First Commerce Bank Earns $5.4 Million and $12.6 Million for the Three and Nine Months Ended September 30, 2022 and Declares a Quarterly Cash Dividend of $0.04 per Common Share

Rhea-AI Summary

First Commerce Bank (OTC PINK:CMRB) reported a net income of $5.4 million for Q3 2022, up from $4.0 million in Q3 2021. For the first nine months, net income remained stable at $12.6 million. Earnings per share were $0.23 for Q3 2022 versus $0.17 in Q3 2021. The Board declared a quarterly cash dividend of $0.04 per share, payable on November 23, 2022. Key drivers for income growth include an increase in net interest income and non-interest income, partly offset by rising non-interest expenses due to increased salaries and benefits.

Positive

• Net income rose to $5.4 million for Q3 2022, up from $4.0 million in Q3 2021.
• Earnings per share increased to $0.23 for Q3 2022 from $0.17 in Q3 2021.
• Quarterly cash dividend of $0.04 declared, signaling confidence in financial health.
• Net interest income increased by $1.19 million (10.7%) to $12.34 million for Q3 2022.
• Total loans grew by $155.2 million (17.1%) to $1.07 billion since December 31, 2021.

Negative

• Non-interest expenses rose by $3.26 million (20.5%) for the nine months ended September 30, 2022, impacting net income.
• Salaries and employee benefits increased by $2.5 million (26.5%) compared to the same period last year, indicating higher operational costs.

LAKEWOOD, NJ / ACCESSWIRE / October 27, 2022 / First Commerce Bank (the "Bank") (OTC PINK:CMRB) today reported net income of $5.4 million and $12.6 million, respectively, for the three and nine months ended September 30, 2022, as compared to $4.0 million and $12.6 million, respectively, for the three and nine months ended September 30, 2021. Basic earnings per common share for the three and nine months ended September 30, 2022, were $0.23 and $0.54 respectively, compared to $0.17 and $0.55 for the three and nine months ended September 30, 2021. The Board of Directors unanimously approved and declared a quarterly cash dividend of $0.04 per common share payable to shareholders on November 23, 2022 for shareholders of record as of November 9, 2022.

Regarding the performance of the Bank, President & CEO Donald Mindiak stated, "We are proud to have declared and paid our first special cash dividend of $0.35/share in September and equally proud of the declaration of our first regular quarterly cash dividend. The implementation of the Bank's initiative to deploy excess liquidity into higher yielding assets in the form of quality credit facilities and federally sponsored investment securities has proven successful as witnessed by improvements in net income, net interest margin and quarterly earnings per share results."

He continued, "The changes in net income for the 2022 periods compared to the 2021 periods primarily reflect increases in net interest income and non-interest income, partially offset by an increase in non-interest expense. The increase in net interest income resulted primarily from the redeployment of excess liquidity and growth in loans and investments, coupled with the active management of the pricing of interest paying liabilities. The increase in non-interest income resulted primarily from the impact of the income for the nine months ended September 30, 2022 derived from our BOLI investment acquired in the fourth quarter of 2021. The increase in non-interest expense resulted from increases in salary and benefits expense and the impact of a new bonus plan designed to attract and retain employees in a competitive labor market. Our effective tax rate decreased slightly during the 2022 fiscal year as a result of the BOLI purchase consummated during the fourth quarter of 2021 with the Allowance for Loan and Lease Losses adjusted accordingly relative to loan growth and quantitatively measured asset quality metrics.

He concluded, "We have benefitted from strong loan demand in the markets that we serve and will endeavor to avail ourselves to market opportunities brought about as a result of recent industry merger and acquisition activity. We continue to monitor economic and geopolitical events for their potential impact on our business customers and shareholders."

Financial Highlights

• Net interest margin increased by seventeen basis points to 4.28% for the third quarter of 2022 as compared to 4.11% for the third quarter of 2021 and increased by sixteen basis points to 4.14% year-to-date for 2022 as compared to 3.98% year-to-date for 2021.
• Total yield on interest earning assets increased by thirty-six basis points to 4.66% for the third quarter of 2022 as compared to 4.30% for the third quarter of 2021 and increased by twelve basis points to 4.39% year-to-date for 2022 as compared to 4.27% year-to-date for 2021.
• The cost of funds increased by twenty-seven basis points to 0.63% for the third quarter of 2022 compared to 0.36% for the third quarter of 2021 and remained unchanged at 0.42% for the year-to-date 2022 and 2021 time periods.
• The efficiency ratio was 53.81% year-to-date for 2022 as compared to 49.51% year-to-date for 2021.
• Loans receivable (net) increased by $155.2 million or 17.1% to $1.07 billion at September 30, 2022, as compared to $909.31 million at December 31, 2021.
• The loans receivable (net) to deposits ratio increased to 105.39% at September 30, 2022, from 92.45% at September 30, 2021.
• Return on average equity was 9.39% at September 30, 2022 compared to 10.01% at September 30, 2021.
• Return on average assets was 1.42% at September 30, 2022 compared to 1.54% at September 30, 2021.

