First Commerce announces first quarter earnings.

NEW ORLEANS--(BUSINESS WIRE)--April 11, 1996--First Commerce Corporation (NASDAQ-FCOM) announced today that its net income for the first quarter was $31.5 million, or $.75 per share. Fully diluted earnings per share were $.15 in the fourth quarter of 1995 and $.36 for the first quarter of 1995.

Several items led to the improved results in the first quarter:

--The net interest margin was 4.71% in the first quarter, 17

basis points higher than in the fourth quarter. The yield

on earning assets increased while the cost of funds declined

from the prior quarter. The net interest margin was 4.78% in

1995's first quarter on a restated basis, originally reported

as 4.68%.

--Net interest income (FTE) was $90.4 million in the first

quarter, 3% higher than in the fourth quarter and up 5% from

1995's first quarter. The improvement from the previous quarter

was principally related to 5% loan growth, resulting in an

improved mix of earning assets, a reduction in short-term

borrowings and lower rates on interest-bearing liabilities.

The increase from last year's first quarter was also the

result of 23% loan growth.

--Noninterest income was $40.8 million for the quarter.

Excluding securities transactions and nonrecurring items,

noninterest income was up 3% from the fourth quarter and 13%

from the first quarter of 1995. The current quarter includes

a $1.1 million gain from the divestiture of a branch.

--Excluding nonrecurring items, the efficiency ratio was 61.4%

for the first quarter, 62.1% in the fourth quarter and 63.9%

for the first quarter of last year. Revenue growth and

moderate expense growth contributed to the improved efficiency

ratio. Revenues increased 3% from the fourth quarter and were

7% higher than in 1995's first quarter. Excluding nonrecurring

items in the fourth and first quarters of 1995, operating

expenses of $79.8 million were only 1% higher than in the

fourth quarter and up 3% from 1995's first quarter.

--The fourth quarter of 1995 included several nonrecurring items

which significantly reduced that period's net income. These

items included merger charges of $15.4 million, a $10 million

provision for loan losses related to the closure of the

temporary casino in New Orleans, and a $2.8 million charge

related to the closure of 13 branches.

--Excluding nonrecurring items and securities transactions, fully

diluted earnings per share were $.72 in the first quarter,

$.45 for 1995's fourth quarter and $.63 for the first quarter

of 1995.

Average loans were $5.2 billion in the first quarter, 5% higher than in the previous quarter and 23% higher than 1995's first quarter. Growth was in most categories with the most significant increases in credit card, indirect automobile and residential mortgage loans. Commercial loans declined during the quarter due to payoffs late in the quarter. At March 31, 1996, loans were $5.1 billion, a decline of less than 1% from year-end.

The provision for loan losses was $3.8 million in the first quarter, compared to $19.8 million for the fourth quarter and $3.2 million for last year's first quarter. The slight decline in commercial loans during the first quarter and improvements in credit quality of commercial loans favorably impacted the provision level for the first quarter.

The allowance for loan losses was 1.46% of loans at March 31, 1996, and 134% of nonperforming assets. Annualized net charge-offs were .40% of loans in the first quarter, down from 1.51% in the fourth quarter. During the first quarter, credit card net charge-offs were 2.68%, consumer loans were .57% and commercial loans were a net recovery. Nonperforming assets declined to $55.5 million, or 1.09% of loans, at the end of the first quarter from $59.8 million as of December 31, 1995.

Securities transactions resulted in gains of $1.2 million in the first quarter, compared to gains of $1.9 million in the fourth quarter and losses of $13.3 million in 1995's first quarter. At March 31, 1996, the adjustment for securities available for sale reflected a net unrealized gain of $18.3 million, after tax.

Total assets were $8.2 billion at March 31, 1996, and deposits were $6.9 billion. The leverage ratio was 8.33% at the end of the quarter.

First Commerce Corporation is a New Orleans-based bank holding company operating six Louisiana banks in Alexandria, Baton Rouge, Lafayette, Lake Charles, Monroe and New Orleans. -0-

            FIRST COMMERCE CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS                       First           First
(in thousands except per share data)      Quarter         Quarter
                                        -----------     -----------
                                           1996            1995
                                        -----------     -----------

INCOME DATA
  Net interest income                  $    88,925     $    84,260
  Net interest income
    (tax equivalent)                   $    90,384     $    85,786
  Provision for loan losses            $     3,825     $     3,162
  Other income (exclusive of
    securities transactions)           $    40,800     $    34,995
  Securities transactions              $     1,207     $   (13,322)
  Operating expense                    $    79,786     $    80,902
  Operating income                     $    30,748     $    23,151
  Net income                           $    31,533     $    14,492

AVERAGE BALANCE SHEET DATA
  Loans and leases,
    net of unearned income             $ 5,170,534     $ 4,187,960
  Securities                           $ 2,457,394     $ 2,888,217
  Earning assets                       $ 7,699,873     $ 7,233,936
  Total assets                         $ 8,442,698     $ 7,878,868
  Deposits                             $ 6,889,954     $ 6,641,827
  Long-term debt                       $    87,028     $    90,015
  Stockholders' equity                 $   740,091     $   625,624

PER COMMON SHARE DATA
  Net income - fully diluted           $       .75     $       .36
  Net income - primary                 $       .79     $       .36
  Operating income - fully diluted     $       .74     $       .57
  Operating income - primary           $       .77     $       .58
  Book value (end of period)           $     18.02     $     15.77
  Cash dividends                       $       .35     $       .30

RATIOS
  Net income as a percent of
    Average assets                            1.50%            .75%
    Average total equity                     17.14%           9.39%
    Average common equity                    17.82%           9.61%

  Operating income as a percent of
    Average assets                            1.46%           1.19%
    Average total equity                     16.71%          15.01%
    Average common equity                    17.37%          15.82%

  Net interest income (tax
    equivalent) as a percent of
    average earning assets                    4.71%           4.78%

  Operating expense less other
    income (excluding securities
    transactions) as a percent of
    average earning assets                    2.04%           2.57%

  Operating expense as a percent of
    total revenue (tax equivalent and
    excluding securities transactions)       60.82%          66.98%

  Allowance for loan losses as a
    percent of net loans and leases,
    at end of period                          1.46%           1.69%

  Nonperforming assets as a percent
    of net loans and leases plus
    foreclosed assets, at
    end of period                             1.09%            .52%

  Stockholders' equity as a percent of
    total assets, at end of period            8.94%           8.12%

  Leverage ratio at end of period             8.33%           8.21%

CONTACT: First Commerce Corporation, New Orleans

Michael A. Flick, 504/561-1492 or

Holly E. Hobson, 504/623-2917