Business

First Commerce Bancorp, Inc. Reports First Quarter 2025 Results

Lakewood, N.J., April 25, 2025 - (500NewsWire) – First Commerce Bancorp, Inc. (the “Company”), (OTC: CMRB), the holding company for First Commerce Bank (the “Bank”), today reported net income of $1.7 million and basic earnings per common share of $0.08 for the three months ended March 31, 2025, as compared to net income of $1.2 million and basic earnings per common share of $0.05 for the three months ended March 31, 2024.

President & CEO Donald Mindiak commented, “Measured balance sheet growth during the first quarter was highlighted by calculated increases in both loans and investment securities, redeploying excess liquidity into higher yielding assets, with a risk profile consistent with our underwriting standards. While our average yield on interest earning assets and average cost on interest bearing liabilities remained relatively stable as compared to the first quarter of 2024, on a linked quarter basis the average yield on interest earning assets increased by nine basis points and the average cost of interest bearing liabilities decreased by nine basis points resulting in a thirteen basis point increase in our net interest margin and a thirteen basis point increase in our return on average assets in the comparative quarters ended March 31, 2025 and December 31, 2024, respectively. The continued success of our stock repurchase plan, coupled with improving profitability, is reflected in the increase in book value by $0.08/share since year end 2024 and $0.34/share since March 31, 2024.”

Continuing, Mr. Mindiak remarked that, “From an asset quality perspective, one large loan of $21.0 million migrated into non-accrual status during the first quarter, however, a contract is in place to remediate this facility which is anticipated to close during the second quarter of 2025. While a degree of uncertainty has permeated the marketplace as a result of certain prospective economic, regulatory and geopolitical headwinds which remain an on-going challenge to navigate, we will endeavor to continue to execute our strategies with prudence and forethought in an effort to increase franchise and shareholder value.”

Financial Highlights

 

Total interest income increased by $1.4 million or 7.4% for the first quarter of 2025 compared to the first quarter of 2024 as a result of the growth in average interest-earning assets year over year.

 

 

Total interest expense increased by $1.0 million or 9.5% for the first quarter of 2025 compared to the first quarter of 2024 as a result of the growth in interest-bearing liabilities.

 

 

Total deposits increased by $96.9 million or 8.8% to $1.20 billion at March 31, 2025, compared to $1.11 billion at March 31, 2024.

 

 

The annualized return on average total assets increased by twelve basis points to 0.44% at March 31, 2025, compared to 0.32% at March 31, 2024.

 

 

The annualized return on average shareholders’ equity was 3.93% at March 31, 2025, compared to 2.54% at March 31, 2024.

 

 

The book value per common share was $8.47 at March 31, 2025, compared to $8.13 at March 31, 2024.

 

 

Net interest margin increased thirteen basis points on a linked quarter basis to 2.33% as of March 31, 2025, from 2.20% as of December 31, 2024.

 

Balance Sheet Review

Total assets increased by $30.9 million or 2.0% to $1.58 billion at March 31, 2025, from $1.55 billion at December 31, 2024. The increase in total assets was primarily related to increases in total investment securities and total loans receivable, partially offset by a decrease in cash and cash equivalents during the three months ended March 31, 2025.

Total cash and cash equivalents decreased by $48.1 million or 36.3% to $84.3 million at March 31, 2025, from $132.5 million at December 31, 2024. This decrease was primarily due to funding of loan closings and the purchases of investment securities during the first quarter of 2025.

Total investment securities increased by $65.6 million or 58.5% to $177.8 million at March 31, 2025, from $112.2 million at December 31, 2024. The increase in investment securities resulted primarily from $69.3 million in purchases of investment securities, partially offset by $1.3 million in redemptions and $2.4 million in mortgage-backed security amortization.

Total loans receivable, net of allowance for credit losses increased by $17.1 million or 1.4% to $1.24 billion at March 31, 2025, from $1.22 billion at December 31, 2024. Commercial mortgage loans, and construction loans increased $8.2 million and $13.5 million, respectively, partially offset by decreases in commercial loans, residential loans and home equity loans of $1.8 million, $1.6 million and $1.4 million, respectively. The allowance for credit losses increased by $78,000 to $14.8 million or 1.18% of gross loans at March 31, 2025, as compared to $14.7 million or 1.19% of gross loans at December 31, 2024.

