First Commerce Bank Earns $2.9 Million and $7.1 Million for the Three and Six months Ended June 30, 2022

Jul 29th, 2022 15:57 EST

LAKEWOOD, N.J., July 29, 2022 /PRNewswire/ — First Commerce Bank (the “Bank”) (OTC: CMRB) today reported net income of $2.9 million and $7.1 million, respectively, for the three and six months ended June 30, 2022, as compared to $4.4 million and $8.7 million, respectively, for the three and six months ended June 30, 2021. Basic earnings per common share for the three and six months ended June 30, 2022, were $0.12 and $0.30 respectively, compared to $0.19 and $0.38 for the three and six months ended June 30, 2021.

The changes in net income for the 2022 periods compared to the 2021 periods primarily reflect greater allowance expense related to growth in the loan portfolio and increases in salary and benefits expense reflecting both increases in employee benefit expense and the impact of a new bonus plan designed to attract and retain employees in a very competitive market.

Regarding the performance of the Bank, President & CEO Donald Mindiak stated, “The Bank has engaged in a concerted effort to deploy the excess liquidity that was on our balance sheet at December 31, 2021 into higher yielding interest earning assets in the form of both loans and investment securities. This initiative has proven successful as we have realized growth in the loan and investment portfolios of $78.3 million and $40.4 million, respectively, year-to-date. As a result of the strong loan growth exhibited during this six-month period, an increase in the allowance for loan losses of approximately $512,000 was recorded. The Bank continues to produce competitive operating results, evidenced by our strong net interest margin, return on equity and efficiency ratios, and remains on track to grow our asset and core deposit base consistent with capital levels and as opportunities present themselves”.

Financial Highlights

  • Net interest margin increased by fifteen basis points to 4.06% for the second quarter of 2022 as compared to 3.91% for the second quarter of 2021 and increased by thirteen basis points to 4.05% year-to-date for 2022 as compared to 3.92% year-to-date for 2021.
  • Total yield on interest earning assets increased by four basis points to 4.24% for the second quarter of 2022 as compared to 4.20% for the second quarter of 2021 and decreased by one basis point to 4.24% year-to-date for 2022 as compared to 4.25% year-to-date for 2021.
  • The cost of interest-bearing liabilities decreased by nine basis points to 0.32% for the second quarter of 2022 compared to 0.41% for the second quarter of 2021 and decreased by fourteen basis points to 0.31% year-to-date for 2022 as compared to 0.45% year-to-date for 2021.
  • The efficiency ratio was 56.37% year-to-date for 2022 as compared to 47.24% year-to-date for 2021.
  • Loans receivable, net increased by $78.3 million or 8.6% to $987.4 million at June 30, 2022, as compared to $909.1 million at December 31, 2021.
  • The net loans to deposits ratio increased to 101.34% at June 30, 2022, from 96.87% at June 30, 2021.
  • Return on equity was 1.23% at June 30, 2022 compared to 1.60% at June 30, 2021. 

Balance Sheet Review

Total assets increased by $42.3 million or 3.7% to $1.18 billion at June 30, 2022 from $1.13 billion at December 31, 2021. The increase in total assets was mainly related to increases in investment securities and loans receivable, net, partially offset by a decrease in total cash and cash equivalents.

Total cash and cash equivalents decreased by $76.2 million or 67.2% to $37.1 million at June 30, 2022 from $113.3 million at December 31, 2021. This decrease was primarily due to the investment of excess liquidity into investment securities and loans receivable, net, previously discussed.

Loans receivable, net, increased by $78.3 million or 8.6% to $987.4 million at June 30, 2022 from $909.1 million at December 31, 2021. Total loan increases for the six months ended June 30, 2022 occurred primarily as a result of a $79.8 million increase in commercial mortgages and a $22.2 million increase in construction loans, partially offset by a $13.1 million decrease in SBA loans and a $7.2 million decrease in commercial loans. The allowance for loan losses increased by $512,000 to $18.2 million or 1.81% of gross loans at June 30, 2022 as compared to $17.7 million or 1.91% of gross loans at December 31, 2021.

Total investment securities increased by $40.4 million or 87.3% to $86.6 million at June 30, 2022 from $46.2 million at December 31, 2021. The increase in investment securities resulted primarily from investment security purchases totaling $51.1 million, partially offset by $9.2 million in mortgage-backed security amortization and $1.5 million in municipal bond maturities.

