Enterprise Bank Announces First Quarter Results and Appointment of David L. Gordon as Interim President28 April 2006
Enterprise National Bank N.J. (the "Bank") (OTC Bulletin Board: EBNJ) reported a net loss of $89 thousand or $(0.05) per share for the quarter ended March 31, 2006, a decrease from a profit of $7 thousand or $0.00 per share in the fourth quarter of 2005.
Additionally, N. Larry Paragano, Chairman of the Board announced that David L. Gordon, Chief Financial Officer, has been appointed Interim President of the Bank following the departure of President and Chief Executive Officer, Frank N. Goffreda. Mr. Goffreda has decided to pursue other opportunities. Mr. Paragano commented, "We would like to thank Frank for his service to the Bank and role in starting Enterprise and leading the Bank through its evolution into a publicly-traded national bank. We wish Frank well on his future endeavors." David Gordon has been with the Bank since its start as Chief Financial Officer, and will serve as Interim President while the Board of Directors conducts a search for a permanent successor.
With respect to the first quarter results, Mr. Gordon commented, "During the first quarter, Enterprise achieved all-time highs in loans, deposits and total assets. Our new Edison branch, which opened in November 2005, is off to a promising start with deposits of $7.6 million as of March 31, 2006. While our results were adversely affected by the increased expenses associated with the expansion, we believe the addition of staff for the new branch represents an important investment in our franchise. I look forward to working with the Enterprise team in building upon our successes." The first quarter of 2006 included the full impact of the opening of the Edison Branch office. Increased personnel, occupancy, marketing and technology expenses were incurred as a result of the opening of the new branch. Also, product promotions with higher interest rates contributed to a tightening of the Bank's interest margin. During the quarter, the Bank experienced strong asset growth, funded by deposits which were offset by repayments of borrowings.
FINANCIAL CONDITION
The Bank ended the first quarter with total assets of $66.7 million as compared to $59.6 million at December 31, 2005, reflecting growth of 11.9%. During the first quarter of 2006, the Bank experienced a net growth in loans of $1.9 million, an increase in cash and due from banks of $2.2 million and an increase in investment securities of $2.8 million. During the first three months of 2006, the Bank funded $6.1 million of primarily commercial real estate and business loans which was offset in part by payoffs and repayments totaling $4.2 million.
Loans, net of allowance for loan losses, totaled $39.4 million at March 31, 2006, an increase of $1.9 million, or 5.1%, from $37.5 million at the end of 2005.
Asset growth was funded by an increase in deposits of $10.8 million, or 28.8%, to $48.3 million at March 31, 2006 from $37.5 million at December 31, 2005 and decreased borrowings of $3.6 or 34.6%, to $6.5 million at March 31, 2006 from $10.1 million at December 31, 2005.
REVENUES
Total revenue, defined as net interest income plus non-interest income, increased by $83 thousand, or 18.3%, during the first quarter in comparison to the year ago period. The growth in revenues was due to continued growth in interest earning assets.
Net Interest Income
Net interest income for the first quarter 2006 was $529 thousand, as compared to $431 thousand in the first quarter 2005. The increase in the net interest income is primarily due to an increase in average earning assets. Net interest margin decreased to 3.36% in the first quarter 2006 as compared to 3.43% during the year ago period and 3.76% in the fourth quarter of 2005.
Provision for Loan Losses
During the first quarter of 2006, the Bank recorded a $20 thousand provision for possible loan losses; by comparison, the provision for possible loan losses was $15 thousand in the first quarter of 2005. The provision reflects the stability of our asset quality, the level of loans outstanding and the level of our allowance for possible loans losses to loans outstanding. The allowance for possible loans losses as a percentage of total loans was .98% as of March 31, 2006 as compared to 1.24% at March 31, 2005.
Non-Interest Income
Non-interest income totaled $7 thousand for the first quarter of 2006 as compared to $22 thousand for the first quarter of 2005. The decrease was primarily due to the recording of profit on the sale of investment securities in the first quarter 2005.
