Welcome!

News Feed Item

1st Enterprise Bank Announces Record Quarterly Net Income of $1.5 Million for the 1st Quarter of 2014

LOS ANGELES, CA -- (Marketwired) -- 04/16/14 -- 1st Enterprise Bank ("the Bank") (OTCQB: FENB), an independent full-service commercial bank serving the Southern California business community, reported net income of $1.5 million for the quarter ending March 31, 2014.

Financial Highlights

  • Net income for the quarter ending March 31, 2014 was $1.5 million, a 27% increase over the prior quarter and a 48% increase over the prior year
  • Diluted earnings per common share were $.35 for the quarter, compared to $.28 in the fourth quarter of 2013 and $.24 in the first quarter of 2013
  • Total Assets grew by $74 million, from $702 million at March 31, 2013 to $776 million at March 31, 2014
  • Total Loans outstanding grew by $88 million, from $419 million at March 31, 2013 to $507 million at March 31, 2014
  • Total Deposits grew by $50 million, from $601 million at March 31, 2013 to $652 million at March 31, 2014
  • Income before taxes, loan loss provision and gain on sale of securities was $2.3 million for the quarter, a 16% increase over the prior year

John Black, CEO, stated, "We continue to be very pleased with the Bank's earnings and asset growth. Once again I am excited to announce record quarterly earnings, as well as loan growth that exceed 20% over the last 12 months." Brian Horton, President, added, "This growth validates our customers' appreciation for the importance of relationship banking and is the result of the efforts of a very talented staff."

For the three months ended March 31, 2014, net interest income before provision was $6.1 million, an increase of 17% compared to the first quarter of 2013 and an increase of 5% compared to the fourth quarter of 2013. The year-over-year growth in net interest income was the result of both growth in earning assets and expansion in net interest margin. Earning assets were $704 million in the first quarter of 2014, an 8% or $51 million increase over the prior year. The net interest margin was 3.50% during the first quarter of 2014, compared to 3.23% for the prior year. The increase in net interest margin was the result of a .27% increase in the earning asset yield over the prior year. The growth in net interest income over the prior quarter was mostly the result of an increase in the net interest margin from 3.30% to 3.50%. This increase resulted from the yield on earning assets increasing by 0.20% from the prior quarter as loan balances grew from 68% of earning assets to 73% and the yield on investment securities increased by .26%. There was no provision for loan loss during the quarter, compared to a provision of $542,000 in the first quarter of 2013 and a provision of $710,000 in the fourth quarter of 2013. There were no loan charge-offs during the first quarter of 2014 or the fourth quarter of 2013, compared to net loan charge-offs during the first quarter of 2013 that totaled $349,000. As of March 31, 2014 there was one non-accrual loan that totaled $1.7 million.

Non-interest income, excluding gain on sale, was $900,000 for the quarter, which was a 20% increase year over year, but declined by $124,000 sequentially due to lower loan related income. Growth in non-interest income from the prior year was generally due to increased deposit related fees.

Non-interest expense increased by $720,000 or 18% over the prior year and increased by $128,000 or 3% over the prior quarter. The year over year increase is mostly the result of continued investment in staffing levels to support current and future customer growth. The sequential increase in non-interest expense was due to a $112,000 increase in the Bank's off-balance sheet reserves due to growth in unused loan commitments.

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    Audited    Unaudited
                                         ----------  ----------  ----------
Assets                                    3/31/2014  12/31/2013   3/31/2013
                                         ----------  ----------  ----------
  Cash and due from banks                $   33,270  $   12,126      16,393
  Interest earning deposits in other
   banks                                     29,461       5,793      14,560
                                         ----------  ----------  ----------
    Total cash and cash equivalents          62,731      17,919      30,953

  Certificates of deposit in other banks          -           -       2,490
  Investment securities - available-for-
   sale                                     113,071     148,809     164,580
  Investment securities - held-to-
   maturity                                  61,769      62,118      55,753
  Loans, net of deferred loan fees          513,360     505,258     425,009
  Allowance for loan losses                  (6,519)     (6,517)     (5,703)
                                         ----------  ----------  ----------
  Loans, net of allowance for loan
   losses                                   506,841     498,741     419,306
  Bank owned life insurance                  16,538      16,411      16,017
  Premises and equipment, net                 2,372       2,453       2,700
  Accrued interest receivable and other
   assets                                    12,590      13,550       9,985
                                         ----------  ----------  ----------
    Total Assets                         $  775,912  $  760,001  $  701,784
                                         ==========  ==========  ==========