Deposit liabilities increased by $32.4 million or 3.4% to $974.3 million at June 30, 2022 from $941.9 million at December 31, 2021. The increase in total deposits occurred primarily as a result of a $12.2 million increase in non-interest-bearing deposits, an $8.8 million increase in money market deposits, a $6.0 million increase in time deposits, a $4.8 million increase savings deposits and a $1.6 million increase in NOW deposits, partially offset by a $983,000 decrease in interest checking deposits.

Stockholders’ equity increased by $7.9 million or 4.6% to $180.2 million at June 30, 2022 from $172.3 million at December 31, 2021. The increase in stockholders’ equity was primarily attributable to net income of $7.1 million for the six months ended June 30, 2022 and increases of $714,000 and $728,000 in common stock and additional paid in capital, respectively as a result of the exercise of certain stock options, partially offset by a decrease of $706,000 in other comprehensive income.

Three Months of Operations

Net interest income increased by $809,000 or 7.7% to $11.27 million for the three months ended June 30, 2022 from $10.46 million for the three months ended June 30, 2021.

Interest income increased by $634,000 or 5.6% to $12.0 million for the three months ended June 30, 2022 from $11.4 million for the three months ended June 30, 2021. The increase in interest income resulted primarily from an increase in the average balance of loans receivable, net of $62.6 million or 6.9% to $964.7 million for the three months ended June 30, 2022 compared to $902.1 million for the three months ended June 30, 2021 and an increase in the average balance of investment securities of $23.2 million or 42.5% to $77.9 million for the three months ended June 30, 2022 from $54.7 million for the three months ended June 30, 2021, partially offset by a $267,000 or 53.6% decrease in fees from loans to $231,000 for the three months ended June 30, 2022 from $498,000 for the three months ended June 30, 2021. The decrease in loan fees is primarily related to the reduction in fees received from the Paycheck Protection Program – (PPP) as the bulk of the Bank’s PPP loans were forgiven, and fees earned, in 2021.

Interest expense decreased by $175,000 or 18.6% to $768,000 for the three months ended June 30, 2022 from $943,000 for the three months ended June 30, 2021. The decrease in interest expense occurred primarily as a result of a decrease in the average cost of interest-bearing liabilities of nine basis points to 0.32% for the three months ended June 30, 2022 from 0.41% for the three months ended June 30, 2021, partially offset by an increase in average balance of deposit liabilities of $49.9 million or 5.4% to $974.6 million for the three months ended June 30, 2022 from $924.7 million for the three months ended June 30, 2021. The decrease in the average cost of interest-bearing liabilities resulted primarily from the persistent lower interest rate environment and the active management of liability pricing.

Net interest margin increased by fifteen basis points to 4.06% for the three months ended June 30, 2022 compared to 3.91% for the three months ended June 30, 2021. The increase in the net interest margin is primarily attributable an increase in the average balance of interest earning assets of $47.5 million or 4.4% to $1.124 billion for the three months ended June 30, 2022 compared to $1.077 billion for the three months ended June 30, 2021 and an increase of four basis points on the yield of average interest earning assets to 4.24% for the three months ended June 30, 2022 from 4.20% for the three months ended June 30, 2021.

Non-interest income increased by $225,000 or 224.1% to $326,000 for the three months ended June 30, 2022 from $101,000 for the three months ended June 30, 2021. The increase in total non-interest income resulted primarily from BOLI income of $165,000 for the three months ended June 30, 2022 from no such income for the three months ended June 30, 2021. The Bank made a $25.0 million BOLI purchase during the fourth quarter of 2021 which accounts for the lack of BOLI income for the three months ended June 30, 2021. This was partially offset by a decrease in service charges and fees of $48,000 or 23.5% to $156,000 for the three months ended June 30, 2022 from $204,000 for the three months ended June 30, 2021.

Non-interest expense increased by $1.1 million or 20.6% to $6.4 million for the three months ended June 30, 2022 compared to $5.3 million for the three months ended June 30, 2021. Salaries and employee benefits increased by $737,000 or 23.4% to $3.9 million for the three months ended June 30, 2022 as compared to $3.2 million for the three months ended June 30, 2021. The increase in salaries and employee benefits resulted primarily from a 27% year-over-year increase in employee benefits costs as well as increased salary expense. In an effort to both retain and attract qualified personnel, the Bank instituted an industry competitive bonus plan which was not in place in 2021. Occupancy and equipment expense increased by $66,000 or 8.8% to $815,000 for the three months ended June 30, 2022 as compared to $749,000 for the three months ended June 30, 2021. The increase in occupancy and equipment expense occurred primarily as a result of the renewal and increase in several service contracts. Other non-interest expense increased by $294,000 or 20.8% to $1.7 million for the three months ended June 30, 2022 from $1.4 million for the three months ended June 30, 2021. Other non-interest expense consists primarily of marketing, professional fees, data processing, FDIC assessments and other expenses. The increase in other non-interest expense occurred primarily as a result of an increase in other expenses of $347,000 or 55.7% to $970,000 for the three months ended June 30, 2022 from $623,000 for the three months ended June 30, 2021, partially offset by a decrease in professional fees of $149,000 or 29.1% to $361,000 for the three months ended June 30, 2022 from $510,000 for the three months ended June 30, 2021. The increase in other expenses resulted primarily from an increase in unfunded loan commitments.

The income tax provision decreased by $407,000 or 28.6% to $1.0 million for the three months ended June 30, 2022 from $1.4 million for the three months ended June 30, 2021. The decrease in the income tax provision resulted primarily from a decrease in earnings before income taxes of $1.9 million or 32.2% to $4.0 million for the three months ended June 30, 2022 from $5.8 million for the three months ended June 30, 2021.  

Six Months of Operations

Net interest income increased by $1.7 million or 8.2% to $22.3 million for the six months ended June 30, 2022 from $20.6 million for the six months ended June 30, 2021.

Interest income increased by $1.1 million or 5.0% to $23.7 million for the six months ended June 30, 2022 from $22.6 million for the six months ended June 30, 2021. The increase in interest income resulted primarily from an increase in the average balance of loans receivable of $60.4 million or 6.8% to $947.4 million for the six months ended June 30, 2022 compared to $887.0 million for the six months ended June 30, 2021 and an increase in the average balance of investment securities of $7.6 million or 13.4% to $64.5 million for the six months ended June 30, 2022 from $56.9 million for the six months ended June 30, 2021 and a $150,000 or 14.2% increase in fees from loans to $1.20 million for the six months ended June 30, 2022 from $1.06 million for the six months ended June 30, 2021.

Interest expense decreased by $554,000 or 27.2% to $1.48 million for the six months ended June 30, 2022 from $2.03 million for the six months ended June 30, 2021. The decrease in interest expense occurred primarily as a result of a decrease in the average cost of interest-bearing liabilities of fourteen basis points to 0.31% for the six months ended June 30, 2022 from 0.45% for the six months ended June 30, 2021, partially offset by an increase in average balance of deposit liabilities of $59.3 million or 6.5% to $965.2 million for the six months ended June 30, 2022 from $905.9 million for the six months ended June 30, 2021. The decrease in the average cost of interest-bearing liabilities resulted primarily from the persistent lower interest rate environment and the active management of liability pricing.

Net interest margin increased by thirteen basis points to 4.05% for the six months ended June 30, 2022 compared to 3.92% for the six months ended June 30, 2021. The increase in the net interest margin is primarily attributable an increase in the average balance of interest earning assets of $55.0 million or 5.2% to $1.11 billion for the six months ended June 30, 2022 compared to $1.06 billion for the six months ended June 30, 2022 partially offset by a decrease of one basis point on the yield of average interest earning assets to 4.24% for the six months ended June 30, 2022 from 4.25% for the six months ended June 30, 2021.

Non-interest income increased by $386,000 or 127.2% to $689,000 for the six months ended June 30, 2022 from $303,000 for the six months ended June 30, 2021. The increase in total non-interest income resulted primarily from BOLI income of $326,000 for the six months ended June 30, 2022 from no such income for the six months ended June 30, 2021. The Bank made a $25.0 million BOLI purchase during the fourth quarter of 2021 which accounts for the lack of BOLI income for the six months ended June 30, 2021. This was partially offset by a decrease in service charges and fees of $59,000 or 15.0% to $332,000 for the six months ended June 30, 2022 from $391,000 for the six months ended June 30, 2021.

