MEMPHIS, Tenn., Jan. 17 /PRNewswire/ --
National Commerce Bancorporation (Nasdaq: NCBC) today announced record
fourth quarter and annual operating earnings.
For the quarter ended December 31, 2000, NCBC's diluted earnings per
share, before non-recurring expenses, were $.33, compared to $.30 per share in
the same quarter of 1999, a 10.0 percent increase. Net income, before non-
recurring expenses ("operating earnings"), was $68.8 million, a 10.3 percent
increase over the $62.4 million reported for the same period a year earlier.
Including non-recurring expenses, NCBC's fourth quarter net income was
$46.2 million, $.22 per diluted share.
The Company's annualized return on average assets and return on average
stockholders' equity were 1.67 percent and 20.66 percent respectively, for the
fourth quarter, on an operating basis. These compared with 1999 fourth
quarter returns of 1.66 percent and 19.05 percent.
"I am very proud of our accomplishments in 2000," noted Ernest C.
Roessler, president and chief executive officer of NCBC. "Net interest margin
improvement of 3 basis points in the fourth quarter, coupled with strong
growth of our Financial Enterprise businesses, created excellent revenue
momentum as we enter 2001, while our credit quality continues to be
outstanding. These factors contributed to record earnings per share growth
for the year of 27% over originally reported 1999 results. We successfully
completed four different systems conversions during the quarter in connection
with the CCB merger, passing key milestones in the integration of our two
companies. We have identified over 98 percent of the cost savings we expected
to achieve from the merger, while our merger costs of $106.5 million, before
securities portfolio restructuring losses, were less than our original
estimate of $110 million."
For the year ended December 31, 2000, net operating income totaled
$262.8 million, a 10.5 percent increase over the $237.9 million earned for
1999. Diluted operating earnings per share for 2000 were $1.27, compared to
$1.14 for 1999, an 11.4 percent increase. Including non-recurring expenses,
NCBC's net income for 2000 was $167.7 million, $.81 per diluted share.
For the year ended December 31, 2000, the return on average assets, on an
operating basis, was 1.64 percent, compared to 1.67 percent for 1999, while
the return on average stockholders' equity was 20.18 percent, compared to
19.52 percent a year earlier.
During the fourth quarter of 2000, NCBC incurred non-recurring expenses of
$30.7 million in connection with its third quarter 2000 merger of equals with
the former CCB Financial Corporation. The after-tax cost of $18.7 million
amounted to $.09 per diluted share. In addition, during the fourth quarter of
2000, NCBC incurred non-recurring securities losses of $4.6 million and a
$1.7 million penalty on the restructuring of certain borrowings. The after-
tax cost of these items of $3.9 million amounted to $.02 per diluted share.
During the fourth quarter of 1999, NCBC incurred non-recurring expenses of
$.7 million, less than $.01 per diluted share in connection with the
acquisitions of the former First Financial Corporation and the former
Southeastern Mortgage of Tennessee, Inc. The non-recurring expenses have been
excluded from operating results and returns discussed previously.
During the third quarter of 2000, NCBC incurred non-recurring expenses of
$86.2 in connection with the CCB merger. The after-tax cost of $68.8 million
amounted to $.33 per diluted share in the third quarter. During the second
quarter of 2000, NCBC incurred non-recurring expenses of $.02 per diluted
share in connection with the acquisition of the former Piedmont Bancorp, Inc.
of Hillsborough, North Carolina and the consolidation of American Federal
Bank, FSB, its South Carolina banking subsidiary, into Central Carolina Bank
and Trust Company, its North Carolina banking subsidiary. During the second
quarter of 1999, NCBC reported a non-recurring gain of $.10 per diluted share
on the sale of consumer credit card receivables. These non-recurring items
along with the fourth quarter non-recurring expenses have been excluded from
operating results and returns discussed previously.