Balance Sheet Review

Total assets increased by $114.95 million or 10.1% to $1.25 billion at September 30, 2022 from $1.13 billion at December 31, 2021. The increase in total assets was primarily attributable to increases in investment securities and loans receivable, net, partially offset by a decrease in total cash and cash equivalents.

Total cash and cash equivalents decreased by $79.7 million or 70.3% to $33.7 million at September 30, 2022 from $113.3 million at December 31, 2021. This decrease was primarily due to the investment of excess liquidity into investment securities and loans receivable, net.

Loans receivable, net, increased by $155.2 million or 17.1% to $1.07 billion at September 30, 2022 from $909.31 million at December 31, 2021. Total loan increases for the nine months ended September 30, 2022 occurred primarily as a result of a $174.5 million increase in commercial mortgages and a $14.3 million increase in construction loans, partially offset by a $16.7 million decrease in SBA loans and a $14.6 million decrease in commercial loans. The allowance for loan losses decreased by $80,000 to $17.65 million or 1.63% of gross loans at September 30, 2022 as compared to $17.73 million or 1.91% of gross loans at December 31, 2021.

Total investment securities increased by $37.9 million or 81.9% to $84.1 million at September 30, 2022 from $46.2 million at December 31, 2021. The increase in investment securities resulted primarily from investment security purchases totaling $54.1 million, partially offset by $12.5 million in mortgage-backed security paydowns and $2.3 million in municipal and agency bond maturities. In addition, the unrealized gain on the available-for-sale portfolio re-priced down by $1.4 million due to the prevailing interest rate environment. Because the Bank does not intend to sell the investments and it is not more than likely than not that the Bank will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Bank does not consider those investments to be other-than-temporarily impaired at September 30, 2022.

Deposit liabilities increased by $68.2 million or 7.2% to $1.01 billion at September 30, 2022 from $941.9 million at December 31, 2021. The increase in total deposits occurred primarily as a result of an $88.7 million increase in time deposits, a $27.4 million increase in money market deposits and an $18.7 million increase in non-interest-bearing deposits, partially offset by decreases of $56.5 million, $5.7 million and $4.4 million in savings, NOW and interest-bearing checking deposits, respectively.

Stockholders' equity increased by $4.95 million or 2.9% to $177.3 million at September 30, 2022 from $172.3 million at December 31, 2021. The increase in stockholders' equity was primarily attributable to net income of $12.6 million for the nine months ended September 30, 2022 and increases of $938,000 and $804,000 in common stock and additional paid in capital, respectively as a result of the exercise of certain stock options, partially offset by a decrease of $8.3 million in undivided profits related to the declaration and payment of the special cash dividend paid during the third quarter and a decrease in accumulated other comprehensive income of $1.05 million related to the mark-to-market valuation of the available-for-sale investment portfolio.

Three Months of Operations

Net interest income increased by $1.19 million or 10.7% to $12.34 million for the three months ended September 30, 2022 from $11.15 million for the three months ended September 30, 2021.

Interest income increased by $1.95 million or 16.3% to $13.94 million for the three months ended September 30, 2022 from $11.99 million for the three months ended September 30, 2021. The increase in interest income resulted primarily from an increase in the average balance of loans receivable, net of $155.5 million or 17.8% to $1.03 billion million for the three months ended September 30, 2022 compared to $872.7 million for the three months ended September 30, 2021 and an increase in the average balance of investment securities of $36.1 million or 72.0% to $86.2 million for the three months ended September 30, 2022 from $50.1 million for the three months ended September 30, 2021. Partially offsetting the increase in interest income was a decrease in loan fees of $810,000 or 75.6% to $262,000 for the three months ended September 30, 2022 from $1.1 million for the three months ended September 30, 2021. The decrease in loan fees is primarily related to the reduction in fees recognized from the Paycheck Protection Program - (PPP) ($466,000) as the bulk of the Bank's PPP loans were forgiven prior to the 2022 period and fees were earned in 2021. In addition, there was also a decrease in prepayment penalties collected of $324,000 for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021.

Interest expense increased by $755,000 or 89.5% to $1.6 million for the three months ended September 30, 2022 from $844,000 for the three months ended September 30, 2021. The increase in interest expense occurred primarily as a result of an increase in the average balance of interest-bearing deposit liabilities of $40.9 million or 5.5% to $780.2 million for the three months ended September 30, 2022 from $739.3 million for the three months ended September 30, 2021. In addition, there was an increase in the average balance of interest-bearing wholesale borrowings from the Federal Home Loan Bank of New York, of $11.6 million for the three months ended September 30, 2022 from no such borrowing for the three months ended September 30, 2021. The average cost of funds increased by twenty-seven basis points to 0.63% for the three months ended September 30, 2022 from 0.36% for the three months ended September 30, 2021. The increase in the average balance of interest-bearing liabilities occurred as a result of the Bank's effort to grow the balance sheet. The increase in the average cost of funds resulted primarily from the increase in market interest rates for liability pricing as the Federal Reserve continues its efforts to reduce inflation by systematically increasing market interest rates.

