First Commerce Bancorp, Inc., Reports the Fourth Quarter and Year-to-Date 2024 Results

LAKEWOOD, NJ / ACCESS Newswire / January 31, 2025 / First Commerce Bancorp, Inc. (the "Company"), (OTC PINK:CMRB), the holding company for First Commerce Bank (the "Bank"), today reported net income of $1.1 million and $4.5 million for the three months and the year ended December 31, 2024, respectively, as compared to net income of $5.8 million and $13.8 million for the three months and the year ended December 31, 2023, respectively. Basic earnings per common share were $0.06 and $0.21 for the three months and the year ended December 31, 2024, respectively, as compared to $0.25 and $0.58 for the three months and the year ended December 31, 2023, respectively.

President & CEO Donald Mindiak commented, "Despite the challenging economic environment for financial institutions for the majority of 2024, the Company successfully engaged in several initiatives that provided enhanced shareholder value and positive quantitative metrics. Regarding the on-going Stock Repurchase Plan, through year-end 2024, the Company has repurchased over 3.4 million shares of its common stock at an average price of $6.37 per common share which is slightly over $2.00 per share less than our book value at December 31, 2024. Since shares repurchased at a discount to book value are accretive to book value, additional shareholder value has been created through this initiative. Additionally, diligent efforts by our credit team have reduced non-accrual loan balances year-over-year resulting in improving asset quality metrics. Lastly, the deposit portfolio was restructured in 2024 to place less reliance on volatile time deposit funding and more reliance on core deposit relationships. These efforts have been aided by the Federal Reserve easing short-term interest rates by one-hundred basis points in the second half of 2024 coupled with our strategic acquisition of several key business development officers. We remain confident in our ability to prudently grow our core business in the markets we serve while striving for the successful enhancement of franchise and shareholder value."

Continuing, Mr. Mindiak remarked that, "We have completed the first 50% of the second 10% Stock Repurchase Plan and have immediately begun the process of implementing the second 50% of that plan. This effort continues to provide enhanced value to our shareholder base which remains a driving force in our commitment to enhance value while prudently managing risk."

Financial Highlights

• Total interest income increased by $708,000 or 3.7% for the fourth quarter of 2024 compared to the fourth quarter of 2023 and increased $6.6 million or 9.1% for the year 2024 as compared to the same period in 2023 as a result of the growth in average interest-earning assets year over year.

• Total interest expense increased by $1.5 million or 15.0% for the fourth quarter of 2024 compared to the fourth quarter of 2023 and increased $13.1 million or 40.0% for the year 2024 as compared to the same period in 2023 as a result of both the cost of and the growth in interest-bearing liabilities.

• Total cost of interest-bearing liabilities increased by thirty basis points to 4.08% for the fourth quarter of 2024 compared to 3.78% for the fourth quarter of 2023 and increased by eighty-four points to 4.10% at year-end 2024 as compared to 3.25% at year-end 2023.

• Net interest margin decreased by thirty-one basis points to 2.20% for the fourth quarter of 2024 as compared to 2.51% for the fourth quarter of 2023. and decreased fifty-nine basis points to 2.33% at year-end 2024 as compared to 2.92% at year-end 2023.

• Total assets increased by $115.0 million or 8.0% to $1.55 billion at December 31, 2024 compared to $1.44 billion at December 31, 2023.

• Total deposits increased by $77.1 million or 7.0% to $1.17 billion at December 31, 2024 compared to $1.10 billion at December 31, 2023.

• The annualized return on average total assets was 0.31% at December 31, 2024 compared to 0.99% at December 31, 2023.

• The annualized return on average shareholders' equity was 2.55% at December 31, 2024 compared to 7.51% at December 31, 2023.

• The book value per common share was $8.39 at December 31, 2024 compared to $8.06 at December 31, 2023.

Balance Sheet Review

Total assets increased by $115.0 million or 8.0% to $1.55 billion at December 31, 2024 from $1.44 billion at December 31, 2023. The increase in total assets was primarily related to increases in total cash and cash equivalents and total investment securities during the year ended December 31, 2024.

Total cash and cash equivalents increased by $72.9 million or 118.1% to $134.6 million at December 31, 2024 from $61.7 million at December 31, 2023. This increase was primarily due to increases in total deposits and wholesale borrowings.

Total loans receivable, net of allowance for credit losses decreased by $12.5 million or 1.0% to $1.22 billion at December 31, 2024 from $1.24 billion at December 31, 2023. Construction loans, Small Business Administration ("SBA") loans and residential mortgage loans decreased $16.1 million, $6.2 million and $2.6 million, respectively, primarily due to payoffs and maturities of such loans. These decreases were partially offset by a $7.6 million increase in commercial loans and a $5.1 million increase in commercial real estate loans. The allowance for credit losses increased by $286,000 to $14.8 million or 1.19% of gross loans at December 31, 2024 as compared to $14.5 million or 1.16% of gross loans at December 31, 2023.