Non-interest expense increased by $3.07 million or 31.2% to $12.93 million for the six months ended June 30, 2022 compared to $9.86 million for the six months ended June 30, 2021. Salaries and employee benefits increased by $2.0 million or 33.3% to $8.0 million for the six months ended June 30, 2022 as compared to $6.0 million for the six months ended June 30, 2021. The increase in salaries and employee benefits resulted primarily from a 27% year-over-year increase in employee benefits costs as well increased salary expense. In an effort to both retain and attract qualified personnel, the Bank instituted an industry competitive bonus plan which was not in place in 2021. Occupancy and equipment expense increased by $90,000 or 5.4% to $1.77 million for the six months ended June 30, 2022 as compared to $1.68 million for the six months ended June 30, 2021. The increase in occupancy and equipment expense occurred primarily as a result of the renewal and increase in several service contracts. Other non-interest expense increased by $972,000 or 45.4% to $3.11 million for the six months ended June 30, 2022 from $2.14 million for the six months ended June 30, 2021. Other non-interest expense consists primarily of marketing, professional fees, data processing, FDIC assessments and other expenses. The increase in other non-interest expense occurred primarily as a result of an increase in miscellaneous loan expense of $535,000 related to an increase in unfunded loan commitments due to the growth in the loan portfolio during 2022 from a credit of $146,000 for the six months ended June 30, 2021. FDIC Assessment increased by $201,000 or 152.7%. Marketing expense increased by $27,000 or 40.3% to $94,000 for the six months ended June 30, 2022 from $67,000 for the six months ended June 30, 2021. The increase in marketing expense occurred primarily as a result of a reconstitution of marketing efforts subsequent to a COVID related marketing hiatus.

The income tax provision decreased by $523,000 or 17.7% to $2.44 million for the six months ended June 30, 2022 from $2.96 million for the six months ended June 30, 2021. The decrease in the income tax provision resulted primarily from a decrease in earnings before income taxes of $2.0 million or 17.6% to $9.6 million for the six months ended June 30, 2022 from $11.6 million for the six months ended June 30, 2021.

Asset Quality

The allowance for loan losses increased by $512,000 or 2.9% and $1.2 million or 7.2% from December 31, 2021 and June 30, 2021, respectively to $18.2 million at June 30, 2022 from $17.7 million at December 31, 2021 and $17.0 million at June 30, 2021. The increase in the allowance for loan losses is primarily attributable to an increase in loans receivable, net of $78.3 million or 8.6% to $987.4 million at June 30, 2022 from $909.1 million at December 31, 2021 and $102.8 million or 11.6% from $884.6 million at June 30, 2021. The Bank had non-accrual loans totaling $13.6 million or 1.35% of gross loans at June 30, 2022 as compared to $8.8 million or 0.94% of gross loans at December 31, 2021 and $8.96 million or 0.99% of gross loans at June 30, 2021.

The allowance for loan losses was $18.2 million or 1.81% of gross loans at June 30, 2022 as compared to $17.7 million or 1.91% of gross loans at December 31, 2021 and $17.7 million or 1.96% of gross loans at June 30, 2021. The allowance for loan losses was 134.2% of non-accrual loans at June 30, 2022, 202.5% of non-accrual loans at December 31, 2021 and 197.1% of non-accrual loans at June 30, 2021.  

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. 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.firstcommercebank.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

June 30, 2022

(Unaudited)

June 30, 2022 vs.

December 31, 2021

June 30, 2021

(In thousands, except percentages)

June 30, 2022

December 31, 2021

June 30, 2021

Amount

%

Amount

%

Assets

Cash and Cash Equivalents:

   Cash on hand

$            1,541

$              1,736

$            1,978

$        (195)

-11.2 %

$     (437)

-22.1 %

   Interest bearing deposits in other banks

35,597

111,602

114,916

(76,005)

-68.1 %

(79,319)

-69.0 %

Total cash and cash equivalents

37,138

113,338

116,894

(76,200)

-67.2 %

(79,756)

-68.2 %

   Investment Securities HTM, at amortized cost

70,268

23,611

25,190

46,657

197.6 %

45,078

179.0 %

   Investment Securities AFS, at fair value

16,327

22,617

27,452

(6,290)

