the bank

Leadership at First Central Savings Bank  (“FCSB,” “the Bank”) has reported significant performance achievements for the quarter ending on June 30, the company announced.

The report was marked by increases in operating and cash earnings, continued momentum in year-over-year loan growth, and improved asset quality and net income.  

“First Central continues to build shareholder value in calendar 2021 by delivering continued earnings momentum and solid loan growth,” said Joseph Pistilli, chairman of the Bank’s board. “In the past year, we  have achieved net income growth of 299.1 percent, loan growth of 5.1 percent, and deposit growth of 5.3 percent growth.”

Total assets for the quarter decreased by $1.5 million to $677.8 million as the Bank continued to originate non-conforming loans and sell them on the secondary market. On a year-over-year basis, total assets grew by $29.3 million, or 4.5 percent, driven by the Bank’s robust loan originations offset by non-conforming loan sales.

The Bank’s overall average cost of interest-bearing liabilities decreased to 0.74 percent for the quarter ended, from 1.49 percent for the previous quarter. The Bank’s loan portfolio grew by $27.6 million, or  5.1 percent, with the growth concentrated primarily in adjustable non-conforming residential loans. Management continues to employ a strategy of concentrating its loan growth in these products with short durations, which provides the Bank with traditionally safe credit quality at acceptable credit spreads,  greater liquidity, and an enhanced interest-rate-risk profile.

As a result of the Bank’s robust non-conforming loan generation capabilities, the Bank has been able to generate additional income by strategically originating and selling its non-conforming loans to other financial institutions at premiums.

“Our core earnings momentum continues as evidenced by our growth in net interest income and loan sale income for the  June 2021 quarter,” said Paul Hagan, the Bank’s president and chief operating officer. “ … Further, as we remain steadfastly selective in our loan underwriting, our growth story continues to be highlighted by industry-leading asset quality. As we have grown the balance sheet, we have maintained strong expense control as indicated by our efficiency ratio of 64.64 percent. Our ability to prudently control expenses while continuing to deliver robust  growth is indicative of management’s commitment to creating shareholder value.” 

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