Enterprise National Bank N.J. Announces Third Quarter 2013 Earnings
Enterprise National Bank N.J. (the "Bank") (OTCBB:ENBN) reported net income of $230,000, or $0.08 per share, for the quarter ended September 30, 2013, compared to $236,000, or $0.08 per share for the quarter ended September 30, 2012. For the nine months ended September 30, 2013, the Bank recorded net income of $534,000, or $0.19 per share, compared with $578,000, or $0.21 per share for the first nine months of 2012.
FINANCIAL CONDITION
As of September 30, 2013, total assets were $137.6 million as compared to $133.8 million at December 31, 2012. The increase in total assets is attributable to strong loan activity, offset in part by the continued reduction in higher costing liabilities and maturing investment securities. Don Haake, President & CEO, stated "Although total asset growth has been modest, we are very pleased with the $15.2 million or 15% growth of the bank's loan portfolio over the same period. Moreover, our pipeline of approved and prospective business remains strong and we are confident that we can maintain this momentum over the coming months."
Stockholders' equity continues to increase, growing to $19.5 million at September 30, 2013, compared to $18.9 million at December 31, 2012. All of the Bank's capital ratios remain well in excess of the regulatory guidelines to be considered a "well capitalized" institution. To that end, at September 30, 2013, the Bank's tier one leverage capital ratio was 14.36% and the Bank's total risk based capital ratio was 17.09%.
Asset Quality
The Bank had non-performing loans of $1.6 million as of September 30, 2013, as compared to $2.5 million at December 31, 2012 and $3.1 million at September 30, 2012. The non-performing loans consist of one real estate property owned (OREO) with a carrying value of $1.4 million and one troubled debt restructuring loan (TDR) of $200,000. The OREO is a partially tenanted, income producing property and the TDR is currently paying as agreed. Chairman N. Larry Paragano commented: "I am very pleased with the overall performance of the Bank's portfolio and want to commend our staff and management for their efforts in reducing non-performing loans and for their continued efforts in managing and growing a sound portfolio."
Net Interest Income
Net interest income was $1.3 million for each of the quarters ending September 30, 2013 and September 30, 2012. The Bank's net interest margin for the quarter ended September 30, 2013 improved to 4.31% compared to 4.11% for the same period in 2012.
Net interest income was $3.8 million for the nine months ending September 30, 2013, as compared to $3.7 million in the nine months ending September 30, 2012. The Bank's net interest margin for the nine months ending September 30, 2013 was 4.20% compared to 3.91% for the same period in 2012.
Non-Interest Income
Non-interest income was $70,000 in the quarter ending September 30, 2013, as compared to $84,000 in the quarter ending September 30, 2012.
Non-interest income was $141,000 for the nine months ending September 30, 2013, as compared to $251,000 in the nine months ending September 30, 2012. The higher level of non-interest income in the prior year-to-date period was the result of a higher level of loan prepayments and the associated prepayment fees.
Non-Interest Expense
Total non-interest expense for the quarter ending September 30, 2013 was $972,000, representing little change from $965,000 for the quarter ending September 30, 2012. Total non-interest expense for the nine months ending September 30, 2013 was $3.0 million, as compared to $2.9 million in the nine months ending September 30, 2012. Management continues to focus on reducing the Bank's non-interest expense wherever possible.
THE BANK
Enterprise National Bank N.J., headquartered in Kenilworth, New Jersey, is listed on the OTC Bulletin Board under the symbol "ENBN." 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, E-Banking, remote deposit capture, and free telephone and online banking.