Total deposits increased $27.1 million or 2.3% to $1.20 billion at March 31, 2025, from $1.17 billion at December 31, 2024. Within the components of total deposits, time deposits increased $33.6 million, savings deposits increased $9.9 million, and non-interest-bearing demand deposits increased $7.0 million, partially offset by decreases of $10.8 million in NOW deposits, $7.9 million in money market account deposits and $4.6 million in brokered deposits.

Stockholders’ equity decreased by $1.8 million or 1.1% to $170.4 million at March 31, 2025, from $172.3 million at December 31, 2024. The decrease in stockholders’ equity was primarily due to $4.1 million in repurchases of common stock, offset by increases of $1.7 million in retained earnings and $713,000 in additional paid-in-capital. During the three months ended March 31, 2025, the Company repurchased 653,000 shares for approximately $4.1 million, or a weighted average price of approximately $6.23 per share.

Three Months of Operations

Net interest income increased by $382,000 or 4.6% to $8.6 million for the three months ended March 31, 2025, from $8.2 million for the three months ended March 31, 2024. The increase in net interest income was primarily due to an increase in total interest income of $1.4 million as a result of an increase in average interest earning assets, partially offset by an increase in total interest expense of $1.0 million as a result of an increase in average interest-bearing liabilities.

Total interest income increased by $1.4 million or 7.4% to $20.5 million for the three months ended March 31, 2025, from $19.1 million for the three months ended March 31, 2024. Interest income on loans, including fees, decreased $289,000 or 1.6% to $17.4 million for the three months ended March 31, 2025, as compared to $17.7 million for the three months ended March 31, 2024. The decrease in interest income on loans, including fees, resulted primarily from a decline in the average balance of loans receivable of $9.9 million or 0.8% to $1.24 billion for the three months ended March 31, 2025, as compared to $1.25 billion for the three months ended March 31, 2024. Average yield on loans receivable was 5.67% for the three months ended March 31, 2025, unchanged year over year. Interest income on interest-bearing deposits with other banks increased by $338,000 or 51.6% to $993,000 for the three months ended March 31, 2025, as compared to $655,000 for the same period in the prior year. This increase resulted from a higher average balance of interest-bearing deposits with banks of $43.7 million or 80.7% to $97.8 million for the three months ended March 31, 2025, as compared to $54.1 million for the same period in the prior year. Interest income on investment securities increased by $1.3 million or 231.0% to $1.9 million for the three months ended March 31, 2025, as compared to $561,000 for the same period in the prior year, as a result of purchasing and replacing paydowns of investment securities with higher yielding investment securities. The average balance of investment securities portfolio increased by $81.8 million or 117.2% to $151.6 million for the three months ended March 31, 2025, as compared to $69.8 million for the same period in the prior year. The average yield on investment securities increased by 168 basis points to 4.90% for the three months ended March 31, 2025, as compared to 3.22% for the same period in the prior year. Dividend income on FHLB stock increased by $63,000 or 40.1% to $220,000 for the three months ended March 31, 2025, as compared to $157,000 for the same period in the prior year, primarily as a result of an increase in average yield of 128 basis points to 9.34% for the three months ended March 31, 2025, as compared to 8.06% for the same period in the prior year.

Total interest expense increased by $1.0 million or 9.5% to $11.8 million for the three months ended March 31, 2025, from $10.8 million for the three months ended March 31, 2024. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $118.6 million or 11.0%, to $1.20 billion for the three months ended March 31, 2025, from $1.08 billion for the three months ended March 31, 2024. Despite the increase in the average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased to 3.99% for the three months ended March 31, 2025, as compared to 4.01% for the three months ended March 31, 2024. The increase in average balance of interest-bearing liabilities included a $85.3 million increase in average interest-bearing deposit liabilities and a $33.3 million increase in average wholesale borrowings for the three months ended March 31, 2025. The increase in interest-bearing liabilities was primarily used to maintain an increased level of liquidity consistent with regulatory guidance.

During the first quarter of 2025, the Company recorded an $83,000 provision for credit losses as compared to a $7,000 provision for credit losses for the same period in the prior year. Based on the results of the CECL model and management’s evaluation of both quantitative and qualitative factors for the first quarter of 2025, the Company recorded a provision for credit losses of $51,000 on corporate securities held-to-maturity, a $19,000 provision for credit losses for unfunded commitments and a $13,000 provision for credit losses on loans. Based upon the aforementioned analyses, management believes that the allowance for credit losses on loans and investment securities at March 31, 2025, and 2024 were appropriate.

