1ST ENTERPRISE BANK 
By LOS ANGELES, CA -- (MARKET WIRE) -- 10/24/11 -- 1st Enterprise Bank ("the Bank") (OTCBB: FENB), a full-service commercial bank serving the Southern California business community, reported total assets of $563 million as of September 30, 2011, an all time high for the Bank. In addition, outstanding loans increased by $57 million or 29% over the prior year and deposits increased by $58 million or 13% over the prior year. Deposits continue to be generated from "core relationships" and more than 45% of total deposits are non-interest bearing demand accounts. "We are extremely pleased with the level of growth, especially in the lending area, that we have produced over the past quarter and past twelve months. It has come as a result of the marketing efforts of our talented banking staff and from a steady stream of quality referrals from our satisfied customers," said John Black, CEO. "It is very rewarding and a strong endorsement of our operating philosophy, to be able to sustain these growth rates and attract such high quality banking customers during this challenging business climate."
Net income was $764,000 for the third quarter of 2011, a $362,000 increase over the third quarter of 2010. "During the third quarter, the Bank demonstrated the ability to generate strong earnings growth during a period of sustained low interest rates and limited economic growth, while continuing to maintain excellent asset quality," said Mr. Black. "As of September 30, 2011 and throughout the third quarter the Bank had no past due loans and continued to incur no loan losses or impairments within its investment portfolio. We continue to execute on our strategies of pursuing quality commercial banking relationships, recruiting experienced and talented bankers, providing highly personalized service and adhering to safe and sound banking practices. This approach to business banking has proven itself over many years and many economic cycles to produce consistent growth and return for our Bank and for our business model, and over the long term to be of significant benefit to all of our stakeholders."
The Bank continued to be well capitalized and highly liquid during the quarter. Our Tier 1 leverage capital ratio for the quarter was 8.7% and the total risk based capital ratio was 14%. On September 1, the Bank further strengthened its balance sheet through a capital investment of $16.4 million in the Bank's preferred stock from the U.S. Treasury Department'sSmall Business Lending Fund ("the SBLF"). Simultaneously with the issuance under SBLF, the Bank redeemed all 10,620 shares of preferred stock that was previously issued to the U.S. Treasury under the Capital Purchase Program ("CPP"). The net result of issuing preferred stock under the SBLF and redeeming the preferred stock under CPP was an increase in the Bank's Tier 1 capital of approximately $5.8 million and the reduction of its annual preferred dividend rate from 5% to 1%.
The Bank reported income applicable to common shareholders of $442,000 for the quarter ending September 30, 2011, compared to $256,000 for the quarter ending September 30, 2010. In connection with the redemption of the preferred stock issued under the CPP program, the Bank accelerated the amortization of the remaining difference between the par-amount and the initially recorded fair value of the preferred shares. This deemed dividend reduced the amount of net income available to common shareholders for the current quarter. Basic and diluted earnings per share were $0.16 and $0.15 respectively, which compares to basic and diluted earnings per share of $0.09 for the prior year. Tangible book value per common share increased to $11.70 at quarter end. "We continue to perform very favorably against essentially all independent banks in California and all standard industry measurements. At the same time, we are continuing to strive for ever improving performance and sustainable quality growth rates. We believe that we have established ourselves as a leader in our markets and as a clear alternative and high quality environment for customers and for our staff," said Brian Horton, President. "We look forward to the future with confidence and enthusiasm, and will continue to capitalize on new business and new staffing opportunities that match our strategies as we grow the Bank."
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 clients'
success. For more information on 1st Enterprise Bank, please
visit
www.1stenterprisebank.com.
Forward-Looking Statement:
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 Operations
$000 Three Months Ended
-------------------------------------
9/30/2011 6/30/2011 9/30/2010
----------- ----------- -----------
Total interest income $ 4,012 $ 4,029 $ 3,997
Total interest expense 260 322 350
----------- ----------- -----------
Net Interest Income 3,752 3,707 3,647
Provision for loan losses 35 243 363
----------- ----------- -----------
Net Interest Income After Provision
for Loan Losses 3,717 3,464 3,284
Non-interest Income 684 1,127 285
Non-interest Expenses
Compensation and benefit expenses 1,910 1,829 1,619
Occupancy and equipment expenses 357 343 284
Other expenses 957 1,169 997
----------- ----------- -----------
Total non-interest expense 3,224 3,341 2,900
Income Before Income Taxes 1,177 1,250 669
----------- ----------- -----------
Provision for income taxes 413 418 267
----------- ----------- -----------
Net Income $ 764 $ 832 $ 402
=========== =========== ===========
Preferred dividends $ 322 $ 146 $ 146
----------- ----------- -----------
Net Income Applicable to Common
Shareholders $ 442 $ 686 $ 256
=========== =========== ===========
1st Enterprise Bank
Condensed Statements of Financial Condition
$000
Unaudited Unaudited Unaudited
----------- ----------- -----------
Assets 9/30/2011 6/30/2011 9/30/2010
----------- ----------- -----------
Total cash and cash equivalents $ 24,670 $ 20,774 $ 9,870
Interest-bearing deposits in banks 24,187 35,998 23,698
Investment securities - available-
for-sale 193,057 171,235 227,106
Investment securities - held-to-
maturity 49,196 40,048 25,958
Loans, net of deferred loan fees 255,028 238,139 198,221
Allowance for loan losses (4,035) (4,000) (3,067)
----------- ----------- -----------
Loans, net of allowance for loan
losses 250,993 234,139 195,154
Bank Owned Life Insurance 10,372 10,268 -
Premises and equipment, net 2,527 2,367 2,138
Accrued interest receivable and
other assets 8,138 11,417 7,103
----------- ----------- -----------
Total Assets $ 563,140 $ 526,246 $ 491,027
=========== =========== ===========
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits $ 226,851 $ 199,739 $ 182,757
Money market accounts, savings and
NOW deposits 261,797 257,516 248,263
Time deposits 12,695 20,953 12,000
----------- ----------- -----------
Total Deposits 501,343 478,208 443,020
Other liabilities 12,190 4,622 7,261
----------- ----------- -----------
Total Liabilities 513,533 482,830 450,281
Shareholders' Equity 49,607 43,416 40,746
----------- ----------- -----------
Total Liabilities and Shareholders'
Equity $ 563,140 $ 526,246 $ 491,027
=========== =========== ===========
Tangible Book Value Per Share $ 11.70 $ 11.61 $ 10.75
----------- ----------- -----------
Contact: John C. Black CEO 213-430-7000
Source: 1st Enterprise Bank