First Commerce Bancorp, Inc. Reports Second Quarter and Year-to-Date 2025 Results

Rhea-AI Summary

First Commerce Bancorp (OTC: CMRB) reported strong Q2 2025 results with net income of $1.3 million for the quarter and $3.0 million year-to-date, up from $1.1 million and $2.2 million respectively in 2024. The bank demonstrated significant growth with total loans increasing 11.1% to $1.38 billion and deposits rising 6.2% to $1.25 billion.

Key metrics showed improvement with net interest margin increasing to 2.47%, up from 2.38% year-over-year. The bank successfully resolved a $21.0 million non-accrual loan in Q2, improving asset quality. Book value per share increased to $8.51, and the company maintained an active share repurchase program, buying back 904,000 shares at an average price of $6.23.

[ "Net income increased 18.2% to $1.3M in Q2 2025 vs $1.1M in Q2 2024", "Total loans grew 11.1% to $1.38B from December 2024", "Total deposits increased 6.2% to $1.25B from December 2024", "Net interest margin improved to 2.47%, up 9 basis points YoY", "Successfully resolved $21M non-accrual loan issue from previous quarter", "Book value per share increased to $8.51 from $8.19 YoY" ]

Positive

• None.

Negative

• Non-interest expenses increased 8.0% to $7.8M YoY
• FDIC insurance assessment rose 52.6% to $267,000
• Stockholders' equity decreased by $1.3M or 0.7% to $171.0M from December 2024
• Cash and cash equivalents decreased by 49.0% to $67.6M from December 2024

LAKEWOOD, N.J., July 29, 2025 (GLOBE NEWSWIRE) -- First Commerce Bancorp, Inc. (the “Company”), (OTC: CMRB), the holding company for First Commerce Bank (the “Bank”), today reported net income of $1.3 million and $3.0 million for the three and six months ended June 30, 2025, respectively, as compared to $1.1 million and $2.2 million for the three and six months ended June 30, 2024, respectively. Basic earnings per common share for the three and six months ended June 30, 2025, were $0.07 and $0.15, respectively, compared to $0.05 and $0.10 for the three and six months ended June 30, 2024, respectively.

President & CEO Donald Mindiak commented, “We are encouraged by the balance sheet growth that we have achieved through the first six months of the year. Prudent loan underwriting, coupled with systematic investment portfolio activity has spearheaded growth in the loan portfolio of $137.1 million or 11.1% and $67.7 million or 60.4% growth in the investment portfolio during the semi-annual period ended June 30, 2025, while continuing to manage our liquidity and allowance levels at prudent levels. Funding for this growth has occurred through a combination of retail deposit growth as well as the usage of several wholesale funding sources. Since a material portion of the loan growth occurred late in the second quarter, we anticipate that the full operational effect of that growth will manifest itself in the operating statement through the balance of 2025. We are heartened by the incremental improvement of our profitability metrics and anticipate continued improvement through the end of the year. With a strong loan pipeline having solid credits at attractive spreads, we will continue to employ disciplined credit-risk management practices and conservative underwriting standards. Our goals remain steadfast in delivering exceptional customer service and growing franchise and shareholder value.”

Continuing, Mr. Mindiak remarked that, “Last quarter we reported that one large loan of $21.0 million was placed on non-accrual. We are pleased to report that this loan was successfully resolved in the second quarter, thereby improving our asset quality in the quarter. While a degree of uncertainty still exists due to the implementation of tariffs, as a community bank we have not seen any adverse effect on our credit quality.”

Financial Highlights

• Total interest income increased by $1.9 million or 9.8% for the second quarter of 2025 compared to the second quarter of 2024 as a result of the growth in average interest-earning assets year over year.
  
  
• Total interest expense increased by $648,000 or 5.7% for the second quarter of 2025 compared to the second quarter of 2024 as a result of the growth in interest-bearing liabilities.
  
  
• Total loans increased by $137.1 million or 11.1% to $1.38 billion at June 30, 2025, compared to $1.24 billion at December 31, 2024.
  
  
• Total deposits increased by $72.4 million or 6.2% to $1.25 billion at June 30, 2025, compared to $1.17 billion at December 31, 2024.
  
  
• The annualized return on average total assets increased by three basis points to 0.33% at June 30, 2025, compared to 0.30% at June 30, 2024.
  
  
• The annualized return on average shareholders’ equity increased by sixty-three basis points to 3.10% at June 30, 2025, compared to 2.47% at June 30, 2024.
  
  
• Book value per common share increased by $0.32 to $8.51 at June 30, 2025, compared to $8.19 at June 30, 2024.
  
  
• Net interest margin increased fourteen basis points on a linked quarter basis to 2.47% as of June 30, 2025, from 2.33% as of March 31, 2025, and increased nine basis points from 2.38% at June 30, 2024.

Balance Sheet Review

Total assets increased by $138.5 million or 8.9% to $1.69 billion at June 30, 2025, from $1.55 billion at December 31, 2024. The increase in total assets was primarily related to increases in total investment securities and total loans receivable, partially offset by a decrease in cash and cash equivalents during the six months ended June 30, 2025.

Total cash and cash equivalents decreased by $64.9 million or 49.0% to $67.6 million at June 30, 2025, from $132.5 million at December 31, 2024. This decrease was primarily due to funding of loan closings and the purchases of investment securities during the six months ended June 30, 2025.

