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1st Enterprise Bank Announces Net Income of
$1 Million for the 1st Quarter of 2013

LOS ANGELES, CA--(Marketwire - Apr 18, 2013) - 1st Enterprise Bank ("the Bank") (OTC.BB:FENB), an independent full-service commercial bank serving the Southern California business community, reported net income of $1,017,000 for the quarter ending March 31, 2013.

Financial Highlights

  • Total Assets grew by 21%, from $579 million at March 31, 2012 to $702 million at March 31, 2013
  • Total Loans outstanding grew by $113 million or 36%, from $312 million at March 31, 2012 to $425 million at March 31, 2013
  • Total Deposits grew by $82 million or 16%, from $520 million at March 31, 2012 to $601 million at March 31, 2013
  • Net interest income of $5.2 million was the highest in the Bank's history and 20% higher than the first quarter of 2012
  • Income before taxes, loan loss provision and gain on sale of securities was $1.98 million for the quarter, a 19% increase over the prior quarter and a 46% increase over the prior year
  • Net Income applicable to common shareholders was $976,000 for the first quarter of 2013, compared to $1,189,000 for the fourth quarter of 2012 and $1,008,000 for the first quarter of 2012
  • Diluted earnings per common share was $.24 for the quarter, compared to $.29 in the fourth quarter of 2012 and $.34 in the first quarter of 2012

"The Bank's financial results for the first quarter demonstrate our continued focus on balancing strong organic growth with quality earnings," said John Black, CEO. "Our record levels of net interest income and 46% growth in earnings before taxes, loan loss provision and gain on sale of securities demonstrate the quality of the Bank's earnings growth." Brian Horton, President added, "we are very pleased to have added a significant number of new clients in the quarter, adding to our diverse base of customer relationships throughout Southern California. The Bank is also excited to announce the opening of its fourth office on March 1st, located in the Warner Center area of Woodland Hills."

For the three months ended March 31, 2013, net interest income before provision was $5.2 million, an increase of 20% compared to the first quarter of 2012 and an increase of 2% compared to the fourth quarter of 2012. The year-over-year growth in net interest income was the result of growth in earning assets offsetting a decline in net interest margin. Earning assets were $653 million in the first quarter of 2013, a 26% or $136 million increase over the prior year. The net interest margin was 3.23% during the first quarter of 2013, compared to 3.37% for the prior year. The decrease in net interest margin was the result of declining loan and investment yields due to the continuation of the current low rate environment. The growth in net interest income over the prior quarter was the result of an increase in the net interest margin from 3.13% to 3.23%. This increase resulted from the yield on earning assets increasing by 0.10% from the prior quarter as loan balances grew from 60% of earning assets to 63%, while balances at the Federal Reserve declined from 5% to 1% of earning assets. The provision for loan loss was $542,000 for the first quarter of 2013, a $532,000 increase year over year and a $29,000 sequential increase. Net loan charge-offs during the first quarter of 2013 totaled $349,000, compared to zero charge-offs in the prior year and net charge-offs of $598,000 in the prior quarter. The remaining balance of a non-accrual loan at December 31, 2012 was charged-off during the current quarter resulting in no non-accrual loans at March 31, 2013.

Non-interest income, excluding gain on sale, was $749,000 for the quarter, which was a 7% increase year over year and a 2% sequential increase. Growth in non-interest income was generally due to increased deposit related fees. There was no gain on sale of securities during the first quarter of 2013. The first quarter and the fourth quarter of 2012 included gain on sale of securities totaling $135,000 and $629,000, respectively.

Non-interest expense increased by $289,000 or 8% over the prior year and decreased by $208,000 or 5% over the prior quarter.

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 and an LPO in Woodland Hills, 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

 
unaudited
Assets
3/31/2013
 
12/31/2012
 
3/31/2012
      Cash and due from banks
$ 16,393
 
$ 14,520
 
$ 30,271
      Interest earning deposits in other banks
14,560
 
23,386
 
10,163
            Total cash and cash equivalents


30,953   37,906   40,434
      Certificates of deposit in other banks 2,490   2,490   4,083
      Investment securities - available-for-sale 164,580   180,491   146,980
      Investment securities - held-to-maturity 55,753   56,026   57,412
      Loans, net of deferred loan fees 425,009   408,767   312,308
      Allowance for loan losses
(5,703)
 
