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Enterprise National Bank N.J. Announces First Quarter 2015 Earnings

KENILWORTH, N.J., May 5, 2015 (GLOBE NEWSWIRE) -- Enterprise National Bank N.J. (the “Bank”) (OTCBB:ENBN) recorded first quarter earnings of $315,000, or $0.11 per share, for the quarter ended March 31, 2015, compared to earnings of $291,000, or $0.10 per share for the quarter ended March 31, 2014 – an increase of $24,000, or 8.2%, year over year.

FINANCIAL CONDITION

Assets
As of March 31, 2015, total assets were $169.9 million as compared to $157.8 million at December 31, 2014 – an increase of $12.0 million or 7.6%.

Don Haake, President and CEO stated, “We experienced some loan payoffs at year-end, but we regained momentum midway through the first quarter and ended ahead plan. More importantly, we remain pleased with the steady growth of our asset base and the continued increase in business activity since 2013 through the end of the current quarter. The pace of new loan closings persists as well - with total loans at the end of the first quarter of $152.4 million, up $7.4 million, or 5.1% over year-end. We believe our controlled growth strategy has allowed us to continue to produce consistent earnings, while maintaining sound asset quality and stable margins.”

Capital
Stockholders’ equity totaled $21.8 million at March 31, 2015, compared to $21.4 million at December 31, 2014. All of the Bank’s capital ratios are exceptionally strong and remain well in excess of the current regulatory definition of a “well capitalized” institution. At March 31, 2015, the Bank’s tier one leverage capital ratio was 13.27% and the Bank’s total risk based capital ratio was 16.28%. In addition, the new Common Equity Tier 1 Ratio was 15.03% for the first quarter, which is 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 $1.7 million for the quarter ending March 31, 2015 compared to $1.5 million for the quarter ending March 31, 2014 – an increase of $180,000, or 12.2%. The Bank’s net interest margin (NIM) for the three months ended March 31, 2015 remained strong at 4.20% compared to 4.28% for the same period in 2014. The slight decline in the NIM is attributed to the higher rate loans paying off late last year.

Non-Interest Expense
Total non-interest expense for the quarter ending March 31, 2015 was $1,120,000 compared to $972,000 for the quarter ended March 31, 2014. The increase was primarily due to an increase in OREO expense of $62,000 related to the write-down on the OREO property. In addition, compensation and benefits increased approximately $49,000 year over year due to the additional staff added late in the first quarter in 2014 and the upgrade of some personnel in various positions throughout last year. Lastly, due to the deposit growth regulatory expense also increased approximately $12,000.

Asset Quality
The bank had two non-performing loans totaling $363,000 at March 31, 2015, as compared to $190,000 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 in 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. Management is currently negotiating a contract of sale for this property. Exclusive of the write-down, the banks’ earnings would have improved approximately 25% year over year.

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, ATM cards, debit cards, E-Banking, remote deposit capture, and free telephone and online banking.

Enterprise Bank has filed an application for its fourth banking office to be located in the Ironbound section of Newark. The “Ironbound” is an up and coming urban/industrial community and the home to a growing customer base of the bank. Watch our website site for future updates.

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
Assets3/31/2015 12/31/2014 Variance % Chg
Cash and due from banks$ 8,036 $ 2,986 $ 5,050 169.1%
Investment securities 8,182 8,346 (164) -2.0%
Loans 152,425 145,069 7,356 5.1%
Allowance for loan losses (1,781) (1,719) (62) 3.6%
Net loans 150,644 143,350 7,294 5.1%
Bank premises and equipment, net 223 250 (27) -10.8%
Real estate owned 1,250 1,300 (50) -3.8%
Deferred income taxes 947 941 6 0.6%
Other assets 591 671 (80) -11.9%
Total Assets$ 169,873 $ 157,844 $ 12,029 7.6%
Liabilities and stockholders' equity
Non-interest bearing deposits$ 18,972 $ 17,128 $ 1,844 10.8%
Interest bearing deposits 112,290 104,231 8,059 7.7%
Total deposits 131,262 121,359 9,903 8.2%
Borrowings 16,200 14,500 1,700 11.7%
Other liabilities 644 567 77 13.6%
Total liabilities 148,106 136,426 11,680 8.6%
Total stockholders' equity 21,767 21,418 349 1.6%
Total Liabilities and stockholders' equity $ 169,873 $ 157,844 $ 12,029 7.6%
Enterprise National Bank N.J.
CONSOLIDATED INCOME STATEMENTS (unaudited)
For the Quarter Ended:3/31/2015 3/31/2014 Variance % Chg
Interest Income$ 1,921 $ 1,727 $ 194 11.2%
Interest Expense 266 252 14 5.6%
Net Interest Income 1,655 1,475 180 12.2%
Provision for Loan Losses 62 48 14 29.2%
Net Interest Income after
Provision for Loan Losses 1,593 1,427 166 11.6%
Non-Interest Income 60 56 4 7.1%
Non-Interest Expenses 1,120 972 148 15.2%
Income Before Income Taxes 533 511 22 4.3%
Income Taxes 218 220 (2) -0.9%
Net Income$ 315 $ 291 $ 24 8.2%
Net Income per Common Share$ 0.11 $ 0.10 $ 0.01
Average shares outstanding 2,889,594 2,893,594





Contacts: Donald J. Haake, President & CEO don.haake@enterprisebank.net David J. Onderko, CFO/COO david.onderko@enterprisebank.net Website: www.enterprisebank.net

Source:Enterprise National Bank