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First Commerce Bancorp, Inc. Reports听First Quarter 2025 Results

LAKEWOOD, N.J., April 25, 2025 (GLOBE NEWSWIRE) -- First Commerce Bancorp, Inc. (the 鈥淐ompany鈥�), (OTC: CMRB), the holding company for First Commerce Bank (the 鈥淏ank鈥�),听迟辞day reported net income of $1.7听尘颈濒濒颈辞苍 and basic earnings per common share of $0.08听for the three months ended March 31, 2025, as compared to net income of $1.2听尘颈濒濒颈辞苍 and basic earnings per common share of $0.05听for the three months ended March 31, 2024.

President & CEO Donald Mindiak commented, 鈥淢easured 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听risk profile听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听quarters ended听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.鈥�

Continuing, Mr. Mindiak remarked that, 鈥淔rom 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听of uncertainty has permeated the marketplace as a result of certain prospective economic, regulatory and geopolitical headwinds which remain听an on-going challenge to navigate, we will endeavor to continue 迟辞听execute our strategies with prudence and forethought in an effort to increase franchise and shareholder value.鈥�

Financial Highlights

• Total interest income increased by $1.4 million听辞谤 7.4% for听the听first quarter of听2025 compared to the听first quarter of听2024听as a result of the growth in average interest-earning assets听year over year.
• Total interest expense听increased by $1.0听尘颈濒濒颈辞苍 or 9.5% for the first quarter of听2025 compared 迟辞听the听first quarter of听2024听as a result of the growth in interest-bearing liabilities.
• Total deposits increased by $96.9听尘颈濒濒颈辞苍 or 8.8% to $1.20听产颈濒濒颈辞苍 at听March 31, 2025,听compared to $1.11听产颈濒濒颈辞苍 at听March 31, 2024.
• The annualized return on average total assets increased by twelve basis points 迟辞听0.44% at听March 31, 2025,听compared to 0.32% at听March 31, 2024.
• The annualized return on average shareholders鈥櫶齟quity was 3.93% at听March 31, 2025, compared to 2.54% at听March 31, 2024.
• The book value per common share was $8.47听at听March 31, 2025, compared to $8.13听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听尘颈濒濒颈辞苍 or 2.0% to $1.58听产颈濒濒颈辞苍 at听March 31, 2025, from $1.55听产颈濒濒颈辞苍 at December 31, 2024.听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听during the听three months ended March 31, 2025.

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

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

Total loans receivable, net of allowance for credit losses increased by $17.1听尘颈濒濒颈辞苍 or 1.4% 迟辞听$1.24听产颈濒濒颈辞苍 at听March 31, 2025, from听$1.22听产颈濒濒颈辞苍 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听loans, residential loans and home equity loans of $1.8听尘颈濒濒颈辞苍, $1.6 million and $1.4 million, respectively.听The allowance for credit losses increased by $78,000 to $14.8听尘颈濒濒颈辞苍 or 1.18% of gross loans at听March 31, 2025, as compared to $14.7听尘颈濒濒颈辞苍 or 1.19% of gross loans at December 31, 2024.

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

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

Three Months of Operations

Net interest income increased by $382,000听辞谤 4.6% to $8.6听尘颈濒濒颈辞苍 for the听three months ended March 31, 2025, from $8.2听尘颈濒濒颈辞苍 for the听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听as a result of an increase in听average interest-bearing liabilities.

Total interest income increased by $1.4 million听辞谤 7.4% to $20.5听尘颈濒濒颈辞苍 for the听three months ended March 31, 2025, from $19.1听尘颈濒濒颈辞苍 for the three months ended March 31, 2024. Interest income on loans, including fees, decreased听$289,000听辞谤 1.6% to $17.4听尘颈濒濒颈辞苍 for the听three months ended March 31, 2025, as compared to $17.7听尘颈濒濒颈辞苍 for the听three months ended March 31, 2024. The decrease in interest income on loans, including fees, resulted primarily from a听decline听in the average balance of loans receivable of $9.9听尘颈濒濒颈辞苍 or 0.8% to $1.24听产颈濒濒颈辞苍 for the听three months ended March 31, 2025,听as compared to $1.25听产颈濒濒颈辞苍 for the听three months ended March 31, 2024. Average yield on loans receivable was 5.67% for the听three months ended March 31, 2025,听unchanged year over year. Interest income on interest-bearing deposits with other banks increased by $338,000 or 51.6% to $993,000听for the听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听of听interest-bearing deposits with banks of $43.7听尘颈濒濒颈辞苍 or 80.7% to $97.8听尘颈濒濒颈辞苍 for the听three months ended March 31, 2025, as compared to $54.1听尘颈濒濒颈辞苍听for the same period in the prior year. Interest income on investment securities increased by $1.3 million听辞谤 231.0% to $1.9 million听for the听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听尘颈濒濒颈辞苍 or 117.2% to $151.6 million for the听three months ended March 31, 2025, as compared to $69.8听尘颈濒濒颈辞苍听for the same period in the prior year. The average yield on investment securities increased by 168听basis points to 4.90% for the听three months ended March 31, 2025, as compared to 3.22% for the same period in the prior year. Dividend income on FHLB听stock increased by听$63,000 or 40.1% to $220,000 for the听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%听for the听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听尘颈濒濒颈辞苍 or 9.5% to $11.8听尘颈濒濒颈辞苍 for the听three months ended March 31, 2025, from $10.8听尘颈濒濒颈辞苍 for the听three months ended March 31, 2024. The increase in interest expense occurred primarily as a result of听an increase in average balance of interest-bearing liabilities of $118.6听尘颈濒濒颈辞苍 or 11.0%, to $1.20听产颈濒濒颈辞苍 for the听three months ended March 31, 2025, from $1.08听产颈濒濒颈辞苍 for the听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听迟辞听3.99% for the听three months ended March 31, 2025, as compared to 4.01% for the听three months ended March 31, 2024. The increase in average balance of interest-bearing liabilities included a $85.3听尘颈濒濒颈辞苍 increase听in average interest-bearing deposit liabilities and a听$33.3听尘颈濒濒颈辞苍 increase听in average wholesale borrowings for the听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听first quarter of 2025, the Company recorded an听$83,000听provision for credit losses听as compared to a听$7,000 provision for credit losses for the same period in the prior year. Based on the results of the CECL model and management鈥檚 evaluation of both quantitative and qualitative factors for the听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听at March 31, 2025,听and听2024听were appropriate.