Total investment securities increased by $67.7 million or 60.4% to $179.9 million at June 30, 2025, from $112.2 million at December 31, 2024. The increase in investment securities resulted primarily from $77.9 million in purchases of investment securities, partially offset by $1.3 million in redemptions and $8.9 million in investment securities amortization.

Total loans receivable, net of allowance for credit losses increased by $136.6 million or 11.2% to $1.36 billion at June 30, 2025, from $1.22 billion at December 31, 2024. Commercial mortgage loans, and construction loans increased $120.1 million and $23.3 million, respectively, partially offset by decreases in commercial loans, residential loans and home equity loans of $1.0 million, $3.6 million and $2.3 million, respectively. The allowance for credit losses increased by $464,000 to $15.2 million or 1.11% of gross loans at June 30, 2025, as compared to $14.8 million or 1.19% of gross loans at December 31, 2024.

Total deposits increased $72.4 million or 6.2% to $1.25 billion at June 30, 2025, from $1.17 billion at December 31, 2024. Within the components of total deposits, time deposits increased $49.3 million, savings deposits increased $21.1 million, NOW deposits increased $6.5 million, and non-interest-bearing demand deposits increased $13.9 million, partially offset by a decrease of $18.4 million in money market account deposits. As an augmentation to deposit growth, Federal Home Loan Bank advances increased by $62.5 million or 35.7% to $237.5 million at June 30, 2025 from $175.0 million at December 31, 2024 which assisted in the facilitation of the loan growth discussed previously.

Stockholders’ equity decreased by $1.3 million or 0.7% to $171.0 million at June 30, 2025, from $172.3 million at December 31, 2024. The decrease in stockholders’ equity was primarily due to $5.7 million in repurchases of common stock, offset by increases of $3.0 million in retained earnings and $1.6 million in additional paid-in-capital. During the six months ended June 30, 2025, the Company repurchased 904,000 shares for approximately $5.6 million, or a weighted average price of approximately $6.23 per share.

Three Months of Operations

Net interest income increased by $1.3 million or 15.6% to $9.6 million for the three months ended June 30, 2025, from $8.3 million for the three months ended June 30, 2024. The increase in net interest income was primarily due to an increase in total interest income of $1.9 million as a result of an increase in average interest earning assets, partially offset by an increase in total interest expense of $648,000 as a result of an increase in average interest-bearing liabilities.

Total interest income increased by $1.9 million or 9.8% to $21.7 million for the three months ended June 30, 2025, from $19.8 million for the three months ended June 30, 2024. Interest income on loans, including fees, increased $462,000 or 2.6% to $18.4 million for the three months ended June 30, 2025, as compared to $18.0 million for the three months ended June 30, 2024. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $42.9 million or 3.4% to $1.29 billion for the three months ended June 30, 2025, as compared to $1.25 billion for the three months ended June 30, 2024. Average yield on loans receivable was 5.71% for the three months ended June 30, 2025, decreasing seven basis points year over year. Interest income on investment securities increased by $1.6 million or 224.4% to $2.3 million for the three months ended June 30, 2025, as compared to $712,000 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 $103.3 million or 134.7% to $180.0 million for the three months ended June 30, 2025, as compared to $76.7 million for the same period in the prior year. The average yield on investment securities increased by 142 basis points to 5.13% for the three months ended June 30, 2025, as compared to 3.71% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $117,000 or 12.3% to $828,000 for the three months ended June 30, 2025, as compared to $945,000 for the same period in the prior year. This decrease resulted primarily from a decline in average yield of eighty-four basis points to 4.19% for the three months ended June 30, 2025, as compared to 5.03% for the same period in the prior year. The average balance of interest-bearing deposits with banks increased by $3.8 million or 5.1% to $79.3 million for the three months ended June 30, 2025, as compared to $75.5 million for the same period in the prior year.

Total interest expense increased by $648,000 or 5.7% to $12.1 million for the three months ended June 30, 2025, from $11.5 million for the three months ended June 30, 2024. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $138.1 million or 12.4%, to $1.25 billion for the three months ended June 30, 2025, from $1.12 billion for the three months ended June 30, 2024. Despite the increase in average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased to 3.87% for the three months ended June 30, 2025, as compared to 4.12% for the three months ended June 30, 2024. The increase in average balance of interest-bearing liabilities included a $85.5 million increase in average interest-bearing deposit liabilities and a $52.6 million increase in average wholesale borrowings for the three months ended June 30, 2025. The increase in interest-bearing liabilities was primarily used to facilitate asset growth and maintain an increased level of liquidity consistent with regulatory guidance.

During the second quarter of 2025, the Company recorded a $712,000 provision for credit losses as compared to a $300,000 provision for credit losses for the same period in the prior year. The increase in provision for credit losses for the second quarter of 2025, was primarily due to the increase in gross loans and management’s evaluation of both quantitative and qualitative factors which impact the CECL model calculations. The Company recorded a $401,000 provision for credit losses on loans, a $271,000 provision for credit losses for unfunded commitments and a $40,000 provision for credit losses on corporate securities held-to-maturity. Management believes that the allowance for credit losses on loans and investment securities at June 30, 2025, and 2024 were appropriate.

