First Commerce Bancorp, Inc. Reports Second Quarter and Year-to-Date 2026 Results and Declares a Cash Dividend

Rhea-AI Summary

First Commerce Bancorp (OTC:CMRB) reported net income of $3.7 million for Q2 2026 and $7.2 million year-to-date, up from $1.3 million and $3.0 million a year earlier. Basic EPS rose to $0.22 for the quarter and $0.40 for six months, versus $0.07 and $0.15 in 2025. The board declared a $0.05 per-share cash dividend, payable August 24, 2026, to shareholders of record on August 10, 2026.

Total assets reached $1.96 billion, loans $1.56 billion and deposits $1.42 billion at June 30, 2026. Net interest margin improved to 2.97%, ROA to 0.78% and ROE to 9.40%. Non-performing loans declined to 0.72% of total loans, while stockholders’ equity fell 9.2% to $159.2 million largely due to a $21.0 million tender offer repurchasing 3.0 million shares at $7.00.

Positive

• Net income growth to $3.7M in Q2 and $7.2M YTD 2026 from $1.3M and $3.0M
• EPS increase to $0.22 (Q2) and $0.40 (YTD) from $0.07 and $0.15
• Net interest margin up 50 bps to 2.97% versus 2.47% a year earlier
• Loan and deposit growth: loans +$142.7M (10.1%), deposits +$128.8M (9.9%) since year-end 2025
• Profitability ratios higher: ROA 0.78% vs 0.33%; ROE 9.40% vs 3.10%
• Asset quality improved: non-performing loans to total loans down to 0.72% from 1.30%
• Capital return: $21.0M tender offer for 3.0M shares plus $0.05 cash dividend declared

Negative

• Stockholders’ equity down 9.2% to $159.2M; Tier 1 leverage ratio declined to 8.40% from 10.22%
• Borrowings increased $52.0M (20.6%) to $304.5M to support asset growth and liquidity
• Allowance ratio decreased to 1.01% of total loans from 1.13% despite loan growth
• Non-interest expense up $1.8M or 23.0% year-over-year in Q2 2026

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LAKEWOOD, NJ / ACCESS Newswire / July 29, 2026 / First Commerce Bancorp, Inc. (the "Company"), (OTCID:CMRB), the holding company for First Commerce Bank (the "Bank"), today reported net income of $3.7 million and $7.2 million for the three- and six-months ending June 30, 2026, as compared to $1.3 million and $3.0 million for the three- and six-months ending June 30, 2025, respectively. Basic earnings per common share for the three- and six-months ending June 30, 2026, were $0.22 and $0.40, respectively, compared to $0.07 and $0.15 for the three- and six-months ending June 30, 2025, respectively. The Board of Directors has unanimously declared a cash dividend of $0.05 per common share for shareholders of record on August 10, 2026, with a payable date of August 24, 2026. Per share results for the 2026 periods also reflect the effect of a reduced weighted-average share count following the Company's repurchase of 3.0 million shares of common stock in its 2026 tender offer.

President & CEO Donald Mindiak commented, "The systematic improvement in operating results over the last several quarters is reflective of the successful execution of the balance sheet growth initiative started in 2025. Prudently underwritten organic loan growth, coupled with complimentary investment security purchases and funded through a combination of competitively priced retail and wholesale funding sources, has produced quarter-over-quarter and year-over-year material improvement in our profitability metrics. We are encouraged by the year-over-year improvement in our asset quality metrics and look forward to continuing to build on that momentum. Since market interest rates appear to be in a short-term holding pattern as the new Federal Reserve Chairman continues to navigate his position given the geopolitical unrest that has permeated the global economy, we remained focused on those aspects of our business that we can control: disciplined operating expense management, prudent underwriting and quality credit monitoring, franchise value enhancement and a competitive return on investment for our shareholders."

Continuing, he stated, "This fall, we will be engaged in a conversion to a more technologically advanced and user-friendly core processing system to facilitate a more fulfilling customer experience. We will endeavor to make this transition seamless for our clients to enhance the service levels we pride ourselves on and continue to look forward to the opportunities and challenges that lie ahead."

Financial Highlights

• Total interest and dividend income increased by $5.4 million or 24.6% for the second quarter of 2026 compared to the second quarter of 2025 as a result of the growth in average interest-earning assets year over year, and an increase in the average yield of interest earning assets.

• Total interest expense increased by $1.5 million or 12.4% for the second quarter of 2026 compared to the second quarter of 2025 as a result of the growth in borrowings (primarily Federal Home Loan Bank advances) used primarily for loan growth and the issuance of subordinated notes.

• Total loans increased by $142.7 million or 10.1% to $1.56 billion at June 30, 2026, compared to $1.42 billion at December 31, 2025.

• Total deposits increased by $128.8 million or 9.9% to $1.42 billion at June 30, 2026, compared to $1.30 billion at December 31, 2025.

• Quarter-to-date (annualized) return on average total assets increased by forty-five basis points to 0.78% at June 30, 2026, compared to 0.33% at June 30, 2025.

• Quarter-to-date (annualized) return on average shareholders' equity increased by 630 basis points to 9.40% at June 30, 2026, compared to 3.10% at June 30, 2025.

• Book value per common share increased by $0.87 to $9.38 at June 30, 2026, compared to $8.51 at June 30, 2025.

• Net interest margin increased fifty basis points to 2.97% as of June 30, 2026, from 2.47% at June 30, 2025.

• Efficiency ratio improved to 65.61% at June 30, 2026, from 76.33% at June 30, 2025.

• Non-performing loans to total loans improved to 0.72% at June 30, 2026, from 1.30% at June 30, 2025.

• Total stockholders' equity decreased 9.2% to $159.2 million and the Tier 1 leverage ratio declined to 8.40% at June 30, 2026, from 10.22% at December 31, 2025, primarily reflecting the $21.0 million repurchase of common stock.

