LOS ANGELES, CA--(Marketwire - Apr 16, 2012) - 1st Enterprise Bank ("the Bank") (OTCBB: [ FENB ]), an independent full-service commercial bank serving the Southern California business community, reported net income of $1,049,000 for the quarter ended March 31, 2012 and total assets of $579 million.

Financial Highlights

• Net income was a record amount of $1.05 million for the first quarter of 2012, a 76% increase over the first quarter of 2011 and a 9% increase over the fourth quarter of 2011
• Net interest income of $4.34 million was highest in Bank's history
• Net interest margin grew to 3.37% from 3.02%
• Total Assets grew by 14% from $510 million at March 31, 2011 to $579 million at March 31, 2012
• Total Loans outstanding grew by 35% from $232 million at March 31, 2011 to $312 million at March 31, 2012
• Total Deposits grew by 13% from $461 million at March 31, 2011 to $520 million at March 31, 2012
• Diluted earnings per common share were $.34 for the first quarter, compared to $.15 for the first quarter of 2011 and $.32 for the fourth quarter of 2011
• The Bank continues to be well capitalized with Tier 1 Leverage Ratio of 8.9% & Total Risk Based Capital Ratio of 12.4% -- tangible book value per share was $12.19 at quarter end
• The Bank's Return on Common Equity was 11.76% for the first quarter of 2012
• The Bank continued to have no charged-off or past due loans, or any non-performing assets

"We are very excited to announce that 1^st Enterprise Bank achieved record quarterly earnings and that quarterly net income exceeded a million dollars for the first time in our history," said John Black, CEO. "The Bank's earnings growth this quarter was driven by a 37% increase in net interest income and a 35% increase in loans outstanding over the first quarter of 2011. We also saw meaningful growth in our core areas of non-interest income. We are pleased by the fact that during the quarter we added another experienced Relationship Manager in our Inland Empire Regional Office and an additional Relationship Manager in our Los Angeles Office. We continue to aggressively pursue experienced and talented bankers to join our winning team here at 1st Enterprise Bank."

For the three months ended March 31, 2012, net interest income before provision was $4.34 million, an increase of more than $880,000 or 26% compared to the first quarter of 2011 and an increase of more than $260,000 or 7% compared to the fourth quarter of 2011. The year-over-year growth in net interest income was the result of both growth in earning assets and an increase in net interest margin. The net interest margin was 3.37% during the first quarter of 2012, compared to 3.02% for the prior year and 3.04% for the prior quarter. The Bank's cost of funds was .15% for the quarter and 41% of total deposits were non-interest bearing. Earning assets were $517 million in the first quarter of 2012, an 11% increase over the prior year and a 3% decrease from the prior quarter. Non-interest income increased by $26,000 or 3% from the prior year and increased by $64,000 or 8% from the prior quarter. Non-interest expense increased by $525,000 or 17% over the prior year and increased by $370,000 or 11% over the prior quarter. The Bank had no loan charge-offs during the quarter and has no non-accrual loans. During the first quarter a provision for loan losses was recorded in the amount of $10,000, compared to $292,000 in the first quarter of 2011 and $565,000 in the fourth quarter of 2011.

Brian Horton, President, concluded, "Our strong growth and financial returns are the result of the collective efforts of a very talented team of bankers who take a personal interest in their clients. With this team, the new hires we have made, and the hiring initiatives we have in place, we look forward to continued growth in the future."

About 1st Enterprise Bank
Founded in 2006, 1st Enterprise Bank is a full service independent commercial banking institution, whose highly experienced bankers personally serve Southern California entrepreneurial businesses, professional firms and nonprofit organizations, along with their owners and key managers. Headquartered in the Los Angeles financial district, with full service regional banking offices in Irvine and Ontario, 1st Enterprise Bank offers a full range of credit and depository services, with special emphasis on superior customer service, sophisticated cash management services and direct access to bank decision makers. Customers work directly with a dedicated Relationship Manager, a seasoned professional who understands their unique challenges serving as a sounding board and an active participant in their client's success. For more information on 1st Enterprise Bank, please visit [ www.1stenterprisebank.com ].

Forward-Looking Statement:
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about 1st Enterprise Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: 1st Enterprise Bank's timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in 1st Enterprise Bank's reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and 1st Enterprise Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.