Non-Interest Expense
Total non-interest expense for the first quarter of 2006 was $601 thousand, compared to $430 thousand in the first quarter of 2005. Relative to the same period last year, total non-interest expense increased 39.8% for the first quarter of 2006. The increase was primarily due to the expenses related to the opening and staffing of our branch in Edison, which opened in November 2005.
Salaries and employee benefits expense was $285 thousand in the first quarter of 2006, a 13.5% increase compared to $251 thousand in the first quarter of 2005. The growth in expenses reflects the necessary expansion in staff and infrastructure to meet the needs created by a new full service branch office, deposit activity and growth planning.
ASSET QUALITY
The Bank had one non-performing loan of $485 thousand as of March 31, 2006. However, this loan is 100% guaranteed through the USDA's B&I Lending program. The Bank has had no other non-performing loans since its inception. No loans were charged off during the first quarter of 2006, and no loans have been charged off since the inception of the Bank.
CAPITAL
Stockholders' equity totaled $11.6 million at March 31, 2006, compared to $11.7 million at December 31, 2005. All of the Bank's capital ratios are in excess of the "well-capitalized" threshold.
THE BANK
Enterprise National Bank N.J., headquartered in Kenilworth, New Jersey, is listed on the OTC Bulletin Board under the symbol "EBNJ." The Bank focuses on serving the needs of small to medium sized businesses, commercial real estate borrowers, professional practices and consumers. Its services include business and personal checking, savings, money market and certificate of deposit accounts. Additionally, the Bank offers commercial and consumer loans, lines of credit, home equity loans, ATM cards, Debit cards and free telephone banking.
Forward-Looking Statements
This news release contains forward-looking statements. We caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements are also subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute the Bank's business plan, items already mentioned in this press release, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of this date. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date of this release.
ENTERPRISE NATIONAL BANK N.J.
BALANCE SHEET (unaudited)
3/31/06 12/31/05
Assets
Cash and due from banks $3,115,679 $856,413
Investment securities 23,234,374 20,404,125
Loans 39,410,453 37,522,549
Allowance for loan losses 386,500 366,500
Net loans 39,023,953 37,156,049
Bank premises and equipment-net 931,281 908,849
Other assets 432,767 297,206
Total assets $66,738,054 $59,622,642
Liabilities and stockholders' equity
Non-interest bearing deposits $6,004,355 $5,416,899
Savings and interest bearing demand 15,905,821 13,224,921
Time deposits 26,344,767 18,873,833
Total deposits 48,254,943 37,515,653
Borrowings 6,500,000 10,145,000
Other liabilities 354,756 268,912
Total liabilities 55,109,699 47,929,565
Total stockholders' equity 11,638,355 11,693,077
Total liabilities and stockholders'
equity $66,748,054 $59,622,642
ENTERPRISE NATIONAL BANK N.J.