Net interest margin decreased by six basis points to 2.33% for the three months ended March 31, 2025, compared to 2.39% for the three months ended March 31, 2024. The decrease in the net interest margin is primarily due to an increase in the average balance of interest bearing liabilities of $118.6 million to $1.20 billion for the three months ended March 31, 2025 from $1.08 billion three months ended March 31, 2024, despite a decrease in the cost of interest-bearing liabilities to 3.99% for the three months ended March 31, 2025 from 4.01% for the three months ended March 31, 2024. This increase was partially offset by an increase in average balance of interest earning assets of $117.3 million to $1.50 billion for the three months ended March 31, 2025, compared to $1.39 billion for the three months ended March 31, 2024.

Non-interest income increased by $872,000 or 167.0% to $1.4 million for the three months ended March 31, 2025, from $522,000 for the three months ended March 31, 2024. The increase in total non-interest income resulted primarily from an increase in other income of $764,000 as a result of a non-recurring gain of $778,000 on the sale of a Company owned property recorded in the first quarter of 2025. Excluding this non-recurring gain, other income would have decreased $14,000 when compared to the same period in the prior year. Service charges and fees increased by $102,000 or 53.4% to $293,000 for the three months ended March 31, 2025, from $191,000 for the same period in the prior year, primarily due to an increase in loan fees of $47,000 and an increase in deposit accounts fees of $51,000.

Non-interest expense increased by $638,000 or 8.8% to $7.8 million for the three months ended March 31, 2025, compared to $7.2 million for the three months ended March 31, 2024. Salaries and employee benefits increased by $238,000 or 5.3% to $4.7 million for the three months ended March 31, 2025, as compared to $4.5 million for the three months ended March 31, 2024. The increase in salaries and employee benefits resulted primarily due to new positions appointed to assist in the growth of the Bank and annual merit increases partially offset by a decrease in health insurance costs year over year. Occupancy and equipment expense increased by $245,000 or 26.9% to $1.2 million for the three months ended March 31, 2025, as compared to $912,000 for the three months ended March 31, 2024, primarily due to additional lease expense related to the Company leasing additional office space to relocate its corporate offices. Advertising and marketing expense decreased by $23,000 or 29.5% to $55,000 for the three months ended March 31, 2025, as compared to $78,000 for the three months ended March 31, 2024, as a result of reduction in marketing consultant services. Data processing expense increased by $57,000 or 20.0% to $342,000 for the three months ended March 31, 2025, compared to $285,000 for the three months ended March 31, 2024, primarily as a result of adding new services and annual cost increases. FDIC insurance assessment increased $26,000 or 13.3% to $221,000 for the three months ended March 31, 2025, from $195,000 for the three months ended March 31, 2024, as a result of an increase in the assessment rate. Other operating expenses increased by $79,000 or 10.5% to $828,000 for the three months ended March 31, 2025, from $749,000 for the three months ended March 31, 2024, primarily due to minor increases in various components of other operating expenses. Other operating expenses are primarily comprised of loan related expenses, dues and subscriptions, digital banking expenses, sponsorships, training and education, software maintenance and depreciation, and miscellaneous expenses. Management's focus continues to remain on prudently managing its operating expenses.

The income tax provision increased by $22,000 or 5.8% to $403,000 for the three months ended March 31, 2025, from $381,000 for the three months ended March 31, 2024. This increase in the income tax provision resulted primarily from an increase in the pre-tax income year over year. In addition, the effective tax yield declined year over year as a result of a reduction in New York state tax apportionment. The effective tax rate for the quarter ended March 31, 2025, was 19.4% compared to 24.8% for the quarter ended March 31, 2024.

Asset Quality

The allowance for credit losses increased by $78,000 to $14.8 million or 1.18% of gross loans at March 31, 2025, as compared to $14.7 million or 1.19% of gross loans at December 31, 2024, and $14.6 million or 1.18% at March 31, 2024. During the first quarter of 2025, the Company added a $13,000 provision to the allowance for credit losses and had net recoveries of $65,000. Based on the results of the CECL model and management’s evaluation of both quantitative and qualitative factors during the quarter, changes in the allowance for credit losses are adjusted accordingly.

The Bank had non-accrual loans totaling $37.9 million or 3.02% of gross loans at March 31, 2025, as compared to $16.6 million or 1.34% of gross loans at December 31, 2024. Non-accrual loans increased by $21.3 million or 128.0% from December 31, 2024, as a result of one commercial real estate loan in the amount of approximately $21.0 million which was placed on non-accrual status during the first quarter of 2025. A contract is in place to remediate this facility which is anticipated to close during the second quarter of 2025. The allowance for credit losses was 39.1% of non-accrual loans at March 31, 2025, compared to 88.7%, at December 31, 2024.

