Enterprise Bank NJ Announces Second Quarter 2016 Earnings Increases 28.6% Year-Over-Year

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KENILWORTH, N.J., Aug. 10, 2016 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the "Bank") ENBN recorded second quarter earnings of $468,000, or $0.15 per share, for the quarter ended June 30, 2016, compared to earnings of $406,000, or $0.14 per share for the quarter ended June 30, 2015 – an increase of $62,000, or 15.3%, year over year. For the six months ended June 30, 2016, the Bank reported a net profit of $927,000 or $0.30 per share compared to $721,000 or $0.25 per share for the same period in 2015 – an increase of $206,000, or 28.6%.

FINANCIAL CONDITION

Assets
As of June 30, 2016, total assets were $200.8 million, as compared to $192.8 million, at December 31, 2015 – an increase of $8.0 million or 4.1%.

Don Haake, President and CEO stated, "New business generation has been exceptional the past few years and although we did experience a dip in loan closings in the second quarter, we fully anticipate to see improvement throughout the year as our pipeline remains robust. More importantly, we continue to make new contacts and build new relationships every day. Total loans ended the six months at $184.5 million, up $5.8 million, or 3.3% over year-end. As stated in the past, we do not have anxiety over intermittent slowdowns as we believe our relationship driven, controlled growth strategy will continue to produce the consistent earnings we strive for, while maintaining sound asset quality and stable margins."

Capital
Stockholders' equity totaled $26.1 million at June 30, 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 June 30, 2016, the Bank's tier one leverage capital ratio was 12.94% and the Bank's total risk based capital ratio was 16.02%. In addition, the new Common Equity Tier 1 Ratio was 14.78% 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 $1.9 million for the quarter ending June 30, 2016, compared to $1.7 million for the quarter ending June 30, 2015 – an increase of $156,000, or 9.0%. On a year to date basis, net interest income was $3,775,000 for the six months ended June 30, 2016 compared to $3,338,000 for the six months ended June 30, 2015 – an increase of $387,000 or 10.8%. The Bank's net interest margin (NIM) for the six months ended June 30, 2016 remained strong at 3.88% compared to 4.15% 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 June 30, 2016 increased $158,000 or 15.4% to $1,185,000 compared to $1,027,000 for the quarter ended June 30, 2015. The increase was predominately in the Salaries and Benefits which increased $133,000 or 12.3% primarily due to hiring three new staff related to the opening of the Newark Branch which is now set to occur late in the third quarter and normal increases at year-end. Don Haake, President and CEO said, "Even though we are extremely focused on growing the bank, we remain committed to controlling expenses in the process, as evidenced by our peer leading efficiency ratio of 57.51%."

Asset Quality
The bank had two non-performing loans totaling $225,000 at June 30, 2016, as compared to $360,000 for the same period last year. One non-performing loan paid-off at year end in the amount of $241,000. Unfortunately, a loan of approximately $116,000 was added 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 interest owed as required. In addition, an OREO property remains on the books for $1.25 million, with a value of $1.45 million based on a current appraisal. We continue to see steady interest in the property, but no formal offers have been presented to date.

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.

Enterprise Bank is nearing completion of its fourth banking office located in the "Ironbound" section of Newark (a rendering of the new branch can be viewed on our website), which is an amazing up and coming urban/industrial community and the home to a growing customer base of the Bank We are looking forward to expanding our services to the community 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 
CONSOLIDATED BALANCE SHEETS (unaudited)
dollars in thousands 
        
Assets6/30/2016 12/31/2015 Variance % Chg
Cash and due from banks$  9,399   $  5,484  $  3,915   71.4%
Investment securities 5,421      7,115     (1,694)  -23.8%
Loans 184,514    178,705     5,809   3.3%
Allowance for loan losses (2,216)  (2,081)    (135)  6.5%
Net loans   182,298      176,624     5,674   3.2%
Bank premises and equipment, net 381    346     35   10.1%
Real estate owned 1,250    1,250     -    0.0%
Deferred income taxes 1,164    1,160     4   0.3%
Other assets 863    829     34   4.1%
Total Assets$ 200,776   $  192,808  $  7,968   4.1%
        
Liabilities and stockholders' equity       
Non-interest bearing deposits$  19,206   $  22,256  $(3,050)  -13.7%
Interest bearing deposits 139,162    129,477      9,685   7.5%
Total deposits   158,368      151,733      6,635   4.4%
Borrowings 15,675    15,400     275   1.8%
Other liabilities 614    553     61   11.0%
Total liabilities   174,657      167,686     6,971   4.2%
Total stockholders' equity 26,119    25,122     997   4.0%
Total Liabilities and stockholders' equity  $ 200,776   $  192,808  $  7,968   4.1%
                


Enterprise Bank NJ 
CONSOLIDATED INCOME STATEMENTS (unaudited)
        
For the Quarter Ended:6/30/2016 6/30/2015 Variance % Chg
Interest Income$   2,284   $  2,024  $  260   12.8%
Interest Expense   395      291     104   35.7%
Net Interest Income   1,889      1,733     156   9.0%
Provision for Loan Losses   62      89     (27)  -30.3%
Net Interest Income after Provision for Loan Losses   1,827      1,644     183   11.1%
Non-Interest Income   141      68     73   107.4%
Non-Interest Expenses   1,185      1,027     158   15.4%
Income Before Income Taxes   783      685     98   14.3%
Income Taxes   315      279     36   12.9%
Net Income$  468   $  406  $  62   15.3%
Net Income per Common Share$  0.15   $  0.14  $  0.01   
        
Average shares outstanding 3,147,811    2,889,894     
        
Enterprise Bank NJ       
CONSOLIDATED INCOME STATEMENTS (unaudited)    
        
YTD By Quarter Ended:6/30/2016 6/30/2015 Variance % Chg
Interest Income$  4,562   $  3,945  $  617   15.6%
Interest Expense   787      557     230   41.3%
Net Interest Income   3,775      3,388     387   11.4%
Provision for Loan Losses   135      151     (16)  -10.6%
Net Interest Income after Provision for Loan Losses   3,640      3,237     403   12.4%
Non-Interest Income   220      128     92   71.9%
Non-Interest Expenses   2,307      2,147     160   7.5%
Income Before Income Taxes   1,553      1,218     33   27.5%
Income Taxes   626      497     29   26.0%
Net Income$  927   $  721  $  206   28.6%
Net Income per Common Share$  0.30   $  0.25  $  0.05   
        
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
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Posted In: Press Releases
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