First Commerce Bancorp, Inc. Reports Second Quarter and Year-to-Date 2026 Results and Declares a Cash Dividend

LAKEWOOD, NJ / ACCESS Newswire / July 29, 2026 / First Commerce Bancorp, Inc. (the "Company"), (OTCID:CMRB), the holding company for First Commerce Bank (the "Bank"), today reported net income of $3.7 million and $7.2 million for the three- and six-months ending June 30, 2026, as compared to $1.3 million and $3.0 million for the three- and six-months ending June 30, 2025, respectively. Basic earnings per common share for the three- and six-months ending June 30, 2026, were $0.22 and $0.40, respectively, compared to $0.07 and $0.15 for the three- and six-months ending June 30, 2025, respectively. The Board of Directors has unanimously declared a cash dividend of $0.05 per common share for shareholders of record on August 10, 2026, with a payable date of August 24, 2026. Per share results for the 2026 periods also reflect the effect of a reduced weighted-average share count following the Company's repurchase of 3.0 million shares of common stock in its 2026 tender offer.

President & CEO Donald Mindiak commented, "The systematic improvement in operating results over the last several quarters is reflective of the successful execution of the balance sheet growth initiative started in 2025. Prudently underwritten organic loan growth, coupled with complimentary investment security purchases and funded through a combination of competitively priced retail and wholesale funding sources, has produced quarter-over-quarter and year-over-year material improvement in our profitability metrics. We are encouraged by the year-over-year improvement in our asset quality metrics and look forward to continuing to build on that momentum. Since market interest rates appear to be in a short-term holding pattern as the new Federal Reserve Chairman continues to navigate his position given the geopolitical unrest that has permeated the global economy, we remained focused on those aspects of our business that we can control: disciplined operating expense management, prudent underwriting and quality credit monitoring, franchise value enhancement and a competitive return on investment for our shareholders."

Continuing, he stated, "This fall, we will be engaged in a conversion to a more technologically advanced and user-friendly core processing system to facilitate a more fulfilling customer experience. We will endeavor to make this transition seamless for our clients to enhance the service levels we pride ourselves on and continue to look forward to the opportunities and challenges that lie ahead."

Financial Highlights

• Total interest and dividend income increased by $5.4 million or 24.6% for the second quarter of 2026 compared to the second quarter of 2025 as a result of the growth in average interest-earning assets year over year, and an increase in the average yield of interest earning assets.

• Total interest expense increased by $1.5 million or 12.4% for the second quarter of 2026 compared to the second quarter of 2025 as a result of the growth in borrowings (primarily Federal Home Loan Bank advances) used primarily for loan growth and the issuance of subordinated notes.

• Total loans increased by $142.7 million or 10.1% to $1.56 billion at June 30, 2026, compared to $1.42 billion at December 31, 2025.

• Total deposits increased by $128.8 million or 9.9% to $1.42 billion at June 30, 2026, compared to $1.30 billion at December 31, 2025.

• Quarter-to-date (annualized) return on average total assets increased by forty-five basis points to 0.78% at June 30, 2026, compared to 0.33% at June 30, 2025.

• Quarter-to-date (annualized) return on average shareholders' equity increased by 630 basis points to 9.40% at June 30, 2026, compared to 3.10% at June 30, 2025.

• Book value per common share increased by $0.87 to $9.38 at June 30, 2026, compared to $8.51 at June 30, 2025.

• Net interest margin increased fifty basis points to 2.97% as of June 30, 2026, from 2.47% at June 30, 2025.

• Efficiency ratio improved to 65.61% at June 30, 2026, from 76.33% at June 30, 2025.

• Non-performing loans to total loans improved to 0.72% at June 30, 2026, from 1.30% at June 30, 2025.

• Total stockholders' equity decreased 9.2% to $159.2 million and the Tier 1 leverage ratio declined to 8.40% at June 30, 2026, from 10.22% at December 31, 2025, primarily reflecting the $21.0 million repurchase of common stock.

Balance Sheet Review

Total assets increased by $170.7 million or 9.5% to $1.96 billion at June 30, 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, partially offset by a decrease in total cash and cash equivalents during the six months ending June 30, 2026.

Total cash and cash equivalents decreased by $34.2 million or 25.1% to $102.2 million at June 30, 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 $38.3 million or 23.3% to $202.6 million at June 30, 2026, from $164.3 million at December 31, 2025. The increase in investment securities resulted primarily from $77.5 million in purchases of investment securities, partially offset by $10.5 million in redemptions and maturities and $28.7 million of amortization of mortgage-backed securities.