 

Balance Sheet Review

Total assets increased by $170.7 million or 9.5% to $1.96 billion at June 30, 2026, from $1.79 billion at December 31, 2025. The increase in total assets was primarily related to increases in total loans receivable, total investment securities and bank-owned life insurance, partially offset by a decrease in total cash and cash equivalents during the six months ending June 30, 2026.

Total cash and cash equivalents decreased by $34.2 million or 25.1% to $102.2 million at June 30, 2026, from $136.4 million at December 31, 2025. This decrease was primarily due to funding of loan growth and investment securities purchases.

Total investment securities increased by $38.3 million or 23.3% to $202.6 million at June 30, 2026, from $164.3 million at December 31, 2025. The increase in investment securities resulted primarily from $77.5 million in purchases of investment securities, partially offset by $10.5 million in redemptions and maturities and $28.7 million of amortization of mortgage-backed securities.

Total loans receivable, net of allowance for credit losses increased by $143.0 million or 10.2% to $1.55 billion at June 30, 2026, from $1.40 billion at December 31, 2025. Commercial mortgage loans increased $74.1 million, construction loans increased $40.0 million, 1-4 family mortgage loans increased $23.8 million, and multi-family mortgage loans increased $6.8 million, partially offset by a decrease in commercial loans of $1.4 million. The allowance for credit losses decreased by $322,000 or 2.0% to $15.7 million or 1.01% of total loans at June 30, 2026, as compared to $16.0 million or 1.13% of total loans at December 31, 2025.

Total deposits increased $128.8 million or 9.9% to $1.42 billion at June 30, 2026, from $1.30 billion at December 31, 2025. Brokered deposits increased $58.6 million, Money market deposits increased $42.0 million, interest-bearing demand deposits increased $32.7 million, non-interest-bearing demand deposits increased $24.3 million, and savings accounts increased $5.9 million, partially offset by a decrease of $34.6 million in certificates of deposit.

Borrowings, which are primarily Federal Home Loan Bank advances, increased $52.0 million or 20.6% to $304.5 million at June 30, 2026, from $252.5 million at December 31, 2025, which assisted in the facilitation of the loan and investment securities growth discussed previously.

Stockholders' equity decreased by $16.2 million or 9.2% to $159.2 million at June 30, 2026, from $175.4 million at December 31, 2025. The decrease in stockholders' equity was primarily due to an increase in treasury stock of $21.3 million and an increase in accumulated other comprehensive loss of $460,000, partially offset by an increase of $5.5 million in retained earnings. During the six months ending June 30, 2026, the Company completed a tender offer to repurchase 3.0 million shares of its outstanding common stock at $7.00 per common share for a total cost of $21.0 million which resulted in an increase in treasury stock.

Three Months of Operations

Net interest income increased by $3.8 million or 39.9% to $13.5 million for the three months ending June 30, 2026, from $9.6 million for the three months ending June 30, 2025. The increase in net interest income was primarily due to an increase in total interest and dividend income of $5.4 million as a result of an increase in the balance of average interest earning assets, partially offset by an increase in total interest expense of $1.5 million as a result of an increase in the balance of average interest-bearing liabilities.

Total interest and dividend income increased by $5.4 million or 24.6% to $27.1 million for the three months ending June 30, 2026, from $21.7 million for the three months ending June 30, 2025. Interest income on loans, including fees, increased $5.0 million or 27.2% to $23.4 million for the three months ending June 30, 2026, as compared to $18.4 million for the three months ending June 30, 2025. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $213.8 million or 16.5% to $1.51 billion for the three months ending June 30, 2026, as compared to $1.29 billion for the three months ending June 30, 2025. Average yield on loans receivable was 6.24% for the three months ending June 30, 2026, increasing fifty-three basis points over the comparative time period in 2025. Interest income on investment securities increased by $316,000 or 13.7% to $2.6 million for the three months ending June 30, 2026, as compared to $2.3 million for the same period in the prior year, as a result of purchasing and replacing payoffs and paydowns of investment securities with higher yielding investment securities. The average balance of the investment security portfolio increased by $29.7 million or 16.5% to $209.7 million for the three months ending June 30, 2026, as compared to $180.0 million for the same period in the prior year. The average yield on investment securities decreased by twelve basis points to 5.01% for the three months ending June 30, 2026, as compared to 5.13% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $22,000 or 2.7% to $806,000 for the three months ending June 30, 2026, as compared to $828,000 for the same period in the prior year. This decrease resulted primarily from a decline in average yield of seventy-two basis points to 3.47% for the three months ending June 30, 2026, as compared to 4.19% for the same period in the prior year. Dividend income on restricted stock increased by $45,000 or 24.2% to $231,000 for the three months ending June 30, 2026,as compared to $186,000 for the same period in the prior year as a result of an increase in average balance of restricted stock of $4.2 million or 39.0% to $15.1 million for the three months ending June 30, 2026, as compared to $10.9 million for the same period in the prior year despite a decrease in average yield of sixty-nine basis points to 6.13% for the three months ending June 30, 2026, as compared to 6.82% for the same period in the prior year.

Total interest expense increased by $1.5 million or 12.4% to $13.6 million for the three months ending June 30, 2026, from $12.1 million for the three months ending June 30, 2025. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $276.7 million or 22.1%, to $1.53 billion for the three months ending June 30, 2026, from $1.25 billion for the three months ending June 30, 2025. Despite the increase in average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased by thirty-one basis points to 3.56% for the three months ending June 30, 2026, as compared to 3.87% for the three months ending June 30, 2025. The increase in average balance of interest-bearing liabilities included a $144.4 million increase in average interest-bearing deposit liabilities, an $93.3 million increase in average wholesale borrowings, and a $39.0 million addition of subordinated notes for the three months ending June 30, 2026. The increase in interest-bearing liabilities was primarily used to facilitate asset growth and strategic initiatives as well as to maintain an increased level of liquidity consistent with regulatory guidance.

