Also Announces 15.4% Dividend Increase
MEMPHIS, Tenn., July 18 /PRNewswire/ --
National Commerce Financial Corporation (Nasdaq: NCBC) (NCF) today announced
strong second quarter earnings.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010510/NCBCLOGO )
For the quarter ended June 30, 2001, NCF's diluted earnings per share were
$.27, compared to $.22 per share in the same quarter of 2000, prior to its
merger with CCB Financial Corporation, a 22.7 percent increase. Net income
was $55.5 million compared to $23.9 million reported for the same period a
year earlier. Cash earnings, defined as net income adjusted for goodwill and
core deposit amortization, net of tax, were $76.5 million in the second
quarter of 2001 compared to $26.5 million in the second quarter of 2000. Cash
earnings per diluted share were $.37 in second quarter 2001, compared to $.25
per share in second quarter 2000, a 48.0 percent increase.
On a cash basis, the Company's annualized return on average tangible
assets and return on average tangible shareholders' equity were 1.87 percent
and 24.80 percent, respectively, for the second quarter. These compared with
2000 second quarter returns of 1.44 percent and 19.99 percent, respectively.
"I am very pleased with our performance in the second quarter," noted
Ernest C. Roessler, president and chief executive officer of NCF. "Net
interest margin improvement of 23 basis points in the quarter and excellent
credit quality helped offset slower loan and earning asset growth. In
addition, our Financial Enterprise businesses continue to generate strong
top-line revenue growth and bottom-line profits. Finally, with the
integration from our CCB merger substantially behind us, we can now focus on
expansion opportunities, such as our recent announcements regarding the
acquisition of SouthBanc Shares, Inc. and an in-store program in South
Carolina through BI-LO."
For the six months ended June 30, 2001, NCF's diluted earnings per share
were $.52, compared to $.43 per share in the same period of 2000, a
20.9 percent increase. Net income was $107.8 million compared to
$47.9 million reported for the same period a year earlier. Cash earnings were
$150.0 million for the six months ended June 30, 2001 compared to
$52.8 million for the six months ended June 30, 2000. Cash earnings per
diluted share were $.72 for the six months ended June 30, 2001, compared to
$.48 per share for the six months ended June 30, 2000, a 50.0 percent
increase.
On a cash basis, the Company's annualized return on average tangible
assets and return on average tangible shareholders' equity were 1.85 percent
and 25.04 percent respectively, for the first six months of 2001. These
compared with 2000 returns for the same period of 1.46 percent and
20.11 percent, respectively.
Consolidated assets totaled $18.0 billion at June 30, 2001, up from
$17.8 billion at March 31, 2001. During the second quarter of 2001, NCF's
average loans and leases increased to $11.1 billion, compared to $11.0 billion
for the first quarter of 2001. Average deposits decreased slightly from
$11.9 billion in first quarter 2001 to $11.8 billion in the second quarter of
2001.
NET INTEREST EARNINGS
Net interest earnings, on a taxable equivalent basis, were $169.0 million
in the second quarter of 2001, compared to $160.2 million for the first
quarter of 2001, a 5.5 percent increase. The second quarter net interest
margin was 4.40 percent, compared to 4.17 percent for first quarter 2001 and
3.80 percent in second quarter 2000. The cost of interest-bearing liabilities
decreased from 5.14 percent in first quarter 2001 to 4.45 percent in second
quarter 2001, while the taxable equivalent yield on earning assets decreased
from 8.64 percent to 8.26 percent.
NON-INTEREST INCOME AND EXPENSE
Non-interest income (excluding securities gains and losses) totaled
$78.5 million in second quarter 2001 versus $73.2 million for first quarter
2001, an increase of 7.2 percent. Strong increases were experienced in
deposit service charges, transaction-processing fees, mortgage banking and
institutional broker/dealer revenues.
