1st Enterprise Bank Grows to $310 Million in Total Assets
Friday, July 17, 2009, 6:45 pm ET
- Total Assets of $310 Million at Bank's 3rd Year Anniversary
- Quarterly Net Income of $377,000
- Total Asset Growth Exceeds $100 million over Prior Year
- Net Loans Increase 52% from the Prior Year
- Total Deposits Increase 54% from the Prior Year
- Net Interest Income Rises 48% from the Prior Year
- Strong Capital Position and Outstanding Asset Quality
1st Enterprise Bank (the "Bank") (OTC.BB:FENB - News), a full-service commercial bank serving businesses and their owners throughout Southern California, today announced results for the quarter ended June 30, 2009. Approximately three years after the Bank was formed, 1st Enterprise reported that total assets reached $310 million and total deposits stood at $275 million at quarter end, both record levels. "The tremendous growth achieved by the Bank in its first three years is a result of the outstanding quality of service provided by the Bank's employees, an exceptional customer base and its strong overall financial condition," said John C. Black, CEO.
The Bank reported net income (unaudited) of $377,000 for the second quarter of 2009, compared to $111,000 in the prior quarter and a loss of ($17,000) in the second quarter of 2008. The Bank reported pre-tax income of $185,000 for the second quarter, which was an $85,000 increase from the first quarter of 2009. Core earnings (before loan loss provisions, stock option expense, gain on sale, special FDIC assessment and taxes) for the second quarter of 2009 were $564,000, an increase of $222,000 from the first quarter of 2009 and an increase of $239,000 from the second quarter of 2008.
Net interest income after provision for loan losses was $2.57 million for the quarter compared to $2.36 million in the first quarter of 2009 and $1.74 million in the second quarter of 2008. Provision for loan losses was $128,000 in the quarter compared to $32,000 in the prior quarter and $114,000 in the second quarter of 2008. Average earning assets grew by 13% over the prior quarter and 46% over the prior year. The Bank's net interest margin was 4.05% for the quarter, compared to 4.10% for the same quarter of last year.
Non-interest income increased by $138,000 from the prior quarter, as a result of higher deposit fees and a gain on sale of securities. Growth in non-interest expense was mainly due to increased FDIC insurance expense resulting from deposit growth and an accrual of $140,000 for the special FDIC assessment levied on all banks.
Total assets at June 30, 2009 were $310 million, up 18% or $48 million compared to $262 million at March 31, 2009 and up $104 million or 51% compared to $205 million at June 30, 2008. Net loans increased 52% to $134 million at quarter end compared to $88 million the prior year. Total deposits rose 54% to $275 million at quarter end compared to $178 million the prior year and increased by $49 million over the prior quarter.
"The Bank has reported positive net income for the past two quarters as a result of continued strong organic growth and excellent asset quality," said John C. Black, CEO. "Since the Bank's inception, the loan portfolio has had no non-performing loans, past due loans or loan charge-offs. Further, our investment portfolio continues to consist of high quality securities, with no impairments of any nature."
1st Enterprise Bank continued to be well capitalized by all regulatory standards. As of June 30, 2009 the bank had a Tier 1 leverage capital ratio of 11% and a total risk based capital ratio of greater than 16%. The Bank continues to maintain a very strong liquidity position with more than 50% of its assets in cash and investments. The bank's investments mostly consist of securities issued or guaranteed by government agencies or government-sponsored agencies. The Bank continues to be funded solely from core deposits, including $107 million in non-interest bearing accounts representing approximately 40% of total deposits.
"We are extremely proud of these results and the progress we have made over the past twelve months," said Mr. Black. "In addition to our highly successful Los Angeles regional office, our Orange County regional office has contributed significantly to our growth and operating performance over this period. We have been very successful in our recruiting efforts for talented bankers both in our Orange County and Los Angeles offices, and our Inland Empire regional office is on schedule to open in early August. We have a very experienced and capable staff in place for that regional office and we look forward to it contributing to our continued strong growth. During one of the most challenging banking environments in history, 1st Enterprise Bank has established itself as a premier provider of commercial banking services to businesses and their owners throughout Southern California."
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.
1st Enterprise Bank Condensed Statements of
Financial Condition (In thousands)
John C. Black
Chief Executive Officer