About First Commerce Bancorp, Inc.

First Commerce Bancorp, Inc, is a financial services organization headquartered in Lakewood, New Jersey. The Bank, the Company’s wholly owned subsidiary, provides businesses and individuals a wide range of loans, deposit products and retail and commercial banking services through its branch network located in Allentown, Bordentown, Closter, Englewood, Fairfield, Freehold, Jackson, Lakewood, Robbinsville and Teaneck, New Jersey. For more information, please visit our website https://www.firstcommercebk.com/ or contact our offices at 732-364-0032.

Forward-Looking Statements

This release, like many written and oral communications presented by First Commerce Bancorp Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

In addition to the factors previously disclosed in prior Bank communications and those identified elsewhere, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the impact of changes in interest rates and in the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Commerce Banks investment securities portfolio; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Commerce Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; inflation; customer acceptance of the Banks products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with certain corporate initiatives; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.

 

First Commerce Bancorp, Inc.

Consolidated Statements of Financial Condition

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025 vs.

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

(dollars in thousands, except percentages and share data)

 

March 31, 2025

 

 

December 31, 2024

 

 

Amount

 

 

%

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash on hand

 

$

2,052

 

 

$

1,790

 

 

$

262

 

 

 

14.6

%

Interest-bearing deposits in other banks

 

 

82,285

 

 

 

130,690

 

 

 

(48,405

)

 

 

-37.0

%

Total cash and cash equivalents

 

 

84,337

 

 

 

132,480

 

 

 

(48,143

)

 

 

-36.3

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale, at fair value

 

 

26,789

 

 

 

300

 

 

 

26,489

 

 

 

8829.7

%

Held-to-maturity ("HTM"), at amortized cost

 

 

151,258

 

 

 

112,107

 

 

 

39,151

 

 

 

34.9

%

Less: Allowance for credit losses - HTM securities

 

 

(249

)

 

 

(198

)

 

 

(51

)

 

 

25.8

%

Held-to-maturity, net of allowance for credit losses

 

 

151,009

 

 

 

111,909

 

 

 

39,100

 

 

 

34.9

%

Total investment securities

 

 

177,798

 

 

 

112,209

 

 

 

65,589

 

 

 

58.5

%

Restricted stock

 

 

9,483

 

 

 

9,348

 

 

 

135

 

 

 

1.4

%

Loans receivable

 

 

1,256,247

 

 

 

1,239,031

 

 

 

17,216

 

 

 

1.4

%

Less: Allowance for credit losses

 

 

(14,834

)

 

 

(14,756

)

 

 

(78

)

 

 

0.5

%

Net loans receivable

 

 

1,241,413

 

 

 

1,224,275

 

 

 

17,138

 

 

 

1.4

%

Premises and equipment, net

 

 

10,338

 

 

 

17,059

 

 

 

(6,721

)

 

 

-39.4

%

Right-of-use asset

 

 

18,201

 

 

 

16,085

 

 

 

2,116

 

 

 

13.2

%

Accrued interest receivable

 

 

6,541

 

 

 

5,829

 

 

 

712

 

 

 

12.2

%

Bank owned life insurance

 

 

26,951

 

 

 

26,711

 

 

 

240

 

 

 

0.9

%

Deferred tax asset, net

 

 

3,031

 

 

 

3,076

 

 

 

(45

)

 

 

-1.5

%

Other assets

 

 

3,890

 

 

 

4,053

 

 

 

(163

)

 

 

-4.0

%

Total assets

 

$

1,581,983

 

 

$

1,551,125

 

 

$

30,858

 

 

 

2.0

%

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

164,686

 

 

$

157,684

 

 

$

7,002

 

 

 

4.4

%

Interest-bearing

 

 

1,037,393

 

 

 

1,017,254

 

 

 

20,139

 

 

 

2.0

%

Total Deposits

 

 

1,202,079

 

 

 

1,174,938

 

 

 

27,141

 

 

 

2.3

%

Borrowings

 

 

178,000

 

 

 

175,000

 

 

 

3,000

 

 

 

1.7

%

Accrued interest payable

 

 

1,970

 

 

 

1,913

 

 

 

57

 

 

 

3.0

%

Lease liability

 

 

18,968

 

 

 

16,773

 

 

 

2,195

 

 

 

13.1

%

Other liabilities

 

 

10,544

 

 

 

10,232

 

 

 

312

 

 

 

3.1

%

Total liabilities

 