During the second quarter of 2026, the Company recorded a $66,000 provision for credit losses as compared to a $712,000 provision for credit losses for the same period in the prior year. The decrease in provision for credit losses for the second quarter of 2026 was primarily due to management's evaluation of both quantitative and qualitative factors which impacts the CECL model calculations despite an increase of $142.7 million in gross loans receivable. The Company recorded a $155,000 provision for credit losses on loans, a $71,000 reversal of provision for credit losses for unfunded commitments and an $18,000 reversal of provision for credit losses on corporate securities held-to-maturity. Management believes that the balance of the allowance for credit losses on loans and investment securities at June 30, 2026, and 2025 were appropriate.

Net interest margin increased by fifty basis points to 2.97% for the three months ending June 30, 2026, compared to 2.47% for the three months ending June 30, 2025. The increase in the net interest margin was primarily due to an increase in the average balance of total interest-earning assets of $261.6 million or 16.7% to $1.82 billion for the three months ending June 30, 2026, compared to $1.56 billion for the three months ending June 30, 2025, and an increase in average yield of interest-earning assets to 5.96% for the three months ending June 30, 2026 from 5.58% for the three months ending June 30, 2025, coupled with a decrease in the average cost of interest-bearing liabilities to 3.56% for the three months ending June 30, 2026 from 3.87% for the three months ending June 30, 2025, partially offset by an increase in the total interest-bearing liabilities of $276.7 million or 22.1% to $1.53 billion for the three months ending June 30, 2026, from $1.25 billion for the three months ending June 30, 2025.

Non-interest income increased by $559,000 or 95.4% to $1.1 million for the three months ending June 30, 2026, from $586,000 for the three months ending June 30, 2025. The increase in total non-interest income was primarily due to an increase of $322,000 in bank owned life insurance income, an increase of $181,000 in service charges and fees, and an increase of $56,000 in other income. BOLI income increased as a result of the Company purchasing $13.4 million in new BOLI policies to insure additional employees as well as an increase in the rate of return on the policies.

Non-interest expense increased by $1.8 million or 23.0% to $9.6 million for the three months ending June 30, 2026, compared to $7.8 million for the three months ending June 30, 2025. Salaries and employee benefits increased by $457,000 or 9.8% to $5.1 million for the three months ending June 30, 2026, as compared to $4.7 million for the three months ending June 30, 2025. The increase in salaries and employee benefits was primarily due to a slight increase in headcount as a result of the growth of the Bank, annual merit increases, employee incentives and increased health insurance costs year over year. Occupancy and equipment expense increased by $382,000 or 35.3% to $1.5 million for the three months ending June 30, 2026, as compared to $1.1 million for the three months ending June 30, 2025, primarily due to increase in facilities maintenance contracts, lease expense, and other real estate owned expenses. Advertising and marketing expense decreased $53,000 or 71.5% to $21,000 for the three months ending June 30, 2026, as compared to $74,000 for the same period in the prior year, primarily due to a reduction in advertising campaigns and product promotions. Professional fees increased $204,000 or 47.7% to $631,000 for the three months ending June 30, 2026, as compared to $427,000 for the three months ending June 30, 2025, primarily due to increase in director fees and consulting services, partially offset by a decrease in audit and legal fees. Data processing expense increased by $30,000 or 9.1% to $363,000 for the three months ending June 30, 2026, as compared to $333,000 for the same period in the prior year. Other operating expenses increased by $757,000 or 80.6% to $1.7 million for the three months ending June 30, 2026, from $940,000 for the three months ending June 30, 2025, primarily due to a $489,000 accrual to miscellaneous expenses related to various components of other operating expenses, a $114,000 charge to sponsorships, and a $78,000 charge to dues and subscriptions. Other operating expenses are primarily comprised of loan related expenses, digital banking expenses, 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 the organic growth initiative.

The income tax provision increased by $878,000 or 228.1% to $1.3 million for the three months ending June 30, 2026, from $385,000 for the three months ending June 30, 2025. The increase in the income tax provision resulted primarily from an increase in the pre-tax income year over year of $3.3 million or 190.7% to $5.0 million for the three months ending June 30, 2026, from $1.7 million for the three months ending June 30, 2025. The effective tax rate for the quarter ended June 30, 2026, was 25.4% compared to 22.5% for the quarter ending June 30, 2025. The effective tax rate for the quarter ending June 30, 2025, was impacted by a reduction in New York state tax apportionment.

 

Six Months of Operations

Net interest income increased by $7.3 million or 40.0% to $25.6 million for the six months ending June 30, 2026, from $18.3 million for the six months ending June 30, 2025. The increase in net interest income was primarily due to an increase in total interest and dividend income of $9.8 million as a result of an increase in the balance of average interest earning assets, partially offset by an increase in total interest expense of $2.5 million as a result of an increase in the balance of average interest-bearing liabilities.

Total interest and dividend income increased by $9.8 million or 23.3% to $52.0 million for the six months ending June 30, 2026, from $42.2 million for the six months ending June 30, 2025. Interest income on loans, including fees, increased $9.0 million or 25.0% to $44.8 million for the six months ending June 30, 2026, as compared to $35.8 million for the six months ending June 30, 2025. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $199.8 million or 15.8% to $1.47 billion for the six months ending June 30, 2026, as compared to $1.27 billion for the six months ending June 30, 2025. Average yield on loans receivable was 6.15% for the six months ending June 30, 2026, increasing forty-six basis points over the comparative time period in 2025. Interest income on investment securities increased by $977,000 or 23.4% to $5.1 million for the six months ending June 30, 2026, as compared to $4.2 million for the same period in the prior year, as a result of purchasing and replacing paydowns of investment securities with higher yielding investment securities. The average balance of the investment security portfolio increased by $28.1 million or 17.0% to $194.0 million for the six months ending June 30, 2026, as compared to $165.9 million for the same period in the prior year. The average yield on investment securities increased by twenty-eight basis points to 5.30% for the six months ending June 30, 2026, as compared to 5.02% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $181,000 or 9.9% to $1.6 million for the six months ending June 30, 2026, as compared to $1.8 million for the same period in the prior year. This decrease resulted primarily from a decline in average yield of sixty-seven basis points to 3.48% for the six months ending June 30, 2026, as compared to 4.15% for the same period in the prior year. Dividend income on restricted stock increased $68,000 or 16.7% to $474,000 for the six months ending June 30, 2026, as compared to $406,000 for the same period in the prior year as a result of an increase in average balance of restricted stock of $3.7 million to $13.8 million for the six months ending June 30, 2026, as compared to $10.2 million for the same period in the prior year despite a decrease in average yield of 114 basis points to 6.85% for the six months ending June 30, 2026, as compared to 7.99% for the same period in the prior year.