Total investment securities increased by $43.1 million or 62.5% to $112.2 million at December 31, 2024 from $69.1 million at December 31, 2023. The increase in investment securities resulted primarily from $60.8 million in purchases of investment securities, partially offset by $6.4 million in sales of available-for-sale investment securities, $1.1 million in maturities and $10.3 million in total paydowns. The Company liquidated $6.4 million in available-for-sale investment securities in an effort to purchase higher yielding held-to-maturity investment securities. As a result of this sale, the Company recorded a loss of $237,000 from the sale of available-for-sale investment securities. The Company's decision to restructure its investment portfolio into higher yielding securities resulted in an increase of approximately 2.5% in average yield and an earn-back period of approximately two years for the loss recorded on the sale of investment securities.

Total deposits increased $77.1 million or 7.0% to $1.17 billion at December 31, 2024 from $1.10 billion at December 31, 2023. Within the components of total deposits, brokered deposits increased $93.0 million, money market deposits increased $60.7 million, savings deposits increased $5.3 million and non-interest-bearing demand deposits increased $3.2 million, partially offset by decreases of $82.7 million in time deposits and $2.4 million in NOW and interest checking account deposits.

Stockholders' equity decreased by $11.7 million or 6.4% to $172.3 million at December 31, 2024 from $184.0 million at December 31, 2023. The decrease in stockholders' equity was primarily due to $15.1 million in repurchases of common stock, offset by increases of $2.7 million in retained earnings and an increase of $616,000 in additional paid-in-capital. During 2024, the Company repurchased 2.4 million shares for approximately $15.1 million, or a weighted average price of approximately $6.20 per share. As a result of the repurchase of these shares at a discount to the book value, the Company's book value increased by $0.33 per share or 4.1% to $8.39 per share at December 31, 2024, from $8.06 per share at December 31, 2023.

Three Months of Operations

Net interest income decreased by $815,000 or 9.3% to $8.0 million for the three months ended December 31, 2024 from $8.8 million for the three months ended December 31, 2023. The decrease in net interest income was primarily due to an increase in funding costs and an increase in average interest-bearing liabilities.

Total interest income increased by $708,000 or 3.7% to $19.7 million for the three months ended December 31, 2024 from $19.0 million for the three months ended December 31, 2023. Interest income on loans, including fees, decreased $189,000 or 1.1% to $17.5 million for the three months ended December 31, 2024, compared to $17.7 million for the three months ended December 31, 2023. The decrease in interest income on loans, including fees, resulted primarily from a decline in the average balance of loans receivable of $11.4 million or 0.9% to $1.25 billion for the three months ended December 31, 2024 compared to $1.26 billion for the three months ended December 31, 2023. Interest income on interest-bearing deposits with other banks increased $491,000 or 82.1% to $1.1 million for the three months ended December 31, 2024 as compared to $598,000 for the same period in the prior year. This increase resulted from a higher average balance of interest-bearing deposits with banks of $48.4 million or 98.5% to $97.6 million for the three months ended December 31, 2024 compared to $49.2 million for the same period in the prior year. Interest income on investment securities increased $345,000 or 61.6% to $905,000 for the three months ended December 31, 2024 as compared to $560,000 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 yield on investment securities increased by 100 basis points to 4.16% for the three months ended December 31, 2024 compared to 3.16% for the same period in the prior year. Dividend income on restricted stock, primarily composed of Federal Home Loan Bank ("FHLB") stock, increased by $61,000 or 41.5% to $208,000 for the three months ended December 31, 2024 as compared to $147,000 for the same period in the prior year, primarily as a result of an increase of $3.1 million in average balance of restricted stock outstanding year over year.

Total interest expense increased by $1.5 million or 15.0% to $11.7 million for the three months ended December 31, 2024 from $10.2 million for the three months ended December 31, 2023. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $71.8 million or 6.7%, to $1.14 billion for the three months ended December 31, 2024 from $1.07 billion for the three months ended December 31, 2023 and a thirty basis points increase in the average cost of interest-bearing liabilities to 4.08% for the three months ended December 31, 2024 from 3.78% for the three months ended December 31, 2023. The increase in average balance of interest-bearing liabilities included a $65.5 million increase in average wholesale borrowings and a $6.3 million increase in average interest-bearing deposit liabilities for the three months ended December 31, 2024. The increase in the average cost of interest-bearing liabilities resulted primarily from the continued higher interest rate environment through most of the year 2024. The increase in interest-bearing liabilities was primarily used to maintain an increased level of liquidity consistent with regulatory guidance.

During the fourth quarter of 2024, the Company recorded a net benefit of $55,000 for credit losses as compared to a net $5.7 million benefit 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 fourth quarter of 2024, the Company recorded a provision for credit losses of $91,000 on corporate securities held-to-maturity, which was offset by a $146,000 reversal of provision for credit losses for loans and unfunded commitments. Management believes that the allowance for credit losses on loans and investment securities was appropriate at December 31, 2024 and 2023.