Total loans receivable, net of allowance for credit losses increased by $143.0 million or 10.2% to $1.55 billion at June 30, 2026, from $1.40 billion at December 31, 2025. Commercial mortgage loans increased $74.1 million, construction loans increased $40.0 million, 1-4 family mortgage loans increased $23.8 million, and multi-family mortgage loans increased $6.8 million, partially offset by a decrease in commercial loans of $1.4 million. The allowance for credit losses decreased by $322,000 or 2.0% to $15.7 million or 1.01% of total loans at June 30, 2026, as compared to $16.0 million or 1.13% of total loans at December 31, 2025.

Total deposits increased $128.8 million or 9.9% to $1.42 billion at June 30, 2026, from $1.30 billion at December 31, 2025. Brokered deposits increased $58.6 million, Money market deposits increased $42.0 million, interest-bearing demand deposits increased $32.7 million, non-interest-bearing demand deposits increased $24.3 million, and savings accounts increased $5.9 million, partially offset by a decrease of $34.6 million in certificates of deposit.

Borrowings, which are primarily Federal Home Loan Bank advances, increased $52.0 million or 20.6% to $304.5 million at June 30, 2026, from $252.5 million at December 31, 2025, which assisted in the facilitation of the loan and investment securities growth discussed previously.

Stockholders' equity decreased by $16.2 million or 9.2% to $159.2 million at June 30, 2026, from $175.4 million at December 31, 2025. The decrease in stockholders' equity was primarily due to an increase in treasury stock of $21.3 million and an increase in accumulated other comprehensive loss of $460,000, partially offset by an increase of $5.5 million in retained earnings. During the six months ending June 30, 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 $3.8 million or 39.9% to $13.5 million for the three months ending June 30, 2026, from $9.6 million for the three months ending June 30, 2025. The increase in net interest income was primarily due to an increase in total interest and dividend income of $5.4 million as a result of an increase in the balance of average interest earning assets, partially offset by an increase in total interest expense of $1.5 million as a result of an increase in the balance of average interest-bearing liabilities.

Total interest and dividend income increased by $5.4 million or 24.6% to $27.1 million for the three months ending June 30, 2026, from $21.7 million for the three months ending June 30, 2025. Interest income on loans, including fees, increased $5.0 million or 27.2% to $23.4 million for the three months ending June 30, 2026, as compared to $18.4 million for the three months ending June 30, 2025. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $213.8 million or 16.5% to $1.51 billion for the three months ending June 30, 2026, as compared to $1.29 billion for the three months ending June 30, 2025. Average yield on loans receivable was 6.24% for the three months ending June 30, 2026, increasing fifty-three basis points over the comparative time period in 2025. Interest income on investment securities increased by $316,000 or 13.7% to $2.6 million for the three months ending June 30, 2026, as compared to $2.3 million for the same period in the prior year, as a result of purchasing and replacing payoffs and paydowns of investment securities with higher yielding investment securities. The average balance of the investment security portfolio increased by $29.7 million or 16.5% to $209.7 million for the three months ending June 30, 2026, as compared to $180.0 million for the same period in the prior year. The average yield on investment securities decreased by twelve basis points to 5.01% for the three months ending June 30, 2026, as compared to 5.13% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $22,000 or 2.7% to $806,000 for the three months ending June 30, 2026, as compared to $828,000 for the same period in the prior year. This decrease resulted primarily from a decline in average yield of seventy-two basis points to 3.47% for the three months ending June 30, 2026, as compared to 4.19% for the same period in the prior year. Dividend income on restricted stock increased by $45,000 or 24.2% to $231,000 for the three months ending June 30, 2026,as compared to $186,000 for the same period in the prior year as a result of an increase in average balance of restricted stock of $4.2 million or 39.0% to $15.1 million for the three months ending June 30, 2026, as compared to $10.9 million for the same period in the prior year despite a decrease in average yield of sixty-nine basis points to 6.13% for the three months ending June 30, 2026, as compared to 6.82% for the same period in the prior year.

