First Commerce Bank Reports Net Income of $3.35 Million for the First Quarter of 2023 and Declares a Quarterly Cash Dividend of $0.04 per Common Share

LAKEWOOD, NJ / ACCESSWIRE / April 25, 2023 / First Commerce Bank (the "Bank") (OTC PINK:CMRB) today reported net income of $3.35 million for the first quarter of 2023 as compared to $4.2 million for the first quarter of 2022. Basic earnings per common share for the first quarter of 2023 was $0.14 compared to $0.18 for the first quarter of 2022. The Board of Directors approved and declared a quarterly cash dividend of $0.04 per common share payable to shareholders on May 22, 2023, for shareholders of record as of May 8, 2023.

Regarding the performance of the Bank, President & CEO Donald Mindiak commented, "Balance sheet growth in the areas of cash and cash equivalents, loans receivable, net, and retail deposits from year-end levels has been encouraging. Recent industry events notwithstanding, the ability to attract quality credits as well as the retail and wholesale funding to support that growth bespeaks a sense of confidence in our vision, business acumen and risk management protocols to successfully navigate the current market uncertainty. Total interest income increased by $4.5 million or 38.8% to $16.2 million for the three months ended March 31, 2023 from $11.7 million for the three months ended March 31, 2022 which was offset by a $5.0 million increase in interest expense to $5.7 million for the three months ended March 31, 2023 from $713,000 for the three months ended March 31, 2022.

In addition, the migration to the Current Expected Credit Loss standard ("CECL") in conjunction with strong loan growth resulted in an additional provision for credit loss entry of $509,000 to appropriately account for the allowance for credit losses. Also due to a net decrease in unfunded commitments, a benefit for credit losses for unfunded commitments of $319,000 was recorded for the three months ended March 31, 2023. These entries amount to an increase of $190,000 being recorded in the provision for the three months ended March 31, 2023 as compared to a reversal from the provision of $775,000 for the three months ended March 31, 2022, resulting in an increase of $965,000 in the provision for the comparative quarterly periods. Non-interest income increased by $515,000 from the prior three-month period due primarily to a one-time benefit related to our Bank-Owned Life Insurance ("BOLI") investment. Non-interest expense increased 4.3% as compared to the first quarter of 2022, which is less that the rate of inflation as the management of non-interest expense continues to be an area of focus."

He continued, "Asset quality metrics continue to improve as Other Real Estate Owned ("OREO") balances of $4.0 million at year-end 2022 have all been sold, eliminating them from our balance sheet, and non-accrual loans decreased by $1.0 million during the first quarter of 2023 to $11.7 million, with a contract for sale for an additional $3.1 million non-accrual loan expected to close shortly. Lastly, the economic headwinds of persistent inflation, a greater possibility of a recession and the on-going turbulence within the banking industry remain as challenges we continue to address and overcome. Our strong capital position provides a sense of comfort that we possess the wherewithal to withstand these stress situations and continue to engage and execute, on behalf of our shareholders, those initiatives that build franchise and shareholder value."

Quarter End Financial Highlights

  • Loans receivable, net increased by $70.0 million or 6.4% from year-end 2022 primarily as a result of growth in commercial and construction loans.
  • Total interest income increased by $4.5 million or 38.8% from the first quarter of 2022 as a result of the growth in loans receivable, net, and investment securities.
  • Net interest margin was 3.33% at March 31, 2023 as compared to 4.04% at March 31, 2022.
  • Total deposits increased by $11.3 million or 1.1% during the first quarter of 2023 and $79.0 million year over year with a category breakdown at March 31, 2023 of 19.2% in non-interest bearing deposits, 4.6% in savings deposits, 24.7% in interest-bearing demand deposits and 51.5% in time deposits.
  • Return on average equity was 7.44% at March 31, 2023 as compared to 9.73% at March 31, 2022.
  • Return on average assets was 1.02% at March 31, 2023 as compared to 1.48% at March 31, 2022.

Balance Sheet Review

Total assets increased by $90.1 million or 7.0% to $1.38 billion at March 31, 2023 from $1.29 billion at December 31, 2022. The increase in total assets was primarily attributable to increases in cash and cash equivalent and loans receivable, net, funded by growth in retail deposits and wholesale borrowings, partially offset by a decrease in investment securities.

