First Commerce announces second quarter earnings.NEW ORLEANS--(BUSINESS WIRE)--July 11, 1996--First Commerce Corporation (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 second quarter was $31.7 million, or $.76 per share. Fully 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 $.75 in the first quarter of 1996 and $.66 for the second quarter of 1995. Return on equity was 17.24% in the second quarter, and return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.54%. Excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, fully diluted earnings per share were $.72 in this year's first quarter and $.69 in 1995's second quarter; the current quarter does not include any significant nonrecurring items. Highlights of the second quarter's results include: -- Loans grew 6% from March 31 to $5.4 billion at June June: see month. 30, 1996. Loan growth was in all categories with the most significant increase in credit cards, commercial, indirect automobile and tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. loans. Average loans were 2% higher than in the first quarter and up 20% from 1995's second quarter. The net interest margin was 4.89% in the second quarter, 18 basis points higher than in the first quarter. A lower level of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings caused the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. to decline from the prior quarter, while the yields on loans and securities improved. The net interest margin was 4.76% in 1995's second 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 $92.3 million in the second quarter, 2% higher than in the first quarter and up 5% from last year's second quarter. The combination of loan growth and a reduction in short-term borrowings led to improved net interest income. Loan growth of 20% was the primary cause of the improvement from last year's second quarter. -- Noninterest income was $42.5 million for the quarter. Excluding securities transactions and nonrecurring items, noninterest income was up 7% from the prior quarter and 15% from last year's second quarter. Growth was particularly strong in the credit card and trust categories. Credit card income was 12% higher than in the first quarter and up 32% from 1995's second quarter; trust fees rose 17% from the prior quarter and 31% from the second quarter of last year. -- Total revenues increased 4% from last quarter and were 8% higher than in 1995's second quarter. Improvements in the efficiency ratio continue to result from strong revenue growth and effective expense management. The efficiency ratio declined to 57.97% for the second quarter. Excluding significant nonrecurring items in the previous quarters, the efficiency ratio was 61.35% in the first quarter, 62.13% in the fourth quarter of 1995, and 62.53% for the second quarter of last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $78.1 million were down 2% from the first quarter and up less than 1% from the second quarter of 1995. -- 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. declined to $33.4 million, or .61% of loans, as of June 30, 1996, from $55.5 million at March 31. This improvement primarily resulted from the sale of a riverboat casino A Riverboat casino is a type of casino unique to several areas of the United States which use a riverboat as a casino. Several states authorized this type of casino to limit the areas where casinos could be constructed. related to a loan previously classified as nonaccrual in 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 and the payoff of a large nonaccrual loan in 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 . -- The provision for loan losses was $7.5 million in the second quarter, compared to $3.8 million in the prior quarter and $3.0 million in 1995's second quarter. Higher net charge-offs and loan growth caused the increase in the provision this quarter. 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. net charge-offs were .51% of loans in the second quarter, compared to .40% in the first quarter and .27% in 1995's second quarter. Credit card net charge-offs increased to 3.08% in the second quarter from 2.68% in the prior quarter. Similar to national trends, First Commerce's credit card charge-offs increased this quarter, partially due to an increase in personal bankruptcies Personal bankruptcy is a procedure which, in certain jurisdictions, allows an individual to declare bankruptcy. In other jurisdictions, bankruptcies are reserved for corporations. ; however, the net charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. ratio remains well below national averages. Consumer loan net charge-offs declined to .51% in the second quarter from .57% in the first quarter. Commercial loan recoveries exceeded charge-offs again this quarter. The allowance for loan losses was 1.39% of loans at June 30, 1996, and was 222.77% of nonperforming assets. In May, First Commerce announced its intent to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 1.8 million shares of its common stock. Through the end of the second quarter, 127,000 shares had been repurchased, with no resulting impact on earnings per share. Total assets were $8.4 billion at June 30, 1996, and deposits were $6.8 billion. The leverage ratio was 8.65% at the end of the quarter. 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 and New Orleans. -0- First Commerce Corporation and Subsidiaries
