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

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

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

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

Financial Highlights

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

Balance Sheet Review

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

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

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

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

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

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

Three Months of Operations

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

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

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

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

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

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

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

Six Months of Operations

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

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

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

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

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

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

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

Asset Quality

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

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

About First Commerce Bank

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

Forward-Looking Statements

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

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

 

FIRST COMMERCE BANK
Consolidated Balance Sheets
June 30, 2022
(Unaudited)
							June 30, 2022 vs.
								December 31, 2021				June 30, 2021
(In thousands, except percentages)	June 30, 2022		December 31, 2021		June 30, 2021			Amount		%		Amount		%
Assets
Cash and Cash Equivalents:
Cash on hand	$            1,541		$              1,736		$            1,978			$        (195)		-11.2 %		$     (437)		-22.1 %
Interest bearing deposits in other banks	35,597		111,602		114,916			(76,005)		-68.1 %		(79,319)		-69.0 %
Total cash and cash equivalents	37,138		113,338		116,894			(76,200)		-67.2 %		(79,756)		-68.2 %
Investment Securities HTM, at amortized cost	70,268		23,611		25,190			46,657		197.6 %		45,078		179.0 %
Investment Securities AFS, at fair value	16,327		22,617		27,452			(6,290)		-27.8 %		(11,125)		-40.5 %
Restricted stock	1,044		945		945			99		10.5 %		99		10.5 %
Loans Rcvable, net of ALLL	987,396		909,143		884,594			78,253		8.6 %		102,802		11.6 %
Premises and equipment	16,164		16,385		16,835			(221)		-1.3 %		(671)		-4.0 %
Right-of-Use Asset	9,178		9,368		9,556			(190)		-2.0 %		(378)		-4.0 %
Bank Owned Life Insurance	25,441		25,115		-			326		1.3 %		25,441		0.0 %
Other Real Estate Owned	4,345		4,345		4,201			-		0.0 %		144		3.4 %
Deferred tax asset	4,134		3,805		2,926			329		8.6 %		1,208		41.3 %
Accrued interest receivable	4,032		4,433		5,213			(401)		-9.0 %		(1,181)		-22.7 %
Other assets	1,266		1,332		1,289			(66)		-4.9 %		(23)		-1.8 %
Total Assets	$    1,176,733		$      1,134,437		$    1,095,095			$    42,296		3.7 %		$  81,638		7.5 %
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing	$        224,217		$         212,017		$        187,339			$    12,200		5.8 %		$  36,878		19.7 %
Interest bearing	750,125		729,910		726,418			20,215		2.8 %		23,707		3.3 %
Total Deposits	974,342		941,927		913,757			32,415		3.4 %		60,585		6.6 %
Total Borrowings	-		-		-			-		0.0 %		-		0.0 %
Accrued Interest Payable	117		101		123			16		15.8 %		(6)		-4.9 %
Lease Liability	9,661		9,791		9,916			(130)		-1.3 %		(255)		-2.6 %
Other liabilities	12,442		10,318		7,238			2,124		20.6 %		5,204		71.9 %
Total Liabilities	22,220		20,210		17,277			2,010		9.9 %		4,943		28.6 %
Commitments and Contingencies	-		-		-			-		0.0 %		-		0.0 %
Stockholders' Equity
Preferred Stock	-		-		-			-		0.0 %		-		0.0 %
Common Stock	47,346		46,632		46,391			714		1.5 %		955		2.1 %
Additional paid-in capital	40,847		40,119		39,797			728		1.8 %		1,050		2.6 %
Retained earnings	92,019		84,884		76,856			7,135		8.4 %		15,163		19.7 %
Accumulated other comprehensive income	(41)		665		1,017			(706)		-106.2 %		(1,058)		-104.0 %
Total Stockholders' Equity	180,171		172,300		164,061			7,871		4.6 %		16,110		9.8 %
Total Liabilities and Stockholders' Equity	$    1,176,733		$      1,134,437		$    1,095,095			$    42,296		3.7 %		$  81,638		7.5 %

 

