1ST ENTERPRISE BANK 
By LOS ANGELES, CA -- (Marketwired) -- 10/18/13 -- 1st Enterprise Bank ("the Bank") (OTCQB: FENB), an independent full-service commercial bank serving the Southern California business community, reported net income of $1,388,000 for the quarter ending September 30, 2013.
Financial Highlights
- Total Assets grew by 11%, from $662 million at September 30, 2012 to $731 million at September 30, 2013
- Total Loans outstanding grew by $83 million or 22%, from $381 million at September 30, 2012 to $464 million at September 30, 2013
- Total Deposits grew by 6%, from $592 million at September 30, 2012 to $629 million at September 30, 2013
- Net interest income of $5.5 million was the highest in the Bank's history and 14% higher than the third quarter of 2012
- Net Income applicable to common shareholders was $1,347,000 for the third quarter of 2013, compared to $608,000 for the third quarter of 2012
- Income before taxes, loan loss provision and gain on sale of securities was $2,119,000 for the quarter, a 29% increase over the prior year
- Diluted earnings per common share was $.33 for the quarter, compared to $.15 in the third quarter of 2012
"Our third quarter earnings reflect a significant improvement over last year, and our continuing momentum in terms of both growth and return," said John Black, CEO. "We are very pleased that the Bank's return on common equity exceeded 10% for the second consecutive quarter."
For the three months ended September 30, 2013, net interest income before provision was $5.5 million, an increase of 14% compared to the third quarter of 2012 and an increase of 1% compared to the second quarter of 2013. The year-over-year growth in net interest income was the result of both earning asset and net interest margin growth. Earning assets were $672 million in the third quarter of 2013, an 8% or $51 million increase over the prior year. The net interest margin was 3.23% during the third quarter of 2013, compared to 3.08% for the prior year. This increase resulted from the yield on earning assets increasing from the prior quarter as loan balances grew from 57% of earning assets, to 67%. The 1% increase over the second quarter of 2013 was due to growth in earning assets of $16 million that was offset by a decline in the net interest margin from 3.32% to 3.23%. The decrease in net interest margin was the result of declining loan and investment yields due to the continuation of the current low rate environment. The provision for loan loss was $4,000 for the third quarter of 2013, a $741,000 decrease year over year and a $62,000 sequential decrease. The Bank had net recoveries of $11,000 in the third quarter and $21,000 during the second quarter of 2013. As of September 30, 2013 there were no non-accrual loans.
Non-interest income, excluding gain on sale, was $904,000 for the quarter, which was a $23,000 decrease year over year and a $27,000 sequential increase.
Non-interest expense increased over the prior year and prior quarter by $174,000 and $131,000, respectively. Growth in non-interest expense was generally due to staff additions during the third quarter.
"We are very proud of these results and improving metrics, which are the result of the efforts of our very talented staff," said Brian Horton, President. "We thank our shareholders and customers for their continued support of our vision of being the recognized leader in the field of business banking."
About 1st Enterprise Bank
Founded in 2006, 1st Enterprise Bank is a full service independent 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 and an LPO in Woodland Hills, 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.
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 Financial Condition
$000 Unaudited Unaudited Unaudited
----------- ----------- -----------
Assets 9/30/2013 6/30/2013 9/30/2012
----------- ----------- -----------
Cash and due from banks $ 25,030 $ 16,786 21,058
Interest earning deposits in other
banks 11,708 12,036 15,357
----------- ----------- -----------
Total cash and cash equivalents 36,738 28,822 36,415
Certificates of deposit in other
banks 2,241 2,490 498
Investment securities - available-
for-sale 144,462 154,689 167,518
Investment securities - held-to-
maturity 61,274 61,931 56,114
Loans, net of deferred loan fees 463,998 444,861 381,307
Allowance for loan losses (5,805) (5,790) (5,595)
----------- ----------- -----------
Loans, net of allowance for loan
losses 458,193 439,071 375,712
Bank owned life insurance 16,281 16,148 13,276
Premises and equipment, net 2,536 2,647 2,274
Accrued interest receivable and
other assets 9,612 10,313 10,022
----------- ----------- -----------
Total Assets $ 731,337 $ 716,111 $ 661,829
=========== =========== ===========
Liabilities
Non-interest-bearing demand
deposits $ 298,662 $ 274,167 $ 273,197
Interest bearing transaction
accounts 36,841 38,076 43,884
Money market and savings accounts 282,465 271,377 264,056
Time deposits 11,524 16,879 10,739
----------- ----------- -----------
Total Deposits 629,492 600,499 591,876
Federal Home Loan Bank Borrowings 30,000 45,000 -
Other liabilities 3,501 3,384 4,913
----------- ----------- -----------
Total Liabilities 662,993 648,883 596,789
Shareholders' Equity
Serial Preferred Stock 16,380 16,380 16,380
Common Stock 43,109 43,068 43,008
Retained Earnings 8,634 7,287 3,752
Accumulated other comprehensive
income 221 494 1,900
----------- ----------- -----------
Total Shareholders' Equity 68,344 67,228 65,040
----------- ----------- -----------
Total Liabilities and Shareholders'
Equity $ 731,337 $ 716,111 $ 661,829
=========== =========== ===========
1st Enterprise Bank
Condensed Statements of Operations Three Months Ended
-------------------------------------
$000 Unaudited
-------------------------------------
9/30/2013 6/30/2013 9/30/2012
----------- ----------- -----------
Interest Income
Interest and fees on loans $ 4,780 $ 4,724 $ 3,957
Interest on investment securities 855 879 986
Other interest income 11 7 36
----------- ----------- -----------
Total interest income 5,646 5,610 4,979
Interest Expense 180 183 179
----------- ----------- -----------
Net Interest Income 5,466 5,427 4,800
Provision for loan losses 4 66 745
----------- ----------- -----------
Net Interest Income After Provision
for Loan Losses 5,462 5,361 4,055
Non-interest Income
Service charges, fees and other
income 904 877 927
Gain on sale of investment
sercurities (12) 4 18
----------- ----------- -----------
Total non-interest Income 892 881 945
Non-interest Expenses
Compensation and benefit expenses 2,584 2,450 2,342
Occupancy and equipment expenses 399 405 359
Data processing 268 268 278
Professional and legal 347 334 417
Other operating expenses 654 664 682
----------- ----------- -----------
Total non-interest expense 4,252 4,121 4,078
Income Before Income Taxes 2,103 2,122 922
----------- ----------- -----------
Provision for income taxes 715 712 273
----------- ----------- -----------
Net Income $ 1,388 $ 1,410 $ 649
=========== =========== ===========
Preferred dividends & Warrant
amortization 41 41 41
----------- ----------- -----------
Net Income Applicable to Common
Shareholders $ 1,347 $ 1,369 $ 608
=========== =========== ===========
Earnings Per Share
Basic earnings per share $ 0.36 $ 0.36 $ 0.16
Diluted earnings per share $ 0.33 $ 0.34 $ 0.15
Average shares outstanding 3,795,218 3,793,339 3,790,359
Average fully diluted shares 4,123,964 4,082,229 4,002,939
Total Shares outstanding at end of
period 3,822,389 3,815,589 3,814,539
Capital Ratios
Tier 1 leverage ratio 9.6% 9.6% 9.6%
Tier 1 risk-based capital ratio 11.5% 11.8% 12.1%
Total risk-based capital ratio 12.5% 12.9% 13.3%
Book value per share $ 13.59 $ 13.33 $ 12.76
Performance Ratios
Return on average assets 0.77% 0.81% 0.39%
Return on average common equity 10.37% 10.51% 4.97%
Net interest margin 3.23% 3.32% 3.08%
Cost of Funds 0.11% 0.12% 0.12%
Efficiency ratio 66.3% 66.0% 72.4%
Average Balances
Total Assets $ 713,333 $ 699,387 $ 660,792
Earning Assets 671,798 655,884 620,656
Total Loans 448,250 435,824 356,425
Total Securities 213,618 215,564 210,271
Total Deposits 623,879 603,104 591,691
Common Equity 51,540 52,230 48,692
Contact: John C. Black CEO 213-430-7000
Source: 1st Enterprise Bank
|
distributed by
|
