First Commercial Announces Second Quarter Earnings.

LITTLE ROCK, Ark.--(BUSINESS WIRE)--July 16, 1996--Barnett Grace, chairman, president and chief executive officer of First Commercial Corporation, the Arkansas-based bank holding company, announced today that FCC achieved positive results during the second quarter and first six months of 1996.

First Commercial Corporation reported for the first six months of 1996 a return on average assets of 1.26% and a return on average common stockholders' equity of 14.74%. These results compare with a 1.18% return on average assets and a 14.49% return on common stockholders' equity reported for the first half of 1995.

Earnings of $0.61 per share were reported in 1996's second quarter ended June 30, an increase of 17% from $0.52 per share reported in the second quarter of 1995. For the six months ended June 30, 1996, FCC earned $1.19 per share compared with 1995's $1.01, an increase of 18%. This increase was primarily due to a rise in net interest income as a result of loan growth and increasing asset yields. The Company also experienced an increase in non-interest income as a result of mortgage servicing acquisitions during 1995 and early 1996, higher mortgage production volumes and increased activity in the Company's trust and broker-dealer operations. During the second quarter, the Company recorded litigation related expenses of $1.2 million, or $0.03 per share after-tax.

Total assets at June 30, 1996, were $5.2 billion, an increase of 14% from a year earlier, while loans and leases, net of unearned income, increased 16% to $3.2 billion, and total deposits increased 14% to $4.5 billion. Excluding the fourth quarter 1995 acquisition of FDH Bancshares, Inc., which was accounted for as a purchase transaction, total loans increased 9% and deposits increased 6%. Approximately $30 million of the increase in total loans relates to the increased mortgage production volume experienced by the Company's mortgage subsidiary. The remaining $200 million increase in the loan and lease portfolio reflects increased loan demand experienced throughout the Company.

Total stockholders' equity was $447 million on June 30, 1996, up 20% from a year earlier. FCC's total equity position equaled 8.57% of total assets at the end of 1996's second quarter, up from 8.14% in 1995. On June 30, 1996, FCC had over $94 million in equity capital in excess of its target level of 6.75% of total assets. This excess equity capital will be utilized to help fund FCC's ongoing acquisition effort.

FCC continues to maintain strong capital ratios while earning competitive returns for its shareholders. FCC's tier I leverage ratio was 7.86% compared to a prescribed regulatory minimum of 3%. Tier I risk-based capital ratio was 11.56%. The prescribed regulatory minimum is 4%. The total risk-based capital ratio was 12.35% compared with a prescribed regulatory minimum of 8%.

On June 30, 1996, FCC's allowance for possible loan and lease losses equaled 1.60% of the loan and lease portfolio. Non-performing loans amounted to 0.59% of total loans and leases, remaining relatively stable compared to last year's 0.52%. The allowance for possible loan and lease losses equaled 270.49% of non-performing loans at period-end as compared with 32 3.11% on June 30, 1995. The allowance for loan and lease losses and other real estate losses to non-performing assets was 322.56% on June 30, 1996, compared with 333.76% from a year earlier.

In commenting on second quarter results, Mr. Grace noted two recent affiliations. "First Commercial announced during the second quarter that it had entered into definitive agreements for the purchase of City National Bank, Whitehouse, Texas, and Security National Bank, Nacogdoches, Texas. City National Bank will be merged with Tyler Bank and Trust Company, N.A., the Company's Tyler, Texas, affiliate while Security National Bank will be merged with Stone Fort National Bank, the Company's Nacogdoches, Texas, affiliate. Our continuing affiliation opportunities include, but are not limited to, in-market mergers such as those announced in the second quarter in Nacogdoches and Tyler. FCC affiliate banks own strong franchises in their respective markets and we have found that leveraging that strength can be an efficient means of growing the company. We look forward to expanding our franchises in the Tyler and Nacogdoches markets by merging with these outstanding banking organizations."

Mr. Grace continued, "If you have followed events surrounding the lawsuit filed 12 years ago by Aearth Development, Inc., against First Commercial Bank, N.A., a subsidiary of the Company, you know that the trial court has reduced the original jury verdict from $22.5 million to $8.2 million. The bank intends to file an appeal of the final judgment seeking to further reduce or reverse the judgment. The ultimate legal and financial liability of the Company in connection with this matter cannot be estimated with certainty, but management, based on the advice of legal counsel that the judgment entered on the verdict will be reversed and dismissed in whole or in part or a new trial ordered in whole or in part, believes that the impact of this matter will not have a materially adverse effect on the Company's financial position. However, if any substantial loss were to occur as a result of this litigation it could have a material adverse impact upon results of operations in the fiscal quarter or year in which it were to be incurred, but the Company cannot estimate the range of any reasonably possible loss."

