First Commerce Reports Lower 3Q

0

First Commerce Bancorp on Tuesday said third quarter earnings dropped 68 percent because of a large loan loss provision.

Net income for the quarter ended Sept. 30 was $274,000, compared to $865,000 for the same period a year ago. The company did not provide a per-share earnings figure. Assets rose 3 percent to almost $300 million. Deposits also rose 3 percent to $260 million and net loans fell 3 percent to almost $240 million.

Chief Executive Jack Feldman said the $615,000 loan loss provision was necessary not only because of softness in construction lending, but also due to the bank’s rejuvenated loan growth late in the quarter.

“First Commerce Bank is well-positioned to take advantage of future opportunities in these challenging economic times,” Feldman said in a statement. “Our bank has never engaged in subprime lending. We have no mortgage-backed securities in our investment portfolio, nor equity positions in Fannie Mae or Freddie Mac stock … We feel confident in our ability to successfully manage through this period.”

First Commerce shares were unchanged at $3 in morning trading on the over-the-counter Bulletin Board.

No posts to display