 

1,411,561

 

 

 

1,378,856

 

 

 

32,705

 

 

 

2.4

%

Commitments and contingencies

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock; authorized 5,000,000 shares; none issued

 

 

-

 

 

 

-

 

 

 

-

 

 

 

N/A

 

Common stock, par value of $0; 30,000,000 authorized

 

 

-

 

 

 

-

 

 

 

-

 

 

 

N/A

 

Additional paid-in capital

 

 

90,270

 

 

 

89,557

 

 

 

713

 

 

 

0.8

%

Retained earnings

 

 

106,641

 

 

 

104,965

 

 

 

1,676

 

 

 

1.6

%

Treasury stock

 

 

(26,360

)

 

 

(22,253

)

 

 

(4,107

)

 

 

18.5

%

Accumulated other comprehensive loss

 

 

(129

)

 

 

-

 

 

 

(129

)

 

 

-100.0

%

Total stockholders' equity

 

 

170,422

 

 

 

172,269

 

 

 

(1,847

)

 

 

-1.1

%

Total liabilities and stockholders' equity

 

$

1,581,983

 

 

$

1,551,125

 

 

$

30,858

 

 

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued

 

 

24,243,030

 

 

 

23,995,390

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

20,130,474

 

 

 

20,536,214

 

 

 

 

 

 

 

 

 

Treasury shares

 

 

4,112,556

 

 

 

3,459,176

 

 

 

 

 

 

 

 

 

 

 

 

 

First Commerce Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

Three Months Ended

 

 

 

Variance

 

(dollars in thousands, except percentages and share data)

 

March 31, 2025

 

 

March 31, 2024

 

 

Amount

 

 

%

 

Interest and Dividend Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

17,388

 

 

$

17,677

 

 

$

(289

)

 

 

-1.6

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

182

 

 

 

68

 

 

 

114

 

 

 

167.6

%

Held-to-maturity

 

 

1,675

 

 

 

493

 

 

 

1,182

 

 

 

239.8

%

Interest-bearing deposits with other banks

 

 

993

 

 

 

655

 

 

 

338

 

 

 

51.6

%

Restricted stock dividends

 

 

220

 

 

 

157

 

 

 

63

 

 

 

40.1

%

Total interest and dividend income

 

 

20,458

 

 

 

19,050

 

 

 

1,408

 

 

 

7.4

%

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

9,731

 

 

 

9,052

 

 

 

679

 

 

 

7.5

%

Borrowings

 

 

2,106

 

 

 

1,759

 

 

 

347

 

 

 

19.7

%

Total interest expense

 

 

11,837

 

 

 

10,811

 

 

 

1,026

 

 

 

9.5

%

Net interest income

 

 

8,621

 

 

 

8,239

 

 

 

382

 

 

 

4.6

%

Provision for credit losses

 

 

13

 

 

 

124

 

 

 

(111

)

 

 

-89.5

%

Provision for (reversal of) unfunded commitments for credit losses

 

 

19

 

 

 

(119

)

 

 

138

 

 

 

-116.0

%

Provision for credit losses - HTM securities

 

 

51

 

 

 

2

 

 

 

49

 

 

 

2450.0

%

Total provision for credit losses

 

 

83

 

 

 

7

 

 

 

76

 

 

 

1085.7

%

Net interest income after provision for (reversal of) credit losses

 

 

8,538

 

 

 

8,232

 

 

 

306

 

 

 

3.7

%

Non-interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

293

 

 

 

191

 

 

 

102

 

 

 

53.4

%

Bank owned life insurance income

 

 

240

 

 

 

234

 

 

 

6

 

 

 

2.6

%

Other income

 

 

861

 

 

 

97

 

 

 

764

 

 

 

787.6

%

Total non-interest income

 

 

1,394

 

 

 

522

 

 

 

872

 

 

 

167.0

%

Non-Interest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

4,740

 

 

 

4,502

 

 

 

238

 

 

 

5.3

%

Occupancy and equipment expense

 

 

1,157

 

 

 

912

 

 

 

245

 

 

 

26.9

%

Advertising and marketing

 

 

55

 

 

 

78

 

 

 

(23

)

 

 

-29.5

%

Professional fees

 

 

512

 

 

 

496

 

 

 

16

 

 

 

3.2

%

Data processing expense

 

 

342

 

 

 

285

 

 

 

57

 

 

 

20.0

%

FDIC insurance assessment

 

 

221

 

 

 

195

 

 

 

26

 

 

 

13.3

%

Other operating expenses

 

