BOSTON – First Trade Union Bank saw its annual profit grow to $2.4 million, a 17.2 percent increase from 2007, despite sharp increases in staffing and technology expenditures.
“We are extremely pleased and proud of our accomplishments in 2008,” said Michael Butler, First Trade Union’s president and chief executive.
“Through a very challenging and uncertain year, we were able to not only achieve strong earnings growth but also maintain our asset quality – and, with an eye toward the bank’s future, we made strategic investments in both human capital and technology.”
The bank posted total assets of more than $590 million at year’s end, saying that total loans grew $90 million, or 25.7 percent, to $443 million.
Total deposits grew $80 million, or 23.1 percent, to $427 million, led by a 47-percent increase in interest-free (DDA) deposits.
Interest income grew 6 percent to $28.9 million, led by strong loan-portfolio growth in the bank’s commercial and industrial segment. (Although First Trade Union also serves the personal banking market, small and mid-sized businesses, government entities and labor unions still comprise the bank’s core clientele.)
Meanwhile, interest expenses shrank 13.3 percent to $13.3 million “as the bank took advantage of lower funding costs,” First Trade Union said.
As a result, net interest income before loan-loss provisions grew to $15.6 million, a 31.2 percent increase compared with 2007.
Operating expenses rose $1.9 million, or 17.4 percent, to $10.9 million “in support of the institution’s continued growth,” as First Trade Union expanded its staff, upgraded its IT infrastructure and moved into its new corporate headquarters in Boston.
Two key measures, the bank’s asset quality and capital position, both remained strong in 2008, First Trade Union said. It posted a non-performing loan ratio of 0.55 percent and net charge-offs of less than 0.01 percent.
The bank ended the year with a Tier 1 capital ratio of 8.25 percent – well above the official “well-capitalized” threshold of 6.0 percent – as well as a Tier 2 ratio of 11.55 percent and a risk-based capital ratio of 12.98 percent, both of which also topped Federal Deposit Insurance Corporation (FDIC) “well-capitalized” standards.
“Despite turbulent economic conditions, First Trade is poised for growth and remains strongly committed to serving the needs of our clients, both new and existing,” Butler said.
First Trade Union Bank is a community bank based in Boston, with offices in Warwick and Hauppauge, N.Y. Its services include 24-hour ATM service, telephone banking and consumer and business online banking. First Trade is an Equal Housing / Equal Opportunity Lender and a member of the Federal Deposit Insurance Corporation (FDIC). Additional information is available at www.ftub.com.
