MEMPHIS, Tenn., April 19 /PRNewswire/ --
National Commerce Bancorporation (Nasdaq: NCBC) today announced record first
quarter earnings.
For the quarter ended March 31, 2001, NCBC's diluted earnings per share
were $.35, compared to $.29 per share in the same quarter of 2000, a
20.7 percent increase. Net income was $72.2 million, a 20.9 percent increase
over the $59.7 million reported for the same period a year earlier. First
quarter 2001 net income increased by 15.2 percent over first quarter 2000 net
income before non-recurring expenses of $62.7 million ("operating income").
First quarter 2001 diluted earnings per share increased by 16.7 percent over
operating earnings per share of $.30 in first quarter 2000.
The Company's annualized return on average assets and return on average
stockholders' equity were 1.78 percent and 22.31 percent respectively, for the
first quarter. These compared with 2000 first quarter returns of 1.61 percent
and 19.36 percent.
"I am very pleased with our performance in the first quarter," noted
Ernest C. Roessler, president and chief executive officer of NCBC. "Net
interest margin improvement of 7 basis points in the quarter, coupled with
strong growth of our Financial Enterprise businesses, created excellent
revenue growth, while our credit quality continues to be solid. We continue
to benefit from the phase-in of cost savings from our CCB merger, with the
efficiency ratio dropping 103 basis points from the fourth quarter of 2000.
With the integration substantially behind us, we can now reap the benefits
from the many leverage opportunities which have begun to bear fruit. Finally,
we were able to announce a small bank acquisition which will improve our
market penetration in the Knoxville MSA."
During the first quarter of 2000, NCBC incurred non-recurring expenses of
$4.8 million in unrealized losses from certain interest rate swap contracts
which did not qualify for hedge accounting. The after-tax cost of
$3.0 million amounted to $.01 per diluted share. The non-recurring expenses
have been excluded from 2000 operating income, operating earnings per share
and returns discussed previously.
Consolidated assets totaled $16.6 billion at March 31, 2001, up
3.8 percent from the year earlier total of $16.0 billion. During the first
quarter of 2001, NCBC's average loans and leases increased to $11.1 billion,
growing at a rate of 8.4 percent over the first quarter of 2000. Average
deposits grew 4.2 percent to $12.0 billion during the first quarter of 2001
compared to the year-ago quarter.
Net Interest Earnings
Net interest earnings, on a taxable equivalent basis, were $156.0 million
in the first quarter of 2001, compared to $150.1 million for the corresponding
period in 2000, a 3.9 percent increase. The first quarter net interest margin
was 4.03 percent, compared to 3.96 percent for fourth quarter 2000 and
4.08 percent in first quarter 2000. The cost of interest-bearing liabilities
increased from 4.69 percent in first quarter 2000 to 5.03 percent in 2001,
while the taxable equivalent yield on earning assets increased from
8.14 percent to 8.40 percent.
Non-Interest Income and Expense
Non-interest income (excluding securities gains and losses) totaled
$75.0 million versus $53.6 million for first quarter 2000, an increase of
39.9 percent. Strong increases were experienced in deposit service charges,
transaction processing fees, mortgage banking and broker/dealer revenues.
Excluding $7.4 million in fees from First Mercantile Trust, which was acquired
in third quarter 2000, non-interest income (excluding securities gains and
losses) increased 26.1 percent over the year-ago quarter.
Non-interest expenses for the first quarter 2001 were $111.7 million,
compared to $97.6 million in 2000, before non-recurring expenses, an increase
of 14.4 percent. Excluding $6.2 million in expenses from First Mercantile,
non-interest expenses increased by 8.1 percent over the comparable prior year
period. The Company's efficiency ratio, the ratio of non-interest expenses to
net revenues, was 48.15 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 $7.6 million for the first quarter of 2001 as compared to
$4.9 million for the first quarter of 2000 (an increase of 55.1 percent) and
$7.4 million for the fourth quarter of 2000. $.8 million of the increase over
first quarter 2000 resulted from the operations of First Mercantile.
Excluding First Mercantile, Financial Enterprises' net income rose from the
first quarter of 2000 by 38.8 percent.
Provision For Loan Losses
The provision for loan losses in the first quarter of 2001 was
$6.4 million, compared to $4.3 million for the first quarter 2000. Annualized
net charge-offs for the first quarter of 2001 were .22 percent of average
loans, compared to .15 percent of average loans in the year-ago quarter and
.19 percent in the fourth quarter of 2000.