Total interest expense increased by $2.5 million or 10.5% to $26.4 million for the six months ending June 30, 2026, from $23.9 million for the six months ending June 30, 2025. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $247.6 million or 20.2%, to $1.48 billion for the six months ending June 30, 2026, from $1.23 billion for the six months ending June 30, 2025. Despite the increase in average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased by thirty-two basis points to 3.61% for the six months ending June 30, 2026, as compared to 3.93% for the six months ending June 30, 2025. The increase in average balance of interest-bearing liabilities included a $128.0 million increase in average interest-bearing deposit liabilities, an $80.7 million increase in average wholesale borrowings, and a $39.0 million addition of subordinated notes for the six months ending June 30, 2026. The increase in interest-bearing liabilities was primarily used to facilitate asset growth and strategic initiatives as well as to maintain an increased level of liquidity consistent with regulatory guidance.

During the six months ending June 30, 2026, the Company recorded a $551,000 reversal of provision for credit losses as compared to a $795,000 provision for credit losses for the same period in the prior year. The decrease in provision for credit losses for the six months ending June 30, 2026, was primarily due to management's evaluation of both quantitative and qualitative factors which impacts the CECL model calculations despite an increase of $142.7 million in gross loans receivable. The Company recorded a $322,000 reversal of provision for credit losses on loans, a $197,000 reversal of provision for credit losses for unfunded commitments and a $32,000 reversal of provision for credit losses on corporate securities held-to-maturity. Management believes that the balance of the allowance for credit losses on loans and investment securities at June 30, 2026, and 2025 were appropriate.

Net interest margin increased by fifty-one basis points to 2.91% for the six months ending June 30, 2026, compared to 2.40% for the six months ending June 30, 2025. The increase in the net interest margin was primarily due to an increase in the average balance of total interest-earning assets of $238.0 million or 15.5% to $1.77 billion for the six months ending June 30, 2026, compared to $1.53 billion for the six months ending June 30, 2025, and an increase in average yield of interest-earning assets to 5.92% for the six months ending June 30, 2026 from 5.55% for the six months ending June 30, 2025, coupled with a decrease in the average cost of interest-bearing liabilities to 3.61% for the six months ending June 30, 2026 from 3.93% for the six months ending June 30, 2025, partially offset by an increase in the total interest-bearing liabilities of $247.6 million or 20.2% to $1.48 billion for the six months ending June 30, 2026, from $1.23 billion for the six months ending June 30, 2025.

Non-interest income increased by $154,000 or 7.8% to $2.1 million for the six months ending June 30, 2026, from $2.0 million for the six months ending June 30, 2025. The increase in total non-interest income was primarily due to increases in service charges and fees of $241,000 and BOLI income of $609,000, partially offset by a decrease of $696,000 in other income. Other income for the six months ending June 30, 2025, was impacted by a $778,000 gain recorded on the sale of a Company owned property. BOLI income increased as a result of the Company purchasing $13.4 million in new BOLI policies to insure additional employees as well as an increase in the rate of return on the policies.

Non-interest expense increased by $3.0 million or 19.4% to $18.7 million for the six months ending June 30, 2026, compared to $15.7 million for the six months ending June 30, 2025. Salaries and employee benefits increased by $851,000 or 9.0% to $10.3 million for the six months ending June 30, 2026, as compared to $9.4 million for the six months ending June 30, 2025. The increase in salaries and employee benefits was primarily due to an increase in headcount as a result of the growth of the Bank, annual merit increases, employee incentives and increased health insurance costs year over year. Occupancy and equipment expense increased by $577,000 or 25.8% to $2.8 million for the six months ending June 30, 2026, as compared to $2.2 million for the six months ending June 30, 2025, primarily due to increase in facilities maintenance contracts, lease expense, and other real estate owned expenses. Professional fees increased $311,000 or 33.2% to $1.2 million for the six months ending June 30, 2026, as compared to $936,000 for the six months ending June 30, 2025, primarily due to increase in director fees and consulting fees, partially offset by a decrease in audit and legal fees. Data processing expense increased $40,000 or 6.0% to $715,000 for the six months ending June 30, 2026, as compared to $675,000 for the same period in the prior year. FDIC insurance assessment increased $82,000 or 16.8% to $570,000, for the six months ending June 30, 2026, from $488,000 for the six months ending June 30, 2025, as a result of the growth in total assets. Other operating expenses increased by $1.2 million or 66.1% to $2.9 million for the six months ending June 30, 2026, from $1.8 million for the six months ending June 30, 2025, primarily due to $667,000 in accruals to miscellaneous expenses and 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 the organic growth initiative.

The income tax provision increased by $1.6 million or 205.1% to $2.4 million for the six months ending June 30, 2026, from $788,000 for the six months ending June 30, 2025. The increase in the income tax provision resulted primarily from an increase in the pre-tax income year over year of $5.8 million or 152.6% to $9.6 million for the six months ending June 30, 2026, from $3.8 million for the six months ending June 30, 2025. The effective tax rate for the six months ending June 30, 2026, was 25.1% compared to 20.8% for the six months ending June 30, 2025. The effective tax rate for the quarter ending June 30, 2025, was impacted by a reduction in New York state tax apportionment.

