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

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LAKEWOOD, NJ / ACCESS Newswire / January 30, 2026 / First Commerce Bancorp, Inc. (the "Company"), (OTCID:CMRB), the holding company for First Commerce Bank (the "Bank"), today reported net income of $3.2 million and $8.3 million for the three months and the year ending December 31, 2025, respectively, as compared to $1.1 million and $4.5 million for the three months and the year ending December 31, 2024, respectively. Basic earnings per common share for the three months and the year ending December 31, 2025, were $0.16 and $0.41, respectively, compared to $0.06 and $0.21 for the three months and the year ending December 31, 2024, respectively.

President & CEO Donald Mindiak commented, "Successful execution of Bank's balance sheet growth initiative engaged during and through 2025 resulted in a year-over-year positive impact on a number of profitability metrics. This initiative coupled with the Federal Reserve's action of reducing short-term interest rates several times throughout the second half of 2025 allowed for more competitive interest-bearing liability costs, further enhancing operational results. Reductions in non-accrual loan balances in addition to systematic increases in the allowance provision, continues to provide a conservative buffer for a potential downturn in asset quality."

He continued, "The successful conclusion of the recent Subordinated Note Offering speaks to the confidence investors have in our ability to perform and the utilization of a portion of that capital raise in the just announced Tender Offer reflects the efforts that the Board and Management continue to exercise in an effort to enhance shareholder value. Building on our prior results and engaging in the aforementioned initiatives, management will continue in its efforts to explore and execute business strategies that focus on continued enhanced franchise and shareholder value."

Financial Highlights

Balance Sheet Review

Total assets increased by $243.2 million or 15.7% to $1.79 billion at December 31, 2025, from $1.55 billion at December 31, 2024. The increase in total assets was primarily related to increases in total cash and cash equivalents, total investment securities and total loans receivable during the year ending December 31, 2025.

Total cash and cash equivalents increased by $3.9 million or 3.0% to $136.4 million at December 31, 2025, from $132.5 million at December 31, 2024. This increase was primarily due to increases in total deposits and wholesale borrowings.

Total investment securities increased by $52.1 million or 46.5% to $164.3 million at December 31, 2025, from $112.2 million at December 31, 2024. The increase in investment securities resulted primarily from $91.4 million in purchases of investment securities, partially offset by $17.8 million in redemptions and maturities and $21.6 million of amortization of mortgage-backed securities.

Total loans receivable, net of allowance for credit losses increased by $178.4 million or 14.6% to $1.40 billion at December 31, 2025, from $1.22 billion at December 31, 2024. Commercial mortgage loans and multifamily mortgages loans increased $182.6 million and $43.1 million, respectively, partially offset by decreases in construction loans, residential loans and home equity loans of $34.4 million, $9.2 million and $2.8 million, respectively. The allowance for credit losses increased by $1.3 million or 8.6% to $16.0 million or 1.13% of total loans at December 31, 2025, as compared to $14.8 million or 1.19% of total loans at December 31, 2024.

Total deposits increased $120.8 million or 10.3% to $1.30 billion at December 31, 2025, from $1.17 billion at December 31, 2024. Time deposits increased $65.0 million, savings deposits increased $36.7 million, non-interest bearing demand deposits increased $22.5 million, and money market accounts increased $1.3 million, partially offset by a decrease of $16.9 million in brokered deposits and $648,000 in NOW account deposits.

As an augmentation to deposit growth, borrowings which are primarily Federal Home Loan Bank advances increased $77.5 million or 44.3% to $252.5 million at December 31, 2025, from $175.0 million at December 31, 2024, which assisted in the facilitation of the loan growth discussed previously.

During the fourth quarter of 2025, the Company completed a subordinated note offering totaling $38.9 million, net of issuance cost. The net proceeds from the issuance of subordinated note will be used for general corporate purposes.

Stockholders' equity increased by $3.1 million or 1.8% to $175.4 million at December 31, 2025, from $172.3 million at December 31, 2024. The increase in stockholders' equity was primarily due to increases of $8.3 million in retained earnings and $1.6 million in additional paid-in-capital, offset by a decrease of $6.6 million in repurchases of common stock. During the year ending December 31, 2025, the Company repurchased 1,051,000 shares for approximately $6.6 million, or a weighted average price of approximately $6.23 per share.

