KENILWORTH, N.J., Jan. 29 /PRNewswire-FirstCall/ -- Enterprise
National Bank N.J. (the "Bank") (OTC:ENBN) (BULLETIN BOARD: ENBN)
reported a net loss of $26 thousand, or $0.01 per share, for the
quarter ended December 31, 2007, a significant improvement from a
loss of $161 thousand in the fourth quarter of 2006. The fourth
quarter results were also an improvement over the results for the
third quarter of 2007, when the Bank recognized a net loss per
share of $0.06. For the year ended December 31, 2007, the Bank
recognized a net loss of $460 thousand, or $0.25 per share,
compared to a net loss of $330 thousand, or $0.18 per share for
2006. The increased loss was primarily a result of a $542 thousand
increase in non-interest expense, offset primarily by an increase
in non-interest income of $141 thousand and net interest income of
$76 thousand, and a decrease in the provision for possible loan
losses of $194 thousand. The increase in non-interest expense was
primarily attributable to the full year recognition of staff hired
in 2006 necessary to support the continued growth of the Bank.
FINANCIAL CONDITION The Bank ended the fourth quarter of 2007 with
total assets of $83.7 million as compared to $68.7 million at
December 31, 2006, reflecting total asset growth of 21.8%. During
the twelve month period, the Bank experienced a net growth in loans
of $11.7 million, an increase in cash and due from banks of $5.1
million and a decrease in investment securities of $1.7 million.
During the twelve months of 2007, the Bank funded $23.7 million in
new loan originations, primarily commercial real estate and
business loans, partially offset by payoffs and repayments totaling
$12 million. Loans, net of allowance for loan losses, totaled $54.5
million at December 31, 2007, an increase of $11.7 million, or
27.3% from $42.8 million at December 31, 2006. Asset growth was
funded by an increase in deposits of $12.1 million, or 22.7%, to
$65.4 million at December 31, 2007 from $53.3 million at December
31, 2006 and increased borrowings of $2.9 million, or 82.9%, to
$6.4 million at December 31, 2007 from $3.5 million at December 31,
2006. Of significance, was a $10.0 million increase to $30.0
million at December 31, 2007, from $20.0 million at December 31,
2006 in savings and interest bearing demand deposits. REVENUES
Total revenue, defined as net interest income plus non-interest
income, increased by $135 thousand, or 24.1%, during the fourth
quarter of 2007 compared to the fourth quarter of 2006. For the
year ended December 31, 2007, total revenue increased by $216
thousand, or 9.77%, as compared to the year ended December 31,
2006. The growth in revenues was primarily due to continued growth
in the volume of interest earning assets. Net Interest Income Net
interest income for the fourth quarter of 2007 was $584 thousand,
as compared to $547 thousand in the fourth quarter of 2006, and
$2.24 million for the full year 2007, as compared to $2.16 million
for the full year 2006. The increase in the net interest income is
primarily due to an increase in average earnings assets. Net
interest margin decreased to 2.96% in the fourth quarter of 2007,
as compared to 3.34% during the year ago period. The Bank's net
interest margin for the year ended December 31, 2007 was 3.09%,
compared to 3.35% for the year ended December 31, 2006. The
decrease in the net interest margin was primarily due to higher
funding costs in 2007. Provision for Loan Losses During the fourth
quarter of 2007, the Bank did not record a provision for possible
loan losses. The provision for possible loan losses was $172
thousand in the fourth quarter of 2006. The Bank provided $11
thousand for the twelve month period ended December 31, 2007,
compared to $205 thousand for the twelve months ended December 31,
2006. The allowance for possible loan losses as a percentage of
total loans was 1.05% as of December 31, 2007 as compared to 1.31%
at December 31, 2006. Non-Interest Income Non-interest income
totaled $111 thousand for the fourth quarter of 2007, as compared
to $13 thousand for the fourth quarter of 2006. The increase was
primarily due to loan prepayment penalties received in the fourth
quarter. For the twelve months of 2007, non-interest income totaled
$190 thousand as compared to $49 thousand for the twelve months of
2006. The increase was primarily due to loan prepayment penalties
received in the third and fourth quarters of 2007. Non-Interest
Expense Total non-interest expense for the fourth quarter of 2007
was $721 thousand, compared to $549 thousand in the fourth quarter
of 2006, an increase of 31.3%. For the twelve months ended December
31, 2007, non-interest expense totaled $2.9 million, a 26.1%
increase as compared to $2.3 million for the twelve months ended
December 31, 2006. Salaries and employee benefits expense was $402
thousand in the fourth quarter of 2007, a 52.3% increase, compared
to $264 thousand in the fourth quarter of 2006. Salaries and
employee benefits were $1.6 million and $1.1 million for the twelve
months ended December 31, 2007 and December 31, 2006, respectively.
The increase in staff related expenses was to support the expansion
and infrastructure to meet the needs created by increased loan
activity and deposit activity. ASSET QUALITY The Bank had no
non-performing loans as of December 31, 2007. No loans were charged
off in 2007 and no loans have been charged off since the inception
of the Bank. CAPITAL Stockholders' equity totaled $11.3 million at
December 31, 2007, compared to $11.5 million at December 31, 2006.