Forward-Looking Statements
This news release may contain 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
Statement of Condition (unaudited)
Assets 9/30/2013 12/31/2012
Cash and due from banks $8,078,641 $16,411,090
Investment securities 9,713,581 12,334,583
Loans 118,032,200 102,847,415
Allowance for loan losses (1,373,756) (1,273,310)
Net loans 116,658,444 101,574,105
Bank premises and equipment, net 404,057 435,873
Real estate owned 1,416,000 1,416,000
Deferred income taxes 813,391 760,131
Other assets 549,150 844,035
Total Assets $137,633,264 $133,775,817
Liabilities and stockholders' equity
Non-interest bearing deposits $11,470,378 $17,211,351
Interest bearing deposits 99,194,790 93,361,737
Total deposits 110,665,168 110,573,088
Borrowings 7,000,000 4,000,000
Other liabilities 439,921 308,043
Total liabilities 118,105,089 114,881,131
Total stockholders' equity 19,528,175 18,894,686
Total Liabilities and stockholders' equity $137,633,264 $133,775,817
Enterprise National Bank
Income Statement (unaudited)
Three Months Ending
9/30/2013 9/30/2012
Interest Income $1,652,879 $1,564,470
Interest Expense 245,742 261,406
Net Interest Income 1,407,137 1,303,064
Provision for Loan Losses 105,000 0
Net Interest Income after Provision for Loan Losses 1,302,137 1,303,064
Non-Interest Income 70,171 83,975
Non-Interest Expenses 971,762 965,159
Income Before Income Taxes 400,546 421,880
Income Taxes 171,000 186,000
Net Income $229,546 $235,880
Average shares outstanding 2,899,094 2,809,994
Net Income per Common Share $0.08 $0.08
Nine Months Ending
9/30/2013 9/30/2012
Interest Income $4,726,231 $4,683,759
Interest Expense 723,929 907,481
Net Interest Income 4,002,302 3,776,278
Provision for Loan Losses 241,374 75,000
Net Interest Income after Provision for Loan Losses 3,760,928 3,701,278
Non-Interest Income 140,513 251,047
Non-Interest Expenses 2,953,862 2,924,328
Income Before Income Taxes 947,579 1,027,997
Income Taxes 414,000 450,072
Net Income $533,579 $577,925
Average shares outstanding 2,879,594 2,811,668
Net Income per Common Share $0.19 $0.21
CONTACT: Donald J. Haake, President & CEO
don.haake@enterprisebank.net
Thomas P. Keating, CFO
thomas.keating@enterprisebank.net
Enterprise National Bank N.J. (the "Bank") (OTCBB:ENBN) reported net income of $230,000, or $0.08 per share, for the quarter ended September 30, 2013, compared to $236,000, or $0.08 per share for the quarter ended September 30, 2012. For the nine months ended September 30, 2013, the Bank recorded net income of $534,000, or $0.19 per share, compared with $578,000, or $0.21 per share for the first nine months of 2012.
FINANCIAL CONDITION
As of September 30, 2013, total assets were $137.6 million as compared to $133.8 million at December 31, 2012. The increase in total assets is attributable to strong loan activity, offset in part by the continued reduction in higher costing liabilities and maturing investment securities. Don Haake, President & CEO, stated "Although total asset growth has been modest, we are very pleased with the $15.2 million or 15% growth of the bank's loan portfolio over the same period. Moreover, our pipeline of approved and prospective business remains strong and we are confident that we can maintain this momentum over the coming months."
Stockholders' equity continues to increase, growing to $19.5 million at September 30, 2013, compared to $18.9 million at December 31, 2012. All of the Bank's capital ratios remain well in excess of the regulatory guidelines to be considered a "well capitalized" institution. To that end, at September 30, 2013, the Bank's tier one leverage capital ratio was 14.36% and the Bank's total risk based capital ratio was 17.09%.
Asset Quality
The Bank had non-performing loans of $1.6 million as of September 30, 2013, as compared to $2.5 million at December 31, 2012 and $3.1 million at September 30, 2012. The non-performing loans consist of one real estate property owned (OREO) with a carrying value of $1.4 million and one troubled debt restructuring loan (TDR) of $200,000. The OREO is a partially tenanted, income producing property and the TDR is currently paying as agreed. Chairman N. Larry Paragano commented: "I am very pleased with the overall performance of the Bank's portfolio and want to commend our staff and management for their efforts in reducing non-performing loans and for their continued efforts in managing and growing a sound portfolio."