Three Months of Operations

Net interest income increased by $4.7 million or 58.9% to $12.7 million for the three months ending December 31, 2025, from $8.0 million for the three months ending December 31, 2024. The increase in net interest income was primarily due to an increase in total interest and dividend income of $5.6 million as a result of an increase in the balance of average interest earning assets, as well as an increase in the yield on average earning assets and a decrease in the cost of interest-bearing liabilities, partially offset by an increase in total interest expense of $961,000 as a result of an increase in average interest-bearing liabilities.

Total interest and dividend income increased by $5.6 million or 28.7% to $25.3 million for the three months ending December 31, 2025, from $19.7 million for the three months ending December 31, 2024. Interest income on loans, including fees, increased $4.6 million or 26.6% to $22.1 million for the three months ending December 31, 2025, as compared to $17.5 million for the three months ending December 31, 2024. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $152.9 million or 12.3% to $1.40 billion for the three months ending December 31, 2025, as compared to $1.25 billion for the three months ending December 31, 2024. Average yield on loans receivable was 6.27% for the three months ending December 31, 2025, increasing seventy basis points over the comparative time period in 2024. Interest income on investment securities increased by $1.4 million or 155.4% to $2.3 million for the three months ending December 31, 2025, as compared to $905,000 for the same period in the prior year, as a result of purchasing and replacing paydowns of investment securities with higher yielding investment securities. The average balance of the investment security portfolio increased by $83.2 million or 95.6% to $170.2 million for the three months ending December 31, 2025, as compared to $87.0 million for the same period in the prior year. The average yield on investment securities increased by 127 basis points to 5.43% for the three months ending December 31, 2025, as compared to 4.16% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $415,000 or 38.1% to $674,000 for the three months ending December 31, 2025, as compared to $1.1 million for the same period in the prior year. This decrease resulted primarily from a decline in average yield of seventy-eight basis points to 3.66% for the three months ending December 31, 2025, as compared to 4.44% for the same period in the prior year. The average balance of interest-bearing deposits with banks decreased by $24.6 million or 25.2% to $73.0 million for the three months ending December 31, 2025, as compared to $97.6 million for the same period in the prior year.

Total interest expense increased by $961,000 or 8.2% to $12.7 million for the three months ending December 31, 2025, from $11.7 million for the three months ending December 31, 2024. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $201.8 million or 17.7%, to $1.34 billion for the three months ending December 31, 2025, from $1.14 billion for the three months ending December 31, 2024. Despite the increase in average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased by thirty-four basis points to 3.74% for the three months ending December 31, 2025, as compared to 4.08% for the three months ending December 31, 2024. The increase in average balance of interest-bearing liabilities included a $131.3 million increase in average interest-bearing deposit liabilities and a $69.6 million increase in average wholesale borrowings for the three months ending December 31, 2025. The increase in interest-bearing liabilities was primarily used to facilitate asset growth and maintain an increased level of liquidity consistent with regulatory guidance.

During the fourth quarter of 2025, the Company recorded a $348,000 provision for credit losses as compared to a $55,000 reversal of provision for credit losses for the same period in the prior year. The increase in provision for credit losses for the fourth quarter of 2025 was primarily due to the increase in gross loans and management's evaluation of both quantitative and qualitative factors which impact the CECL model calculations. The Company recorded a $292,000 provision for credit losses on loans, a $166,000 provision for credit losses for unfunded commitments and a $110,000 reversal of provision for credit losses on corporate securities held-to-maturity. Management believes that the allowance for credit losses on loans and investment securities at December 31, 2025, and 2024 were appropriate.

Net interest margin increased by eighty-three basis points to 3.03% for the three months ending December 31, 2025, compared to 2.20% for the three months ending December 31, 2024. The increase in the net interest margin was primarily due to an increase in the average balance of total interest-earning assets of $214.6 million or 14.9% to $1.66 billion for the three months ending December 31, 2025, compared to $1.44 billion for the three months ending December 31, 2024, and an increase in average yield of interest-earning assets to 6.07% for the three months ending December 31, 2025 from 5.43% for the three months ending December 31, 2024, coupled with a decrease in the average cost of interest-bearing liabilities to 3.74% for the three months ending December 31, 2025 from 4.08% for the three months ending December 31, 2024, partially offset by an increase in the total interest-bearing liabilities of $201.8 million or 17.7% to $1.34 billion for the three months ending December 31, 2025, from $1.14 billion for the three months ending December 31, 2024.