Mr. Grace also mentioned FCC's annual shareholders' meeting. "FCC shareholders held their annual meeting in Little Rock on April 16. This year's meeting featured the importance of sales training and sales management in the financial services industry. Several initiatives are underway with in our company that are designed to improve the way our banks and bankers approach selling. We view this as one of our most important challenges in the coming years.

"The highlight of the meeting was a special tribute to retiring board member Charles H. Murphy, Jr., featuring a video chronicling his life and 50 years of leadership of Murphy Oil Corporation. Mr. Murphy has faithfully served on the FCC board for 12 years and will remain as Chairman Emeritus of the Executive Committee.

"FCC received favorable recognition in the April issue of US Banker in which the publication ranked the top performing bank holding companies based on December 31, 1995 results. FCC placed 28th among a broad field of successful bank holding companies. The formula used to judge bank performance includes a wide range of measures and is one of the more comprehensive models being used today to rank bank performance. We are pleased to be recognized as one of the top banking organizations in the country."

First Commercial Corporation is a $5.2 billion bank holding company with twenty-four banks in Arkansas, Texas, Tennessee and Louisiana and a 50% interest in a bank in Oklahoma. FCC's non-bank subsidiaries include First Commercial Mortgage Company, First Commercial Trust Company, N.A., First Commercial Investments, Inc., First Commercial Capital Management, Financial Fleet Services, Inc. and Commercial Capital Funding, Inc. -0-

                    FIRST COMMERCIAL CORPORATION

                            Three Months Ended     Six Months Ended
                                 June 30,              June 30,
Dollars in thousands         1996       1995       1996       1995

SELECTED AVERAGE BALANCES
Total assets             $5,203,482 $4,513,559 $5,202,754 $4,498,053
Earning assets            4,677,435  4,086,843  4,663,012  4,062,518
Loans, net of unearned
 income                   3,203,560  2,727,325  3,199,530  2,686,152
Deposits                  4,552,201  3,918,355  4,531,693  3,904,293
Interest bearing
 liabilities              3,800,070  3,328,959  3,805,988  3,317,562
Common stockholders'
 equity                     449,735    371,783    445,832    367,668
FAS 115 equity adjustment    (3,239)    (1,222)    (1,090)    (3,212)

SELECTED PERIOD END DATA
Investment securities,
 market value                                  $1,349,286 $1,241,195
Book value per share                                16.36      14.31
Non-accrual loans                                  12,640     10,710
Loans past due 90 days +                            6,199      3,355
Restructured loans                                    229        415
Gross charge-offs             2,432      1,208      4,701      2,517
Recoveries                      740        814      1,812      1,683

PERFORMANCE RATIOS
Return on assets               1.29%      1.22%      1.26%      1.18%
Return on equity              14.88      14.81      14.74      14.49
Net interest margin            4.69       4.47       4.65       4.42
Net interest spread            3.92       3.72       3.88       3.70
Efficiency ratio              55.92      61.81      55.88      62.03

MISCELLANEOUS
Net interest income (TE)    $54,641    $45,567   $107,446    $89,136
Intangible assets
   -  Debt issue costs                                 59         78
   -  Goodwill                                     39,194     21,337
   -  Core deposit intangibles                      1,798      2,190
   -  Other intangibles                               147        240
Purchased mortgage servicing
 rights                                            54,130      9,234
Total trust assets (in millions)
   -  Discretionary                                 2,402      2,305
   -  Non-discretionary                             4,468      3,629
   -  Bond issues                                   2,230      1,955
Mortgage servicing portfolio
 (in millions)                                      7,782      2,786
Tier I capital                                    405,146    348,596
Tier I capital to
 risk-adjusted assets                               11.56%     11.73%
Total capital to
 risk-adjusted assets                               12.35%     12.50%
Common stock closing
 price (NASDAQ)                                    $30.75     $23.72

    Note: The FAS 115 equity adjustment is not used in ratio
calculations.  The efficiency ratio excludes the effect of
amortization of intangible assets and non-recurring income and
expenses.