Net interest margin increased by seventeen basis points to 4.28% for the three months ended September 30, 2022 compared to 4.11% for the three months ended September 30, 2021. The increase in the net interest margin is primarily attributable an increase in the average balance of interest earning assets of $78.5 million or 7.2% to $1.17 billion for the three months ended September 30, 2022 compared to $1.09 billion for the three months ended September 30, 2021 and an increase of thirty-six basis points on the yield of average interest earning assets to 4.66% for the three months ended September 30, 2022 from 4.30% for the three months ended September 30, 2021.

Non-interest income increased by $228,000 or 127.4% to $407,000 for the three months ended September 30, 2022 from $179,000 for the three months ended September 30, 2021. The increase in total non-interest income resulted primarily from BOLI income of $168,000 for the three months ended September 30, 2022 from no such income for the three months ended September 30, 2021. The Bank made a $25.0 million BOLI purchase during the fourth quarter of 2021 which accounts for the lack of BOLI income for the three months ended September 30, 2021. This was partially offset by a decrease in service charges and fees of $8,000 or 4.7% to $170,000 for the three months ended September 30, 2022 from $178,000 for the three months ended September 30, 2021.

Non-interest expense increased by $190,000 or 3.1% to $6.3 million for the three months ended September 30, 2022 compared to $6.1 million for the three months ended September 30, 2021. Salaries and employee benefits increased by $504,000 or 14.7% to $3.9 million for the three months ended September 30, 2022 as compared to $3.4 million for the three months ended September 30, 2021. The increase in salaries and employee benefits resulted primarily from a 27% year-over-year increase in employee benefits costs as well as increased salary expense. In an effort to both retain and attract qualified personnel, the Bank instituted an industry competitive bonus plan which was not in place in 2021. Occupancy and equipment expense increased by $11,000 or 1.3% to $839,000 for the three months ended September 30, 2022 as compared to $828,000 for the three months ended September 30, 2021. The increase in occupancy and equipment expense occurred primarily as a result of the renewal and increase in several service contracts. Other non-interest expense decreased by $325,000 or 17.9% to $1.49 million for the three months ended September 30, 2022 from $1.82 million for the three months ended September 30, 2021. Other non-interest expense consists primarily of marketing, professional fees, data processing, FDIC assessments and other expenses. The decrease in other non-interest expense occurred primarily as a result of a decrease in other expenses of $446,000 or 37.2% to $751,000 for the three months ended September 30, 2022 from $1.2 million for the three months ended September 30, 2021, partially offset by increases of $87,000, $29,000 and $25,000 in FDIC assessment, marketing and professional fees, respectively for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021.

The income tax provision increased by $307,000 or 21.9% to $1.7 million for the three months ended September 30, 2022 from $1.4 million for the three months ended September 30, 2021. The increase in the income tax provision resulted primarily from an increase in earnings before income taxes of $1.8 million or 33.1% to $7.2 million for the three months ended September 30, 2022 from $5.4 million for the three months ended September 30, 2021.

Nine Months of Operations

Net interest income increased by $2.9 million or 9.1% to $34.6 million for the nine months ended September 30, 2022 from $31.7 million for the nine months ended September 30, 2021.

Interest income increased by $3.1 million or 8.9% to $37.7 million for the nine months ended September 30, 2022 from $34.6 million for the nine months ended September 30, 2021. The increase in interest income resulted primarily from an increase in the average balance of loans receivable, net of $91.2 million or 10.5% to $960.2 million for the nine months ended September 30, 2022 compared to $869.1 million for the nine months ended September 30, 2021 and an increase in the average balance of investment securities of $15.8 million or 28.9% to $70.6 million for the nine months ended September 30, 2022 from $54.8 million for the nine months ended September 30, 2021. Partially offsetting the increase in interest income was a decrease in loan fees of $660,000 or 31.0% to $1.47 million for the nine months ended September 30, 2022 from $2.13 million for the nine months ended September 30, 2021. The decrease in loan fees was primarily related to the reduction in fees recognized from the Paycheck Protection Program (PPP) of $959,000 as the bulk of the Bank's loans were forgiven and fees earned in 2021. The lower PPP fees were partially offset by higher prepayment penalties of $204,000 collected during the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021.

Interest expense increased by $201,000 or 7.0% to $3.1 million for the nine months ended September 30, 2022 from $2.9 million for the nine months ended September 30, 2021. The increase in interest expense occurred primarily as a result of an increase in the average balance of interest bearing deposit liabilities of $31.1 million or 4.3% to $756.7 million for the nine months ended September 30, 2022 from $725.6 million for the nine months ended September 30, 2021, and an increase in the average balance of interest bearing wholesale borrowings from the Federal Home Loan Bank of New York, of $3.9 million for the nine months ended September 30, 2022 from no such borrowing for the nine months ended September 30, 2021. The average cost of funds remained consistent year over year at 0.42% for the nine months ended September 30, 2022, and 2021. The increase in the average balance of interest-bearing liabilities occurred as a result of the Bank's effort grow the balance sheet.