Total interest expense increased by $1.5 million or 12.4% to $13.6 million for the three months ending June 30, 2026, from $12.1 million for the three months ending June 30, 2025. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $276.7 million or 22.1%, to $1.53 billion for the three months ending June 30, 2026, from $1.25 billion for the three months ending June 30, 2025. Despite the increase in average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased by thirty-one basis points to 3.56% for the three months ending June 30, 2026, as compared to 3.87% for the three months ending June 30, 2025. The increase in average balance of interest-bearing liabilities included a $144.4 million increase in average interest-bearing deposit liabilities, an $93.3 million increase in average wholesale borrowings, and a $39.0 million addition of subordinated notes for the three months ending June 30, 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 second quarter of 2026, the Company recorded a $66,000 provision for credit losses as compared to a $712,000 provision for credit losses for the same period in the prior year. The decrease in provision for credit losses for the second quarter of 2026 was primarily due to management's evaluation of both quantitative and qualitative factors which impacts the CECL model calculations despite an increase of $142.7 million in gross loans receivable. The Company recorded a $155,000 provision for credit losses on loans, a $71,000 reversal of provision for credit losses for unfunded commitments and an $18,000 reversal of provision for credit losses on corporate securities held-to-maturity. Management believes that the balance of the allowance for credit losses on loans and investment securities at June 30, 2026, and 2025 were appropriate.

Net interest margin increased by fifty basis points to 2.97% for the three months ending June 30, 2026, compared to 2.47% for the three months ending June 30, 2025. The increase in the net interest margin was primarily due to an increase in the average balance of total interest-earning assets of $261.6 million or 16.7% to $1.82 billion for the three months ending June 30, 2026, compared to $1.56 billion for the three months ending June 30, 2025, and an increase in average yield of interest-earning assets to 5.96% for the three months ending June 30, 2026 from 5.58% for the three months ending June 30, 2025, coupled with a decrease in the average cost of interest-bearing liabilities to 3.56% for the three months ending June 30, 2026 from 3.87% for the three months ending June 30, 2025, partially offset by an increase in the total interest-bearing liabilities of $276.7 million or 22.1% to $1.53 billion for the three months ending June 30, 2026, from $1.25 billion for the three months ending June 30, 2025.

Non-interest income increased by $559,000 or 95.4% to $1.1 million for the three months ending June 30, 2026, from $586,000 for the three months ending June 30, 2025. The increase in total non-interest income was primarily due to an increase of $322,000 in bank owned life insurance income, an increase of $181,000 in service charges and fees, and an increase of $56,000 in other income. BOLI income increased as a 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 $1.8 million or 23.0% to $9.6 million for the three months ending June 30, 2026, compared to $7.8 million for the three months ending June 30, 2025. Salaries and employee benefits increased by $457,000 or 9.8% to $5.1 million for the three months ending June 30, 2026, as compared to $4.7 million for the three months ending June 30, 2025. The increase in salaries and employee benefits was 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 $382,000 or 35.3% to $1.5 million for the three months ending June 30, 2026, as compared to $1.1 million for the three months ending June 30, 2025, primarily due to increase in facilities maintenance contracts, lease expense, and other real estate owned expenses. Advertising and marketing expense decreased $53,000 or 71.5% to $21,000 for the three months ending June 30, 2026, as compared to $74,000 for the same period in the prior year, primarily due to a reduction in advertising campaigns and product promotions. Professional fees increased $204,000 or 47.7% to $631,000 for the three months ending June 30, 2026, as compared to $427,000 for the three months ending June 30, 2025, primarily due to increase in director fees and consulting services, partially offset by a decrease in audit and legal fees. Data processing expense increased by $30,000 or 9.1% to $363,000 for the three months ending June 30, 2026, as compared to $333,000 for the same period in the prior year. Other operating expenses increased by $757,000 or 80.6% to $1.7 million for the three months ending June 30, 2026, from $940,000 for the three months ending June 30, 2025, primarily due to a $489,000 accrual to miscellaneous expenses related to various components of other operating expenses, a $114,000 charge to sponsorships, and a $78,000 charge to dues and subscriptions. Other operating expenses are primarily comprised of loan related expenses, digital banking expenses, 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 $878,000 or 228.1% to $1.3 million for the three months ending June 30, 2026, from $385,000 for the three months ending June 30, 2025. The increase in the income tax provision resulted primarily from an increase in the pre-tax income year over year of $3.3 million or 190.7% to $5.0 million for the three months ending June 30, 2026, from $1.7 million for the three months ending June 30, 2025. The effective tax rate for the quarter ended June 30, 2026, was 25.4% compared to 22.5% for the quarter ending June 30, 2025. The effective tax rate for the quarter ending June 30, 2025, was impacted by a reduction in New York state tax apportionment.