Asset Quality

The allowance for credit losses decreased by $322,000 or 2.0% to $15.7 million or 1.01% of total loans at June 30, 2026, as compared to $16.0 million or 1.13% of total loans at December 31, 2025, and $15.2 million or 1.11% of total loans at June 30, 2025. During the six months ending June 30, 2026, the Company reversed $551,000 in provision for credit losses and had no charge-offs or recoveries. Based on the results of the CECL model and management's evaluation of both quantitative and qualitative factors during the six months ending June 30, 2026, changes in the allowance for credit losses were adjusted accordingly.

The Bank had non-accrual loans totaling $11.2 million or 0.72% of total loans at June 30, 2026, as compared to $10.5 million or 0.74% of total loans at December 31, 2025. Non-accrual loans increased by $695,000 from December 31, 2025, primarily as a result of one commercial real estate loan which was reclassed to non-accrual status during the first quarter of 2026. The allowance for credit losses was 140.0% of non-accrual loans at June 30, 2026, compared to 152.4%, at December 31, 2025.

Capital

Total stockholders' equity decreased by $16.2 million, or 9.2%, to $159.2 million at June 30, 2026, from $175.4 million at December 31, 2025, due primarily to the Company's completion of a tender offer to repurchase 3.0 million shares of its common stock at $7.00 per share for an aggregate cost of $21.0 million. Reflecting the repurchase and balance sheet growth, the Company's regulatory capital ratios declined from December 31, 2025, to June 30, 2026: total capital to risk-weighted assets decreased to 12.45% from 14.93%. Tier 1 capital and common equity Tier 1 capital to risk-weighted assets decreased to 9.25% from 11.32%, and Tier 1 leverage ratio decreased to 8.40% from 10.22%. The Company and Bank continue to satisfy all applicable regulatory capital requirements to be considered well-capitalized at June 30, 2026.

 

About First Commerce Bancorp, Inc.

First Commerce Bancorp, Inc., is a financial services organization headquartered in Lakewood, New Jersey. The Bank, the Company's wholly owned subsidiary, provides businesses and individuals a wide range of loans, deposit products and retail and commercial banking services through its branch network located in Allentown, Bordentown, Closter, Englewood, Fairfield, Freehold, Jackson, Lakewood, Robbinsville and Teaneck, New Jersey. For more information, please go to www.firstcommercebk.com.

Forward-Looking Statements

This release, like many written and oral communications presented by First Commerce Bancorp Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "seek," "strive," "try," or future or conditional verbs such as "could," "may," "should," "will," "would," or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

In addition to the factors previously disclosed in prior Bank communications and those identified elsewhere, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the impact of changes in interest rates and in the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Commerce Bank's investment securities portfolio; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Commerce Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; 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)

										Variance
(dollars in thousands, except percentages and share data)		June 30, 2026				December 31, 2025				Amount				%
Assets
Cash and cash equivalents:
Cash on hand		$	1,804			$	2,573			$	(769	)			-29.9	%
Interest-bearing deposits in other banks			100,412				133,845				(33,433	)			-25.0	%
Total cash and cash equivalents			102,216				136,418				(34,202	)			-25.1	%
Investment securities:
Available-for-sale, at fair value			94,604				38,684				55,920				144.6	%
Held-to-maturity ("HTM"), at amortized cost			108,103				125,780				(17,677	)			-14.1	%
Less: Allowance for credit losses - HTM securities			(87	)			(119	)			32				-26.9	%
Held-to-maturity, net of allowance for credit losses			108,016				125,661				(17,645	)			-14.0	%
Total investment securities			202,620				164,345				38,275				23.3	%
Restricted stock			15,515				12,879				2,636				20.5	%
Loans receivable			1,561,358				1,418,701				142,657				10.1	%
Less: Allowance for credit losses			(15,697	)			(16,019	)			322				-2.0	%
Net loans receivable			1,545,661				1,402,682				142,979				10.2	%
Premises and equipment, net			11,880				10,966				914				8.3	%
Right-of-use asset			19,344				17,119				2,225				13.0	%
Accrued interest receivable			8,619				7,594				1,025				13.5	%
Bank owned life insurance			42,177				27,697				14,480				52.3	%
Other real estate owned			6,937				6,937				-				N/A
Deferred tax asset, net			3,271				3,496				(225	)			-6.4	%
Other assets			6,732				4,188				2,544				60.7	%
Total assets		$	1,964,972			$	1,794,321			$	170,651				9.5	%
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing		$	195,356			$	171,010			$	24,346				14.2	%
Interest-bearing			1,229,176				1,124,686				104,490				9.3	%
Total deposits			1,424,532				1,295,696				128,836				9.9	%
Borrowings			304,500				252,500				52,000				20.6	%
Subordinated notes			38,998				38,953				45				N/A
Accrued interest payable			2,059				1,965				94				4.8	%
Lease liability			20,919				18,612				2,307				12.4	%
Other liabilities			14,734				11,204				3,530				31.5	%
Total liabilities			1,805,742				1,618,930				186,812				11.5	%
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			91,318				91,201				117				0.1	%
Retained earnings			118,684				113,221				5,463				4.8	%
Treasury stock			(50,133	)			(28,852	)			(21,281	)			73.8	%
Accumulated other comprehensive loss			(639	)			(179	)			(460	)			257.0	%
Total stockholders' equity			159,230				175,391				(16,161	)			-9.2	%
Total liabilities and stockholders' equity		$	1,964,972			$	1,794,321			$	170,651				9.5	%
Shares issued			24,481,830				24,462,830
Shares outstanding			16,971,579				19,952,579
Treasury shares			7,510,251				4,510,251

 

