Taking a Personal Interest in You and Your Business

Press Releases

1st Enterprise Bank Exceeds $600 Million in Assets

LOS ANGELES, CA – (Marketwire - Jul 18, 2012) - 1st Enterprise Bank ("the Bank") (OTCBB: FENB), an independent full-service commercial bank serving the Southern California business community, reported total assets of $619 million and net income of $804,000 for the quarter ended June 30, 2012.

Financial Highlights

  • A private placement of $12.5 million of Common Equity at a price of $13 per share was completed in May
  • Total Assets grew by 18% from $526 million at June 30, 2011 to $619 million at June 30, 2012
  • Total Loans outstanding grew by $103 million or 43% from $238 million at June 30, 2011 to $341 million at June 30, 2012
  • Total Deposits grew by $73 million or 15% from $478 million at June 30, 2011 to $551 million at June 30, 2012
  • Net interest income of $4.62 million was highest in Bank's history and 25% higher than the second quarter of 2011
  • Net interest margin grew to 3.38% from 3.12% in the second quarter of 2011, while the loan-to-deposit ratio increased from 50% to 62%
  • The Bank continued to have no charged-off or past due loans, or any non-performing assets
  • The Bank continues to be well capitalized with a Tier 1 Leverage Ratio of 10.6% and a Total Risk Based Capital Ratio of 14.5% – tangible book value per share was $12.52 at quarter end
  • Net Income applicable to common shareholders was $763,000 for the second quarter of 2012, compared to $686,000 for the second quarter of 2011
  • Diluted earnings per common share were $.22 for the quarter, compared to $.23 for the second quarter of 2011

"We are proud to announce that 1st Enterprise Bank exceeded $600 million in assets prior to the Bank's sixth anniversary," said John Black, CEO. "Our loan growth of 43% over the last twelve months demonstrates the Bank's strong financial position and capabilities in supporting the continued credit needs of existing and new customers. Our strong loan and deposit growth resulted in a 25% increase in net interest income, while the Bank continued to maintain excellent asset quality." Brian Horton, President, added, "We are not only excited about the financial results in the second quarter, but we are very excited about recent new hires and our soon-to-be announced new regional office in the San Fernando Valley."

For the three months ended June 30, 2012, net interest income before provision was $4.62 million, an increase of more than $915,000 or 25% compared to the second quarter of 2011 and an increase of more than $285,000 or 7% compared to the first quarter of 2012. The year-over-year growth in net interest income was the result of both growth in earning assets and an increase in net interest margin. The net interest margin was 3.38% during the second quarter of 2012, compared to 3.12% for the prior year and 3.37% for the prior quarter. The Bank's cost of funds was .13% for the quarter, compared to a cost of funds of .15% in the prior quarter and .28% in the prior year. Transaction account balances grew by $67 million or 29% from the prior year and non-interest bearing deposits comprised 45% of average total deposits in the second quarter. Earning assets were $550 million in the second quarter of 2012, a 15% increase over the prior year and a 6% increase over the prior quarter. The Bank had no loan charge-offs during the quarter and has no non-accrual loans. During the second quarter a provision for loan losses was recorded in the amount of $240,000, compared to $243,000 in the second quarter of 2011 and $10,000 in the first quarter of 2012.

Non-interest income increased by $337,000 or 76% from the prior year and increased by $82,000 or 12% from the prior quarter. Growth in non-interest income is attributable to growth in both loan related and deposit related fees. The second quarter of 2012 includes gains on sale of securities totaling $116,000, compared to $135,000 in the prior quarter and $683,000 in the prior year.

Non-interest expense increased by $799,000 or 24% over the prior year and increased by $466,000 or 13% over the prior quarter. The second quarter included non-recurring compensation expense for retention and other employee matters totaling $500,000.

