LAKEWOOD, NJ / ACCESSWIRE / January 31, 2023 / First Commerce Bank (the "Bank") (OTC PINK:CMRB) today reported net income of $16.6 million for the fiscal year ended December 31, 2022 as compared to $16.7 million for the fiscal year ended December 31, 2021. Basic earnings per common share for the fiscal year ended December 31, 2022 was $0.70, compared to $0.72 for the fiscal year ended December 31, 2021. The Board of Directors unanimously approved and declared a quarterly cash dividend of $0.04 per common share payable to shareholders on February 21, 2023 for shareholders of record as of February 6, 2023.
Regarding the performance of the Bank, President & CEO Donald Mindiak commented, "Strong balance sheet growth in the areas of loans receivable, net, and investment securities resulted in increases in both total interest income and net interest income. Total assets grew by $157.7 million or 13.9% with the asset growth occurring primarily as a result of growth in total loans receivable, net, of $191.0 million or 21.0% and investment security growth of $33.5 million or 72.4%. As a result of this asset growth, total interest income increased by $6.7 million or 14.6% and net interest income grew by $3.8 million or 8.9% year-over-year. In addition, asset quality metrics improved through the fourth quarter as non-accrual loan totals decreased by $5.0 million and, while the Bank continues to report $4.0 million in REO balances at year-end, executed contracts are in place for both properties that comprise this balance which should close shortly."
He continued, "We are proud to have begun paying a cash dividend this past year, demonstrating the ability to provide a competitive return on investment to our shareholders. We have also received regulatory approval for our Holding Company Reorganization Application and look forward to shareholder approval and availing ourselves to the benefits that the Holding Company structure can provide. Lastly, while the Federal Reserve substantially increased interest rates last year, creating market challenges for financial institutions, coupled with the economic headwinds of persistent inflation, possible recession and credit quality concerns, your management team will continue to explore and execute initiatives that have the capacity to increase both franchise and shareholder value."
Year-End Financial Highlights
- Loans receivable, net increased by $191.0 million or 21.0% from year-end 2021 primarily as a result of growth in commercial and construction loans.
- Investment security balances increased by $33.5 million or 72.4% from year-end 2021 as the Bank deployed excess liquidity into higher yielding interest earning assets.
- Net interest income increased by $3.8 million or 8.9% from year-end 2021 as a result of the growth in loans receivable, net, and investment securities described above.
- Net interest margin increased to 4.07% at year-end 2022 from 3.99% at year-end 2021.
- Total deposits increased by $84.7 million or 9.0% with a category breakdown at December 31, 2022 of 19.7% in non-interest bearing deposits, 6.4% in savings deposits, 27.1% in interest-bearing demand deposits and 46.8% in time deposits.
- Return on average equity was 9.28% at December 31, 2022 as compared to 9.66% at December 31, 2021.
- Return on average assets was 1.38% at December 31, 2022 as compared to 1.50% at December 31, 2021.
Balance Sheet Review
Total assets increased by $157.7 million or 13.9% to $1.29 billion at December 31, 2022 from $1.13 billion at December 31, 2021. The increase in total assets was primarily attributable to increases in loans receivable, net and investment securities, partially offset by a decrease in cash and cash equivalents.
Total cash and cash equivalents decreased by $70.8 million or 62.4% to $42.6 million at December 31, 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 $191.0 million or 21.0% to $1.1 billion at December 31, 2022 from $909.3 million at December 31, 2021. Total loan increases for the fiscal year ended December 31, 2022 occurred primarily as a result of a $207.0 million increase in commercial mortgages and a $22.3 million increase in construction loans, partially offset by a $15.9 million decrease in SBA loans and a $17.3 million decrease in commercial loans. The allowance for loan losses increased by $48,000 to $17.8 million or 1.59% of gross loans at December 31, 2022 as compared to $17.7 million or 1.91% of gross loans at December 31, 2021.
Total investment securities increased by $33.5 million or 72.4% to $79.7 million at December 31, 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 $17.0 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 decreased by $1.34 million due to the prevailing interest rate environment and its impact on the market value of those debt securities. 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 December 31, 2022.
Deposit liabilities increased by $84.7 million or 9.0% to $1.03 billion at December 31, 2022 from $941.9 million at December 31, 2021. The increase in total deposits occurred primarily as a result of a $227.4 million increase in time deposits and a $3.3 million increase in NOW deposits, partially offset by decreases of $101.8 million, $25.8 million, $9.9 million and $8.5 million in savings, money market, non-interest bearing and interest checking deposits, respectively. As a result of the Federal Reserves' efforts to reduce inflation through systematic short-term interest rate increases during 2022, internal disintermediation has occurred which has restructured the Bank's deposit mix to be more heavily weighted in time deposits as opposed to core deposits. Through the second half of 2022, the Bank utilized wholesale borrowings from the Federal Home Loan Bank of New York to fund loan demand. Wholesale borrowings totaled $59.0 million at December 31, 2022 from no such balance at December 31, 2021.
