First Trade Union Bank in Boston posted $1.44 million in net income for the six months ended June 30, representing a 59.9 percent increase compared with the year-ago period.
"We’ve been making consistent strides in our relationship banking strategies over the last 12 to 18 months. A lot of this is getting the right people in the right places," said President and CEO Michael A. Butler.
Total loans stood at $566.5 million, a 17 percent increase over the year-ago period, and loan growth was largely driven by expansion across several commercial areas of lending. The commercial and industrial portfolio increase 22.3 percent over the year-ago period, for instance.
Butler said commercial real estate lending has not been concentrated in any particular property type, though he noted that First Trade is not going after competitive multi-family projects. First Trade has seen some success in commercial real estate lending in New York, where it has offices, Butler said.
The bank has also expanded C&I lending largely through its partnership with the Small Business Administration and has expanded into Western Massachusetts.
First Trade also lends in certain specialty areas, like taxi medallion lending, that saw some success this year, too, Butler said.
Net interest income for the period totaled $9.92 million, a 10.3 percent increase from $8.99 million in the year-ago period. The bank also improved its efficiency ratio to 78.02 percent, compared with 84.67 percent last year.
Total assets increased 16.5 percent year-over-year to $702.99 million. Deposits increased 23.6 percent year-over-year to $596.89 million.
The bank’s Tier 1 capital ratio stood at 8.06 percent and its total risk-based capital ratio at 14.07 percent, compared with 8.7 percent and 14.43 percent, respectively, last year.
Net interest income for the six months ended June 30 was $9.92 million, up from $8.99 million for the same time period in 2013, which represents a 10.3 percent increase. Revenue increases, coupled with effective expense management, improved the bank’s efficiency ratio to 78.02 percent at June 30, compared with 84.67 percent at the same time period last year.
Butler also expressed optimism about First Trade’s new online banking platform, set to launch today.
"We think we’re really well positioned for this evolutionary change that’s happening on the retail side of banking," he said.