Net Interest Income
Net interest income was $1.3 million for each of the quarters ending September 30, 2013 and September 30, 2012. The Bank's net interest margin for the quarter ended September 30, 2013 improved to 4.31% compared to 4.11% for the same period in 2012.
Net interest income was $3.8 million for the nine months ending September 30, 2013, as compared to $3.7 million in the nine months ending September 30, 2012. The Bank's net interest margin for the nine months ending September 30, 2013 was 4.20% compared to 3.91% for the same period in 2012.
Non-Interest Income
Non-interest income was $70,000 in the quarter ending September 30, 2013, as compared to $84,000 in the quarter ending September 30, 2012.
Non-interest income was $141,000 for the nine months ending September 30, 2013, as compared to $251,000 in the nine months ending September 30, 2012. The higher level of non-interest income in the prior year-to-date period was the result of a higher level of loan prepayments and the associated prepayment fees.
Non-Interest Expense
Total non-interest expense for the quarter ending September 30, 2013 was $972,000, representing little change from $965,000 for the quarter ending September 30, 2012. Total non-interest expense for the nine months ending September 30, 2013 was $3.0 million, as compared to $2.9 million in the nine months ending September 30, 2012. Management continues to focus on reducing the Bank's non-interest expense wherever possible.
THE BANK
Enterprise National Bank N.J., headquartered in Kenilworth, New Jersey, is listed on the OTC Bulletin Board under the symbol "ENBN." 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, E-Banking, remote deposit capture, and free telephone and online banking.
Forward-Looking Statements
This news release may contain 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
Statement of Condition (unaudited)
Assets 9/30/2013 12/31/2012
Cash and due from banks $8,078,641 $16,411,090
Investment securities 9,713,581 12,334,583
Loans 118,032,200 102,847,415
Allowance for loan losses (1,373,756) (1,273,310)
Net loans 116,658,444 101,574,105
Bank premises and equipment, net 404,057 435,873
Real estate owned 1,416,000 1,416,000
Deferred income taxes 813,391 760,131
Other assets 549,150 844,035
Total Assets $137,633,264 $133,775,817
Liabilities and stockholders' equity
Non-interest bearing deposits $11,470,378 $17,211,351
Interest bearing deposits 99,194,790 93,361,737
Total deposits 110,665,168 110,573,088
Borrowings 7,000,000 4,000,000
Other liabilities 439,921 308,043
Total liabilities 118,105,089 114,881,131
Total stockholders' equity 19,528,175 18,894,686
Total Liabilities and stockholders' equity $137,633,264 $133,775,817
Enterprise National Bank
Income Statement (unaudited)
Three Months Ending
9/30/2013 9/30/2012
Interest Income $1,652,879 $1,564,470
Interest Expense 245,742 261,406
Net Interest Income 1,407,137 1,303,064
Provision for Loan Losses 105,000 0
Net Interest Income after Provision for Loan Losses 1,302,137 1,303,064
Non-Interest Income 70,171 83,975
Non-Interest Expenses 971,762 965,159
Income Before Income Taxes 400,546 421,880
Income Taxes 171,000 186,000
Net Income $229,546 $235,880
Average shares outstanding 2,899,094 2,809,994
Net Income per Common Share $0.08 $0.08
Nine Months Ending
9/30/2013 9/30/2012
Interest Income $4,726,231 $4,683,759
Interest Expense 723,929 907,481
Net Interest Income 4,002,302 3,776,278
Provision for Loan Losses 241,374 75,000
Net Interest Income after Provision for Loan Losses 3,760,928 3,701,278
Non-Interest Income 140,513 251,047
Non-Interest Expenses 2,953,862 2,924,328
Income Before Income Taxes 947,579 1,027,997
Income Taxes 414,000 450,072
Net Income $533,579 $577,925
Average shares outstanding 2,879,594 2,811,668
Net Income per Common Share $0.19 $0.21
CONTACT: Donald J. Haake, President & CEO
don.haake@enterprisebank.net
Thomas P. Keating, CFO
thomas.keating@enterprisebank.net
