First Commons Bank Assets Grow to $229 Million After Only 47 Months; Operational Profitability Incre

First Commons Bank Assets Grow to $229 Million After Only 47 Months; Operational Profitability Increases

— Net Assets Surpass 60% of all FDIC-insured Banks

NEWTON, Mass.--(BUSINESS WIRE)-- First Commons Bank of Newton, Mass., today reported that it achieved a total asset level of $229,363,000 as of June 30, 2013, after only 47 months of operation. Total assets grew by approximately $35 million, or 18%, for the 12-month period ended June 30, 2013. Net loans increased by $46 million, or 29%, for the same period.


Total assets grew by approximately $21 million for the 6-month period ending June 30, 2013. Net loans increased by approximately $26 million for the period, while deposits grew by approximately $20 million.

First Commons Bank's assets have now surpassed the assets of more than 4,100 other banks — or more than 60% of the approximately 7,000 FDIC-insured banks that filed FDIC call reports for the period ended March 31, 2013.

Net income for the 6-month period ended June 30, 2013, was $521,000, compared to $2.7 million for the first 6 months of 2012. Net income in 2012 included a tax recovery of $2.3 million and gains of the sale of securities of $318,000. Net income for the corresponding period in 2013 includes gains on the sales of securities of $262,000, but with no tax recoveries as they were exhausted in 2012. Therefore, on a continuing operations basis, without tax recoveries or gains on the sale of securities, net income for the first 6 months of 2013 would have been $365,000, compared to $57,000 for the same period in 2012.

Tony Nuzzo, Chairman, President, and CEO of First Commons Bank, said, "We are pleased with our continued growth, especially in our loan portfolio. We are also pleased that as a bank which was established in July 2009, we have now reported positive net income for 6 consecutive quarters, with continued improvement in profitability from ongoing operations."

Total interest income increased by approximately $864,000 or 22% for the 6 months ended June 30, 2013, as compared to 2012. Interest expense increased by approximately $62,000, or 7%, and noninterest expenses increased by approximately $215,000, or 7%, during the same period. In addition, as of June 30, 2013, the bank does not have any nonperforming assets.

The Bank's available-for-sale securities portfolio was liquidated over the period January 1 to June 30, 2013, and the funds were deployed into loans.

First Commons Bank Summary Balance Sheets and Income Statements are below, and additional financial results are available on the FDIC's Web site at: http://goo.gl/ctlaC.

First Commons Bank

Summary Balance Sheets and Income Statements

First Commons Bank, N.A.

Balance Sheets

(Unaudited)

At or for the
Period Ended
June 30, 2013

At or for the
Year Ended
December 31, 2012

(Dollars in thousands)

ASSETS

Cash and due from banks

1,763

1,258

Interest-bearing demand deposits with other banks

3,227

3,435

Money market mutual funds

3,662

1,157

Federal funds sold

7,400

5,800

Cash and cash equivalents

16,052

11,650

Interest-bearing time deposits with other banks

245

245

Investments in available-for-sale securities, at fair value

0

9,477

Federal Home Loan Bank stock, at cost

469

399

Federal Reserve Bank stock, at cost

1,319

1,328

Loans, net

206,579

180,586

Premises and equipment

1,572

1,725

Accrued interest receivable

529

554

Deferred income tax assets, net

2,303

2,303

Other assets

295

304

Total assets

229,363

208,571

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing

14,020

11,626

Interest-bearing

191,946

173,794

Total deposits

205,966

185,420

Other liabilities

1,247

1,343

Total liabilities

207,213

186,763

Stockholders' equity

Common stock, par value .01; authorized 10,000,000 shares; 2,504,851 shares issued and outstanding

25

25

Paid-in capital

26,649

26,565

Accumulated deficit

(4,524)

(5,046)

Accumulated other comprehensive income

0

264

Total stockholders' equity

22,150

21,808

Total liabilities and stockholders' equity

229,363

208,571

First Commons Bank, N.A.

Statements of Income

(Unaudited)

Six months ended June 30,

2013

2012

(Dollars in thousands)

Interest income:

Interest and fees on loans

4,716

3,701

Interest on securities

67

216

Other interest

7

9

Total interest income

4,790

3,926

Interest expense:

Interest on deposits

890

828

Total interest expense

890

828

Net interest income

3,900

3,098

Provision for loan losses

202

107

Net interest income after provision for loan losses

3,698

2,991

Noninterest income:

Service charges on deposit accounts

16

12

Gain on sales of available-for-sale securities

262

318

Other income

34

12

Total noninterest income

312

342

Noninterest expense:

Salaries and employee benefits

1,770

1,603

Occupancy and equipment expense

457

472

Regulatory assessment

130

95

Other general and administrative expense

776

748

Total noninterest expense

3,133

2,918

Income (loss) before income tax expense (benefit)

877

415

Income tax expense (benefit)

356

(2,325)

Net income (loss)

521

2,740

About First Commons Bank

First Commons Bank, N.A., is a nationally chartered, FDIC-insured full-service community bank, dedicated to serving the businesses and individuals of Newton, Wellesley, Waltham, and eastern Massachusetts. The bank, which opened for business on July 22, 2009, reported total assets of $229,363,000 as of June 30, 2013 — after only 47 months of operation, making it larger than 60% of all FDIC-insured banks in the U.S. First Commons Bank locations include its headquarters at 718 Beacon Street in Newton Centre, Mass., and 161 Linden Street in Wellesley, Mass.

Visit First Commons Bank on the Web at http://www.firstcommonsbank.com. Follow the bank on Facebook at http://facebook.com/firstcommonsbank and on Twitter at http://twitter.com/firstcommonsbnk.



Press Contact:
Tiziani Whitmyre
Don Goncalves, 781-793-9380
dgoncalves@tizinc.com
or
Company Contact:
First Commons Bank
Tony Nuzzo, 617-243-4410

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS:

The article First Commons Bank Assets Grow to $229 Million After Only 47 Months; Operational Profitability Increases originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.