First Commons Bank Net Income Reaches $525,000 in Q2, Up 107% Over the Same Period Last Year and Up 15% Over Last Quarter

Total Assets Reach $339 Million in Q2, Up 20% Over Year Ago

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Jul 28, 2016, 10:00 ET

NEWTON, Mass., July 28, 2016 /PRNewswire/ -- First Commons Bank of Newton, Mass., today reported Net Income for the three-month period ended June 30, 2016 of $525 thousand representing a 107% increase over the $254 thousand earned for the quarter ended June 30, 2015, and a 15% increase over the $455 thousand earned last quarter. The bank also achieved a new high point of $339 million in Total Assets as of June 30, 2016, representing a 20% increase versus June 30, 2015. Total Deposits grew to $295 million or 23% versus a year ago, and Net Loans increased to $266 million or 13% versus a year ago.

Tony Nuzzo, Chairman, President, and CEO of First Commons Bank, said, "We continue to be very pleased with our Net Income results. The second quarter of 2016 represents our third consecutive quarter of strong and increasing earnings. Further, our Net Income for the first two quarters of 2016 is more than double the Net Income for the first two quarters of last year."

Mr. Nuzzo also noted, "The bank's Efficiency Ratio as measured by Total Noninterest Expenses over Net Interest Income has significantly improved to 70% for the quarter ended June 30, 2016, compared to 83% for the quarter ended June 30, 2015. Additionally, our credit quality remains excellent."

Tangible Book Value on June 30, 2016 was $10.43 per share, with approximately $33 million in equity and a Tier 1 Capital to Average Assets Ratio for the quarter of 9.76%.

First Commons Bank's financial results are available on the FDIC's website at: https://goo.gl/65XOlJ.

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 Street 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.

First Commons Bank, N.A.
Balance Sheet
(Unaudited)
	June 30,	June 30,
	2016	2015
	(dollars in thousands)
Assets
Cash and Due from Banks	$1,139	$1,587
Interest-bearing demand deposits with other banks	285	40
Money market mutual funds	154	162
Federal funds sold	35,900	29,700
Cash and cash equivalents	37,478	31,489
Interest-bearing time deposits with other banks	6,864	9,053
Investment in held-to-maturity securities	22,930	2,000
Federal Home Loan Bank Stock, at cost	979	956
Federal Reserve Bank Stock, at cost	1,922	1,719
Loans, net	265,781	234,052
Premises and equipment	864	1,076
Accrued interest receivable	937	731
Deferred income tax asset, net	1,234	1,225
Other assets	346	293
Total Assets	$339,335	$282,594

Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing	$27,805	$23,997
Interest-bearing	267,680	216,422
Total Deposits	295,485	240,419
Federal Home Loan Bank Advances	10,000	10,000
Other Liabilities	1,286	1,196
Total Liabilities	306,771	251,615
Stockholders' equity
Common Stock, par value .01; authorized 10,000,000 shares; 3,122,122 and 3,120,122 shares issued and outstanding as of June 30, 2016 and June 30, 2015 respectively	31	31
Paid-in capital	33,419	33,383
Accumulated deficit	-886	-2,435
Total Stockholders' Equity	32,564	30,979
Total Liabilities and Stockholders' Equity	$339,335	$282,594

First Commons Bank, N.A.
Statement of Income
(Unaudited)
	Six Months Ended
	June 2016
	2016	2015
	(dollars in thousands)
Interest Income:
Interest and fees on loans	$6,199	$5,275
Interest on securities	270	41
Other interest	119	41
Total interest income	6,588	5,357
Interest Expense:
Interest on deposits and borrowings	1,494	1,162
Total interest expense	1,494	1,162
Net interest income	5,094	4,195
Provision for loan losses	128	119
Net interest income after provision for loan losses	4,966	4,076
Noninterest Income:
Service charges on deposit accounts	52	32
Gain on sale of available-for-sale securities	0	0
Gain on sale of loans	151	92
Other income	156	95
Total noninterest income	359	219
Noninterest Expense:
Salaries and employee benefits	2,058	1,990
Occupancy expense	481	430
Equipment expense	105	94
Professional fees	255	215
Regulatory assessment	159	106
Other expense	634	665
Total noninterest expense	3,692	3,500
Income before income tax expense	1,633	795
Income Tax expense	652	334
Net Income	$981	$461

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Tony Nuzzo
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SOURCE First Commons Bank