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

Non-interest income increased by $872,000 or 167.0% to $1.4 million听for the听three months ended March 31, 2025, from $522,000 for the听three months ended March 31, 2024. The increase in total non-interest income resulted primarily from an increase in other income of $764,000听as a result of a non-recurring gain of $778,000 on the sale of a Company听owned property听recorded in the first听quarter of 2025. Excluding this听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听three months ended March 31, 2025,听from $191,000 for the same period in the prior year, primarily due to an increase in loan听fees听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听尘颈濒濒颈辞苍 for the听three months ended March 31, 2025, compared to $7.2听尘颈濒濒颈辞苍 for the听three months ended March 31, 2024. Salaries and employee benefits increased by $238,000 or 5.3% to $4.7听尘颈濒濒颈辞苍 for the听three months ended March 31, 2025, as compared to $4.5听尘颈濒濒颈辞苍 for the听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听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听three months ended March 31, 2025, as compared to $912,000听for the听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听three months ended March 31, 2025,听as compared to $78,000 for the听three months ended March 31, 2024,听as a result of reduction in marketing consultant services. Data processing expense increased by $57,000 or 20.0% to $342,000 for the听three months ended March 31, 2025,听compared to $285,000 for the听three months ended March 31, 2024,听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听three months ended March 31, 2025,听from $195,000 for the听three months ended March 31, 2024,听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听three months ended March 31, 2025,听from $749,000 for the听three months ended March 31, 2024,听primarily due to minor increases in various components of other operating expenses.听Other operating expenses are primarily comprised of loan听related expenses, dues and subscriptions, digital banking expenses, sponsorships,听training and education, software maintenance and depreciation, and miscellaneous expenses. Management's focus continues to remain听on prudently managing its听operating expenses.

The income tax provision increased by $22,000听辞谤 5.8%听迟辞 $403,000 for the听three months ended March 31, 2025, from $381,000听for the听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.听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听尘颈濒濒颈辞苍 or 1.18% of gross loans at听March 31, 2025, as compared to $14.7听尘颈濒濒颈辞苍 or 1.19% of gross loans at December 31, 2024,听and $14.6 million or 1.18% at March 31, 2024. During the first quarter of听2025, the Company added a $13,000 provision to the allowance for credit losses and had net recoveries听of听$65,000.听叠ased on the results of the CECL model and management鈥檚 evaluation of both quantitative and qualitative factors during听the quarter, changes in the allowance for credit losses are adjusted accordingly.

The Bank had non-accrual loans totaling $37.9听尘颈濒濒颈辞苍 or 3.02% of gross loans at听March 31, 2025, as compared to $16.6听尘颈濒濒颈辞苍 or 1.34% of gross loans at听December 31, 2024. Non-accrual loans increased by $21.3听尘颈濒濒颈辞苍听辞谤 128.0% from听December 31, 2024,听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听2025.听A contract is in place to remediate this facility which is anticipated to close during the second quarter of听2025. The allowance for credit losses was 39.1% of non-accrual loans at听March 31, 2025, compared to 88.7%, at听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鈥檚 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 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 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥減roject,鈥� 鈥渟eek,鈥� 鈥渟trive,鈥� 鈥渢ry,鈥� or future or conditional verbs such as 鈥渃ould,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥渨ill,鈥� 鈥渨ould,鈥� 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鈥�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; inflation; customer acceptance of the Bank鈥�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.