Net interest margin increased by sixteen basis points to 4.14% for the nine months ended September 30, 2022 compared to 3.98% for the nine months ended September 30, 2021. The increase in the net interest margin is primarily attributable an increase in the average balance of interest earning assets of $62.8 million or 5.9% to $1.13 billion for the nine months ended September 30, 2022 compared to $1.07 billion for the nine months ended September 30, 2021 and an increase of twelve basis points in the yield of average interest earning assets to 4.39% for the nine months ended September 30, 2022 from 4.27% for the nine months ended September 30, 2021.

Non-interest income increased by $612,000 or 126.6% to $1.1 million for the nine months ended September 30, 2022 from $483,000 for the nine months ended September 30, 2021. The increase in total non-interest income resulted primarily from BOLI income of $494,000 for the nine months ended September 30, 2022 from no such income for the nine months ended September 30, 2021. The Bank made a $25.0 million BOLI purchase during the fourth quarter of 2021 which accounts for the lack of BOLI income for the nine months ended September 30, 2021. In addition, there was a loss on sale of REO of $116,000 for the nine months ended September 30, 2021 compared to a gain on sale of REO of $65,000 for the nine months ended September 30, 2022, increasing other non-interest income by $181,000 or 155.8%. This was partially offset by a decrease in service charges and fees of $78,000 or 13.5% to $502,000 for the nine months ended September 30, 2022 from $580,000 for the nine months ended September 30, 2021.

Non-interest expense increased by $3.26 million or 20.5% to $19.2 million for the nine months ended September 30, 2022 compared to $15.9 million for the nine months ended September 30, 2021. Salaries and employee benefits increased by $2.5 million or 26.5% to $12.0 million for the nine months ended September 30, 2022 as compared to $9.5 million for the nine months ended September 30, 2021. The increase in salaries and employee benefits resulted primarily from a 27% year-over-year increase in employee benefits costs as well increased salary expense. In an effort to both retain and attract qualified personnel, the Bank instituted an industry competitive bonus plan which was not in place in 2021. Occupancy and equipment expense increased by $101,000 or 4.0% to $2.6 million for the nine months ended September 30, 2022 as compared to $2.5 million for the nine months ended September 30, 2021. The increase in occupancy and equipment expense occurred primarily as a result of the renewal and increase in several service contracts. Other non-interest expense increased by $646,000 or 16.3% to $4.6 million for the nine months ended September 30, 2022 from $3.9 million for the nine months ended September 30, 2021. Other non-interest expense consists primarily of marketing, professional fees, data processing, FDIC assessments and other expenses. The increase in other non-interest expense occurred primarily as a result of increases of $287,000, $264,000, $56,000 and $54,000, respectively, in FDIC assessment, other expenses, marketing and professional fees, partially offset by a decrease of $15,000 in data processing.

The income tax provision decreased by $216,000 or 5.0% to $4.15 million for the nine months ended September 30, 2022 from $4.36 million for the nine months ended September 30, 2021. The decrease in the income tax provision resulted primarily from a decrease in earnings before income taxes of $263,000 or 1.5% to $16.7 million for the nine months ended September 30, 2022 from $16.9 million for the nine months ended September 30, 2021 and a reduction in the effective tax rate to 24.8% for the nine months ended September 30, 2022 from 25.7% for the nine months ended September 30, 2021.

Asset Quality

The allowance for loan losses decreased by $80,000 or 0.46% and increased by $75,000 or 0.42% from December 31, 2021 and September 30, 2021, respectively to $17.65 million at September 30, 2022 from $17.73 million at December 31, 2021 and $17.58 million at September 30, 2021. Changes in the allowance for loan and lease losses is calculated and adjusted quarterly and accordingly, relative to loan growth and quantitatively measured asset quality metrics. Total loans, gross, increased by $155.2 million or 16.7% to $1.08 billion at September 30, 2022 from $927.0 million at December 31, 2021 and $203.8 million or 23.2% from $878.4 million at September 30, 2021. The Bank had non-accrual loans totaling $17.4 million or 1.61% of gross loans at September 30, 2022 as compared to $8.8 million or 0.94% of gross loans at December 31, 2021 and $7.9 million or 0.89% of gross loans at September 30, 2021.

The allowance for loan losses was $17.6 million or 1.63% of gross loans at September 30, 2022 as compared to $17.7 million or 1.91% of gross loans at December 31, 2021 and $17.6 million or 2.00% of gross loans at September 30, 2021. The allowance for loan losses was 101.7% of non-accrual loans at September 30, 2022, 202.1% of non-accrual loans at December 31, 2021 and 222.8% of non-accrual loans at September 30, 2021.

About First Commerce Bank

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

Forward-Looking Statements

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

In addition to the factors previously disclosed in prior Bank communications and those identified elsewhere, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the impact of the COVID-19 pandemic on the Bank, its operations and its customers, changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of the Bank's products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with certain corporate initiatives; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.

