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1st Enterprise Bank's Assets Grow by 50%

Thursday, July 22, 2010 17:40 ET
LOS ANGELES, CA--(Marketwire - July 22, 2010) - 1st Enterprise Bank (OTCBB: FENB)

  • 50% Growth in Assets from Prior Year
  • 15% Growth in Assets from Prior Quarter
  • $464 Million in Total Assets at 4 Year Anniversary
  • Pre-tax Income grows by $254,000 over Prior Year
  • 2nd Quarter Net Income of $251,000

1st Enterprise Bank ("the Bank") (OTCBB: FENB), a full-service commercial bank serving the Southern California business community, reported second quarter net income of $251,000 and total assets of $464 million. This represents a 50% increase in total assets from a year ago and a 15% increase from the prior quarter. "Quality customer relationships continue to be attracted to 1st Enterprise's service model, as our highly experienced bankers and staff have generated deposit growth of $145 million over the last year," said John C. Black, CEO. "In addition, the Bank has grown its loan portfolio by more than 30% over the last year."

Deposits increased by 53% or $145 million over the prior year, and by 18% or $65 million over the prior quarter. Deposits continue to represent only core customer relationships and ended the second quarter at $420 million. The Bank continues to maintain strong capital ratios, with a Tier 1 leverage capital ratio of 9% and a total risk-based capital ratio of 15%.

The Bank's reported net income (unaudited) was $251,000 for the quarter ending June 30, 2010, compared to $377,000 in the prior year. The Bank recorded a net tax benefit in the second quarter of 2009 in the amount of $192,000, as it reduced the valuation allowance on deferred tax assets. On a pre-tax basis, income grew by $254,000 over the prior year. Net income was $467,000 for the period ending March 31, 2010.

Net income applicable to common shareholders was $105,000 for the quarter ending June 30, 2010 and both basic and diluted earnings per share were $0.04. This compares to income applicable to common shareholders of $296,000 and basic and diluted earnings per share of $0.10 in the prior year.

The Bank continues to experience excellent asset quality, as the Bank had no loan charge-offs, zero non-performing loans nor any past due loans at the end of the second quarter. However, the Bank prudently increased its provision for loan losses by $263,000 over the prior year and by $334,000 over the prior quarter, as economic conditions continue to be weak.

"We look forward to continued strong growth, as the Bank approaches $500 million and beyond," said K. Brian Horton, President.

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.

John C. Black
Copyright 2012, 1st Enterprise Bank, Inc. All rights reserved.