1st Enterprise Bank Announces Record Quarterly Net Income of $1.5 Million for the 1st Quarter of 2014
LOS ANGELES, CA--(Marketwired - Apr 16, 2014) - 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