Six Months of Operations

Net interest income increased by $7.3 million or 40.0% to $25.6 million for the six months ending June 30, 2026, from $18.3 million for the six months ending June 30, 2025. The increase in net interest income was primarily due to an increase in total interest and dividend income of $9.8 million as a result of an increase in the balance of average interest earning assets, partially offset by an increase in total interest expense of $2.5 million as a result of an increase in the balance of average interest-bearing liabilities.

Total interest and dividend income increased by $9.8 million or 23.3% to $52.0 million for the six months ending June 30, 2026, from $42.2 million for the six months ending June 30, 2025. Interest income on loans, including fees, increased $9.0 million or 25.0% to $44.8 million for the six months ending June 30, 2026, as compared to $35.8 million for the six months ending June 30, 2025. The increase in interest income on loans, including fees, resulted primarily from an increase in the average balance of loans receivable of $199.8 million or 15.8% to $1.47 billion for the six months ending June 30, 2026, as compared to $1.27 billion for the six months ending June 30, 2025. Average yield on loans receivable was 6.15% for the six months ending June 30, 2026, increasing forty-six basis points over the comparative time period in 2025. Interest income on investment securities increased by $977,000 or 23.4% to $5.1 million for the six months ending June 30, 2026, as compared to $4.2 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 $28.1 million or 17.0% to $194.0 million for the six months ending June 30, 2026, as compared to $165.9 million for the same period in the prior year. The average yield on investment securities increased by twenty-eight basis points to 5.30% for the six months ending June 30, 2026, as compared to 5.02% for the same period in the prior year. Interest income on interest-bearing deposits with other banks decreased by $181,000 or 9.9% to $1.6 million for the six months ending June 30, 2026, as compared to $1.8 million for the same period in the prior year. This decrease resulted primarily from a decline in average yield of sixty-seven basis points to 3.48% for the six months ending June 30, 2026, as compared to 4.15% for the same period in the prior year. Dividend income on restricted stock increased $68,000 or 16.7% to $474,000 for the six months ending June 30, 2026, as compared to $406,000 for the same period in the prior year as a result of an increase in average balance of restricted stock of $3.7 million to $13.8 million for the six months ending June 30, 2026, as compared to $10.2 million for the same period in the prior year despite a decrease in average yield of 114 basis points to 6.85% for the six months ending June 30, 2026, as compared to 7.99% for the same period in the prior year.

Total interest expense increased by $2.5 million or 10.5% to $26.4 million for the six months ending June 30, 2026, from $23.9 million for the six months ending June 30, 2025. The increase in interest expense occurred primarily as a result of an increase in average balance of interest-bearing liabilities of $247.6 million or 20.2%, to $1.48 billion for the six months ending June 30, 2026, from $1.23 billion for the six months ending June 30, 2025. Despite the increase in average balance of interest-bearing liabilities, the average cost of interest-bearing liabilities decreased by thirty-two basis points to 3.61% for the six months ending June 30, 2026, as compared to 3.93% for the six months ending June 30, 2025. The increase in average balance of interest-bearing liabilities included a $128.0 million increase in average interest-bearing deposit liabilities, an $80.7 million increase in average wholesale borrowings, and a $39.0 million addition of subordinated notes for the six months ending June 30, 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 six months ending June 30, 2026, the Company recorded a $551,000 reversal of provision for credit losses as compared to a $795,000 provision for credit losses for the same period in the prior year. The decrease in provision for credit losses for the six months ending June 30, 2026, was primarily due to management's evaluation of both quantitative and qualitative factors which impacts the CECL model calculations despite an increase of $142.7 million in gross loans receivable. The Company recorded a $322,000 reversal of provision for credit losses on loans, a $197,000 reversal of provision for credit losses for unfunded commitments and a $32,000 reversal of provision for credit losses on corporate securities held-to-maturity. Management believes that the balance of the allowance for credit losses on loans and investment securities at June 30, 2026, and 2025 were appropriate.

Net interest margin increased by fifty-one basis points to 2.91% for the six months ending June 30, 2026, compared to 2.40% for the six months ending June 30, 2025. The increase in the net interest margin was primarily due to an increase in the average balance of total interest-earning assets of $238.0 million or 15.5% to $1.77 billion for the six months ending June 30, 2026, compared to $1.53 billion for the six months ending June 30, 2025, and an increase in average yield of interest-earning assets to 5.92% for the six months ending June 30, 2026 from 5.55% for the six months ending June 30, 2025, coupled with a decrease in the average cost of interest-bearing liabilities to 3.61% for the six months ending June 30, 2026 from 3.93% for the six months ending June 30, 2025, partially offset by an increase in the total interest-bearing liabilities of $247.6 million or 20.2% to $1.48 billion for the six months ending June 30, 2026, from $1.23 billion for the six months ending June 30, 2025.

Non-interest income increased by $154,000 or 7.8% to $2.1 million for the six months ending June 30, 2026, from $2.0 million for the six months ending June 30, 2025. The increase in total non-interest income was primarily due to increases in service charges and fees of $241,000 and BOLI income of $609,000, partially offset by a decrease of $696,000 in other income. Other income for the six months ending June 30, 2025, was impacted by a $778,000 gain recorded on the sale of a Company owned property. BOLI income increased as a 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 $3.0 million or 19.4% to $18.7 million for the six months ending June 30, 2026, compared to $15.7 million for the six months ending June 30, 2025. Salaries and employee benefits increased by $851,000 or 9.0% to $10.3 million for the six months ending June 30, 2026, as compared to $9.4 million for the six months ending June 30, 2025. The increase in salaries and employee benefits was primarily due to an 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 $577,000 or 25.8% to $2.8 million for the six months ending June 30, 2026, as compared to $2.2 million for the six months ending June 30, 2025, primarily due to increase in facilities maintenance contracts, lease expense, and other real estate owned expenses. Professional fees increased $311,000 or 33.2% to $1.2 million for the six months ending June 30, 2026, as compared to $936,000 for the six months ending June 30, 2025, primarily due to increase in director fees and consulting fees, partially offset by a decrease in audit and legal fees. Data processing expense increased $40,000 or 6.0% to $715,000 for the six months ending June 30, 2026, as compared to $675,000 for the same period in the prior year. FDIC insurance assessment increased $82,000 or 16.8% to $570,000, for the six months ending June 30, 2026, from $488,000 for the six months ending June 30, 2025, as a result of the growth in total assets. Other operating expenses increased by $1.2 million or 66.1% to $2.9 million for the six months ending June 30, 2026, from $1.8 million for the six months ending June 30, 2025, primarily due to $667,000 in accruals to miscellaneous expenses and 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 $1.6 million or 205.1% to $2.4 million for the six months ending June 30, 2026, from $788,000 for the six months ending June 30, 2025. The increase in the income tax provision resulted primarily from an increase in the pre-tax income year over year of $5.8 million or 152.6% to $9.6 million for the six months ending June 30, 2026, from $3.8 million for the six months ending June 30, 2025. The effective tax rate for the six months ending June 30, 2026, was 25.1% compared to 20.8% for the six months ending June 30, 2025. The effective tax rate for the quarter ending June 30, 2025, was impacted by a reduction in New York state tax apportionment.

Asset Quality

The allowance for credit losses decreased by $322,000 or 2.0% to $15.7 million or 1.01% of total loans at June 30, 2026, as compared to $16.0 million or 1.13% of total loans at December 31, 2025, and $15.2 million or 1.11% of total loans at June 30, 2025. During the six months ending June 30, 2026, the Company reversed $551,000 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 quantitative and qualitative factors during the six months ending June 30, 2026, changes in the allowance for credit losses were adjusted accordingly.

The Bank had non-accrual loans totaling $11.2 million or 0.72% of total loans at June 30, 2026, as compared to $10.5 million or 0.74% of total loans at December 31, 2025. Non-accrual loans increased by $695,000 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 140.0% of non-accrual loans at June 30, 2026, compared to 152.4%, at December 31, 2025.

Capital

Total stockholders' equity decreased by $16.2 million, or 9.2%, to $159.2 million at June 30, 2026, from $175.4 million at December 31, 2025, due primarily to the Company's completion of a tender offer to repurchase 3.0 million shares of its common stock at $7.00 per share for an aggregate cost of $21.0 million. Reflecting the repurchase and balance sheet growth, the Company's regulatory capital ratios declined from December 31, 2025, to June 30, 2026: total capital to risk-weighted assets decreased to 12.45% from 14.93%. Tier 1 capital and common equity Tier 1 capital to risk-weighted assets decreased to 9.25% from 11.32%, and Tier 1 leverage ratio decreased to 8.40% from 10.22%. The Company and Bank continue to satisfy all applicable regulatory capital requirements to be considered well-capitalized at June 30, 2026.

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.