1st Enterprise Bank Achieves Total Assets in Excess of $150 Million in Its First Year of Operation
Friday July 20, 6:00 am ET
LOS ANGELES, CA--(MARKET WIRE)--Jul 20, 2007 -- 1st Enterprise Bank (the Bank) (OTC BB:FENB.OB - News) today announced results for the 2nd quarter of 2007 ended June 30, 2007.
1st Enterprise Bank, which opened for business on July 3, 2006, has continually experienced strong growth since opening and through the 2nd quarter of 2007. At June 30, 2007 total assets had grown to $151.1 million, an increase of $19.1 million, or 14.5%, over March 31, 2007, and $36.6 million, or 32.0% over year end 2006. Net loans were up from the 1st quarter $15.8 million, or 64.1%, to $40.5 million. The Bank's investments were $42.5 million, an increase of $7.1 million, or 20.0% over March 31, 2007, and $18.6 million, or 77.9%, over the prior year end. Total deposits stood at $125.1 million, an increase of $19.3 million, or 18.2% over March 31, 2007, and $46.8 million, or 59.9%, over the year end 2006 level. Non-interest bearing DDA increased $879 thousand to $40.6 million, while Money Market, NOW and Savings Accounts increased $17.0 million, or 26.9%, to $80.2 million. Shareholders' equity stood at $24.9 million at quarter end. The net loss for the 2nd quarter of 2007 was $486 thousand and the year to date loss was $910 thousand. The loss in the 2nd quarter was $62 thousand more than the 1st quarter loss primarily due to a $139 thousand increased provision for loan losses resulting from the strong loan growth. The year to date net loss included $359 thousand of stock-based compensation expense, and a $278 thousand addition to the loan loss and off-balance sheet exposure reserves. It is important to note that, for the first time, the Bank achieved profitability on a cash basis in June 2007 after adding back all non-cash expenses.
"We are extremely pleased with the results of the second quarter and the year to date growth of the Bank, especially in the area of core deposit growth," said John C. Black, CEO of 1st Enterprise Bank. "We are committed to fulfilling the business market's need for a full service, locally owned and managed commercial business bank like ours. The highly experienced and capable staff that we have assembled here at 1st Enterprise Bank provides outstanding service to our clientele and takes a personal interest in the success of their businesses. Our results thus far provide strong validation of our business model and our understanding of our market niche."
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.
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.
K. Brian Horton
John C. Black