LOS ANGELES, CA--(Marketwired - Jan 23, 2014) - 1st Enterprise Bank ("the Bank") (
Financial Highlights
- Net income for 2013 was $5,003,000, a 34% increase over 2012 net income of $3,732,000
- Diluted earnings per common share were $1.18 for 2013, compared to $.98 in 2012
- Total Assets grew by 8% in 2013, ending the year at $760 million
- Total Loans outstanding grew by $96 million or 24% in 2013, ending the year at $505 million
- Total Deposits grew by $31 million or 5% in 2013, ending the year at $643 million
- Net income was $1,187,000 for the fourth quarter of 2013 and diluted earnings per common share were $.28 for the quarter
- Income before taxes, loan loss provision and gain on sale of securities was $2,267,000 for the fourth quarter, a 36% increase over the prior year and a 7% increase over the third quarter
John Black, CEO, stated, "We are very pleased to announce that 1st Enterprise Bank achieved record earnings of $5 million in 2013 and continued to generate strong loan growth, with loans increasing by $96 million, or 24% from the end of 2012. Net interest income continued to grow, as reflected in the 19% increase over the prior year. Excluding gain on the sale of securities, the Bank also grew non-interest income by 13%." Brian Horton, President, added, "In addition to our strong revenue and earnings growth, we continued to invest in our staff and our physical locations. The Bank opened a new San Fernando Valley regional loan production office during the year and added five experienced relationship managers throughout the Bank."
Net interest income before loan loss provision was $21.9 million in 2013, a $3 million or 16% increase over the prior year. The growth in net interest income was the result of both growth in earning assets and an increase in net interest margin. Earning assets grew by $85 million or 15% over 2012. Net interest margin increased from 3.23% in 2012 to 3.27% in 2013, as a result of a .03% increase in the earning asset yield and a .01% decrease in the Bank's cost of funds. The provision for loan loss was $1,322,000 in 2013, declining by $186,000 from 2012. Net loan charge-offs for 2013 were $315,000 and non-accrual loans totaled $1.8 million at December 31, 2013.
Non-interest income, excluding gain on sale of securities, was $3.6 million in 2013, an increase of more than $400,000 or 13% over 2012.
Non-interest expense in 2013 grew by $827,000 or 5% over 2012 to $16.9 million. The majority of this growth was increased staff and benefit expense, totaling $648,000, as the Bank continued to expand its staffing levels to support current and future customer growth. In addition, occupancy expense grew by $128,000 resulting from the new loan production office in the San Fernando Valley.
For the quarter ended December 31, 2013, net interest income before provision was $5.8 million, an increase of $700,000 or 14% compared to the fourth quarter of 2012, and an increase of more than $300,000 or 6% compared to the third quarter of 2013. The growth in net interest income was the result of both growth in earning assets and an increase in net interest margin. Average earning assets were $697 million in the fourth quarter of 2013, a 7% increase over the prior year and a 4% increase from the prior quarter. Net interest margin was 3.30% for the fourth quarter, compared to 3.13% and 3.23% for the prior year and prior quarter, respectively. The increase in net interest margin resulted from an increase in the earning asset yield, while cost of funds was stable at 0.11%. The provision for loan loss was $710,000 in the fourth quarter of 2013 compared to $513,000 in the fourth quarter of 2012 and $4,000 in the third quarter of 2013. There were no loan charge-offs during the fourth quarter, but one loan totaling $1.8 million was placed on non-accrual.
Non-interest income was $1 million in the fourth quarter of 2013. Excluding gains on sale of securities, non-interest income increased by $290,000 and $120,000 over the prior year and prior quarter, respectively. Non-interest expense in the fourth quarter of 2013 grew by more than $380,000 or 9% over 2012, and grew by $300,000 or 7% over the third quarter of 2013.