CONTACT:

David Onderko
Senior Vice President
Chief Financial Officer
105 River Avenue
Lakewood NJ 08701-4267
Phone: (732) 364-0032 x1245
Direct: (732) 719-6516
Fax: (732) 364-0042
donderko@firstcommercebk.com

FIRST COMMERCE BANK
Consolidated Balance Sheets
(Unaudited)

														September 30, 2022 vs.
														December 31, 2021								September 30, 2021
		September 30,				December 31,				September 30,
(In thousands, except percentages)		2022				2021				2021				Amount				%				Amount				%
Assets
Cash and Cash Equivalents:
Cash on hand$		$	1,498			$	1,736			$	1,529			$	(238	)			-13.7	%		$	(31	)			-2.0	%
Interest bearing deposits in other banks			32,184				111,602				168,254				(79,418	)			-71.2	%			(136,070	)			-80.9	%
Total cash and cash equivalents			33,682				113,338				169,783				(79,656	)			-70.3	%			169,783				100.0	%
Investment Securities HTM, at amortized cost			69,736				23,611				22,609				46,125				195.4	%			47,127				208.4	%
Investment Securities AFS, at fair value			14,371				22,617				24,593				(8,246	)			-36.5	%			(10,222	)			-41.6	%
Restricted stock			2,731				945				945				1,786				189.0	%			1,786				189.0	%
Loans Receivable, net of ALLL			1,064,558				909,312				860,802				155,246				17.1	%			203,756				23.7	%
Premises and equipment			15,912				16,385				16,618				(473	)			-2.9	%			(706	)			-4.2	%
Right-of-Use Asset			9,082				9,368				9,462				(286	)			-3.1	%			(380	)			-4.0	%
Bank Owned Life Insurance			25,609				25,115				-				494				2.0	%			25,609				0.0	%
Other Real Estate Owned			4,201				4,345				4,201				(144	)			-3.3	%			-				0.0	%
Deferred tax asset			3,990				3,805				3,228				185				4.9	%			762				23.6	%
Accrued interest receivable			4,276				4,433				4,594				(157	)			-3.5	%			(318	)			-6.9	%
Other assets			1,241				1,163				1,147				78				6.7	%			94				8.2	%
Total Assets		$	1,249,389			$	1,134,437			$	1,117,982			$	114,952				10.1	%		$	131,407				11.8	%
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing		$	230,759			$	212,017			$	199,073			$	18,742				8.8	%		$	31,686				15.9	%
Interest bearing			779,379				729,910				732,077				49,469				6.8	%			47,302				6.5	%
Total Deposits			1,010,138				941,927				931,150				68,211				7.2	%			78,988				8.5	%
Total Borrowings			37,500				-				-				37,500				0.0	%			37,500				0.0	%
Accrued Interest Payable			398				101				109				297				294.1	%			289				265.1	%
Lease Liability			9,594				9,791				9,853				(197	)			-2.0	%			(259	)			-2.6	%
Other liabilities			14,514				10,318				8,596				4,196				40.7	%			5,918				68.8	%
Total Liabilities			62,006				20,210				18,558				41,796				206.8	%			43,448				234.1	%
Commitments and Contingencies			-				-				-				-				0.0	%			-				0.0	%
Stockholders' Equity
Preferred Stock			-				-				-				-				0.0	%			-				0.0	%
Common Stock			47,570				46,632				46,557				938				2.0	%			1,013				2.2	%
Additional paid-in capital			40,923				40,119				40,004				804				2.0	%			919				2.3	%
Retained earnings			89,141				84,884				80,830				4,257				5.0	%			8,311				10.3	%
Accumulated other comprehensive income			(389	)			665				883				(1,054	)			-158.5	%			(1,272	)			-144.1	%
Total Stockholders' Equity			177,245				172,300				168,274				4,945				2.9	%			8,971				5.3	%
Total Liabilities and Stockholders' Equity		$	1,249,389			$	1,134,437			$	1,117,982			$	114,952				10.1	%		$	131,407				11.8	%

FIRST COMMERCE BANK
Consolidated Income Statements
For the three months ended September 30, 2022 and 2021
(Unaudited)

