First Commerce Bank Earns $2.9 Million and $7.1 Million for the Three and Six months Ended June 30, 2022
First Commerce Bank Earns $2.9 Million and $7.1 Million for the Three and Six months Ended June 30, 2022
PR Newswire
LAKEWOOD, N.J., July 29, 2022
LAKEWOOD, N.J., July 29, 2022 /PRNewswire/ — First Commerce Bank (the “Bank”) (OTC: CMRB) today repo…
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First Commerce Bank Earns $2.9 Million and $7.1 Million for the Three and Six months Ended June 30, 2022
PR Newswire
LAKEWOOD, N.J., July 29, 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
International
Beloved mall retailer files Chapter 7 bankruptcy, will liquidate
The struggling chain has given up the fight and will close hundreds of stores around the world.
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It has been a brutal period for several popular retailers. The fallout from the covid pandemic and a challenging economic environment have pushed numerous chains into bankruptcy with Tuesday Morning, Christmas Tree Shops, and Bed Bath & Beyond all moving from Chapter 11 to Chapter 7 bankruptcy liquidation.
In all three of those cases, the companies faced clear financial pressures that led to inventory problems and vendors demanding faster, or even upfront payment. That creates a sort of inevitability.
Related: Beloved retailer finds life after bankruptcy, new famous owner
When a retailer faces financial pressure it sets off a cycle where vendors become wary of selling them items. That leads to barren shelves and no ability for the chain to sell its way out of its financial problems.
Once that happens bankruptcy generally becomes the only option. Sometimes that means a Chapter 11 filing which gives the company a chance to negotiate with its creditors. In some cases, deals can be worked out where vendors extend longer terms or even forgive some debts, and banks offer an extension of loan terms.
In other cases, new funding can be secured which assuages vendor concerns or the company might be taken over by its vendors. Sometimes, as was the case with David's Bridal, a new owner steps in, adds new money, and makes deals with creditors in order to give the company a new lease on life.
It's rare that a retailer moves directly into Chapter 7 bankruptcy and decides to liquidate without trying to find a new source of funding.
Image source: Getty Images
The Body Shop has bad news for customers
The Body Shop has been in a very public fight for survival. Fears began when the company closed half of its locations in the United Kingdom. That was followed by a bankruptcy-style filing in Canada and an abrupt closure of its U.S. stores on March 4.
"The Canadian subsidiary of the global beauty and cosmetics brand announced it has started restructuring proceedings by filing a Notice of Intention (NOI) to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). In the same release, the company said that, as of March 1, 2024, The Body Shop US Limited has ceased operations," Chain Store Age reported.
A message on the company's U.S. website shared a simple message that does not appear to be the entire story.
"We're currently undergoing planned maintenance, but don't worry we're due to be back online soon."
That same message is still on the company's website, but a new filing makes it clear that the site is not down for maintenance, it's down for good.
The Body Shop files for Chapter 7 bankruptcy
While the future appeared bleak for The Body Shop, fans of the brand held out hope that a savior would step in. That's not going to be the case.
The Body Shop filed for Chapter 7 bankruptcy in the United States.
"The US arm of the ethical cosmetics group has ceased trading at its 50 outlets. On Saturday (March 9), it filed for Chapter 7 insolvency, under which assets are sold off to clear debts, putting about 400 jobs at risk including those in a distribution center that still holds millions of dollars worth of stock," The Guardian reported.
After its closure in the United States, the survival of the brand remains very much in doubt. About half of the chain's stores in the United Kingdom remain open along with its Australian stores.
The future of those stores remains very much in doubt and the chain has shared that it needs new funding in order for them to continue operating.
The Body Shop did not respond to a request for comment from TheStreet.
bankruptcy pandemic canadaGovernment
Are Voters Recoiling Against Disorder?
Are Voters Recoiling Against Disorder?
Authored by Michael Barone via The Epoch Times (emphasis ours),
The headlines coming out of the Super…
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Authored by Michael Barone via The Epoch Times (emphasis ours),
The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.
With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.
The primary results have spotlighted some of both nominees’ weaknesses.
Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.
Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).
Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.
When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.
High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.
There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.
Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.
Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.
The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.
More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.
St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.
Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.
In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.
2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.
Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.
Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.
Government
Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence
Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence
Authored by Zachary Stieber via The Epoch Times (emphasis ours),
The…
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Authored by Zachary Stieber via The Epoch Times (emphasis ours),
The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.
VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”
He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”
Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”
The agency searched for such data and did not find any.
“The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.
“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.
The VA’s mandate remains in place to this day.
The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.
There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.
President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.
President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.
“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.
Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.
“By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.
The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.
“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.
“This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”
The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.
A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.
Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”
Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence
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When Military Rule Supplants Democracy
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Walmart has really good news for shoppers (and Joe Biden)
Another beloved brewery files Chapter 11 bankruptcy
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