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 & Internet
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)
12/31/07 12/31/06 Assets Cash and due from banks $6,946,288
$1,790,215 Investment securities 21,175,280 22,852,026 Loans
55,049,229 43,408,477 Allowance for loan losses 580,373 569,161 Net
loans 54,468,856 42,839,316 Bank premises and equipment-net 688,148
832,083 Other assets 460,049 390,049 Total assets $83,738,621
$68,703,689 Liabilities and stockholders' equity Non-interest
bearing deposits $5,447,778 $6,803,083 Savings and interest bearing
demand 30,030,156 20,003,602 Time deposits 29,960,357 26,492,446
Total deposits 65,438,291 53,299,131 Borrowings 6,400,000 3,500,000
Other liabilities 614,466 415,803 Total liabilities 72,452,757
57,214,934 Total stockholders' equity 11,285,864 11,488,755 Total
liabilities and stockholders' equity $83,738,621 $68,703,689 INCOME
STATEMENT (unaudited) For quarters ended: 12/31/07 09/30/07
06/30/07 03/31/07 12/31/06 Total interest income $1,326,811
$1,243,784 $1,185,635 $1,182,199 $1,131,490 Total interest expense
743,015 669,662 649,858 638,293 584,611 Net interest income 583,796
574,122 535,777 543,906 546,879 Provision for possible loan losses
- - - 11,212 172,000 Net interest income after provision 583,796
574,122 535,777 532,694 374,879 Service fees and charges 110,815
51,529 13,556 12,277 10,359 Gain on sale of loans - - - - 2,925
Other 328 704 151 201 - Total non-interest income 111,143 52,233
13,707 12,478 13,284 Personnel expenses 402,169 410,586 411,133
389,082 263,804 Occupancy expense 41,129 43,629 41,301 48,052
41,686 Equipment 128,020 128,220 124,276 133,112 127,050
Advertising 8,558 12,433 9,612 4,981 100 Other expense 140,709
138,929 124,936 132,299 116,601 Total non-interest expense 720,585
733,797 711,258 707,526 549,241 Income (loss) before taxes (25,646)
(107,442) (161,774) (162,354) (161,078) Income taxes 500 500 500
1,389 - Net income (loss) $(26,146) $(107,942) $(162,274)
$(163,743) $(161,078) For twelve months ended: 12/31/07 12/31/06
Total interest income $4,938,429 $4,180,857 Total interest expense
2,700,828 2,018,771 Net interest income 2,237,601 2,162,086
Provision for possible loan losses 11,212 205,000 Net interest
income after provision 2,226,389 1,957,086 Service fees and charges
188,177 44,456 Gain on sale of loans - 4,309 Other 1,384 146 Total
non-interest income 189,561 48,911 Personnel expenses 1,612,970
1,123,656 Occupancy expense 174,111 167,288 Equipment 513,628
501,384 Advertising 35,584 64,550 Other expense 536,873 474,634
Total non-interest expense 2,873,166 2,331,512 Income (loss) before
taxes (431,570) (166,618) Income taxes 2,889 4,156 Net income
(loss) $(460,105) $(329,671) ENTERPRISE NATIONAL BANK N.J. SELECTED
CONSOLIDATED FINANCIAL DATA (unaudited) For quarters ended:
12/31/2007 09/30/2007 06/30/2007 03/31/2007 Share Data Book value
per share (basic, period end) $6.25 $6.19 $6.17 $6.31 Net
income(loss) per share (basic) ($0.01) ($0.06) ($0.09) ($0.09) Net
income(loss) per share (diluted) ($0.01) ($0.06) ($0.09) ($0.09)
Selected Averages Average net loans $51,771,461 $49,047,564
$46,603,835 $44,885,896 Average total deposits $62,271,160
$54,606,291 $55,783,473 $56,089,210 Average earning assets
$78,797,788 $71,073,723 $69,727,231 $69,718,078 Selected
Performance Ratios Return on average assets -0.03% -0.59% -0.91%
-0.91% Return on average equity -0.23% -3.88% -5.74% -5.73% Net
interest margin 2.96% 3.23% 3.07% 3.12% Non-interest income as % of
average assets 0.55% 0.29% 0.08% 0.07% Non-interest expense as % of
average assets 3.59% 4.04% 3.97% 3.95% Asset Quality Net
charge-offs $- $- $- $- Non-performing loans $- $- $- $- Allowance
for possible loan losses to total loans 1.05% 1.20% 1.20% 1.24%
Non-performing loans to total loans 0.00% 0.00% 0.00% 0.00% Capital
Tier 1 leverage ratio 13.89% 15.25% 15.72% 15.94% Tier 1 capital to
risk-weighted assets 18.12% 20.67% 20.85% 22.67% Total capital to
risk- weighted assets 19.06% 21.74% 21.93% 23.82% For quarters
ended: 12/31/06 9/30/06 Share Data Book value per share (basic,
period end) $6.36 $6.42 Net income(loss) per share (basic) ($0.09)
($0.02) Net income(loss) per share (diluted) ($0.09) ($0.02)
Selected Averages Average net loans $41,647,877 $41,696,996 Average
total deposits $52,003,041 $51,759,929 Average earning assets
$65,561,662 $65,467,881 Selected Performance Ratios Return on
average assets -0.95% -0.20% Return on average equity -5.57% -1.16%
Net interest margin 3.34% 3.22% Non-interest income as % of average
assets 0.08% 0.06% Non-interest expense as % of average assets
3.24% 3.30% Asset Quality Net charge-offs $- $- Non-performing
loans $- $- Allowance for possible loan losses to total loans 1.31%
0.95% Non-performing loans to total loans 0.00% 0.00% Capital Tier
1 leverage ratio 16.97% 17.19% Tier 1 capital to risk- weighted
assets 24.64% 24.59% Total capital to risk- weighted assets 25.86%
25.43% DATASOURCE: Enterprise National Bank N.J. CONTACT: David L.
Gordon Executive Vice President & CFO of Enterprise National
Bank N.J., +1-908-653-1800,
Copyright