Net interest margin increased by nine basis points to 2.47% for the three months ended June 30, 2025, compared to 2.38% for the three months ended June 30, 2024. The increase in the net interest margin was primarily due to a decrease in the average cost of interest-bearing liabilities to 3.87% for the three months ended June 30, 2025 from 4.12% for the three months ended June 30, 2024, partially offset by a slight decrease in the yield on average earning assets of six basis points to 5.58% for the three months ended June 30, 2025 from 5.64% for the three months ended June 30, 2024.

Non-interest income increased by $24,000 or 4.3% to $586,000 for the three months ended June 30, 2025, from $562,000 for the three months ended June 30, 2024. The increase in total non-interest income resulted primarily from an increase in service charges and fees of $60,000, partially offset by a decrease of $44,000 in other income.

Non-interest expense increased by $576,000 or 8.0% to $7.8 million for the three months ended June 30, 2025, compared to $7.2 million for the three months ended June 30, 2024. Salaries and employee benefits increased by $194,000 or 4.3% to $4.7 million for the three months ended June 30, 2025, as compared to $4.5 million for the three months ended June 30, 2024. The increase in salaries and employee benefits resulted primarily due to a slight increase in headcount necessary to assist in the growth of the Bank and annual merit increases, partially offset by a decrease in health insurance costs year over year. Occupancy and equipment expense increased by $171,000 or 18.7% to $1.1 million for the three months ended June 30, 2025, as compared to $913,000 for the three months ended June 30, 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 $38,000 or 34.5% to $74,000 for the three months ended June 30, 2025, as compared to $112,000 for the three months ended June 30, 2024, as a result of reduction in marketing consultant services. Professional fees decreased $47,000 or 9.7% to $427,000 for the three months ended June 30, 2025  as compared to $474,000 for the three months ended June 30, 2024 , primarily due to a reduction in audit and consulting fees. Data processing expense increased by $33,000 or 10.9% to $333,000 for the three months ended June 30, 2025, compared to $300,000 for the three months ended June 30, 2024, primarily as a result of adding new services and annual cost increases. FDIC insurance assessment increased $92,000 or 52.6% to $267,000, for the three months ended June 30, 2025, from $175,000 for the three months ended June 30, 2024, as a result of an increase in the assessment rate. Other operating expenses increased by $171,000 or 22.2% to $940,000 for the three months ended June 30, 2025, from $769,000 for the three months ended June 30, 2024, primarily due to increases in various components of other operating expenses. Other operating expenses are primarily comprised of loan related expenses, dues and subscriptions, digital banking expenses, sponsorships, training and education, postage, meals and entertainment, software maintenance and depreciation, and miscellaneous expenses. Management's focus continues to remain on prudently managing its operating expenses, while executing on our organic growth initiative.

The income tax provision increased by $98,000 or 33.9% to $385,000 for the three months ended June 30, 2025, from $287,000 for the three months ended June 30, 2024. The increase in the income tax provision resulted primarily from an increase in the pre-tax income year over year of $334,000 or 24.3% to $1.7 million for the three months ended June 30, 2025 from $1.4 million for the three months ended June 30, 2024. The effective tax rate for the quarter ended June 30, 2025, was 22.5% compared to 20.9% for the quarter ended June 30, 2024. The effective tax yield for the quarter ended June 30, 2024, was impacted by a reduction in New York state tax apportionment.

Six Months of Operations

Net interest income increased by $1.7 million or 10.1% to $18.3 million for the six months ended June 30, 2025, from $16.6 million for the six months ended June 30, 2024. The increase in net interest income was primarily due to an increase in total interest income of $3.4 million as a result of an increase in average interest earning assets, partially offset by an increase in total interest expense of $1.7 million as a result of an increase in average interest-bearing liabilities.

Total interest income increased by $3.4 million or 8.6% to $42.2 million for the six months ended June 30, 2025, from $38.8 million for the six months ended June 30, 2024. Interest income on loans, including fees, increased $172,000 or 0.5% to $35.8 million for the six months ended June 30, 2025, as compared to $35.6 million for the six months ended June 30, 2024. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $16.7 million or 1.3% to $1.27 billion for the six months ended June 30, 2025, as compared to $1.25 billion for the six months ended June 30, 2024. Average yield on loans receivable was 5.69% for the six months ended June 30, 2025, a decrease of three basis points year over year. Interest income on interest-bearing deposits with other banks increased by $222,000 or 13.9% to $1.8 million for the six months ended June 30, 2025, as compared to $1.6 million for the same period in the prior year. This increase resulted from a higher average balance of interest-bearing deposits with banks of $23.7 million or 36.6% to $88.5 million for the six months ended June 30, 2025, as compared to $64.8 million for the same period in the prior year. Interest income on investment securities increased by $2.9 million or 227.1% to $4.2 million for the six months ended June 30, 2025, as compared to $1.3 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. The average balance of the investment securities portfolio increased by $92.7 million or 126.5% to $165.9 million for the six months ended June 30, 2025, as compared to $73.2 million for the same period in the prior year. The average yield on investment securities increased by 154 basis points to 5.02% for the six months ended June 30, 2025, as compared to 3.48% for the same period in the prior year. Dividend income on FHLB stock increased by $66,000 or 19.4% to $406,000 for the six months ended June 30, 2025, as compared to $340,000 for the same period in the prior year, primarily as a result of an increase in average balance of restricted stock of $2.0 million or 25.1% to $10.2 million for the six months ended June 30, 2025, as compared to $8.1 million for the same period in the prior year.