Total cash and cash equivalents increased by $23.4 million or 54.9% to $66.0 million at March 31, 2023 from $42.6 million at December 31, 2022. This increase was primarily due to an increase in Federal Home Loan Bank Advances during the quarter of $76.0 million to $135.0 million at March 31, 2023 from $59.0 million at December 31, 2022 and an increase in retail deposits of $11.3 million or 1.1% to $1.045 billion at March 31, 2023 from $1.034 billion at December 31, 2022.

Loans receivable, net, increased by $70.0 million or 6.4% to $1.17 billion at March 31, 2023 from $1.10 billion at December 31, 2022. Total loan increases for the quarter ended March 31, 2023 occurred primarily as a result of increases of $71.2 million in commercial mortgages and $2.5 million in construction loans, partially offset by a $4.3 million decrease in commercial loans. The allowance for credit losses increased by $783,000 to $18.6 million or 1.56% of gross loans at March 31, 2023 as compared to $17.8 million or 1.59% of gross loans at December 31, 2022.

Total investment securities decreased by $2.7 million or 3.3% to $77.0 million at March 31, 2023 from $79.7 million at December 31, 2022. The decrease in investment securities resulted primarily from $2.0 million in mortgage-backed security paydowns and $645,000 in municipal bond maturities. In addition, the after-tax unrealized gain on the available-for-sale portfolio increased by $71,000 due to the prevailing interest rate environment and its impact on the market value of those debt securities. Because the Bank does not intend to sell the investments and it is not more than likely than not that the Bank will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Bank does not consider those investments to be other-than-temporarily impaired at March 31, 2023.

Deposit liabilities increased by $11.3 million or 1.1% to $1.045 billion at March 31, 2023 from $1.034 billion at December 31, 2022. The increase in total deposits occurred primarily as a result of a $57.4 million increase in time deposits, partially offset by decreases of $17.6 million, $12.1 million, $9.3 million and $7.1 million in savings, money market, non-interest bearing and interest checking deposits, respectively. As a result of the Federal Reserves' efforts to reduce inflation through systematic short-term interest rate increases during 2022 and 2023, the Bank's deposit mix has shifted to be more heavily weighted in time deposits as opposed to core deposits. Through the first quarter of 2023, the Bank utilized its retail deposit growth and wholesale borrowings from the Federal Home Loan Bank of New York to fund loan demand. Wholesale borrowing balances increased by $76.0 million or 128.8% to $135.0 million at March 31, 2023 from $59.0 million at December 31, 2022.

The Bank has filed the necessary paperwork with the Federal Reserve to participate in the government's new program, the Bank Term Funding Program, ("BTFP"). The BTFP was created to support American businesses and households by making additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. The BTFP offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations (see 12 CFR 201.108(b)), such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. These assets will be valued at par. The BTFP will be an additional source of liquidity secured by high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress. At present, the Bank has not availed itself to this additional liquidity source.

Stockholders' equity increased by $2.6 million or 1.4% to $183.0 million at March 31, 2023 from $180.4 million at December 31, 2022. The increase in stockholders' equity was primarily attributable to net income of $3.35 million for the three months ended March 31, 2023, an increase of $19,000 in additional paid in capital, and an increase of $71,000 in accumulated other comprehensive income related to the mark-to-market valuation of the available-for-sale investment portfolio respectively, partially offset by a decrease of $943,000 in undivided profits related to the declaration and payment of the fourth quarter cash dividend during the first quarter of this year fiscal.

Quarterly Operational Review

Total interest income increased by $4.5 million or 38.8% to $16.2 million for the three months ended March 31, 2023 as compared to $11.7 million for the three months ended March 31, 2022. The increase in interest income resulted primarily from an increase in the average balance of loans receivable, net of $227.3 million or 25.1% to $1.13 billion for the three months ended March 31, 2023 compared to $905.4 million for the three months ended March 31, 2022 and an increase in the average balance of investment securities of $29.1 million or 58.9% to $78.5 million for the three months ended March 31, 2023 from $49.4 million for the three months ended March 31, 2022. Partially offsetting the increase in interest income was a decrease in loan fees of $795,000 or 81.5% to $181,000 for the three months ended March 31, 2023 from $975,000 for the three months ended March 31, 2022. The decrease in loan fees was primarily related to quarter-over-quarter decreases of $569,000 and $289,000 in prepayment penalty fee income and fees recognized from the Paycheck Protection Program (PPP) as the majority of the Bank's PPP loans were forgiven and fees earned in 2022 and 2021. These lower fees were partially offset by an increase in commercial loan fees of $56,000 or 65.7% to $142,000 for the three months ended March 31, 2023 as compared to $85,000 for the three months ended March 31, 2022.