First Commerce Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

		Three Months Ended								Variance
(dollars in thousands, except percentages and share data)		June 30, 2026				June 30, 2025				Amount				%
Interest and Dividend Income
Loans, including fees		$	23,426			$	18,415			$	5,011				27.2	%
Investment securities:
Available-for-sale			1,051				414				637				153.6	%
Held-to-maturity			1,575				1,896				(321	)			-16.9	%
Interest-bearing deposits with other banks			806				828				(22	)			-2.7	%
Restricted stock dividends			231				186				45				24.2	%
Total interest and dividend income			27,089				21,739				5,350				24.6	%
Interest expense:
Deposits			9,827				9,842				(15	)			-0.2	%
Borrowings			2,951				2,257				694				30.8	%
Subordinated notes			822				-				822				N/A
Total interest expense			13,600				12,099				1,501				12.4	%
Net interest income			13,489				9,640				3,849				39.9	%
Provision for credit losses			155				401				(246	)			-61.3	%
Provision for (reversal of) unfunded commitments for credit losses			(71	)			271				(342	)			-126.2	%
Provision for credit losses - HTM securities			(18	)			40				(58	)			-144.9	%
Total provision for credit losses			66				712				(646	)			-90.7	%
Net interest income after provision for (reversal of) credit losses			13,423				8,928				4,495				50.3	%
Non-interest Income:
Service charges and fees			470				289				181				62.8	%
Bank owned life insurance income			566				244				322				131.6	%
Other income			109				53				56				105.9	%
Total non-interest income			1,145				586				559				95.4	%
Non-Interest Expenses:
Salaries and employee benefits			5,138				4,681				457				9.8	%
Occupancy and equipment expense			1,466				1,084				382				35.3	%
Advertising and marketing			21				74				(53	)			-71.5	%
Professional fees			631				427				204				47.7	%
Data processing expense			363				333				30				9.1	%
FDIC insurance assessment			285				267				18				6.7	%
Other operating expenses			1,697				940				757				80.6	%
Total non-interest expenses			9,601				7,806				1,795				23.0	%
Income before income taxes			4,967				1,708				3,259				190.7	%
Income tax provision			1,263				385				878				228.1	%
Net income		$	3,704			$	1,323			$	2,381				179.9	%
Earnings per common share - Basic		$	0.22			$	0.07			$	0.15				234.1	%
Earnings per common share - Diluted			0.22				0.07				0.15				234.1	%
Weighted average shares outstanding - Basic			15,972				20,095				(4,123	)			-20.5	%
Weighted average shares outstanding - Diluted			15,983				20,095				(4,112	)			-20.5	%

 

First Commerce Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

		Six Months Ended								Variance
(dollars in thousands, except percentages and share data)		June 30, 2026				June 30, 2025				Amount				%
Interest and Dividend Income
Loans, including fees		$	44,757			$	35,803			$	8,954				25.0	%
Investment securities:
Available-for-sale			1,819				597				1,222				204.9	%
Held-to-maturity			3,325				3,570				(245	)			-6.9	%
Interest-bearing deposits with other banks			1,640				1,821				(181	)			-9.9	%
Restricted stock dividends			474				406				68				16.7	%
Total interest and dividend income			52,015				42,197				9,818				23.3	%
Interest expense:
Deposits			19,312				19,573				(261	)			-1.3	%
Borrowings			5,481				4,363				1,118				25.6	%
Subordinated notes			1,651				-				1,651				N/A
Total interest expense			26,444				23,936				2,508				10.5	%
Net interest income			25,571				18,261				7,310				40.0	%
Provision for credit losses			(322	)			414				(736	)			-177.8	%
Provision for (reversal of) unfunded commitments for credit losses			(197	)			290				(487	)			-168.0	%
Provision for credit losses - HTM securities			(32	)			91				(123	)			-135.1	%
Total provision for credit losses			(551	)			795				(1,346	)			-169.3	%
Net interest income after provision for (reversal of) credit losses			26,122				17,466				8,656				49.6	%
Non-interest Income:
Service charges and fees			823				582				241				41.5	%
Bank owned life insurance income			1,093				484				609				125.6	%
Other income			218				914				(696	)			-76.1	%
Total non-interest income			2,134				1,980				154				7.8	%
Non-Interest Expenses:
Salaries and employee benefits			10,272				9,421				851				9.0	%
Occupancy and equipment expense			2,818				2,241				577				25.8	%
Advertising and marketing			129				129				-				N/A
Professional fees			1,247				936				311				33.2	%
Data processing expense			715				675				40				6.0	%
FDIC insurance assessment			570				488				82				16.8	%
Other operating expenses			2,942				1,771				1,171				66.1	%
Total non-interest expenses			18,693				15,661				3,032				19.4	%
Income before income taxes			9,563				3,785				5,778				152.6	%
Income tax provision			2,404				788				1,616				205.1	%
Net income		$	7,159			$	2,997			$	4,162				138.8	%
Earnings per common share - Basic		$	0.40			$	0.15			$	0.25				168.7	%
Earnings per common share - Diluted			0.40				0.15				0.25				168.6	%
Weighted average shares outstanding - Basic			17,990				20,242				(2,252	)			-11.1	%
Weighted average shares outstanding - Diluted			18,001				20,243				(2,241	)			-11.1	%

 

First Commerce Bancorp, Inc.