-27.8 %

(11,125)

-40.5 %

   Restricted stock

1,044

945

945

99

10.5 %

99

10.5 %

   Loans Rcvable, net of ALLL

987,396

909,143

884,594

78,253

8.6 %

102,802

11.6 %

   Premises and equipment

16,164

16,385

16,835

(221)

-1.3 %

(671)

-4.0 %

   Right-of-Use Asset

9,178

9,368

9,556

(190)

-2.0 %

(378)

-4.0 %

   Bank Owned Life Insurance

25,441

25,115

326

1.3 %

25,441

0.0 %

   Other Real Estate Owned

4,345

4,345

4,201

0.0 %

144

3.4 %

   Deferred tax asset

4,134

3,805

2,926

329

8.6 %

1,208

41.3 %

   Accrued interest receivable

4,032

4,433

5,213

(401)

-9.0 %

(1,181)

-22.7 %

   Other assets

1,266

1,332

1,289

(66)

-4.9 %

(23)

-1.8 %

Total Assets

$    1,176,733

$      1,134,437

$    1,095,095

$    42,296

3.7 %

$  81,638

7.5 %

Liabilities and Stockholders’ Equity

Liabilities

Deposits:

   Non-interest bearing

$        224,217

$         212,017

$        187,339

$    12,200

5.8 %

$  36,878

19.7 %

   Interest bearing

750,125

729,910

726,418

20,215

2.8 %

23,707

3.3 %

Total Deposits

974,342

941,927

913,757

32,415

3.4 %

60,585

6.6 %

Total Borrowings

0.0 %

0.0 %

Accrued Interest Payable

117

101

123

16

15.8 %

(6)

-4.9 %

Lease Liability

9,661

9,791

9,916

(130)

-1.3 %

(255)

-2.6 %

Other liabilities

12,442

10,318

7,238

2,124

20.6 %

5,204

71.9 %

Total Liabilities

22,220

20,210

17,277

2,010

9.9 %

4,943

28.6 %

Commitments and Contingencies

0.0 %

0.0 %

Stockholders’ Equity

   Preferred Stock

0.0 %

0.0 %

   Common Stock

47,346

46,632

46,391

714

1.5 %

955

2.1 %

   Additional paid-in capital

40,847

40,119

39,797

728

1.8 %

1,050

2.6 %

   Retained earnings

92,019

84,884

76,856

7,135

8.4 %

15,163

19.7 %

   Accumulated other comprehensive income

(41)

665

1,017

(706)

-106.2 %

(1,058)

-104.0 %

Total Stockholders’ Equity

180,171

172,300

164,061

7,871

4.6 %

16,110

9.8 %

Total Liabilities and Stockholders’ Equity

$    1,176,733

$      1,134,437

$    1,095,095

$    42,296

3.7 %

$  81,638

7.5 %

FIRST COMMERCE BANK

QTD Consolidated Income Statements

June 30, 2022

(Unaudited)

June 30, 2022 vs.

March 31, 2022

June 30, 2021

(In thousands, except percentages

and per share amounts)

June 30, 2022

March 31, 2022

June 30, 2021

Amount

%

Amount

%

Interest Income

   Loans, including fees

$                 11,357

$                 11,174

$                 10,964

$        183

1.6 %

$        393

3.6 %

   Investment securities – HTM

395

232

199

163

70.3 %

196

98.5 %

   Investment securities – AFS

121

232

194

(111)

-47.8 %

(73)

-37.8 %

   Interest-bearing deposits 

160

67

42

93

138.8 %

118

281.0 %

Total Interest Income

12,033

11,705

11,399

328

2.8 %

634

5.6 %

Interest Expense

   Deposits

768

713

943

55

7.7 %

(175)

-18.6 %

   Other borrowings

0.0 %

0.0 %

Total Interest Expense

768

713

943

55

7.7 %

(175)

-18.6 %

Net Interest Income

11,265

10,992

10,456

273

2.5 %

809

7.7 %

(Credit)/Provision for Loan Losses

1,216

(775)

(600)

1,991

-256.9 %

1,816

-302.7 %

Net Interest Income after ALLL

10,049

11,767

11,056

(1,718)

-14.6 %

(1,007)

-9.1 %

Non-Interest Income 

   Service charges and fees

156

176

204

(20)

