First Commerce announces third quarter earnings.

NEW ORLEANS--(BUSINESS WIRE)--Oct. 12, 1995--First Commerce Corporation (NASDAQ-FCOM) announced today that its net income for the third quarter was $24.4 million, or $.73 per fully diluted share. Return on common equity was 16.42% in the third quarter and return on assets was 1.33%. Fully diluted earnings per share were $.72 in the second quarter of 1995 and $.36 for the third quarter of 1994.

The most significant items in the third quarter's results were:

-- Total revenues increased 1% from the second quarter and 8% from last year's third quarter, excluding nonrecurring items. Net interest income (FTE) rose 1% over the second quarter and was 6% higher than 1994's third quarter. The primary reason for the increase from both prior quarters was loan growth in all categories. Net interest income (FTE) was $76.8 million in the third quarter, $76.1 million in the second quarter and $72.5 million in the third quarter of 1994. Average loans were 7% higher than in this year's second quarter and 28% over 1994's third quarter. Loans were $4.2 billion at the end of the quarter. Noninterest income was $35.7 million in the third quarter. Excluding the $3.1 million gain on the required divestiture of Lakeside branches, noninterest income increased 1% from the prior quarter and was 10% higher than 1994's third quarter.

-- The net interest margin was 4.60% for the third quarter, compared to 4.73% in the second quarter and 4.62% in 1994's third quarter. The primary reason for the decline was higher deposit costs, which increased 13 basis points from the second quarter and 117 basis points from the third quarter of 1994.

-- The third quarter's noninterest expense of $69.5 million included a $2.6 million charge related to the Lakeside merger completion and a $1.1 million expense for an incentive pay plan tied to stock performance. The 43% increase in the price of First Commerce's common stock this year caused the higher level of expense for this incentive pay plan. Excluding these items and reflecting the reduction of the FDIC assessment, noninterest expense was unchanged from the prior quarter and up less than 2% from 1994's third quarter. The efficiency ratio, excluding nonrecurring items, improved to 60.55% in the third quarter from 61.25% in the second quarter.

-- Historical financial information for prior quarters has been restated to reflect the Lakeside pooling-of-interests.

The provision for loan losses was $4.6 million in the third quarter, compared to $2.9 million in the second quarter and a negative $2.6 million in 1994's third quarter. The continuing pace of loan growth led to the increase in the provision. The allowance for loan losses was 1.53% of loans at September 30, 1995, and 161% of nonperforming assets. Annualized net charge-offs continued at a very low .25% of loans in the third quarter. Nonperforming assets increased to $39.0 million, or .94% of loans, at the end of the third quarter, compared to $34.8 million as of June 30, 1995. This increase was primarily related to both commercial and residential real estate loans.

There were no securities transactions in the current quarter. Securities transactions resulted in minimal gains in the second quarter and net losses of $19.6 million in 1994's third quarter. At September 30, 1995, the SFAS 115 adjustment, after tax, reflected a net gain of $18.5 million, compared to a gain of $21.0 million as of June 30 and a loss of $50.1 million as of September 30, 1994.

Total assets were $7.4 billion at September 30, 1995, and deposits were $5.8 billion. The leverage ratio was 8.20% at the end of the quarter.

First Commerce Corporation is a New Orleans-based bank holding company operating five Louisiana banks in Alexandria, Baton Rouge, Lafayette, Lake Charles and New Orleans. First Commerce has one acquisition pending with Central Corporation of Monroe and completed its acquisition of Peoples Bancshares, Inc. on October 2, 1995. The Central acquisition is expected to be completed on October 20, 1995 and will increase First Commerce's assets to $8.2 billion and deposits to $6.8 billion. -0-

           FIRST COMMERCE CORPORATION AND SUBSIDIARIES
                      FINANCIAL HIGHLIGHTS

                                           Third       Third
                                          Quarter     Quarter
                                       ------------ -----------
                                           1995        1994
                                       ------------ -----------

INCOME DATA
(in thousands)
  Net interest income                  $    75,580 $    71,010
  Net interest income
    (tax equivalent)                   $    76,849 $    72,460
  Provision for loan losses            $     4,629 $    (2,550)
  Other income (exclusive of
    securities transactions)           $    35,655 $    28,477
  Securities transactions              $       -   $   (19,577)
  Operating expense                    $    69,461 $    65,280
  Operating income                     $    24,445 $    24,589
  Net income                           $    24,445 $    11,864

