SOURCE: 1st Enterprise Bank

October 22, 2010 14:33 ET

1st Enterprise Bank's Net Income Grows 61%

LOS ANGELES, CA--(Marketwire - October 22, 2010) -  1st Enterprise Bank (OTCBB: FENB)

  • 3rd Quarter Net Income of $402,000
  • Pre-tax Income grows by 74% over Prior Year
  • $125 million or 34% Growth in Assets from Prior Year

1st Enterprise Bank ("the Bank") (OTCBB: FENB), a full-service commercial bank serving the Southern California business community, reported third quarter net income of $402,000 and total assets of $491 million. During the quarter, 1st Enterprise Bank celebrated its fourth anniversary since commencing operations on July 3, 2006. Over that period, the bank has shown tremendous growth, excellent asset quality and liquidity and strong earnings momentum, despite the challenging economic conditions. "We are extremely proud of these results and feel they are a reflection of our high quality clientele and safe, sound and secure banking practices," said John Black, CEO. 

The Bank's third quarter results reflect a 61% increase in net income over the second quarter of 2010. Total assets grew by $125 million, or 34%, over the prior year, and by $27 million, or 6%, over the prior quarter. "We are happy to announce the continued growth in the Bank's profitability," said Brian Horton, President. "Over the last year, the Bank has grown its deposits by $113 million and its loans by $60 million by continuing to attract high quality customers."

The Bank reported net income (unaudited) of $402,000 for the quarter ending September 30, 2010, compared to $605,000 in the prior year. The Bank recorded a net tax benefit in the third quarter of 2009 in the amount of $222,000, as it reduced the valuation allowance on deferred tax assets. On a pre-tax basis, income grew by $286,000, or 74%, over the prior year. 

Net income applicable to common shareholders was $256,000 for the quarter ending September 30, 2010, a $152,000 increase over the second quarter of 2010. Both basic and diluted earnings per share were $0.09, which compares to $.04 in the prior quarter. 

The Bank continues to experience excellent asset quality, as there were no loan charge-offs or past due loans at the end of the third quarter. "We are very proud of these results and want to thank our clients, friends and staff who made these results possible," added Mr. Horton.

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     Unaudited     Unaudited  
    Three Months Ended  
Interest Income   9/30/2010     6/30/2010     9/30/2009  
  Total interest income   $ 3,996,838     $ 3,619,089     $ 3,225,429  
  Total interest expense     350,187       315,339       241,573  
Net Interest Income     3,646,651       3,303,750       2,983,856  
                         
Provision for loan losses     362,628       390,902       229,536  
                         
Net Interest Income After Provision for Loan Losses     3,284,023       2,912,848       2,754,320  
                         
Non-interest Income     285,018       399,664       154,852  
                         
Non-interest Expenses                        
  Salaries and employee benefits     1,581,473       1,569,785       1,451,405  
  Stock-based compensation     37,163       40,622       49,424  
  Occupancy and equipment expenses     284,159       285,528       257,326  
  Other expenses     997,214       977,610       767,567  
    Total non-interest expense     2,900,009       2,873,545       2,525,722  
                         
Income Before Income Taxes     669,032       438,967       383,450  
                         
Provision (benefit) for income taxes     266,886       188,431       (221,876 )
                         
Net Income   $ 402,146     $ 250,536     $ 605,326  
                         
Preferred dividends     145,950       145,950       70,950  
                         
Net Income Applicable to Common Shareholders   $ 256,196     $ 104,586     $ 534,376  
                         
                         
1st Enterprise Bank                        
Condensed Statements of Financial Condition                        
      Unaudited       Unaudited       Unaudited  
Assets     9/30/2010       6/30/2010       9/30/2009  
  Total cash and cash equivalents   $ 9,869,713     $ 12,237,632     $ 40,421,521  
  Interest-bearing deposits in banks     23,698,322       55,320,000       5,731,000  
  Investment securities - available-for-sale     227,106,199       190,797,393       177,070,235  
  Investment securities - held-to-maturity     25,957,783       19,710,090       -  
  Loans, net of deferred loan fees     198,220,792       180,668,705       138,108,422  
  Allowance for loan losses     (3,066,643 )     (2,704,015 )     (1,924,436 )
  Loans, net of allowance for loan losses     195,154,149       177,964,690       136,183,986  
  Premises and equipment, net     2,138,197       2,260,780       2,439,042  
  Accrued interest receivable and other assets     7,103,080       6,025,366       3,903,964  
    Total Assets   $ 491,027,443     $ 464,315,951     $ 365,749,748  
                         
Liabilities and Shareholders' Equity                        
  Noninterest-bearing demand deposits   $ 182,757,435     $ 172,111,935     $ 131,882,112  
  Money market accounts, savings and NOW deposits     248,262,698       236,245,847       191,018,448  
  Time deposits under $100,000     936,604       925,913       782,068  
  Time deposits $100,000 and over     11,063,721       10,840,886       5,961,590  
    Total Deposits     443,020,458       420,124,581       329,644,218  
  Federal Home Loan Bank borrowings     4,000,000       -       -  
  Other liabilities     3,261,113       2,844,592       3,000,311  
    Total Liabilities     450,281,571       422,969,173       332,644,529  
                         
Shareholders' Equity     40,745,872       41,346,778       33,105,219  
                         
Total Liabilities and Shareholders' Equity   $ 491,027,443     $ 464,315,951     $ 365,749,748  

Contact Information

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