“First Commerce Bancorp, Inc. reported a significant uptick in profitability for the fourth quarter and full year of 2025, with net income reaching $3.2 million and $8.3 million respectively, driven by strong loan and deposit growth, improved net interest margins, and strategic funding initiatives. Earnings per share climbed to $0.16 for Q4 and $0.41 for the year, reflecting enhanced operational efficiency and favorable interest rate dynamics.”
In a display of resilient financial performance, First Commerce Bancorp, Inc., the parent entity of First Commerce Bank, showcased substantial improvements across key metrics in its latest earnings release. The company, operating primarily in New Jersey with a focus on commercial and community banking, benefited from deliberate balance sheet strategies that amplified asset growth and optimized funding costs in a shifting rate environment.
Net income for the fourth quarter of 2025 surged to $3.2 million, marking a nearly threefold increase from the $1.1 million recorded in the same period of 2024. accessnewswire.com For the full year, net income more than doubled to $8.3 million compared to $4.5 million in 2024, underscoring the effectiveness of expansion efforts amid economic headwinds. accessnewswire.com This translated into basic earnings per common share of $0.16 for Q4 2025, up from $0.06 a year earlier, and $0.41 for the full year versus $0.21 in 2024. accessnewswire.com
The bank’s profitability was bolstered by a robust expansion in interest-earning assets, which fueled a 28.7% rise in total interest and dividend income to $25.3 million in Q4 2025 from $19.7 million in Q4 2024. accessnewswire.com Annually, this income category grew by 16.5% to $91.8 million. accessnewswire.com Loan interest income, a core driver, advanced 26.6% to $22.1 million in the quarter, supported by a 12.3% increase in average loan balances to $1.40 billion and a 70 basis point yield improvement to 6.27%. accessnewswire.com Investment securities also contributed meaningfully, with income jumping 155.4% to $2.3 million, thanks to a 95.6% expansion in average balances to $170.2 million and a 127 basis point yield boost to 5.43%. accessnewswire.com
On the expense side, total interest costs rose modestly by 8.2% to $12.7 million in Q4, reflecting higher borrowing volumes but offset by a 34 basis point drop in the average cost of interest-bearing liabilities to 3.74%. accessnewswire.com This dynamic led to a remarkable 58.9% increase in net interest income to $12.7 million for the quarter. accessnewswire.com The net interest margin expanded impressively by 83 basis points year-over-year to 3.03%, and by 42 basis points sequentially from Q3 2025’s 2.61%, highlighting the bank’s adept management of rate-sensitive assets and liabilities in response to the Federal Reserve’s rate cuts in the latter half of the year. accessnewswire.com
Asset Quality and Provisioning
Asset quality remained stable, with the allowance for credit losses edging up 8.6% to $16.0 million, representing 1.13% of total loans at year-end, down slightly from 1.19% in 2024 due to portfolio growth. accessnewswire.com The company booked a $348,000 provision for credit losses in Q4 2025, contrasting with a $55,000 reversal in the prior year’s quarter, as management adopted a conservative stance amid potential economic uncertainties. accessnewswire.com This included $292,000 for loans, $166,000 for unfunded commitments, and a $110,000 reversal for held-to-maturity securities. accessnewswire.com Non-accrual loans saw reductions, further strengthening the buffer against possible downturns.
Balance Sheet Expansion and Liquidity
The bank’s balance sheet demonstrated vigorous growth, with total assets climbing 15.7% to $1.79 billion by December 31, 2025, from $1.55 billion a year prior. accessnewswire.com This was propelled by targeted increases in high-yielding assets. Total loans receivable net of allowances rose 14.6% to $1.40 billion, with commercial mortgages and multifamily loans leading the charge, up $182.6 million and $43.1 million respectively, while construction, residential, and home equity segments contracted by $34.4 million, $9.2 million, and $2.8 million. accessnewswire.com
Investment securities ballooned 46.5% to $164.3 million, driven by $91.4 million in purchases, though tempered by $17.8 million in redemptions/maturities and $21.6 million in mortgage-backed security amortizations. accessnewswire.com Cash and cash equivalents ticked up 3.0% to $136.4 million, ensuring ample liquidity in line with regulatory expectations. accessnewswire.com
Funding sources supported this expansion effectively. Deposits grew 10.3% to $1.30 billion, with time deposits up $65.0 million, savings by $36.7 million, non-interest-bearing demand by $22.5 million, and money markets by $1.3 million, partially offset by declines in brokered ($16.9 million) and NOW accounts ($0.6 million). accessnewswire.com Borrowings, mainly from Federal Home Loan Bank advances, increased 44.3% to $252.5 million to bridge asset growth. accessnewswire.com Additionally, a Q4 subordinated note offering raised $38.9 million net of costs, earmarked for general corporate purposes and enhancing capital flexibility. accessnewswire.com
Profitability Ratios and Shareholder Returns
Return on average total assets for Q4 annualized improved by 42 basis points to 0.73% from 0.31% in 2024, while return on average shareholders’ equity leaped 459 basis points to 7.24% from 2.65%. accessnewswire.com Book value per common share advanced to $8.79, a $0.40 gain from $8.39 at the end of 2024. accessnewswire.com
Stockholders’ equity rose 1.8% to $175.4 million, incorporating $8.3 million in retained earnings and $1.6 million in additional paid-in capital, though offset by $6.6 million in share repurchases. accessnewswire.com The company bought back 1,051,000 shares at an average price of $6.23, signaling confidence in intrinsic value and a commitment to shareholder enhancement. accessnewswire.com
Key Financial Metrics Table
Strategic Initiatives and Market Context
| Metric | Q42025 | Q42024 | %Change | FullYear2025 | FullYear2024 | %Change |
|---|---|---|---|---|---|---|
| NetIncome($M) | 3.2 | 1.1 | 190.9% | 8.3 | 4.5 | 84.4% |
| EPS(Basic) | 0.16 | 0.06 | 166.7% | 0.41 | 0.21 | 95.2% |
| NetInterestIncome($M) | 12.7 | 8.0 | 58.8% | N/A | N/A | N/A |
| InterestIncome($M) | 25.3 | 19.7 | 28.4% | 91.8 | 78.8 | 16.5% |
| InterestExpense($M) | 12.7 | 11.7 | 8.5% | 49.6 | 45.5 | 9.0% |
| NetInterestMargin(%) | 3.03 | 2.20 | +83bps | N/A | N/A | N/A |
| ROA(Annualized%) | 0.73 | 0.31 | +42bps | N/A | N/A | N/A |
| ROE(Annualized%) | 7.24 | 2.65 | +459bps | N/A | N/A | N/A |
| TotalAssets($B) | 1.79 | 1.55 | 15.5% | N/A | N/A | N/A |
| TotalLoans($B) | 1.42 | 1.24 | 14.5% | N/A | N/A | N/A |
| TotalDeposits($B) | 1.30 | 1.17 | 10.3% | N/A | N/A | N/A |
| BookValueperShare | 8.79 | 8.39 | 4.8% | N/A | N/A | N/A |
The bank’s growth trajectory aligns with broader trends in regional banking, where institutions like First Commerce are leveraging lower rates to reprice liabilities downward while sustaining asset yields. The Federal Reserve’s multiple rate reductions in late 2025 provided a tailwind, enabling more competitive deposit pricing and reducing borrowing costs, which in turn amplified margins.
Management’s focus on commercial and multifamily lending segments paid dividends, as these areas exhibited strong demand in a recovering real estate market. The subordinated debt issuance not only fortified the capital base but also positioned the bank for potential acquisitions or further organic expansion. Coupled with the tender offer announcement, these moves illustrate a proactive approach to capital allocation, prioritizing long-term value creation over short-term gains.
In terms of risk management, the uptick in provisioning reflects prudence in an environment where inflation pressures have eased but geopolitical uncertainties persist. The bank’s liquidity position, with cash equivalents at $136.4 million and a diversified funding mix, offers resilience against potential deposit outflows or credit stresses.
Overall, these results position First Commerce Bancorp as a standout performer among OTC-traded community banks, with metrics that outpace many peers in asset growth and margin recovery.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendations, or endorsements. All data and opinions are based on publicly available information and should not be relied upon for making financial decisions. Consult a qualified professional for personalized guidance.