Stockholders' equity increased by $8.1 million or 4.7% to $180.4 million at December 31, 2022 from $172.3 million at December 31, 2021. The increase in stockholders' equity was primarily attributable to net income of $16.6 million for the fiscal year ended December 31, 2022 and increases of $938,000 and $810,000 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 $9.3 million in undivided profits related to the declaration and payment of cash dividends during the fiscal year and a decrease in accumulated other comprehensive income of $974,000 related to the mark-to-market valuation of the available-for-sale investment portfolio.
Annual Operational Review
Net interest income increased by $3.8 million or 8.9% to $46.4 million for the fiscal year ended December 31, 2022 from $42.6 million for the fiscal year ended December 31, 2021.
Total interest income increased by $6.8 million or 14.6% to $53.0 million for the fiscal year ended December 31, 2022 from $46.2 million for the fiscal year ended December 31, 2021. The increase in interest income resulted primarily from an increase in the average balance of loans receivable, net of $124.2 million or 14.2% to $998.0 million for the twelve months ended December 31, 2022 compared to $873.8 million for the twelve months ended December 31, 2021 and an increase in the average balance of investment securities of $23.2 million or 44.5% to $75.2 million for the twelve months ended December 31, 2022 from $52.0 million for the twelve months ended December 31, 2021. Partially offsetting the increase in interest income was a decrease in loan fees of $1.1 million or 36.1% to $1.9 million for the twelve months ended December 31, 2022 from $3.0 million for the twelve months ended December 31, 2021. The decrease in loan fees was primarily related to the reduction in fees recognized from the Paycheck Protection Program (PPP) of $1.3 million as the majority of the Bank's PPP loans were forgiven and fees earned in 2021. The lower PPP fees were partially offset by higher prepayment penalties of $118,000 and other loan fees of $131,000 collected during the twelve months ended December 31, 2022 as compared to the twelve months ended December 31, 2021.
Total interest expense increased by $3.0 million or 81.2% to $6.6 million for the twelve months ended December 31, 2022 from $3.6 million for the twelve months ended December 31, 2021. The increase in interest expense occurred primarily as a result of an increase in the average balance of interest bearing deposit liabilities of $38.7 million or 5.3% to $766.4 million for the twelve months ended December 31, 2022 from $727.7 million for the twelve months ended December 31, 2021, and an increase in the average balance of interest bearing wholesale borrowings from the Federal Home Loan Bank of New York, of $15.2 million for the twelve months ended December 31, 2022 from no such borrowings for the twelve months ended December 31, 2021. The average cost of funds increased by twenty-seven basis points to 0.66% for the twelve months ended December 31, 2022 from 0.39% for the twelve months ended December 31, 2021. The increase in the average balance of interest-bearing liabilities occurred as a result of the Bank's efforts to fund loan closings and grow the balance sheet.
Net interest margin increased by eight basis points to 4.07% for the twelve months ended December 31, 2022 compared to 3.99% for the twelve months ended December 31, 2021. The increase in the net interest margin is primarily attributable to an increase in the average balance of interest earning assets of $76.9 million or 7.2% to $1.15 billion for the twelve months ended December 31, 2022 compared to $1.07 billion for the twelve months ended December 31, 2021 and an increase of thirty basis points in the yield of average interest earning assets to 4.54% for the twelve months ended December 31, 2022 from 4.24% for the twelve months ended December 31, 2021.
Non-interest income increased by $505,000 or 53.9% to $1.4 million for the twelve months ended December 31, 2022 from $936,000 for the twelve months ended December 31, 2021. The increase in total non-interest income resulted primarily from an increase in Bank-Owned Life Insurance ("BOLI") income of $551,000 or 479.1% to $666,000 for the twelve months ended December 31, 2022 from $115,000 in income for the twelve months ended December 31, 2021. The Bank made a $25.0 million BOLI purchase during the fourth quarter of 2021 which accounts for the higher amount of BOLI income for the twelve months ended December 31, 2022. The increase in non-interest income was partially offset by a decrease in service charges and fees of $54,000 or 7.0% to $718,000 for the twelve months ended December 31, 2022 from $772,000 for the twelve months ended December 31, 2021.