Net interest margin decreased by thirty-one basis points to 2.20% for the three months ended December 31, 2024 compared to 2.51% for the three months ended December 31, 2023. The decrease in the net interest margin is primarily due to an increase in the average cost of interest-bearing liabilities to 4.08% for the three months ended December 31, 2024 from 3.78% for the three months ended December 31, 2023 and an increase in the average balance of interest-bearing liabilities to $1.14 billion for the three months ended December 31, 2024 from $1.07 billion for the three months ended December 31, 2023. This increase was partially offset by an increase in average balance of interest earning assets of $56.2 million or 4.1% to $1.44 billion for the three months ended December 31, 2024 compared to $1.39 billion for the three months ended December 31, 2023.

Non-interest income decreased by $171,000 or 29.3% to $412,000 for the three months ended December 31, 2024 from $583,000 for the three months ended December 31, 2023. The decrease in total non-interest income resulted primarily from a decrease in other income of $198,000 as a result of a non-recurring loss on sale of available-for-sale investment securities of $237,000 recorded in the fourth quarter of 2024. Excluding this non-recurring loss, other income would have increased $40,000 when compared to the same period in the prior year. Income on bank owned life insurance increased $21,000 or 9.5% for the three months ended December 31, 2024 compared to the same period in the prior year as a result of an increase in interest yield.

Non-interest expense increased by $35,000 or 0.5% to $7.11 million for the three months ended December 31, 2024 compared to $7.08 million for the three months ended December 31, 2023. Salaries and employee benefits increased by $122,000 or 2.9% to $4.4 million for the three months ended December 31, 2024 as compared to $4.2 million for the three months ended December 31, 2023. The increase in salaries and employee benefits resulted primarily from an annual increase in health benefit costs and an increase in employee incentive expense year over year. Advertising and marketing expense decreased by $135,000 or 210.9% as a result of reduction in marketing consultant services. Professional fees decreased by $146,000 or 33.6% to $289,000 for the three months ended December 31, 2024 as compared to $435,000 for the three months ended December 31, 2023, primarily due to a reduction in legal services related to the formation of the holding company and a reduction in audit fees compared to the same period in the prior year period. Data processing costs increased by $120,000 or 30.1% to $519,000 for the three months ended December 31, 2024 from $399,000 for the three months ended December 31, 2023, as a result of annual fee increase, and additional cost related to new products and services. Other operating expenses increased by $134,000 or 18.9% to $844,000 for the three months ended December 31, 2024 from $710,000 for the three months ended December 31, 2023, primarily as a result of a $120,000 increase in loan related expenses, most of it related to the purchase of forced-place insurance policy. 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 will continue to manage its operating expenses prudently in an effort to enhance shareholder value.

The income tax provision decreased by $2.0 million or 92.2% to $167,000 for the three months ended December 31, 2024 from $2.1 million for the three months ended December 31, 2023. This decrease in the income tax provision resulted primarily from a decrease 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.

Full Year of Operations

Net interest income decreased by $6.5 million or 16.4% to $32.9 million for the year ended December 31, 2024 from $39.4 million for the year ended December 31, 2023. The decrease in net interest income was primarily due to an increase in funding costs and an increase in average interest-bearing liabilities, partially offset by an increase in average interest-earning assets year over year.

Total interest income increased by $6.6 million or 9.1% to $78.7 million for the year ended December 31, 2024 from $72.1 million for the year ended December 31, 2023. Interest income on loans, including fees, increased $4.2 million or 6.2% to $71.4 million for the year ended December 31, 2024, compared to $67.2 million for the year ended December 31, 2023. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $34.3 million or 2.8% to $1.25 billion for the year ended December 31, 2024 compared to $1.22 billion for the year ended December 31, 2023 and an increase of eighteen basis points in the average yield on loans to 5.70% for the year ended December 31, 2024 compared to 5.52% for the same period in the prior year. In addition, the increase in interest income on loans includes the recovery of approximately $200,000 in pre-payment penalties. Interest income on interest-bearing deposits with other banks increased $1.3 million or 56.3% to $3.5 million for the year ended December 31, 2024 as compared to $2.2 million for the same period in the prior year. This increase resulted from a higher average yield on interest-bearing deposits with banks of 4.78% for the year ended December 31, 2024 compared to 4.58% for the same period in the prior year, and an increase of $24.6 million in average balances of interest-bearing deposits with banks year over year. Interest income on investment securities increased $827,000 or 38.0% to $3.0 million for the year ended December 31, 2024 as compared to $2.2 million for the same period in the prior year, as a result of purchasing and replacing paydowns of investment securities with higher yielding investment securities. Average yield on investment securities increased by ninety-three basis points to 3.81% for the year ended December 31, 2024 compared to 2.88% for the same period in the prior year. Dividend income on restricted stock, primarily composed of FHLB stock, increased by $304,000 or 68.8% to $746,000 for the year ended December 31, 2024 as compared to $442,000 for the same period in the prior year, primarily as a result of a higher average yield on restricted stock of 8.58% for the year ended December 31, 2024 compared to 7.19% for the same period in the prior year, and an increase of $2.6 million in average restricted stock balance year over year.