(In thousands, except percentages and per share amounts)		September 30, 2022				September 30, 2021				Amount				%
Interest Income
Loans, including fees		$	13,146			$	11,520			$	1,626				14.1	%
Investment securities - HTM			485				222				263				118.5	%
Investment securities - AFS			114				182				(68	)			-37.4	%
Interest-bearing deposits			195				66				129				196.1	%
Total Interest Income			13,940				11,990				1,950				16.3	%
Interest Expense
Deposits			1,513				844				669				79.3	%
Other borrowings			86				-				86				0.0	%
Total Interest Expense			1,599				844				755				89.5	%
Net Interest Income			12,341				11,146				1,195				10.7	%
(Credit)/Provision for Loan Losses			(685	)			(136	)			(549	)			403.7	%
Net Interest Income after ALLL			13,026				11,282				1,744				15.5	%
Non-Interest Income
Service charges and fees			170				178				(8	)			-4.5	%
BOLI income			168				-				168				0.0	%
Gain/(loss) on valuation of REO			63				(6	)			69				-1150.0	%
Other income			6				7				(1	)			-14.3	%
Total Non-Interest Income			407				179				228				127.4	%
Non-Interest Expenses
Salaries and employee benefits			3,943				3,439				504				14.7	%
Occupancy & equip. expense			839				828				11				1.3	%
Marketing			57				28				29				103.6	%
Professional fees			356				331				25				7.6	%
Data processing			177				197				(20	)			-10.2	%
FDIC assessment			150				63				87				138.1	%
Other expenses			751				1,197				(446	)			-37.3	%
Total Non-Interest Expense			6,273				6,083				190				3.1	%
Income before income tax provision			7,160				5,378				1,782				33.1	%
Income tax expense			1,712				1,405				307				21.9	%
Net Income		$	5,448			$	3,973			$	1,475				37.1	%
Basic earnings per share		$	0.23			$	0.17			$	0.06				34.0	%
Average shares outstanding			23,743,033				23,196,418				546,615				2.4	%
Fully diluted earnings per share		$	0.23			$	0.17			$	0.06				34.6	%
Diluted shares outstanding			24,124,491				23,682,086				442,405				1.9	%

FIRST COMMERCE BANK
Consolidated Income Statements
For the nine months ended September 30, 2022 and 2021
(Unaudited)

										Variance
(In thousands, except percentages and per share amounts)		September 30, 2022				September 30, 2021				Amount				%
Interest Income
Loans, including fees		$	35,677			$	33,224			$	2,453				7.4	%
Investment securities - HTM			1,111				640				471				73.6	%
Investment securities - AFS			467				583				(116	)			-19.9	%
Interest-bearing deposits			423				151				272				180.1	%
Total Interest Income			37,678				34,598				3,080				8.9	%
Interest Expense
Deposits			2,994				2,879				115				4.0	%
Other borrowings			86				-				86				0.0	%
Total Interest Expense			3,080				2,879				201				7.0	%
Net Interest Income			34,598				31,719				2,879				9.1	%
(Credit)/Provision for Loan Losses			(244	)			(736	)			492				-66.8	%
Net Interest Income after ALLL			34,842				32,455				2,387				7.4	%
Non-Interest Income
Service charges and fees			502				580				(78	)			-13.5	%
BOLI income			494				-				494				0.0	%
Gain on valuation of REO			65				(116	)			181				155.8	%
Other income			34				19				15				76.3	%
Total Non-Interest Income			1,095				483				612				126.6	%
Non-Interest Expenses
Salaries and employee benefits			11,997				9,482				2,515				26.5	%
Occupancy & equip. expense			2,607				2,506				101				4.0	%
Marketing			151				95				56				58.9	%
Professional fees			1,158				1,104				54				4.9	%
Data processing			535				550				(15	)			-2.7	%
FDIC assessment			482				195				287				147.2	%
Other expenses			2,277				2,013				264				13.1	%
Total Non-Interest Expense			19,207				15,945				3,262				20.5	%
Income before income tax provision			16,730				16,993				(263	)			-1.5	%
Income tax expense			4,147				4,363				(216	)			-5.0	%
Net Income		$	12,583			$	12,630			$	(47	)			-0.4	%
Basic earnings per share		$	0.54			$	0.55			$	(0.01	)			-1.6	%
Basic avg shares outstanding			23,532,992				23,029,224				503,768				2.2	%
Fully diluted earnings per share		$	0.53			$	0.54			$	(0.01	)			-1.1	%
Fully diluted avg shares outstanding			23,914,450				23,512,892				401,558				1.7	%

First Commerce Bank
Financial Highlights & Ratios
As of September 30, 2022 and 2021
(Unaudited)