Consolidated assets totaled $16.6 billion at December 31, 2000, up
7.8 percent from the year earlier total of $15.4 billion. During the fourth
quarter of 2000, NCBC's average loans and leases increased to $11.0 billion,
growing at a rate of 10.0 percent over the fourth quarter of 1999. Average
deposits grew 5.5 percent to $11.9 billion during the fourth quarter of 2000
compared to the year-ago quarter.
NET INTEREST EARNINGS
Net interest earnings, on a taxable equivalent basis, were $156.1 million
in the fourth quarter of 2000, compared to $157.4 million for the
corresponding period in 1999, a .8 percent decrease. The fourth quarter net
interest margin was 4.03 percent, compared to 4.43 percent for fourth quarter
1999 and 4.01 percent in third quarter 2000. The cost of interest-bearing
liabilities increased from 4.39 percent in fourth quarter 1999 to 5.31 percent
in 2000, while the taxable equivalent yield on earning assets increased from
8.18 percent to 8.63 percent.
NON-INTEREST INCOME AND EXPENSE
Non-interest income (excluding securities gains and losses) totaled
$74.1 million versus $52.4 million for fourth quarter 1999, an increase of
41.4 percent. Strong increases were experienced in deposit service charges,
transaction processing fees and broker/dealer revenues. Excluding
$8.5 million in fees from First Mercantile Trust, which was acquired in third
quarter 2000, non-interest income (excluding securities gains and losses)
increased 22.6 percent over the year-ago quarter.
Non-interest expenses for the fourth quarter 2000, before non-recurring
charges, were $115.8 million, compared to $101.1 million in 1999, an increase
of 14.5 percent. Excluding $7.7 million in expenses from First Mercantile,
non-interest expenses increased by 6.9 percent over the comparable prior year
period. The Company's efficiency ratio, the ratio of non-interest expenses to
net revenues, was 50.32 percent for the quarter.
Financial Enterprises, comprised of NCBC's transaction processing, trust
and asset management, consulting and capital markets businesses, earned net
income of $7.4 million for the fourth quarter of 2000 as compared to
$5.3 million for the fourth quarter of 1999 (an increase of 39.6 percent) and
$6.8 million for the third quarter of 2000 (an annualized increase of
35.3 percent). $.5 million of the increase over fourth quarter 1999 resulted
from the operations of First Mercantile. Excluding First Mercantile,
Financial Enterprises' net income rose from the fourth quarter of 1999 by
30.2 percent.
PROVISION FOR LOAN LOSSES
The provision for loan losses in the fourth quarter of 2000 was
$5.3 million, compared to $7.8 million for the fourth quarter 1999.
Annualized net charge-offs for the fourth quarter of 2000 were .19 percent of
average loans, compared to .17 percent of average loans in the year-ago
quarter and .18 percent in the third quarter of 2000.
NON-PERFORMING LOANS AND ASSETS
Total risk assets, including loans past due 90 days or more, were
$42.6 million (.39 percent of net loans) at December 31, 2000, compared to
$30.4 million at December 31, 1999 (.30 percent of net loans) and
$41.0 million at September 30, 2000 (.38 percent of net loans). Non-
performing assets amounted to $14.0 million at December 31, 2000 (.13 percent
of net loans). The loan loss reserve amounts to 1.30 percent of total net
loans at December 31, 2000.
ABOUT NCBC
National Commerce Bancorporation has $16.6 billion in assets and nearly
400 locations in nine Southeastern states. NCBC, headquartered in Memphis,
Tenn., with its operations headquarters in Durham, N.C., is a sales and
marketing organization that delivers select financial and consulting services
through a national network of banking affiliates and non-banking affiliates.
FORWARD-LOOKING STATEMENTS
These statements constitute forward-looking statements (within the meaning
of the Private Securities Litigation Reform Act of 1995), which involve
significant risks and uncertainties. A variety of factors could cause actual
results and experience to differ materially from the anticipated results or
other expectations expressed in such forward-looking statements.