-11.2 %

(48)

-23.5 %

   BOLI income

165

161

4

2.2 %

165

0.0 %

   Gain/(loss) on valuation of REO

3

(110)

(3)

-100.0 %

110

-100.0 %

   Other income

5

23

7

(18)

-78.3 %

(2)

-28.6 %

Total Non-Interest Income

326

363

101

(37)

-10.2 %

225

224.1 %

Non-Interest Expenses

   Salaries and employee benefits

3,893

4,162

3,156

(269)

-6.5 %

737

23.4 %

   Occupancy & equip. expense

815

953

749

(138)

-14.5 %

66

8.8 %

   Marketing

52

42

36

10

23.8 %

16

43.3 %

   Professional fees

361

441

510

(80)

-18.0 %

(149)

-29.1 %

   Data processing

177

181

183

(4)

-2.2 %

(6)

-3.1 %

   FDIC assessment

150

182

64

(32)

-17.6 %

86

134.4 %

   Other expenses

970

556

623

414

74.6 %

347

55.7 %

Total Non-Interest Expense

6,418

6,517

5,321

(98)

-1.5 %

1,098

20.6 %

Income before income tax provision

3,957

5,613

5,836

(1,656)

-29.5 %

(1,880)

-32.2 %

Income tax expense

1,018

1,417

1,425

(399)

-28.2 %

(407)

-28.6 %

Net Income

$                    2,939

$                    4,196

$                    4,411

$  (1,257)

-30.0 %

$  (1,473)

-33.4 %

Basic earnings per share

$                      0.12

$                      0.18

$                      0.19

$    (0.06)

-30.6 %

$    (0.07)

-35.1 %

Average shares outstanding

23,534,765

23,316,490

22,916,425

218,275

0.9 %

618,340

2.7 %

Fully diluted earnings per share

$                      0.12

$                      0.18

$                      0.19

$    (0.06)

-32.5 %

$    (0.07)

-34.9 %

Diluted shares outstanding

23,964,091

23,904,327

23,417,016

59,764

0.3 %

547,075

2.3 %

FIRST COMMERCE BANK

YTD Consolidated Income Statements

June 30, 2022

(Unaudited)

June 30, 2021

(In thousands, except percentages and per share amounts)

June 30, 2022

June 30, 2021

Amount

%

Interest Income

   Loans, including fees

$                 22,531

$                 21,704

$        827

3.8 %

   Investment securities – HTM

626

418

208

49.8 %

   Investment securities – AFS

353

401

(48)

-12.0 %

   Interest-bearing deposits 

227

85

142

167.1 %

Total Interest Income

23,737

22,608

1,129

5.0 %

Interest Expense

   Deposits

1,481

2,035

(554)

-27.2 %

   Other borrowings

0.0 %

Total Interest Expense

1,481

2,035

(554)

-27.2 %

Net Interest Income

22,256

20,573

1,683

8.2 %

(Credit)/Provision for Loan Losses

440

(600)

1,040

-173.4 %

Net Interest Income after ALLL

21,816

21,173

643

3.0 %

Non-Interest Income 

   Service charges and fees

332

391

(59)

-15.0 %

   BOLI income

326

326

0.0 %

   Gain on valuation of REO

3

(110)

113

-102.7 %

   Other income

28

23

5

21.7 %

Total Non-Interest Income

689

303

386

127.2 %

Non-Interest Expenses

   Salaries and employee benefits

8,055

6,043

2,012

33.3 %

   Occupancy & equip. expense

1,768

1,678

90

5.4 %

   Marketing

94

67

27

40.3 %

   Professional fees

803

773

30

3.9 %

   Data processing

358

354

4

1.1 %

   FDIC assessment

332

131

201

152.7 %

   Other expenses

1,525

815

710

87.1 %

Total Non-Interest Expense

12,935

9,861

3,074

31.2 %

Income before income tax provision

9,570

11,615

(2,045)

-17.6 %

Income tax expense

2,435

2,958

(523)

-17.7 %

Net Income

$                    7,135

$                    8,657

$  (1,522)

-17.6 %

Basic earnings per share

$                      0.30

$                      0.38

$    (0.08)

-20.3 %

Basic avg shares outstanding

23,426,230

22,943,225

483,005

2.1 %

Fully diluted earnings per share

$                      0.30

$                      0.37

$    (0.07)