Net Interest Margin Analysis

(Unaudited)

		Three months ended June 30, 2026												Three months ended June 30, 2025
		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		$	93,237			$	806				3.47	%		$	79,350			$	828				4.19	%
Investment securities:
Available-for-sale			95,774				1,051				4.39	%			26,726				414				6.20	%
Held-to-maturity			113,975				1,575				5.53	%			153,307				1,896				4.95	%
Total investment securities			209,749				2,626				5.01	%			180,033				2,310				5.13	%
Restricted stock			15,135				231				6.13	%			10,886				186				6.82	%
Loans receivable:
Consumer loans			945				12				5.09	%			978				4				1.74	%
Home equity loans			1,515				28				7.41	%			2,176				48				8.88	%
Construction loans			75,719				1,528				7.98	%			116,684				2,334				7.91	%
Commercial loans			42,197				948				8.89	%			45,798				915				7.90	%
Commercial mortgage loans			1,361,827				20,546				5.97	%			1,095,592				14,628				5.28	%
Residential mortgage loans			8,559				81				3.80	%			10,223				121				4.76	%
SBA loans			15,564				283				7.19	%			21,095				365				6.84	%
Total loans receivable			1,506,326				23,426				6.24	%			1,292,546				18,415				5.71	%
Total interest-earning assets			1,824,447				27,089				5.96	%			1,562,815				21,739				5.58	%
Non-interest-earning assets:
Allowance for credit losses			(15,543	)											(14,826	)
Cash on hand			2,519												2,042
Other assets			90,824												67,098
Total non-interest-earning assets			77,800												54,314
Total assets		$	1,902,247											$	1,617,129
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Interest-bearing checking accounts		$	100,520			$	576				2.30	%		$	77,441			$	424				2.19	%
NOW accounts			5,045				30				2.39	%			5,908				44				2.95	%
Money market accounts			295,400				2,062				2.80	%			252,446				2,052				3.26	%
Savings accounts			81,042				499				2.47	%			52,577				317				2.42	%
Certificates of deposit			513,737				4,764				3.72	%			494,811				5,091				4.13	%
Brokered CDs			195,044				1,896				3.90	%			163,238				1,914				4.70	%
Borrowings			301,632				2,951				3.92	%			208,291				2,257				4.35	%
Subordinated notes			38,972				822				8.34	%			-				-				N/A
Total interest-bearing liabilities			1,531,392			$	13,600				3.56	%			1,254,712			$	12,099				3.87	%
Non-interest-bearing liabilities:														\
Demand deposits			177,259												160,087
Other liabilities			35,570												30,927
Total non-interest bearing liabilities			212,829												191,014
Stockholders' equity			158,026												171,403
Total liabilities and stockholders' equity		$	1,902,247											$	1,617,129
Net interest spread											2.40	%											1.71	%
Net interest margin						$	13,489				2.97	%						$	9,640				2.47	%

First Commerce Bancorp, Inc.

Net Interest Margin Analysis

(Unaudited)

		Six months ended June 30, 2026												Six months ended June 30, 2025
		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		$	94,979			$	1,640				3.48	%		$	88,528			$	1,821				4.15	%
Investment securities:
Available-for-sale			75,901				1,819				4.79	%			19,241				597				6.20	%
Held-to-maturity			118,119				3,325				5.63	%			146,658				3,570				4.87	%
Total investment securities			194,020				5,144				5.30	%			165,899				4,167				5.02	%
Restricted stock			13,830				474				6.85	%			10,164				406				7.99	%
Loans receivable:
Consumer loans			971				24				4.99	%			930				11				2.41	%
Home equity loans			1,533				58				7.63	%			2,279				98				8.70	%
Construction loans			65,933				2,658				8.01	%			110,870				4,391				7.88	%
Commercial loans			41,077				1,827				8.85	%			44,375				1,759				7.89	%
Commercial mortgage loans			1,334,769				39,471				5.88	%			1,077,946				28,565				5.27	%
Residential mortgage loans			8,154				147				3.64	%			10,906				258				4.76	%
SBA loans			15,770				572				7.21	%			21,112				721				6.80	%
Total loans receivable			1,468,207				44,757				6.15	%			1,268,418				35,803				5.69	%
Total interest-earning assets			1,771,036				52,015				5.92	%			1,533,009				42,197				5.55	%
Non-interest-earning assets:
Allowance for credit losses			(15,777	)											(14,813	)
Cash on hand			2,870												1,985
Other assets			89,905												67,523
Total non-interest-earning assets			76,998												54,695
Total assets		$	1,848,034											$	1,587,704
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Interest-bearing checking accounts		$	96,807			$	1,085				2.26	%		$	77,410			$	828				2.16	%
NOW accounts			4,582				55				2.42	%			7,261				105				2.93	%
Money market accounts			286,075				3,951				2.79	%			255,268				4,159				3.29	%
Savings accounts			79,010				947				2.42	%			46,059				511				2.24	%
Certificates of deposit			520,940				9,856				3.82	%			490,578				10,217				4.20	%
Brokered CDs			176,287				3,418				3.91	%			159,120				3,753				4.76	%
Borrowings			273,351				5,481				4.04	%			192,671				4,363				4.57	%
Subordinated notes			38,962				1,651				8.47	%			-				-				N/A
Total interest-bearing liabilities			1,476,014			$	26,444				3.61	%			1,228,367			$	23,936				3.93	%
Non-interest-bearing liabilities:
Demand deposits			173,991												157,283
Other liabilities			33,574												30,066
Total non-interest bearing liabilities			207,565												187,349
Stockholders' equity			164,455												171,988
Total liabilities and stockholders' equity		$	1,848,034											$	1,587,704
Net interest spread											2.31	%											1.62	%
Net interest margin						$	25,571				2.91	%						$	18,261				2.40	%

 

First Commerce Bancorp, Inc.