NCBC does not assume any obligation to update these forward-looking
statements or to update the reasons why actual results could differ from those
projected in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to
competition from both financial and non-financial institutions; changes in
interest rates, deposit flows, loan demand and real estate values; changes in
legislation or regulation; changes in accounting principles, policies or
guidelines; the timing and occurrence (or non-occurrence) of transactions and
events that may be subject to circumstances beyond the control of NCBC; and
other economic, competitive, governmental, regulatory and technological
factors affecting NCBC specifically or the banking industry or economy
generally.
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Income Statement 12/31/2000 09/30/2000 06/30/2000
Loan income (TE) $252,033 246,225 236,338
Securities income (TE) 80,708 78,573 77,644
Other interest income (TE) 1,506 3,862 3,900
Total interest income (TE) 334,247 328,660 317,882
Savings/NOW expense 7,788 9,918 9,365
Money market account expense 30,405 27,650 26,900
Jumbo and brokered CD expense 34,251 33,236 29,619
Consumer time deposit expense 61,043 57,406 52,815
Interest expense on deposits 133,487 128,210 118,699
Short-term borrowed funds expense 34,055 37,903 37,041
Long-term debt expense 10,652 9,006 7,193
Total interest expense 178,194 175,119 162,933
Net interest income (TE) 156,053 153,541 154,949
Taxable equivalent adjustment 6,880 7,821 8,482
Net interest income 149,173 145,720 146,467
Provision for loan losses 5,316 5,098 6,194
Net interest income after provision 143,857 140,622 140,273
Service charges on deposits 26,063 26,640 25,921
Other service charges and fees 14,602 5,546 5,307
Trust income 14,066 14,364 5,943
Broker/dealer revenue and other
commissions 10,750 9,649 7,446
Accretion of negative goodwill 839 839 839
Other 7,738 12,097 12,409
Investment securities gains (losses)
(A) (4,632) (32) 1,015
Total noninterest income 69,426 69,103 58,880
Personnel expense 61,206 57,481 58,132
Occupancy 9,392 9,885 8,610
Equipment 7,074 6,266 6,411
Foreclosed property expense 313 147 183
Deposit and other insurance 683 478 774
Amortization of intangible assets 1,211 1,177 1,177
Other (A) 37,625 35,475 27,371
Conversion/merger expenses (A) 30,679 86,205 6,047
Total noninterest expense 148,183 197,114 108,705
Income before income taxes 65,100 12,611 90,448
Income taxes 18,893 15,095 29,106
Net income (loss) $46,207 (2,484) 61,342
Per Share Data
Income before non-recurring items (A)
- basic $.34 .32 .32
Income before non-recurring items (A)
- diluted .33 .32 .32
Net income (loss) - basic .23 (.01) .30
Net income (loss) - diluted .22 (.01) .30
Cash dividends .13 .13 .11
Book value 6.30 6.30 6.75
Closing stock price (2) 24.75 19.94 16.06
High stock price for the quarter 25.19 20.13 19.94
Low stock price for the quarter 17.65 15.25 16.06
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Income Statement 03/31/2000 12/31/1999
Loan income (TE) 223,111 218,828
Securities income (TE) 74,370 67,528
Other interest income (TE) 3,790 4,034
Total interest income (TE) 301,271 290,390
Savings/NOW expense 9,412 14,065
Money market account expense 25,581 20,375
Jumbo and brokered CD expense 27,807 23,014
Consumer time deposit expense 50,194 48,762
Interest expense on deposits 112,994 106,216
Short-term borrowed funds expense 29,551 16,342
Long-term debt expense 5,947 10,455
Total interest expense 148,492 133,013
Net interest income (TE) 152,779 157,377
Taxable equivalent adjustment 8,468 8,015
Net interest income 144,311 149,362
Provision for loan losses 4,284 7,835
Net interest income after provision 140,027 141,527
Service charges on deposits 23,471 22,839