-19.0 %

Fully diluted avg shares outstanding

23,855,556

23,443,816

411,740

1.8 %

First Commerce Bank

Financial Highlights & Ratios

As of June 30, 2022

Financial & Operating Ratios

 QTD 

 QTD 

YTD

YTD

6/30/2022

6/30/2021

6/30/2022

6/30/2021

Yields

Commercial Mortgages

4.50 %

4.83 %

4.61 %

4.87 %

Construction Loans

5.17 %

5.15 %

5.06 %

5.22 %

Commercial Loans

5.44 %

5.23 %

5.29 %

5.25 %

Consumer

4.08 %

3.71 %

3.96 %

3.57 %

Residential Mortgages

4.69 %

5.04 %

4.74 %

5.09 %

Home Equity

3.98 %

3.62 %

3.71 %

3.68 %

SBA Loans

5.69 %

4.26 %

6.42 %

4.50 %

Total Yield on Loans

4.66 %

4.82 %

4.75 %

4.88 %

DFB Interest Bearing

0.77 %

0.14 %

0.43 %

0.15 %

Securities

2.70 %

2.87 %

3.10 %

2.85 %

Total Yield on Interest Earning Assets

4.24 %

4.20 %

4.24 %

4.25 %

Cost of Funds

Non-interest Bearing

0.00 %

0.00 %

0.00 %

0.00 %

Interest Bearing

0.33 %

0.35 %

0.33 %

0.39 %

Money Market

0.37 %

0.37 %

0.36 %

0.42 %

Savings

0.34 %

0.37 %

0.34 %

0.42 %

Time Deposits

0.53 %

0.72 %

0.51 %

0.76 %

IRA’s

0.50 %

0.82 %

0.50 %

0.90 %

Brokered CD’s

0.00 %

0.00 %

0.00 %

0.00 %

Borrowed Funds

0.00 %

0.00 %

0.00 %

0.36 %

Total Cost of Funds

0.32 %

0.41 %

0.31 %

0.45 %

Equity & Returns

Common Stock (In Thousands)

23,673

23,196

23,673

23,196

Book Value Per Share

$          7.61

$          7.03

$          7.61

$          7.03

Market Value Per Share

$          6.57

$          5.60

$          6.57

$          5.60

Earnings Per Share (Basic)

$          0.12

$          0.15

$          0.30

$          0.37

Return on Avg Assets

1.00 %

1.60 %

1.23 %

1.60 %

Return on Avg Equity

6.55 %

13.12 %

7.92 %

10.55 %

Tangible Equity/Tangible Assets

15.31 %

14.89 %

15.31 %

14.89 %

Risk Based Capital Ratios

Tier 1 Leverage Capital Ratio

15.36 %

14.79 %

15.36 %

15.02 %

Common Equity Tier 1 Risk-Based Capital

16.52 %

18.72 %

16.52 %

18.73 %

Tier 1 Risk-Based Capital Ratio

16.52 %

18.72 %

16.52 %

18.73 %

Total Risk-Based Capital Ratio

17.78 %

19.98 %

17.78 %

19.99 %

Capital Conservation Buffer

9.78 %

11.98 %

9.78 %

11.86 %

Tier 1 Capital (In Thousands)

180,198

163,020

180,198

163,045

Tier 2 Capital (In Thousands)

193,912

174,001

193,912

174,025

Other Ratios

ALLL/Gross Loans

1.81 %

1.96 %

1.81 %

1.96 %

Total Investments/Total Assets

7.36 %

4.81 %

7.36 %

4.81 %

Net Loans/Total Assets

83.91 %

80.83 %

83.91 %

80.83 %

Net Loans/Total Deposits

101.34 %

96.87 %

101.34 %

96.87 %

Net Interest Margin

4.06 %

3.91 %

4.05 %

3.92 %

Interest Spread

3.92 %

3.79 %

3.93 %

3.80 %

Efficiency Ratio

55.37 %

50.40 %

56.37 %

47.24 %

Legal Lending Limit

29,087

26,104

29,087

26,104

SOURCE FIRST COMMERCE BANK

Link to Source

Recent Publications of First Commerce Bank Lakewood NJ

Leave a Comment

SOTD Membership

Register by Email

or
Already a member? Sign In