KENILWORTH, N.J., Nov. 17, 2015 (GLOBE NEWSWIRE) -- Enterprise National Bank N.J. (the “Bank”) (ENBN:PINX) recorded third quarter earnings of $440,000, or $0.15 per share, for the quarter ended September 30, 2015, compared to earnings of $427,000, or $0.15 per share for the quarter ended September 30, 2014 – an increase of $13,000, or 3.0%, year over year. For the nine months ended September 30, 2015, the Bank reported a net profit of $1,161,000 or $0.40 per share compared to $1,055,000 or $0.36 per share for the same period in 2014 – an increase of $106,000, or 10.0%.
FINANCIAL CONDITION
Assets
As of September 30, 2015, total assets were $183.9 million as compared to $157.8 million at December 31, 2014 – an increase of $26.1 million or 16.5%.
Don Haake, President and CEO stated, "We remain pleased with our results through the third quarter, which has been fueled by steady loan growth and continued sound portfolio performance. Loan growth through third quarter was $26.5 million up 18.2% over year-end 2014. This, coupled with an efficiency ratio and net interest margin that is among the best of our peers, has helped us achieve our goals thus far this year."
Capital
Stockholders’ equity totaled $22.7 million at September 30, 2015, compared to $21.4 million at December 31, 2014. All of the Bank’s capital ratios remain strong and well in excess of the current regulatory definition of a “well capitalized” institution. At September 30, 2015, the Bank’s tier one leverage capital ratio was 12.51% and the Bank’s total risk based capital ratio was 14.82%. In addition, the new Common Equity Tier 1 Ratio was 13.61% for the third quarter, which continues to be well in excess of the 4.5% current minimum regulatory threshold and the fully transitioned ratio of 7.0% for the year 2019.
Net Interest Income
Net interest income was $1,836,000 for the quarter ending September 30, 2015 compared to $1,672,000 for the quarter ending September 30, 2014 – an increase of $164,000, or 9.8%. On a year to date basis, net interest income was $5,224,000 for the nine months ended September 30, 2015 compared to $4,714,000 for the nine months ended September 30, 2014 – an increase of $510,000 or 10.8%. The Bank’s net interest margin (NIM) for the six months ended September 30, 2015 remained strong at 4.08% compared to 4.29% for the same period in 2014. The slight decline in the NIM is attributed to higher rate loans paying off late last year compared to the market for new originations.
Provision for Loan Loss
During the nine months ended September 30, 2015, the Bank added an additional $246,000 to the provision. The increase year over year is $78,000 or 46.4% primarily due to the growth in the portfolio.
Non-Interest Expense
Total non-interest expense for the quarter ending September 30, 2015 was $1,051,000 compared to $960,000 for the quarter ended September 30, 2014. For the six months ended September 30, 2015, non-interest expense was $3,198,000 compared to $2,913,000 for the same period in 2014 – an increase of $285,000 or 9.8%. On a year to date basis, compensation and benefits account for $132,000 of the increase related to staffing additions made late in 2014 and in the second quarter in preparation of the Newark Branch opening which is anticipated to open in the first quarter 2016. In addition, OREO expense accounts for $53,000 of the increase due to an additional write-down taken on the Bank’s one property in anticipation of the sale. Other expenses such as consulting fees ($24,000) related to the new branch, miscellaneous loan expense ($9,000) related to reserves for off-balance sheet commitments, director related expense ($8,000) due payments beginning in the second quarter 2014, IT Expense ($17,000) due to upgrades in hardware and telephone systems and regulatory fees ($11,000) primarily due to deposit growth accounted for $69,000 of the increase.
Asset Quality
The bank had two non-performing loans totaling $360,000 at September 30, 2015, as compared to $191,000 for the same period last year. One non-performing loan was added in the first quarter 2015 in the amount of $241,000, which is fully collateralized and continues through the final stages of foreclosure. In maintaining a conservative approach to managing the banks’ balance sheet, management and the Board of Directors elected to take a write-down in the first quarter of $50,000 on its only OREO property. Exclusive of the write-down, the banks’ earnings would have improved approximately 15% year over year.
THE BANK
Enterprise National Bank N.J., headquartered in Kenilworth, New Jersey, is listed on the Pink Sheets 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, ATM cards, debit cards, E-Banking, remote deposit capture, and free telephone and online banking.
Enterprise Bank has received approval for their application for its fourth banking office to be located in the “Ironbound” section of Newark, which is an up and coming urban/industrial community and the home to a growing customer base of the bank. A rendering of the new branch is on our website and we are looking forward to serving the community more fully in the coming months.
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 N.J. | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||||||||
| dollars in thousands | |||||||||||||||
| Assets | 9/30/2015 | 12/31/2014 | Variance | % Chg | |||||||||||
| Cash and due from banks | $ | 3,374 | $ | 2,986 | $ | 388 | 13.0 | % | |||||||
| Investment securities | 7,519 | 8,346 | (827 | ) | -9.9 | % | |||||||||
| Loans | 171,536 | 145,069 | 26,467 | 18.2 | % | ||||||||||
| Allowance for loan losses | (1,965 | ) | (1,719 | ) | (246 | ) | 14.3 | % | |||||||
| Net loans | 169,571 | 143,350 | 26,221 | 18.3 | % | ||||||||||
| Bank premises and equipment, net | 336 | 250 | 86 | 34.4 | % | ||||||||||
| Real estate owned | 1,250 | 1,300 | (50 | ) | -3.8 | % | |||||||||
| Deferred income taxes | 926 | 941 | (15 | ) | -1.6 | % | |||||||||
| Other assets | 954 | 671 | 283 | 42.2 | % | ||||||||||
| Total Assets | $ | 183,930 | $ | 157,844 | $ | 26,086 | 16.5 | % | |||||||
| Liabilities and stockholders' equity | |||||||||||||||
| Non-interest bearing deposits | $ | 19,948 | $ | 17,128 | $ | 2,820 | 16.5 | % | |||||||
| Interest bearing deposits | 125,226 | 104,231 | 20,995 | 20.1 | % | ||||||||||
| Total deposits | 145,174 | 121,359 | 23,815 | 19.6 | % | ||||||||||
| Borrowings | 15,400 | 14,500 | 900 | 6.2 | % | ||||||||||
| Other liabilities | 682 | 567 | 115 | 20.3 | % | ||||||||||
| Total liabilities | 161,256 | 136,426 | 24,830 | 18.2 | % | ||||||||||
| Total stockholders' equity | 22,674 | 21,418 | 1,256 | 5.9 | % | ||||||||||
| Total Liabilities and | |||||||||||||||
| stockholders' equity | $ | 183,930 | $ | 157,844 | $ | 26,086 | 16.5 | % | |||||||
| Enterprise National Bank N.J. | |||||||||||||||
| CONSOLIDATED INCOME STATEMENTS (unaudited) | |||||||||||||||
| For the Quarter Ended: | 9/30/2015 | 9/30/2014 | Variance | % Chg | |||||||||||
| Interest Income | $ | 2,153 | $ | 1,958 | $ | 195 | 10.0 | % | |||||||
| Interest Expense | 317 | 286 | 31 | 10.8 | % | ||||||||||
| Net Interest Income | 1,836 | 1,672 | 164 | 9.8 | % | ||||||||||
| Provision for Loan Losses | 95 | 59 | 36 | 61.0 | % | ||||||||||
| Net Interest Income after | |||||||||||||||
| Provision for Loan Losses | 1,741 | 1,613 | 128 | 7.9 | % | ||||||||||
| Non-Interest Income | 49 | 71 | (22 | ) | -31.0 | % | |||||||||
| Non-Interest Expenses | 1,051 | 960 | 91 | 9.5 | % | ||||||||||
| Income Before Income Taxes | 739 | 724 | 15 | 2.1 | % | ||||||||||
| Income Taxes | 299 | 297 | 2 | 0.7 | % | ||||||||||
| Net Income | $ | 440 | $ | 427 | $ | 13 | 3.0 | % | |||||||
| Net Income per Common Share | $ | 0.15 | $ | 0.15 | $ | 0.00 | |||||||||
| Average shares outstanding | 2,889,594 | 2,895,594 | |||||||||||||
| Enterprise National Bank N.J. | |||||||||||||||
| CONSOLIDATED INCOME STATEMENTS (unaudited) | |||||||||||||||
| YTD By Quarter Ended: | 9/30/2015 | 9/30/2014 | Variance | % Chg | |||||||||||
| Interest Income | $ | 6,098 | $ | 5,521 | $ | 577 | 10.5 | % | |||||||
| Interest Expense | 874 | 807 | 67 | 8.3 | % | ||||||||||
| Net Interest Income | 5,224 | 4,714 | 510 | 10.8 | % | ||||||||||
| Provision for Loan Losses | 246 | 168 | 78 | 46.4 | % | ||||||||||
| Net Interest Income after | |||||||||||||||
| Provision for Loan Losses | 4,978 | 4,546 | 432 | 9.5 | % | ||||||||||
| Non-Interest Income | 177 | 161 | 16 | 9.9 | % | ||||||||||
| Non-Interest Expenses | 3,198 | 2,913 | 285 | 9.8 | % | ||||||||||
| Income Before Income Taxes | 1,957 | 1,794 | 163 | 9.1 | % | ||||||||||
| Income Taxes | 796 | 739 | 57 | 7.7 | % | ||||||||||
| Net Income | $ | 1,161 | $ | 1,055 | $ | 106 | 10.0 | % | |||||||
| Net Income per Common Share | $ | 0.40 | $ | 0.36 | $ | 0.04 | |||||||||
| Average shares outstanding | 2,889,594 | 2,895,594 | |||||||||||||