Non-interest expense increased by $4.6 million or 21.4% to $26.3 million for the twelve months ended December 31, 2022 compared to $21.7 million for the twelve months ended December 31, 2021. Salaries and employee benefits increased by $2.7 million or 19.9% to $16.0 million for the twelve months ended December 31, 2022 as compared to $13.4 million for the twelve months ended December 31, 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 $228,000 or 7.2% to $3.4 million for the twelve months ended December 31, 2022 as compared to $3.2 million for the twelve months ended December 31, 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 $1.74 million or 33.8% to $6.89 million for the twelve months ended December 31, 2022 from $5.15 million for the twelve months ended December 31, 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 $267,000, $668,000, $98,000, $173,000 and $138,000, respectively, in FDIC assessment, other loan expenses, marketing, professional fees and data processing, respectively. The increase in other loan expenses occurred primarily as a result of the increase in the allowance for unfunded commitments related to the strong loan demand which occurred through 2022. The increase in professional fees resulted primarily from an increase in legal expense associated with the Holding Company Reorganization application.
The income tax provision decreased by $468,000 or 8.1% to $5.3 million for the twelve months ended December 31, 2022 from $5.7 million for the twelve months ended December 31, 2021. The decrease in the income tax provision resulted primarily from a decrease in earnings before income taxes of $559,000 or 2.5% to $21.9 million for the twelve months ended December 31, 2022 from $22.4 million for the twelve months ended December 31, 2021 and a reduction in the effective tax rate to 24.1% for the twelve months ended December 31, 2022 from 25.6% for the twelve months ended December 31, 2021.
Asset Quality
The allowance for loan losses increased by $48,000 to $17.8 million or 1.59% of gross loans at December 31, 2022 as compared to $17.7 million or 1.91% of gross loans at December 31, 2021.
Changes in the allowance for loan and lease losses are calculated and adjusted quarterly and accordingly, relative to loan growth and quantitatively measured asset quality metrics. Total loans, gross, increased by $191.0 million or 21.0% to $1.12 billion at December 31, 2022 from $927.0 million at December 31, 2021. The Bank had non-accrual loans totaling $12.7 million or 1.14% of gross loans at December 31, 2022 as compared to $8.8 million or 0.94% of gross loans at December 31, 2021. Quarter-over-quarter, non-accrual loans decreased by $5.0 million or 28.2% to $12.7 million at December 31, 2022 from $17.7 million at September 30, 2022.
The allowance for loan losses was $17.8 million or 1.59% of gross loans at December 31, 2022 as compared to $17.7 million or 1.91% of gross loans at December 31, 2021. The allowance for loan losses was 139.6% of non-accrual loans at December 31, 2022 and 193.6% of non-accrual loans at December 31, 2021. Additionally, the Bank recorded recoveries of $584,000 in previously charged-off loans in 2022.
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.
FIRST COMMERCE BANK
Consolidated Balance Sheets
(Unaudited)
| December 31, 2022 vs. | ||||||||||||||||
| December 31, 2021 | ||||||||||||||||
(In thousands, except percentages) | December 31, 2022 | December 31, 2021 | Amount | % | ||||||||||||
Assets | ||||||||||||||||