Other service charges and fees 5,121 6,989
Trust income 5,663 5,464
Broker/dealer revenue and other
commissions 8,760 7,375
Accretion of negative goodwill 839 839
Other 10,289 8,931
Investment securities gains (losses)
(A) 270 1,086
Total noninterest income 54,413 53,523
Personnel expense 56,708 56,125
Occupancy 8,317 8,258
Equipment 6,314 6,892
Foreclosed property expense 143 166
Deposit and other insurance 684 789
Amortization of intangible assets 1,134 1,323
Other (A) 27,575 27,559
Conversion/merger expenses (A) -- 1,150
Total noninterest expense 100,875 102,262
Income before income taxes 93,565 92,788
Income taxes 30,958 31,054
Net income (loss) 62,607 61,734
Per Share Data
Income before non-recurring items (A)
- basic .30 .30
Income before non-recurring items (A)
- diluted .30 .30
Net income (loss) - basic .30 .30
Net income (loss) - diluted .30 .29
Cash dividends .11 .11
Book value 6.63 6.52
Closing stock price (2) 18.50 22.69
High stock price for the quarter 22.69 26.44
Low stock price for the quarter 15.50 21.50
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Ratios 12/31/2000 09/30/2000 06/30/2000
Income before non-recurring items
(A):
Return on average assets 1.67 % 1.65 1.63
Return on average equity 20.66 20.93 20.11
Net income:
Return on average assets 1.12 (.06) 1.54
Return on average equity 13.87 (.78) 18.96
Net interest margin 4.03 4.00 4.12
Average equity to average assets 8.11 7.86 8.11
Operating Efficiency Ratios
As a percentage of average assets
(excluding non-
recurring items (A)):
Noninterest income 1.69 % 1.71 1.48
Personnel expense 1.49 1.43 1.46
Occupancy and equipment
expense .40 .40 .38
Other operating expense .82 .92 .74
Noninterest expense 2.71 2.75 2.58
Net overhead (noninterest
exp. - noninterest inc.) 1.02 % 1.04 1.10
Noninterest expense as a
percentage of net interest
income (TE) and other income
(excluding
non-recurring items (A)) 50.32 % 49.81 48.01
Average Balances
Assets $16,341,133 16,209,033 16,038,303
Loans (all domestic) (C):
Commercial 2,834,213 3,024,554 2,955,504
Construction and commercial
real estate 2,546,473 2,322,832 2,185,981
Mortgage 1,797,380 1,770,898 1,711,077
Consumer 3,579,674 3,473,835 3,502,925
Revolving credit 68,849 69,689 66,657
Lease financing 128,595 123,494 113,109
Total loans 10,955,184 10,785,302 10,535,253
Earning assets (D) 15,414,826 15,282,626 15,141,815
Deposits:
Demand deposits (noninterest-
bearing) 1,395,858 1,322,192 1,392,546
Savings/NOW accounts 1,275,293 1,264,061 1,306,424
Money market accounts 3,101,288 3,051,432 3,094,658
Jumbo and brokered CD's 2,158,260 2,099,201 1,973,903
Consumer time deposits 3,923,274 3,861,575 3,821,820
Total deposits 11,853,973 11,598,461 11,589,351
Short-term borrowed funds 2,204,813 2,449,249 2,454,628
Long-term debt 699,737 559,060 462,940
Interest-bearing liabilities 13,362,665 13,284,579 13,114,372
Shareholders' equity 1,325,097 1,274,405 1,301,039
Share Data
Common shares outstanding 205,470,368 205,186,627 203,129,378
Weighted average shares
outstanding:
Basic 205,334,106 205,465,735 204,302,402
Diluted 207,800,709 207,329,521 206,310,675
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Ratios 03/31/2000 12/31/1999
Income before non-recurring items
(A):
Return on average assets 1.59 1.66
Return on average equity 19.00 19.05
Net income:
Return on average assets 1.59 1.64
Return on average equity 19.00 18.84
Net interest margin 4.18 4.43
Average equity to average assets 8.37 8.72
Operating Efficiency Ratios
As a percentage of average assets
(excluding non-
recurring items (A)):
Noninterest income 1.38 1.42
Personnel expense 1.44 1.49
Occupancy and equipment expense .37 .39
Other operating expense .75 .79
Noninterest expense 2.56 2.67
Net overhead (noninterest exp.
