First Commons Bank of Newton, Mass. today reported that it achieved Net Income for the 3-month period ended March 31, 2014 of $340 thousand compared to $196 thousand for the 3-month period ended March 31, 2013, representing a 73% increase. The March 2013 results were positively impacted by $133 thousand of gains on the sale of securities. Excluding the security gains, Net Income for the 3-month period ended March 31, 2013 would have been approximately $117 thousand. Therefore, the March 31, 2014 income of $340 thousand would represent a 291% increase versus year ago on a comparable basis.
Tony Nuzzo, Chairman, President, and CEO of First Commons Bank said, “We are especially pleased with the continued improvement in the bank’s core earnings. Earnings from bank operations have almost tripled for the first quarter of 2014 compared to the first quarter of 2013.”
The Total Asset level of the bank reached $267 million as of March 31, 2014 after only 56 months of operation. Total assets grew by approximately $44 million, or 20%, for the 12-month period ended March 31, 2014. Net loans increased by $34 million, or 17%, for the same 12-month period.
Total Interest Income increased by approximately $459 thousand, or approximately 20%, for the 3 months ended March 31, 2014 versus 2013. Interest Expense increased by approximately $146 thousand for the 3 months ended March 31, 2014 or approximately 33% versus year ago, primarily due to Federal Home Loan Bank borrowings for interest rate risk management. Noninterest operating expense increased by $105 thousand, or approximately 7%, for the 3 month period ended March 31, 2014 compared to year ago.
Mr. Nuzzo further commented, “We are also very pleased that we do not have any nonperforming loans.”
First Commons Bank’s financial results are available on the FDIC’s Web site at: http://goo.gl/fij284.
| First Commons Bank, N.A. | |||||||
| Balance Sheets | |||||||
| (Unaudited) | |||||||
| At or for the Period Ended March 31, 2014 | At or for the Period Ended March 31, 2013 | ||||||
| (Dollars in thousands) | |||||||
ASSETS | |||||||
| Cash and Due from Banks | 1,266 | 1,208 | |||||
| Interest-bearing demand deposits with other banks | 6,686 | 3,447 | |||||
| Money market mutual funds | 3,662 | 3,334 | |||||
| Federal funds sold | 15,400 | 4,800 | |||||
| Cash and cash equivalents | 27,014 | 12,789 | |||||
| Interest-bearing time deposits with other banks | 2,059 | 980 | |||||
| Investments in available-for-sale securities, at fair value | 0 | 4,238 | |||||
| Federal Home Loan Bank stock, at cost | 919 | 396 | |||||
| Federal Reserve Bank stock, at cost | 1,320 | 1,328 | |||||
| Loans, net | 231,660 | 197,979 | |||||
| Premises and equipment | 1,360 | 1,653 | |||||
| Accrued interest receivable | 608 | 568 | |||||
| Deferred income tax asset, net | 1,859 | 2,303 | |||||
| Other assets | 277 | 294 | |||||
| Total assets | 267,076 | 222,528 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Deposits | |||||||
| Noninterest-bearing | 15,178 | 17,958 | |||||
| Interest-bearing | 217,637 | 180,922 | |||||
| Total deposits | 232,815 | 198,880 | |||||
| Other liabilities | 11,388 | 1,658 | |||||
| Total liabilities | 244,203 | 200,538 | |||||
| Stockholders' equity | |||||||
| Common Stock, par value .01; authorized 10,000,000 shares; 2,504,851 shares issued and outstanding | 25 | 25 | |||||
| Paid-in capital | 26,670 | 26,607 | |||||
| Accumulated deficit | (3,822) | (4,850) | |||||
| Accumulated other comprehensive income | 0 | 208 | |||||
| Total stockholders' equity | 22,873 | 21,990 | |||||
| Total liabilities and stockholders' equity | 267,076 | 222,528 | |||||
| First Commons Bank, N.A. | ||||||
| Statement of Income | ||||||
| (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
| 2014 | 2013 | |||||
| (Dollars in thousands) | ||||||
| Interest income | ||||||
| Interest and fees on loans | 2,768 | 2,282 | ||||
| Interest on securities | 0 | 0 | ||||
| Other interest | 12 | 39 | ||||
| Total interest income | 2,780 | 2,321 | ||||
| Interest expense | ||||||
| Interest on deposits | 543 | 442 | ||||
| Interest on borrowings | 45 | 0 | ||||
| Total interest expense | 588 | 442 | ||||
| Net interest income | 2,192 | 1,879 | ||||
| Provision for loan losses | (6) | 159 | ||||
| Net interest income after provision for loan losses | 2,198 | 1,720 | ||||
| Noninterest income | ||||||
| Service charges on deposit accounts | 12 | 9 | ||||
| Gain on sales of available-for-sale securities | 0 | 133 | ||||
| Other income | 1 | 3 | ||||
| Total noninterest income | 13 | 145 | ||||
| Noninterest expense | ||||||
| Salaries and employee benefits | 889 | 908 | ||||
| Occupancy and equipment expense | 272 | 208 | ||||
| Professional fees | 107 | 109 | ||||
| Regulatory assessment | 80 | 63 | ||||
| Other expenses | 292 | 247 | ||||
| Total noninterest expense | 1,640 | 1,535 | ||||
| Income (loss) before income tax expense (benefit) | 571 | 330 | ||||
| Income tax expense (benefit) | 231 | 134 | ||||
| Net income (loss) | 340 | 196 | ||||
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 $267 million as of March 31, 2014 — after only 56 months of operation. First Commons Bank locations include its headquarters at 718 Beacon St. in Newton Centre, Mass., and 161 Linden Square in Wellesley, Mass.
Visit the First Commons Bank website at http://www.firstcommonsbank.com. Follow the bank on Facebook at http://facebook.com/firstcommonsbank and on Twitter at http://twitter.com/firstcommonsbnk.
Contacts:
Don Goncalves, 781-793-9380
dgoncalves@tizinc.com
or
First
Commons Bank
Tony Nuzzo, 617-243-4410