Cash and Cash Equivalents: | ||||||||||||||||
Cash on hand | $ | 1,686 | $ | 1,736 | $ | (50 | ) | -2.9 | % | |||||||
Interest bearing deposits in other banks | 40,899 | 111,602 | (70,703 | ) | -63.4 | % | ||||||||||
Total cash and cash equivalents | 42,585 | 113,338 | (70,753 | ) | -62.4 | % | ||||||||||
Investment Securities HTM, at amortized cost | 65,788 | 23,611 | 42,177 | 178.6 | % | |||||||||||
Investment Securities AFS, at fair value | 13,902 | 22,617 | (8,715 | ) | -38.5 | % | ||||||||||
Restricted stock | 3,699 | 945 | 2,754 | 291.4 | % | |||||||||||
Loans Receivable, net of ALLL | 1,100,300 | 909,312 | 190,988 | 21.0 | % | |||||||||||
Premises and equipment | 15,725 | 16,385 | (660 | ) | -4.0 | % | ||||||||||
Right-of-Use Asset | 9,913 | 9,368 | 545 | 5.8 | % | |||||||||||
Bank Owned Life Insurance | 25,781 | 25,115 | 666 | 2.7 | % | |||||||||||
Other Real Estate Owned | 3,971 | 4,345 | (374 | ) | -8.6 | % | ||||||||||
Deferred tax asset | 4,437 | 3,805 | 632 | 16.6 | % | |||||||||||
Accrued interest receivable | 4,638 | 443 | 205 | 4.6 | % | |||||||||||
Other assets | 1,388 | 1,162 | 225 | 19.3 | % | |||||||||||
Total Assets | $ | 1,292,127 | $ | 1,134,435 | $ | 157,690 | 13.9 | % | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Deposits: | ||||||||||||||||
Non-interest bearing | $ | 202,155 | $ | 212,016 | $ | (9,862 | ) | -4.7 | % | |||||||
Interest bearing | 824,520 | 729,910 | 94,610 | 13.0 | % | |||||||||||
Total Deposits | 1,026,675 | 941,926 | 84,748 | 9.0 | % | |||||||||||
Total Borrowings | 59,000 | - | 59,000 | 0.0 | % | |||||||||||
Accrued Interest Payable | 993 | 100 | 893 | 883.2 | % | |||||||||||
Lease Liability | 10,453 | 9,791 | 662 | 6.8 | % | |||||||||||
Other liabilities | 14,615 | 10,318 | 4,297 | 41.6 | % | |||||||||||
Total Liabilities | 1,111,736 | 962,135 | 149,599 | 15.5 | % | |||||||||||
Commitments and Contingencies | - | - | - | - | ||||||||||||
Stockholders' Equity | ||||||||||||||||
Preferred Stock | - | - | - | - | ||||||||||||
Common Stock | 47,570 | 46,632 | 938 | 2.0 | % | |||||||||||
Additional paid-in capital | 40,929 | 40,119 | 810 | 2.0 | % | |||||||||||
Retained earnings | 92,201 | 84,884 | 7,317 | 8.6 | % | |||||||||||
Accumulated other comprehensive income | (309 | ) | 665 | (974 | ) | -146.5 | % | |||||||||
Total Stockholders' Equity | 180,391 | 172,300 | 8,091 | 4.7 | % | |||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,292,127 | $ | 1,134,435 | $ | 157,690 | 13.9 | % | ||||||||
FIRST COMMERCE BANK
Consolidated Income Statements
For the three months ended December 31, 2022 and 2021
(Unaudited)
| Variance | ||||||||||||||||
| (In thousands, except percentages and per share amounts) | December 31, 2022 | December 31, 2021 | Amount | % | ||||||||||||
Interest Income | ||||||||||||||||
Loans, including fees | $ | 14,413 | $ | 11,219 | $ | 3,194 | 28.5 | % | ||||||||
Investment securities - HTM | 475 | 172 | 303 | 176.2 | % | |||||||||||
Investment securities - AFS | 106 | 160 | (54 | ) | -33.8 | % | ||||||||||
Interest-bearing deposits | 295 | 69 | 226 | 328.1 | % | |||||||||||
Total Interest Income | 15,289 | 11,620 | 3,669 | 31.6 | % | |||||||||||
Interest Expense | ||||||||||||||||
Deposits | 2,975 | 764 | 2,211 | 289.4 | % | |||||||||||
Other borrowings | 545 | - | 545 | 0.0 | % | |||||||||||
Total Interest Expense | 3,520 | 764 | 2,756 | 360.7 | % | |||||||||||
Net Interest Income | 11,769 | 10,856 | 913 | 8.4 | % | |||||||||||
(Credit)/Provision for Loan Losses | (114 | ) | 150 | (264 | ) | -176.0 | % | |||||||||