Total interest expense increased by $5.0 million to $5.7 million for the three months ended March 31, 2023 from $713,000 for the three months ended March 31, 2022. The increase in interest expense occurred primarily as a result of an increase in the average cost of interest bearing liabilities to 2.07% for the three months ended March 31, 2023 from 0.30% for the three months ended March 31, 2022 and an increase in the average balance of interest bearing liabilities of $183.6 million or 24.9% to $922.1 million for the three months ended March 31, 2023 from $738.4 million for the three months ended March 31, 2022. The average balance of interest-bearing liabilities was broken down to a $113.2 million or 15.3% increase in interest bearing deposit liabilities and a $70.4 million increase in wholesale borrowings for the three months ended March 31, 2023. The Bank had no wholesale borrowings for the three months ended March 31, 2022. These were partially offset by an increase in the average yield on interest earning assets to 5.10% for the three months ended March 31, 2023 from 4.25% for the three months ended March 31, 2022 and an increase in the average balance of interest earning assets of $172.6 million or 15.6% to $1.28 billion for the three months ended March 31, 2023 from $1.1 billion for the three months ended March 31, 2022. The increases in the average balance of interest-bearing deposit liabilities and interest-bearing wholesale borrowings were used primarily to fund the loan growth previously discussed.

Net interest margin decreased by seventy-one basis points to 3.33% for the three months ended March 31, 2023 as compared to 4.04% for the three months ended March 31, 2022. The decrease in the net interest margin was primarily attributable to an increase in the average cost of interest-bearing liabilities to 2.07% for the three months ended March 31, 2023 from 0.30% for the three months ended March 31, 2022 and an increase in the average balance of interest-bearing liabilities to $922.0 million for the three months ended March 31, 2023 from $738.4 million for the three months ended March 31, 2022. These were partially offset by an increase in the average yield on interest earning assets to 5.10% for the three months ended March 31, 2023 from 4.25% for the three months ended March 31, 2022 and an increase in the average balance of interest earning assets to $1.28 billion for the three months ended March 31, 2023 from $1.10 billion for the three months ended March 31, 2022.

Non-interest income increased by $515,000 or 142.9% to $875,000 for the three months ended March 31, 2023 from $360,000 for the three months ended March 31, 2022. The increase in total non-interest income resulted primarily from an increase of $516,000 or 319.6% in BOLI income to $678,000 for the three months ended March 31, 2023 from $162,000 for the three months ended March 31, 2022. The increase resulted from a one-time benefit received on the Bank's investment in BOLI. This increase was partially offset by a decrease of $22,000 in other miscellaneous income over the comparative three-month time periods. All other variances within the non-interest income grouping were not material.

Non-interest expense increased by $280,000 or 4.3% to $6.79 million for the three months ended March 31, 2023 compared to $6.51 million for the three months ended March 31, 2022. Salaries and employee benefits increased by $107,000 or 2.6% to $4.27 million for the three months ended March 31, 2023 as compared to $4.16 million for the three months ended March 31, 2022. The increase in salaries and employee benefits resulted primarily from an increase in full-time equivalent employees to 166 at March 31, 2023 from 157 at March 31, 2022. Occupancy and equipment expense increased by $32,000 or 3.4% to $985,000 for the three months ended March 31, 2023 as compared to $953,000 for the three months ended March 31, 2022. Marketing expense increased by $49,000 or 118.3% to $91,000 for the three months ended March 31, 2023 from $42,000 for the three months ended March 31, 2022. Marketing expense increased as a result of the Bank utilizing resources to build our brand and attract retail deposits. Professional fees increased by $20,000 or 4.5% to $461,000 for the three months ended March 31, 2023 from $441,000 for the three months ended March 31, 2022 as a result of increased fees related to the Holding Company Reorganization application and the initiative to up list to the Nasdaq Capital Market exchange. Data processing costs increased by $38,000 or 20.9% to $218,000 for the three months ended March 31, 2023 from $181,000 for the three months ended March 31, 2022. Other expenses increased by $106,000 or 19.1% to $662,000 for the three months ended March 31, 2023 from $556,000 for the three months ended March 31, 2022. Other expenses is primarily comprised of miscellaneous loan expense, telephone, subscriptions, software maintenance and depreciation, office supplies and computer supplies. These increases were partially offset by a $133,000 or 73.4% decrease in FDIC assessment to $49,000 for the three months ended March 31, 2023 from $182,000 for the three months ended March 31, 2022.

