First Commerce Announces Fourth Quarter Earnings.NEW ORLEANS--(BUSINESS WIRE)--Jan. 15, 1998--First Commerce Corp.(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FCOM FCOM Facilities Capital Cost of Money FCOM Flight Crew Operating Manual FCOM Francesco WarCry Oscuro Martigen (The Elder Scrolls: Oblivion IV mod) ) announced today that its net income for the fourth quarter was $32.0 million, or $.79 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $.77 in the third quarter of 1997 and $.72 for the fourth quarter of 1996. The following are key items from the fourth quarter: - Net interest income (FTE FTE Full-Time Equivalent FTE Full-Time Employee FTE Full-Time Equivalency FTE Full Time Employment FTE Foundation for Teaching Economics FTE Full Time Enrollment FTE For the Enterprise (SQL) FTE Fund for Theological Education ) was $96.4 million. The decrease from both 1997's third quarter and 1996's fourth quarter was caused by the shift of net interest income to noninterest income related to the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of credit card loans in 1997's third quarter. Excluding the effect of this shift, net interest income rose 1% from the prior quarter and 2% from 1996's fourth quarter. Loan growth was again the most significant cause of the net interest income improvement. However, higher funding costs partially offset the benefit of loan growth between the fourth quarters of 1996 and 1997. The net interest margin was 4.46% in the fourth quarter, compared to 4.51% in the third quarter and 4.76% in last year's fourth quarter. Excluding the effect of the securitization, the net interest margin would have been 4.61% in 1997's fourth quarter and 4.59% in the third quarter. - The provision for loan losses was $8.6 million in the fourth quarter, down from $15.8 million in the third quarter and $14.2 million in 1996's fourth quarter. Excluding the impact of securitization, the provision would have been $12.6 million in 1997's fourth quarter and $18.6 million in the third quarter. The decline in the provision was related to improved commercial loan quality. - Noninterest income was $50.3 million in the fourth quarter. Excluding all securities transactions and the securitization effect, noninterest income was $49.3 million in the fourth quarter, up 5% (20% annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. ) from the third quarter and 8% from 1996's fourth quarter. Credit card fees were the principal factor in the growth of noninterest income from both prior periods. Venture capital securities transactions resulted in gains of $11,000 in the fourth quarter versus $3.5 million in the third quarter. - Operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. was $88.8 million for the fourth quarter, compared to $84.3 million for the third quarter and $85.3 million for 1996's fourth quarter. The 5% increase from the third quarter to the fourth quarter was principally related to the planned merger with BANC [French, Bench.] The location where a court customarily or permanently sits. When a court is sitting in banc (or en banc), it means that a meeting or session of all the judges of a court is taking place. ONE CORPORATION. The largest increases were in stock-based incentive pay (caused by the quarter's 20% stock price appreciation), professional fees, and advertising expenses. Operating expense rose 4% from the fourth quarter of 1996 to the last quarter of 1997. Total managed loans rose to $6.7 billion as of Dec. 31, 1997, 8% higher than one year ago and 2% higher than at Sept. 30, 1997. Average managed loans were $6.4 billion for 1997, an increase of 17% from 1996. The most significant increases in average managed loans from 1996 to 1997 were in credit card (up 26%), commercial real estate (23% higher), and commercial loans (up 21%). Average consumer loans grew only 9% in 1997 due to First Commerce's pullback Pullback A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum. from intensely price-competitive indirect auto lending. Total deposits were $7.8 billion at Dec. 31, 1997, 7% higher than one year earlier. Total assets were $9.5 billion as of Dec. 31, 1997. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. were $39.6 million at Dec. 31, 1997, slightly down from Sept. 30. Net charge-offs were $9.7 million in the fourth quarter, or .61% of average total loans, compared to $10.4 million in the third quarter, and $11.9 million in 1996's fourth quarter. Net charge-offs of managed credit card loans were $10.7 million in 1997's fourth quarter, $8.6 million in the third quarter and $7.3 million in 1996's fourth quarter. Higher credit card charge-offs this quarter were related to the number of accounts that are reaching the age at which charge-offs peak, which is usually an account that has been open for 18 to 36 months. As a percent of total managed loans, net charge-offs were .84% in the fourth quarter. The allowance for loan losses was 1.29% of total loans at Dec. 31, 1997. First Commerce Corporation is a New Orleans-based bank holding company operating six Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. banks in Alexandria Alexandria, city, EgyptAlexandria, Arabic Al Iskandariyah, city (1996 pop. 3,328,196), N Egypt, on the Mediterranean Sea. It is at the western extremity of the Nile River delta, situated on a narrow isthmus between the sea and Lake Mareotis (Maryut). , Baton Rouge Baton Rouge (băt`ən r zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. ,
