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

KENILWORTH, N.J., Aug. 10, 2015 (GLOBE NEWSWIRE) -- Enterprise National Bank N.J. (the “Bank”) (PINX:ENBN) recorded second quarter earnings of $409,000, or $0.14 per share, for the quarter ended June 30, 2015, compared to earnings of $337,000, or $0.12 per share for the quarter ended June 30, 2014 – an increase of $72,000, or 21.4%, year over year. For the six months ended June 30, 2015, the Bank reported a net profit of $724,000 or $0.25 per share compared to $628,000 or $0.22 per share for the same period in 2014 – an increase of $96,000, or 15.3%.

FINANCIAL CONDITION

Assets

As of June 30, 2015, total assets were $179.1 million as compared to $157.8 million at December 31, 2014 – an increase of $21.3 million or 13.5%.

Don Haake, President and CEO stated, "Our results for the second quarter reflect the successful execution of our business plan, which is focused on providing commercial lending to the businesses and communities we serve, augmented by a vigorous attention to asset quality and expense control. Loan growth through second quarter was $16 million up 11% over year-end 2014. Furthermore, we continue to maintain a disciplined approach to running our company with asset quality, efficiency and net interest margin among the best of our peers."

Capital

Stockholders’ equity totaled $22.2 million at June 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 June 30, 2015, the Bank’s tier one leverage capital ratio was 12.72% and the Bank’s total risk based capital ratio was 15.45%. In addition, the new Common Equity Tier 1 Ratio was 14.22% for the second 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 June 30, 2015 compared to $1.6 million for the quarter ending June 30, 2014 – an increase of $131,000, or 8.2%. On a year to date basis, net interest income was $3.4 million for the six months ended June 30, 2015 compared to $3.0 million for the six months ended June 30, 2014 – an increase of $311,000 or 10.1%. The Bank’s net interest margin (NIM) for the six months ended June 30, 2015 remained strong at 4.15% compared to 4.32% 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.

Non-Interest Expense

Total non-interest expense for the quarter ending June 30, 2015 was $1,026,000 compared to $981,000 for the quarter ended June 30, 2014. For the six months ended June 30, 2015, non-interest expense was $2,146,000 compared to $1,953,000 for the same period in 2014 – an increase of $193,000 or 9.9%. On a year to date basis, compensation and benefits account for $82,000 of the increase related to staffing additions made late in 2014 and in the second quarter in preparation of the Newark Branch opening this fall. 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 ($14,000) related to the new branch, miscellaneous loan expense ($10,000) related to reserves for off-balance sheet commitments, director related expense ($8,000) due payments beginning in the second quarter 2014 and regulatory fees ($7,000) primarily due to deposit growth accounted for $39,000 of the increase.

Asset Quality

The bank had two non-performing loans totaling $360,000 at June 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 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 23% 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
Assets6/30/2015 12/31/2014 Variance % Chg
Cash and due from banks$ 8,573 $ 2,986 $ 5,587 187.1%
Investment securities 7,934 8,346 (412) -4.9%
Loans 161,045 145,069 15,976 11.0%
Allowance for loan losses (1,870) (1,719) (151) 8.8%
Net loans 159,175 143,350 15,825 11.0%
Bank premises and equipment, net 231 250 (19) -7.6%
Real estate owned 1,250 1,300 (50) -3.8%
Deferred income taxes 919 941 (22) -2.3%
Other assets 1,018 671 347 51.7%
Total Assets$ 179,100 $ 157,844 $ 21,256 13.5%
Liabilities and stockholders' equity
Non-interest bearing deposits$ 20,022 $ 17,128 $ 2,894 16.9%
Interest bearing deposits 119,026 104,231 14,795 14.2%
Total deposits 139,048 121,359 17,689 14.6%
Borrowings 17,125 14,500 2,625 18.1%
Other liabilities 722 567 155 27.3%
Total liabilities 156,895 136,426 20,469 15.0%
Total stockholders' equity 22,205 21,418 787 3.7%
Total Liabilities and
stockholders' equity $ 179,100 $ 157,844 $ 21,256 13.5%


Enterprise National Bank N.J.
CONSOLIDATED INCOME STATEMENTS (unaudited)
For the Quarter Ended:6/30/2015 6/30/2014 Variance % Chg
Interest Income$ 2,024 $ 1,836 $ 188 10.2%
Interest Expense 291 269 22 8.2%
Net Interest Income 1,733 1,567 166 10.6%
Provision for Loan Losses 89 61 28 45.9%
Net Interest Income after
Provision for Loan Losses 1,644 1,506 138 9.2%
Non-Interest Income 70 34 36 105.9%
Non-Interest Expenses 1,026 981 45 4.6%
Income Before Income Taxes 688 559 129 23.1%
Income Taxes 279 222 57 25.7%
Net Income$ 409 $ 337 $ 72 21.4%
Net Income per Common Share$ 0.14 $ 0.12 $ 0.02
Average shares outstanding 2,889,594 2,893,594
Enterprise National Bank N.J.
CONSOLIDATED INCOME STATEMENTS (unaudited)
YTD By Quarter Ended:6/30/2015 6/30/2014 Variance % Chg
Interest Income$ 3,945 $ 3,563 $ 382 10.7%
Interest Expense 557 521 36 6.9%
Net Interest Income 3,388 3,042 346 11.4%
Provision for Loan Losses 151 109 42 38.5%
Net Interest Income after
Provision for Loan Losses 3,237 2,933 304 10.4%
Non-Interest Income 130 90 40 44.4%
Non-Interest Expenses 2,146 1,953 193 9.9%
Income Before Income Taxes 1,221 1,070 151 14.1%
Income Taxes 497 442 55 12.4%
Net Income$ 724 $ 628 $ 96 15.3%
Net Income per Common Share$ 0.25 $ 0.22 $ 0.03
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