The income tax provision decreased by $356,000 or 25.1% to $1.06 million for the three months ended March 31, 2023 from $1.42 million for the three months ended March 31, 2022. The decrease in the income tax provision resulted primarily from a decrease in earnings before income taxes of $1.2 million or 21.5%, which included additional non-taxable income of $510,000 for the one-time benefit from BOLI, to $4.4 million for the three months ended March 31, 2023 from $5.6 million for the three months ended March 31, 2022. The effective tax rate for the three months ended March 31, 2023 was 24.1% as compared to 25.3% for the three months ended March 31, 2022.

Asset Quality

The allowance for credit losses increased by $783,000 and $1.55 million respectively, to $18.56 million or 1.56% of gross loans at March 31, 2023 as compared to $17.78 million or 1.59% of gross loans at December 31, 2022 and $17.0 million or 1.82% of gross loans at March 31, 2022. Changes in the allowance for credit losses are calculated and adjusted quarterly and accordingly, relative to loan growth and quantitatively measured asset quality metrics. Total loans, gross, increased by $70.8 million or 6.3% and $254.7 million or 27.3% respectively, to $1.19 billion at March 31, 2023 from $1.12 billion at December 31, 2022 and $934.2 million at March 31, 2022. The Bank had non-accrual loans totaling $11.8 million or 0.99% of gross loans at March 31, 2023 as compared to $12.7 million or 1.14% of gross loans at December 31, 2022 and $12.2 million or 1.31% of gross loans at March 31, 2022. Quarter-over-quarter, non-accrual loans decreased by $988,000 or 7.8% to $11.7 million at March 31, 2023 from $12.7 million at December 31, 2022 and REO balances decreased by $4.0 million or 100% to no REO at March 31, 2023 from $4.0 million at December 31, 2022.

The allowance for credit losses was $18.56 million or 1.56% of gross loans at March 31, 2023, $17.78 million or 1.59% of gross loans at December 31, 2022 and $17.0 million or 1.82% of gross loans at March 31, 2022. The allowance for credit losses was 158.0% of non-accrual loans at March 31, 2023, 139.6% of non-accrual loans at December 31, 2022 and 139.4% of non-accrual loans at March 31, 2022.

About First Commerce Bank

Established in 2006 and headquartered in Lakewood, New Jersey, the Bank has offices in Allentown, Bordentown, Closter, Englewood, Fairfield, Freehold, Lakewood, Montvale, Robbinsville and Teaneck, New Jersey, with a new office in Jackson anticipated to open during the second quarter. The Bank provides businesses and individuals a wide range of loans, deposit products and retail and commercial banking services. For more information, please go to www.firstcommercebk.com.

Forward-Looking Statements

This release, like many written and oral communications presented by First Commerce Bank, 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 Bank, 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 the COVID-19 pandemic on the Bank, its operations and its customers, changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; 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.

FIRST COMMERCE BANK
Consolidated Balance Sheets
(Unaudited)





March 31, 2023 vs.




December 31, 2022 March 31, 2022
(In thousands, except percentages)
March 31,
2023
December 31, 2022 March 31,
2022
Amount % Amount %
Assets







Cash and cash equivalents:







Cash on hand
$ 1,804 $ 1,686 $ 1,962 $ 118 7.0 % $ (158 ) -8.1 %
Interest bearing deposits in other banks
64,159 40,899 102,418 23,260 56.9 % (38,259 ) -37.4 %
Total cash and cash equivalents
65,963 42,585 104,380 23,378 54.9 % (38,417 ) -36.8 %
Investment securities held to maturity, at amortized cost
64,135 65,788 54,289 (1,653 ) -2.5 % 9,846 18.1 %
Investment securities available for sale, at fair value
12,891 13,902 17,793 (1,011 ) -7.3 % (4,902 ) -27.6 %
Total investment securities
77,026 79,690 72,082 (2,664 ) -3.3 % 4,944 6.9 %
Restricted stock
7,119 3,699 945 3,420 92.5 % 6,174 653.3 %
Loans rcvable, net of ACL
1,170,335 1,100,300 917,184 70,035 6.4 % 253,151 27.6 %
Premises and equipment
15,672 15,725 16,339 (53 ) -0.3 % (667 ) -4.1 %
Right-of-use asset
9,810 9,913 9,273 (103 ) -1.0 % 537 5.8 %
Bank owned life insurance
25,189 25,781 25,276 (592 ) -2.3 % (87 ) -0.3 %
Other real estate owned
- 3,971 4,345 (3,971 ) -100.0 % (4,345 ) -100.0 %
Deferred tax asset
4,088 4,436 3,677 (348 ) -7.8 % 411 11.2 %
Accrued interest receivable
5,216 4,638 3,881 578 12.5 % 1,335 34.4 %
Other assets
1,813 1,388 1,401 425 30.6 % 412 29.4 %
Total assets
$ 1,382,231 $ 1,292,126 $ 1,158,783 $ 90,105 7.0 % $ 223,448 19.3 %
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing
$ 200,391 $ 209,680 $ 228,701 $ (9,289 ) -4.4 % $ (28,310 ) -12.4 %
Interest bearing
845,083 824,520 737,795 20,563 2.5 % 107,288 14.5 %
Total Deposits
1,045,474 1,034,200 966,496 11,274 1.1 % 78,978 8.2 %
Borrowings
135,000 59,000 - 76,000 128.8 % 135,000 0.0 %
Accrued interest payable
1,649 993 100 656 66.1 % 1,549 1549.0 %
Lease liability
10,381 10,453 9,728 (72 ) -0.7 % 653 6.7 %
Other liabilities
6,750 7,090 6,494 (340 ) -4.8 % 256 3.9 %
Total liabilities
1,199,254 1,111,736 982,818 87,518 7.9 % 216,436 22.0 %
Commitments and contingencies
- - - - - - -
Stockholders' equity
Preferred stock
- - - - - - -
Common stock
47,570 47,570 46,632 - 0.0 % 938 2.0 %
Additional paid-in capital
41,041 41,022 40,144 19 0.0 % 897 2.2 %
Retained earnings
94,604 92,107 89,080 2,497 2.7 % 5,524 6.2 %
Accumulated other comprehensive (loss) income
(238) (309) 109 71 -23.0 % (347 ) -318.3 %
Total stockholders' equity
182,977 180,390 175,965 2,587 1.4 % 7,012 4.0 %
Total liabilities and stockholders' equity
$ 1,382,231 $ 1,292,126 $ 1,158,783 $ 90,105 7.0 % $ 223,448 19.3 %

FIRST COMMERCE BANK
Consolidated Income Statements
For the three months ended March 31, 2023 and 2022
(Unaudited)




Variance
(In thousands, except percentages and per share amounts)
March 31, 2023 March 31, 2022 Amount %
Interest Income




Loans, including fees
$ 15,182 $ 11,174 $ 4,008 35.9 %
Investment securities held to maturity
451 232 219 94.5 %
Investment securities available for sale
100 232 (132 ) -56.8 %
Interest-bearing deposits
511 67 444 658.2 %
Total interest income
16,244 11,705 4,539 38.8 %
Interest expense
Deposits
4,876 713 4,163 583.9 %
Borrowings
852 - 852 0.0 %
Total interest expense
5,728 713 5,015 703.5 %
Net interest income
10,516 10,992 (476 ) -4.3 %
Provision (benefit) for credit losses
509 (775 ) 1,284 -165.6 %
Benefit for unfunded commitments for credit losses
(319 ) - (319 ) 0.0 %
Total provision (benefit) for credit losses and
unfunded commitments for credit losses
190 (775 ) 965 -124.5 %
Net interest income after provision (benefit) for
credit losses
10,326 11,767 (1,441 ) -12.2 %
Non-interest income
Service charges and fees
188 167 21 12.6 %
Bank owned life insurance income
678 162 516 319.6 %
Other income
9 31 (22 ) -71.0 %
Total non-interest income
875 360 515 142.9 %
Non-Interest Expenses
Salaries and employee benefits
4,269 4,162 107 2.6 %
Occupancy and equipment expense
985 953 32 3.4 %
Marketing
91 42 49 118.3 %
Professional fees
461 441 20 4.5 %
Data processing
218 180 38 21.1 %
(Gain)/loss on valuation of OREO
59 (2 ) 61 -2543.3 %
FDIC assessment
49 182 (133 ) -73.3 %
Other expenses
662 556 106 19.1 %
Total non-interest expenses
6,794 6,514 280 4.3 %
Income before income taxes
4,407 5,613 (1,206 ) -21.5 %
Income tax expense
1,061 1,417 (356 ) -25.1 %
Net income
$ 3,346 $ 4,196 $ (850 ) -20.3 %