Non-Performing Loans and Assets
Total risk assets, including loans past due 90 days or more, were
$41.5 million (.37 percent of net loans) at March 31, 2001, compared to
$38.6 million at March 31, 2000 (.37 percent of net loans) and $42.6 million
at December 31, 2000 (.40 percent of net loans). Non-performing assets
amounted to $17.6 million at March 31, 2001 (.16 percent of net loans). The
loan loss reserve amounts to 1.30 percent of total net loans at March 31,
2001, unchanged from 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 03/31/2001 12/31/2000 9/30/2000 6/30/2000 3/31/2000
Loan income (TE) $241,922 249,565 243,369 233,430 220,390
Securities income (TE) 78,902 80,708 78,573 77,644 74,370
Other interest income (TE) 1,855 1,505 3,862 3,900 3,790
Total interest income
(TE) 322,679 331,778 325,804 314,974 298,550
Savings/NOW and money market
expense 35,791 38,193 37,568 36,265 34,993
Jumbo and brokered CD
expense 29,685 34,250 33,236 29,619 27,807
Consumer time deposit
expense 62,960 61,042 57,406 52,815 50,194
Interest expense on
deposits 128,436 133,485 128,210 118,699 112,994
Short-term borrowed funds
expense 15,831 17,850 21,934 21,908 15,205
FHLB advances expense 21,722 26,208 24,325 21,677 19,645
Long-term debt expense 644 650 650 649 648
Total interest
expense 166,633 178,193 175,119 162,933 148,492
Net interest income (TE) 156,046 153,585 150,685 152,041 150,058
Taxable equivalent
adjustment 7,170 6,880 7,821 8,482 8,468
Net interest income 148,876 146,705 142,864 143,559 141,590
Provision for loan losses 6,380 5,317 5,098 6,194 4,283
Net interest income after
provision 142,496 141,388 137,766 137,365 137,307
Service charges on
deposits 27,290 26,063 26,640 25,920 23,471
Other service charges and
fees 9,075 10,251 9,616 8,644 7,920
Trust income 13,882 14,066 14,364 5,943 5,663
Broker/dealer revenue and
other commissions 15,066 10,750 9,649 7,446 8,760
Accretion of negative
goodwill 839 839 839 839 839
Other 8,802 9,397 7,499 8,545 6,962
Investment securities gains
(losses) 935 (4,632) (32) 1,015 270
Total noninterest
income 75,889 66,734 68,575 58,352 53,885
Personnel 59,040 58,190 53,888 54,567 52,834
Occupancy 8,994 9,335 9,793 8,518 8,237
Equipment 6,604 7,074 6,266 6,411 6,314
Foreclosed property expense 275 313 147 183 143
Deposit and other insurance 810 683 478 774 684
Amortization of intangible
assets 1,442 1,269 1,269 1,269 1,214
Other 33,832 35,480 35,684 27,500 28,200
Losses on interest rate
swaps (1) 672 57,221 12,324 2,917 4,765
Conversion/merger
expenses (2) -- 30,679 86,205 6,047 --
Total noninterest
expense 111,669 200,244 206,054 108,186 102,391
Income before income
taxes 106,716 7,878 287 87,531 88,801
Income taxes 34,488 (535) 10,412 27,998 29,148
Net income $ 72,228 8,413 (10,125) 59,533 59,653
Per Share Data
Income before non-recurring
items (1) and (2)
- basic $ .35 .34 .32 .32 .30
Income before non-recurring
items (1) and (2)
- diluted .35 .33 .32 .32 .30
Net income - basic .35 .04 (.05) .29 .29
Net income - diluted .35 .04 (.05) .29 .29
Cash dividends .13 .13 .13 .11 .11
Book value 6.47 6.22 6.30 6.75 6.63
Closing stock price (3) 24.81 24.75 19.94 16.06 18.50
High stock price for the
quarter 27.44 25.19 20.13 19.94 22.69
Low stock price for the
quarter 21.56 17.65 15.25 16.06 15.50
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Ratios 03/31/2001 12/31/2000 09/30/2000
Income before non-recurring items
(1) and (2):
Return on average assets 1.78 % 1.67 1.62
Return on average equity 22.31 21.20 20.08
Net income:
Return on average assets 1.78 .20 (.25)
Return on average equity 22.31 2.59 (3.07)
Net interest margin 4.03 3.96 3.91
Average equity to average assets 7.99 7.90 8.07
Operating Efficiency Ratios
