First Commons Bank Reaches $315 Million in Total Assets, Up 24% Versus a Year Ago; Q4 Net Income Up 82% Versus Q3

Tuesday, January 26, 2016 3:00 PM UTC

NEWTON, Mass., Jan. 26, 2016 -- First Commons Bank of Newton, Mass., today reported that it achieved a new high point of $315 million in Total Assets as of December 31, 2015, representing a 24% increase versus December 31, 2014, and a 7% increase versus last quarter ended September 30, 2015. Total Deposits grew to $272 million, a 27% increase versus a year ago and an 8% increase versus last quarter. Net Loans increased to $255 million as of December 31, 2015, representing a 19% increase versus a year ago and a 2% increase versus last quarter.

Tony Nuzzo, Chairman, President, and CEO of First Commons Bank, said, “We are pleased that, despite our strong growth in loans and deposits for the year, we were able to record over $1 million in Net Income — with our fourth-quarter Net Income representing a significant increase over each of the prior three quarters. Additionally, with Total Assets of $315 million, First Commons Bank is now in the top third of the over 6,200 banks in the U.S. filing FDIC Call Reports as of September 30, 2015.”

Net Income for the three-month period ended December 31, 2015, was $364 thousand, representing an 82% increase versus last quarter’s Net Income of $200 thousand. Net Income of $1,025,000 for 2015 was below Net Income of $1,255,000 for 2014. Mr. Nuzzo added, “Our strong 2015 loan growth required an increase to the Loan Loss Provision of $428,000 for the year versus an increase of only $25,000 in 2014. Further, although we now have over $2.3 million in our Loan Loss Provision, our credit quality remains outstanding and no loan is more than 60 days past due.”

Tangible Book Value on December 31, 2015, was $10.12 per share with approximately $31 million in equity and a Tier 1 Capital Ratio to Average Assets for the quarter of 10.35%.

First Commons Bank’s financial results are available on the FDIC’s Web site at: https://goo.gl/m3uHsw.

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.

Notes to Editors:

Press Contact: Don Goncalves, [email protected], 781-793-9380
Company Contact: Tony Nuzzo, First Commons Bank, 617-243-4410

First Commons Bank, N.A.
Balance Sheet
(Unaudited)
	December 31,		December 31,
	2015		2014
	(dollars in thousands)
Assets
Cash and Due from Banks	$	1,473	$	1,516
Interest-bearing demand deposits with other banks		64		123
Money market mutual funds		203		162
Federal funds sold		41,000		30,900
Cash and cash equivalents		42,740		32,701
Interest-bearing time deposits with other banks		8,085		2,205
Investment in held-to-maturity securities		2,000		0
Federal Home Loan Bank Stock, at cost		956		956
Federal Reserve Bank Stock, at cost		1,859		1,395
Loans, net		254,760		212,686
Premises and equipment		961		1,156
Accrued interest receivable		891		642
Deferred income tax asset, net		1,225		1,859
Other assets		2,375		332
Total Assets	$	315,852	$	253,932

Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing	$	21,539	$	18,998
Interest-bearing		251,203		194,425
Total Deposits		272,742		213,423
Federal Home Loan Bank Advances		10,000		10,000
Other Liabilities		1,528		1,867
Total Liabilities		284,270		225,290
Stockholders' equity
Common Stock, par value .01; authorized 10,000,000 shares; 3,122,122 and 2,950,532 shares issued and outstanding as of December 31, 2015, and December 31, 2014, respectively		31		30
Paid-in capital		33,422		31,508
Accumulated deficit		-1,871		-2,896
Total stockholders' equity		31,582		28,642
Total liabilities and stockholders' equity	$	315,852	$	253,932


First Commons Bank, N.A.
Statement of Income
(Unaudited)
	Twelve Months Ended
	December 31
	2015		2014
	(dollars in thousands)
Interest income:
Interest and fees on loans	$	11,401	$	10,831
Interest on securities		49		0
Other interest		174		88
Total interest income		11,624		10,919
Interest expense
Interest on deposits and borrowings		2,540		2,224
Total interest expense		2,540		2,224
Net interest income		9,084		8,695
Provision for loan losses		428		25
Net interest income after provision for loan losses		8,656		8,670
Noninterest income
Service charges on deposit accounts		43		44
Gain on sale of available-for-sale securities		0		0
Gain on sale of loans		243		150
Other income		27		12
Total noninterest income		313		206
Noninterest expense:
Salaries and employee benefits		4,118		3,670
Occupancy expense		882		844
Equipment expense		207		228
Professional fees		415		485
Regulatory assessment		234		295
Other expense		1,346		1,207
Total noninterest expense		7,202		6,729
Income (loss) before income tax expense (benefit)		1,767		2,147
Income Tax expense (benefit)		742		892
Net Income (Loss)	$	1,025	$	1,255

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First Commons Bank Reaches $315 Million in Total Assets, Up 24% Versus a Year Ago; Q4 Net Income Up 82% Versus Q3

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