Total interest expense increased by $13.1 million or 40.0% to $45.8 million for the year ended December 31, 2024 from $32.7 million for the year ended December 31, 2023. The increase in interest expense occurred primarily as a result of a eighty-five basis points increase in the average cost of interest-bearing liabilities to 4.10% for the year ended December 31, 2024 from 3.25% for the year ended December 31, 2023 and an increase in average balance of interest-bearing liabilities of $108.9 million or 10.8%, to $1.12 billion for the year ended December 31, 2024 from $1.01 billion for the year ended December 31, 2023. The increase in average balance of interest-bearing liabilities included a $54.4 million increase in average interest-bearing deposit liabilities and a $54.5 million increase in average wholesale borrowings for the year ended December 31, 2024. The increase in the average cost of interest-bearing liabilities resulted primarily from the continued higher interest rate environment. The increase in interest-bearing liabilities was used to maintain an increased level of liquidity consistent with regulatory guidance.

During the year 2024 the Company recorded a net $308,000 provision for credit losses as compared to a net benefit of $4.7 million 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 during the year 2024, the Company recorded a provision for credit losses on loans and corporate securities held-to-maturity totaling $465,000, which was offset by a $157,000 reversal of credit losses for unfunded commitments. Unfunded commitment balances declined by $57.0 million during the year 2024 compared to the year-end 2023, which resulted in recording a reversal in provision for credit losses for unfunded commitments. Management believes that the allowance for credit losses on loans and investment securities was appropriate at December 31, 2024 and 2023.

Net interest margin decreased by fifty-nine basis points to 2.33% for the year ended December 31, 2024 compared to 2.92% for the year ended December 31, 2023. The decrease in the net interest margin is primarily attributable to an increase in the cost of interest-bearing liabilities to 4.10% for the year ended December 31, 2024 from 3.25% for the year ended December 31, 2023 and increase in the average balance of interest-bearing liabilities of $108.9 million or 10.8% to $1.12 billion for the year ended December 31, 2024 from $1.01 billion for the year ended December 31, 2023, partially offset by an increase in the average balance of interest earning assets of $65.8 million or 4.9% to $1.41 billion for the year ended December 31, 2024 compared to $1.35 billion for the year ended December 31, 2023, as well as an increase of twenty-two basis points in the yield of average interest earning assets to 5.57% for the year ended December 31, 2024 from 5.35% for the year ended December 31, 2023.

Non-interest income decreased by $440,000 or 17.5% to $2.1 million for the year ended December 31, 2024 from $2.5 million for the year ended December 31, 2023. The decrease in total non-interest income resulted primarily from a decrease in BOLI income of $292,000 or 23.4% to $954,000 for the year ended December 31, 2024 from $1.2 million for the year ended December 31, 2023. The decrease in BOLI income resulted from a one-time benefit received on the Bank's investment in BOLI in 2023. Services charges and fees increased $137,000 or 16.8% to $953,000 for the year ended December 31, 2024 from $816,000 for the year ended December 31, 2023, as a result of an increase in deposit accounts service charges. Other income decreased $285,000 during the year ended December 31, 2024 compared to the same period in the prior year as a result of a non-recurring loss on sale of available-for-sale investment securities of $237,000 and a reduction of $95,000 in rental income, offset by a $46,000 gain recorded on sale of assets. Excluding this non-recurring loss, other income would have decreased $47,000 when compared to the same period in the prior year.

Non-interest expense increased by $885,000 or 3.1% to $29.1 million for the year ended December 31, 2024 compared to $28.2 million for the year ended December 31, 2023. Salaries and employee benefits increased by $690,000 or 4.0% to $17.9 million for the year ended December 31, 2024 as compared to $17.2 million for the year ended December 31, 2023. The increase in salaries and employee benefits resulted primarily from an annual increase in health benefit costs year over year. Occupancy and equipment expense decreased by $272,000 or 6.8% to $3.7 million for the year ended December 31, 2024 as compared to $4.0 million for the year ended December 31, 2023 primarily due to a decrease in other real estate owned expenses ("OREO"), and equipment service contract costs. Advertising and marketing expenses decreased $135,000 or 38.6% to $215,000 for the year ended December 31, 2024, as compared to $350,000 for the year ended December 31, 2023 primarily due to a reduction in marketing consulting services. Professional fees decreased by $369,000 or 17.7% to $1.7 million for the year ended December 31, 2024 from $2.1 million for the year ended December 31, 2023 as a result of reduction in legal services related to the formation of the Holding Company and audit fees. Data processing costs increased by $380,000 or 36.1% to $1.4 million for the year ended December 31, 2024 from $1.1 million for the year ended December 31, 2023 as a result of annual fee increase and additional cost related to new products and services. Other expenses increased by $616,000 or 22.1% to $3.4 million for the year ended December 31, 2024 from $2.8 million for the year ended December 31, 2023. Other operating expenses are primarily comprised of loan related expenses which increased $57,000, dues and subscriptions which increased $142,000, sponsorships which increased $59,000, digital banking expenses, training and education which increased $56,000, software maintenance and depreciation which increased $93,000, miscellaneous expenses which increased $70,000, and small variances in other components of other operating expenses. There was no loss on sale of OREO for the year ended December 31, 2024 compared to a loss on sale of OREO of $59,000 recorded during the year ended December 31, 2023.