Selected Financial Data

(Unaudited)

		As of and for the quarters ended
(In thousands, except per share data)		6/30/2026				3/31/2026				12/31/2025				9/30/2025				6/30/2025
Summary earnings:
Interest income		$	27,089			$	24,926			$	25,321			$	24,113			$	21,739
Interest expense			13,600				12,844				12,667				13,266				12,099
Net interest income			13,489				12,082				12,654				10,847				9,640
Provision for (reversal of) credit losses			66				(617	)			348				452				712
Net interest income after provision for (reversal of) credit losses			13,423				12,699				12,306				10,395				8,928
Non-interest income			1,145				990				732				859				586
Non-interest expense			9,601				9,092				8,851				8,485				7,806
Income before income tax expense			4,967				4,597				4,187				2,770				1,708
Income tax expense			1,263				1,142				1,010				687				385
Net income		$	3,704			$	3,455			$	3,177			$	2,082			$	1,323
Per share data:
Earnings per share - basic		$	0.22			$	0.18			$	0.16			$	0.10			$	0.07
Earnings per share - diluted			0.22				0.18				0.16				0.10				0.07
Cash dividend declared			0.05				-				-				-				-
Book value at period end			9.38				9.22				8.79				8.63				8.51
Shares outstanding at period end			16,972				16,965				19,953				20,010				20,096
Basic weighted average shares outstanding			15,972				19,021				19,994				20,077				20,095
Fully diluted weighted average shares outstanding			15,983				19,030				20,011				20,079				20,095
Balance sheet data (at period end):
Total assets		$	1,964,972			$	1,820,418			$	1,794,321			$	1,709,669			$	1,689,642
Investment securities, available-for-sale			94,604				83,492				38,684				26,605				26,605
Investment securities, held-to-maturity			108,016				116,843				125,661				145,572				153,324
Total loans			1,561,358				1,467,440				1,418,701				1,395,847				1,376,116
Allowance for credit losses			(15,697	)			(15,541	)			(16,019	)			(15,866	)			(15,220	)
Total deposits			1,424,532				1,323,748				1,295,696				1,282,904				1,247,358
Stockholders' equity			159,230				156,406				175,391				172,610				171,000
Cash dividends			849				-				-				-				-
Selected performance ratios:
Return on average total assets			0.78	%			0.78	%			0.73	%			0.48	%			0.33	%
Return on average stockholders' equity			9.40	%			8.20	%			7.24	%			4.79	%			3.10	%
Dividend payout ratio			22.92	%			N/A				N/A				N/A				N/A
Average yield on earning assets			5.96	%			5.89	%			6.07	%			5.79	%			5.58	%
Average cost of funding liabilities			3.56	%			3.67	%			3.74	%			3.95	%			3.87	%
Net interest margin			2.97	%			2.85	%			3.03	%			2.61	%			2.47	%
Efficiency ratio			65.61	%			69.55	%			66.12	%			72.48	%			76.33	%
Non-interest income to average assets			0.24	%			0.22	%			0.17	%			0.20	%			0.15	%
Non-interest expenses to average assets			2.02	%			2.06	%			2.04	%			1.97	%			1.94	%
Asset quality ratios:
Non-performing loans to total loans			0.72	%			0.78	%			0.74	%			0.89	%			1.30	%
Non-performing assets to total assets			0.92	%			1.01	%			0.97	%			1.13	%			1.06	%
Allowance for credit losses to non-performing loans			140.02	%			136.16	%			152.35	%			128.38	%			84.97	%
Allowance for credit losses to total loans			1.01	%			1.06	%			1.13	%			1.14	%			1.11	%
Net recoveries (charge-offs) to average loans			0.00	%			0.00	%			-0.02	%			0.01	%			0.02	%
Liquidity and capital ratios:
Net loans to deposits			108.50	%			109.68	%			108.26	%			107.57	%			109.10	%
Average loans to average deposits			110.11	%			109.39	%			111.04	%			108.43	%			107.13	%
Total stockholders' equity to total assets			8.10	%			8.59	%			9.77	%			10.10	%			10.12	%
Total capital to risk-weighted assets			12.45	%			12.93	%			14.93	%			12.32	%			12.53	%
Tier 1 capital to risk-weighted assets			9.25	%			9.56	%			11.32	%			11.24	%			11.44	%
Common equity tier 1 capital ratio to risk-weighted assets			9.25	%			9.56	%			11.32	%			11.24	%			11.44	%
Tier 1 leverage ratio			8.40	%			8.76	%			10.22	%			10.12	%			10.59	%

 

Press Contact:

Donald Mindiak
First Commerce Bancorp, Inc.
Lakewood, NJ 08701
(732) 364-0032
dmindiak@firstcommercebk.com
http://firstcommercebk.com

SOURCE: First Commerce Bancorp, Inc.

View the original press release on ACCESS Newswire

FAQ

How did First Commerce Bancorp (CMRB) perform in Q2 2026?

First Commerce Bancorp reported Q2 2026 net income of $3.7 million, up from $1.3 million a year earlier. According to the company, basic EPS rose to $0.22, supported by stronger net interest income, higher margins and improved asset quality metrics.

What dividend did First Commerce Bancorp (CMRB) declare for Q2 2026?

First Commerce Bancorp’s board declared a $0.05 per-share cash dividend. According to the company, shareholders of record on August 10, 2026 will be paid on August 24, 2026, reflecting ongoing capital return alongside its share repurchase activity.

How did loans and deposits change at First Commerce Bancorp (CMRB) by June 30, 2026?

Total loans reached $1.56 billion and deposits $1.42 billion at June 30, 2026. According to the company, loans increased $142.7 million (10.1%) and deposits rose $128.8 million (9.9%) from December 31, 2025, driven by organic growth and funding initiatives.

What happened to First Commerce Bancorp’s (CMRB) profitability ratios in Q2 2026?

Quarter-to-date annualized ROA increased to 0.78% and ROE to 9.40%. According to the company, this compares with 0.33% ROA and 3.10% ROE a year earlier, reflecting higher net interest margin and improved operating efficiency.

How did asset quality and credit metrics trend for First Commerce Bancorp (CMRB) in 2026?

Non-performing loans fell to 0.72% of total loans at June 30, 2026, from 1.30% a year earlier. According to the company, allowance for credit losses was $15.7 million, or 1.01% of total loans, following modest provision activity in Q2.

What share repurchase actions did First Commerce Bancorp (CMRB) take in 2026?

First Commerce Bancorp completed a tender offer repurchasing 3.0 million shares at $7.00 per share. According to the company, the total cost was $21.0 million, reducing stockholders’ equity and contributing to a lower Tier 1 leverage ratio.