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 | At or for the | |||
(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:
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