The income tax provision decreased by $3.6 million or 76.9% to $1.1 million for the year ended December 31, 2024 from $4.7 million for the year ended December 31, 2023. The decrease in the income tax provision resulted primarily from a decrease in earnings before income taxes of $12.8 million or 69.6%, to $5.6 million for the year ended December 31, 2024 from $18.4 million for the year ended December 31, 2023. The effective tax rate for the year ended December 31, 2024 was 19.2% as compared to 25.3% for the year ended December 31, 2023. In addition, the effective tax yield declined year over year as a result of a reduction in New York state tax apportionment.

Asset Quality

The allowance for credit losses increased by $286,000 or 2.0% to $14.8 million or 1.19% of gross loans at December 31, 2024 as compared to $14.5 million or 1.16% of gross loans at December 31, 2023. During the year 2024, the Company added a $292,000 provision to the allowance for credit losses and had net charge-offs of $7,000. Changes in the allowance for credit losses are calculated and adjusted quarterly and accordingly, relative to loan growth and quantitatively measured asset quality metrics.

The Bank had non-accrual loans totaling $16.6 million or 1.34% of gross loans at December 31, 2024 as compared to $18.4 million or 1.47% of gross loans at December 31, 2023. Non-accrual loans decreased by $1.8 million or 9.8% from December 31, 2023. The allowance for credit losses was 88.7% of non-accrual loans at December 31, 2024, compared to 78.8%, at December 31, 2023.

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 go to www.firstcommercebk.com.

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 Bank's 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; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions); inflation; customer acceptance of the Bank's 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 and the impact of a potential shutdown of the federal government.

First Commerce Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)
										December 31, 2024 vs.
										December 31, 2023
(dollars in thousands, except percentages and share data)		December 31, 2024				December 31, 2023				Amount				%
Assets
Cash and cash equivalents:
Cash on hand		$	1,790			$	1,745			$	45				2.6	%
Interest-bearing deposits in other banks			132,853				59,979				72,874				121.5	%
Total cash and cash equivalents			134,643				61,724				72,919				118.1	%
Investment securities:
Available-for-sale, at fair value			300				9,537				(9,237	)			-96.9	%
Held-to-maturity ("HTM"), at amortized cost			112,108				59,551				52,557				88.3	%
Less: Allowance for credit losses - HTM securities			(199	)			(26	)			(173	)			670.2	%
Held-to-maturity, net of allowance for credit losses			111,909				59,525				52,384				88.0	%
Total investment securities			112,209				69,062				43,147				62.5	%
Restricted stock			9,348				7,169				2,179				30.4	%
Loans receivable			1,239,031				1,251,227				(12,196	)			-1.0	%
Less: Allowance for credit losses			(14,756	)			(14,470	)			(286	)			2.0	%
Net loans receivable			1,224,275				1,236,757				(12,482	)			-1.0	%
Premises and equipment, net			17,059				15,861				1,198				7.6	%
Right-of-use asset			16,085				9,498				6,587				69.4	%
Accrued interest receivable			5,829				5,632				197				3.5	%
Bank owned life insurance			26,711				25,757				954				3.7	%
Deferred tax asset, net			3,076				2,947				129				4.4	%
Other assets			1,890				1,692				198				11.7	%
Total assets		$	1,551,125			$	1,436,099			$	115,026				8.0	%
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing		$	157,684			$	154,503			$	3,181				2.1	%
Interest-bearing			1,017,254				943,295				73,959				7.8	%
Total Deposits			1,174,938				1,097,798				77,140				7.0	%
Borrowings			175,000				130,000				45,000				34.6	%
Accrued interest payable			1,914				2,008				(94	)			-4.7	%
Lease liability			16,773				10,161				6,612				65.1	%
Other liabilities			10,231				12,136				(1,905	)			-15.7	%
Total liabilities			1,378,856				1,252,102				126,754				10.1	%
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			89,557				88,941				616				0.7	%
Retained earnings			104,965				102,219				2,746				2.7	%
Treasury stock			(22,253	)			(6,964	)			(15,289	)			219.5	%
Accumulated other comprehensive loss			-				(200	)			200				-100.0	%
Total stockholders' equity			172,269				183,996				(11,727	)			-6.4	%
Total liabilities and stockholders' equity		$	1,551,125			$	1,436,099			$	115,026				8.0	%
Shares issued			23,995,390				23,856,990
Shares outstanding			20,536,214				22,830,559
Treasury shares			3,459,176				1,026,431