Net Interest Income after ALLL | 11,883 | 10,706 | 1,177 | 11.0 | % | |||||||||||
Non-Interest Income | ||||||||||||||||
Service charges and fees | 231 | 207 | 24 | 11.6 | % | |||||||||||
BOLI income | 172 | 115 | 57 | 0.0 | % | |||||||||||
Other income | 8 | 15 | (7 | ) | 46.7 | % | ||||||||||
Total Non-Interest Income | 411 | 337 | 74 | 22.0 | % | |||||||||||
Non-Interest Expenses | ||||||||||||||||
Salaries and employee benefits | 4,023 | 3,877 | 146 | 3.8 | % | |||||||||||
Occupancy & equip. expense | 784 | 657 | 127 | 19.3 | % | |||||||||||
Marketing | 61 | 19 | 42 | 221.1 | % | |||||||||||
Professional fees | 492 | 374 | 118 | 31.6 | % | |||||||||||
Data processing | 335 | 181 | 154 | 85.1 | % | |||||||||||
FDIC assessment | 49 | 69 | (20 | ) | -29.0 | % | ||||||||||
Loss/(gain) on valuation of OREO | 230 | (3 | ) | 233 | -7766.7 | % | ||||||||||
Other expenses | 1,182 | 435 | 747 | 171.7 | % | |||||||||||
Total Non-Interest Expense | 7,156 | 5,609 | 1,547 | 27.6 | % | |||||||||||
Income before income tax provision | 5,138 | 5,434 | (296 | ) | -5.4 | % | ||||||||||
Income tax expense | 1,127 | 1,380 | (253 | ) | -18.3 | % | ||||||||||
Net Income | $ | 4,011 | $ | 4,054 | $ | (43 | ) | -1.1 | % | |||||||
Basic earnings per share | $ | 0.17 | $ | 0.17 | $ | (0.00 | ) | 0.0 | % | |||||||
Average shares outstanding | 23,785,490 | 23,303,631 | 481,859 | 2.1 | % | |||||||||||
Fully diluted earnings per share | $ | 0.17 | $ | 0.17 | $ | (0.00 | ) | 0.0 | % | |||||||
Diluted shares outstanding | 24,175,545 | 23,595,981 | 579,564 | 2.5 | % | |||||||||||
FIRST COMMERCE BANK
Consolidated Income Statements
For the years ended December 31, 2022 and 2021
(Unaudited)
| Variance | ||||||||||||||||
(In thousands, except percentages and per share amounts) | December 31, 2022 | December 31, 2021 | Amount | % | ||||||||||||
Interest Income | ||||||||||||||||
Loans, including fees | $ | 50,089 | $ | 44,443 | $ | 5,646 | 12.7 | % | ||||||||
Investment securities - HTM | 1,586 | 812 | 774 | 95.3 | % | |||||||||||
Investment securities - AFS | 573 | 743 | (170 | ) | -22.9 | % | ||||||||||
Interest-bearing deposits | 719 | 220 | 499 | 226.8 | % | |||||||||||
Total Interest Income | 52,967 | 46,218 | 6,749 | 14.6 | % | |||||||||||
Interest Expense | ||||||||||||||||
Deposits | 5,969 | 3,643 | 2,326 | 63.8 | % | |||||||||||
Other borrowings | 630 | - | 630 | 0.0 | % | |||||||||||
Total Interest Expense | 6,599 | 3,643 | 2,956 | 81.1 | % | |||||||||||
Net Interest Income | 46,368 | 42,575 | 3,793 | 8.9 | % | |||||||||||
(Credit)/Provision for Loan Losses | (358 | ) | (586 | ) | 228 | -38.9 | % | |||||||||
Net Interest Income after ALLL | 46,726 | 43,161 | 3,565 | 8.3 | % | |||||||||||
Non-Interest Income | ||||||||||||||||
Service charges and fees | 718 | 772 | (54 | ) | -7.0 | % | ||||||||||
BOLI income | 666 | 115 | 551 | 479.1 | % | |||||||||||
Other income | 57 | 49 | 8 | 15.4 | % | |||||||||||
Total Non-Interest Income | 1,441 | 936 | 505 | 53.9 | % | |||||||||||
Non-Interest Expenses | ||||||||||||||||
Salaries and employee benefits | 16,020 | 13,359 | 2,661 | 19.9 | % | |||||||||||
Occupancy & equip. expense | 3,391 | 3,163 | 228 | 7.2 | % | |||||||||||
Marketing | 212 | 114 | 98 | 86.0 | % | |||||||||||
Professional fees | 1,651 | 1,478 | 173 | 11.7 | % | |||||||||||
Data processing | 869 | 731 | 138 | 18.9 | % | |||||||||||
FDIC assessment | 531 | 264 | 267 | 101.1 | % | |||||||||||
Loss on valuation of OREO | 165 | 114 | 51 | -44.9 | % | |||||||||||
Other expenses | 3,459 | 2,447 | 1,012 | 41.4 | % | |||||||||||
Total Non-Interest Expense | 26,298 | 21,670 | 4,628 | 21.4 | % | |||||||||||
Income before income tax provision | 21,869 | 22,427 | (558 | ) | -2.5 | % | ||||||||||
Income tax expense | 5,275 | 5,742 | (467 | ) | -8.1 | % | ||||||||||
Net Income | $ | 16,594 | $ | 16,685 | $ | (91 | ) | -0.5 | % | |||||||
Basic earnings per share | $ | 0.70 | $ | 0.72 | $ | (0.02 | ) | -2.8 | % | |||||||
Basic avg shares outstanding | 23,596,635 | 23,098,390 | 498,245 | 2.2 | % | |||||||||||
Fully diluted earnings per share | $ | 0.69 | $ | 0.71 | $ | (0.02 | ) | -2.8 | % | |||||||
Fully diluted avg shares outstanding | 23,986,690 | 23,595,981 | 390,709 | 1.7 | % | |||||||||||
First Commerce Bank
Financial Highlights & Ratios
As of December 31, 2022 and 2021
(Unaudited)
| QTD | QTD | YTD | YTD | |||||||||||||
Financial & Operating Ratios | 12/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | ||||||||||||
Yields | ||||||||||||||||
Commercial Mortgages | 4.71 | % | 4.93 | % | 4.64 | % | 4.92 | % | ||||||||
Construction Loans | 7.86 | % | 4.76 | % | 6.30 | % | 5.10 | % | ||||||||
Commercial Loans | 7.52 | % | 4.81 | % | 6.06 | % | 5.14 | % | ||||||||
Consumer | 3.45 | % | 3.27 | % | 3.77 | % | 3.51 | % | ||||||||
Residential Mortgages | 5.41 | % | 4.25 | % | 4.88 | % | 4.87 | % | ||||||||
Home Equity | 5.94 | % | 3.67 | % | 4.54 | % | 3.67 | % | ||||||||
SBA Loans | 6.66 | % | 6.29 | % | 6.52 | % | 5.15 | % | ||||||||
Total Yield on Loans | 5.16 | % | 4.96 | % | 4.91 | % | 4.94 | % | ||||||||
DFB Interest Bearing | 3.37 | % | 0.17 | % | 1.01 | % | 0.16 | % | ||||||||
Securities | 2.85 | % | 2.82 | % | 2.90 | % | 2.90 | % | ||||||||
Total Yield on Interest Earning Assets | 4.95 | % | 4.17 | % | 4.54 | % | 4.24 | % | ||||||||
Cost of Funds | ||||||||||||||||
Non-interest Bearing | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
Interest Bearing | 0.52 | % | 0.35 | % | 0.41 | % | 0.37 | % | ||||||||
Money Market | 1.36 | % | 0.35 | % | 0.75 | % | 0.38 | % | ||||||||
Savings | 0.32 | % | 0.34 | % | 0.34 | % | 0.38 | % | ||||||||
Time Deposits | 2.02 | % | 0.52 | % | 1.14 | % | 0.67 | % | ||||||||
IRA's | 1.48 | % | 0.57 | % | 0.84 | % | 0.76 | % | ||||||||
Brokered CD's | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
Borrowed Funds | 4.43 | % | 0.00 | % | 4.15 | % | 0.36 | % | ||||||||
Total Cost of Funds | 1.32 | % | 0.32 | % | 0.66 | % | 0.39 | % | ||||||||
Equity & Returns | ||||||||||||||||
Common Stock (In Thousands) | 23,785 | 23,316 | 23,785 | 23,316 | ||||||||||||
Book Value Per Share | $ | 7.60 | $ | 7.36 | $ | 7.60 | $ | 7.36 | ||||||||
Market Value Per Share | $ | 6.75 | $ | 5.90 | $ | 6.75 | $ | 5.90 | ||||||||
Basic Earnings Per Share | $ | 0.17 | $ | 0.17 | $ | 0.70 | $ | 0.72 | ||||||||
Return on Avg Assets | 1.27 | % | 1.41 | % | 1.38 | % | 1.50 | % | ||||||||
Return on Avg Equity | 8.93 | % | 9.34 | % | 9.28 | % | 9.66 | % | ||||||||
Tangible Equity/Tangible Assets | 13.98 | % | 15.13 | % | 13.98 | % | 15.13 | % | ||||||||
Risk Based Capital Ratios | ||||||||||||||||
Tier 1 Leverage Capital Ratio | 14.33 | % | 15.11 | % | 14.33 | % | 15.11 | % | ||||||||
Common Equity Tier 1 Risk-Based Capital | 14.97 | % | 18.13 | % | 14.97 | % | 18.13 | % | ||||||||
Tier 1 Risk-Based Capital Ratio | 14.97 | % | 18.13 | % | 14.97 | % | 18.13 | % | ||||||||
Total Risk-Based Capital Ratio | 16.23 | % | 19.39 | % | 16.23 | % | 19.39 | % | ||||||||
Capital Conservation Buffer | 8.23 | % | 11.39 | % | 8.23 | % | 11.39 | % | ||||||||
Tier 1 Capital (In Thousands) | 180,688 | 171,573 | 180,688 | 171,573 | ||||||||||||
