Increases in Boston’s First Trade Union Bank’s provision for loan losses and operating expenses led to a 27 percent drop in net income in the first quarter, to $483,000 from $662,000, a decline partially offset by healthy gains in interest income, and total loans and deposits.
Total interest income was reported at $7.8 million for the first quarter of 2009, a 14.9 percent increase over the same period in 2008. Net interest income of $4.4 million was a 30.9 percent increase from the previous year. Total operating expenses increased 36.5 percent for the first quarter of 2009 when compared to the first quarter of 2008. The increase in operating expenses came in support of the bank’s continued growth, where salaries and employee benefits expense was up 42.7 percent.
Total loans and total deposits grew 35.8 percent and 53.1 percent, respectively, as of March 31, when compared to the same time period in 2008.
"We are proud of our accomplishments in the first quarter of 2009," said Michael A. Butler, First Trade’s president & CEO. "As an institution, we will remain client-focused in our pursuit to profitably grow, all the while cautiously managing risk and expenses. We have laid the groundwork for a successful remainder of 2009 and feel that we are well positioned for the future."