		QTD				QTD				YTD				YTD
Financial & Operating Ratios		9/30/2022				9/30/2021				9/30/2022				9/30/2021
Yields
Commercial Mortgages			4.56	%			5.00	%			4.60	%			4.92	%
Construction Loans			6.67	%			4.85	%			5.69	%			5.16	%
Commercial Loans			6.53	%			5.23	%			5.67	%			5.24	%
Consumer			3.73	%			3.61	%			3.88	%			3.58	%
Residential Mortgages			4.71	%			5.00	%			4.73	%			5.06	%
Home Equity			4.96	%			3.67	%			4.10	%			3.67	%
SBA Loans			6.62	%			5.93	%			6.48	%			4.92	%
Total Yield on Loans			4.92	%			5.07	%			4.81	%			4.94	%
DFB Interest Bearing			2.03	%			0.17	%			0.68	%			0.16	%
Securities			2.78	%			3.23	%			2.95	%			2.94	%
Total Yield on Interest Earning Assets			4.66	%			4.30	%			4.39	%			4.27	%
Cost of Funds
Non-interest Bearing			0.00	%			0.00	%			0.00	%			0.00	%
Interest Bearing			0.45	%			0.36	%			0.38	%			0.38	%
Money Market			0.96	%			0.35	%			0.39	%			0.39	%
Savings			0.33	%			0.34	%			0.39	%			0.39	%
Time Deposits			0.92	%			0.61	%			0.71	%			0.71	%
IRA's			0.75	%			0.67	%			0.82	%			0.82	%
Brokered CD's			0.00	%			0.00	%			0.00	%			0.00	%
Borrowed Funds			2.95	%			0.00	%			0.36	%			0.36	%
Total Cost of Funds			0.63	%			0.36	%			0.42	%			0.42	%
Equity & Returns
Common Stock (In Thousands)			23,785				23,279				23,785				23,279
Book Value Per Share		$	7.47			$	7.19			$	7.47			$	7.19
Market Value Per Share		$	6.66			$	5.70			$	6.66			$	5.70
Earnings Per Share (Basic)		$	0.23			$	0.17			$	0.54			$	0.55
Return on Avg Assets			1.79	%			1.42	%			1.42	%			1.54	%
Return on Avg Equity			12.02	%			7.86	%			9.39	%			10.01	%
Tangible Equity/Tangible Assets			14.22	%			14.97	%			14.22	%			14.97	%
Risk Based Capital Ratios
Tier 1 Leverage Capital Ratio			14.56	%			14.98	%			14.56	%			14.98	%
Common Equity Tier 1 Risk-Based Capital			15.18	%			19.00	%			15.18	%			19.00	%
Tier 1 Risk-Based Capital Ratio			15.18	%			19.00	%			15.18	%			19.00	%
Total Risk-Based Capital Ratio			16.44	%			20.26	%			16.44	%			20.26	%
Capital Conservation Buffer			8.44	%			12.26	%			8.44	%			12.26	%
Tier 1 Capital (In Thousands)			177,622				167,370				177,622				167,370
Tier 2 Capital (In Thousands)			192,304				178,482				192,304				178,482
Other Ratios
ALLL/Gross Loans			1.63	%			2.00	%			1.63	%			2.00	%
Total Investments/Total Assets			6.73	%			4.22	%			6.73	%			4.22	%
Net Loans/Total Assets			85.21	%			77.00	%			85.21	%			77.00	%
Net Loans/Total Deposits			105.39	%			92.45	%			105.39	%			92.45	%
Net Interest Margin			4.28	%			4.11	%			4.14	%			3.98	%
Interest Spread			4.04	%			3.94	%			3.97	%			3.85	%
Efficiency Ratio			49.21	%			53.71	%			53.81	%			49.51	%
Legal Lending Limit			28,846				26,772				28,846				26,772

First Commerce Bank
Selected Financial Data
(Unaudited)