Tier 2 Capital (In Thousands) | 195,834 | 183,497 | 195,834 | 183,497 | ||||||||||||
Other Ratios | ||||||||||||||||
ALLL/Gross Loans | 1.59 | % | 1.91 | % | 1.59 | % | 1.91 | % | ||||||||
Total Investments/Total Assets | 6.17 | % | 4.08 | % | 6.17 | % | 4.08 | % | ||||||||
Net Loans/Total Assets | 85.15 | % | 80.19 | % | 85.15 | % | 80.19 | % | ||||||||
Net Loans/Total Deposits | 107.17 | % | 90.40 | % | 107.17 | % | 96.54 | % | ||||||||
Net Interest Margin | 3.93 | % | 4.01 | % | 4.07 | % | 3.99 | % | ||||||||
Interest Spread | 3.63 | % | 3.85 | % | 3.88 | % | 3.85 | % | ||||||||
Efficiency Ratio | 57.95 | % | 50.13 | % | 54.85 | % | 49.67 | % | ||||||||
Legal Lending Limit | 29,375 | 27,525 | 29,375 | 27,525 | ||||||||||||
First Commerce Bank
Selected Quarterly Financial Data
(Unaudited)
| As of and for the quarters ended | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | 12/31/2022 | 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 | $ | 15,289 | $ | 13,941 | $ | 12,032 | $ | 11,705 | $ | 11,620 | $ | 11,990 | $ | 11,399 | $ | 11,208 | ||||||||||||||||
Interest expense | 3,520 | 1,599 | 768 | 713 | 764 | 844 | 943 | 1,092 | ||||||||||||||||||||||||
Net interest income | 11,769 | 12,342 | 11,264 | 10,992 | 10,856 | 11,146 | 10,456 | 10,117 | ||||||||||||||||||||||||
Provision (credit) for loan losses | (114 | ) | (685 | ) | 1,216 | (775 | ) | 150 | (136 | ) | (600 | ) | - | |||||||||||||||||||
Net interest income after provision (credit) for loan losses | 11,883 | 13,027 | 10,048 | 11,767 | 10,706 | 11,282 | 11,056 | 10,117 | ||||||||||||||||||||||||
Non-interest income | 411 | 406 | 326 | 363 | 337 | 180 | 101 | 203 | ||||||||||||||||||||||||
Non-interest expense | 7,156 | 6,273 | 6,418 | 6,517 | 5,609 | 6,083 | 5,321 | 4,541 | ||||||||||||||||||||||||
Income before income tax expense | 5,138 | 7,160 | 3,956 | 5,613 | 5,434 | 5,379 | 5,836 | 5,778 | ||||||||||||||||||||||||
Income tax expense | 1,127 | 1,712 | 1,018 | 1,417 | 1,380 | 1,405 | 1,425 | 1,532 | ||||||||||||||||||||||||
Net income | $ | 4,011 | $ | 5,448 | $ | 2,939 | $ | 4,196 | $ | 4,054 | $ | 3,974 | $ | 4,411 | $ | 4,246 | ||||||||||||||||
Per share data: | ||||||||||||||||||||||||||||||||
Earnings per share - basic | $ | 0.17 | $ | 0.23 | $ | 0.13 | $ | 0.18 | $ | 0.17 | $ | 0.17 | $ | 0.19 | $ | 0.19 | ||||||||||||||||
Earnings per share - diluted | 0.17 | 0.23 | 0.12 | 0.18 | 0.17 | 0.17 | 0.19 | 0.18 | ||||||||||||||||||||||||
Cash dividends declared | 0.04 | 0.35 | - | - | - | - | - | - | ||||||||||||||||||||||||
Book value at period end | 7.60 | 7.45 | 7.61 | 7.55 | 7.36 | 7.23 | 7.07 | 6.93 | ||||||||||||||||||||||||
Shares outstanding at period end | 23,785 | 23,785 | 23,673 | 23,316 | 23,316 | 23,279 | 23,196 | 22,899 | ||||||||||||||||||||||||
Basic weighted average shares outstanding | 23,785 | 23,743 | 23,535 | 23,316 | 23,304 | 23,196 | 22,899 | 22,801 | ||||||||||||||||||||||||
Fully diluted weighted average shares outstanding | 24,176 | 24,124 | 23,970 | 23,773 | 23,596 | 23,198 | 23,014 | 22,871 | ||||||||||||||||||||||||
Balance sheet data (at period end): | ||||||||||||||||||||||||||||||||
Total assets | $ | 1,292,127 | $ | 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 | 13,902 | 14,371 | 16,327 | 17,793 | 22,617 | 24,593 | 27,452 | 28,957 | ||||||||||||||||||||||||
Securities, held to maturity | 65,788 | 69,736 | 70,268 | 54,289 | 23,611 | 22,609 | 25,190 | 27,835 | ||||||||||||||||||||||||
