Enterprise Bank NJ Announces First Quarter 2016 Earnings Increases 45.7% Year-Over-Year

KENILWORTH, N.J., May 23, 2016 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the “Bank”) (Pink Sheets:ENBN) recorded first quarter earnings of $459,000, or $0.15 per share, for the quarter ended March 31, 2016, compared to earnings of $315,000, or $0.11 per share for the quarter ended March 31, 2015 – an increase of $144,000, or 45.7%, year over year.


As of March 31, 2016, total assets were $202.8 million as compared to $192.8 million at December 31, 2015 – an increase of $10.0 million or 5.2%.

Don Haake, President and CEO stated, “Business has been very good the past few years and we are encouraged to see the momentum extend through the first quarter of this year. More importantly, we remain pleased with the steady growth of our asset base that has been fueled by the continued increase in business activity since 2013. The pace of new loan closings continues as well with total loans at the end of the first quarter of $186.0 million, up $7.3 million, or 4.1% 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.”

Stockholders’ equity totaled $25.6 million at March 31, 2016, compared to $25.1 million at December 31, 2015. 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, 2016, the Bank’s tier one leverage capital ratio was 12.73% and the Bank’s total risk based capital ratio was 15.67%. In addition, the new Common Equity Tier 1 Ratio was 14.43% 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 $1.9 million for the quarter ending March 31, 2016 compared to $1.7 million for the quarter ending March 31, 2015 – an increase of $231,000, or 14.0%. The Bank’s net interest margin (NIM) for the three months ended March 31, 2016 remained strong at 3.82% compared to 4.20% for the same period in 2015. The decline in the NIM is attributed to higher deposit rates to fund the above average loan growth.

Non-Interest Expense
Total non-interest expense for the quarter ending March 31, 2016 remained flat at $1,122,000 compared to $1,120,000 for the quarter ended March 31, 2015. Don Haake, President and CEO said, “We remain committed to controlling expenses. This combined with our steady growth has allowed us compete well with our peers in the New Jersey market.”

Asset Quality
The bank had two non-performing loans totaling $230,000 at March 31, 2016, as compared to $363,000 for the same period last year. One non-performing loan paid-off at year end in the amount of $241,000. Unfortunately, we added a loan of approximately $116,000 in the first quarter due to the death of the borrower. We added this to nonaccrual to be conservative, but the estate of the borrower has been paying as required. We still have an OREO property on the books for $1.25 million, with a value of $1.45 million based on a current appraisal. We are in the process of making repairs to the property in an effort to sell it.

Enterprise Bank NJ, 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 Bank NJ
dollars in thousands
Assets3/31/2016 12/31/2015 Variance % Chg
Cash and due from banks$ 9,861 $ 5,484 $ 4,377 79.8%
Investment securities 5,619 7,115 (1,496) -21.0%
Loans 186,046 178,705 7,341 4.1%
Allowance for loan losses (2,154) (2,081) (73) 3.5%
Net loans 183,892 176,624 7,268 4.1%
Bank premises and equipment, net 327 346 (19) -5.5%
Real estate owned 1,250 1,250 - 0.0%
Deferred income taxes 1,162 1,160 2 0.2%
Other assets 673 829 (156) 18.8%
Total Assets$ 202,784 $ 192,808 $ 9,976 5.2%
Liabilities and stockholders' equity
Non-interest bearing deposits$ 22,548 $ 22,256 $ 292 1.3%
Interest bearing deposits 140,629 129,477 11,152 8.6%
Total deposits 163,177 151,733 11,444 7.5%
Borrowings 13,400 15,400 (2,000) 13.0%
Other liabilities 591 553 38 6.9%
Total liabilities 177,168 167,686 9,482 5.7%
Total stockholders' equity 25,616 25,122 494 2.0%
Total Liabilities and
stockholders' equity $ 202,784 $ 192,808 $ 9,976 5.2%

Enterprise Bank NJ
For the Quarter Ended:3/31/2016 3/31/2015 Variance % Chg
Interest Income$ 2,278 $ 1,921 $ 357 18.6%
Interest Expense 392 266 126 47.4%
Net Interest Income 1,886 1,655 231 14.0%
Provision for Loan Losses 73 62 11 17.7%
Net Interest Income after
Provision for Loan Losses 1,813 1,593 220 13.8%
Non-Interest Income 79 60 19 31.7%
Non-Interest Expenses 1,122 1,120 2 0.2%
Income Before Income Taxes 770 533 237 44.5%
Income Taxes 311 218 93 42.7%
Net Income$ 459 $ 315 $ 144 45.7%
Net Income per Common Share $ 0.15 $ 0.11 $ 0.04
Average shares outstanding 3,147,811 2,889,894

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 Bank NJ