KENILWORTH, N.J., Jan. 23 /PRNewswire-FirstCall/ -- Enterprise National Bank N.J. (the "Bank") (BULLETIN BOARD: ENBN) reported a net loss of $161 thousand, or $0.09 per share, for the quarter ended December 31, 2006, a decrease from a profit of $7 thousand in the fourth quarter of 2005. The Bank had recognized a net loss per share of $0.02 for the third quarter of 2006.
For the year ended December 31, 2006, the Bank recognized a net loss of $332 thousand, or $0.18 per share, compared to earnings of $12 thousand, or $0.01 per share for 2005. The decrease in earnings was primarily a result of a $58 thousand increase in non-interest expense and $152 thousand increase in the provision for possible loan losses. The increase in non-interest expense was primary attributable to the expenses that were associated with the Bank's new branch office. The increase in the provision for possible loan losses was a result of the Bank's recognition of deterioration in certain loans in the fourth quarter of 2006.
FINANCIAL CONDITION
The Bank ended the fourth quarter of 2006 with total assets of $68.7 million as compared to $59.6 million at December 31, 2005, reflecting total asset growth of 15.3%. During the twelve month period, the Bank experienced a net growth in loans of $5.7 million, an increase in cash and due from banks of $0.9 million and an increase in investment securities of $2.5 million. During the twelve months of 2006, the Bank funded $12.7 million in new loan originations, primarily commercial real estate and business loans, partially offset by payoffs and repayments totaling $6.8 million.
Loans, net of allowance for loan losses, totaled $42.8 million at December 31, 2006, an increase of $5.6 million, or 15.1% from $37.2 million at December 31, 2005.
Asset growth was funded by an increase in deposits of $15.8 million, or 42.1%, to $53.3 million at December 31, 2006 from $37.5 million at December 31, 2005 and decreased borrowings of $6.6 million, or 65.3%, to $3.5 million at December 31, 2006 from $10.1 million at December 31, 2005.
REVENUES
Total revenue, defined as net interest income plus non-interest income, increased by $42 thousand, or 8.1%, during the fourth quarter of 2006 in comparison to the fourth quarter of 2005. For the twelve months of 2006, total revenue increased by $263 thousand, or 13.5%, as compared to the twelve months of 2005. The growth in revenues was primarily due to continued growth in interest earning assets.
Net Interest Income
Net interest income for the fourth quarter of 2006 was $547 thousand, as compared to $510 thousand in the fourth quarter of 2005, and $2.2 million for the twelve months of 2006, as compared to $1.9 million for the twelve months of 2005. The increase in the net interest income is primarily due to an increase in average earnings assets. Net interest margin decreased to 3.34% in the fourth quarter of 2006, as compared to 3.76% during the year ago period and increased from 3.22% in the third quarter of 2006. The Bank's net interest margin for the year ended December 31, 2006 was 3.35%, compared to 3.48% for the year ended December 31, 2005. The decrease in the net interest margin was primarily due to higher funding costs in 2006.
Provision for Loan Losses
During the fourth quarter of 2006, the Bank recorded a $172 thousand provision for possible loan losses; by comparison, the provision for possible loan losses was $20 thousand in the fourth quarter of 2005. During the fourth quarter of 2006, the Bank recognized deterioration in certain loans, resulting in additional loan loss provisions. The Bank provided $205 thousand for the twelve month period ended December 31, 2006, compared to $52 thousand for the twelve months ended December 31, 2005. The allowance for possible loan losses as a percentage of total loans was 1.31% as of December 31, 2006 as compared to 0.98% at December 31, 2005.
Non-Interest Income
Non-interest income totaled $13 thousand for the fourth quarter of 2006, as compared to $8 thousand for the fourth quarter of 2005. The increase was primarily due to a higher level of loan and deposit related fees. For the twelve months of 2006, non-interest income totaled $49 thousand as compared to $67 thousand for the twelve months of 2005. The decrease was primarily due to decreases in gains on sales of investments partially offset by increased gains on the sale of loans.
Non-Interest Expense
Total non-interest expense for the fourth quarter of 2006 was $549 thousand, compared to $491 thousand in the fourth quarter of 2005. Total non- interest expense increased 11.8% for the fourth quarter of 2006. For the twelve months ended December 31, 2006, non-interest expense totaled $2.3 million, a 21.1% increase as compared to $1.9 million for the twelve months ended December 31, 2005.
Salaries and employee benefits expense was $264 thousand in the fourth quarter of 2006, a 8.2% increase, compared to $244 thousand in the fourth quarter of 2005. Salaries and employee benefits were $1.1 million and $1.0 million for the twelve months ended December 31, 2006 and December 31, 2005, respectively. The increase in staff related expenses was to support the expansion and infrastructure to meet the needs created by increased loan activity, deposit activity and the Bank's new full service branch office.
ASSET QUALITY
The Bank had no non-performing loans as of December 31, 2006. No loans were charged off during the fourth quarter of 2006 and no loans have been charged off since the inception of the Bank.