Total loans | 1,118,081 | 1,082,210 | 1,005,640 | 934,193 | 926,876 | 878,380 | 902,781 | 900,368 | ||||||||||||||||||||||||
Allowance for loan losses | (17,781 | ) | (17,652 | ) | (18,245 | ) | (17,009 | ) | (17,733 | ) | (17,577 | ) | (17,668 | ) | (17,867 | ) | ||||||||||||||||
Total deposits | 1,026,675 | 1,010,137 | 974,342 | 962,313 | 941,927 | 931,150 | 913,757 | 926,321 | ||||||||||||||||||||||||
Shareholders' equity | 180,390 | 177,246 | 180,171 | 175,965 | 172,300 | 168,274 | 164,061 | 158,732 | ||||||||||||||||||||||||
Common cash dividends | 951 | 8,325 | - | - | - | - | - | - | ||||||||||||||||||||||||
Selected performance ratios: | ||||||||||||||||||||||||||||||||
Return on average total assets | 1.27 | % | 1.77 | % | 1.00 | % | 1.48 | % | 1.41 | % | 1.44 | % | 1.63 | % | 1.61 | % | ||||||||||||||||
Return on average shareholders' equity | 8.93 | % | 11.92 | % | 6.57 | % | 9.73 | % | 9.34 | % | 9.42 | % | 10.90 | % | 11.02 | % | ||||||||||||||||
Dividend payout ratio (1) | 5.98 | % | 38.52 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||
Net interest margin | 3.93 | % | 4.28 | % | 4.06 | % | 4.04 | % | 4.01 | % | 4.11 | % | 3.92 | % | 3.93 | % | ||||||||||||||||
Non-interest income to average assets | 0.13 | % | 0.13 | % | 0.11 | % | 0.13 | % | 0.12 | % | 0.07 | % | 0.04 | % | 0.08 | % | ||||||||||||||||
Non-interest expenses to average assets | 2.25 | % | 2.04 | % | 2.19 | % | 2.30 | % | 1.96 | % | 2.20 | % | 1.97 | % | 1.73 | % | ||||||||||||||||
Asset quality ratios: | ||||||||||||||||||||||||||||||||
Non-performing loans to total loans | 1.14 | % | 1.61 | % | 1.35 | % | 1.31 | % | 0.99 | % | 0.90 | % | 0.99 | % | 1.00 | % | ||||||||||||||||
Non-performing assets to total assets | 1.29 | % | 1.71 | % | 1.52 | % | 1.43 | % | 1.19 | % | 1.08 | % | 1.20 | % | 1.31 | % | ||||||||||||||||
Allowance for loan losses to non-performing loans | 139.63 | % | 101.25 | % | 134.23 | % | 139.42 | % | 193.59 | % | 223.54 | % | 197.10 | % | 198.72 | % | ||||||||||||||||
Allowance for loan losses to total loans | 1.59 | % | 1.63 | % | 1.81 | % | 1.82 | % | 1.91 | % | 2.00 | % | 1.96 | % | 1.98 | % | ||||||||||||||||
Net recoveries (charge-offs) to average loans | -0.15 | % | 0.00 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.04 | % | 0.00 | % | ||||||||||||||||
Liquidity and capital ratios: | ||||||||||||||||||||||||||||||||
Average loans to average deposits | 108.36 | % | 104.43 | % | 99.02 | % | 96.80 | % | 93.69 | % | 95.51 | % | 97.60 | % | 97.42 | % | ||||||||||||||||
Total shareholders' equity to total assets | 13.96 | % | 14.19 | % | 15.31 | % | 15.19 | % | 15.19 | % | 15.05 | % | 14.98 | % | 14.39 | % | ||||||||||||||||
Total capital to risk-weighted assets | 16.23 | % | 16.44 | % | 17.78 | % | 18.84 | % | 19.39 | % | 20.26 | % | 19.99 | % | 19.73 | % | ||||||||||||||||
Tier 1 capital to risk-weighted assets | 14.97 | % | 15.19 | % | 16.52 | % | 17.58 | % | 18.13 | % | 19.00 | % | 18.73 | % | 18.47 | % | ||||||||||||||||
Common equity tier 1 capital ratio to risk-weighted assets | 14.97 | % | 15.19 | % | 16.52 | % | 17.58 | % | 18.13 | % | 19.00 | % | 18.73 | % | 18.47 | % | ||||||||||||||||
Tier 1 leverage ratio | 14.33 | % | 14.56 | % | 15.36 | % | 15.29 | % | 15.11 | % | 14.98 | % | 14.79 | % | 14.68 | % | ||||||||||||||||
(1) Dividend payout ratio calculated by dividing dividends declared during the year by net income.
| Donald Mindiak | David J. Onderko |
| President and Chief Executive Officer | SVP & Chief Financial Officer |
| [email protected] | [email protected] |
SOURCE: First Commerce Bank