                    FIRST COMMERCIAL CORPORATION
                  CONSOLIDATED STATEMENT OF INCOME
                            (Unaudited)

                            Three Months Ended    Six Months Ended
                                 June 30,              June 30,
Dollars in thousands         1996       1995       1996       1995
Interest Income
Loans and leases,
 including fees             $71,605    $59,793   $142,817   $114,663
Short-term investments        1,558      1,200      3,025      2,182
Investment securities
 - taxable                   17,460     15,915     34,348     31,574
 - non-taxable                2,024      1,766      4,036      3,761
Trading account securities        9         (2)         1         --
      TOTAL INTEREST
       INCOME                92,656     78,672    184,227    152,180

Interest Expense
Interest on deposits         36,828     31,108     73,867     59,172
Short-term borrowings         1,958      2,552      4,422      5,171
Long-term debt                   99        222        220        414
      TOTAL INTEREST
       EXPENSE               38,885     33,882     78,509     64,757

Net Interest Income          53,771     44,790    105,718     87,423
Provision for possible
 loan & lease losses          1,553        434      3,125      1,259
     Net interest income
      after provision
      for possible loan &
      lease losses           52,218     44,356    102,593     86,164

Other Income
Trust department
 income                       2,974      2,622      6,042      5,433
Mortgage servicing fee
 income                      10,799      3,818     21,800      7,498
Broker-dealer operations
 income                         979        728      1,884      1,379
Service charges on deposit
 accounts                     6,247      5,465     12,169     10,790
Other service charges and
 fees                         3,148      1,949      6,067      4,029
Other                         1,968      1,160      3,683      2,450
Investment securities gains
 (losses), net                   25         22         90         (5)
OREO gains (losses), net       (330)       128       (317)      (105)
      TOTAL OTHER INCOME     25,810     15,892     51,418     31,469

Other Expense
Salaries, wages and employee
 benefits                    23,863     19,785     47,633     39,293
Net occupancy                 3,146      2,689      6,118      5,421
Equipment                     3,195      2,600      6,250      5,163
FDIC insurance                  209      2,263        535      4,513
Amortization of mortgage
 servicing rights             5,100      1,086     10,164      2,074
Other                        16,772     11,096     33,061     21,552
      TOTAL OTHER EXPENSE    52,285     39,519    103,761     78,016

Income before income taxes   25,743     20,729     50,250     39,617
Income tax provision          9,061      7,004     17,667     13,200
      NET INCOME            $16,682    $13,725    $32,583    $26,417

Weighted average number of
 common shares outstanding
 during the period       27,335,493 26,144,521 27,343,316 26,141,512
Earnings per common share     $0.61      $0.52      $1.19      $1.01

                    FIRST COMMERCIAL CORPORATION
                     CONSOLIDATED BALANCE SHEET
                            (Unaudited)

                                                   June 30,
 Dollars in thousands                          1996       1995
 Assets
 Cash and due from banks                      $291,109   $311,440
 Investment securities held-to-maturity        336,529    869,263
 Investment securities available-for-sale    1,015,985    378,140
 Trading account securities                        556        230
 Short-term investments                         78,124     77,119
 Loans and Leases, net of unearned income    3,219,816  2,772,617
    Allowance for possible loan and
     lease losses                              (51,577)   (46,787)
    Loans and lease financing, net           3,168,239  2,725,830
 Bank premises and equipment, net              103,957     92,503
 Other real estate owned, net of allowance for
    possible losses of $49 ($70 in 1995)         2,244      2,443
 Other assets                                  224,648    130,234
      TOTAL ASSETS                          $5,221,391 $4,587,202

 Liabilities and Stockholders' Equity
 Non-interest bearing transaction accounts    $867,225   $825,316
 Interest bearing transaction and savings
  accounts                                   1,603,662  1,451,945
 Time deposits                               2,067,410  1,701,754
    Total deposits                           4,538,297  3,979,015
 Short-term borrowings                         169,851    185,910
 Other liabilities                              59,769     41,813
 Long-term debt                                  6,098      7,246
    Total liabilities                        4,774,015  4,213,984
 Stockholders' equity
    Preferred stock, $1 par value,
     400,000 shares authorized, none issued         --         --
    Common stockholders' equity, $3 par
     value, 50,000,000 shares authorized,
     27,389,252 and 26,161,076 shares issued,
     respectively                               82,168     73,353
    Capital surplus                            195,381    109,748
    Retained earnings                          175,445    192,278
    Unrealized net losses on available-for-sale
      securities, net of income tax             (4,221)      (146)
    Less treasury stock at cost, 45,382 and
     84,530 shares, respectively                (1,397)    (2,015)
        Total stockholders' equity             447,376    373,218
 TOTAL LIABILITIES AND STOCKHOLDERS'
  EQUITY                                    $5,221,391 $4,587,202

CONTACT: First Commercial Corp., Little Rock

Lynn Wright, 501/371-7142