1st Enterprise Bank Continues Strong Loan and Core Deposit Growth for the Quarter Ended September 30, 2007
Friday October 12, 8:31 pm ET

LOS ANGELES, CA--(MARKET WIRE)--Oct 12, 2007 -- 1st Enterprise Bank (the Bank) (OTC BB:FENB.OB - News) today announced results for the 3rd quarter of 2007 ended September 30, 2007.

1st Enterprise Bank, which opened for business on July 3, 2006, continued to experience strong growth in its loans and core deposits during the 3rd quarter of 2007. At September 30, 2007 total assets had grown to $167.5 million, an increase of $16.5 million, or 10.9%, over June 30, 2007. Net loans were up from the prior quarter by $15.5 million, or 38.3%, to $56.0 million. The Bank's investments were $86.0 million, an increase of $43.5 million, or 102.4% over the June 30, 2007 level. Total deposits stood at $141.6 million, an increase of $16.6 million, or 13.2% over June 30, 2007. Non-interest bearing demand deposits increased $5.0 million, or 12.5%, to $45.4 million. Interest bearing deposits increased $11.8 million, or 14.0%, to $96.2 million over the level at June 30, 2007. Shareholders' equity stood at $24.7 million at September 30, 2007. The net loss for the 3rd quarter of 2007 was $372 thousand, $104 thousand, or 24%, less than the 2nd quarter loss. The 3rd quarter net loss included $183 thousand of stock-based compensation expense, and $188 thousand in additions to the loan loss and off-balance sheet exposure reserves.

"We are very excited about the strong growth in loans, core deposits, and total assets, as well as the level of reduced losses, during the third quarter of 2007," said John C. Black, CEO of 1st Enterprise Bank. "It demonstrates that we are fulfilling the business market's need for a full service, locally owned and managed commercial business bank like ours. Our highly experienced and capable staff at 1st Enterprise Bank provides outstanding service to our clientele and takes a personal interest in the success of their businesses. The results during the third quarter provide strong validation of our business model and our understanding of our market niche."

About 1st Enterprise Bank: 1st Enterprise Bank is a full service commercial banking institution, whose highly experienced bankers personally serve Southern California entrepreneurial businesses, professional firms and non profit organizations, along with their owners and key managers. Headquartered in the Los Angeles financial district and founded in 2006, 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 their 1st Enterprise Relationship Banker, who understands the unique challenges of their industry and serves as a sounding board and an active participant in their success. For more information on 1st Enterprise Bank, please visit www.1stenterprisebank.com.

 
 1st Enterprise Bank
 Condensed Statement of Financial Condition
 000's Omitted - (Unaudited)
 
 
 ----------- ----------- ----------- -----------
Assets 9/30/2007 6/30/2007 12/31/2006 9/30/2006
 -----------  ----------- ----------- -----------
 Cash & Due From Banks $ 9,278 $ 8,098 $ 4,562 $ 2,868
 Federal Funds Sold 13,035 57,195 62,685 29,960
 Investment Securities 85,958 42,468 23,867  13,814
 Loans (Net) 56,012 40,495 21,259 11,448
 Premises and
 Equipment, Net 1,857 1,864 1,815 1,825
 Other Assets 1,396 930 294 194
  ----------- ----------- ----------- -----------
 Total Assets $ 167,536 $ 151,050 $ 114,482 $ 60,109
 =========== =========== =========== ===========
Liabilities
 Demand Deposits $  45,353 $ 40,604 $ 29,180 $ 10,646
 Money Market, NOW &
 Savings 93,993 80,193 48,744 22,732
 Time Deposits 2,209 4,204 243 111
 ----------- ----------- ----------- -----------
 Total Deposits 141,555 125,001 78,167 33,489
 Other Liabilities 1,247 1,130 10,856 716
 ----------- ----------- ----------- -----------
 Total Liabilities 142,802 126,131 89,023 34,204
 
Shareholders' Equity $ 24,734 $ 24,919 $ 25,459 $ 25,905
 ----------- ----------- ----------- -----------
Total Liabilities &
Shareholders' Equity $ 167,536 $ 151,050 $ 114,482 $ 60,109
 =========== =========== =========== ===========
 
 
 1st Enterprise Bank
 Condensed Statement of Operations
  000's Omitted - (Unaudited)
 
 
 Three Months Ended Nine Months Ended
 ------------------------ ------------------------
Interest Income 9/30/2007 9/30/2006 * 9/30/2007 9/30/2006 *
 ----------- ----------- ----------- -----------
 Federal Funds Sold $ 504 $ 412 $ 1,958 $ 412
 Investment Securities 810 47 1,646 47
 Loans  831 70 1,892 70
 Preopening Interest
 Income 181 181
 ----------- ----------- ----------- -----------
 Total Interest Income $ 2,145 $ 711 $ 5,497 $ 711
 
Interest Expense
 Money Market, NOW &
 Savings 665 78 1,593 78
 Time Deposits 33 1 76 1
  ----------- ----------- ----------- -----------
 Total Interest
 Expense 698 78 1,669 78
 ----------- ----------- ----------- -----------
Net Interest Income $ 1,447 $ 632 $ 3,828 $ 632
 
 Provision for Loan
 Losses 157 145 406 145
 ----------- ----------- ----------- -----------
Net Interest Income
 After Loan Loss
 Provision $ 1,290 $ 487 $ 3,422 $ 487
 
Noninterest Income $ 37 $ 1 $ 75 $ 1
Noninterest Expense
 Salaries and Benefits 909 651 2,586 651
 Stock-Based
 Compensation 183 215 542 215
 Premises and Fixed
 Assets 155 122 448 122
 Other Noninterest
 Expense 452 332 1,202  332
 Preopening Expenses 0 787 0 787
 ----------- ----------- ----------- -----------
 Total Noninterest
 Expense $ 1,699 $ 2,107 $ 4,778 $ 2,107
 
Net Loss Before Taxes $ (372) $ (1,619) $ (1,281) $ (1,619)
 
 Taxes 0 0 1 0
 ----------- ----------- ----------- -----------
Net Loss $  (372) $ (1,619) $ (1,282) $ (1,619)
 =========== =========== =========== ===========
 
 
 
* The Three and Nine month numbers reflect preopening income and expenses
 as well as the results from July 3, 2006 (opening date) to September 30,
 2006.

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.

Contact:

 Contact:
 Reginald Prout
 CFO
 213-430-7040
  
  John Black
 CEO
 213-430-7070

Source: 1st Enterprise Bank