As a percentage of average assets
(excluding non-recurring items
(1) and (2)):
Noninterest income 1.87 % 1.74 1.68
Personnel expense 1.46 1.42 1.32
Occupancy and equipment expense .38 .40 .39
Other operating expense .91 .88 .92
Noninterest expense 2.75 2.70 2.63
Net overhead (noninterest
exp. - noninterest inc.) .88 % .96 .95
Noninterest expense as a
percentage of net interest
income (TE) and other income
(excluding non-recurring items
(1) and (2)) 48.15 % 49.18 49.04
Average Balances
Assets $16,440,462 16,349,587 16,285,908
Loans (all domestic) (4):
Commercial 2,659,892 2,604,638 2,560,107
Construction and commercial
real estate 2,888,815 2,776,136 2,625,225
Mortgage 1,790,533 1,797,380 1,787,257
Consumer 3,523,910 3,579,674 3,618,602
Revolving credit 62,191 68,849 70,617
Lease financing 130,159 128,595 123,494
Total loans 11,055,500 10,955,272 10,785,302
Earning assets (5) 15,470,356 15,426,545 15,305,614
Deposits:
Demand deposits
(noninterest-bearing) 1,333,036 1,394,009 1,322,192
Savings/NOW and money market
accounts 4,455,858 4,343,972 4,315,493
Jumbo and brokered CD's 2,031,289 2,158,260 2,099,201
Consumer time deposits 4,171,974 3,955,883 3,861,575
Total deposits 11,992,157 11,852,124 11,598,461
Short-term borrowed funds 1,178,320 1,158,326 1,427,312
FHLB advances 1,551,623 1,724,105 1,571,471
Long-term debt 39,359 39,363 39,363
Interest-bearing liabilities 13,428,423 13,379,909 13,314,415
Shareholders' equity 1,312,889 1,291,316 1,313,755
Share Data
Common shares outstanding 205,487,104 205,246,098 204,971,741
Weighted average shares
outstanding:
Basic 205,632,478 205,334,106 205,465,735
Diluted 208,544,880 207,800,709 207,329,521
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Ratios 06/30/2000 03/31/2000
Income before non-recurring items
(1) and (2):
Return on average assets 1.63 1.61
Return on average equity 20.29 19.36
Net income:
Return on average assets 1.49 1.54
Return on average equity 18.57 18.45
Net interest margin 4.00 4.08
Average equity to average assets 8.04 8.33
Operating Efficiency Ratios
As a percentage of average assets
(excluding non-recurring items (1) and (2)):
Noninterest income 1.46 1.39
Personnel expense 1.37 1.36
Occupancy and equipment expense .37 .37
Other operating expense .74 .78
Noninterest expense 2.48 2.51
Net overhead (noninterest exp.
- noninterest inc.) 1.02 1.12
Noninterest expense as a percentage
of net interest income (TE) and other income
(excluding non-recurring items (1) and (2)) 47.16 47.87
Average Balances
Assets 16,050,871 15,619,985
Loans (all domestic) (4):
Commercial 2,507,673 2,428,360
Construction and commercial real
estate 2,490,612 2,334,314
Mortgage 1,723,886 1,647,235
Consumer 3,632,447 3,619,477
Revolving credit 67,526 65,981
Lease financing 113,109 100,945
Total loans 10,535,253 10,196,312
Earning assets (5) 15,159,708 14,694,858
Deposits:
Demand deposits (noninterest-bearing) 1,392,546 1,349,937
Savings/NOW and money market accounts 4,401,082 4,371,963
Jumbo and brokered CD's 1,973,903 1,970,080
Consumer time deposits 3,821,820 3,822,019
Total deposits 11,589,351 11,513,999
Short-term borrowed funds 1,473,532 1,141,492
FHLB advances 1,429,890 1,387,826
Long-term debt 39,366 39,369
Interest-bearing liabilities 13,139,593 12,732,749
Shareholders' equity 1,289,734 1,300,659
Share Data
Common shares outstanding 203,129,378 205,565,950
Weighted average shares outstanding:
Basic 204,302,402 206,487,150
Diluted 206,310,675 208,606,669
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
As Of Or For The Three Months Ended
Allowance For
Loan Losses 03/31/2001 12/31/2000 9/30/2000 6/30/2000 3/31/2000
Beginning balance $143,614 143,510 143,158 140,232 139,822
