Commencement Bank loans and deposits up in Q3, earnings down on tax expense

Tacoma-based Commencement Bank announced growth in both loan and deposit balances for the third quarter, although basic earnings fell from the third quarter of 2013 “due to tax expense,” the bank said in a release this week.

Loans increased $3.1 million and deposits grew $6.7 million for the quarter. Net income for the quarter was $215,000.

“In 2013, the bank recognized the tax benefit associated with previous losses and recorded a negative tax expense resulting in an increase in net profit,” the bank sated.

The full benefit was realized at the end of 2013, and this year the bank began to record tax expense. Return on average equity for the third quarter was 4.04 percent compared to 7.71 percent the year before, and the return on average assets was 0.52 percent against 1.08 percent. Basic per-share earnings were 10 cents for the quarter versus 17 cents during the same period last year.