Non-interest income increased by $320,000 or 77.7% to $732,000 for the three months ending December 31, 2025, from $412,000 for the three months ending December 31, 2024. The increase in total non-interest income was primarily due to increases in service charges and fees of $85,000 and other income of $226,000 for the three months ending December 31, 2025 . Other income for the three months ending December 31, 2024 was impacted by a $237,000 loss on sale of investment securities recorded in that period.

Non-interest expense increased by $1.7 million or 24.4% to $8.9 million for the three months ending December 31, 2025, compared to $7.1 million for the three months ending December 31, 2024. Salaries and employee benefits increased by $737,000 or 16.9% to $5.1 million for the three months ending December 31, 2025, as compared to $4.4 million for the three months ending December 31, 2024. The increase in salaries and employee benefits resulted primarily due to a slight increase in headcount necessary to assist in the growth of the Bank, employee incentives and annual merit increases partially offset by a decrease in health insurance costs year over year. Occupancy and equipment expense increased by $270,000 or 27.2% to $1.3 million for the three months ending December 31, 2025, as compared to $994,000 for the three months ending December 31, 2024, primarily due to the Company leasing additional office space to relocate its corporate offices and the increase in facilities maintenance contracts. Advertising and marketing expense increased $255,000 or 359.2% to $184,000 for the three months ending December 31, 2025, as compared to a benefit of $71,000 for the same period in the prior year, primarily due to an increase in advertising campaigns promoting the products and services. Professional fees increased $307,000 or 106.2% to $596,000 for the three months ending December 31, 2025, as compared to $289,000 for the three months ending December 31, 2024, primarily due to increases in legal fees, director fees and other professional services, partially offset by a decrease in audit and compliance fees. Data processing costs decreased by $133,000 or 25.6% to $386,000 for the three months ending December 31, 2025 from $519,000 for the three months ending December 31, 2024, as a result of Company incurring additional cost related to new products and services in the fourth quarter of 2024 that did not occur in the fourth quarter of 2025. FDIC insurance assessment increased $128,000 or 69.6% to $312,000, for the three months ending December 31, 2025, from $184,000 for the three months ending December 31, 2024, as a result of an increase in the assessment rate as well as the growth in total assets. Other operating expenses increased by $170,000 or 20.1% to $1.0 million for the three months ending December 31, 2025, from $844,000 for the three months ending December 31, 2024, primarily due to increases in various components of other operating expenses. Other operating expenses are primarily comprised of loan related expenses, dues and subscriptions, digital banking expenses, sponsorships, training and education, postage, meals and entertainment, software maintenance and depreciation, and miscellaneous expenses. Management's focus continues to remain on prudently managing its operating expenses, while executing on the organic growth initiative.

The income tax provision increased by $843,000 or 504.8% to $1.0 million for the three months ending December 31, 2025, from $167,000 for the three months ending December 31, 2024. The increase in the income tax provision resulted primarily from an increase in the pre-tax income year over year of $2.9 million or 218.2% to $4.2 million for the three months ending December 31, 2025, from $1.3 million for the three months ending December 31, 2024. The effective tax rate for the quarter ended December 31, 2025, was 24.1% compared to 12.7% for the quarter ending December 31, 2024. The effective tax rate for the quarter ended December 31, 2024, was impacted by a reduction in New York state tax apportionment.

Full Year of Operations

Net interest income increased by $8.8 million or 26.9% to $41.8 million for the year ending December 31, 2025, from $32.9 million for the year ending December 31, 2024. The increase in net interest income was the result of an increase in total interest and dividend income of $13.0 million resulting from increases in the average balance and average yield on interest-earning assets, as well as a decrease in the average cost of interest-bearing liabilities, partially offset by an increase in total interest expense of $4.1 million as a result of an increase in average balance of interest-bearing liabilities.

