1st Enterprise Bank Announces Record Earnings for the 3rd Quarter of 2014
(firmenpresse) - LOS ANGELES, CA -- (Marketwired) -- 10/16/14 -- 1st Enterprise Bank ("the Bank") (OTCQB: FENB), an independent full-service commercial bank serving the Southern California business community, today reported record quarterly net income of $2.4 million or $.56 per diluted share for the third quarter of 2014. The Bank continued its strong organic growth in loans and deposits, as loans grew by 23% and deposits grew by 10% from the third quarter of 2013.
Net income for the quarter ended September 30, 2014 was $2.4 million or $.56 per diluted share, compared to $1.4 million or $.33 per diluted share in the third quarter of 2013.
Total Assets grew by $69 million or 9%, from $731 million at September 30, 2013 to $801 million at September 30, 2014.
Total Loans outstanding grew by $106 million or 23%, from $464 million at September 30, 2013 to $570 million at September 30, 2014.
Total Deposits grew by $61 million or 10%, from $629 million at September 30, 2013 to $691 million at September 30, 2014.
Adjusted Pre-tax Operating Income grew by more than $1 million or 50% from the prior year. See Supplemental Information- Non-GAAP Financial Measures
On June 3, 2014, 1st Enterprise Bank and CU Bancorp (the parent of California United Bank) jointly announced the signing of a definitive agreement and plan of merger whereby 1st Enterprise will merge into California United Bank. This merger combines two commercial banking franchises in Southern California with more than $2.2 billion in combined assets which operate offices in Los Angeles, Orange, Ventura and San Bernardino counties.
Under the terms of the merger agreement, 1st Enterprise shareholders will receive 1.3450 shares of CU Bancorp common stock for each share of 1st Enterprise common stock.
The transaction has been approved by all bank regulatory agencies and is expected to close in the fourth quarter of 2014, subject to customary conditions, including the approval of the shareholders of both companies. The Bank's annual shareholder meeting is scheduled for November 14, 2014.
John Black, CEO, stated, "I am pleased to announce that the Bank achieved record quarterly earnings in the third quarter and continued its history of double-digit loan and deposit growth."
Brian Horton, President, added, "Reaching $800 Million in assets in just over eight years is a wonderful accomplishment and is the result of the dedication and efforts of our very talented staff. We congratulate them, and thank our customers for their support."
For the three months ended September 30, 2014, net interest income before provision was $6.5 million, an increase of 19% compared to the third quarter of 2013 and an increase of 7% compared to the second quarter of 2014. 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 $737 million in the third quarter of 2014, a 10% or $65 million increase over the prior year. The net interest margin was 3.51% during the third quarter of 2014, compared to 3.23% for the prior year. The increase in net interest margin was the result of a .28% increase in the earning asset yield over the prior year. This increase in earning asset yield resulted from loan balances growing from 67% of earning assets in the prior year to 76% in the current quarter. Net interest income grew over the prior quarter as earning assets grew by $30 million and the net interest margin increased by .05%. The increase in net interest margin over the prior quarter was the result of a .05% increase in the yield on earning assets which also resulted from an increase in loan balances as a percentage of earning assets.
For the current quarter, the loan loss provision included $370,000 in loan recoveries and a release of loan loss reserves, resulting in a total credit of $553,000 to the loan loss provision. During the quarter, a non-accrual loan for $1.7 million was charged-off. A specific loan loss reserve had been established for 100% of this non-accrual loan in past quarters.
Non-interest income, excluding gain on sale, was $945,000 for the quarter, which was a 5% increase year over year and a 2% sequential decline. Growth in non-interest income over the prior year was generally due to increased deposit related fee income.
Non-interest expense was essentially flat over the prior year and decreased by $1.1 million or 21% from the prior quarter. Both the third and second quarters of 2014 were impacted by merger related transaction expenses totaling $147,000 and $529,000, respectively. The third and second quarters were also impacted by changes in the Bank's off-balance sheet reserves. In the third quarter of 2014 the off-balance sheet credit reserve declined by $221,000, while in the second quarter of 2014 it grew by $501,000. After adjusting for these items, the Bank's operating expenses grew by $57,000 or 1% over the prior year and decreased by $40,000 or 1% from the prior quarter.
This press release contains non-GAAP financial disclosures. The Bank has included non-GAAP financial measurements to provide meaningful supplemental information regarding the Bank's operating performance.
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 .
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:
E. Allen Nicholson
EVP/CFO
213-430-7040
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Datum: 16.10.2014 - 18:40 Uhr
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News-ID 344769
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Commercial & Investment Banking
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