Printer Friendly

FIRST COMMERCE CORP. $60 MILLION 7.25 PERCENT PREFERRED STOCK RATED 'BB+' BY FITCH -- FITCH FINANCIAL WIRE --

 FIRST COMMERCE CORP. $60 MILLION 7.25 PERCENT PREFERRED
 STOCK RATED 'BB+' BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Jan. 23 /PRNewswire/ -- First Commerce Corp.'s $60 million offering of 7.25 percent cumulative convertible preferred stock is rated 'BB+' by Fitch. The senior debt of the New Orleans-based banking company carries an implied 'BBB' rating. The credit trend is stable.
 First Commerce focuses on small business and middle-market lending as well as the consumer installment and credit card businesses. The company has no loans to highly leveraged or foreign borrowers, and the average loan size is small. In addition, management's early identification and charge-down of problem credits and its conservative reserve-building efforts have been instrumental in preserving the quality of First Commerce's loan portfolio. Nonetheless, non-performing assets (NPAs), including accruing loans past due 90 days or more, have trended up since year-end 1erforming" loans account for almost three-fourths of all loans on non-accrual status.
 During 1991, First Commerce exhibited an improved return on assets of 75 basis points (bp), a slightly wider net interest margin, and a 35 bp decline in the company's NPA ratio. Core deposits have been rising as a percentage of total funds, and reliance on volatile funding sources has been reduced substantially. However, during the year's first nine months, total assets grew at a annualized rate of 17 percent, greatly weakening the company's capital ratios, despite a higher rate of earnings retention. The preferred issue will raise the company's equity- to-assets ratio and its leverage capital ratio to 6.10 percent and 5.99 percent, respectively, pro forma as of year-end 1991, and will allow First Commerce to seize opportunities to increase its market share through branch or deposit base acquisitions.
 Following the preferred issue, First Commerce's Tier 1 and total risk-based capital ratios will exceed 10 percent and 15 percent, respectively, and will rank among the strongest in the industry. Despite the addition of new capital to the balance sheet, double leverage will remain somewhat high, in the 120 percent to 125 percent range.
 -0- 1/23/92
 /CONTACT: Christopher M. Siedman, 212-908-0524, or Fred W. DeBussey, 212-908-0521, both of Fitch/
 (FCOM) CO: First Commerce Corp. ST: Louisiana IN: FIN SU: RTG


CK -- NY099 -- 2995 01/23/92 16:26 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 23, 1992
Words:377
Previous Article:EPA ANNOUNCES ENFORCEMENT INITIATIVES UNDER SUPERFUND AND THE EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW ACT
Next Article:FAIR, ISAAC REPORTS 40 PERCENT INCREASE IN FIRST QUARTER EARNINGS
Topics:


Related Articles
BANKAMERICA'S $281.25 MILLION 9 PERCENT PREFERRED STOCK RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
FITCH WITHDRAWS RATINGS OF EIGHT BANK AND FINANCE COMPANIES -- FITCH FINANCIAL WIRE --
REPUBLIC NEW YORK $100 MILLION 7.75 PERCENT PREFERRED STOCK RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
BANKERS TRUST $100 MILLION PREFERRED RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
HOUSEHOLD INTERNATIONAL $100 MILLION 7.25 PERCENT SENIOR NOTES RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
RMSC-FBS MORTGAGE CORP. TRUST 1992-1 RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
ITT FINANCIAL $100 MILLION 7.25 PERCENT NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
HOUSEHOLD FINANCE $100 MILLION 7.25 PERCENT PREFERRED RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
PRIMERICA SENIOR DEBT RAISED TO 'A+', $300 MILLION PREFERRED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
FIRST COMMERCE CORP. PREFERRED STOCK RAISED TO 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters