First Commerce Bancorp, Inc., Reports the Fourth Quarter and Year-to-Date 2024 Results

ACCESS Newswire · First Commerce Bancorp, Inc.

In This Article:

First Commerce Bancorp, Inc. (the "Company"), (OTC PINK:CMRB), the holding company for First Commerce Bank (the "Bank"), today reported net income of $1.1 million and $4.5 million for the three months and the year ended December 31, 2024, respectively, as compared to net income of $5.8 million and $13.8 million for the three months and the year ended December 31, 2023, respectively. Basic earnings per common share were $0.06 and $0.21 for the three months and the year ended December 31, 2024, respectively, as compared to $0.25 and $0.58 for the three months and the year ended December 31, 2023, respectively.

President & CEO Donald Mindiak commented, "Despite the challenging economic environment for financial institutions for the majority of 2024, the Company successfully engaged in several initiatives that provided enhanced shareholder value and positive quantitative metrics. Regarding the on-going Stock Repurchase Plan, through year-end 2024, the Company has repurchased over 3.4 million shares of its common stock at an average price of $6.37 per common share which is slightly over $2.00 per share less than our book value at December 31, 2024. Since shares repurchased at a discount to book value are accretive to book value, additional shareholder value has been created through this initiative. Additionally, diligent efforts by our credit team have reduced non-accrual loan balances year-over-year resulting in improving asset quality metrics. Lastly, the deposit portfolio was restructured in 2024 to place less reliance on volatile time deposit funding and more reliance on core deposit relationships. These efforts have been aided by the Federal Reserve easing short-term interest rates by one-hundred basis points in the second half of 2024 coupled with our strategic acquisition of several key business development officers. We remain confident in our ability to prudently grow our core business in the markets we serve while striving for the successful enhancement of franchise and shareholder value."

Continuing, Mr. Mindiak remarked that, "We have completed the first 50% of the second 10% Stock Repurchase Plan and have immediately begun the process of implementing the second 50% of that plan. This effort continues to provide enhanced value to our shareholder base which remains a driving force in our commitment to enhance value while prudently managing risk."

Financial Highlights

  • Total interest income increased by $708,000 or 3.7% for the fourth quarter of 2024 compared to the fourth quarter of 2023 and increased $6.6 million or 9.1% for the year 2024 as compared to the same period in 2023 as a result of the growth in average interest-earning assets year over year.

  • Total interest expense increased by $1.5 million or 15.0% for the fourth quarter of 2024 compared to the fourth quarter of 2023 and increased $13.1 million or 40.0% for the year 2024 as compared to the same period in 2023 as a result of both the cost of and the growth in interest-bearing liabilities.

  • Total cost of interest-bearing liabilities increased by thirty basis points to 4.08% for the fourth quarter of 2024 compared to 3.78% for the fourth quarter of 2023 and increased by eighty-four points to 4.10% at year-end 2024 as compared to 3.25% at year-end 2023.

  • Net interest margin decreased by thirty-one basis points to 2.20% for the fourth quarter of 2024 as compared to 2.51% for the fourth quarter of 2023. and decreased fifty-nine basis points to 2.33% at year-end 2024 as compared to 2.92% at year-end 2023.

  • Total assets increased by $115.0 million or 8.0% to $1.55 billion at December 31, 2024 compared to $1.44 billion at December 31, 2023.

  • Total deposits increased by $77.1 million or 7.0% to $1.17 billion at December 31, 2024 compared to $1.10 billion at December 31, 2023.

  • The annualized return on average total assets was 0.31% at December 31, 2024 compared to 0.99% at December 31, 2023.

  • The annualized return on average shareholders' equity was 2.55% at December 31, 2024 compared to 7.51% at December 31, 2023.

  • The book value per common share was $8.39 at December 31, 2024 compared to $8.06 at December 31, 2023.