Total interest and dividend income increased by $13.0 million or 16.5% to $91.6 million for the year ending December 31, 2025, from $78.7 million for the year ending December 31, 2024. Interest income on loans, including fees, increased $7.2 million or 10.1% to $78.6 million for the year ending December 31, 2025, as compared to $71.4 million for the year ending December 31, 2024. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $78.8 million or 6.3% to $1.33 billion for the year ending December 31, 2025, as compared to $1.25 billion for the year ending December 31, 2024. Average yield on loans receivable was 5.91% for the year ending December 31, 2025, an increase of twenty-one basis points year over year. Interest income on investment securities increased by $5.9 million or 195.6% to $8.9 million for the year ending December 31, 2025, as compared to $3.0 million for the same period in the prior year, as a result of purchasing and replacing paydowns of investment securities with higher yielding investment securities. The average balance of the investment securities portfolio increased by $90.9 million or 115.2% to $169.8 million for the year ending December 31, 2025, as compared to $78.9 million for the same period in the prior year. The average yield on investment securities increased by 142 basis points to 5.23% for the year ending December 31, 2025, as compared to 3.81% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $215,000 or 6.1% to $3.3 million for the year ending December 31, 2025, as compared to $3.5 million for the same period in the prior year. This decrease resulted from a decrease in average yield on interest-bearing deposits with banks of seventy-four basis points to 4.04% as compared to 4.78% for the same period in the prior year. Dividend income on FHLB stock increased by $86,000 or 11.5% to $832,000 for the year ending December 31, 2025, as compared to $746,000 for the same period in the prior year, primarily as a result of an increase in average balance of restricted stock of $2.5 million or 28.4% to $11.2 million for the year ending December 31, 2025, as compared to $8.7 million for the same period in the prior year.

Total interest expense increased by $4.1 million or 9.0% to $49.9 million for the year ending December 31, 2025, from $45.8 million for the year ending December 31, 2024. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $168.3 million or 15.1%, to $1.28 billion for the year ending December 31, 2025, from $1.12 billion for the year ending December 31, 2024. Despite the increase in average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased by twenty-two basis points to 3.88% for the year ending December 31, 2025, as compared to 4.10% for the year ending December 31, 2024. The increase in average balance of interest-bearing liabilities included a $114.7 million increase in average interest-bearing deposit liabilities, a $53.3 million increase in average wholesale borrowings and a $216,000 increase in average subordinated note for the year ending December 31, 2025. The increase in interest-bearing liabilities was primarily used to facilitate balance sheet growth and to maintain an increased level of liquidity consistent with regulatory guidance and support the loan growth.

During the year ending December 31, 2025, the Company recorded a $1.6 million provision for credit losses as compared to a $308,000 provision for credit losses for the same period in the prior year. Based on the results of the CECL model and management's evaluation of both quantitative and qualitative factors as well as the loan growth for the year ending December 31, 2025, the Company recorded a provision for credit losses of $1.4 million on loans, a $323,000 provision for credit losses for unfunded commitments and a $80,000 reversal of provision for credit losses on corporate securities held-to-maturity. Based upon the aforementioned analyses, management believes that the allowance for credit losses on loans and investment securities at December 31, 2025, and 2024 were appropriate.

Net interest margin increased by twenty-nine basis points to 2.62% for the year ending December 31, 2025, compared to 2.33% for the year ending December 31, 2024. The increase in the net interest margin was primarily due to an increase in the average balance of total interest-earning assets of $180.4 million or 12.8% to $1.59 billion for the year ending December 31, 2025, compared to $1.41 billion for the year ending December 31, 2024, and an increase in average yield of interest-earning assets to 5.75% for the year ending December 31, 2025 from 5.57% for the year ending December 31, 2024. coupled with a decrease in the average cost of interest-bearing liabilities to 3.88% for the year ending December 31, 2025, from 4.10% for the year ending December 31, 2024, partially offset by an increase in the total interest-bearing liabilities of $168.3 million or 15.1% to $1.28 billion for the year ending December 31, 2025, from $1.12 billion for the year ending December 31, 2024.

Non-interest income increased by $1.5 million or 71.8% to $3.6 million for the year ending December 31, 2025, from $2.1 million for the year ending December 31, 2024. The increase in total non-interest income resulted primarily from an increase in other income of $886,000 as a result of a non-recurring gain of $778,000 on the sale of a Company owned property recorded in the first quarter of 2025. Excluding this non-recurring gain, other income would have increased $108,000 when compared to the same period in the prior year. Service charges and fees increased by $574,000 or 60.2% to $1.5 million for the year ending December 31, 2025, from $953,000 for the same period in the prior year, primarily due to an increase in loan fees of $389,000 and an increase in deposit accounts fees of $185,000.

