SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
DATE OF REPORT (Date of earliest event reported): July 15, 1997
FIRST COMMERCE CORPORATION
(Exact name of registrant as specified in its charter)
LOUISIANA 0-7931 72-0701203
(State of (Commission File (IRS Employer
incorporation) Number) Identification
Number)
201 ST. CHARLES AVE., 29TH FLOOR, NEW ORLEANS, LOUISIANA 70170
(Address of principal executive offices - Zip Code)
Registrant's telephone number, including area code: (504)623-1371
210 BARONNE ST., NEW ORLEANS, LOUISIANA 70112
(Former name or former address, if changed since last report)
Item 5. Other Events.
On July 15, 1997, First Commerce Corporation issued the following press
release:
JULY 15, 1997
CONTACTS: MICHAEL A. FLICK (504) 623-1492
HOLLY E. HOBSON (504) 623-2917
FIRST COMMERCE ANNOUNCES SECOND QUARTER EARNINGS
New Orleans - First Commerce Corporation (NASDAQ - FCOM)
announced today that its net income for the second quarter was
$32.9 million, or $.81 per fully diluted share. Fully diluted
earnings per share were $.76 in 1996's second quarter and $.73
in this year's first quarter.
The key points of the second quarter results included:
* Revenues increased 9%, or $12.3 million, from the second
quarter of 1996 to 1997's second quarter. The primary
reasons for the increase in revenues were loan growth,
higher fee income and gains on venture capital
securities transactions. When compared to the first
quarter's results, revenues grew 4%, principally due to
higher noninterest income.
* Noninterest income was $48.8 million for the second
quarter excluding investment securities transactions, a
15% improvement from 1996's second quarter and up 12%
from 1997's first quarter. Contributing to this
increase was growth of credit card fees in the second
quarter, primarily resulting from higher purchase
volumes. The venture capital business realized a net
gain of $3.0 million from some of the securities in
which it invested, also contributing to the rise in
noninterest income.
* Net interest income (FTE) was $98.3 million for the
current quarter. The 7% increase from 1996's second
quarter was principally caused by loan growth of 20%.
Net interest income was up 1% from the first quarter.
Funding costs increased again this quarter and
partially offset the impact of loan growth. The net
interest margin was 4.67% in the second quarter,
compared to 4.89% in 1996's second quarter and 4.70% in
the first quarter.
* The provision for loan losses was $14.8 million in the
second quarter, up $7.3 million from $7.5 million in
1996's second quarter and $1.6 million higher than the
$13.2 million in the first quarter. Net charge-offs in
the second quarter were $8.8 million, or .55% of
average loans, versus $6.7 million (or .51%) in 1996's
second quarter and $13.1 million (or .85%) in the prior
quarter. Credit card net charge-offs decreased to $8.7
million this quarter, or 4.16% of average credit card
loans, from $9.0 million, or 4.40%, in the prior
quarter. Consumer net charge-offs also declined from
$4.4 million in the first quarter, or .90% of average
consumer loans, to $3.7 million, or .76%, in the second
quarter. Credit card and consumer charge-offs were
both higher than in 1996's second quarter. Commercial
loans had a net recovery this quarter of $3.6 million.
The provision exceeded net charge-offs by $6 million in
the second quarter, a reflection of both the strong
loan growth and the effect of increasing charge-offs
during the last twelve months which impacted the
experience factor used in the allowance calculation.
* Operating expense was $82.2 million for the second
quarter, up 5% from 1996's second quarter and down 1%
from the first quarter. The efficiency ratio declined
to 57.02% for the current quarter from 57.97% in 1996's
second quarter and 58.70% in this year's first quarter.
Careful expense management and the elimination of stock
appreciation rights expense continue to contribute to
improvements in the efficiency ratio.
Total loans were $6.5 billion as of June 30, 1997, 20%
higher than one year ago and up 5% from March 31. Loan growth
continues to be broad-based with the most significant increases
in commercial and commercial real estate. Average loans were
20% higher than in 1996's second quarter and up 2% from the
first quarter. The average loan growth from the first quarter
was strongest in commercial and commercial real estate, with
significant commercial loan demand increasing late in the
second quarter.
Average deposits were $7.5 billion in the second quarter,
8% higher than 1996's second quarter and 1% higher than in the
first quarter. The growth from 1996's second quarter was
principally related to brokered time deposits and public funds.
Nonperforming assets were $36.7 million at June 30, 1997,
or .56% of loans, compared to $36.4 million at March 31, or
.59% of loans. The allowance for loan losses was $87.7
million, or 1.34% of loans at the end of the quarter, an
increase from $81.7 million, or 1.31% of loans, as of March 31.
