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1st Enterprise Bank Reports Record High Assets and Double Digit Loan and Deposit Growth for the Quarter Ending September 30, 2011

LOS ANGELES, CA – (Marketwire - Oct 24, 2011) – 1st Enterprise Bank ("the Bank") (OTC.BB:FENB - News),a full-service commercial bank serving the Southern California business community, reported total assets of $563 million as of September 30, 2011, an all time high for the Bank. In addition, outstanding loans increased by $57 million or 29% over the prior year and deposits increased by $58 million or 13% over the prior year. Deposits continue to be generated from "core relationships" and more than 45% of total deposits are non-interest bearing demand accounts. "We are extremely pleased with the level of growth, especially in the lending area, that we have produced over the past quarter and past twelve months. It has come as a result of the marketing efforts of our talented banking staff and from a steady stream of quality referrals from our satisfied customers," said John Black, CEO. "It is very rewarding and a strong endorsement of our operating philosophy, to be able to sustain these growth rates and attract such high quality banking customers during this challenging business climate."

Net income was $764,000 for the third quarter of 2011, a $362,000 increase over the third quarter of 2010. "During the third quarter, the Bank demonstrated the ability to generate strong earnings growth during a period of sustained low interest rates and limited economic growth, while continuing to maintain excellent asset quality," said Mr. Black. "As of September 30, 2011 and throughout the third quarter the Bank had no past due loans and continued to incur no loan losses or impairments within its investment portfolio. We continue to execute on our strategies of pursuing quality commercial banking relationships, recruiting experienced and talented bankers, providing highly personalized service and adhering to safe and sound banking practices. This approach to business banking has proven itself over many years and many economic cycles to produce consistent growth and return for our Bank and for our business model, and over the long term to be of significant benefit to all of our stakeholders."

The Bank continued to be well capitalized and highly liquid during the quarter. Our Tier 1 leverage capital ratio for the quarter was 8.7% and the total risk based capital ratio was 14%. On September 1, the Bank further strengthened its balance sheet through a capital investment of $16.4 million in the Bank's preferred stock from the U.S. Treasury Department's Small Business Lending Fund ("the SBLF"). Simultaneously with the issuance under SBLF, the Bank redeemed all 10,620 shares of preferred stock that was previously issued to the U.S. Treasury under the Capital Purchase Program ("CPP"). The net result of issuing preferred stock under the SBLF and redeeming the preferred stock under CPP was an increase in the Bank's Tier 1 capital of approximately $5.8 million and the reduction of its annual preferred dividend rate from 5% to 1%.

The Bank reported income applicable to common shareholders of $442,000 for the quarter ending September 30, 2011, compared to $256,000 for the quarter ending September 30, 2010. In connection with the redemption of the preferred stock issued under the CPP program, the Bank accelerated the amortization of the remaining difference between the par-amount and the initially recorded fair value of the preferred shares. This deemed dividend reduced the amount of net income available to common shareholders for the current quarter. Basic and diluted earnings per share were $0.16 and $0.15 respectively, which compares to basic and diluted earnings per share of $0.09 for the prior year. Tangible book value per common share increased to $11.70 at quarter end. "We continue to perform very favorably against essentially all independent banks in California and all standard industry measurements. At the same time, we are continuing to strive for ever improving performance and sustainable quality growth rates. We believe that we have established ourselves as a leader in our markets and as a clear alternative and high quality environment for customers and for our staff," said Brian Horton, President. "We look forward to the future with confidence and enthusiasm, and will continue to capitalize on new business and new staffing opportunities that match our strategies as we grow the Bank."

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 clients' 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 Operations

Three Months Ended
$ 9/30/2011
$ 6/30/2011
$ 6/30/2010
            Total interest income 4,012   4,029   3,997
            Total interest expense
Net Interest Income 3,752   3,707   3,647
Provision for loan losses
Net Interest Income After Provision for Loan Losses 3,717   3,464   3,284
Non-interest Income
Non-interest Expenses
684   1,127   285
      Compensation and benefit expenses 1,910   1,829   1,619
      Occupancy and equipment expenses 357   343   284
      Other expenses
            Total non-interest expense 3,224   3,341   2,900
Income Before Income Taxes
Provision for income taxes
Net Income
$ 764
$ 832
$ 402
Preferred dividends
$ 322
$ 146
$ 146
Net Income Applicable to Common Shareholders
$ 442
$ 686
$ 256

1st Enterprise Bank
Condensed Statements of Financial Condition

      Total cash and cash equivalents
$ 24,670
$ 20,774
$ 9,870
      Interest-bearing deposits in banks 24,187   35,998   23,698
      Investment securities - available-for-sale 193,057   171,235   227,106
      Investment securities - held-to-maturity 49,196   40,048   25,958
      Loans, net of deferred loan fees 255,028   238,139   198,221
      Allowance for loan losses
      Loans, net of allowance for loan losses 250,993   234,139   195,154
      Bank Owned Life Insurance 10,372   10,268   -
      Premises and equipment, net 2,527   2,367   2,138
      Accrued interest receivable and other assets
            Total Assets
$ 563,140
$ 526,246
$ 491,027
Liabilities and Shareholders' Equity          
      Noninterest-bearing demand deposits
$ 226,851
$ 199,739
$ 182,757
      Money market accounts, savings and NOW deposits 261,797   257,516   248,263
      Time deposits
            Total Deposits 501,343   478,208   443,020
      Other liabilities
            Total Liabilities 513,533   482,830   450,281
Shareholders' Equity
Total Liabilities and Shareholders' Equity
$ 563,140
$ 526,246
$ 491,027
Tangible Book Value Per Share
$ 11.70
$ 11.61
$ 10.75

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