 

828

 

 

 

749

 

 

 

79

 

 

 

10.5

%

Total non-interest expenses

 

 

7,855

 

 

 

7,217

 

 

 

638

 

 

 

8.8

%

Income before income taxes

 

 

2,077

 

 

 

1,537

 

 

 

540

 

 

 

35.1

%

Income tax provision

 

 

403

 

 

 

381

 

 

 

22

 

 

 

5.8

%

Net income

 

$

1,674

 

 

$

1,156

 

 

$

518

 

 

 

44.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share - Basic

 

$

0.08

 

 

$

0.05

 

 

$

0.03

 

 

 

60.0

%

Earnings per common share - Diluted

 

 

0.08

 

 

 

0.05

 

 

 

0.03

 

 

 

60.0

%

Weighted average shares outstanding - Basic

 

 

20,392

 

 

 

22,600

 

 

 

(2,208

)

 

 

-9.8

%

Weighted average shares outstanding - Diluted

 

 

20,435

 

 

 

22,930

 

 

 

(2,495

)

 

 

-10.9

%

 

 

First Commerce Bancorp, Inc.

Net Interest Margin Analysis

(Unaudited)

 

 

 

 

Three months ended March 31, 2025

 

 

Three months ended March 31, 2024

 

 

 

Average

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

Average

 

(dollars in thousands)

 

Balance

 

 

Interest

 

 

Yield/Cost

 

 

Balance

 

 

Interest

 

 

Yield/Cost

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other banks

 

$

97,808

 

 

$

993

 

 

 

4.12

%

 

$

54,138

 

 

$

655

 

 

 

4.86

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

11,672

 

 

 

182

 

 

 

6.25

%

 

 

9,054

 

 

 

68

 

 

 

2.99

%

Held-to-maturity

 

 

139,935

 

 

 

1,675

 

 

 

4.79

%

 

 

60,731

 

 

 

493

 

 

 

3.25

%

Total investment securities

 

 

151,607

 

 

 

1,857

 

 

 

4.90

%

 

 

69,785

 

 

 

561

 

 

 

3.22

%

Restricted stock

 

 

9,433

 

 

 

220

 

 

 

9.34

%

 

 

7,779

 

 

 

157

 

 

 

8.06

%

Loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer loans

 

 

881

 

 

 

7

 

 

 

3.16

%

 

 

372

 

 

 

2

 

 

 

2.42

%

Home equity loans

 

 

2,384

 

 

 

50

 

 

 

8.52

%

 

 

2,948

 

 

 

59

 

 

 

8.11

%

Construction loans

 

 

104,991

 

 

 

2,057

 

 

 

7.84

%

 

 

115,401

 

 

 

2,529

 

 

 

8.67

%

Commercial loans

 

 

42,935

 

 

 

845

 

 

 

7.87

%

 

 

36,192

 

 

 

736

 

 

 

8.04

%

Commercial mortgage loans

 

 

1,060,105

 

 

 

13,936

 

 

 

5.26

%

 

 

1,056,058

 

 

 

13,664

 

 

 

5.12

%

Residential mortgage loans

 

 

11,598

 

 

 

136

 

 

 

4.76

%

 

 

14,873

 

 

 

174

 

 

 

4.71

%

SBA loans

 

 

21,131

 

 

 

357

 

 

 

6.75

%

 

 

28,037

 

 

 

513

 

 

 

7.24

%

Total loans receivable

 

 

1,244,025

 

 

 

17,388

 

 

 

5.67

%

 

 

1,253,881

 

 

 

17,677

 

 

 

5.67

%

Total interest-earning assets

 

 

1,502,873

 

 

 

20,458

 

 

 

5.52

%

 

 

1,385,583

 

 

 

19,050

 

 

 

5.53

%

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(14,800

)

 

 

 

 

 

 

 

 

 

 

(14,485

)

 

 

 

 

 

 

 

 

Cash on hand

 

 

1,927

 

 

 

 

 

 

 

 

 

 

 

1,906

 

 

 

 

 

 

 

 

 

Other assets

 

 

67,951

 

 

 

 

 

 

 

 

 

 

 

59,935

 

 

 

 

 

 

 

 

 

Total non-interest-earning assets

 

 

55,078

 

 

 

 

 

 

 

 

 

 

 

47,356

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,557,951

 

 

 

 

 

 

 

 

 

 

$

1,432,939

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing checking accounts

 

$

77,377

 

 

$

404

 

 

 

2.12

%

 

$

53,428

 

 

$

225

 