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 | Audited | ||||||||||||
Assets | 12/31/2013 | 9/30/2013 | 12/31/2012 | |||||||||||
Cash and due from banks | $ | 12,126 | $ | 25,030 | $ | 14,520 | ||||||||
Interest earning deposits in other banks | 5,793 | 11,708 | 23,386 | |||||||||||
Total cash and cash equivalents | 17,919 | 36,738 | 37,906 | |||||||||||
Certificates of deposit in other banks | - | 2,241 | 2,490 | |||||||||||
Investment securities - available-for-sale | 148,809 | 144,462 | 180,491 | |||||||||||
Investment securities - held-to-maturity | 62,118 | 61,274 | 56,026 | |||||||||||
Loans, net of deferred loan fees | 505,258 | 463,998 | 408,767 | |||||||||||
Allowance for loan losses | (6,517 | ) | (5,805 | ) | (5,510 | ) | ||||||||
Loans, net of allowance for loan losses | 498,741 | 458,193 | 403,257 | |||||||||||
Bank owned life insurance | 16,411 | 16,281 | 13,389 | |||||||||||
Premises and equipment, net | 2,453 | 2,536 | 2,256 | |||||||||||
Accrued interest receivable and other assets | 13,550 | 9,612 | 10,323 | |||||||||||
Total Assets | $ | 760,001 | $ | 731,337 | $ | 706,138 | ||||||||
Liabilities | ||||||||||||||
Non-interest-bearing demand deposits | $ | 315,888 | $ | 298,662 | $ | 286,800 | ||||||||
Interest bearing transaction accounts | 39,358 | 36,841 | 39,428 | |||||||||||
Money market and savings accounts | 277,035 | 282,465 | 274,088 | |||||||||||
Time deposits | 10,518 | 11,524 | 11,784 | |||||||||||
Total Deposits | 642,799 | 629,492 | 612,100 | |||||||||||
Federal Home Loan Bank Borrowings | 44,000 | 30,000 | 24,000 | |||||||||||
Other liabilities | 3,923 | 3,501 | 4,647 | |||||||||||
Total Liabilities | 690,722 | 662,993 | 640,747 | |||||||||||
Shareholders' Equity | ||||||||||||||
Serial Preferred Stock | 16,380 | 16,380 | 16,380 | |||||||||||
Common Stock | 43,142 | 43,109 | 43,034 | |||||||||||
Retained Earnings | 9,781 | 8,634 | 4,942 | |||||||||||
Accumulated other comprehensive income | (24 | ) | 221 | 1,035 | ||||||||||
Total Shareholders' Equity | 69,279 | 68,344 | 65,391 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 760,001 | $ | 731,337 | $ | 706,138 | ||||||||
1st Enterprise Bank | ||||||||||
Condensed Statements of Operations | ||||||||||
$000 | ||||||||||
For the Years Ended | ||||||||||
Unaudited | Audited | |||||||||
12/31/2013 | 12/31/2012 | |||||||||
Interest Income | ||||||||||
Interest and fees on loans | $ | 18,968 | $ | 15,355 | ||||||
Interest on investment securities | 3,631 | 4,141 | ||||||||
Other interest income | 37 | 90 | ||||||||
Total interest income | 22,636 | 19,586 | ||||||||
Interest Expense | 745 | 723 | ||||||||
Net Interest Income | 21,891 | 18,862 | ||||||||
Provision for loan losses | 1,322 | 1,508 | ||||||||
Net Interest Income After Provision for Loan Losses | 20,569 | 17,355 | ||||||||
Non-interest Income | ||||||||||
Service charges, fees and other income | 3,555 | 3,138 | ||||||||
Gain/(Loss) on sale of investment sercurities | (8 | ) | 899 | |||||||
Total non-interest Income | 3,547 | 4,037 | ||||||||
Non-interest Expenses | ||||||||||
Compensation and benefit expenses | 10,311 | 9,663 | ||||||||
Occupancy and equipment expenses | 1,571 | 1,443 | ||||||||
Data processing | 1,061 | 1,007 | ||||||||
Professional and legal | 1,390 | 1,269 | ||||||||
Other operating expenses | 2,559 | 2,683 | ||||||||
Total non-interest expense | 16,892 | 16,065 | ||||||||
Income Before Income Taxes | 7,224 | 5,327 | ||||||||
Provision for income taxes | 2,221 | 1,595 | ||||||||
Net Income | $ | 5,003 | $ | 3,732 | ||||||
Preferred dividends | 164 | 164 | ||||||||
Net Income Applicable to Common Shareholders | $ | 4,839 | $ | 3,568 | ||||||
Earnings Per Share | ||||||||||
Basic earnings per share | $ | 1.28 | $ | 1.04 | ||||||
Diluted earnings per share | $ | 1.18 | $ | 0.98 | ||||||
Average shares outstanding | 3,794,818 | 3,431,886 | ||||||||
Average fully diluted shares | 4,107,967 | 3,622,251 | ||||||||
Total Shares outstanding at end of period | 3,823,939 | 3,815,089 | ||||||||
Capital Ratios | ||||||||||
