1st Enterprise Bank Reports Record Quarterly and Annual Earnings
- Net Income for 2009 of $2 million
- 4th Quarter Net Income of $921,000
- Total Assets Reach $384 Million
- Total Asset Growth Exceeds $140 million over Prior Year
- Total Deposits Increase 57% from the Prior Year
Los Angeles, CA., January 22, 2010 -- 1st Enterprise Bank ("the Bank") (OTCBB:FENB), a full-service commercial bank serving businesses and their owners throughout Southern California, today reported fourth quarter net income of $921,000, and $2,014,000 for the full year 2009. "The Bank continued to experience strong organic growth from both existing and new customers, which contributed to our record earnings for both the fourth quarter and full year" said John C. Black, CEO. "In this very difficult economic climate, the Bank grew its assets by more than $140 million, while continuing to maintain strong capital ratios and excellent asset quality," added Mr. Black. "The Bank did not incur any loan charge-offs during the fourth quarter or during all of 2009."
Total assets at December 31, 2009 were $384 million, an increase of 57% or $140 million compared to December 31, 2008. Net loans increased by $37 million or 30% and deposits rose by $124 million or 57% over the prior year. The Bank continues to maintain strong capital ratios, with a Tier 1 leverage capital ratio of 10% and a total risk based capital ratio of 17%.
The Bank reported net income (unaudited) of $921,000 for the fourth quarter of 2009, compared to $605,000 in the prior quarter and a loss of $77,000 in the fourth quarter of 2008. On a pretax basis, earnings grew by $351,000 over the prior quarter and by $1,061,000 over the fourth quarter of 2008. As the Bank’s earnings are sufficient to support the recognition of its deferred tax assets, a tax benefit was realized in recent quarters as the valuation allowance on deferred tax assets was eliminated during 2009.
Fourth quarter net income applicable to common shareholders was $850,000, or earnings per diluted share of $0.29, compared to $534,000, or $0.18 per share in the third quarter of 2009. Net income applicable to common shareholders for the full year 2009 totaled $1,791,000 or $0.61 per share, compared to a net loss applicable to common shareholders of $379,000 or $0.14 per share for 2008.
Net interest income after provision for loan losses was $3.1 million for the quarter, a 13% increase over the prior quarter and a 70% increase over the prior year. For the full year 2009, net interest income totaled $10.8 million, a $3.6 million or 51% increase from 2008.
In December of 2009, the Bank issued $6 million of additional preferred stock to the U.S. Treasury under the Capital Purchase Program. This was in addition to the $4.4 million issued in February of 2009. The preferred shares were issued at a 5% dividend for the next five years. This additional capital will allow the Bank to continue its organic growth trajectory and maintain its high level of capitalization.
"We are extremely pleased with these results, both in terms of growth and operating performance," said Mr. Black. "In these turbulent times we are very grateful to be providing a ‘safe harbor’ environment for our customers, employees and shareholders."
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.
John C. Black
Chief Executive Officer