(5,510)
 
(4,610)
      Loans, net of allowance for loan losses 419,306   403,257   307,698
      Bank owned life insurance 16,017   13,389   10,553
      Premises and equipment, net 2,700   2,256   2,341
      Accrued interest receivable and other assets
9,985
 
10,323
 
9,460
            Total Assets


$ 701,784
 
$ 706,138
 
$ 578,961
Liabilities          
      Non-interest-bearing demand deposits
$ 268,584
 
$ 286,800
 
$ 214,130
      Interest bearing transaction accounts 35,250   39,428   34,760
      Money market and savings accounts 278,610   274,088   248,421
      Time deposits
18,996
 
11,784
 
22,293
            Total Deposits 601,440   612,100   519,604
      Federal Home Loan Bank Borrowings 30,500   24,000   5,000
      Other liabilities
3,484
 
4,647
 
3,222
            Total Liabilities


635,424   640,747   527,826
Shareholders' Equity          
      Serial Preferred Stock 16,380   16,380   16,380
      Common Stock 43,048   43,034   31,008
      Retained Earnings 5,918   4,942   2,382
      Accumulated other comprehensive income
1,014
 
1,035
 
1,365
            Total Shareholders' Equity
66,360
 
65,391
 
51,135
Total Liabilities and Shareholders' Equity
$ 701,784
 
$ 706,138
 
$ 578,961

1st Enterprise Bank
Condensed Statements of Operations

 
Three Months Ended
 
unaudited
Interest Income
3/31/2013
 
12/31/2012
 
3/31/2012
      Interest and fees on loans
$ 4,428
 
$ 4,291
 
$ 3,430
      Interest on investment securities 952   963   1,091
      Other interest income
10
 
23
 
11
            Total interest income 5,390   5,277   4,532
Interest Expense
192
 
174
 
195
Net Interest Income 5,198   5,103   4,337
Provision for loan losses
542
 
513
 
10
Net Interest Income After Provision for Loan Losses

4,656   4,590   4,327
Non-interest Income          
Service charges, fees and other income 749   733   698
Gain on sale of investment sercurities
0
 
629
 
135
            Total non-interest Income


749   1,362   833
Non-interest Expenses          
      Compensation and benefit expenses 2,431   2,543   2,216
      Occupancy and equipment expenses 374   364   359
      Data processing 256   268   215
      Professional and legal 328   318   361
      Other operating expenses
575
 
679
 
524
            Total non-interest expense


3,964   4,172   3,675
Income Before Income Taxes
1,442
 
1,781
 
1,485
Provision for income taxes
425
 
550
 
436
Net Income
$ 1,017
 
$ 1,230
 
$ 1,049
Preferred dividends & Warrant amortization
41
 
41
 
41
Net Income Applicable to Common Shareholders


$ 976
 
$ 1,189
 
$ 1,008
Earnings Per Share          
Basic earnings per share
$ 0.26
 
$ 0.31
 
$ 0.36
Diluted earnings per share
$ 0.24
 
$ 0.29
 
$ 0.34
Average shares outstanding 3,793,150   3,791,905   2,818,500
Average fully diluted shares 4,062,894   4,039,003   2,942,105
Total Shares outstanding at end of period


3,815,089   3,815,089   2,851,500
Capital Ratios          
Tier 1 leverage ratio 9.4 %   9.4 %   8.9 %
Tier 1 risk-based capital ratio 11.9 %   12.1 %   11.3 %
Total risk-based capital ratio 13.0 %   13.2 %   12.4 %
Book value per share

$ 13.10
 
$ 12.85
 
$ 12.19
Performance Ratios          
Return on average assets 0.59 %   0.71 %   0.75 %
Return on average common equity 7.95 %   9.56 %   11.76 %
Net interest margin 3.23 %   3.13 %   3.37 %
Cost of Funds 0.12 %   0.11 %   0.15 %
Efficiency ratio

66.70 %   70.16 %   71.09 %
Average Balances          
Total Assets
$ 695,576
 
$ 689,361
 
$ 561,010
Earning Assets 653,274   648,523   517,307
Total Loans 415,003   389,321   301,047
Total Securities 230,343   222,696   214,164
Total Deposits 606,208   617,678   501,504
Common Equity 49,812   48,692   34,463

Contact:
John C. Black
CEO
213-430-7070

 

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