First Commerce Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
		Three Months Ended								Variance
(dollars in thousands, except percentages and share data)		December 31, 2024				December 31, 2023				Amount				%
Interest and Dividend Income
Loans, including fees		$	17,470			$	17,659			$	(189	)			-1.1	%
Investment securities:
Available-for-sale			43				81				(38	)			-46.9	%
Held-to-maturity			862				479				383				80.0	%
Interest-bearing deposits with other banks			1,089				598				491				82.1	%
Restricted stock dividends			208				147				61				41.5	%
Total interest and dividend income			19,672				18,964				708				3.7	%
Interest expense:
Deposits			9,520				8,765				755				8.6	%
Borrowings			2,186				1,418				768				54.2	%
Total interest expense			11,706				10,183				1,523				15.0	%
Net interest income			7,966				8,781				(815	)			-9.3	%
Benefit for credit losses			(132	)			(4,981	)			4,849				-97.3	%
Benefit for unfunded commitments for credit losses			(14	)			(715	)			701				-98.0	%
Provision (benefit) for credit losses - HTM securities			91				(2	)			93				-4650.0	%
Total benefit for credit losses			(55	)			(5,698	)			5,643				-99.0	%
Net interest income after provision (benefit) for credit losses			8,021				14,479				(6,458	)			-44.6	%
Non-interest Income:
Service charges and fees			280				274				6				2.2	%
Bank owned life insurance income			243				222				21				9.5	%
Other income			(111	)			87				(198	)			-227.6	%
Total non-interest income			412				583				(171	)			-29.3	%
Non-Interest Expenses:
Salaries and employee benefits			4,358				4,236				122				2.9	%
Occupancy and equipment expense			994				986				8				0.8	%
Advertising and marketing			(71	)			64				(135	)			-210.9	%
Professional fees			289				435				(146	)			-33.6	%
Data processing expense			519				399				120				30.1	%
FDIC insurance assessment			184				252				(68	)			-27.0	%
Other operating expenses			844				710				134				18.9	%
Total non-interest expenses			7,117				7,082				35				0.5	%
Income before income taxes			1,316				7,980				(6,664	)			-83.5	%
Income tax provision			167				2,146				(1,979	)			-92.2	%
Net income		$	1,149			$	5,834			$	(4,685	)			-80.3	%
Earnings per common share - Basic		$	0.06			$	0.25			$	(0.19	)			-76.0	%
Earnings per common share - Diluted			0.06				0.25				(0.19	)			-76.0	%
Weighted average shares outstanding - Basic			20,552				22,969				(2,418	)			-10.5	%
Weighted average shares outstanding - Diluted			20,612				23,272				(2,660	)			-11.4	%

First Commerce Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
		Year Ended								Variance
(dollars in thousands, except percentages and share data)		December 31, 2024				December 31, 2023				Amount				%
Interest and Dividend Income
Loans, including fees		$	71,395			$	67,208			$	4,187				6.2	%
Investment securities:
Available-for-sale			234				360				(126	)			-35.0	%
Held-to-maturity			2,769				1,816				953				52.5	%
Interest-bearing deposits with other banks			3,522				2,253				1,269				56.3	%
Restricted stock dividends			746				442				304				68.8	%
Total interest and dividend income			78,666				72,079				6,587				9.1	%
Interest expense:
Deposits			37,831				27,416				10,415				38.0	%
Borrowings			7,921				5,272				2,649				50.2	%
Total interest expense			45,752				32,688				13,064				40.0	%
Net interest income			32,914				39,391				(6,477	)			-16.4	%
Provision (benefit) for credit losses			292				(3,485	)			3,777				-108.4	%
Benefit for unfunded commitments for credit losses			(157	)			(1,268	)			1,111				-87.6	%
Provision for credit losses - HTM securities			173				26				147				565.4	%
Total provision (benefit) for credit losses			308				(4,727	)			5,035				-106.5	%
Net interest income after provision (benefit) for credit losses			32,606				44,118				(11,512	)			-26.1	%
Non-interest Income:
Service charges and fees			953				816				137				16.8	%
Bank owned life insurance income			954				1,246				(292	)			-23.4	%
Other income			172				457				(285	)			-62.4	%
Total non-interest income			2,079				2,519				(440	)			-17.5	%
Non-Interest Expenses:
Salaries and employee benefits			17,899				17,209				690				4.0	%
Occupancy and equipment expense			3,717				3,989				(272	)			-6.8	%
Advertising and marketing			215				350				(135	)			-38.6	%
Professional fees			1,710				2,079				(369	)			-17.7	%
Data processing expense			1,434				1,054				380				36.1	%
FDIC insurance assessment			715				681				34				5.0	%
Loss on valuation of OREO			-				59				(59	)			-100.0	%
Other operating expenses			3,399				2,783				616				22.1	%
Total non-interest expenses			29,089				28,204				885				3.1	%
Income before income taxes			5,596				18,433				(12,837	)			-69.6	%
Income tax provision			1,075				4,656				(3,582	)			-76.9	%
Net income		$	4,521			$	13,777			$	(9,255	)			-67.2	%
Earnings per common share - Basic		$	0.21			$	0.58			$	(0.37	)			-63.8	%
Earnings per common share - Diluted			0.21				0.58			$	(0.37	)			-63.8	%
Weighted average shares outstanding - Basic			21,672				23,581				(1,909	)			-8.1	%
Weighted average shares outstanding - Diluted			21,733				23,884				(2,151	)			-9.0	%