- noninterest inc.) 1.18 1.25
Noninterest expense as a percentage
of net interest
income (TE) and other income
(excluding
non-recurring items (A)) 48.69 47.94
Average Balances
Assets 15,629,624 14,917,595
Loans (all domestic) (C):
Commercial 2,843,474 2,684,717
Construction and commercial real
estate 2,044,624 1,935,640
Mortgage 1,637,690 1,623,189
Consumer 3,504,401 3,562,398
Revolving credit 65,178 62,560
Lease financing 100,945 93,886
Total loans 10,196,312 9,962,390
Earning assets (D) 14,700,311 14,091,792
Deposits:
Demand deposits (noninterest-
bearing) 1,349,937 1,309,984
Savings/NOW accounts 1,297,200 1,315,603
Money market accounts 3,074,763 3,135,212
Jumbo and brokered CD's 1,970,080 1,812,470
Consumer time deposits 3,822,019 3,664,745
Total deposits 11,513,999 11,238,014
Short-term borrowed funds 2,170,534 1,733,783
Long-term debt 397,988 359,413
Interest-bearing liabilities 12,732,584 12,021,223
Shareholders' equity 1,307,507 1,300,231
Share Data
Common shares outstanding 205,565,951 206,707,298
Weighted average shares outstanding:
Basic 206,487,150 207,588,376
Diluted 208,606,669 210,312,345
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
As Of Or For The Three Months Ended
Reserve For Loan Losses 12/31/2000 09/30/2000 06/30/2000
Beginning balance $143,510 143,160 140,234
Provision for loan losses 5,316 5,098 6,194
Addition from acquired institution -- -- --
Recoveries 1,303 1,846 1,796
Charge-offs (6,515) (6,594) (5,064)
Ending balance $143,614 143,510 143,160
Non-Performing and Risk Assets
Nonaccrual loans 7,219 26,432 28,292
Foreclosed real estate 6,799 4,366 5,062
Total nonperforming assets 14,018 30,798 33,354
Restructured loans 2,232 2,235 2,237
Ninety days past due and accruing 26,362 7,949 7,025
Total risk assets $42,612 40,982 42,616
Asset Quality Ratios
Total risk assets to:
Net loans .39 % .38 .40
Total assets .26 .25 .26
Loan loss reserve to total risk
assets 3.37 x 3.50 3.36
Net charge-offs to average loans
(annualized) .19 % .18 .12
Loan loss reserve to total loans 1.30 1.31 1.34
Other Information
Number of offices 375 378 380
Intangible assets:
Goodwill $35,919 37,198 38,363
Deposit base premium 10,678 10,994 11,311
Mortgage servicing rights 2,017 2,159 2,316
Negative goodwill 8,815 9,654 10,493
Cash dividends 26,688 26,714 22,641
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
As Of Or For The Three Months Ended
Reserve For Loan Losses 03/31/2000 12/31/1999
Beginning balance 139,821 135,248
Provision for loan losses 4,284 7,835
Addition from acquired institution -- 886
Recoveries 1,611 2,096
Charge-offs (5,482) (6,244)
Ending balance 140,234 139,821
Non-Performing and Risk Assets
Nonaccrual loans 25,952 15,950
Foreclosed real estate 1,874 3,143
Total nonperforming assets 27,826 19,093
Restructured loans 2,241 2,251
Ninety days past due and accruing 8,515 9,025
Total risk assets 38,582 30,369
Asset Quality Ratios
Total risk assets to:
Net loans .37 .30
Total assets .24 .20
Loan loss reserve to total risk
assets 3.63 4.60
Net charge-offs to average loans
(annualized) .15 .17
Loan loss reserve to total loans 1.35 1.39
Other Information
Number of offices 375 369
Intangible assets:
Goodwill 37,507 30,695
Deposit base premium 11,628 11,889
Mortgage servicing rights 2,497 2,686
Negative goodwill 11,332 12,171
Cash dividends 22,802 22,886
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Twelve Months Ended December 31 Increase (Decrease)
Income Statement 2000 1999 Amount %
Loan income (TE) $957,707 811,466 146,241 18.0
Securities income (TE) 311,295 263,526 47,769 18.1
Other interest income (TE) 13,058 23,656 (10,598) (44.8)
Total interest
income (TE) 1,282,060 1,098,648 183,412 16.7
Savings/NOW expense 36,483 55,168 (18,685) (33.9)
Money market account
expense 110,536 72,887 37,649 51.7
Jumbo and brokered CD
expense 124,913 83,013 41,900 50.5
Consumer time deposit
expense 221,458 184,433 37,025 20.1
Interest expense
on deposits 493,390 395,501 97,889 24.8
Short-term borrowed
funds expense 138,550 40,313 98,237 243.7
Long-term debt
expense 32,798 58,549 (25,751) (44.0)
Total interest
expense 664,738 494,363 170,375 34.5
Net interest income (TE) 617,322 604,285 13,037 2.2
Taxable equivalent
adjustment 31,651 30,564 1,087 3.6
Net interest income 585,671 573,721 11,950 2.1
Provision for loan losses 20,892 29,517 (8,625) (29.2)
Net interest income
after provision 564,779 544,204 20,575 3.8
Service charges on
deposits 102,095 83,782 18,313 21.9
Other service charges
and fees 30,576 26,730 3,846 14.4
Trust income 40,036 21,095 18,941 89.8
Broker/dealer revenue
and other
commissions 36,605 30,898 5,707 18.5
Accretion of negative
goodwill 3,356 3,356 -- --
Gain on sale of credit card
receivables (A) -- 32,837 (32,837) (100.0)
Other 42,533 44,216 (1,683) (3.8)
Investment securities
gains (losses) (3,379) (626) (2,753) NA
Total noninterest
income 251,822 242,288 9,534 3.9
Personnel expense 233,527 222,857 10,670 4.8
Occupancy 36,204 31,621 4,583 14.5
Equipment 26,065 24,979 1,086 4.3
Foreclosed property expense 786 655 131 20.0
Deposit and other insurance 2,619 3,072 (453) (14.7)
Amortization of
intangible assets 4,699 4,646 53 1.1
Other 128,046 108,363 19,683 18.2
Conversion/merger
expenses (A) 122,931 1,150 121,781 NA
Total noninterest
expense 554,877 397,343 157,534 39.6
Income before income
taxes 261,724 389,149 (127,425) (32.7)
Income taxes 94,052 131,995 (37,943) (28.7)
Net income $167,672 257,154 (89,482) (34.8)
Per Share Data
Income before
non-recurring items (A)
- basic $1.28 1.15 .13 11.3
Income before
non-recurring items (A)
- diluted 1.27 1.14 .13 11.4
Net income - basic .82 1.25 (.43) (34.4)
Net income - diluted .81 1.23 (.42) (34.1)
Cash dividends per
share .48 .375 -- --
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Twelve Months Ended December 31
Ratios 2000 1999
Income before non-recurring items (A):
Return on average assets 1.64% 1.67
Return on average equity 20.18 19.52
Net income:
Return on average assets 1.04 1.81
Return on average equity 12.88 21.10
Net interest margin 4.09 4.44
Average equity to average assets 8.11 8.56
As of December 31 YTD Averages
Balance Sheet Data 2000 1999 2000 1999
Assets $16,553,062 15,409,241 16,057,069 14,245,048
Loans (all domestic) (C):
Commercial 2,662,303 2,679,312 2,806,995 2,502,326
Construction and
commercial real estate 2,830,736 1,979,851 2,275,850 1,778,477
Mortgage 1,796,195 1,611,807 1,739,231 1,521,846
Consumer 3,549,812 3,613,998 3,612,477 3,287,591
Revolving credit 65,116 65,247 68,251 136,609
Lease financing 129,093 97,155 116,588 84,950
Total loans 11,033,255 10,047,370 10,619,392 9,311,799
Earning assets (D) 15,636,944 14,434,760 15,107,392 13,609,255
Deposits:
Demand deposits
(noninterest-bearing) 1,420,886 1,367,280 1,365,100 1,274,025
Savings/NOW