Total interest expense increased by $1.7 million or 7.5% to $23.9 million for the six months ended June 30, 2025, from $22.3 million for the six months ended June 30, 2024. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $128.5 million or 11.7%, to $1.23 billion for the six months ended June 30, 2025, from $1.10 billion for the six months ended June 30, 2024. Despite the increase in the average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased to 3.93% for the six months ended June 30, 2025, as compared to 4.07% for the six months ended June 30, 2024. The increase in average balance of interest-bearing liabilities included an $85.5 million increase in average interest-bearing deposit liabilities and a $43.0 million increase in average wholesale borrowings for the six months ended June 30, 2025. The increase in interest-bearing liabilities was primarily used to maintain an increased level of liquidity consistent with regulatory guidance and support the loan growth.

During the six months ended June 30, 2025, the Company recorded $795,000 provision for credit losses as compared to $308,000 provision for credit losses for the same period in the prior year. Based on the results of the CECL model and management’s evaluation of both quantitative and qualitative factors as well as the loan growth for the six months ended June 30, 2025, the Company recorded a provision for loan losses of $414,000 on loans, a $290,000 provision for credit losses for unfunded commitments and a $91,000 provision for credit losses on corporate securities held-to-maturity. Based upon the aforementioned analyses, management believes that the allowance for credit losses on loans and investment securities at June 30, 2025, and 2024 were appropriate.

Net interest margin for the six months ended June 30, 2025, was 2.40% compared to 2.39% for the six months ended June 30, 2024. The average yield on interest-earning assets declined 4 basis points to 5.55% for the six months ended June 30, 2025, as compared to 5.59% for the same period in the prior year. Average cost of interest-bearing liabilities declined fourteen basis points to 3.93% from 4.07% for the same period in the prior year, despite an increase in the average balance of interest-bearing liabilities of $128.5 million or 11.7% to $1.23 billion for the six months ended June 30, 2025, from $1.10 billion six months ended June 30, 2024.

Non-interest income increased by $895,000 or 82.5% to $2.0 million for the six months ended June 30, 2025, from $1.1 million for the six months ended June 30, 2024. The increase in total non-interest income resulted primarily from an increase in other income of $719,000 as a result of a non-recurring gain of $778,000 on the sale of a Company owned property recorded in the first quarter of 2025. Excluding this non-recurring gain, other income would have decreased $59,000 when compared to the same period in the prior year. Service charges and fees increased by $162,000 or 38.6% to $582,000 for the six months ended June 30, 2025, from $420,000 for the same period in the prior year, primarily due to an increase in loan fees of $56,000 and an increase in deposit accounts fees of $102,000.

Non-interest expense increased by $1.2 million or 8.4% to $15.7 million for the six months ended June 30, 2025, compared to $14.4 million for the six months ended June 30, 2024. Salaries and employee benefits increased by $432,000 or 4.8% to $9.4 million for the six months ended June 30, 2025, as compared to $9.0 million for the six months ended June 30, 2024. The increase in salaries and employee benefits resulted primarily due to a slight increase in headcount necessary to assist in the growth of the Bank and annual merit increases, partially offset by a decrease in health insurance costs year over year. Occupancy and equipment expense increased by $416,000 or 22.8% to $2.2 million for the six months ended June 30, 2025, as compared to $1.8 million for the six months ended June 30, 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 $61,000 or 32.2% to $129,000 for the six months ended June 30, 2025, as compared to $190,000 for the six months ended June 30, 2024, as a result of reduction in marketing consultant services. Data processing expense increased by $90,000 or 15.4% to $675,000 for the six months ended June 30, 2025, compared to $585,000 for the six months ended June 30, 2024, primarily as a result of adding new services and annual cost increases. FDIC insurance assessment increased $118,000 or 31.9% to $488,000 for the six months ended June 30, 2025, from $370,000 for the six months ended June 30, 2024, as a result of an increase in the assessment rate. Other operating expenses increased by $253,000 or 16.6% to $1.8 million for the six months ended June 30, 2025, from $1.5 million for the six months ended June 30, 2024, primarily due to minor increases in various components of other operating expenses. Other operating expenses are primarily comprised of loan related expenses, communications, dues and subscriptions, digital banking expenses, sponsorships, training and education, postage, meals and entertainment, software maintenance and depreciation, and miscellaneous expenses. Management's focus continues to remain on prudently managing its operating expenses while executing on our organic growth initiative.

The income tax provision increased by $120,000 or 17.9% to $788,000 for the six months ended June 30, 2025, from $668,000 for the six months ended June 30, 2024. This increase in the income tax provision resulted primarily from an increase in the pre-tax income of $873,000 or 30.0% to $3.8 million for the six months ended June 30, 2025 from $2.9 million for the six months ended June 30, 2024 year over year. In addition, the effective tax yield declined year over year as a result of a reduction in New York state tax apportionment. The effective tax rate for the six months ended June 30, 2025, was 20.8% compared to 22.9% for the same period in the prior year.

