First Commons Bank Posts Record Earnings While Increasing Tier 1 Capital Ratio

NEWTON, Mass., July 22, 2014 /PRNewswire/ -- First Commons Bank of Newton, Mass., today reported that it posted record profits for the quarter ended June 30, 2014. Net Income for the quarter was $348 thousand, compared to $340 thousand for the first quarter of 2014. Year-to-date income for the period January 1 to June 30, 2014 was $688 thousand, compared to $523 thousand for the same period of 2013. Net Income results for 2013 were impacted by Gains on Sale of Securities of $262 thousand, while 2014 results are all from banking operations.

The Bank's Return on Average Assets for the six-month period ended June 30, 2014 was 0.53%, compared to 0.48% for the six-month period ended June 30, 2013. The Bank's Tier 1 Regulatory Capital Ratio also improved from the 8.34% on March 31, 2014 to 9.37% on June 30, 2014, as a result of total assets decreasing from $267 million on March 31 to $237 million on June 30.

"We are particularly pleased with our continued improvement in the Bank's core earnings since earnings from Bank operations have grown over 150% — from $261 thousand to $688 thousand — for the first half of 2014 compared to the first half of 2013," said Tony Nuzzo, Chairman, President and CEO of First Commons Bank. "We are also pleased with the improvement in our Tier 1 Capital Ratio, which principally resulted from the reduction of non-relationship certificates of deposit."

Total Interest Income increased by approximately $810 thousand for the six month period ended June 30, 2014 vs. 2013. Interest Expense increased by approximately $285 thousand for the six months ended June 30, 2014 vs. the six months ended June 30, 2013. Noninterest operating expenses increased by approximately $144 thousand for the six month period ended June 30, 2014 compared to the six month period ended June 30, 2013.

"We continue to be pleased that our ratio of non-performing loans to total loans remains at 0.00% as of June 30, 2014," Mr. Nuzzo said.

Of note, First Commons Bank is celebrating its fifth anniversary of operations on July 22, 2014. The bank opened for business on July 22, 2009, in Newton, Mass.

First Commons Bank's financial results are available on the FDIC's Web site at: http://goo.gl/ZFBEi7.

First Commons Bank, N.A.


Balance Sheet


(Unaudited)









June 30,

December 31,




2014

2013




(dollars in thousands)


Assets





Cash and Due from Banks


1,828

1,864


Interest-bearing demand deposits with other banks


107

6,728


Money Market Mutual Funds


162

3,662


Federal funds sold


1,400

13,500


 Cash and Cash equivalents


3,497

25,754


Interest-bearing time deposits with other banks


245

3,189


Investment in available-for-sale securities


0

0


Federal Home Loan Bank Stock, at cost


956

919


Federal Reserve Bank Stock, at cost


675

660


Loans, net


227,973

227,227


Premised and equipment


1,286

1,414


Accrued interest receivable


604

535


Deferred income tax asset, net


1,859

1,859


Other assets


262

320


 Total Assets


237,357

261,877







Liabilities and Stockholders' Equity





Deposits:





 Noninterest-bearing


15,526

16,745


 Interest-bearing


187,871

212,085


 Total Deposits


203,397

228,830


Federal Home Loan Bank Advances


10,000

10,000


Other Liabilities


719

533


  Total Liabilities


214,116

239,363


Stockholders' equity





 Common Stock, par value .01; authorized





 10,000,000 shares, 2,504,851 issued





 and outstanding


25

25


 Paid-in Capital


26,690

26,651


 Accumulated deficit


-3,474

-4,162


 Accumulated other comprehensive income


0

0


   Total stockholders' equity


23,241

22,514


   Total liabilities and stockholders' equity


237,357

261,877


 


First Commons Bank, N.A.

Statement of Income

(Unaudited)






Six months ended June 30,



2014

2013



(Dollars in thousands)

Interest Income:




 Interest and fees on loans


5,487

4,644

 Interest on securities


27

66

 Other interest


13

7

    Total interest income


5,527

4,717

Interest Expense




 Interest on deposits and borrowings


1,175

890

 Total Interest Expense


1,175

890

 Net interest income


4,352

3,827

Provision for loan losses


21

202

   Net interest income after provision for loan losses


4,331

3,625

Noninterest income




 Service charges on deposit accounts


27

25

 Gain on sale of available-for-sale securities


0

262

 Gain on sale of loans


24

0

 Other income


53

97

   Total noninterest income


104

384

Noninterest expense:




 Salaries and employee benefits


1,779

1,770

 Occupancy expense


421

411

 Equipment expense


128

124

 Professional fees


223

171

 Regulatory assessment


156

130

 Other expense


567

524

   Total noninterest expense


3,274

3,130

   Income before income tax expense


1,161

879

Income Tax expense


473

356

Net Income


688

523









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 opened for business on July 22, 2009. 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.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Tony Nuzzo
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=94827 

SOURCE First Commons Bank, N.A.



RELATED LINKS
http://www.firstcommonsbank.com

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