		As of and for the quarters ended
(In thousands, except per share data)		9/30/2022				6/30/2022				3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Summary earnings:
Interest income$		$	13,941			$	12,032			$	11,705			$	11,619			$	11,990			$	11,399			$	11,208
Interest expense			1,599				768				713				764				844				943				1,092
Net interest income			12,342				11,264				10,992				10,856				11,146				10,456				10,117
Provision (credit) for loan losses			(685	)			1,216				(775	)			150				(136	)			(600	)			-
Net interest income after provision (credit) for loan losses			13,027				10,048				11,767				10,706				11,282				11,056				10,117
Non-interest income			406				326				363				339				180				101				203
Non-interest expense			6,273				6,418				6,517				5,612				6,083				5,321				4,541
Income before income tax expense			7,160				3,956				5,613				5,433				5,379				5,836				5,778
Income tax expense			1,712				1,018				1,417				1,380				1,405				1,425				1,532
Net income		$	5,448			$	2,939			$	4,196			$	4,054			$	3,974			$	4,411			$	4,246
Per share data:
Earnings per share - basic		$	0.23			$	0.13			$	0.18			$	0.17			$	0.17			$	0.19			$	0.19
Earnings per share - diluted			0.23				0.12				0.18				0.17				0.17				0.19				0.19
Cash dividends declared			0.35				-				-				-				-				-				-
Book value at period end (1)			7.45				7.61				7.55				7.39				7.23				7.07				6.93
Shares outstanding at period end			23,785				23,673				23,316				23,316				23,279				23,196				22,899
Basic weighted average shares outstanding			23,743				23,535				23,316				23,196				23,196				22,899				22,801
Fully diluted weighted average shares outstanding			24,124				23,970				23,773				23,198				23,198				23,014				22,871
Balance sheet data (at period end):
Total assets		$	1,249,389			$	1,176,733			$	1,158,783			$	1,134,437			$	1,117,982			$	1,095,095			$	1,103,039
Securities, available for sale			14,371				16,327				17,793				22,617				24,593				27,452				28,957
Securities, held to maturity			69,736				70,268				54,289				23,611				22,609				25,190				27,835
Total loans			1,082,210				1,005,640				934,193				926,876				878,380				902,781				900,368
Allowance for loan losses			(17,652	)			(18,245	)			(17,009	)			(17,733	)			(17,577	)			(17,668	)			(17,867	)
Total deposits			1,015,916				979,285				966,496				946,855				931,150				913,757				926,321
Shareholders' equity			177,246				180,171				175,965				172,300				168,274				164,061				158,732
Common cash dividends			8,325				-				-				-				-				-				-
Selected performance ratios:
Return on average total assets			1.77	%			1.00	%			1.48	%			1.42	%			1.44	%			1.63	%			1.61	%
Return on average shareholders' equity			11.92	%			6.57	%			9.73	%			9.37	%			9.42	%			10.90	%			11.02	%
Dividend payout ratio (2)			38.52	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Net interest margin			4.28	%			4.06	%			4.04	%			4.01	%			4.11	%			3.92	%			3.93	%
Non-interest income to average assets			0.13	%			0.11	%			0.13	%			0.12	%			0.07	%			0.04	%			0.08	%
Non-interest expenses to average assets			2.04	%			2.19	%			2.30	%			1.96	%			2.20	%			1.97	%			1.73	%
Asset quality ratios:
Non-performing loans to total loans			1.61	%			1.35	%			1.31	%			0.99	%			0.90	%			0.99	%			1.00	%
Non-performing assets to total assets			1.73	%			1.52	%			1.43	%			1.19	%			1.08	%			1.20	%			1.31	%
Allowance for loan losses to non-performing loans			101.25	%			134.23	%			139.42	%			193.59	%			223.54	%			197.10	%			198.72	%
Allowance for loan losses to total loans			1.63	%			1.81	%			1.82	%			1.91	%			2.00	%			1.96	%			1.98	%
Net recoveries (charge-offs) to average loans			0.00	%			0.00	%			0.01	%			0.00	%			0.01	%			0.04	%			0.00	%
Liquidity and capital ratios:
Average loans to average deposits			104.43	%			99.02	%			96.80	%			93.69	%			95.51	%			97.60	%			97.42	%
Total shareholders' equity to total assets			14.19	%			15.31	%			15.19	%			15.19	%			15.05	%			14.98	%			14.39	%
Total capital to risk-weighted assets			16.44	%			17.78	%			18.84	%			19.39	%			20.26	%			19.99	%			19.73	%
Tier 1 capital to risk-weighted assets			15.19	%			16.52	%			17.58	%			18.13	%			19.00	%			18.73	%			18.47	%
Common equity tier 1 capital ratio to risk-weighted assets			15.19	%			16.52	%			17.58	%			18.13	%			19.00	%			18.73	%			18.47	%
Tier 1 leverage ratio			14.56	%			15.36	%			15.29	%			15.12	%			14.98	%			14.79	%			14.68	%
1Book value at end-of-period calculated by dividing shareholders' equity by number of outstanding common shares at end of period.
2Dividend payout ratio calculated by dividing dividends declared during the year by net income.
			92				91				90				92				92				91				90
			365				365				365				365				365				365				365
Average assets			1,219,870				1,173,200				1,150,787				1,136,064				1,096,112				1,085,077				1,067,499
Average loans			1,046,602				964,249				923,169				885,110				890,313				901,524				868,950
Average deposits			1,002,224				973,793				953,714				944,718				932,188				923,674				891,981
Average equity			181,353				179,525				174,931				171,634				167,453				162,288				156,281
90 days PD and still accruing			-				-				-				-				-				-				-
Nonperforming loans			17,434				13,592				12,200				9,160				7,863				8,964				8,991
Nonperforming assets			21,635				17,937				16,545				13,505				12,064				13,165				14,437
Net recoveries (charge-off)							20				51				5				45				401				5
OREO			4,201				4,345				4,345				4,345				4,201				4,201				5,446

SOURCE: First Commerce Bank

View source version on accesswire.com:
https://www.accesswire.com/722658/First-Commerce-Bank-Earns-54-Million-and-126-Million-for-the-Three-and-Nine-Months-Ended-September-30-2022-and-Declares-a-Quarterly-Cash-Dividend-of-004-per-Common-Share

FAQ

What is the dividend amount and payment date for CMRB?

First Commerce Bank declared a quarterly cash dividend of $0.04 per share, payable on November 23, 2022.

How did First Commerce Bank's net income for Q3 2022 compare to Q3 2021?

Net income for Q3 2022 was $5.4 million, an increase from $4.0 million in Q3 2021.

What were the earnings per share for CMRB in Q3 2022?

Earnings per share for Q3 2022 were $0.23, compared to $0.17 in Q3 2021.

How much did First Commerce Bank's loans increase by?

Loans increased by $155.2 million, or 17.1%, to $1.07 billion at September 30, 2022.

What factors contributed to the increase in non-interest expenses for CMRB?

The increase in non-interest expenses was primarily due to rising salaries and benefits, which increased by $2.5 million (26.5%) year-over-year.