Asset Quality

The allowance for credit losses increased by $464,000 or 3.1% to $15.2 million or 1.11% of gross loans at June 30, 2025, as compared to $14.8 million or 1.19% of gross loans at December 31, 2024, and $14.9 million or 1.18% at June 30, 2024. During the first six months of 2025, the Company added a $414,000 provision to the allowance for credit losses and had net recoveries of $50,000. Based on the results of the CECL model and management’s evaluation of both quantitative and qualitative factors during the six months ended June 30, 2025, changes in the allowance for credit losses were adjusted accordingly.

The Bank had non-accrual loans totaling $17.9 million or 1.30% of gross loans at June 30, 2025, as compared to $16.6 million or 1.34% of gross loans at December 31, 2024, and $37.9 million or 3.02% of gross loans at March 31, 2025. Non-accrual loans decreased by $20.0 million from March 31, 2025, as a result of one commercial real estate loan in the amount of approximately $21.0 million which was resolved and placed on accrual status during the second quarter of 2025. The allowance for credit losses was 85.0% of non-accrual loans at June 30, 2025, compared to 88.7%, at December 31, 2024, and 39.1% at March 31, 2025.

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 Company 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; 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 Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)

										June 30, 2025 vs.
										December 31, 2024
(dollars in thousands, except percentages and share data)		June 30, 2025				December 31, 2024				Amount				%
Assets
Cash and cash equivalents:
Cash on hand		$	2,354			$	1,790			$	564				31.5	%
Interest-bearing deposits in other banks			65,272				130,690				(65,418	)			-50.1	%
Total cash and cash equivalents			67,626				132,480				(64,854	)			-49.0	%
Investment securities:
Available-for-sale, at fair value			26,605				300				26,305				8770.5	%
Held-to-maturity ("HTM"), at amortized cost			153,614				112,107				41,507				37.0	%
Less: Allowance for credit losses - HTM securities			(290	)			(198	)			(92	)			46.2	%
Held-to-maturity, net of allowance for credit losses			153,324				111,909				41,415				37.0	%
Total investment securities			179,929				112,209				67,720				60.4	%
Restricted stock			12,204				9,348				2,856				30.5	%
Loans receivable			1,376,116				1,239,031				137,085				11.1	%
Less: Allowance for credit losses			(15,220	)			(14,756	)			(464	)			3.1	%
Net loans receivable			1,360,896				1,224,275				136,621				11.2	%
Premises and equipment, net			10,452				17,059				(6,607	)			-38.7	%
Right-of-use asset			17,583				16,085				1,498				9.3	%
Accrued interest receivable			6,645				5,829				816				14.0	%
Bank owned life insurance			27,196				26,711				485				1.8	%
Deferred tax asset, net			3,283				3,076				207				6.7	%
Other assets			3,828				4,053				(225	)			-5.5	%
Total assets		$	1,689,642			$	1,551,125			$	138,517				8.9	%
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing		$	171,617			$	157,684			$	13,933				8.8	%
Interest-bearing			1,075,741				1,017,254				58,487				5.7	%
Total Deposits			1,247,358				1,174,938				72,420				6.2	%
Borrowings			237,500				175,000				62,500				35.7	%
Accrued interest payable			1,918				1,913				5				0.3	%
Lease liability			18,982				16,773				2,209				13.2	%
Other liabilities			12,884				10,232				2,652				25.9	%
Total liabilities			1,518,642				1,378,856				139,786				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			91,154				89,557				1,597				1.8	%
Retained earnings			107,963				104,965				2,998				2.9	%
Treasury stock			(27,925	)			(22,253	)			(5,672	)			25.5	%
Accumulated other comprehensive loss			(192	)			-				(192	)			N/A
Total stockholders' equity			171,000				172,269				(1,269	)			-0.7	%
Total liabilities and stockholders' equity		$	1,689,642			$	1,551,125			$	138,517				8.9	%
Shares issued			24,459,830				23,995,390
Shares outstanding			20,096,480				20,536,214
Treasury shares			4,363,350				3,459,176

First Commerce Bancorp, Inc.
Consolidated Statements of Income
For the three months ended June 30, 2025 and 2024
(Unaudited)