CAPITAL
Stockholders' equity totaled $11.5 million at December 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 "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 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 BANK
BALANCE SHEET (unaudited)
12/31/06 12/31/05
Assets
Cash and due from banks $1,790,215 $856,413
Investment securities 22,852,026 20,404,125
Loans 43,408,477 37,522,549
Allowance for loan losses 569,161 366,500
Net loans 42,839,316 37,156,049
Bank premises and equipment-net 832,083 908,849
Other assets 390,049 297,206
Total assets $68,703,689 $59,622,642
Liabilities and stockholders' equity
Non-interest bearing deposits $6,803,083 $5,416,899
Savings and interest bearing demand 20,003,602 13,224,921
Time deposits 26,492,446 18,873,833
Total deposits 53,299,131 37,515,653
Borrowings 3,500,000 10,145,000
Other liabilities 415,803 268,912
Total liabilities 57,214,934 47,929,565
Total stockholders' equity 11,488,755 11,693,077
Total liabilities and stockholders'
equity $68,703,689 $59,622,642
ENTERPRISE NATIONAL BANK N.J.
INCOME STATEMENT (unaudited)
For quarters
ended: 12/31/06 09/30/06 6/30/06 3/31/06 12/31/05
Total interest
income $1,131,490 $1,077,406 $1,014,811 $957,150 $819,616
Total
interest
expense 584,611 550,117 458,309 427,915 309,657
Net interest
income 546,879 527,289 556,502 529,235 509,959
Provision
for possible
loan losses 172,000 13,000 - 20,000 20,000
Net interest
income after
provision 374,879 514,289 556,502 509,235 489,959
Service fees
and charges 10,359 9,275 17,932 6,890 7,892
Gain on sale
of loans 2,925 - 1,384 - -
Other - 146 - - 335
Total non-
interest
income 13,284 9,421 19,316 6,890 8,227
Personnel
expenses 263,804 267,000 307,784 285,068 244,616
Occupancy
expense 41,686 43,463 37,845 44,294 41,257
Equipment 127,050 125,933 126,045 122,356 104,883
Advertising 100 12,895 21,405 30,150 25,000
Other expense 116,601 107,835 131,170 119,028 75,740
Total non-
interest
expense 549,241 557,126 624,249 600,896 491,496
Income (loss)
before taxes - (33,416) (48,431) (84,771) 6,690
Income taxes - - - 4,156 -
Net income
(loss) $(161,078) $(33,416) $(48,431) $(88,927) $6,690
For twelve
months
ended: 12/31/06 12/31/05
Total
interest
income $4,180,857 $2,920,612
Total
interest
expense 2,020,952 1,042,110
Net
interest
income 2,159,905 1,878,502
Provision
for
possible
loan
losses 205,000 51,500
Net
interest
income
after
provision 1,954,905 1,827,002
Service
fees and
charges 44,456 54,096
Gain on
sale of
loans 4,309 1,571
Other 146 11,731
Total
non-interest
income 48,911 67,398
Personnel
expenses 1,123,656 1,017,010
Occupancy
expense 167,288 93,396
Equipment 501,384 385,092
Advertising 64,550 44,683
Other expense 474,634 341,629
Total
non-interest
expense 2,331,512 1,881,810
Income
(loss)
before
taxes (166,618) 12,590
Income taxes 4,156 500
Net income
(loss) $(331,852) $12,090
ENTERPRISE NATIONAL BANK N.J.
SELECTED CONSOLIDATED FINANCIAL DATA (unaudited)
For quarters
ended: 12/31/2006 9/30/2006 6/30/2006 3/31/2006 12/31/05
Share Data
Book value
per share
(basic,
period end) $6.36 $6.42 $6.37 $6.37 $6.48
Net income
(loss) per
share
(basic) ($0.09) ($0.02) ($0.03) ($0.05) $0.00
Net income
(loss) per
share
(diluted) ($0.09) ($0.02) ($0.03) ($0.05) $0.00
Selected
Averages
Average net
loans $41,647,877 $41,696,996 $40,231,806 $39,125,110 $33,990,217
Average
total
deposits $52,003,041 $51,759,929 $49,127,964 $45,404,143 $38,321,831
Average
earning
assets $65,561,662 $65,467,881 $64,458,693 $63,017,972 $54,570,899
Selected
Performance
Ratios
Return on
average
assets -0.95% -0.20% -0.29% -0.55% 0.05%
Return on
average
equity -5.57% -1.16% -1.67% -3.03% 0.23%
Net interest
margin 3.34% 3.22% 3.53% 3.36% 3.76%
Non-interest
income as %
of average
assets 0.08% 0.06% 0.12% 0.04% 0.06%
Non-interest
expense as %
of average
assets 3.24% 3.30% 3.75% 3.68% 3.55%
Asset Quality
Net charge-offs $- $- $- $- $-
Non-performing
loans $- $- $485,000 $485,000 $-
Allowance for
possible loan
losses to total
loans 1.31% 0.95% 0.93% 0.98% 0.98%
Non-performing
loans to total
loans 0.00% 0.00% 1.16% 1.23% 0.00%
Capital
Tier 1 leverage
ratio 16.97% 17.19% 17.46% 17.92% 20.93%
Tier 1 capital
to risk-weighted
assets 24.64% 24.59% 25.57% 27.17% 29.22%
Total capital
to risk-weighted
assets 25.86% 25.43% 26.42% 28.06% 30.13%