Lafayette Lafayette (lä'fēĕt`, lăf'ēĕt`).1 City (1990 pop. 23,501), Contra Costa co., NW Calif., a residential suburb in the San Francisco–Oakland area; settled 1848, inc. 1968. , Lake Charles Lake Charles, city (1990 pop. 70,580), seat of Calcasieu parish, SW La.; inc. 1867. It is located on Lake Charles at the mouth of the Calcasieu River in a rice, timber, oil, and natural gas region. , Monroe Monroe. 1 Industrial city (1990 pop. 54,909), seat of Ouachita parish, SE La., on the Ouachita River; founded c.1785, inc. as a city 1900. The center of the great Monroe Natural Gas Field (discovered 1915), it has important chemical plants, as well as and New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded . On Oct. 20, 1997, First Commerce entered into a merger agreement with BANC ONE CORPORATION. The merger is expected to be completed in the second quarter of 1998 after approvals by shareholders and regulators are received. -0-
FIRST COMMERCE CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
Fourth Fourth
Quarter Quarter
(dollars in thousands, except
per share data) 1997 1996
INCOME DATA
Net interest income $ 94,573 $ 96,232
Net interest income
(tax equivalent) $ 96,440 $ 97,776
Provision for loan losses $ 8,565 $ 14,168
Other income (exclusive of
investment
securities
transactions) $ 50,267 $ 45,498
Investment securities
transactions $ 17 $ 407
Operating expense $ 88,785 $ 85,304
Operating income $ 32,025 $ 28,442
Net income $ 32,036 $ 28,707
AVERAGE BALANCE SHEET
DATA
Loans - reported $ 6,342,332 $ 5,982,771
Loans - managed (a) $ 6,642,332 $ 5,982,771
Securities $ 2,208,532 $ 2,157,419
Earning assets $ 8,603,204 $ 8,188,195
Total assets $ 9,294,972 $ 8,843,783
Deposits $ 7,492,684 $ 6,950,851
Long-term debt $ 390,797 $ 82,460
Stockholders' equity $ 798,845 $ 710,131
PER COMMON SHARE DATA
Net income - diluted $ 0.79 $ 0.72
Net income - basic $ 0.83 $ 0.77
Operating income - diluted $ 0.79 $ 0.71
Operating income - basic $ 0.83 $ 0.76
Book value (end of period) $ 21.03 $ 18.66
Closing stock price $ 67.25 $ 38.88
Cash dividends $ 0.40 $ 0.40
RATIOS
Net income as a percent of:
Average assets 1.37% 1.29%
Average total equity 15.91% 16.08%
Average common equity 15.91% 16.81%
Net interest income (tax
equivalent) as a percent of
average earning assets 4.46% 4.76%
Average loans as a percent of
average deposits 84.65% 86.07%
Operating expense less other
income (excluding investment
securities transactions)
as a percent of average
earning assets 1.78% 1.93%
Operating expense as a percent
of total revenue (tax equivalent
and excluding investment
securities transactions) 60.52% 59.54%
Other income (excluding
investment securities
transactions) as a percent
of total revenue 34.26% 31.76%
Allowance for loan losses
as a percent of loans,
at end of period 1.29% 1.31%
Nonperforming assets as a
percent of loans plus
foreclosed assets, at end
of period 0.61% 0.51%
Stockholders' equity as a
percent of total assets,
at end of period 8.64% 7.87%
Leverage ratio at end
of period 8.35% 7.76%
(a) Managed portfolio represents the owned loan portfolio plus the
securitized credit card receivables
Twelve Months Ended
December 31
(dollars in thousands, except
per share data) 1997 1996
INCOME DATA
Net interest income $ 381,980 $ 369,742
Net interest income
(tax equivalent) $ 389,234 $ 375,500
Provision for loan losses $ 52,371 $ 37,983
Other income (exclusive of
investment
securities
transactions) $ 194,511 $ 171,177
Investment securities
transactions $ 1,002 $ 1,360
Operating expense $ 338,129 $ 326,848
Operating income $ 124,962 $ 117,554
Net income $ 125,613 $ 118,438
AVERAGE BALANCE SHEET
DATA
Loans - reported $ 6,318,995 $ 5,512,428
Loans - managed (a) $ 6,439,817 $ 5,512,428
Securities $ 2,119,454 $ 2,253,065
Earning assets $ 8,497,804 $ 7,831,517
Total assets $ 9,183,476 $ 8,525,109
Deposits $ 7,449,963 $ 6,887,675
Long-term debt $ 341,117 $ 85,338
Stockholders' equity $ 758,136 $ 724,674
PER COMMON SHARE DATA
Net income - diluted $ 3.10 $ 2.89
Net income - basic $ 3.24 $ 3.05
Operating income - diluted $ 3.08 $ 2.87
Operating income - basic $ 3.22 $ 3.03
Book value (end of period) $ 21.03 $ 18.66
Closing stock price $ 67.25 $ 38.88
Cash dividends $ 1.60 $ 1.45
RATIOS
Net income as a percent of:
Average assets 1.37% 1.39%
Average total equity 16.57% 16.34%
Average common equity 16.57% 16.95%
Net interest income (tax
equivalent) as a percent of
average earning assets 4.58% 4.79%
Average loans as a percent of
average deposits 84.82% 80.03%
Operating expense less other
income (excluding investment
securities transactions)
as a percent of average
earning assets 1.69% 1.99%
Operating expense as a percent
of total revenue (tax equivalent
and excluding investment
securities transactions) 57.92% 59.79%
Other income (excluding
investment securities
transactions) as a percent
of total revenue 33.32% 31.31%
Allowance for loan losses
as a percent of loans,
at end of period 1.29% 1.31%
Nonperforming assets as a
percent of loans plus
foreclosed assets, at end
of period 0.61% 0.51%
Stockholders' equity as a
percent of total assets,
at end of period 8.64% 7.87%
Leverage ratio at end
of period 8.35% 7.76%
(a) Managed portfolio represents the owned loan portfolio plus the
securitized credit card receivables
CONTACT: First Commerce Corp., New Orleans Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. A. Flick, 504/623-1492 or Holly holly, common name for members of the Aquifoliaceae, a family of widely distributed trees and shrubs, most numerous in Central and South America. The evergreen English holly (Ilex aquifolium E. Hobson Hobson may refer to: People with the surname Hobson:
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