First Commons Bank Earns More Than $1.2 Million in 2014 for a 42% Increase Versus a Year Ago, and Completes a New Capital Raise for Growth
NEWTON, Mass., Jan. 30, 2015 /PRNewswire/ -- First Commons Bank of Newton, Mass., today reported its results for the quarter ended December 31, 2014. Net income for the quarter was $282 thousand compared to $253 thousand for the 4th quarter of 2013. Net income for the period January 1 to December 31, 2014 was $1.255 million, compared to $884 thousand for the same period of 2013, an increase of 42%. Net income results for 2013 were positively affected by gains on sale of securities of $262 thousand, while 2014 results are all from banking operations.
The Bank raised $4.9 million, before expenses, in new common equity capital during 2014 at a price of $11.00 per share. The new capital will be used to fund further growth, as well as strengthen the Bank's capital ratios. Book value of the Bank's common stock was $9.71 per share as of December 31, 2014, compared to $9.00 as of December 31, 2013.
Of note, the Bank continued raising capital through January 21, 2015 and reached a total of $6.7 million, with an additional $1.8 million raised in 2015.
The Bank's Return on Average Assets for the twelve month period ended December 31, 2014 was 0.50%, compared to 0.39% for the twelve month period ended December 31, 2013. The Bank's Tier 1 Capital to Asset Ratio also improved from the 8.50% reported as of December 31, 2013 to 11.42% as of December 31, 2014. The improvement in the capital ratio is a combination of both earnings as well as the $4.9 million in capital raised in 2014.
Tony Nuzzo, Chairman, President and CEO of First Commons Bank said, "We are pleased that we earned $1.2 million in 2014, the first time the Bank has earned more than $1 million. We are also especially pleased with the capital raise which totaled $6.7 million at a price which was accretive to book value. We are confident that this capital raise will give us the ability to substantially grow in both size and profitability."
Total Interest Income of $10.9 million increased by approximately $742 thousand, or 7.3%, for the twelve month period ended December 31, 2014 vs. 2013. Interest Expense of $2.2 million increased by approximately $257 thousand, or 13.1%, for the twelve months ended December 31, 2014 vs. 2013. The Bank's Net Interest Margin of $8.7 million as of December 31, 2014 represents an increase of $485 thousand, or 5.9% over the twelve month period ended December 31, 2013. Noninterest operating expenses increased by approximately $344 thousand, or 5.4%, for the twelve month period ended December 31, 2014 compared to the twelve month period ended December 31, 2013.
Mr. Nuzzo further commented, "We are also pleased that our ratio of non-performing loans to total loans remains at 0.00% as of December 31, 2014, and we still do not have a loan that is more than 60 days past due."
First Commons Bank's financial results are available on the FDIC's Web site at: http://goo.gl/s2DQAm.
| First Commons Bank, N.A. |
|||
| Balance Sheet |
|||
| (Unaudited) |
|||
| December |
December |
||
| 2014 |
2013 |
||
| (dollars in thousands) |
|||
| Assets |
|||
| Cash and Due from Banks |
1,516 |
1,864 |
|
| Interest-bearing demand deposits with other banks |
123 |
6,728 |
|
| Money Market Mutual Funds |
162 |
3,662 |
|
| Federal funds sold |
30,900 |
13,500 |
|
| Cash and Cash equivalents |
32,701 |
25,754 |
|
| Interest-bearing time deposits with other banks |
2,205 |
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 |
1,395 |
1,319 |
|
| Loans, net |
212,686 |
227,227 |
|
| Premised and equipment |
1,156 |
1,414 |
|
| Accrued interest receivable |
642 |
535 |
|
| Deferred income tax asset, net |
1,859 |
1,859 |
|
| Other assets |
332 |
279 |
|
| Total Assets |
253,932 |
262,495 |
|
| Liabilities and Stockholders' Equity |
|||
| Deposits: |
|||
| Noninterest-bearing |
18,998 |
16,745 |
|
| Interest-bearing |
194,425 |
212,085 |
|
| Total Deposits |
213,423 |
228,830 |
|
| Federal Home Loan Bank Advances |
10,000 |
10,000 |
|
| Other Liabilities |
1,867 |
1,151 |
|
| Total Liabilities |
225,290 |
239,981 |
|
| Stockholders' equity |
|||
| Common Stock, par value .01; authorized 10,000,000 shares, 2,950,532 issued and outstanding |
30 |
25 |
|
| Paid-in Capital |
31,519 |
26,651 |
|
| Accumulated deficit |
-2,907 |
-4,162 |
|
| Accumulated other comprehensive income |
0 |
0 |
|
| Total stockholders' equity |
28,642 |
22,514 |
|
| Total liabilities and stockholders' equity |
253,932 |
262,495 |
|
| First Commons Bank, N.A. |
|||
| Statement of Income |
|||
| (Unaudited) |
|||
| Twelve months ended |
|||
| 2014 |
2013 |
||
| (Dollars in thousands) |
|||
| Interest Income: |
|||
| Interest and fees on loans |
10,831 |
10,070 |
|
| Interest on securities |
0 |
46 |
|
| Other interest |
88 |
61 |
|
| Total interest income |
10,919 |
10,177 |
|
| Interest Expense |
|||
| Interest on deposits and borrowings |
2,223 |
1,966 |
|
| Total Interest Expense |
2,223 |
1,966 |
|
| Net interest income |
8,696 |
8,211 |
|
| Provision for loan losses |
25 |
611 |
|
| Net interest income after provision for loan losses |
8,671 |
7,600 |
|
| Noninterest income |
|||
| Service charges on deposit accounts |
51 |
45 |
|
| Gain on sale of available-for-sale securities |
0 |
262 |
|
| Gain on sale of loans |
150 |
0 |
|
| Other income |
5 |
10 |
|
| Total noninterest income |
206 |
317 |
|
| Noninterest expense: |
|||
| Salaries and employee benefits |
3,670 |
3,502 |
|
| Occupancy expense |
844 |
819 |
|
| Equipment expense |
228 |
248 |
|
| Professional fees |
485 |
421 |
|
| Regulatory assessment |
295 |
285 |
|
| Other expense |
1,207 |
1,110 |
|
| Total noninterest expense |
6,729 |
6,385 |
|
| Income (loss) before income tax expense (benefit) |
2,148 |
1,532 |
|
| Income Tax expense (benefit) |
893 |
648 |
|
| Net Income (Loss) |
1,255 |
884 |
|
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. Branch and office locations include its headquarters at 718 Beacon St. in Newton Centre, Mass., and 161 Linden Square in Wellesley, Mass. It also has a stand-alone branded ATM in the mall at Newton's Chestnut Hill Square. Visit the First Commons Bank website at firstcommonsbank.com. Follow the bank on Facebook at facebook.com/firstcommonsbank and on Twitter at twitter.com/firstcommonsbnk.
ProfNet Expert Tony Nuzzo
http://www.profnetconnect.com/tony_nuzzo
SOURCE First Commons Bank
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