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1st Enterprise Bank Announces Net Income of $3.2 Million for 2011, an Increase of 81% From 2010

LOS ANGELES, CA--(Marketwire - Feb 15, 2012) - 1st Enterprise Bank ("the Bank") (OTCBB:FENB), a full-service commercial bank serving the Southern California business community, reported net income of $3,152,000 for the year ended December 31, 2011 and total assets of $567 million as of December 31, 2011.

Financial Highlights

  • Net income for 2011 was $3,152,000, an 81% increase over 2010 net income of $1,740,000
  • Net income was $961,000 for the fourth quarter of 2011, a 55% increase over the fourth quarter of 2010 and a 26% increase over the third quarter of 2011
  • Diluted earnings per common share were $.32 for the fourth quarter, compared to $.16 for the fourth quarter of 2010 and $.15 for the third quarter of 2011
  • Total Assets grew by 13% in 2011, ending the year at $567 million
  • Total Loans outstanding grew by 35% in 2011, ending the year at $293 million
  • Total Deposits grew by 13% in 2011, ending the year at $497 million
  • The Bank continues to be well capitalized with Tier 1 Leverage Ratio of 8.5% & Total Risk Based Capital Ratio of 13.2%
  • The Bank continued to have no charged-off or past due loans

John Black, CEO, stated, "We are proud to announce that 1st Enterprise Bank achieved record full-year earnings of $3.2 million in 2011 and record quarterly earnings of $961,000 in the fourth quarter. The Bank continues to have strong growth in both net interest income and non-interest income. During the fourth quarter, net interest income before provision for loan losses increased by 18% over the prior year and 9% over the prior quarter. Non-interest income grew by 49% over the prior year and 12% over the prior quarter. In addition to our outstanding financial performance during 2011, we were also successful in adding four highly experienced bankers to our team. They include two income property lending specialists, a strong C&I relationship manager based in our Orange County Regional Office and an experienced Relationship Manager in our Inland Empire Regional Office. These individuals contributed to our success last year and we look forward to even greater contributions from them in 2012. We continue to aggressively pursue experienced and talented bankers to join our winning team here at 1st Enterprise Bank."

For the three months ended December 31, 2011, net interest income before provision was $4.1 million, an increase of more than $600,000 or 18% compared to the fourth quarter of 2010 and an increase of more than $300,000 or 9% compared to the third quarter of 2011. The growth in net interest income was the result of both growth in earning assets and an increase in net interest margin. Earning assets were $532 million in the fourth quarter of 2011, a 13% increase over the prior year and a 6% increase from the prior quarter. Outstanding loans averaged $269 million during the fourth quarter, which was an increase of 33% over the prior year and 8% over the prior quarter. Net interest margin was 3.04% for the fourth quarter, compared to 2.90% and 2.96% for the prior year and prior quarter, respectively. Non-interest income increased by $253,000 or 49% from the prior year and increased by $84,000 or 12% from the prior quarter. Non-interest expense increased by $311,000 or 10% over the prior year and increased by $81,000 or 3% over the prior quarter. The Bank had no loan charge-offs during 2011 and has no non-accrual loans. During the fourth quarter a provision for loan losses was recorded in the amount of $565,000.

Brian Horton, President, concluded, "These strong results are the collective efforts of a committed team of very talented bankers. With this team and the hiring initiatives we have in place, we look forward to continued growth in the years to come."

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 Financial Condition

 
Three Months Ended
 
12/31/2011
 
9/30/2011
 
12/31/2010
Assets
unaudited
 
unaudited
   
      Total cash and cash equivalents
$ 17,344
 
$ 24,670
 
$ 4,577
      Interest-bearing deposits in banks 13,910   24,187   25,926
      Investment securities – available-for-sale 173,155   193,057   199,293
      Investment securities – held-to-maturity 53,127   49,196   39,616
      Loans, net of deferred loan fees 292,587   255,028   216,919
      Allowance for loan losses
(4,600)
 
(4,035)
 