 

 

1.69

%

NOW accounts

 

 

8,629

 

 

 

62

 

 

 

2.91

%

 

 

38,092

 

 

 

322

 

 

 

3.40

%

Money market accounts

 

 

258,121

 

 

 

2,107

 

 

 

3.31

%

 

 

210,400

 

 

 

1,748

 

 

 

3.34

%

Savings accounts

 

 

39,467

 

 

 

195

 

 

 

2.00

%

 

 

29,145

 

 

 

29

 

 

 

0.40

%

Certificates of deposit

 

 

486,298

 

 

 

5,125

 

 

 

4.27

%

 

 

506,261

 

 

 

5,465

 

 

 

4.34

%

Brokered CDs

 

 

154,957

 

 

 

1,838

 

 

 

4.81

%

 

 

102,213

 

 

 

1,263

 

 

 

4.97

%

Borrowings

 

 

176,878

 

 

 

2,106

 

 

 

4.83

%

 

 

143,553

 

 

 

1,759

 

 

 

4.93

%

Total interest-bearing liabilities

 

 

1,201,727

 

 

$

11,837

 

 

 

3.99

%

 

 

1,083,092

 

 

$

10,811

 

 

 

4.01

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

154,448

 

 

 

 

 

 

 

 

 

 

 

143,325

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

29,196

 

 

 

 

 

 

 

 

 

 

 

23,291

 

 

 

 

 

 

 

 

 

Total non-interest-bearing liabilities

 

 

183,644

 

 

 

 

 

 

 

 

 

 

 

166,616

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

172,580

 

 

 

 

 

 

 

 

 

 

 

183,231

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

1,557,951

 

 

 

 

 

 

 

 

 

 

$

1,432,939

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

1.53

%

 

 

 

 

 

 

 

 

 

 

1.52

%

Net interest margin

 

 

 

 

 

$

8,621

 

 

 

2.33

%

 

 

 

 

 

$

8,239

 

 

 

2.39

%

 

 

First Commerce Bancorp, Inc.

Selected Financial Data

(Unaudited)

 

 

 

 

As of and for the quarters ended

 

(In thousands, except per share data)

 

3/31/2025

 

 

12/31/2024

 

 

9/30/2024

 

 

6/30/2024

 

 

3/31/2024

 

Summary earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

20,458

 

 

$

19,672

 

 

$

20,149

 

 

$

19,793

 

 

$

19,050

 

Interest expense

 

 

11,837

 

 

 

11,706

 

 

 

11,785

 

 

 

11,451

 

 

 

10,811

 

Net interest income

 

 

8,621

 

 

 

7,966

 

 

 

8,364

 

 

 

8,342

 

 

 

8,239

 

Provision for (reversal of) credit losses

 

 

83

 

 

 

(55

)

 

 

54

 

 

 

300

 

 

 

7

 

Net interest income after provision for (reversal of) credit losses

 

 

8,538

 

 

 

8,021

 

 

 

8,310

 

 

 

8,042

 

 

 

8,232

 

Non-interest income

 

 

1,394

 

 

 

412

 

 

 

582

 

 

 

562

 

 

 

522

 

Non-interest expense

 

 

7,855

 

 

 

7,117

 

 

 

7,524

 

 

 

7,230

 

 

 

7,217

 

Income before income tax expense

 

 

2,077

 

 

 

1,316

 

 

 

1,368

 

 

 

1,374

 

 

 

1,537

 

Income tax expense

 

 

403

 

 

 

167

 

 

 

240

 

 

 

287

 

 

 

381

 

Net income

 

$

1,674

 

 

$

1,149

 

 

$

1,128

 

 

$

1,087

 

 

$

1,156

 

Per share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

0.08

 

 

$

0.06

 

 

$

0.05

 

 

$

0.05

 

 

$

0.05

 

Earnings per share - diluted

 

 

0.08

 

 

 

0.06

 

 

 

0.05

 

 

 

0.05

 

 

 

0.05

 

Cash dividends declared

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

0.04

 

Book value at period end

 

 

8.47

 

 

 

8.39

 

 

 

8.31

 

 

 

8.19

 

 

 

8.13

 

Shares outstanding at period end

 

 

20,130

 

 

 

20,536

 

 

 

20,780

 

 

 

21,489

 

 

 

22,146

 

Basic weighted average shares outstanding

 

 

20,392

 

 

 

20,552

 

 

 

21,164

 

 

 

21,641

 

 

 

22,600

 

Fully diluted weighted average shares outstanding

 