Non-interest expenses for the second quarter 2001 were $144.9 million,
compared to $137.8 million in first quarter 2001. Much of the increase is
attributable to revenue growth in the mortgage banking and institutional
broker/dealer businesses, plus costs associated with the restatement of the
Company's prior financial statements. The Company's cash efficiency ratio,
the ratio of non-interest expenses, excluding intangibles amortization, to net
revenues, was 47.67 percent for the quarter.
Financial Enterprises, comprised of NCF's transaction processing, trust
and asset management, consulting and capital markets businesses, earned net
income of $8.5 million for the second quarter of 2001 as compared to
$7.5 million for the first quarter of 2001 (an annualized increase of
53.3 percent).
PROVISION FOR LOAN LOSSES
The provision for loan losses in the second quarter of 2001 was
$6.3 million, compared to $6.4 million for first quarter 2001. Annualized net
charge-offs for the second quarter of 2001 were .17 percent of average loans,
compared to .19 percent of average loans in the year-ago quarter and
.22 percent in the first quarter of 2001.
NON-PERFORMING LOANS AND ASSETS
Total risk assets, including loans past due 90 days or more, were
$49.0 million (.44 percent of net loans) at June 30, 2001, compared to
$40.4 million at March 31, 2001, (.36 percent of net loans). Non-performing
assets amounted to $19.6 million at June 30, 2001 compared to $16.5 million at
March 31, 2001. The loan loss reserve amounts to 1.30 percent of total net
loans at June 30, 2001 and March 31, 2001.
DIVIDEND INCREASE
NCF also announced that the Board of Directors today approved the
Company's 26th consecutive annual dividend increase by declaring a quarterly
cash dividend of $.15 per share payable October 1, 2001 to shareholders of
record on September 14, 2001. The dividend represents a 15.4 percent increase
over the prior quarterly dividend of $.13 per share.
MANAGEMENT RESTRUCTURING
In other news, NCF announced that Lewis E. Holland, president of Financial
Enterprises, is retiring from the Company on July 31, 2001. Mr. Holland will
continue to provide services to the Company under a two-year consulting
arrangement and will remain on the boards of directors of First Mercantile
Trust Company and NBC Capital Markets Group. In commenting, Thomas M.
Garrott, Chairman of NCF, stated, "Lewis has made significant contributions to
the Company during his tenure. We wish him well in his retirement and look
forward to his assistance in his new role."
The Transaction Processing segment of Financial Enterprises will now
report to David T. Popwell, executive vice president. Transaction Processing
includes TransPlatinum Service Corporation, First Mercantile, USI Alliance and
the Company's Chapter 13 Bankruptcy Trustee Services. The retail banking
consulting business and trust and asset management, both of which are closely
linked to the banking segment, will now report to William R. Reed, Jr., chief
operating officer. Finally, NBC Capital Markets Group, NCF's institutional
broker/dealer, will report to Sheldon M. Fox, chief financial officer.
Ernest C. Roessler, president and chief executive officer commented, "one
of the many benefits of the National Commerce merger with CCB was the creation
of a new management team, stronger and deeper than either organization had on
its own. As a result, we are able to reassign the Financial Enterprises'
responsibilities within the existing management team. We will continue to
report the results of the Financial Enterprises group as a single unit. This
restructuring does not in any way change our strategy of growing this segment
of our business quickly and profitably, while at the same time generating
above average growth in our banking segment."
ABOUT NCF
National Commerce Financial Corporation has $18.0 billion in assets and
nearly 400 locations in nine southeastern states. NCF, headquartered in
Memphis, TN, with its operations headquarters in Durham, NC, 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.
NCF 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 NCF; and
other economic, competitive, governmental, regulatory and technological
factors affecting NCF specifically or the banking industry or economy
generally.
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
06/30/ 03/31/ 12/31/ 09/30/ 06/30/
2001 2001 2000 2000 2000
Income Statement
Loan income (TE) $242,174 249,355 258,241 253,399 97,179
Securities income (TE) 73,746 79,051 81,206 79,649 46,695
Other interest income (TE) 974 1,855 1,504 3,864 2,854
Total interest
income (TE) 316,894 330,261 340,951 336,912 146,728
Savings/NOW and money
market expense 29,164 35,791 38,193 37,568 12,180
Jumbo and brokered CD
expense 21,994 29,685 34,250 33,236 22,763
Consumer time deposit
expense 62,849 64,683 63,706 61,224 14,800
Interest expense on
deposits 114,007 130,159 136,149 132,028 49,743
Short-term borrowed funds
expense 9,578 15,831 17,849 21,934 17,427
FHLB advances expense 23,688 23,416 27,586 25,643 12,635
Long-term debt expense 646 642 648 648 92
Total interest expense 147,919 170,048 182,232 180,253 79,897
Net interest income (TE) 168,975 160,213 158,719 156,659 66,831
Taxable equivalent
adjustment 6,874 7,170 6,878 7,822 4,337
Net interest income 162,101 153,043 151,841 148,837 62,494
Provision for loan losses 6,304 6,380 5,317 5,098 3,864
Net interest income after
provision 155,797 146,663 146,524 143,739 58,630
Service charges on deposits 30,460 27,290 26,063 26,640 8,522
Other service charges
and fees 9,064 8,736 9,823 9,247 5,837
Trust income 13,382 13,882 13,977 14,275 2,361
Broker/dealer revenue and
other commissions 16,202 15,066 10,751 9,649 3,677
Other 9,435 8,183 8,773 7,402 4,042
Investment securities
gains (losses) 575 720 (141) 4,522 127
Total noninterest income 79,118 73,877 69,246 71,735 24,566
Personnel 62,447 59,900 60,626 57,241 21,363
Occupancy 9,159 9,322 9,661 10,119 3,900
Equipment 6,135 5,835 7,263 6,464 1,874
Goodwill amortization 12,046 12,074 12,060 11,941 1,527
Core deposit amortization 14,622 15,042 15,461 15,881 1,722
Other 40,515 34,974 38,667 36,175 14,758
Losses on interest rate
swaps (a) -- 672 57,221 12,324 2,917
Conversion/merger expenses (b) -- -- 25,892 44,765 --
Total noninterest
expense 144,924 137,819 226,851 194,910 48,061
Income before income taxes 89,991 82,721 (11,081) 20,564 35,135
Income taxes 34,456 30,431 (2,669) 14,775 11,194
GAAP net income 55,535 52,290 (8,412) 5,789 23,941
Amortization of goodwill
and core deposit,
net of tax 20,965 21,250 21,491 21,628 2,577
Cash net income (c) $ 76,500 73,540 13,079 27,417 26,518
GAAP Earnings Per Share
and Ratios
GAAP earnings before
non-recurring items (a) (b):
Basic earnings per share $ .27 .25 .22 .23 .24
Diluted earnings
per share .27 .25 .22 .23 .23
Return on average
tangible assets (c) 1.36 % 1.30 1.10 1.21 1.39
Return on average
tangible equity (c) 18.00 17.99 15.49 16.97 19.41
GAAP net income:
Basic earnings per share $ .27 .25 (.04) .03 .22
Diluted earnings
per share .27 .25 (.04) .03 .22
Return on average
tangible assets (c) 1.36 % 1.30 (.20) .15 1.30
Return on average
tangible equity (c) 18.00 17.99 (2.89) 2.04 18.05
Return on average assets 1.27 1.21 (.19) .13 1.27
Return on average equity 9.19 8.87 (1.39) .98 14.22
Net interest margin 4.40 4.17 4.12 4.20 3.80
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Cash Earnings Per Share and Ratios 06/30/2001 03/31/2001 12/31/2000
Cash earnings before non-recurring
items (a) (b) (c):
Basic earnings per share $.37 .36 .32
Diluted earnings per share .37 .35 .32
Return on average tangible assets (c) 1.87 % 1.82 1.62
Return on average tangible equity (c) 24.80 25.29 22.86
Cash net income (c):
Basic earnings per share $.37 .36 .06
Diluted earnings per share .37 .35 .06
Return on average tangible assets (c) 1.87 % 1.82 .32
Return on average tangible equity (c) 24.80 25.29 4.49
Average tangible equity to average
tangible assets (c) 7.54 7.20 7.10
Cash Efficiency Ratios
As a percentage of average tangible
assets (c) (excluding non-recurring
items (a) (b) and amortization
of intangibles):
Noninterest income 1.93 % 1.83 1.69
Personnel expense 1.53 1.48 1.48
Occupancy and equipment expense .37 .38 .41
Other operating expense .99 .88 .94
Noninterest expense 2.89 2.74 2.83
Net overhead (noninterest exp.
- noninterest inc.) .96 % .91 1.14
Noninterest expense as a percentage
of net interest income (TE) and
other income (excluding non-recurring
items (a) (b) and amortization
of intangibles) 47.67 % 47.29 50.98
Average Balances
Assets $17,604,925 17,581,548 17,568,713
Tangible assets (c) 16,419,104 16,368,869 16,328,607
Loans (all domestic) (d):
Commercial 2,689,381 2,656,499 2,526,980
Construction and commercial
real estate 2,950,444 2,889,249 2,849,480
Mortgage 1,814,964 1,785,875 1,791,150
Consumer 3,493,513 3,509,229 3,559,848
Revolving credit 61,235 62,211 68,753
Lease financing 133,351 130,244 128,881
Total loans 11,142,888 11,033,307 10,925,092
Investment securities (e) 4,090,134 4,204,465 4,326,002
Earning assets (e) 15,371,113 15,430,752 15,391,415
Goodwill 918,208 930,169 942,307
Core deposit premium 267,613 282,510 297,799
Deposits:
Demand deposits (noninterest-
bearing) 1,417,129 1,284,045 1,394,011
Savings/NOW and money market
accounts 4,525,169 4,455,858 4,343,972
Jumbo and brokered CD's 1,696,004 2,031,238 2,158,017
Consumer time deposits 4,196,083 4,170,022 3,951,793
Total deposits 11,834,385 11,941,163 11,847,793
Short-term borrowed funds 984,703 1,179,763 1,158,326
FHLB advances 1,878,033 1,544,128 1,716,218
Long-term debt 39,379 39,380 39,385
Interest-bearing liabilities 13,319,371 13,420,389 13,367,711
Stockholders' equity 2,423,250 2,391,764 2,399,718
Tangible stockholders' equity (c) 1,237,429 1,179,085 1,159,612
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Cash Earnings Per Share and Ratios 09/30/2000 06/30/2000
Cash earnings before non-recurring
items (a) (b) (c):
Basic earnings per share .34 .26
Diluted earnings per share .34 .25
Return on average tangible assets (c) 1.75 1.53
Return on average tangible equity (c) 24.59 21.36
Cash net income (c):
Basic earnings per share .13 .24
Diluted earnings per share .13 .24
Return on average tangible assets (c) .69 1.44
Return on average tangible equity (c) 9.67 19.99
Average tangible equity to average
tangible assets (c) 7.11 7.18
Cash Efficiency Ratios
As a percentage of average tangible
assets (c) (excluding non-recurring items
(a) (b) and amortization of intangibles):
Noninterest income 1.80 1.33
Personnel expense 1.44 1.16
Occupancy and equipment expense .42 .31
Other operating expense .91 .80
Noninterest expense 2.77 2.27
Net overhead (noninterest exp.
