First Commerce Bancorp, Inc. Reports First Quarter 2026 Results and Declares a Cash Dividend

Lakewood, N.J., April 27, 2026 – First Commerce Bancorp, Inc. (the “Company”), (OTCID: CMRB), the holding company for First Commerce Bank (the “Bank”), today reported net income of $3.5 million for the three months ending March 31, 2026, as compared to $1.7 million for the three months ending March 31, 2025, respectively. Basic earnings per common share for the three months ending March 31, 2026, was $0.18, compared to $0.08 for the three months ending March 31, 2025. The Board of Directors has unanimously declared a cash dividend of $0.05 per common share for shareholders of record on May 13, 2026, with a payable date of May 28, 2026. 

President & CEO Donald Mindiak commented, “The growth in loans receivable and investment securities and operational results during the first quarter of 2026 demonstrate the continuation of the successful execution of the organic growth initiatives established and enacted starting with the first quarter of 2025. Net income on both a year-over-year and linked quarter basis reflects increases in revenue and the profitability metrics that accompany that performance. The additional capital raised through the Subordinated Note Offering occurred in the absence of any shareholder ownership dilution and allowed for the prudent deployment of a portion of that capital to repurchase an additional 3.0 million common shares at $7.00 per share which was a material discount to our tangible book value, accretive to book value calculations and improved our tangible book value by $0.75 per share year-over-year to $9.22 per share at quarter end.”

Continuing, he stated, “The reinstatement of a cash dividend, which is 25% greater than previous cash dividend declarations prior to cessation, underscores the confidence the Board and Management have in our collective ability to successfully formulate, engage and execute corporate initiatives that have the capacity to provide enhancements to franchise and shareholder value. We look forward to the opportunities and challenges that lie ahead, heartened by the confidence that our dedicated shareholders have in our ability to perform on their behalf.”  

Financial Highlights

Balance Sheet Review

Total assets increased by $26.1 million or 1.5% to $1.82 billion at March 31, 2026, from $1.79 billion at December 31, 2025. The increase in total assets was primarily related to increases in total loans receivable, total investment securities and bank-owned life insurance, offset by a decrease in total cash and cash equivalents during the three months ending March 31, 2026, in an effort to deploy lower yielding liquid assets into higher yielding loans and investment securities.

Total cash and cash equivalents decreased by $74.3 million or 54.5% to $62.1 million at March 31, 2026, from $136.4 million at December 31, 2025. This decrease was primarily due to funding of loan growth and investment securities purchases.

Total investment securities increased by $36.0 million or 21.9% to $200.3 million at March 31, 2026, from $164.3 million at December 31, 2025. The increase in investment securities resulted primarily from $47.7 million in purchases of investment securities, partially offset by $5.7 million in redemptions and maturities and $6.0 million of amortization of mortgage-backed securities.

Total loans receivable, net of allowance for credit losses increased by $49.2 million or 3.5% to $1.45 billion at March 31, 2026, from $1.40 billion at December 31, 2025. Commercial mortgage loans increased $22.9 million, construction loans increased $22.4 million, and 1-4 family mortgage loans increased $5.4 million, partially offset by a decrease in multifamily loans of $2.0 million. The allowance for credit losses decreased by $478,000 or 3.0% to $15.5 million or 1.06% of total loans at March 31, 2026, as compared to $16.0 million or 1.13% of total loans at December 31, 2025, based on an evaluation of the quantitative and qualitative factors used for the CECL Model and a comprehensive review of the Bank’s loan loss history.

Total deposits increased $28.1 million or 2.2% to $1.32 billion at March 31, 2026, from $1.30 billion at December 31, 2025. Money market deposits increased $29.2 million, non-interest-bearing demand deposits increased $5.3 million, savings accounts increased $3.3 million, and brokered CDs increased $18.6 million, partially offset by a decrease of $27.9 million in certificates of deposit.

Borrowings, which are primarily Federal Home Loan Bank advances increased $13.0 million or 5.1% to $265.5 million at March 31, 2026, from $252.5 million at December 31, 2025, which assisted in the facilitation of the loan and investment growth discussed previously.

Stockholders’ equity decreased by $19.0 million or 10.8% to $156.4 million at March 31, 2026, from $175.4 million at December 31, 2025. The decrease in stockholders’ equity was primarily due to an increase in treasury stock of $21.2 million and an increase in accumulated other comprehensive loss of $453,000, partially offset by an increase of $2.6 million in retained earnings. During the three months ending March 31, 2026, the Company completed a tender offer to repurchase 3.0 million shares of its outstanding common stock at $7.00 per common share for a total cost of $21.0 million which resulted in an increase in treasury stock.

Three Months of Operations

Net interest income increased by $3.5 million or 40.1% to $12.1 million for the three months ending March 31, 2026, from $8.6 million for the three months ending March 31, 2025. The increase in net interest income was primarily due to an increase in total interest and dividend income of $4.5 million as a result of an increase in the average balance of average interest earning assets, partially offset by an increase in total interest expense of $1.0 million as a result of an increase in the average balance of average interest-bearing liabilities.

Total interest and dividend income increased by $4.5 million or 21.8% to $24.9 million for the three months ending March 31, 2026, from $20.5 million for the three months ending March 31, 2025. Interest income on loans, including fees, increased $3.9 million or 22.7% to $21.3 million for the three months ending March 31, 2026, as compared to $17.4 million for the three months ending March 31, 2025. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $185.6 million or 14.9% to $1.43 billion for the three months ending March 31, 2026, as compared to $1.24 billion for the three months ending March 31, 2025. Average yield on loans receivable was 6.05% for the three months ending March 31, 2026, increasing thirty-eight basis points over the comparative time period in 2025. Interest income on investment securities increased by $662,000 or 35.6% to $2.5 million for the three months ending March 31, 2026, as compared to $1.9 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 security portfolio increased by $26.5 million or 17.5% to $178.1 million for the three months ending March 31, 2026, as compared to $151.6 million for the same period in the prior year. The average yield on investment securities increased by seventy-six basis points to 5.66% for the three months ending March 31, 2026, as compared to 4.90% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $159,000 or 16.0% to $834,000 for the three months ending March 31, 2026, as compared to $1.0 million for the same period in the prior year. This decrease resulted primarily from a decline in average yield of sixty-two basis points to 3.50% for the three months ending March 31, 2026, as compared to 4.12% for the same period in the prior year. Dividend income on restricted stock increased moderately as a result of an increase in average balance of restricted stock of $3.1 million to $12.5 million for the three months ending March 31, 2026, as compared to $9.4 million for the same period in the prior year despite a decrease in average yield of 160 basis points to 7.74% for the three months ending March 31, 2026, as compared to 9.34% for the same period in the prior year.

Total interest expense increased by $1.0 million or 8.5% to $12.8 million for the three months ending March 31, 2026, from $11.8 million for the three months ending March 31, 2025. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $218.3 million or 18.2%, to $1.42 billion for the three months ending March 31, 2026, from $1.20 billion for the three months ending March 31, 2025. The increase in total interest expense was attributable to an increase in average balance of interest-bearing liabilities, partially offset by a decrease in the average cost of interest-bearing liabilities of thirty-two basis points to 3.67% for the three months ending March 31, 2026, as compared to 3.99% for the three months ending March 31, 2025. The increase in average balance of interest-bearing liabilities included a $111.5 million increase in average interest-bearing deposit liabilities, a $67.9 million increase in average wholesale borrowings, and a $39.0 million addition of subordinated notes for the three months ending March 31, 2026. The increase in interest-bearing liabilities was primarily used to facilitate asset growth and strategic initiatives as well as to maintain an increased level of liquidity consistent with regulatory guidance.

During the first quarter of 2026, the Company recorded a $617,000 reversal of provision for credit losses as compared to a $83,000 provision for credit losses for the same period in the prior year. The decrease in provision for credit losses for the first quarter of 2026, was primarily due to management’s evaluation of both quantitative and qualitative factors, and a comprehensive loss history review, which impacts the CECL model calculations, despite an increase of $48.7 million in gross loans receivable. The Company recorded a $478,000 reversal of provision for credit losses on loans, a $125,000 reversal of provision for credit losses for unfunded commitments and a $14,000 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 March 31, 2026, and 2025 were appropriate.

Net interest margin increased by fifty-two basis points to 2.85% for the three months ending March 31, 2026, compared to 2.33% for the three months ending March 31, 2025. The increase in the net interest margin was primarily due to an increase in the average balance of total interest-earning assets of $214.2 million or 14.3% to $1.72 billion for the three months ending March 31, 2026, compared to $1.50 billion for the three months ending March 31, 2025, and an increase in average yield of interest-earning assets to 5.89% for the three months ending March 31, 2026 from 5.52% for the three months ending March 31, 2025, coupled with a decrease in the average cost of interest-bearing liabilities to 3.67% for the three months ending March 31, 2026 from 3.99% for the three months ending March 31, 2025, partially offset by an increase in the average balance of total interest-bearing liabilities of $218.3 million or 18.2% to $1.42 billion for the three months ending March 31, 2026, from $1.20 billion for the three months ending March 31, 2025.

Non-interest income decreased by $404,000 or 29.0% to $1.0 million for the three months ending March 31, 2026, from $1.4 million for the three months ending March 31, 2025. The decrease in total non-interest income was primarily due to a decrease of $752,000 in other income, partially offset by increases in service charges and fees of $61,000 and BOLI income of $287,000 for the three months ending March 31, 2026. Other income for the three months ending March 31, 2025, was impacted by a non-recurring $778,000 gain recorded on the sale of a Company owned property. BOLI income increased as result of the Company purchasing $13.4 million in new BOLI policies to insure additional employees as well as an increase in the rate of return on the policies.

Non-interest expense increased by $1.2 million or 15.7% to $9.1 million for the three months ending March 31, 2026, compared to $7.9 million for the three months ending March 31, 2025. Salaries and employee benefits increased by $394,000 or 8.3% to $5.1 million for the three months ending March 31, 2026, as compared to $4.7 million for the three months ending March 31, 2025. The increase in salaries and employee benefits resulted primarily due to a slight increase in headcount as a result of the growth of the Bank, annual merit increases, employee incentives and increased health insurance costs year over year. Occupancy and equipment expense increased by $195,000 or 16.9% to $1.4 million for the three months ending March 31, 2026, as compared to $1.2 million for the three months ending March 31, 2025, primarily due to increase in facilities maintenance contracts, lease expense, and other real estate owned expenses. Advertising and marketing expense increased $53,000 or 96.4% to $108,000 for the three months ending March 31, 2026, as compared to $55,000 for the same period in the prior year, primarily due to an increase in advertising campaigns and product promotions. Professional fees increased $103,000 or 20.1% to $615,000 for the three months ending March 31, 2026, as compared to $512,000 for the three months ending March 31, 2025, primarily due to increase in director fees, partially offset by a decrease in audit and legal fees. FDIC insurance assessment increased $64,000 or 29.0% to $285,000, for the three months ending March 31, 2026, from $221,000 for the three months ending March 31, 2025, as a result of the growth in total assets. Other operating expenses increased by $417,000 or 50.4% to $1.2 million for the three months ending March 31, 2026, from $828,000 for the three months ending March 31, 2025, primarily due to a $200,000 accrual to miscellaneous expenses related to 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 our organic growth initiative.

The income tax provision increased by $739,000 or 183.4% to $1.1 million for the three months ending March 31, 2026, from $403,000 for the three months ending March 31, 2025. The increase in income tax provision resulted primarily from an increase in the pre-tax income year over year of $2.5 million or 121.3% to $4.6 million for the three months ending March 31, 2026, from $2.1 million for the three months ending March 31, 2025. The effective tax rate for the quarter ending March 31, 2026, was 24.8% compared to 19.4% for the quarter ending March 31, 2025. The effective tax rate for the quarter ended March 31, 2025, was impacted by a reduction in New York state tax apportionment.

Asset Quality

The allowance for credit losses decreased by $478,000 or 3.0% to $15.5 million or 1.06% of total loans at March 31, 2026, as compared to $14.8 million or 1.18% of total loans at March 31, 2025. During the three months ending March 31, 2026, the Company reversed $478,000 in provision for credit losses and had no charge-offs or recoveries. Based on the results of the CECL model and management’s evaluation of both the quantitative and qualitative factors and a comprehensive loss history review, changes in the allowance for credit losses for the three months ended March 31, 2026, were adjusted accordingly.

The Bank had non-accrual loans totaling $11.4 million or 0.78% of total loans at March 31, 2026, as compared to $10.5 million or 0.74% of total loans at December 31, 2025. Non-accrual loans increased by $900,000 from December 31, 2025, primarily as a result of one commercial real estate loan which was reclassed to non-accrual status during the first quarter of 2026. The allowance for credit losses was 136.2% of non-accrual loans at March 31, 2026, compared to 152.4%, at December 31, 2025.

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.