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Enterprise Bank NJ Announces Branch Expansion, Record Earnings and Continued Asset Growth in Fiscal Year 2016

KENILWORTH, N.J., March 03, 2017 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the “Bank”) (OTC:ENBN) is pleased to announce the opening of its fourth branch in the Ironbound section of Newark during the fourth quarter. The facility was newly built and is on the corner of Wilson Avenue and Jabez Street located near Routes 1&9 for easy access. As of year-end, the Newark Branch exceeded $10.0 million in deposits and we are very pleased with the activity since the opening. With this branch now open, our team is exploring additional opportunities for continued expansion in the market areas we serve.

RESULTS OF OPERATIONS

Earnings
Enterprise Bank NJ is pleased to report record earnings of`$1,929,000, or $0.61 per share, for the fiscal period ending December 31, 2016, compared to earnings of $1,583,000, or $0.55 per share, for the fiscal year end December 31, 2015 – an increase of $346,000, or 21.9%, year-over-year. Our strong earnings growth continues to be facilitated by the great customer relationships we have been privileged to have fostered within the communities we serve.

Net Interest Income
Net interest income was $7,678,000 for the fiscal year end December 31, 2016 compared to $7,144,000 for the comparable period in 2015 – an increase of $534,000, or 7.5%. The Bank’s net interest margin (NIM) year-to-date for 2016 continued to perform well at 4.08% compared to 4.18% for the same period in 2015. The slight decline in the NIM is attributed to higher costs related to funding sources necessary to support loan growth.

Provision for Loan Loss
During the twelve months ended December 31, 2016, the Bank added $240,000 to the provision. The decrease year-over-year is $123,000 or 33.9%, which is primarily due to the strong performance of the portfolio.

Non-Interest Income
For the year ended December 31, 2016, total non-interest income was $436,000 compared to $200,000 in the prior year. The increase was $236,000 or 118.0%, primarily due to higher than anticipated prepayment penalties for unscheduled loan payoffs.

Non-Interest Expense
For the year end December 31, 2016, total non-interest expense was $4,639,000 compared to $4,314,000 for the year end December 31, 2015 – an increase of $325,000 or 7.5%. On a year-to-date basis, compensation and benefits accounted for $243,000 of the increase related to staffing additions made in 2016 in preparation of the Newark Branch opening. Information Technology expenses increased $71,000 year-over-year due to a full year’s expense related to the new infrastructure investment in the telephone system and servers that were installed in the middle of 2015.

FINANCIAL CONDITION

Assets
As of December 31, 2016, total assets were $209.9 million as compared to $192.8 million at December 31, 2015 – an increase of $17.1 million or 8.9%.

Don Haake, President and CEO stated, "Although net loan growth was modest for the year, we continue to be pleased with our asset generation and overall sound performance of our portfolio. Loan growth for the year ended December 31, 2016 was $9.7 million, up 5.4% over year-end 2015. This coupled with an efficiency ratio and net interest margin that is among the best of our peers continues to help us achieve consistent growth in earnings year over year."

Capital
Stockholders’ equity totaled $27.5 million at December 31, 2016, compared to $25.1 million at December 31, 2015 – an increase of $2.4 million primarily due to sustained earnings and the exercise of expiring stock options. All of the Bank’s capital ratios remain strong and well in excess of the current regulatory definition of a “well capitalized” institution. At December 31, 2016, the Bank’s tier one leverage capital ratio was 13.21% and the Bank’s total risk based capital ratio was 16.34%. In addition, the new Common Equity Tier 1 Ratio was 15.09% for the year ended December 31, 2016, 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.

Asset Quality
The bank had two non-performing loans totaling $217,000 at December 31, 2016, as compared to one non-performing loan totaling $115,000 for the same period last year. One non-performing loan was added in the second quarter 2016 in the amount of $110,000; however, this loan was fully collateralized as of year-end December 31, 2016, and paid off in February with the Bank not incurring any loss. In addition, the Bank has one OREO property on its books as of the end of the year, but would like to note that we are currently in negotiations to sell the property and it should be off the balance sheet by the end of the second quarter.

THE BANK

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.

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
CONSOLIDATED INCOME STATEMENTS (unaudited)
12/31/16 12/31/15 Variance % Chg
Interest Income$ 9,271 $8,370 $901 10.8%
Interest Expense 1,593 1,226 367 29.9%
Net Interest Income 7,678 7,144 534 7.5%
Provision for Loan Losses 240 363 (123) -33.9%
Net Interest Income after
Provision for Loan Losses 7,438 6,781 657 9.7%
Non-Interest Income 436 200 236 118.0%
Non-Interest Expenses 4,639 4,314 325 7.5%
Income Before Income Taxes 3,235 2,667 568 21.3%
Income Taxes 1,306 1,084 222 20.5%
Net Income$ 1,929 $1,583 $346 21.9%
Net Income per Common Share$ 0.61 $0.55 $0.06
Average shares outstanding 3,162,838 2,892,014


Enterprise Bank NJ
CONSOLIDATED BALANCE SHEETS (unaudited)
dollars in thousands
Assets12/31/16 12/31/15 Variance % Chg
Cash and due from banks$ 14,839 $5,484 $9,355 170.6%
Investment securities 4,958 7,115 (2,157) -30.3%
Loans 188,389 178,705 9,684 5.4%
Allowance for loan losses (2,322) (2,081) (241) 11.6%
Net loans 186,067 176,624 9,443 5.3%
Bank premises and equipment, net 654 346 308 89.0%
Real estate owned 1,250 1,250 - 0.0%
Deferred income taxes 1,152 1,160 (8) -0.7%
Other assets 988 829 159 19.2%
Total Assets$209,908 $192,808 $17,100 8.9%
Liabilities and stockholders' equity
Non-interest bearing deposits$ 21,981 $22,256 $(275) -1.2%
Interest bearing deposits 142,004 129,477 12,527 9.7%
Total deposits 163,985 151,733 12,252 8.1%
Borrowings 17,875 15,400 2,475 16.1%
Other liabilities 500 553 (53) -9.6%
Total liabilities 182,360 167,686 14,674 8.8%
Total stockholders' equity 27,548 25,122 2,426 9.7%
Total Liabilities and
stockholders' equity $209,908 $192,808 $17,100 8.9%


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