Earnings per common share - Basic
$ 0.14 $ 0.18 $ (0.04 ) 22.2 %
Earnings per common share - Diluted
0.14 0.18 (0.04 ) -22.2 %

Weighted average shares outstanding - Basic
23,785,490 23,316,490 469,000 2.0 %
Weighted average shares outstanding - Diluted
24,164,148 23,676,020 488,128 2.1 %

First Commerce Bank
Financial Highlights & Ratios
As of March 31, 2023 and 2022
(Unaudited)

Financial & Operating Ratios
QTD
3/31/2023
QTD
3/31/2022
YTD
3/31/2023
YTD
3/31/2022
Yields




Commercial Mortgages
4.73 % 4.73 % 4.73 % 4.73 %
Construction Loans
8.97 % 4.73 % 8.97 % 4.73 %
Commercial loans
7.37 % 5.15 % 7.37 % 5.15 %
Consumer
3.71 % 3.84 % 3.71 % 3.84 %
Residential Mortgages
4.80 % 4.78 % 4.80 % 4.78 %
Home Equity
6.52 % 3.46 % 6.52 % 3.46 %
SBA Loans
7.36 % 7.08 % 7.36 % 7.08 %
Total Yield on Loans
5.28 % 4.84 % 5.28 % 4.84 %
DFB Interest Bearing
4.59 % 0.21 % 4.59 % 0.21 %
Securities
2.81 % 3.75 % 2.81 % 3.75 %
Total Yield on Interest Earning Assets
5.10 % 4.25 % 5.10 % 4.25 %
Cost of Funds




Non-interest bearing
0.00 % 0.00 % 0.00 % 0.00 %
Interest bearing
0.60 % 0.33 % 0.60 % 0.33 %
Money market
1.85 % 0.35 % 1.85 % 0.35 %
Savings
0.33 % 0.34 % 0.33 % 0.34 %
Time Deposits
2.98 % 0.49 % 2.98 % 0.49 %
IRA's
2.06 % 0.49 % 2.06 % 0.49 %
Brokered CD's
0.00 % 0.00 % 0.00 % 0.00 %
Borrowings
4.91 % 0.00 % 4.91 % 0.00 %
Total Cost of Funds
2.07 % 0.30 % 2.07 % 0.30 %
Risk Based Capital Ratios




Tier 1 leverage capital ratio
13.83 % 15.29 % 13.83 % 15.29 %
Common equity tier 1 risk-based capital ratio
14.47 % 17.58 % 14.47 % 17.58 %
Tier 1 risk-based capital ratio
14.47 % 17.58 % 14.47 % 17.58 %
Total risk-based capital ratio
15.72 % 18.84 % 15.72 % 18.84 %
Capital conservation buffer
7.72 % 10.84 % 7.72 % 10.84 %
Tier 1 capital (in thousands)
$ 183,204 $ 175,842 $ 183,204 $ 175,842
Tier 2 capital (in thousands)
$ 199,084 $ 188,415 $ 199,084 $ 188,415
Other Ratios




ALLL/Gross loans
1.56 % 1.82 % 1.56 % 1.82 %
Total investments/Total assets
5.57 % 6.22 % 5.57 % 6.22 %
Net loans/Total assets
84.67 % 79.15 % 84.67 % 79.15 %
Net loans/Total deposits
111.94 % 95.31 % 111.94 % 95.31 %
Net interest margin
3.33 % 4.04 % 3.33 % 4.04 %
Interest spread
3.03 % 3.95 % 3.03 % 3.95 %
Efficiency ratio
59.44 % 57.39 % 59.44 % 57.39 %
Legal lending limit
$ 29,863 $ 28,262 $ 29,863 $ 28,262
First Commerce Bank
Selected Quarterly Financial Data
(Unaudited)

As of and for the quarters ended
(In thousands, except per share data)
3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Summary earnings:





Interest income
$ 16,244 $ 15,289 $ 13,941 $ 12,032 $ 11,705
Interest expense
5,728 3,520 1,599 768 713
Net interest income
10,516 11,769 12,342 11,264 10,992
Provision (benefit) for credit losses
190 (114 ) (685 ) 1,216 (775 )
Net interest income after provision (benefit) for credit losses
10,326 11,883 13,027 10,048 11,767
Non-interest income
875 411 406 326 363
Non-interest expenses
6,794 7,156 6,273 6,418 6,517
Income before income tax expense
4,407 5,138 7,160 3,956 5,613
Income tax expense
1,061 1,127 1,712 1,018 1,417
Net income
$ 3,346 $ 4,011 $ 5,448 $ 2,938 $ 4,196
Per share data:
Net income per common share - basic
$ 0.14 $ 0.17 $ 0.23 $ 0.12 $ 0.18
Net income per common share - diluted
0.14 0.17 0.23 0.12 0.18
Cash dividends paid per common share
0.04 0.04 0.35 - -
Book value at period end
7.69 7.58 7.45 7.61 7.55
Shares outstanding at period end
23,785 23,785 23,785 23,673 23,316
Weighted average shares outstanding - basic
23,785 23,785 23,743 23,535 23,316
Weighted average shares outstanding - diluted
24,164 24,176 24,124 23,970 23,773
Balance sheet data (at period end):
Total assets
$ 1,382,231 $ 1,292,127 $ 1,249,389 $ 1,176,733 $ 1,158,783
Securities, available for sale
12,891 13,902 14,371 16,327 17,793
Securities, held to maturity
64,135 65,788 69,736 70,268 54,289
Total loans
1,188,898 1,118,081 1,082,210 1,005,640 934,193
Allowance for credit losses
(18,563 ) (17,781 ) (17,652 ) (18,245 ) (17,009 )
Total deposits
1,045,473 1,034,200 1,015,916 979,285 966,496
Shareholders' equity
182,977 180,390 177,246 180,171 175,965
Common cash dividends
951 951 8,325 - -
Selected performance ratios:
Return on average total assets
1.02 % 1.27 % 1.77 % 1.00 % 1.48 %
Return on average shareholders' equity
7.44 % 8.93 % 11.92 % 6.57 % 9.73 %
Dividend payout ratio (1)
28.42 % 23.71 % 152.81 % 0.00 % 0.00 %
Net interest margin
3.33 % 3.93 % 4.28 % 4.06 % 4.04 %
Non-interest income to average assets
0.27 % 0.13 % 0.13 % 0.11 % 0.13 %
Non-interest expenses to average assets
2.08 % 2.25 % 2.04 % 2.19 % 2.30 %
Asset quality ratios:
Non-performing loans to total assets
0.99 % 1.14 % 1.61 % 1.35 % 1.31 %
Non-performing assets to total assets
0.85 % 1.29 % 1.71 % 1.52 % 1.43 %
Allowance for credit losses to non-performing loans
158.04 % 139.63 % 101.25 % 134.23 % 139.42 %
Allowance for credit losses to total loans
1.56 % 1.59 % 1.63 % 1.81 % 1.82 %
Net recoveries (charge-offs) to average loans
0.01 % -0.15 % 0.00 % 0.00 % 0.01 %
Liquidity and capital ratios:
Average loans to average deposits
109.33 % 108.36 % 104.43 % 99.02 % 96.80 %
Total shareholders' equity to total assets
13.24 % 13.96 % 14.19 % 15.31 % 15.19 %
Total capital to risk-weighted assets
15.72 % 16.23 % 16.44 % 17.78 % 18.84 %
Tier 1 capital to risk-weighted assets
14.47 % 14.97 % 15.19 % 16.52 % 17.58 %
Common equity tier 1 capital ratio to risk-weighted assets
14.47 % 14.97 % 15.19 % 16.52 % 17.58 %
Tier 1 leverage ratio
13.83 % 14.33 % 14.56 % 15.36 % 15.29 %

(1) Dividend payout ratio is calculated by dividing dividends paid by net income.

Contact:

Donald Mindiak David J. Onderko
President and Chief Executive Officer SVP & Chief Financial Officer
dmindiak@firstcommercebk.com donderko@firstcommercebk.com

SOURCE: First Commerce Bank



View source version on accesswire.com:
https://www.accesswire.com/750994/First-Commerce-Bank-Reports-Net-Income-of-335-Million-for-the-First-Quarter-of-2023-and-Declares-a-Quarterly-Cash-Dividend-of-004-per-Common-Share

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.