accounts 2,262,623 1,349,650 1,285,657 1,247,794
Money market accounts 3,211,491 3,080,175 3,080,512 3,017,146
Jumbo and brokered CD's 526,206 1,975,380 2,050,789 1,614,905
Consumer time
deposits 3,135,170 3,775,501 3,857,364 3,540,713
Total deposits 10,556,376 11,547,986 11,639,422 10,694,583
Short-term borrowed
funds 2,170,771 1,986,996 2,319,846 1,798,504
Long-term debt 699,804 353,851 497,580 243,400
Interest-bearing
liabilities 13,486,688 11,695,796 13,174,559 11,462,462
Shareholders'
equity 1,294,172 1,292,736 1,302,000 1,218,838
Fair value adjustment
included in shareholders'
equity 15,072 (17,672) (15,631) 5,157
Twelve Months Ended December 31
Reserve For Loan Losses 2000 1999
Beginning balance $139,821 129,063
Provision for loan losses 20,892 29,517
Addition from acquired institution -- 886
Decrease from sale of credit card receivables -- (1,967)
Recoveries 6,556 7,563
Charge-offs (23,655) (25,241)
Ending balance $143,614 139,821
Net charge-offs to average loans .16 % .19
NATIONAL COMMERCE BANCORPORATION
Financial Summary (A)
Unaudited
(In Thousands Except Share and Per Share Data)
Twelve Months Ended December 31
Operating Efficiency
Ratios 2000 1999
As a percentage of average assets
(excluding
non-recurring items (A)):
Noninterest income 1.57 % 1.47
Personnel expense 1.45 1.56
Occupancy and equipment expense .39 .40
Other operating expense .85 .82
Noninterest expense 2.69 2.78
Net overhead (noninterest
expense - noninterest income) 1.12 % 1.31
Noninterest expense as a percentage
of net interest income (TE) and other income
(excluding non-recurring items (A)) 49.24 % 48.69
Share Data
Weighted average shares outstanding:
Basic 205,397,362 206,125,614
Diluted 207,495,690 209,113,870
(A) Merger and conversion expenses incurred in the fourth quarter of
2000 ($22.5 million after tax) were related to the merger of the
company with CCB Financial Corporation. In addition, during the fourth
quarter 2000, NCBC incurred non recurring securities losses
and a penalty on the restructuring of borrowings ($3.9 million after
tax). Merger and conversion expenses incurred in the
third quarter of 2000 ($68.8 million after tax) were also in relation to
this transaction. Non recurring expenses incurred in the second quarter
of 2000 ($3.7 million after tax) were related to the acquisition of
Piedmont Bancorp and also to the merger of American Federal Bank, FSB into
Central Carolina Bank and Trust Company. Non-recurring expenses incurred
in the fourth quarter of 1999 ($.7 million after tax) were related to the
acquisition of First Financial Corporation and Southeastern Mortgage of
Tennessee. Also in 1999, a one time gain ($19.9 million after tax) was
realized on the sale of credit card receivables.
(B) NASDAQ symbol: NCBC
(C) Loan balances by category in accordance with the Corporation's
internal classification system which uses the purpose of the borrowing to
determine the reporting category.
(D) Average balances exclude the mark to market adjustment for Statement
of Accounting Standards No. 115 and the cash flow hedging adjustment for
Statement of Financial Accounting Standards No. 133.
SOURCE National Commerce Bancorporation
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CONTACT:
Eileen M. Sarro, 919-683-7642, or M.J.
"Jekka" Ashman, 901-523-3525, both of National Commerce
Bancorporation
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