Loans past due 90 days or more not on nonaccrual declined to
$28.0 million as of June 30, 1997 from $30.5 million at March
31. Credit card delinquencies declined slightly this quarter.
First Commerce began its venture capital business in 1994
to provide companies with capital for growth through expansion
or acquisition, satisfying the corporate finance needs that
traditional bank lending could not meet. The investments made
by First Commerce's venture capital unit to meet these needs
are now beginning to result in realizable gains.
Total assets were $9.3 billion at June 30, 1997, and
deposits were $7.7 billion. The leverage ratio was 7.98% at
the end of the second quarter.
First Commerce Corporation is a New Orleans-based bank
holding company operating six Louisiana banks in Alexandria,
Baton Rouge, Lafayette, Lake Charles, Monroe, and New Orleans.
FIRST COMMERCE CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
Second Second Six Months Ended
Quarter Quarter June 30
(dollars in thousands, except per share data) 1997 1996 1997 1996
INCOME DATA
Net interest income $ 96,436 $ 90,968 $ 192,269 $ 179,893
Net interest income (tax equivalent) $ 98,292 $ 92,289 $ 195,884 $ 182,673
Provision for loan losses $ 14,775 $ 7,465 $ 28,000 $ 11,290
Other income (exclusive of securities transactions) $ 45,815 $ 42,501 $ 89,360 $ 83,301
Venture capital securities transactions $ 3,009 $ 0 $ 3,009 $ 0
Securities transactions $ 780 $ (84) $ 803 $ 1,123
Operating expense $ 82,169 $ 78,144 $ 165,011 $ 157,930
Operating income $ 30,396 $ 31,722 $ 59,401 $ 62,470
Net income $ 32,859 $ 31,667 $ 61,879 $ 63,200
AVERAGE BALANCE SHEET DATA
Loans $ 6,328,964 $ 5,277,895 $ 6,267,825 $ 5,224,210
Securities $ 2,058,183 $ 2,197,283 $ 2,097,606 $ 2,327,340
Earning assets $ 8,444,555 $ 7,576,406 $ 8,422,517 $ 7,638,136
Total assets $ 9,108,807 $ 8,284,388 $ 9,095,801 $ 8,363,538
Deposits $ 7,462,260 $ 6,917,697 $ 7,417,814 $ 6,903,824
Long-term debt $ 340,208 $ 85,980 $ 298,970 $ 86,504
Stockholders' equity $ 736,360 $ 738,940 $ 730,183 $ 739,513
PER COMMON SHARE DATA
Net income - fully diluted $ 0.81 $ 0.76 $ 1.54 $ 1.51
Net income - primary $ 0.83 $ 0.79 $ 1.57 $ 1.58
Operating income - fully diluted $ 0.75 $ 0.76 $ 1.48 $ 1.50
Operating income - primary $ 0.77 $ 0.79 $ 1.51 $ 1.56
Book value (end of period) $ 19.67 $ 18.11 $ 19.67 $ 18.11
Closing stock price $ 44.00 $ 35.38 $ 44.00 $ 35.38
Cash dividends $ 0.40 $ 0.35 $ 0.80 $ 0.70
RATIOS
Net income as a percent of:
Average assets 1.45% 1.54% 1.37% 1.52%
Average total equity 17.90% 17.24% 17.09% 17.19%
Average common equity 17.90% 17.79% 17.09% 17.81%
Net interest income (tax equivalent) as
a percent of average earning assets 4.67% 4.89% 4.68% 4.80%
Average loans as a percent of average deposits 84.81% 76.30% 84.50% 75.67%
Operating expense less other income
(excluding securities transactions) as a
percent of average earning assets 1.73% 1.89% 1.81% 1.96%
Operating expense as a percent of
total revenue (tax equivalent and excluding
securities transactions) 57.02% 57.97% 57.85% 59.38%
Allowance for loan losses as a percent of
loans, at end of period 1.34% 1.39% 1.34% 1.39%
Nonperforming assets as a percent of
loans plus foreclosed assets, at end of period 0.56% 0.61% 0.56% 0.61%
Stockholders' equity as a percent
of total assets, at end of period 8.17% 8.80% 8.17% 8.80%
Leverage ratio at end of period 7.98% 8.65% 7.98% 8.65%
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
FIRST COMMERCE CORPORATION
By: /s/ Thomas L. Callicutt, Jr.
------------------------------------
Thomas L. Callicutt, Jr.
Executive Vice President,
Controller and
Principal Accounting Officer
Dated: July 21, 1997