FINANCIAL HIGHLIGHTS
Second Second
Quarter Quarter
1996 1995
--------- ---------
(dollars in thousands except per share data)
INCOME DATA Net interest income $90,968 $85,959 Net interest income (tax equivalent) $92,289 $87,493 Provision for loan losses $ 7,465 $ 2,971 Other income (exclusive of securities transactions) $42,501 $37,088 Securities transactions $ (84) $ 36 Operating expense $78,144 $79,624 Operating income $31,722 $27,148 Net income $31,667 $27,171 AVERAGE BALANCE SHEET DATA Loans and leases, net of unearned income $5,277,895 $4,385,841 Securities $2,197,283 $2,897,752 Earning assets $7,576,406 $7,369,312 Total assets $8,284,388 $8,046,797 Deposits $6,917,697 $6,689,394 Long-term debt $ 85,980 $ 89,904 Stockholders' equity $ 738,940 $ 679,713 PER COMMON SHARE DATA Net income - fully diluted $ .76 $ .66 Net income - primary $ .79 $ .69 Operating income - fully diluted $ .76 $ .66 Operating income - primary $ .79 $ .69 Book value (end of period) $ 18.11 $ 17.25 Cash dividends $ .35 $ .30 RATIOS Net income as a percent of: Average assets 1.54% 1.35% Average total equity 17.24% 16.03% Average common equity 17.79% 16.88% Operating income as a percent of: Average assets 1.54% 1.35% Average total equity 17.27% 16.02% Average common equity 17.82% 16.87% Net interest income (tax equivalent) as a percent of average earning assets 4.89% 4.76% Operating expense less other income (excluding securities transactions) as a percent of average earning assets 1.89% 2.32% Operating expense as a percent of total revenue (tax equivalent and excluding securities transactions) 57.97% 63.91% Allowance for loan losses as a percent of net loans and leases, at end of period 1.39% 1.61% Nonperforming assets as a percent of net loans and leases plus foreclosed assets, at end of period .61% .84% Stockholders' equity as a percent of total assets, at end of period 8.80% 8.64% Leverage ratio, at end of period 8.65% 8.31% First Commerce Corporation and Subsidiaries
FINANCIAL HIGHLIGHTS
Six Months Ended
June 30
1996 1995
--------- ---------
(dollars in thousands except per share data)
INCOME DATA Net interest income $179,893 $170,219 Net interest income (tax equivalent) $182,673 $173,279 Provision for loan losses $ 11,290 $ 6,133 Other income (exclusive of securities transactions) $ 83,301 $ 72,083 Securities transactions $ 1,123 $(13,286) Operating expense $157,930 $160,526 Operating income $ 62,470 $ 50,299 Net income $ 63,200 $ 41,663 AVERAGE BALANCE SHEET DATA Loans and leases, net of unearned income $5,224,210 $4,287,447 Securities $2,327,340 $2,893,009 Earning assets $7,638,136 $7,301,996 Total assets $8,363,538 $7,963,322 Deposits $6,903,824 $6,665,740 Long-term debt $ 86,504 $ 89,960 Stockholders' equity $ 739,513 $ 652,818 PER COMMON SHARE DATA Net income - fully diluted $ 1.51 $ 1.02 Net income - primary $ 1.58 $ 1.05 Operating income - fully diluted $ 1.50 $ 1.23 Operating income - primary $ 1.56 $ 1.27 Book value (end of period) $ 18.11 $ 17.25 Cash dividends $ .70 $ .60 RATIOS Net income as a percent of: Average assets 1.52% 1.06% Average total equity 17.19% 12.87% Average common equity 17.81% 13.43% Operating income as a percent of: Average assets 1.50% 1.27% Average total equity 16.99% 15.54% Average common equity 17.60% 16.37% Net interest income (tax equivalent) as a percent of average earning assets 4.80% 4.77% Operating expense less other income (excluding securities transactions) as a percent of average earning assets 1.96% 2.44% Operating expense as a percent of total revenue (tax equivalent and excluding securities transactions) 59.38% 65.42% Allowance for loan losses as a percent of net loans and leases, at end of period 1.39% 1.61% Nonperforming assets as a percent of net loans and leases plus foreclosed assets, at end of period .61% .84% Stockholders' equity as a percent of total assets, at end of period 8.80% 8.64% Leverage ratio, at end of period 8.65% 8.31% CONTACT: First Commerce Corporation, 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, 504/561-1492 Holly E. Hobson, 504/623-2917 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion