LOS ANGELES, CA — (Marketwire) — 07/18/12 — 1st Enterprise Bank (“the Bank”) (OTCBB: FENB), an independent full-service commercial bank serving the Southern California business community, reported total assets of $619 million and net income of $804,000 for the quarter ended June 30, 2012.
A private placement of $12.5 million of Common Equity at a price of $13 per share was completed in May
Total Assets grew by 18% from $526 million at June 30, 2011 to $619 million at June 30, 2012
Total Loans outstanding grew by $103 million or 43% from $238 million at June 30, 2011 to $341 million at June 30, 2012
Total Deposits grew by $73 million or 15% from $478 million at June 30, 2011 to $551 million at June 30, 2012
Net interest income of $4.62 million was highest in Bank-s history and 25% higher than the second quarter of 2011
Net interest margin grew to 3.38% from 3.12% in the second quarter of 2011, while the loan-to-deposit ratio increased from 50% to 62%
The Bank continued to have no charged-off or past due loans, or any non-performing assets
The Bank continues to be well capitalized with a Tier 1 Leverage Ratio of 10.6% and a Total Risk Based Capital Ratio of 14.5% — tangible book value per share was $12.52 at quarter end
Net Income applicable to common shareholders was $763,000 for the second quarter of 2012, compared to $686,000 for the second quarter of 2011
Diluted earnings per common share were $.22 for the quarter, compared to $.23 for the second quarter of 2011
“We are proud to announce that 1st Enterprise Bank exceeded $600 million in assets prior to the Bank-s sixth anniversary,” said John Black, CEO. “Our loan growth of 43% over the last twelve months demonstrates the Bank-s strong financial position and capabilities in supporting the continued credit needs of existing and new customers. Our strong loan and deposit growth resulted in a 25% increase in net interest income, while the Bank continued to maintain excellent asset quality.” Brian Horton, President, added, “We are not only excited about the financial results in the second quarter, but we are very excited about recent new hires and our soon-to-be announced new regional office in the San Fernando Valley.”
For the three months ended June 30, 2012, net interest income before provision was $4.62 million, an increase of more than $915,000 or 25% compared to the second quarter of 2011 and an increase of more than $285,000 or 7% compared to the first quarter of 2012. The year-over-year growth in net interest income was the result of both growth in earning assets and an increase in net interest margin. The net interest margin was 3.38% during the second quarter of 2012, compared to 3.12% for the prior year and 3.37% for the prior quarter. The Bank-s cost of funds was .13% for the quarter, compared to a cost of funds of .15% in the prior quarter and .28% in the prior year. Transaction account balances grew by $67 million or 29% from the prior year and non-interest bearing deposits comprised 45% of average total deposits in the second quarter. Earning assets were $550 million in the second quarter of 2012, a 15% increase over the prior year and a 6% increase over the prior quarter. The Bank had no loan charge-offs during the quarter and has no non-accrual loans. During the second quarter a provision for loan losses was recorded in the amount of $240,000, compared to $243,000 in the second quarter of 2011 and $10,000 in the first quarter of 2012.
Non-interest income increased by $337,000 or 76% from the prior year and increased by $82,000 or 12% from the prior quarter. Growth in non-interest income is attributable to growth in both loan related and deposit related fees. The second quarter of 2012 includes gains on sale of securities totaling $116,000, compared to $135,000 in the prior quarter and $683,000 in the prior year.
Non-interest expense increased by $799,000 or 24% over the prior year and increased by $466,000 or 13% over the prior quarter. The second quarter included non-recurring compensation expense for retention and other employee matters totaling $500,000.
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, 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 .
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.
Contact:
John C. Black
CEO
213-430-7000