(3,465)
      Loans, net of allowance for loan losses 287,987   250,993   213,454
      Bank Owned Life Insurance 10,462   10,372   10,062
      Premises and equipment, net 2,464   2,527   2,053
      Accrued interest receivable and other assets
8,612
 
8,138
 
7,303
            Total Assets
$ 567,061
 
$ 563,140
 
$ 502,284
Liabilities and Shareholders' Equity          
      Non-interest-bearing demand deposits
$ 215,355
 
$ 226,851
 
$ 173,146
      Money market, savings and NOW deposits 270,612   261,797   259,600
      Time deposits
10,975
 
12,695
 
8,606
            Total Deposits 496,942   501,343   441,352
      Federal Home Loan Bank borrowings 17,000   -   16,500
      Other liabilities 2,882   12,190   2,351
            Total Liabilities 516,824   513,533   460,203
Shareholders' Equity
50,237
 
49,607
 
42,081
Total Liabilities and Shareholders' Equity
$ 567,061
 
$ 563,140
 
$ 502,284

1st Enterprise Bank
Condensed Statements of Operations

  For the Years Ended
 
Unaudited
 
 
Interest Income
  12/31/2011
 
  12/31/2010
      Total interest income
$ 16,108
 
$ 15,060
      Total interest expense
1,120
 
1,260
Net Interest Income 14,988   13,800
      Provision for loan losses
1,135
 
1,209
Net Interest Income After Provision for Loan Losses 13,853   12,591
Non-interest Income      
Service charges, fees and other income 2,210   1,058
Gain on sale of investment sercurities
1,177
 
335
      Total non-interest Income 3,387   1,393
Non-interest Expenses      
      Compensation and benefit expenses 7,513   6,475
      Occupancy and equipment expenses 1,325   1,120
      Other expenses
4,182
 
3,911
            Total non-interest expense 13,020   11,506
Income Before Income Taxes
4,220
 
2,478
Provision for income taxes
1,068
 
738
Net Income
$ 3,152
 
$ 1,740
Preferred dividends & Warrant amortization
$ 655
 
$ 563
Net Income Applicable to Common Shareholders
$ 2,497
 
$ 1,177
Basic earnings per share
$ 0.89
 
$ 0.42
Diluted earnings per share
$ 0.85
 
$ 0.40
Average fully diluted shares 2,951,985   2,962,872
Common shares outstanding 2,848,500   2,826,000

1st Enterprise Bank
Condensed Statements of Operations

 
Three Months Ended
 
unaudited
Interest Income
12/31/2011
 
9/30/2011
 
12/31/2010
      Total interest income
$ 4,304
 
$ 4,012
 
$ 3,777
      Total interest expense
231
 
260
 
324
Net Interest Income 4,073   3,752   3,453
Provision for loan losses
565
 
35
 
398
Net Interest Income After Provision for Loan Losses 3,508   3,717   3,055
Non-interest Income          
Service charges, fees and other income 769   494   367
Gain on sale of investment sercurities
-
 
190
 
148
      Total non-interest Income 769   684   515
Non-interest Expenses          
      Compensation and benefit expenses 1,912   1,910   1,654
      Occupancy and equipment expenses 352   357   278
    Other expenses
1,041
 
957
 
1,062
            Total non-interest expense 3,305   3,224   2,995
Income Before Income Taxes
972
 
1,177
 
575
Provision (benefit) for income taxes
11
 
413
 
(45)
Net Income
$ 961
 
$ 764
 
$ 620
Preferred dividends & Warrant amortization
$ 41
 
$ 322
 
$ 146
Net Income Applicable to Common Shareholders
$ 920
 
$ 442
 
$ 474
Basic earnings per share
$ 0.33
 
$ 0.16
 
$ 0.17
Diluted earnings per share
$ 0.32
 
$ 0.15
 
$ 0.16
Average fully diluted shares 2,843,250   2,955,842   2,958,186
Common shares outstanding 2,848,500   2,838,500   2,826,000

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