Enterprise National Bank N.J. Announces Fourth Quarter and Year End Earnings; Bank Achieves Quarterly and Full Year Profit

KENILWORTH, N.J., Feb. 8, 2011 /PRNewswire/ -- Enterprise National Bank N.J. (the "Bank") (OTC Bulletin Board: ENBN) reported a net profit of $99 thousand, or $0.04 per share, for the quarter ended December 31, 2010, compared to a loss of $1.0 million in the fourth quarter of 2009 and earnings of $15 thousand, or $.01 per share for the third quarter of 2010.

For the year ended December 31, 2010, the Bank recognized a net profit of $213 thousand, or $.10 per share, compared to a net loss of $1.8 million, or ($.98) per share for 2009. The year over year result is primarily due to a decrease of $1.5 million in provision for possible loan losses and increase in net interest income of $538 thousand. In a joint statement, N. Larry Paragano, Chairman and Donald J. Haake, President and Chief Executive Officer stated "We are very pleased to report our fourth consecutive quarter of positive earnings and full year of profitability."

Total revenues increased by $336 thousand or 34.3% during the fourth quarter of 2010 compared to the fourth quarter of 2009. For the year ended December 31, 2010, total revenue increased by $573 thousand, or 15.2%, as compared to the year ended December 31, 2009. Mr. Haake added, "The growth in revenues was primarily due to the Banks repositioning of the balance sheet resulting in decreased interest costs on deposits and increases in the loan and securities portfolios. Further, the Bank's Net interest margin increased to 4.66% in the fourth quarter of 2010, as compared to 3.83% during the year ago period. The Bank's net interest margin for the year ended December 31, 2010 was 4.21% compared to 3.81% for the year ended December 31, 2009. The fourth quarter net interest margin was higher due to the recovery of past-due interest in December as of the result of the successful sale of a non-accrual loan."

The Bank had non-performing loans of $4.8 million as of December 31, 2010, which represents a decrease of $600 thousand from September 30, 2010, but an increase as compared to $2.8 million at December 31, 2009. Charged off loans totaled $145 thousand as compared to $1.7 million in 2009. "It is important to note that the loans identified as non-performing remain well collateralized and we believe that any material risk will be mitigated by the strong collateral composition of the portfolio," stated Mr. Haake. "The Bank continues to work diligently to reduce the level of non-performing assets and we expect to see improvement throughout the coming year."

Stockholders' equity totaled $15.6 million at December 31, 2010, compared to $9.9 million at December 31, 2009. All of the Bank's capital ratios remain well in excess of the current regulatory definition of a "well capitalized" institution. The Bank's tier one leverage capital ratio at December 31, 2010 was 13.45% and the Bank's total risk based capital ratio at December 31, 2010 was 17.07%.

To view the complete release, visit the News section of our website at www.enterprisebank.net

About Enterprise Bank

Enterprise National Bank N.J., headquartered in Kenilworth, New Jersey, is listed on the OTC Bulletin Board 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, home equity loans, 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.

SOURCE Enterprise National Bank N.J.