Non-interest expense increased by $3.9 million or 13.4% to $33.0 million for the year ending December 31, 2025, as compared to $29.1 million for the year ending December 31, 2024. Salaries and employee benefits increased by $1.5 million or 8.3% to $19.4 million for the year ending December 31, 2025, as compared to $17.9 million for the year ending December 31, 2024. The increase in salaries and employee benefits resulted primarily due to a slight increase in headcount necessary to assist in the growth of the Bank, employee incentives, and annual merit increases partially offset by a decrease in health insurance costs year over year. Occupancy and equipment expense increased by $1.0 million or 27.6% to $4.7 million for the year ending December 31, 2025, as compared to $3.7 million for the year ending December 31, 2024, primarily due to the Company leasing additional office space to relocate its corporate offices, other occupancy related expenses and facilities maintenance contracts. Advertising and marketing expense increased by $210,000 or 97.7% to $425,000 for the year ending December 31, 2025, as compared to $215,000 for the year ending December 31, 2024, as a result of Company engaging in several advertising campaigns to promote the products and services and expanding on business development efforts. Professional fees increased $389,000 or 22.7% to $2.1 million for the year ending December 31, 2025, as compared to $1.7 million for the year ending December 31, 2024, primarily due to increases in legal fees, director fees and consulting fees, partially offset by a decrease in audit and other professional fees. FDIC insurance assessment increased $368,000 or 51.5% to $1.1 million for the year ending December 31, 2025, from $715,000 for the year ending December 31, 2024, as a result of an increase in the assessment rate as well as the growth in total assets. Other operating expenses increased by $467,000 or 13.7% to $3.9 million for the year ending December 31, 2025, from $3.4 million for the year ending December 31, 2024, primarily due to increases in various components of other operating expenses. Other operating expenses are primarily comprised of loan related expenses, communications, dues and subscriptions, digital banking expenses, sponsorships, training and education, postage, meals and entertainment, software maintenance and depreciation, and miscellaneous expenses. Management's focus continues to remain on prudently managing its operating expenses, while executing on our organic growth initiative.

The income tax provision increased by $1.4 million or 131.2% to $2.5 million for the year ending December 31, 2025, from $1.1 million for the year ending December 31, 2024. This increase in the income tax provision resulted primarily from an increase in pre-tax income of $5.1 million or 91.9% to $10.7 million for the year ending December 31, 2025, from $5.6 million for the year ending December 31, 2024. The effective tax rate for the year ending December 31, 2025, was 23.1% compared to 19.2% for the year ending December 31, 2024. The effective tax rate for the year ending December 31, 2024, was impacted by a reduction in New York state tax apportionment.

Asset Quality

The allowance for credit losses increased by $1.3 million or 8.6% to $16.0 million or 1.13% of total loans at December 31, 2025, as compared to $14.8 million or 1.19% of total loans at December 31, 2024. During the year 2025, the Company added a $1.4 million provision to the allowance for credit losses and had net charge-offs of $88,000. Based on the results of the CECL model and management's evaluation of both quantitative and qualitative factors during the year ending December 31, 2025, changes in the allowance for credit losses were adjusted accordingly.

The Bank had non-accrual loans totaling $10.5 million or 0.74% of total loans at December 31, 2025, as compared to $16.6 million or 1.34% of total loans at December 31, 2024. Non-accrual loans decreased by $6.1 million from December 31, 2024, primarily as a result of one construction loan in the amount of approximately $6.9 million for which the Company obtained the title and was reclassed to other real estate owned during the third quarter of 2025. The allowance for credit losses was 152.4% of non-accrual loans at December 31, 2025, compared to 88.7%, at December 31, 2024.

About First Commerce Bancorp, Inc.

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

Forward-Looking Statements

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

In addition to the factors previously disclosed in prior Bank communications and those identified elsewhere, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the impact of changes in interest rates and in the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Commerce Bank ' s investment securities portfolio; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Commerce Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; inflation; customer acceptance of the Bank ' s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with certain corporate initiatives; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.

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Press Contact: Donald Mindiak

President and Chief Executive Officer

First Commerce Bancorp, Inc.

Lakewood, NJ 08701

(732) 364-0032

[email protected]

http://firstcommercebk.com

SOURCE: First Commerce Bancorp, Inc.