			Three Months Ended								Variance
(dollars in thousands, except percentages and share data)		June 30, 2025				June 30, 2024				Amount				%
Interest and Dividend Income
Loans, including fees		$	18,415			$	17,953			$	462				2.6	%
Investment securities:
Available-for-sale			414				64				350				548.5	%
Held-to-maturity			1,896				648				1,248				192.3	%
Interest-bearing deposits with other banks			828				945				(117	)			-12.3	%
Restricted stock dividends			186				183				3				1.7	%
Total interest and dividend income			21,739				19,793				1,946				9.8	%
Interest expense:
Deposits			9,842				9,539				303				3.2	%
Borrowings			2,257				1,912				345				18.0	%
Total interest expense			12,099				11,451				648				5.7	%
Net interest income			9,640				8,342				1,298				15.6	%
Provision for credit losses			401				260				141				54.4	%
Provision for (reversal of) unfunded commitments for credit losses			271				(5	)			276				-5344.8	%
Provision for credit losses - HTM securities			40				45				(5	)			-11.9	%
Total provision for credit losses			712				300				412				137.4	%
Net interest income after provision for (reversal of) credit losses			8,928				8,042				886				11.0	%
Non-interest Income:
Service charges and fees			289				229				60				26.3	%
Bank owned life insurance income			244				236				8				3.6	%
Other income			53				97				(44	)			-45.6	%
Total non-interest income			586				562				24				4.3	%
Non-Interest Expenses:
Salaries and employee benefits			4,681				4,487				194				4.3	%
Occupancy and equipment expense			1,084				913				171				18.7	%
Advertising and marketing			74				112				(38	)			-34.5	%
Professional fees			427				474				(47	)			-9.7	%
Data processing expense			333				300				33				10.9	%
FDIC insurance assessment			267				175				92				52.6	%
Other operating expenses			940				769				171				22.2	%
Total non-interest expenses			7,806				7,230				576				8.0	%
Income before income taxes			1,708				1,374				334				24.3	%
Income tax provision			385				287				98				33.9	%
Net income		$	1,323			$	1,087			$	236				21.8	%
Earnings per common share - Basic		$	0.07			$	0.05			$	0.02				31.1	%
Earnings per common share - Diluted			0.07				0.05				0.02				32.7	%
Weighted average shares outstanding - Basic			20,095				21,641				(1,546	)			-7.1	%
Weighted average shares outstanding - Diluted			20,095				21,898				(1,803	)			-8.2	%

First Commerce Bancorp, Inc.
Consolidated Statements of Income
For the six months ended June 30, 2025 and 2024
(Unaudited)

		Six Months Ended								Variance
(dollars in thousands, except percentages and share data)		June 30, 2025				June 30, 2024				Amount				%
Interest and Dividend Income
Loans, including fees		$	35,803			$	35,631			$	172				0.5	%
Investment securities:
Available-for-sale			597				132				465				352.6	%
Held-to-maturity			3,570				1,142				2,428				212.7	%
Interest-bearing deposits with other banks			1,821				1,599				222				13.9	%
Restricted stock dividends			406				340				66				19.5	%
Total interest and dividend income			42,197				38,844				3,353				8.6	%
Interest expense:
Deposits			19,573				18,591				982				5.3	%
Borrowings			4,363				3,671				692				18.9	%
Total interest expense			23,936				22,262				1,674				7.5	%
Net interest income			18,261				16,582				1,679				10.1	%
Provision for credit losses			414				384				30				7.9	%
Provision for (reversal of) unfunded commitments for credit losses			290				(124	)			414				-333.7	%
Provision for credit losses - HTM securities			91				48				43				89.0	%
Total provision for credit losses			795				308				487				158.4	%
Net interest income after provision for (reversal of) credit losses			17,466				16,274				1,192				7.3	%
Non-interest Income:
Service charges and fees			582				420				162				38.6	%
Bank owned life insurance income			484				470				14				3.0	%
Other income			914				195				719				367.9	%
Total non-interest income			1,980				1,085				895				82.5	%
Non-Interest Expenses:
Salaries and employee benefits			9,421				8,989				432				4.8	%
Occupancy and equipment expense			2,241				1,825				416				22.8	%
Advertising and marketing			129				190				(61	)			-32.2	%
Professional fees			936				970				(34	)			-3.5	%
Data processing expense			675				585				90				15.4	%
FDIC insurance assessment			488				370				118				31.9	%
Other operating expenses			1,771				1,518				253				16.6	%
Total non-interest expenses			15,661				14,447				1,214				8.4	%
Income before income taxes			3,785				2,912				873				30.0	%
Income tax provision			788				668				120				17.9	%
Net income		$	2,997			$	2,244			$	753				33.6	%
Earnings per common share - Basic		$	0.15			$	0.10			$	0.05				45.9	%
Earnings per common share - Diluted			0.15				0.10				0.05				47.6	%
Weighted average shares outstanding - Basic			20,242				22,121				(1,879	)			-8.5	%
Weighted average shares outstanding - Diluted			20,243				22,377				(2,134	)			-9.5	%

First Commerce Bancorp, Inc.
Net Interest Margin Analysis
(Unaudited)

