of $832,000 for the second quarter of 2011, a $581,000 increase over the second quarter of 2010. "We are very pleased with the Bank's strong earnings growth during the quarter and the 32% increase in outstanding loans," said John Black, CEO. "In this period of relatively slow economic growth, this level of loan growth is significant, and is reflective of the quality of our customers, our staff and our consistent lending policies. At the same time, we continue to experience excellent asset quality in both our loan and investment portfolios. This quarter was especially significant for us in that it marked the Bank's fifth anniversary (July 3, 2011) and reflected record highs of $526 million in total assets, $478 million in total deposits and $238 million in outstanding loans."

The Bank reported net income of $832,000 and income applicable to common shareholders of $686,000 for the quarter ending June 30, 2011. This compares to net income of $251,000 and income applicable to common shareholders of $105,000 for the quarter ending June 30, 2010. Basic and diluted earnings per share were $0.24 and $0.23 respectively, which compares to basic and diluted earnings per share of $0.04 for the prior year.

Total assets at June 30, 2011 were $526 million, an increase of 13% or $62 million compared to June 30, 2010. Deposits increased by $58 million or 14% over the prior year and outstanding loans grew by $57 million or 32% over the prior year. The Bank's Tier 1 leverage capital ratio for the quarter was 8% and its total risk based capital ratio was 13%.

"Over the past five years we have consistently executed on our original business plan of providing custom tailored and highly personalized banking services to businesses and their owners throughout Southern California. Our focus and discipline, combined with the experience and enthusiasm of our staff in serving this market, have produced the above results," said Mr. Black. "The past five years have seen tremendous changes in the economy, industry and in banking, yet our core principles of safe and sound practices, person to person service and customer focused decision making have proven themselves to be resilient and rewarding."

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
Condensed Statements of Operations
Unaudited
Three Months Ended
Interest Income 6/30/2011 3/31/2011 6/30/2010
Total interest income $ 4,029 $ 3,763 $ 3,619
Total interest expense 322 307 315
Net Interest Income 3,707 3,456 3,304
Provision for loan losses 243 292 391
Net Interest Income After Provision for Loan Losses 3,464 3,164 2,913
Non-interest Income 1,127 807 400
Non-interest Expenses
Compensation and benefit expenses 1,829 1,862 1,611
Occupancy and equipment expenses 343 273 285
Other expenses 1,169 1,015 978
Total non-interest expense 3,341 3,150 2,874
Income Before Income Taxes 1,250 821 439
Provision for income taxes 418 226 188
Net Income $ 832 $ 595 $ 251
Preferred dividends 146 146 146
Net Income Applicable to Common Shareholders $ 686 $ 449 $ 105
1st Enterprise Bank
Condensed Statements of Financial Condition
Unaudited Unaudited Unaudited
Assets 6/30/2011 3/31/2011 6/30/2010
Total cash and cash equivalents $ 20,774 $ 23,397 $ 12,238
Interest-bearing deposits in banks 35,998 29,628 55,320
Investment securities - available-for-sale 171,235 169,773 190,797
Investment securities - held-to-maturity 40,048 39,567 19,710
Loans, net of deferred loan fees 238,139 231,635 180,669
Allowance for loan losses (4,000 ) (3,757 ) (2,704 )
Loans, net of allowance for loan losses 234,139 227,878 177,965
Bank Owned Life Insurance 10,268 10,165 -
Premises and equipment, net 2,367 1,949 2,261
Accrued interest receivable and other assets 11,417 7,283 6,025
Total Assets $ 526,246 $ 509,640 $ 464,316
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits $ 199,739 $ 184,951 $ 172,112
Money market accounts, savings and NOW deposits 257,516 254,110 236,246
Time deposits 20,953 21,941 11,767
Total Deposits 478,208 461,002 420,125
Other liabilities 4,622 6,313 2,844
Total Liabilities 482,830 467,315 422,969
Shareholders' Equity 43,416 42,325 41,347
Total Liabilities and Shareholders' Equity $ 526,246 $ 509,640 $ 464,316

Contact Information

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