AVERAGE BALANCE SHEET DATA
(in thousands)
  Securities                           $ 2,619,341 $ 3,066,514
  Loans and leases,
    net of unearned income             $ 3,999,128 $ 3,133,749
  Earning assets                       $ 6,644,870 $ 6,248,499
  Total assets                         $ 7,266,131 $ 6,793,847
  Deposits                             $ 5,850,232 $ 5,554,365
  Long-term debt                       $    88,597 $    89,038
  Stockholders' equity                 $   623,909 $   538,850

PER COMMON SHARE DATA
  Net income - fully diluted           $       .73 $       .36
  Net income - primary                 $       .77 $       .36
  Operating income - fully diluted     $       .73 $       .73
  Operating income - primary           $       .77 $       .78
  Book value (end of period)           $     19.09 $     15.85
  Cash dividends                       $       .30 $       .30

RATIOS
  Net income as a percent of:
    Average assets                            1.33%        .69%
    Average total equity                     15.54%       8.74%
    Average common equity                    16.42%       8.93%

  Operating income as a percent of:
    Average assets                             1.33%       1.44%
    Average total equity                      15.54%      18.10%
    Average common equity                     16.42%      19.47%

  Net interest income (tax
    equivalent) as a percent of
    average earning assets                    4.60%       4.62%

  Operating expense less other
    income (excluding securities
    transactions) as a percent of
    average earning assets                    2.02%       2.34%

  Operating expense as a percent of
    total revenue (tax equivalent and
    excluding securities transactions)       61.74%      64.67%

  Allowance for loan losses as a
    percent of net loans and leases,
    at end of period                          1.53%       1.90%

  Nonperforming assets as a percent
    of net loans and leases plus
    foreclosed assets, at
    end of period                              .94%        .76%

  Stockholders' equity as a percent of
    total assets, at end of period            8.56%       7.75%

  Leverage ratio at end of period             8.20%       8.32%

                                           Nine Months Ended
                                              September 30
                                       ------------ -----------
                                           1995        1994
                                       ------------ -----------

INCOME DATA
(in thousands)
  Net interest income                  $   222,838 $   207,377
  Net interest income
    (tax equivalent)                   $   226,861 $   211,678
  Provision for loan losses            $    10,442 $   (11,089)
  Other income (exclusive of
    securities transactions)           $    98,182 $    86,236
  Securities transactions              $   (13,286)$   (25,160)
  Operating expense                    $   206,876 $   190,270
  Operating income                     $    68,579 $    76,839
  Net income                           $    59,943 $    60,485

AVERAGE BALANCE SHEET DATA
(in thousands)
  Securities                           $ 2,662,901 $ 3,202,165
  Loans and leases,
    net of unearned income             $ 3,760,167 $ 2,990,402
  Earning assets                       $ 6,467,766 $ 6,271,628
  Total assets                         $ 7,067,176 $ 6,857,437
  Deposits                             $ 5,800,336 $ 5,598,254
  Long-term debt                       $    88,656 $    89,832
  Stockholders' equity                 $   584,524 $   547,339

PER COMMON SHARE DATA
  Net income - fully diluted           $      1.81 $      1.83
  Net income - primary                 $      1.88 $      1.91
  Operating income - fully diluted     $      2.05 $      2.28
  Operating income - primary           $      2.17 $      2.45
  Book value (end of period)           $     19.09 $     15.85
  Cash dividends                       $       .90 $       .80

RATIOS
  Net income as a percent of:
    Average assets                            1.13%       1.18%
    Average total equity                     13.71%      14.77%
    Average common equity                    14.44%      15.70%

  Operating income as a percent of:
    Average assets                            1.30%       1.50%
    Average total equity                     15.69%      18.77%
    Average common equity                    16.64%      20.18%

  Net interest income (tax
    equivalent) as a percent of
    average earning assets                    4.68%       4.51%

  Operating expense less other
    income (excluding securities
    transactions) as a percent of
    average earning assets                    2.25%       2.22%

  Operating expense as a percent of
    total revenue (tax equivalent and
    excluding securities transactions)       63.65%      63.87%

  Allowance for loan losses as a
    percent of net loans and leases,
    at end of period                          1.53%       1.90%

  Nonperforming assets as a percent
    of net loans and leases plus
    foreclosed assets, at
    end of period                              .94%        .76%

  Stockholders' equity as a percent of
    total assets, at end of period            8.56%       7.75%

  Leverage ratio at end of period             8.20%       8.32%

CONTACT: First Commerce Corp., New Orleans

Michael A. Flick, 504/561-1492 or

Holly E. Hobson, 504/582-2917