First Commerce Bancorp, Inc.
Net Interest Margin Analysis
(Unaudited)
		Three Months Ended December 31, 2024												Three Months Ended December 31, 2023
		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		$	97,605			$	1,089				4.44	%		$	49,164			$	598				4.83	%
Investment securities:
Available -for-sale			5,961				43				2.92	%			10,427				81				3.09	%
Held-to-maturity			81,057				862				4.25	%			60,489				479				3.17	%
Total investment securities			87,018				905				4.16	%			70,916				560				3.16	%
Restricted stock			9,537				208				8.70	%			6,435				147				9.12	%
Loans receivable:
Consumer loans			706				3				1.69	%			389				2				2.37	%
Home equity loans			2,746				56				8.07	%			3,066				79				10.19	%
Construction loans			111,762				2,331				8.16	%			125,214				2,817				8.80	%
Commercial loans			41,211				784				7.44	%			33,910				699				8.07	%
Commercial mortgage loans			1,055,180				13,705				5.08	%			1,053,155				13,319				5.02	%
Residential mortgage loans			13,511				163				4.80	%			15,107				182				4.79	%
SBA loans			22,453				428				7.46	%			28,159				561				7.79	%
Total loans receivable			1,247,569				17,470				5.57	%			1,259,000				17,659				5.56	%
Total interest-earning assets			1,441,729				19,672				5.43	%			1,385,515				18,964				5.43	%
Non-interest-earning assets:
Allowance for credit losses			(14,876	)											(19,481	)
Cash and due from bank			1,968												1,918
Other assets			61,749												61,138
Total non-interest-earning assets			48,841												43,575
Total assets		$	1,490,570											$	1,429,090
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Interest-bearing checking accounts		$	77,725			$	394				2.02	%		$	58,274			$	225				1.53	%
NOW accounts			8,854				72				3.22	%			26,274				47				0.71	%
Money market accounts			258,604				2,338				3.60	%			176,786				1,327				2.98	%
Savings accounts			32,792				127				1.54	%			32,326				32				0.39	%
Certificates of deposit			432,703				4,751				4.37	%			580,521				6,008				4.11	%
Brokered CDs			151,693				1,838				4.82	%			81,875				1,126				5.46	%
Borrowings			179,196				2,186				4.85	%			113,696				1,418				4.95	%
Total interest-bearing liabilities			1,141,567				11,706				4.08	%			1,069,752			$	10,183				3.78	%
Non-interest-bearing liabilities:
Demand deposits			153,261												153,385
Other liabilities			23,260												25,087
Total non-interest bearing liabilities			176,521												178,472
Stockholders' equity			172,482												180,866
Total liabilities and stockholders' equity		$	1,490,570											$	1,429,090
Net interest spread											1.35	%											1.65	%
Net interest margin						$	7,966				2.20	%						$	8,781				2.51	%

First Commerce Bancorp, Inc.
Net Interest Margin Analysis
(Unaudited)
		Year Ended December 31, 2024												Year Ended December 31, 2023
		Average								Average				Average								Average
(dollars in thousands)		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Assets:
Interest-earning assets:
Interest-bearing deposits		$	73,747			$	3,522				4.78	%		$	49,184			$	2,253				4.58	%
Investment securities:
Available -for-sale			7,853				234				2.98	%			11,823				360				3.00	%
Held-to-maturity			71,038				2,769				3.90	%			62,733				1,816				2.86	%
Total investment securities			78,891				3,003				3.81	%			74,556				2,176				2.88	%
Restricted stock			8,693				746				8.58	%			6,053				442				7.19	%
Loans:
Consumer loans			521				10				1.83	%			318				10				3.03	%
Home equity loans			2,919				236				8.08	%			3,474				263				7.58	%
Construction loans			112,286				9,736				8.53	%			115,419				10,195				8.71	%
Commercial loans			38,328				3,021				7.75	%			37,004				2,896				7.72	%
Commercial mortgage loans			1,058,435				55,832				5.19	%			1,017,914				50,921				4.94	%
Residential mortgage loans			14,277				687				4.81	%			15,411				740				4.80	%
SBA loans			25,434				1,873				7.24	%			28,381				2,183				7.59	%
Loans Held for Sale			-				-				N/A				5				-				N/A
Total loans			1,252,200				71,395				5.70	%			1,217,926				67,208				5.52	%
Total interest-earning assets			1,413,531				78,666				5.57	%			1,347,719				72,079				5.35	%
Non-interest-earning assets:
Allowance for credit losses			(14,681	)											(18,664	)
Cash and due from bank			1,961												1,780
Other assets			60,651												61,113
Total non-interest-earning assets			47,931												44,229
Total assets		$	1,461,462											$	1,391,948
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Interest-bearing checking accounts		$	59,677			$	851				1.43	%		$	51,026			$	570				1.12	%
NOW accounts			33,758				1,413				4.19	%			26,851				157				0.58	%
Money market accounts			232,299				8,298				3.57	%			178,395				4,486				2.51	%
Savings accounts			28,464				214				0.75	%			42,382				150				0.35	%
Certificates of deposit			477,493				21,065				4.41	%			561,340				19,824				3.53	%
Brokered CDs			122,563				5,990				4.89	%			39,930				2,229				5.58	%
Borrowings			161,337				7,921				4.91	%			106,801				5,272				4.94	%
Total interest-bearing liabilities			1,115,591				45,752				4.10	%			1,006,725			$	32,688				3.25	%
Non-interest-bearing liabilities:
Demand deposits			145,654												185,346
Other liabilities			23,207												16,482
Total non-interest bearing liabilities			168,861												201,828
Stockholders' equity			177,010												183,395
Total liabilities and stockholders' equity		$	1,461,462											$	1,391,948
Net interest spread											1.47	%											2.10	%
Net interest margin						$	32,914				2.33	%						$	39,391				2.92	%

First Commerce Bancorp, Inc.
Selected Financial Data
(Unaudited)
		As of and for the quarters ended
(In thousands, except per share data)		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
Summary earnings:
Interest income		$	19,672			$	20,150			$	19,793			$	19,051			$	18,964
Interest expense			11,706				11,785				11,451				10,811				10,183
Net interest income			7,966				8,364				8,342				8,240				8,781
Provision (benefit) for credit losses			(55	)			54				300				7				(5,698	)
Net interest income after provision (benefit) for credit losses			8,021				8,310				8,042				8,233				14,479
Non-interest income			412				582				562				522				583
Non-interest expense			7,117				7,524				7,230				7,217				7,082
Income before income tax expense			1,316				1,368				1,375				1,538				7,980
Income tax expense			167				240				287				381				2,146
Net income		$	1,149			$	1,128			$	1,087			$	1,156			$	5,834
Per share data:
Earnings per share - basic		$	0.06			$	0.05			$	0.05			$	0.05			$	0.25
Earnings per share - diluted			0.06				0.05				0.05				0.05				0.25
Cash dividends declared			-				-				-				0.04				0.04
Book value at period end			8.39				8.31				8.19				8.13				8.06
Shares outstanding at period end			20,536				20,780				21,489				22,146				22,831
Basic weighted average shares outstanding			20,552				21,164				21,641				22,600				22,969
Fully diluted weighted average shares outstanding			20,612				21,387				21,898				22,930				23,272
Balance sheet data (at period end):
Total assets		$	1,551,125			$	1,476,252			$	1,467,517			$	1,452,419			$	1,436,099
Investment securities, available-for-sale			300				7,748				8,337				8,758				9,537
Investment securities, held-to-maturity			111,909				73,977				74,109				61,483				59,525
Total loans			1,239,031				1,262,481				1,260,236				1,244,357				1,251,227
Allowance for credit losses			(14,756	)			(14,869	)			(14,922	)			(14,628	)			(14,470	)
Total deposits			1,174,938				1,097,165				1,107,159				1,105,161				1,097,798
Stockholders' equity			172,269				172,642				175,933				179,963				183,996
Common cash dividends			-				-				-				904				952
Selected performance ratios:
Return on average total assets			0.31	%			0.31	%			0.30	%			0.32	%			1.62	%
Return on average stockholders' equity			2.65	%			2.56	%			2.47	%			2.54	%			12.80	%
Dividend payout ratio			N/A				N/A				N/A				78.21	%			16.32	%
Net interest margin			2.20	%			2.35	%			2.38	%			2.39	%			2.51	%
Efficiency ratio			84.95	%			84.10	%			81.19	%			82.37	%			75.43	%
Non-interest income to average assets			0.11	%			0.16	%			0.16	%			0.15	%			0.14	%
Non-interest expenses to average assets			1.90	%			2.04	%			1.99	%			2.03	%			1.94	%
Asset quality ratios:
Non-performing loans to total loans			1.34	%			1.15	%			1.21	%			1.53	%			1.47	%
Non-performing assets to total assets			1.07	%			0.98	%			1.04	%			1.31	%			1.28	%
Allowance for credit losses to non-performing loans			88.71	%			102.67	%			97.76	%			76.77	%			78.82	%
Allowance for credit losses to total loans			1.19	%			1.18	%			1.18	%			1.18	%			1.16	%
Net recoveries (charge-offs) to average loans			-0.01	%			-0.03	%			0.01	%			0.01	%			-0.03	%
Liquidity and capital ratios:
Net loans to deposits			104.20	%			113.71	%			112.48	%			111.27	%			111.66	%
Average loans to average deposits			111.83	%			114.54	%			113.30	%			115.79	%			112.57	%
Total stockholders' equity to total assets			11.11	%			11.69	%			11.99	%			12.39	%			12.81	%
Total capital to risk-weighted assets			14.45	%			14.30	%			14.67	%			15.33	%			15.71	%
Tier 1 capital to risk-weighted assets			13.26	%			13.13	%			13.48	%			15.15	%			14.52	%
Common equity tier 1 capital ratio to risk-weighted assets			13.26	%			13.13	%			13.48	%			15.15	%			14.52	%
Tier 1 leverage ratio			11.56	%			11.80	%			12.08	%			12.58	%			12.88	%

SOURCE: First Commerce Bancorp, Inc.

View the original press release on ACCESS Newswire