Provision for loan losses 6,380 5,317 5,098 6,194 4,283
Addition from acquired
institution -- -- -- -- --
Recoveries 2,052 1,335 1,848 1,796 1,609
Charge-offs (8,007) (6,548) (6,594) (5,064) (5,482)
Ending balance $144,039 143,614 143,510 143,158 140,232
Non-Performing and Risk Assets
Nonaccrual loans 10,977 7,219 26,432 28,292 25,952
Foreclosed real estate 6,658 6,799 4,366 5,062 1,874
Total nonperforming
assets 17,635 14,018 30,798 33,354 27,826
Restructured loans 2,224 2,232 2,235 2,237 2,241
Ninety days past due and
accruing 21,682 26,362 7,949 7,025 8,515
Total risk assets $ 41,541 42,612 40,982 42,616 38,582
Asset Quality Ratios
Total risk assets to:
Net loans .37 % .40 .38 .40 .37
Total assets .25 .26 .25 .26 .24
Loan loss allowance to
total risk assets 3.47 x 3.37 3.50 3.36 3.63
Net charge-offs to average
loans (annualized) .22 % .19 .18 .13 .15
Loan loss allowance to
total loans 1.30 1.30 1.31 1.34 1.35
Other Information
Number of offices 377 378 380 375 369
Intangible assets:
Goodwill $ 34,857 37,198 38,363 37,507 30,695
Deposit base premium 10,386 10,994 11,311 11,628 11,889
Mortgage servicing rights 1,785 2,159 2,316 2,497 2,686
Negative goodwill 7,976 9,654 10,493 11,332 12,171
Cash dividends 26,774 26,714 22,641 22,802 22,886
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended March 31 Increase (Decrease)
Income Statement 2001 2000 Amount %
Loan income (TE) $241,922 220,390 21,532 9.8
Securities income (TE) 78,902 74,370 4,532 6.1
Other interest income (TE) 1,855 3,790 (1,935) (51.1)
Total interest
income (TE) 322,679 298,550 24,129 8.1
Savings/NOW and money market
expense 35,791 34,993 798 2.3
Jumbo and brokered
CD expense 29,685 27,807 1,878 6.8
Consumer time deposit
expense 62,960 50,194 12,766 25.4
Interest expense on
deposits 128,436 112,994 15,442 13.7
Short-term borrowed funds
expense 15,831 15,205 626 4.1
FHLB advances expense 21,722 19,645 2,077 10.6
Long-term debt expense 644 648 (4) (.6)
Total interest
expense 166,633 148,492 18,141 12.2
Net interest income (TE) 156,046 150,058 5,988 4.0
Taxable equivalent
adjustment 7,170 8,468 (1,298) (15.3)
Net interest income 148,876 141,590 7,286 5.1
Provision for loan
losses 6,380 4,283 2,097 49.0
Net interest income after
provision 142,496 137,307 5,189 3.8
Service charges on
deposits 27,290 23,471 3,819 16.3
Other service
charges and fees 9,075 7,920 1,155 14.6
Trust income 13,882 5,663 8,219 145.1
Broker/dealer revenue and
other commissions 15,066 8,760 6,306 72.0
Accretion of
negative goodwill 839 839 -- --
Other 8,802 6,962 1,840 26.4
Investment securities gains 935 299 636 212.7
Investment
securities losses -- (29) 29 (100.0)
Total noninterest
income 75,889 53,885 22,004 40.8
Personnel 59,040 52,834 6,206 11.7
Occupancy 8,994 8,237 757 9.2
Equipment 6,604 6,314 290 4.6
Foreclosed
property expense 275 143 132 92.3
Deposit and other insurance 810 684 126 18.4
Amortization of
intangible assets 1,442 1,214 228 18.8
Other 33,832 28,200 5,632 20.0
Losses on interest
rate swaps (1) 672 4,765 (4,093) N/A
Total noninterest
expense 111,669 102,391 9,278 9.1
Income before
income taxes 106,716 88,801 17,915 20.2
Income taxes 34,488 29,148 5,340 18.3
Net income $ 72,228 59,653 12,575 21.1
Per Share Data
Income before
non-recurring items
(1) and (2) - basic $ .35 .30 .05 15.8
Income before
non-recurring items
(1) and (2) - diluted .35 .30 .05 15.4
Net income - basic .35 .29 .06 21.2
Net income - diluted .35 .29 .06 22.4
Cash dividends per
share .13 .11 -- --
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended March 31
Ratios 2001 2000
Income before non-recurring items (1)
and (2):
Return on average assets 1.78 % 1.61
Return on average equity 22.31 19.36
Net income:
Return on average assets 1.78 1.54
Return on average equity 22.31 18.45
Net interest margin 4.03 4.08
Average equity to
average assets 7.99 8.33
As of March 31 YTD Averages
Balance Sheet
Data 2001 2000 2001 2000
Assets $16,644,278 16,002,856 16,440,462 15,619,985
Loans (all domestic)(4):
Commercial 2,674,081 2,751,019 2,659,892 2,428,360
Construction and
commercial real
estate 2,924,840 2,113,442 2,888,815 2,334,314
Mortgage 1,822,912 1,691,942 1,790,533 1,647,235
Consumer 3,497,925 3,623,209 3,523,910 3,619,477
Revolving credit 60,843 66,217 62,191 65,981
Lease financing 132,192 106,646 130,159 100,945
Total loans 11,112,793 10,352,475 11,055,500 10,196,312
Available for sale
securities 2,293,383 2,263,340 -- --
Held to maturity
securities - book
value 1,872,375 1,981,972 -- --
Total investment
securities (5) 4,165,758 4,245,312 4,221,876 4,219,000
Trading securities 77,989 31,333 64,191 29,391
Earning assets (5) 15,419,524 14,960,220 15,470,356 14,694,858
Deposits:
Demand deposits
(noninterest-
bearing) 1,591,239 1,469,802 1,333,036 1,349,937
Savings/NOW and
money market
accounts 4,613,764 4,492,644 4,455,858 4,371,963
Jumbo and brokered
CD's 1,950,014 1,944,624 2,031,289 1,970,080
Consumer time
deposits 4,183,328 3,827,115 4,171,974 3,822,019
Total deposits 12,338,345 11,734,185 11,992,157 11,513,999
Short-term borrowed
funds 958,129 1,095,536 1,178,320 1,141,492
FHLB advances 1,603,869 1,582,301 1,551,623 1,387,826
Long-term debt 39,360 39,364 39,359 39,369
Interest-bearing
liabilities 13,348,464 12,981,584 13,428,423 12,732,749
Shareholders' equity 1,329,558 1,297,275 1,312,889 1,300,659
Fair value adjustment
for FAS 115 included
in shareholders'
equity 25,259 (25,303) 19,967 (20,770)
Three Months Ended March 31
Allowance For
Loan Losses 2001 2000
Beginning balance $ 143,614 139,822
Provision for loan losses 6,380 4,283
Recoveries 2,052 1,609
Charge-offs (8,007) (5,482)
Ending balance $ 144,039 140,232
Net charge-offs to
average loans .22 % .15
NATIONAL COMMERCE BANCORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended March 31
Operating Efficiency Ratios 2001 2000
As a percentage of average assets (excluding
non-recurring items (1) and (2)):
Noninterest income 1.87 % 1.39
Personnel expense 1.46 1.36
Occupancy and equipment expense .38 .37
Other operating expense .91 .78
Noninterest expense 2.75 2.51
Net overhead (noninterest expense -
noninterest income) .88 % 1.12
Noninterest expense as a percentage of net
interest income (TE) and other income (excluding
non-recurring items (1) and (2)) 48.15 % 47.87
Share Data
Weighted average shares outstanding:
Basic 205,632,478 206,487,150
Diluted 208,544,880 208,606,669
(1) Certain swap contracts that the Corporation entered into during 2000
did not qualify for hedge accounting and were marked to market through
the income statement instead of other comprehensive gains and losses.
These swap contracts were terminated in the first quarter of 2001.
The losses on swap contracts incurred in 2000 are considered to be
non-recurring expenses.
(2) Merger and conversion expenses incurred in the fourth quarter of 2000
($22.5 million after tax) were related to the Corporation's merger
with CCB Financial Corporation. 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.
(3) NASDAQ symbol: NCBC
(4) Loan balances by category are presented in accordance with the
Corporation's internal classification system which uses the purpose of
the borrowing to determine the reporting category.
(5) 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
 back to top
Related links:
http://www.ncbccorp.com
CONTACT:
Eileen M. Sarro, 919-683-7642, or M.J.
"Jekka" Ashman, 901-523-3525, both of National Commerce
Bancorporation
|