FIRST COMMERCE BANK
QTD Consolidated Income Statements
June 30, 2022
(Unaudited)
								June 30, 2022 vs.
								March 31, 2022				June 30, 2021
(In thousands, except percentages and per share amounts)	June 30, 2022		March 31, 2022		June 30, 2021			Amount		%		Amount		%
Interest Income
Loans, including fees	$                 11,357		$                 11,174		$                 10,964			$        183		1.6 %		$        393		3.6 %
Investment securities - HTM	395		232		199			163		70.3 %		196		98.5 %
Investment securities - AFS	121		232		194			(111)		-47.8 %		(73)		-37.8 %
Interest-bearing deposits	160		67		42			93		138.8 %		118		281.0 %
Total Interest Income	12,033		11,705		11,399			328		2.8 %		634		5.6 %
Interest Expense
Deposits	768		713		943			55		7.7 %		(175)		-18.6 %
Other borrowings	-		-		-			-		0.0 %		-		0.0 %
Total Interest Expense	768		713		943			55		7.7 %		(175)		-18.6 %
Net Interest Income	11,265		10,992		10,456			273		2.5 %		809		7.7 %
(Credit)/Provision for Loan Losses	1,216		(775)		(600)			1,991		-256.9 %		1,816		-302.7 %
Net Interest Income after ALLL	10,049		11,767		11,056			(1,718)		-14.6 %		(1,007)		-9.1 %
Non-Interest Income
Service charges and fees	156		176		204			(20)		-11.2 %		(48)		-23.5 %
BOLI income	165		161		-			4		2.2 %		165		0.0 %
Gain/(loss) on valuation of REO	-		3		(110)			(3)		-100.0 %		110		-100.0 %
Other income	5		23		7			(18)		-78.3 %		(2)		-28.6 %
Total Non-Interest Income	326		363		101			(37)		-10.2 %		225		224.1 %
Non-Interest Expenses
Salaries and employee benefits	3,893		4,162		3,156			(269)		-6.5 %		737		23.4 %
Occupancy & equip. expense	815		953		749			(138)		-14.5 %		66		8.8 %
Marketing	52		42		36			10		23.8 %		16		43.3 %
Professional fees	361		441		510			(80)		-18.0 %		(149)		-29.1 %
Data processing	177		181		183			(4)		-2.2 %		(6)		-3.1 %
FDIC assessment	150		182		64			(32)		-17.6 %		86		134.4 %
Other expenses	970		556		623			414		74.6 %		347		55.7 %
Total Non-Interest Expense	6,418		6,517		5,321			(98)		-1.5 %		1,098		20.6 %
Income before income tax provision	3,957		5,613		5,836			(1,656)		-29.5 %		(1,880)		-32.2 %
Income tax expense	1,018		1,417		1,425			(399)		-28.2 %		(407)		-28.6 %
Net Income	$                    2,939		$                    4,196		$                    4,411			$  (1,257)		-30.0 %		$  (1,473)		-33.4 %
Basic earnings per share	$                      0.12		$                      0.18		$                      0.19			$    (0.06)		-30.6 %		$    (0.07)		-35.1 %
Average shares outstanding	23,534,765		23,316,490		22,916,425			218,275		0.9 %		618,340		2.7 %
Fully diluted earnings per share	$                      0.12		$                      0.18		$                      0.19			$    (0.06)		-32.5 %		$    (0.07)		-34.9 %
Diluted shares outstanding	23,964,091		23,904,327		23,417,016			59,764		0.3 %		547,075		2.3 %

 

FIRST COMMERCE BANK
YTD Consolidated Income Statements
June 30, 2022
(Unaudited)
						June 30, 2021
(In thousands, except percentages and per share amounts)	June 30, 2022		June 30, 2021			Amount		%
Interest Income
Loans, including fees	$                 22,531		$                 21,704			$        827		3.8 %
Investment securities - HTM	626		418			208		49.8 %
Investment securities - AFS	353		401			(48)		-12.0 %
Interest-bearing deposits	227		85			142		167.1 %
Total Interest Income	23,737		22,608			1,129		5.0 %
Interest Expense
Deposits	1,481		2,035			(554)		-27.2 %
Other borrowings	-		-			-		0.0 %
Total Interest Expense	1,481		2,035			(554)		-27.2 %
Net Interest Income	22,256		20,573			1,683		8.2 %
(Credit)/Provision for Loan Losses	440		(600)			1,040		-173.4 %
Net Interest Income after ALLL	21,816		21,173			643		3.0 %
Non-Interest Income
Service charges and fees	332		391			(59)		-15.0 %
BOLI income	326		-			326		0.0 %
Gain on valuation of REO	3		(110)			113		-102.7 %
Other income	28		23			5		21.7 %
Total Non-Interest Income	689		303			386		127.2 %
Non-Interest Expenses
Salaries and employee benefits	8,055		6,043			2,012		33.3 %
Occupancy & equip. expense	1,768		1,678			90		5.4 %
Marketing	94		67			27		40.3 %
Professional fees	803		773			30		3.9 %
Data processing	358		354			4		1.1 %
FDIC assessment	332		131			201		152.7 %
Other expenses	1,525		815			710		87.1 %
Total Non-Interest Expense	12,935		9,861			3,074		31.2 %
Income before income tax provision	9,570		11,615			(2,045)		-17.6 %
Income tax expense	2,435		2,958			(523)		-17.7 %
Net Income	$                    7,135		$                    8,657			$  (1,522)		-17.6 %
Basic earnings per share	$                      0.30		$                      0.38			$    (0.08)		-20.3 %
Basic avg shares outstanding	23,426,230		22,943,225			483,005		2.1 %
Fully diluted earnings per share	$                      0.30		$                      0.37			$    (0.07)		-19.0 %
Fully diluted avg shares outstanding	23,855,556		23,443,816			411,740		1.8 %

