First Commons Bank Grows to a $246 Million Institution in Only 50 Months; Net Loans Increase by 31%

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NEWTON, Mass.--(BUSINESS WIRE)--First Commons Bank of Newton, Mass., today reported that it achieved a Total Asset level of $246,570,000 as of September 30, 2013, after only 50 months of operation. Total assets grew by approximately $46 million, or 23 percent, for the 12-month period ended September 30, 2013. Net loans increased by $52 million, or 31 percent, for the same 12-month period.

Total Assets grew by approximately $38 million since December 31, 2012. Net loans increased by $38 million for the first nine months of 2013, while deposits grew by approximately $31 million since December 31, 2012. First Commons Bank’s assets have now surpassed the assets of more than 4,300 other banks — or more than 62 percent of the 6,949 FDIC-insured banks which filed FDIC call reports for the period ended June 30, 2013.

Tony Nuzzo, Chairman, President, and CEO of First Commons Bank, said, “We are pleased with our continued growth, especially in the loan portfolio. We are also pleased that as a bank which was established in July 2009, we have now reported net positive income for seven consecutive quarters of operation.”

Net Income for the nine-month period ended September 30, 2013, was $768,000, compared to $2.8 million for the nine-month period ended September 30, 3012. The September 2012 results were favorably impacted by the recovery of a deferred tax asset in the amount of $2.5 million. Excluding the tax recovery, Net Income for the nine-month period ended September 30, 2012 would have been approximately $344,000, compared to the $768,000 reported for the nine-month period ended September 30, 2013.

Total Interest Income increased by approximately $1.2 million for the nine months ended September 30, 2013, versus. the same period in 2012. Interest Expense increased by approximately $139,000 for the nine months ended September 30, 2013 versus the nine months ended September 30, 2012. Noninterest operating expenses increased by approximately $322,000 for the nine-month period ended September 30, 2013, compared to the nine-month period ended September 30, 2012.

Mr. Nuzzo commented, “We are pleased with the continued improvement in our financial fundamentals, especially the fact that profits from ongoing operations more than doubled for the first nine months of this year versus last year.”

“We are also proud that we have no nonperforming loans as of September 30, 2013,” he noted.

First Commons Bank’s financial results are available on the FDIC’s Web site at: http://goo.gl/nYq87Z.

 
First Commons Bank, N.A.
Balance Sheets
(Unaudited)
   

At or for the PeriodEnded September 30, 2013

 

   

At or for the YearEndedDecember 31, 2012

 

(Dollars in thousands)

ASSETS

   
Cash and Due from Banks 2,182 1,258
Interest-bearing demand deposits with other banks 2,944 3,435
Money market mutual funds 3,662 1,157
Federal funds sold 10,800     5,800
Cash and cash equivalents 19,588 11,650
Interest-bearing time deposits with other banks 1,715 245
Investments in available-for-sale securities, at fair value 0 9,477
Federal Home Loan Bank stock, at cost 739 399
Federal Reserve Bank stock, at cost 1,319 1,328
Loans, net 218,512 180,586
Premises and equipment 1,494 1,725
Accrued interest receivable 479 554
Deferred income tax asset, net 2,303 2,303
Other assets 421     304
Total assets 246,570     208,571
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:
Noninterest-bearing 20,725 11,626
Interest-bearing 195,915     173,794
Total deposits 216,640 185,420
Other liabilities 7,492     1,343
Total Liabilities 224,132     186,763
Stockholders' equity

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

Paid-in capital 25 25
Accumulated deficit 26,691 26,565
Accumulated other comprehensive income -4,278 (5,046)
Total stockholders' equity 0     264
Total liabilities and stockholders' equity 22,438     21,808
246,570     208,571
 
First Commons Bank, N.A.
Statement of Income
(Unaudited)
    Six Months Ended September 30,
2013     2012
(Dollars in thousands)
Interest income:    
Interest and fees on loans 7,177 5,682
Interest on securities: 67 272
Other interest 12     14
Total interest income 7,256 5,968
Interest expense:
Interest on deposits 1,371 1,254
Interest on borrowings 22      
Total interest expense 1,393     1,254
Net interest income 5,863 4,714
Provision for loan losses 293     114
Net interest income after provision for loanlosses 5,570 4,600
Noninterest income:
Service charges on deposit accounts 41 30
Gain on sales of available-for-sale securities 262 318
Other income 184     60
Total noninterest income 487 408
Noninterest expense:
Salaries and employee benefits 2,687 2,429
Occupancy and Equipment Expense 799 837
Professional fees 380 222
Regulatory assessment 253 218
Other expense 648     739
Total noninterest expense 4,767 4,445

Income (loss) before income tax expense(benefit)

1,290 563
Income Tax expense (benefit) 522     (2,267)
Net income (loss) 768     2,830
 

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 $246 million as of September 30, 2013 — after only 50 months of operation — making it larger than 62 percent 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 Square 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.

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