First Trade Union Bank in Boston posted a 43 percent increase in its net income last year, boosted largely by increases in commercial lending.
Net income at the Boston-based bank totaled just over $2 million in 2013.
"Solid earnings were driven by growth in all of our commercial business lines, including our SBA division, as well as the expansion of our relationships with high net worth individuals through our yacht financing program," President and CEO Michael A. Butler said in a statement.
Butler also said fee income increased 50 percent year-over-year.
Growth across loans and core deposits drove an 8.5 percent increase in net interest income, to $19.1 million from $17.6 million the year before.
Total loans increased $84.6 million, or 18.2 percent, to $548.4 million, from year end 2012. Commercial and industrial (C&I) and commercial real estate loans increased 14.5 percent, and the consumer yacht portfolio increased 219 percent.
The bank also increased its Small Business Administration (SBA) lending last year. In Massachusetts, First Trade did $9.17 million in SBA 7(a) loans for the fiscal year 2013, a 64 percent increase over the $5.6 million in business it did in fiscal year 2012. The bank also did $8.28 million in 504 loans for fiscal year 2013. The SBA’s fiscal year ends on Sept. 30.
Total deposits increased $6.9 million, or 1.35 percent, to $518.9 million at year’s end. Non-interest bearing core deposits grew $28.4 million, or 24.6 percent, by year’s end.
Nonperforming assets to total assets declined to 1.37 percent at year’s end, compared with 1.81 percent at the end of 2012. The bank maintained a loan loss reserve balance of $6.8 million and an allowance for loan losses to total loans ratio of 1.2 percent, compared with $7.5 million and 1.6 percent in the previous year.
Total delinquent and non-accruing loans to total loans declined to 1.63 percent from 3.21 percent the previous year.
First Trade Union Bank maintained a Tier 1 Capital Ratio or 8.11 percent and a Total Risk-Based Capital Ratio of 14.23 percent, versus 8.15 percent and 15.43 percent, respectively, the previous year.