 

First Commerce Bank
Financial Highlights & Ratios
As of June 30, 2022
Financial & Operating Ratios	QTD	QTD	YTD	YTD
	6/30/2022	6/30/2021	6/30/2022	6/30/2021
Yields
Commercial Mortgages	4.50 %	4.83 %	4.61 %	4.87 %
Construction Loans	5.17 %	5.15 %	5.06 %	5.22 %
Commercial Loans	5.44 %	5.23 %	5.29 %	5.25 %
Consumer	4.08 %	3.71 %	3.96 %	3.57 %
Residential Mortgages	4.69 %	5.04 %	4.74 %	5.09 %
Home Equity	3.98 %	3.62 %	3.71 %	3.68 %
SBA Loans	5.69 %	4.26 %	6.42 %	4.50 %
Total Yield on Loans	4.66 %	4.82 %	4.75 %	4.88 %
DFB Interest Bearing	0.77 %	0.14 %	0.43 %	0.15 %
Securities	2.70 %	2.87 %	3.10 %	2.85 %
Total Yield on Interest Earning Assets	4.24 %	4.20 %	4.24 %	4.25 %
Cost of Funds
Non-interest Bearing	0.00 %	0.00 %	0.00 %	0.00 %
Interest Bearing	0.33 %	0.35 %	0.33 %	0.39 %
Money Market	0.37 %	0.37 %	0.36 %	0.42 %
Savings	0.34 %	0.37 %	0.34 %	0.42 %
Time Deposits	0.53 %	0.72 %	0.51 %	0.76 %
IRA's	0.50 %	0.82 %	0.50 %	0.90 %
Brokered CD's	0.00 %	0.00 %	0.00 %	0.00 %
Borrowed Funds	0.00 %	0.00 %	0.00 %	0.36 %
Total Cost of Funds	0.32 %	0.41 %	0.31 %	0.45 %
Equity & Returns
Common Stock (In Thousands)	23,673	23,196	23,673	23,196
Book Value Per Share	$          7.61	$          7.03	$          7.61	$          7.03
Market Value Per Share	$          6.57	$          5.60	$          6.57	$          5.60
Earnings Per Share (Basic)	$          0.12	$          0.15	$          0.30	$          0.37
Return on Avg Assets	1.00 %	1.60 %	1.23 %	1.60 %
Return on Avg Equity	6.55 %	13.12 %	7.92 %	10.55 %
Tangible Equity/Tangible Assets	15.31 %	14.89 %	15.31 %	14.89 %
Risk Based Capital Ratios
Tier 1 Leverage Capital Ratio	15.36 %	14.79 %	15.36 %	15.02 %
Common Equity Tier 1 Risk-Based Capital	16.52 %	18.72 %	16.52 %	18.73 %
Tier 1 Risk-Based Capital Ratio	16.52 %	18.72 %	16.52 %	18.73 %
Total Risk-Based Capital Ratio	17.78 %	19.98 %	17.78 %	19.99 %
Capital Conservation Buffer	9.78 %	11.98 %	9.78 %	11.86 %
Tier 1 Capital (In Thousands)	180,198	163,020	180,198	163,045
Tier 2 Capital (In Thousands)	193,912	174,001	193,912	174,025
Other Ratios
ALLL/Gross Loans	1.81 %	1.96 %	1.81 %	1.96 %
Total Investments/Total Assets	7.36 %	4.81 %	7.36 %	4.81 %
Net Loans/Total Assets	83.91 %	80.83 %	83.91 %	80.83 %
Net Loans/Total Deposits	101.34 %	96.87 %	101.34 %	96.87 %
Net Interest Margin	4.06 %	3.91 %	4.05 %	3.92 %
Interest Spread	3.92 %	3.79 %	3.93 %	3.80 %
Efficiency Ratio	55.37 %	50.40 %	56.37 %	47.24 %
Legal Lending Limit	29,087	26,104	29,087	26,104

 

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SOURCE FIRST COMMERCE BANK