 

20,435

 

 

 

20,612

 

 

 

21,387

 

 

 

21,898

 

 

 

22,930

 

Balance sheet data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,581,983

 

 

$

1,551,125

 

 

$

1,476,252

 

 

$

1,467,517

 

 

$

1,452,419

 

Investment securities, available-for-sale

 

 

26,789

 

 

 

300

 

 

 

7,748

 

 

 

8,337

 

 

 

8,758

 

Investment securities, held-to-maturity

 

 

151,009

 

 

 

111,909

 

 

 

73,977

 

 

 

74,109

 

 

 

61,483

 

Total loans

 

 

1,256,247

 

 

 

1,239,031

 

 

 

1,262,481

 

 

 

1,260,236

 

 

 

1,244,357

 

Allowance for credit losses

 

 

(14,834

)

 

 

(14,756

)

 

 

(14,869

)

 

 

(14,922

)

 

 

(14,628

)

Total deposits

 

 

1,202,079

 

 

 

1,174,938

 

 

 

1,097,165

 

 

 

1,107,159

 

 

 

1,105,161

 

Stockholders' equity

 

 

170,422

 

 

 

172,269

 

 

 

172,642

 

 

 

175,933

 

 

 

179,963

 

Common cash dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

904

 

Selected performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

0.44

%

 

 

0.31

%

 

 

0.31

%

 

 

0.30

%

 

 

0.32

%

Return on average stockholders' equity

 

 

3.93

%

 

 

2.65

%

 

 

2.56

%

 

 

2.47

%

 

 

2.54

%

Dividend payout ratio

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

 

 

78.21

%

Average yield on earning assets

 

 

5.52

%

 

 

5.43

%

 

 

5.66

%

 

 

5.64

%

 

 

5.53

%

Average cost of funding liabilities

 

 

3.99

%

 

 

4.08

%

 

 

4.18

%

 

 

4.12

%

 

 

4.01

%

Net interest margin

 

 

2.33

%

 

 

2.20

%

 

 

2.35

%

 

 

2.38

%

 

 

2.39

%

Efficiency ratio

 

 

78.43

%

 

 

84.95

%

 

 

84.10

%

 

 

81.19

%

 

 

82.37

%

Non-interest income to average assets

 

 

0.36

%

 

 

0.11

%

 

 

0.16

%

 

 

0.16

%

 

 

0.15

%

Non-interest expenses to average assets

 

 

2.04

%

 

 

1.90

%

 

 

2.04

%

 

 

1.99

%

 

 

2.03

%

Asset quality ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

 

3.02

%

 

 

1.34

%

 

 

1.15

%

 

 

1.21

%

 

 

1.53

%

Non-performing assets to total assets

 

 

2.40

%

 

 

1.07

%

 

 

0.98

%

 

 

1.04

%

 

 

1.31

%

Allowance for credit losses to non-performing loans

 

 

39.12

%

 

 

88.71

%

 

 

102.67

%

 

 

97.76

%

 

 

76.77

%

Allowance for credit losses to total loans

 

 

1.18

%

 

 

1.19

%

 

 

1.18

%

 

 

1.18

%

 

 

1.18

%

Net recoveries (charge-offs) to average loans

 

 

0.02

%

 

 

-0.01

%

 

 

-0.03

%

 

 

0.01

%

 

 

0.01

%

Liquidity and capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans to deposits

 

 

103.27

%

 

 

104.20

%

 

 

113.71

%

 

 

112.48

%

 

 

111.27

%

 

Average loans to average deposits

 

 

105.49

%

 

 

111.83

%

 

 

114.54

%

 

 

113.30

%

 

 

115.79

%

 

Total stockholders' equity to total assets

 

 

10.77

%

 

 

11.11

%

 

 

11.69

%

 

 

11.99

%

 

 

12.39

%

 

Total capital to risk-weighted assets

 

 

13.29

%

 

 

14.45

%

 

 

14.30

%

 

 

14.67

%

 

 

15.33

%

 

Tier 1 capital to risk-weighted assets

 

 

12.16

%

 

 

13.26

%

 

 

13.13

%

 

 

13.48

%

 

 

15.15

%

 

Common equity tier 1 capital ratio to risk-weighted assets

 

 

12.16

%

 

 

13.26

%

 

 

13.13

%

 

 

13.48

%

 

 

15.15

%

 

Tier 1 leverage ratio

 

 

10.74

%

 

 

11.56

%

 

 

11.80

%

 

 

12.08

%

 

 

12.58

%