Tier 1 leverage ratio | 9.3 | % | 9.4 | % | ||||||
Tier 1 risk-based capital ratio | 11.0 | % | 12.1 | % | ||||||
Total risk-based capital ratio | 12.0 | % | 13.2 | % | ||||||
Book value per share | $ | 13.83 | $ | 12.85 | ||||||
Performance Ratios | ||||||||||
Return on average assets | 0.70 | % | 0.60 | % | ||||||
Return on average common equity | 9.43 | % | 8.17 | % | ||||||
Net interest margin | 3.27 | % | 3.23 | % | ||||||
Cost of Funds | 0.11 | % | 0.13 | % | ||||||
Efficiency ratio | 66.41 | % | 70.16 | % | ||||||
Average Balances | ||||||||||
Total Assets | $ | 712,765 | $ | 626,527 | ||||||
Earning Assets | 669,713 | 584,500 | ||||||||
Total Loans | 444,389 | 343,601 | ||||||||
Total Securities | 215,399 | 212,171 | ||||||||
Total Deposits | 621,785 | 560,741 | ||||||||
Common Equity | 51,334 | 43,677 | ||||||||
1st Enterprise Bank | ||||||||||||||
Condensed Statements of Operations | ||||||||||||||
$000 | ||||||||||||||
Three Months Ended | ||||||||||||||
Unaudited | ||||||||||||||
12/31/2013 | 9/30/2013 | 12/31/2012 | ||||||||||||
Interest Income | ||||||||||||||
Interest and fees on loans | $ | 5,036 | $ | 4,780 | $ | 4,291 | ||||||||
Interest on investment securities | 944 | 855 | 963 | |||||||||||
Other interest income | 8 | 11 | 23 | |||||||||||
Total interest income | 5,988 | 5,646 | 5,277 | |||||||||||
Interest Expense | 189 | 180 | 174 | |||||||||||
Net Interest Income | 5,799 | 5,466 | 5,103 | |||||||||||
Provision for loan losses | 710 | 4 | 513 | |||||||||||
Net Interest Income After Provision for Loan Losses | 5,089 | 5,462 | 4,590 | |||||||||||
Non-interest Income | ||||||||||||||
Service charges, fees and other income | 1,024 | 904 | 733 | |||||||||||
Gain/(Loss) on sale of investment sercurities | 0 | (12 | ) | 629 | ||||||||||
Total non-interest Income | 1,024 | 892 | 1,362 | |||||||||||
Non-interest Expenses | ||||||||||||||
Compensation and benefit expenses | 2,846 | 2,584 | 2,543 | |||||||||||
Occupancy and equipment expenses | 393 | 399 | 364 | |||||||||||
Data processing | 269 | 268 | 268 | |||||||||||
Professional and legal | 382 | 347 | 318 | |||||||||||
Other operating expenses | 667 | 654 | 679 | |||||||||||
Total non-interest expense | 4,557 | 4,252 | 4,172 | |||||||||||
Income Before Income Taxes | 1,557 | 2,103 | 1,781 | |||||||||||
Provision for income taxes | 369 | 715 | 550 | |||||||||||
Net Income | $ | 1,187 | $ | 1,388 | $ | 1,230 | ||||||||
Preferred dividends | 41 | 41 | 41 | |||||||||||
Net Income Applicable to Common Shareholders | $ | 1,146 | $ | 1,347 | $ | 1,189 | ||||||||
Earnings Per Share | ||||||||||||||
Basic earnings per share | $ | 0.30 | $ | 0.36 | $ | 0.31 | ||||||||
Diluted earnings per share | $ | 0.28 | $ | 0.33 | $ | 0.29 | ||||||||
Average shares outstanding | 3,798,213 | 3,795,218 | 3,791,905 | |||||||||||
Average fully diluted shares | 4,149,582 | 4,123,964 | 4,039,003 | |||||||||||
Total Shares outstanding at end of period | 3,823,939 | 3,822,389 | 3,815,089 | |||||||||||
Capital Ratios | ||||||||||||||
Tier 1 leverage ratio | 9.3 | % | 9.6 | % | 9.4 | % | ||||||||
Tier 1 risk-based capital ratio | 11.0 | % | 11.5 | % | 12.1 | % | ||||||||
Total risk-based capital ratio | 12.0 | % | 12.5 | % | 13.2 | % | ||||||||
Book value per share | $ | 13.83 | $ | 13.59 | $ | 12.85 | ||||||||
Performance Ratios | ||||||||||||||
Return on average assets | 0.63 | % | 0.77 | % | 0.71 | % | ||||||||
Return on average common equity | 8.57 | % | 10.37 | % | 9.56 | % | ||||||||
Net interest margin | 3.30 | % | 3.23 | % | 3.13 | % | ||||||||
Cost of Funds | 0.11 | % | 0.11 | % | 0.11 | % | ||||||||
Efficiency ratio | 66.41 | % | 66.27 | % | 70.16 | % | ||||||||
Average Balances | ||||||||||||||
Total Assets | $ | 742,247 | $ | 713,333 | $ | 689,361 | ||||||||
Earning Assets | 696,826 | 671,798 | 648,523 | |||||||||||
Total Loans | 477,186 | 448,250 | 389,321 | |||||||||||
Total Securities | 209,826 | 213,618 | 222,696 | |||||||||||
Total Deposits | 656,444 | 623,879 | 617,678 | |||||||||||
Common Equity | 53,091 | 51,540 | 49,473 | |||||||||||