		Three months ended June 30, 2025												Three months ended June 30, 2024
		Average								Average				Average								Average
(dollars in thousands)		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Assets:
Interest-earning assets:
Interest-bearing deposits in other banks		$	79,350			$	828				4.19	%		$	75,520			$	945				5.03	%
Investment securities:
Available-for-sale			26,726				414				6.20	%			8,515				64				3.01	%
Held-to-maturity			153,307				1,896				4.95	%			68,194				648				3.80	%
Total investment securities			180,033				2,310				5.13	%			76,709				712				3.71	%
Restricted stock			10,886				186				6.82	%			8,474				183				8.64	%
Loans receivable:
Consumer loans			978				4				1.74	%			469				2				1.72	%
Home equity loans			2,176				48				8.88	%			2,965				60				8.13	%
Construction loans			116,684				2,334				7.91	%			110,515				2,423				8.67	%
Commercial loans			45,798				915				7.90	%			34,825				647				7.35	%
Commercial mortgage loans			1,095,592				14,628				5.28	%			1,060,086				14,166				5.29	%
Residential mortgage loans			10,223				121				4.76	%			14,618				179				4.92	%
SBA loans			21,095				365				6.84	%			26,147				476				7.21	%
Total loans receivable			1,292,546				18,415				5.71	%			1,249,625				17,953				5.78	%
Total interest-earning assets			1,562,815				21,739				5.58	%			1,410,328				19,793				5.64	%
Non-interest-earning assets:
Allowance for credit losses			(14,826	)											(14,452	)
Cash on hand			2,042												1,959
Other assets			67,098												60,030
Total non-interest-earning assets			54,314												47,537
Total assets		$	1,617,129											$	1,457,865
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Interest-bearing checking accounts		$	77,441			$	424				2.19	%		$	48,715			$	198				1.63	%
NOW accounts			5,908				44				2.95	%			43,133				378				3.52	%
Money market accounts			252,446				2,052				3.26	%			228,306				2,042				3.60	%
Savings accounts			52,577				317				2.42	%			27,184				26				0.38	%
Certificates of deposit			494,811				5,091				4.13	%			495,512				5,461				4.43	%
Brokered CDs			163,238				1,914				4.70	%			118,037				1,434				4.89	%
Borrowings			208,291				2,257				4.35	%			155,720				1,912				4.94	%
Total interest-bearing liabilities			1,254,712			$	12,099				3.87	%			1,116,607			$	11,451				4.12	%
Non-interest-bearing liabilities:
Demand deposits			160,087												142,030
Other liabilities			30,927												22,003
Total non-interest bearing liabilities			191,014												164,033
Stockholders' equity			171,403												177,225
Total liabilities and stockholders' equity		$	1,617,129											$	1,457,865
Net interest spread											1.71	%											1.52	%
Net interest margin						$	9,640				2.47	%						$	8,342				2.38	%

First Commerce Bancorp, Inc.
Net Interest Margin Analysis
(Unaudited)

		Six months ended June 30, 2025												Six months ended June 30, 2024
		Average								Average				Average								Average
(dollars in thousands)		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Assets:
Interest-earning assets:
Interest-bearing deposits		$	88,528			$	1,821				4.15	%		$	64,829			$	1,599				4.96	%
Investment securities:
Available-for-sale			19,241				597				6.20	%			8,784				132				3.00	%
Held-to-maturity			146,658				3,570				4.87	%			64,462				1,142				3.54	%
Total investment securities			165,899				4,167				5.02	%			73,246				1,274				3.48	%
Restricted stock			10,164				406				7.99	%			8,126				340				8.37	%
Loans:
Consumer loans			930				11				2.41	%			421				4				1.91	%
Home equity loans			2,279				98				8.70	%			2,957				119				8.09	%
Construction loans			110,870				4,391				7.88	%			112,958				4,952				8.67	%
Commercial loans			44,375				1,759				7.89	%			35,509				1,382				7.70	%
Commercial mortgage loans			1,077,946				28,565				5.27	%			1,058,072				27,832				5.20	%
Residential mortgage loans			10,906				258				4.76	%			14,746				353				4.84	%
SBA loans			21,112				721				6.80	%			27,092				989				7.22	%
Total loans			1,268,418				35,803				5.69	%			1,251,755				35,631				5.72	%
Total interest-earning assets			1,533,009				42,197				5.55	%			1,397,956				38,844				5.59	%
Non-interest-earning assets:
Allowance for credit losses			(14,813	)											(14,469	)
Cash and due from bank			1,985												1,932
Other assets			67,523												59,983
Total non-interest-earning assets			54,695												47,446
Total assets		$	1,587,704											$	1,445,402
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Interest-bearing checking accounts		$	77,410			$	828				2.16	%		$	51,071			$	422				1.66	%
NOW accounts			7,261				105				2.93	%			40,613				700				3.47	%
Money market accounts			255,268				4,159				3.29	%			219,353				3,790				3.47	%
Savings accounts			46,059				511				2.24	%			28,165				55				0.39	%
Certificates of deposit			490,578				10,217				4.20	%			500,886				10,927				4.39	%
Brokered CDs			159,120				3,753				4.76	%			110,125				2,697				4.92	%
Borrowings			192,671				4,363				4.57	%			149,637				3,671				4.93	%
Total interest-bearing liabilities			1,228,367			$	23,936				3.93	%			1,099,850			$	22,262				4.07	%
Non-interest-bearing liabilities:
Demand deposits			157,283												142,677
Other liabilities			30,066												22,647
Total non-interest bearing liabilities			187,349												165,324
Stockholders' equity			171,988												180,228
Total liabilities and stockholders' equity		$	1,587,704											$	1,445,402
Net interest spread											1.62	%											1.52	%
Net interest margin						$	18,261				2.40	%						$	16,582				2.39	%

First Commerce Bancorp, Inc.
Selected Financial Data
(Unaudited)