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:

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

 
6/30/2012
 
3/31/2012
 
6/30/2011
Assets
unaudited
 
unaudited
 
unaudited
      Cash and due from banks
$ 3,379
 
$ 30,271
 
$ 20,774
       Interest earning deposits in other banks
51,817
 
10,163
 
26,294
            Total cash and cash equivalents 55,196   40,434   47,068
      Certificates of deposit in other banks 498   4,083   9,704
      Investment securities - available-for-sale 144,605   146,980   171,235
      Investment securities - held-to-maturity 57,067   57,412   40,048
      Loans, net of deferred loan fees 340,929   312,308   238,139
      Allowance for loan losses
(4,850)
 
(4,610)
 
(4,000)
      Loans, net of allowance for loan losses 336,079   307,698   234,139
      Bank Owned Life Insurance 13,161   10,553   10,268
      Premises and equipment, net 2,407   2,341   2,367
       Accrued interest receivable and other assets
10,063
 
9,460
 
11,417
            Total Assets
$ 619,076
 
$ 578,961
 
$ 526,246
Liabilities and Shareholders' Equity          
      Noninterest-bearing demand deposits
$ 258,114
 
$ 214,130
 
$ 199,739
      Interest bearing transaction accounts 37,541   34,760   29,130
      Money market, savings and NOW deposits 233,736   248,421   228,386
      Time deposits
21,565
 
22,293
 
20,953
            Total Deposits 550,956   519,604   478,208
      Federal Home Loan Bank borrowings -   5,000   -
      Other liabilities
4,085
 
3,222
 
4,622
            Total Liabilities 555,041   527,826   482,830
Shareholders' Equity          
      Serial Preferred Stock 16,380   16,380   10,471
      Common Stock 42,982   31,008   30,869
      Retained Earnings 3,144   2,382   12
      Accumulated other comprehensive income
1,529
 
1,365
 
2,064
            Total Shareholders' Equity
64,035
 
51,135
 
43,416
Total Liabilities and Shareholders' Equity
$ 619,076
 
$ 578,961
 
$ 526,246

1st Enterprise Bank
Condensed Statements of Operations

 
Three Months Ended
 
unaudited
Interest Income
6/30/2012
 
3/31/2012
 
6/30/2011
      Total interest income
$ 4,798
 
$ 4,532
 
$ 4,029
      Total interest expense
175
 
195
 
322
Net Interest Income 4,623   4,337   3,707
Provision for loan losses
240
 
10
 
243
Net Interest Income After Provision for Loan Losses 4,383   4,327   3,464
Non-interest Income          
Service charges, fees and other income 781   698   444
Gain on sale of investment sercurities
116
 
135
 
683
      Total non-interest Income 897   833   1,127
Non-interest Expenses          
      Compensation and benefit expenses 2,562   2,216   1,829
      Occupancy and equipment expenses 361   359   343
      Data processing 247   214   207
      Professional and legal 240   227   377
      Other expenses
731
 
659
 
585
            Total non-interest expense 4,141   3,675   3,341
Income Before Income Taxes
1,139
 
1,485
 
1,250
Provision (benefit) for income taxes
335
 
436
 
418
Net Income
$ 804
 
$ 1,049
 
$ 832
Preferred dividends & Warrant amortization
41
 
41
 
146
Net Income Applicable to Common Shareholders
$ 763
 
$ 1,008
 
$ 686
Earnings Per Share:          
Basic earnings per share
$ 0.23
 
$ 0.36
 
$ 0.24
Diluted earnings per share
$ 0.22
 
$ 0.34
 
$ 0.23
Average shares outstanding 3,315,021   2,818,500   2,818,500
Average fully diluted shares 3,505,846   2,942,105   2,978,351
Total Shares outstanding at end of period 3,805,039   2,851,500   2,838,500
Capital Ratios:          
Tier 1 leverage ratio 10.6 %   8.9 %   8.1 %
Tier 1 risk-based capital ratio 13.4 %   11.3 %   11.9 %
Total risk-based capital ratio 14.5 %   12.4 %   13.1 %
Book value per share
$ 12.52
 
$ 12.19
 
$ 11.61
Performance Ratios:          
Return on average assets 0.54 %   0.75 %   0.65 %
Return on average common equity 7.29 %   11.76 %   8.42 %
Net interest margin 3.38 %   3.37 %   3.12 %
Efficiency ratio 73.12 %   71.09 %   71.35 %
Average Balances:          
Total Assets
$ 593,877
 
$ 561,010
 
$ 514,033
Earning Assets 550,050   517,307   477,135
Total Loans 325,867   301,047   241,717
Total Deposits 531,125   501,504   468,716
Common Equity 42,078   34,463-   32,662

Contact:
John C. Black
CEO
213-430-7070
Copyright 2012, 1st Enterprise Bank, Inc. All rights reserved.