1st Enterprise Bank Announces Strong Growth in Both Total Assets and Core Deposits for the Period Ended December 31, 2006
Monday February 26, 8:00 am ET
LOS ANGELES, CA--(MARKET WIRE)--Feb 26, 2007 -- 1st Enterprise Bank (the Bank) (OTC BB:FENB.OB - News), today announced results for the period ended December 31, 2006. After raising $27.5 million in its initial common stock offering, the Bank commenced operations in its downtown Los Angeles Headquarters office on July 3, 2006.
The Bank reported total assets at December 31, 2006 of $114.5 million, an increase of $54.4 million or 90.5% over the $60.1 million at September 30, 2006. Total deposits grew to $78.2 million, an increase of $44.7 million or 133.4% over the September 30, 2006 figure of $33.5 million. Also at December 31, 2006, total net loans were $21.3 million, total investment securities were $23.9 million and Federal Funds Sold was $62.7 million, resulting in increases of 85.7%, 72.8% and 109.2% respectively, over the September 30, 2006 numbers of $11.4 million, $13.8 million, and $30.0 million, respectively. Total equity at December 31, 2006 was $25.5 million. The Bank reported a net operating loss for the three month period ended December 31, 2006 of $634 thousand, a reduction of $378 thousand or 37.4% from the $1,012 thousand loss incurred for the period from the opening of the Bank on July 3, 2006 to September 30, 2006. For the periods ended at December 31, 2006 and September 30, 2006, the provisions for loan losses were $118 thousand and $145 thousand, respectively, and the expensing of stock options granted were $181 thousand and $215 thousand, respectively. The loan loss reserve represented approximately 1.22% of loans outstanding at December 31, 2006.
The total asset number of $114.5 million included $10 million of investment securities purchased in December that did not settle until early in January 2007. Accordingly, the $10 million is reflected on the year end financial statements in Investments and in Other Liabilities. Trade-date accounting rules require the recording of the securities on the date the trades were made. Total assets and liabilities were reduced by $10 million each when the trades were settled in early January 2007.
Chief Executive Officer John C. Black stated, "We are very pleased with the impressive growth of the Bank to date. Our growth has been achieved through the establishment of 'core' banking relationships with high quality businesses throughout Los Angeles and Orange Counties. Client acceptance of the Bank's business model and the services provided by the Bank has been overwhelmingly positive and has fueled this rapid growth. We are grateful for the trust and confidence our clients have placed in us and we look forward to serving their banking needs over many years to come."
"The growth results exceeded our projections and our operating loss was less than our projections," said President K. Brian Horton. "The Bank's performance in its first six months of operations is well within the norms of other de novo banks in California and the Bank is well positioned to continue to grow and serve its clientele in the Los Angeles and Orange County markets."
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