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Enterprise Bank NJ Announces First Quarter 2018 Results of Operations

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KENILWORTH, N.J., May 01, 2018 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the "Bank") (OTC:ENBN) recorded earnings of $738,000, or $0.23 per share, for the quarter ended March 31, 2018, compared to $489,000, or $0.15 per share – a increase of $249,000, or 50.9% year-over-year.  The increase in net income was primarily due to the full quarter's impact of last year's loan growth.  In addition, loans increased by $12.1 million, which also contributed to the increased net income in the first quarter.  As we discussed in our year-end press release, the impact of the tax benefit is also contributing to the net income growth, reducing tax expense by $49,000 year-over-year. 

As of the end of the first quarter March 31, 2018, the Bank's annualized Return on Average Assets (ROAA) was 1.22% and Return on Average Equity (ROAE) was 9.84%, compared to prior year-end where ROAA was 0.72% and ROAE was 5.47% for the twelve-months ending December 31, 2017.  The Banks ROAA and ROAE were impacted by the one-time tax adjustment at year end and are benefiting from the implementation of the new tax legislation in 2018.

FINANCIAL CONDITION

Assets
As of March 31, 2018, total assets were $243.7 million, as compared to $232.9 million at December 31, 2017 – an increase of $10.8 million, or 4.6%.

Don Haake, President and CEO stated, "As we end the first quarter, I am very pleased to highlight the Banks continued stable growth and profitability, particularly, the sound performance of the loan portfolio.  Furthermore, we are encouraged by the significant pre-tax earnings growth of $200,000, or 24.4%, for the first quarter of 2018, compared to the same period the prior year.  The growth in earnings can be directly attributed to the Bank's grassroots approach to our business, complimented by the measurable repeat business and referrals we receive from our existing customers.  Loans as of March 31, 2018 totaled $229.6 million, up $12.1 million, or 5.5%, as compared to December 31, 2017.  Total deposits also increased $4.7 million, or 2.6%, ending March 31, 2018 at $187.1 million.  The Bank also showed an increase in borrowings of $5.2 million, or 25.9%, to help supplement the funding of the loan growth in the first quarter."

Capital
Stockholders' equity totaled $30.3 million at March 31, 2018, compared to $29.6 million at December 31, 2017.  All of the Bank's capital ratios remain strong and in excess of the current regulatory definition of a "well capitalized" institution.  At March 31, 2018, the Bank's Tier One Leverage Capital Ratio was 12.71% and the Bank's total risk based capital ratio was 15.34%.  In addition, the Common Equity Tier 1 Ratio was 14.09% as of March 31, 2018, which is in excess of the 6.75% current minimum regulatory threshold and the fully transitioned ratio of 7.0% for the year 2019.  In addition, book value reached $9.29 per share, compared to $9.06 per share as of December 31, 2017, and market value of as of the end of the first quarter 2018 was $10.05 per share, with a market to book ratio of approximately 108%.

Net Interest Income
Net interest income as of the end of March 31, 2018 was $2,261,000, compared to $1,937,000 for the same period in 2017 – an increase of $324,000, or 16.7%.  The Bank's net interest margin for the year ended December 31, 2017, remained strong at 3.93%, compared to 3.91% for the period ended December 31, 2017.

Non-Interest Income
Non-interest income decreased year over year by $22,000 or 24.4%.  Last year in the first quarter, the Bank received prepayment penalties that did not recur in 2018.  The Bank's major contribution to earnings comes from the Net Interest Income line item, so while a prepayment penalty gives the Bank the one time earnings boost, the net interest income suffers when there are prepayment penalties.

Non-Interest Expense
For the three months ended March 31, 2018, total non-interest expense increased $1,000, or 0.1%, to $1,169,000 compared to the same period last year.   

Asset Quality
The Bank had three non-performing loans totaling $1,347,000 at March 31, 2018, as compared to $104,000 for the same period last year.  An additional loan was added to nonaccrual this quarter in the amount of $804,000, which is well collateralized.  We are continuing to attempt to work through the loan that was added last quarter with the borrower; however, we will pursue foreclosure, if deemed necessary.  Also, it should be noted that one non-performing loan paid-off in February 2018 in the amount of $94,000.  We still have one OREO property on the books for $1.25 million, with a value of $1.45 million based on a current appraisal, which is currently under contract of sale and anticipated to close later this year.

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.

Contacts:
Donald J. Haake, President & CEO
don.haake@enterprisebank.net

David J. Onderko, CFO/COO
david.onderko@enterprisebank.net

Website: www.enterprisebank.net

               
Enterprise Bank NJ              
CONSOLIDATED BALANCE SHEETS (unaudited)            
dollars in thousands              
               
Assets 3/31/2018   12/31/17   Variance   % Chg
Cash and due from banks $   8,859     $   10,146     $  (1,287 )   -12.7 %
Investment securities   4,156       4,155         1     0.0 %
Loans   229,554       217,489         12,065     5.5 %
Allowance for loan losses   (2,713 )     (2,571 )       (142 )   5.5 %
Net loans     226,841         214,918         11,923     5.5 %
Bank premises and equipment, net   521       551         (30 )   -5.4 %
Real estate owned   1,250       1,250         -      0.0 %
Deferred income taxes   991       986         5     0.5 %
Other assets   1,085       910         175     19.2 %
Total Assets $  243,703     $ 232,916     $  10,787     4.6 %
               
Liabilities and stockholders' equity              
Non-interest bearing deposits $   32,634     $   29,931     $   2,703     9.0 %
Interest bearing deposits   154,445       152,480         1,965     1.3 %
Total deposits     187,079         182,411         4,668     2.6 %
Borrowings   25,366       20,140         5,226     25.9 %
Other liabilities   909       752         157     20.9 %
Total liabilities     213,354         203,303         10,051     4.9 %
Total stockholders' equity   30,349       29,613         736     2.5 %
Total Liabilities and              
  stockholders' equity  $  243,703     $ 232,916     $  10,787     4.6 %


               
               
Enterprise Bank NJ              
CONSOLIDATED INCOME STATEMENTS (unaudited)        
               
YTD for the Quarter Ended: 3/31/2018   3/31/2017   Variance   % Chg
Interest Income $   2,808   $   2,351   $   457     19.4 %
Interest Expense     547       414       133     32.1 %
  Net Interest Income     2,261       1,937       324     16.7 %
Provision for Loan Losses     142       41       101     246.3 %
  Net Interest Income after              
  Provision for Loan Losses     2,119       1,896       223     11.8 %
Non-Interest Income     68       90       (22 )   -24.4 %
Non-Interest Expenses     1,169       1,168       1     0.1 %
Income Before Income Taxes     1,018       818       200     24.4 %
  Income Taxes     280       329       (49 )   -14.9 %
Net Income $   738   $   489   $   249     50.9 %
Net Income per Common Share $   0.23   $   0.15   $    0.08      
Average shares outstanding   3,268,411     3,212,233        

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