KENILWORTH, N.J., Feb. 28, 2012 /PRNewswire/ -- Enterprise National Bank N.J. (OTC Bulletin Board: ENBN) reported a net profit of $412,000, or $0.15 per share, for the fiscal period ending December 31, 2011, compared to earnings of $154,000, or $0.07 per share, for the comparable period in 2010. (The net income and earnings per share for the fiscal year ended December 31, 2010, excludes the reversal of the income tax valuation account in the fourth quarter of 2010 [see Consolidated Income Statements]).
Income before taxes, which more than doubled the prior year level, was $765,000 for the fiscal period ending December 31, 2011, compared to $323,000 for the comparable period in 2010. The increase for the fiscal 2011 period resulted from an increase in net interest income, partly offset by higher non-interest expenses relating to the opening of the new Bloomfield branch office.
In a joint statement, N. Larry Paragano, chairman, and Donald J. Haake, president and chief executive officer, said "We have demonstrated the ability to sustain earnings as evidenced by achieving eight consecutive quarters of profitability and are confident in continued earnings and controlled growth, despite the ongoing challenging economy. Our successful expansion to a third branch office, along with a continued focus on cost containment, contributed to the earnings growth".
FINANCIAL CONDITION
As of December 31, 2011, total assets were $132.0 million, as compared to $114.7 million at December 31, 2010, or an increase of 15 percent. The bank experienced a net increase in loans in 2011 of $15.5 million (18 percent), an increase in cash and due from banks of $6.6 million (144 percent) and a decrease in investment securities of $4.3 million (18 percent).
Revenue
Total revenue, defined as net interest income plus non-interest income, increased by $473,000, or 11 percent, as compared to the year ended December 31, 2010. The growth in revenues for the full year period was primarily due to an increase in the average balance of the loan portfolio and a decrease in interest cost on deposits.
Net Interest Income
Net interest income was $4.7 million for fiscal 2011, as compared to $4.2 million for 2010. The increase in net interest income for the current year is primarily due to an increase in average earnings assets to $114 million in the current fiscal year compared to $99 million in 2010. Despite the current rate environment, the bank's net interest margin for the year ended December 31, 2011, remained strong at 4.23 percent, as compared to 4.21 percent for the year ended December 31, 2010.
Provision for Loan Losses
The bank had a provision of $233,000 for the 12-month period ended December 31, 2011, compared to a provision of $360,000 for the 12 months ended December 31, 2010. The allowance for possible loan losses as a percentage of total loans was 1.56 percent as of December 31, 2011, as compared to 1.58 percent at December 31, 2010. The provision reflects management's view of the impact that the current economic environment has, and will continue to place on our borrowers, but in no way suggests an increased risk of loss potential.
Non-Interest Income
Non-interest income totaled $122,000 in 2011, as compared to $166,000 for 2010.
Non-Interest Expense
Total non-interest expense for the 12 months ended December 31, 2011, was $3.8 million, a 4 percent increase, as compared to $3.7 million for the 12 months ended December 31, 2010. Management has been committed to continuing its cost-austerity efforts and has been successful in controlling the bank's non-interest expense, taking into consideration the addition of a third branch office in mid-2011. Salaries and employee benefit expenses were $2.1 million and $2.0 million for the 12 months ended December 31, 2011, and December 31, 2010, respectively, or a 3.8 percent increase in 2011. Occupancy costs rose 39 percent in 2011 to $277,000, as compared to $199,000 in 2010, primarily related to the opening of a third branch office.
ASSET QUALITY
The bank had non-performing loans of $5.0 million as of December 31, 2011, as compared to $4.7 million at December 31, 2010, and charged-off loans totaled $3,000 as compared to $145,000 in 2010. It is important to note that the loans identified as non-performing remain well collateralized and management believes that any material risk of loss should be mitigated by the strong collateralized composition of the portfolio. However, the bank continues to closely monitor the trend within the portfolio and is prepared to take whatever steps are necessary to ensure it is protected against future potential deterioration.
CAPITAL
Stockholders' equity totaled $18.1 million at December 31, 2011, compared to $17.4 million at December 31, 2010. All the bank's capital ratios remain well in excess of the current regulatory definition of a "well capitalized" institution. The bank's tier one leverage capital ratio at December 31, 2011, was 12.80 percent and the bank's total risk-based capital ratio at December 31, 2011, was 17.49 percent.
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.
Summary financial information is provided in this press release which should be read in conjunction with the full audited financial statements which should be available prior to March 31, 2012 on the Company's web site at www.enterprisebank.net.
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 forwardlooking 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. CONSOLIDATED INCOME STATEMENTS (unaudited) | |||
For Fiscal Years ended: | 12/31/11 | 012/31/10 | |
Total interest income | $6,110,595 | $5,738,309 | |
Total interest expense | 1,407,004 | 1,551,991 | |
Net interest income | 4,703,591 | 4,186,318 | |
Provision for possible loan losses | 232,649 | 360,300 | |
Net interest income after provision | 4,470,942 | 3,826,018 | |
Service fees and charges | 109,634 | 142,791 | |
Gain on sale of Securities | 9,432 | 21,788 | |
Other | 2,700 | 1,815 | |
Total non-interest income | 121,766 | 166,394 | |
Personnel expenses | 2,078,024 | 2,001,006 | |
Occupancy expense | 277,235 | 198,739 | |
Equipment | 560,572 | 554,872 | |
Advertising | 9,613 | 3,370 | |
Other expense | 902,427 | 911,715 | |
Total non-interest expense | 3,827,871 | 3,669,702 | |
Income before taxes | 764,837 | 322,710 | |
Income tax expense (benefit) | 352,680 | (1,757,481) | |
Net income | $412,157 | $2,080,191 | |
Shares outstanding | 2,794,022 | 2,159,506 | |
Net income per share | $ .15 | $ .96 | |
Less: Income tax valuation allowance reversal (a) | $ 1,925,807 | ||
Net income excluding income tax valuation reversal | $412,157 | $ 154,384 | |
Net income per share, excluding the income tax valuation reversal | $ .15 | $ .07 | |
Restatement of 2010 Financial statements - Subsequent to the issuance of the 2010 financial statements, an error was discovered related to the calculation of the Deferred Tax Asset and related income tax expense (benefit) for the year ended December 31, 2010. The impact of the prior period adjustment on the consolidated statements of financial condition, statements of income and changes in equity as of December 31, 2010 were: deferred income tax and total assets were reduced by $87,000, and accumulated deficit and total stockholder's equity were reduced by $87,000. Income tax benefit and net income were also reduced by $87,000 on the consolidated statements of income. (a) The net deferred tax assets had been offset by a valuation allowance of $1,925,807 as of December 31, 2009. Based upon an assessment of current and projected future operations, management determined that the deferred tax valuation allowance was no longer necessary at December 31, 2010. | |||
Contacts: Donald J. Haake
President & CEO
don.haake@enterprisebank.net
Thomas P. Keating, CFO
thomas.keating@enterprisebank.net
SOURCE Enterprise National Bank N.J.
