Taking a Personal Interest in You and Your Business

Press Releases

1st Enterprise Bank Completes $12.5 Million
Common Stock Private Placement

LOS ANGELES, CA – (Marketwire - May 16, 2012) - 1st Enterprise Bank (the "Bank") (OTC.BB:FENB - News) announced today that it has completed a private placement of $12.5 million of common stock to a select group of institutional investors. In the offering, the Bank issued 961,539 shares of common stock at a price of $13.00 per share. The price per share represents a premium to the Bank's tangible book value as of March 31, 2012.

The Bank intends to use the net proceeds from the offering to support its continued growth. As of March 31, 2012, the Bank had total assets of $579.0 million, total loans of $312.3 million, total deposits of $519.6 million, and total equity of $51.1 million. Over the last twelve months the Bank has grown its total loans $80.7 million, or 34.8%, and its total deposits $58.6 million, or 12.7%. The Bank recently announced record quarterly earnings of $1.0 million and net interest income of $4.3 million for the first quarter of 2012.

"We are pleased to have raised capital on favorable terms for our existing shareholders, and we welcome the addition of our new shareholders," said John Black, Chief Executive Officer. "The proceeds of this offering will fund future organic growth, and we are excited about the expanded opportunities for our company."

Net proceeds from the offering are anticipated to be $12.0 million, increasing the Bank's pro forma total equity to $63.1 million, as of March 31, 2012. The Bank's pro forma tangible common equity ratio, leverage ratio, and risk based capital ratio will increase to 7.9%, 10.8%, and 15.0%, respectively.

The offering is being made only to institutional investors through the Bank's exclusive placement agent and financial advisor, D.A. Davidson & Co. King, Holmes, Paterno & Berliner, LLP served as legal advisor to the Bank.

About 1st Enterprise Bank

Founded in 2006, 1st Enterprise Bank is a full service independent 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:

The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Bank. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties, including but not limited to the health of the national and California economies, the Bank's ability to attract and retain skilled employees, customers' service expectations, the Bank's ability to successfully deploy new technology, the success of branch expansion, changes in interest rates, and loan portfolio performance.

Contact:
John C. Black
Chief Executive Officer
213-430-7000
Copyright 2012, 1st Enterprise Bank, Inc. All rights reserved.