First Commerce announces first quarter earnings.

NEW ORLEANS--(BUSINESS WIRE)--April 11, 1997--First Commerce Corporation (NASDAQ - FCOM) announced today that its net income for the first quarter was $29.0 million, or $.73 per fully diluted share. Fully diluted earnings per share were $.75 in 1996's first quarter and $.72 in the fourth quarter of last year. Excluding the effect of gains on securities transactions in the first and fourth quarters of 1996 and a gain on divestiture in last year's first quarter, fully diluted earnings per share were $.72 in 1996's first quarter and $.71 in the fourth quarter.

The key points for the first quarter's results included:

-- Revenues increased $11.1 million from the first quarter of 1996 to 1997's first quarter, a 9% improvement, while expense growth was less than 4%. This improvement excludes the effect of securities transactions and the gain on divestiture. However, the provision for loan losses increased $9.4 million, mostly offsetting the revenue growth. The provision increase was primarily related to the national trend, also experienced at First Commerce, of rising credit card losses.

-- Net interest income (FTE) was $97.6 million for the current quarter. The 8% increase from 1996's first quarter was principally caused by loan growth of 20%. Net interest income was unchanged from the previous quarter. The net interest margin was 4.70% in the first quarter, compared to 4.71% in 1996's first quarter and 4.76% in the fourth quarter.

-- Noninterest income was $43.5 million in the first quarter. Excluding the effect of a one-time gain in 1996's first quarter, noninterest income rose 10%, primarily due to higher credit card fees and trust revenues. Noninterest income was $45.5 million in the fourth quarter; seasonal influences generally lead to peak levels of credit card and deposit fees in the fourth quarter and lower levels in the first quarter.

-- The provision for loan losses was $13.2 million in the first quarter, compared to $3.8 million in last year's first quarter and $14.2 million in the fourth quarter. Credit card net charge-offs increased to 4.40% of average credit card loans, while consumer net charge-offs declined to .90% from last quarter; credit card and consumer charge-offs were both higher than in 1996's first quarter. Commercial loans had a net recovery again this quarter.

-- Operating expense was $82.8 million for the first quarter, 3.8% higher than in 1996's first quarter and 3% less than the fourth quarter. Stock-based incentive pay was the primary cause of both the increase from last year's first quarter and the decrease from 1996's fourth quarter. The efficiency ratio was 58.7% for the current quarter.

Total loans were $6.2 billion as of March 31, 1997, 22% higher than one year ago and unchanged from December 31. Average loans were 20% higher than in 1996's first quarter and up 4% from the fourth quarter. The average loan growth from 1996's first quarter was across-the-board, with significant increases in credit cards, commercial real estate and consumer loans. The growth from the fourth quarter was primarily related to credit card, commercial and commercial real estate loans.

Average deposits were $7.4 billion in the first quarter, 7% higher than 1996's first quarter and 6% higher than in the fourth quarter. Deposit growth was primarily related to time deposits $100,000 and over and public funds.

Nonperforming assets were $36.4 million at the end of the first quarter, or .59% of loans, compared to $31.9 million at December 31, or .51% of loans. First quarter net charge-offs were $13.1 million, or .85% of loans. Net charge-offs were $11.9 million in the fourth quarter and $5.1 million in last year's first quarter. Increased credit card charge-offs caused the increase from the prior quarter, while higher consumer loan and credit card charge-offs caused the increase from last year's first quarter.

Total assets were $9.3 billion at March 31, 1997, and deposits were $7.5 billion. The leverage ratio was 7.70% at the end of the first quarter. -0-

               FIRST COMMERCE CORPORATION AND SUBSIDIARIES
                          FINANCIAL HIGHLIGHTS

                                  First        First
                                 Quarter      Quarter
(dollars in thousands, except      1997         1996
 per share data)

INCOME DATA

  Net interest income         $   95,833   $   88,925
  Net interest income
   (tax equivalent)           $   97,592   $   90,384
  Provision for loan losses   $   13,225   $    3,825
  Other income (exclusive of
   securities transactions)   $   43,545   $   40,800
  Securities transactions     $       23   $    1,207
  Operating expense           $   82,842   $   79,786
  Net income                  $   29,020   $   31,533

AVERAGE BALANCE SHEET DATA
  Loans                       $6,206,007   $5,170,534
  Securities                  $2,137,468   $2,457,394
  Earning assets              $8,400,237   $7,699,873
  Total assets                $9,082,650   $8,442,698
  Deposits                    $7,372,870   $6,889,954
  Long-term debt              $  257,275   $   87,028
  Stockholders' equity        $  723,937   $  740,091

PER COMMON SHARE DATA

  Net income - fully diluted  $      .73   $      .75
  Net income - primary        $      .74   $      .79
  Book value (end of period)  $    18.58   $    18.02
  Closing stock price         $    40.50   $    33.00
  Cash dividends              $      .40   $      .35

RATIOS
  Net income as a percent of:
     Average assets                 1.30%        1.50%
     Average total equity          16.26%       17.14%
     Average common equity         16.26%       17.82%
  Net interest income (tax
     equivalent) as a percent of
     average earning assets         4.70%        4.71%
  Operating expense less
     other income (excluding
     securities transactions) as
     a percent of average earning
     assets                         1.90%        2.04%
  Operating expense as a percent
     of total revenue (tax
     equivalent and excluding
     securities transactions)      58.70%       60.82%
  Allowance for loan losses as a
     percent of net loans, at end
     of period                      1.31%        1.46%
  Nonperforming assets as a
     percent of net loans plus
     foreclosed assets, at end of
     period                          .59%        1.09%
  Stockholders' equity as a percent
     of total assets, at end of
     period                         7.79%        8.94%
  Leverage ratio at end of period   7.70%        8.33%

CONTACT: First Commerce Corp., New Orleans

Michael A. Flick [phone]

or

Holly E. Hobson [phone]