INCOME STATEMENT (unaudited)
For quarters
ended: 3/31/06 12/31/05 9/30/05 6/30/05 3/31/05 12/31/04
Total interest
income $957,150 $819,616 $762,588 $716,270 $622,138 $606,566
Total interest
expense 427,915 309,657 289,271 251,726 191,456 186,137
Net interest
income 529,235 509,959 473,317 464,544 430,682 420,429
Provision for
possible loan
losses 20,000 20,000 -- 16,500 15,000 --
Net interest
income after
provision 509,235 489,959 473,317 448,044 415,682 420,429
Service fees
and charges 6,890 7,892 15,955 18,326 11,923 10,655
Gain on sale
of loans -- -- 1,571 -- -- 1
Other -- 335 320 1,063 10,013 62
Total non-interest
income 6,890 8,227 17,846 19,389 21,936 10,718
Personnel
expenses 285,068 244,616 267,892 252,973 251,529 204,499
Occupancy expense 44,294 41,257 19,356 16,138 16,645 16,652
Equipment 122,356 104,883 92,000 95,444 92,765 93,908
Advertising 30,150 25,000 15,509 1,974 2,200 1,000
Other expense 119,028 75,740 93,193 105,520 67,176 75,730
Total non-interest
expense 600,896 491,496 487,950 472,049 430,315 391,789
Income(loss)
before taxes (84,771) 6,690 3,213 (4,616) 7,303 39,358
Income taxes 4,156 -- -- 500 -- --
Net income
(loss) $(88,927) $6,690 $3,213 $(5,116) $7,303 $39,358
For three months ended: 3/31/06 3/31/05
Total interest income $957,150 $622,138
Total interest expense 427,915 191,456
Net interest income 529,235 430,682
Provision for possible loan losses 20,000 15,000
Net interest income after provision 509,235 415,682
Service fees and charges 6,890 11,923
Gain on sale of loans -- --
Other -- 10,013
Total non-interest income 6,890 21,936
Personnel expenses 285,068 251,529
Occupancy expense 44,294 16,645
Equipment 122,356 92,765
Advertising 30,150 2,200
Other expense 119,028 67,176
Total non-interest expense 600,896 430,315
Income(loss) before taxes (84,771) 7,303
Income taxes 4,156
Net income(loss) $(88,927) $7,303
ENTERPRISE NATIONAL BANK N.J.
SELECTED CONSOLIDATED FINANCIAL DATA (unaudited)
For quarters ended: 3/31/2006 12/31/05 9/30/05
Share Data
Book value per share (basic, period
end) $6.44 $6.48 $6.52
Net income(loss) per share (basic) ($0.05) $0.00 $0.00
Net income(loss) per share (diluted) ($0.05) $0.00 $0.00
Selected Averages
Average net loans $39,125,110 $30,289,694 $29,658,895
Average total deposits $45,404,143 $38,345,294 $40,566,535
Average earning assets $63,017,972 $54,308,643 $55,492,968
Selected Performance Ratios
Return on average assets -0.55% 0.05% 0.02%
Return on average equity -3.03% 0.23% 0.11%
Net interest margin 3.36% 3.76% 3.41%
Non-interest income as % of average
assets 0.04% 0.06% 0.12%
Non-interest expense as % of
average assets 3.68% 3.55% 3.41%
Asset Quality
Net charge-offs $-- -- --
Non-performing loans $485,000 -- --
Allowance for possible loan losses
to total loans 0.98% 0.98% 0.98%
Non-performing loans to total loans 1.23% 0.00% 0.00%
Capital
Tier 1 leverage ratio 17.92% 20.93% 20.62%
Tier 1 capital to risk-weighted
assets 27.17% 29.22% 33.07%
Total capital to risk-weighted
assets 28.06% 30.13% 34.04%
For quarters ended: 6/30/05 3/31/05 12/31/04
Share Data
Book value per share (basic, period
end) $6.53 $6.52 $6.53
Net income(loss) per share (basic) ($0.00) $0.00 $0.02
Net income(loss) per share (diluted) ($0.00) $0.00 $0.02
Selected Averages
Average net loans $29,658,895 $23,932,249 $22,003,210
Average total deposits $40,566,535 $35,487,940 $35,652,194
Average earning assets $55,492,968 $50,207,837 $50,349,998
Selected Performance Ratios
Return on average assets -0.04% 0.06% 0.31%
Return on average equity -0.17% 0.25% 1.30%
Net interest margin 3.35% 3.43% 3.34%
Non-interest income as % of average
assets 0.14% 0.17% 0.08%
Non-interest expense as % of
average assets 3.33% 3.37% 3.08%
Asset Quality
Net charge-offs -- -- --
Non-performing loans -- -- --
Allowance for possible loan losses
to total loans 1.08% 1.24% 1.33%
Non-performing loans to total loans 0.00% 0.00% 0.00%
Capital
Tier 1 leverage ratio 20.80% 23.13% 23.21%
Tier 1 capital to risk-weighted
assets 34.10% 39.96% 43.79%
Total capital to risk-weighted
assets 35.10% 41.08% 44.96%
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