Liabilities
  Noninterest-bearing demand deposits    $  321,500  $  315,888  $  268,584
  Interest bearing transaction accounts      43,770      39,358      35,250
  Money market and savings accounts         270,219     277,035     278,610
  Time deposits                              16,083      10,518      18,996
                                         ----------  ----------  ----------
    Total Deposits                          651,572     642,799     601,440
  Federal Home Loan Bank borrowings          50,000      44,000      30,500
  Other liabilities                           3,253       3,923       3,484
                                         ----------  ----------  ----------
    Total Liabilities                       704,825     690,722     635,424

Shareholders' Equity
  Serial Preferred Stock                     16,380      16,380      16,380
  Common Stock                               43,378      43,142      43,048
  Retained Earnings                          11,245       9,781       5,918
  Accumulated other comprehensive income         84         (24)      1,014
                                         ----------  ----------  ----------
    Total Shareholders' Equity               71,087      69,279      66,360
                                         ----------  ----------  ----------

Total Liabilities and Shareholders'
 Equity                                  $  775,912  $  760,001  $  701,784
                                         ==========  ==========  ==========



1st Enterprise Bank
Condensed Statements of Operations               Three Months Ended
                                         ----------------------------------
$000                                                  Unaudited
                                         ----------------------------------
                                          3/31/2014  12/31/2013   3/31/2013
                                         ----------  ----------  ----------
Interest Income
  Interest and fees on loans             $    5,293  $    5,036  $    4,428
  Interest on investment securities             972         944         952
  Other interest income                           3           8          10
                                         ----------  ----------  ----------
    Total interest income                     6,268       5,988       5,390
Interest Expense                                191         189         192
                                         ----------  ----------  ----------
Net Interest Income                           6,077       5,799       5,198

Provision for loan losses                         -         710         542
                                         ----------  ----------  ----------

Net Interest Income After Provision for
 Loan Losses                                  6,077       5,089       4,656

Non-interest Income
Service charges, fees and other income          900       1,024         749
Gain on sale of investment sercurities           41           -           -
                                         ----------  ----------  ----------
    Total non-interest Income                   941       1,024         749

Non-interest Expenses
  Compensation and benefit expenses           2,876       2,846       2,431
  Occupancy and equipment expenses              379         393         374
  Data processing                               268         269         256
  Professional and legal                        401         382         328
  Other operating expenses                      761         667         575
                                         ----------  ----------  ----------
    Total non-interest expense                4,685       4,557       3,964

Income Before Income Taxes                    2,334       1,557       1,442
                                         ----------  ----------  ----------

Provision for income taxes                      829         369         425
                                         ----------  ----------  ----------

Net Income                               $    1,505  $    1,187  $    1,017
                                         ==========  ==========  ==========

Preferred dividends & Warrant
 amortization                                    41          41          41
                                         ----------  ----------  ----------

Net Income Applicable to Common
 Shareholders                            $    1,464  $    1,146  $      976
                                         ==========  ==========  ==========

Earnings Per Share
Basic earnings per share                 $     0.38  $     0.30  $     0.26

Diluted earnings per share               $     0.35  $     0.28  $     0.24

Average shares outstanding                3,803,389   3,798,213   3,793,150

Average fully diluted shares              4,182,521   4,149,582   4,062,894

Total Shares outstanding at end of
 period                                   3,840,938   3,823,939   3,815,089

Capital Ratios
Tier 1 leverage ratio                           9.5%        9.3%        9.4%

Tier 1 risk-based capital ratio                11.1%       11.0%       11.9%

Total risk-based capital ratio                 12.2%       12.0%       13.0%

Book value per share                     $    14.24  $    13.83  $    13.10

Performance Ratios
Return on average assets                       0.81%       0.63%       0.59%

Return on average common equity               10.98%       8.57%       7.95%

Net interest margin                            3.50%       3.30%       3.23%

Cost of Funds                                  0.11%       0.11%       0.12%

Efficiency ratio                              66.80%      66.41%      66.70%

Average Balances
Total Assets                             $  751,031  $  742,247  $  695,576

Earning Assets                              704,112     696,826     653,274

Total Loans                                 512,559     477,186     415,003

Total Securities                            188,384     209,826     230,343

Total Deposits                              634,225     656,444     606,208

Common Equity                                54,075      53,091      49,812


Contact:
John C. Black
CEO
213-430-7000

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.