		As of and for the quarters ended
(In thousands, except per share data)		6/30/2025				3/31/2025				12/31/2024				9/30/2024				6/30/2024
Summary earnings:
Interest income		$	21,739			$	20,458			$	19,672			$	20,149			$	19,793
Interest expense			12,099				11,837				11,706				11,785				11,451
Net interest income			9,640				8,621				7,966				8,364				8,342
Provision for (reversal of) credit losses			712				83				(55	)			54				300
Net interest income after provision for (reversal of) credit losses			8,928				8,538				8,021				8,310				8,042
Non-interest income			586				1,394				412				582				562
Non-interest expense			7,806				7,855				7,117				7,524				7,230
Income before income tax expense			1,708				2,077				1,316				1,368				1,374
Income tax expense			385				403				167				240				287
Net income		$	1,323			$	1,674			$	1,149			$	1,128			$	1,087
Per share data:
Earnings per share - basic		$	0.07			$	0.08			$	0.06			$	0.05			$	0.05
Earnings per share - diluted			0.07				0.08				0.06				0.05				0.05
Cash dividends declared			-				-				-				-				-
Book value at period end			8.51				8.47				8.39				8.31				8.19
Shares outstanding at period end			20,096				20,130				20,536				20,780				21,489
Basic weighted average shares outstanding			20,095				20,392				20,552				21,164				21,641
Fully diluted weighted average shares outstanding			20,095				20,435				20,612				21,387				21,898
Balance sheet data (at period end):
Total assets		$	1,689,642			$	1,581,983			$	1,551,125			$	1,476,252			$	1,467,517
Investment securities, available-for-sale			26,605				26,789				300				7,748				8,338
Investment securities, held-to-maturity			153,324				151,009				111,909				73,977				74,109
Total loans			1,376,116				1,256,247				1,239,031				1,262,481				1,260,236
Allowance for credit losses			(15,220	)			(14,834	)			(14,756	)			(14,869	)			(14,922	)
Total deposits			1,247,358				1,202,079				1,174,938				1,097,165				1,107,159
Stockholders' equity			171,000				170,422				172,269				172,642				175,933
Common cash dividends			-				-				-				-				-
Selected performance ratios:
Return on average total assets			0.33	%			0.44	%			0.31	%			0.31	%			0.30	%
Return on average stockholders' equity			3.10	%			3.93	%			2.65	%			2.56	%			2.47	%
Dividend payout ratio			N/A				N/A				N/A				N/A				N/A
Average yield on earning assets			5.58	%			5.52	%			5.43	%			5.66	%			5.64	%
Average cost of funding liabilities			3.87	%			3.99	%			4.08	%			4.18	%			4.12	%
Net interest margin			2.47	%			2.33	%			2.20	%			2.35	%			2.38	%
Efficiency ratio			76.33	%			78.43	%			84.95	%			84.10	%			81.19	%
Non-interest income to average assets			0.15	%			0.36	%			0.11	%			0.16	%			0.16	%
Non-interest expenses to average assets			1.94	%			2.04	%			1.90	%			2.04	%			1.99	%
Asset quality ratios:
Non-performing loans to total loans			1.30	%			3.02	%			1.34	%			1.15	%			1.21	%
Non-performing assets to total assets			1.06	%			2.40	%			1.07	%			0.98	%			1.04	%
Allowance for credit losses to non-performing loans			84.97	%			39.12	%			88.71	%			102.67	%			97.76	%
Allowance for credit losses to total loans			1.11	%			1.18	%			1.19	%			1.18	%			1.18	%
Net recoveries (charge-offs) to average loans			0.02	%			0.02	%			-0.01	%			-0.03	%			0.01	%
Liquidity and capital ratios:
Net loans to deposits			109.10	%			103.27	%			104.20	%			113.71	%			112.48	%
Average loans to average deposits			107.13	%			105.49	%			111.83	%			114.54	%			113.30	%
Total stockholders' equity to total assets			10.12	%			10.77	%			11.11	%			11.69	%			11.99	%
Total capital to risk-weighted assets			12.53	%			13.29	%			14.45	%			14.30	%			14.67	%
Tier 1 capital to risk-weighted assets			11.44	%			12.16	%			13.26	%			13.13	%			13.48	%
Common equity tier 1 capital ratio to risk-weighted assets			11.44	%			12.16	%			13.26	%			13.13	%			13.48	%
Tier 1 leverage ratio			10.59	%			10.74	%			11.56	%			11.80	%			12.08	%

Source: First Commerce Bancorp, Inc.
Contact:
Donald Mindiak
President and Chief Executive Officer
dmindiak@firstcommercebk.com

FAQ

What were First Commerce Bancorp's (CMRB) Q2 2025 earnings?

First Commerce Bancorp reported net income of $1.3 million for Q2 2025, with basic earnings per share of $0.07, compared to $1.1 million and $0.05 per share in Q2 2024.

How much did CMRB's loan portfolio grow in the first half of 2025?

CMRB's total loans increased by $137.1 million or 11.1% to $1.38 billion at June 30, 2025, compared to $1.24 billion at December 31, 2024.

What was First Commerce Bancorp's deposit growth in H1 2025?

Total deposits increased by $72.4 million or 6.2% to $1.25 billion at June 30, 2025, compared to $1.17 billion at December 31, 2024.

What is CMRB's current book value per share?

CMRB's book value per share increased to $8.51 at June 30, 2025, up from $8.19 at June 30, 2024.

How many shares did First Commerce Bancorp repurchase in H1 2025?

The company repurchased 904,000 shares for approximately $5.6 million, at a weighted average price of $6.23 per share.

What is First Commerce Bancorp's current net interest margin?

CMRB's net interest margin increased to 2.47% in Q2 2025, up from 2.38% in Q2 2024 and 2.33% in Q1 2025.