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1st Enterprise Bank Publishes its Statement of Condition for the 2nd Quarter, 2008

June 30, 2008, 6:00 am ET

To Our Shareholders, Customers and Friends of 1st Enterprise Bank,

We are pleased to provide you with our report for the quarter ended June 30, 2008. The second quarter of 2008 represented the completion of two full years of operation for 1st Enterprise Bank and reflected continued solid growth in both loan and deposit totals. We also experienced significant improvement in our operating performance as compared to the prior quarter and to the same period last year.

During this turbulent period in the financial services industry and uncertain economic climate we are very pleased to report that we are in very sound financial condition. As of quarter end we had no past due or delinquent loans, nor have we experienced any such problems in our loan portfolio since the
inception of the bank. In total, our asset quality remains very high and is representative of the quality of our customer base. Our liquidity and capital positions are both very strong and significantly above all regulatory standards.

Our net loss for the quarter narrowed to $17,000 as compared to $219,000 for the prior quarter and $486,000 for the same quarter last year. After adjusting for various non-cash charges, we generated $349,000 in positive cash flow during the quarter, and $535,000 for the six months ended June 30th, 2008.

At June 30, 2008 our loans outstanding, net of reserves of $1.1 million, were $88.2 million, an increase of $18.5 million, or 27%, over year end 2007. Total deposits stood at $178.3 million, an increase of $14.7 million, or 9%, over year end 2007. Shareholders’ equity was $25.5 million at quarter end, up $181,000 over year end 2007. Our Tier 1 risk-based capital ratio at quarter end was 18.8%, more than three times the 6% level required to be considered “well capitalized” by the regulatory agencies.

The first half of 2008 has been very positive for 1st Enterprise Bank, as reflected in the above results. Going forward we will continue to add experienced bankers to our staff and will broaden and enhance our banking services in order to better serve our customers. Through the dedication and effort of our highly talented staff we continue to develop new banking relationships with highly successful businesses throughout Southern California. We look forward to the second half of this year with optimism and with continued focus on building the bank in a safe, sound and secure manner. We wish to thank all of our shareholders, customers and friends for their continued confidence and support.

Sincerely,

John C. Black
Chief Executive Officer

K. Brian Horton
President

1st Enterprise Bank Condensed Statements of
Financial Condition (In thousands)



Contact:
John C. Black
Chief Executive Officer
213-430-7000
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