- noninterest inc.) .97 .94
Noninterest expense as a percentage
of net interest income (TE) and other
income (excluding non-recurring items
(a) (b) and amortization of intangibles) 48.16 45.84
Average Balances
Assets 17,078,326 7,569,046
Tangible assets (c) 15,866,263 7,425,507
Loans (all domestic) (d):
Commercial 2,491,256 1,087,555
Construction and commercial real
estate 2,527,587 304,631
Mortgage 1,729,083 568,487
Consumer 3,532,893 2,221,996
Revolving credit 67,889 8,042
Lease financing 120,352 33,360
Total loans 10,469,060 4,224,071
Investment securities (e) 4,155,934 2,591,909
Earning assets (e) 14,898,896 7,034,711
Goodwill 911,137 115,416
Core deposit premium 300,926 28,123
Deposits:
Demand deposits (noninterest-bearing) 1,282,276 512,678
Savings/NOW and money market accounts 4,195,504 1,622,920
Jumbo and brokered CD's 2,078,178 1,524,515
Consumer time deposits 3,736,116 1,075,539
Total deposits 11,292,074 4,735,652
Short-term borrowed funds 1,411,844 1,158,699
FHLB advances 1,532,451 852,073
Long-term debt 43,419 6,381
Interest-bearing liabilities 12,997,512 6,240,127
Stockholders' equity 2,340,383 676,983
Tangible stockholders' equity (c) 1,128,320 533,444
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
As Of And For The Three Months Ended
Allowance For Loan Losses 06/30/2001 03/31/2001 12/31/2000
Beginning balance $144,039 143,614 143,510
Provision for loan losses 6,304 6,380 5,317
Additions from acquired institutions -- -- --
Recoveries 1,671 2,052 1,321
Charge-offs (6,355) (8,007) (6,534)
Ending balance $145,659 144,039 143,614
Net charge-offs by loan type:
Commercial $ 519 743 432
Construction and commercial
real estate 30 29 23
Secured by real estate 21 452 631
Consumer 3,556 4,545 3,485
Revolving credit 354 89 634
Lease financing 204 97 8
Total net charge-offs $ 4,684 5,955 5,213
Non-Performing and Risk Assets
Nonaccrual loans $ 11,780 10,977 7,219
Foreclosed real estate 7,787 5,512 5,652
Total nonperforming assets 19,567 16,489 12,871
Restructured loans -- 2,224 2,232
Ninety days past due and accruing 29,397 21,682 26,362
Total risk assets $ 48,964 40,395 41,465
Asset Quality Ratios
Total risk assets to:
Net loans .44 % .36 .38
Total assets .27 .23 .23
Loan loss allowance to total risk
assets 2.97 x 3.57 3.46
Net charge-offs to average loans
(annualized) .17 % .22 .19
Loan loss allowance to total loans 1.30 1.30 1.30
Share and Per Share Data
Common shares outstanding 204,359,873 205,487,104 205,246,098
Weighted average shares outstanding:
Basic 205,433,029 205,632,478 205,334,106
Diluted 207,891,271 208,544,880 207,800,709
Cash dividends $ .13 .13 .13
Book value 11.68 11.66 11.52
Closing stock price (f) 24.37 24.81 24.75
High stock price for the quarter 25.55 27.44 25.19
Low stock price for the quarter 22.15 21.56 17.65
Other Period-End Information
Number of offices 379 377 378
Intangible assets:
Goodwill $910,421 922,481 934,467
Deposit base premium 258,042 273,665 287,707
Mortgage servicing rights 6,590 7,139 7,688
Cash dividends 26,706 26,774 26,689
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
As Of And For The Three Months Ended
Allowance For Loan Losses 09/30/2000 06/30/2000
Beginning balance 62,061 59,089
Provision for loan losses 5,098 3,864
Additions from acquired institutions 81,097 1,131
Recoveries 1,847 973
Charge-offs (6,593) (2,996)
Ending balance 143,510 62,061
Net charge-offs by loan type:
Commercial 781 176
Construction and commercial real estate 12 (2)
Secured by real estate 675 664
Consumer 2,894 1,305
Revolving credit 421 (86)
Lease financing (37) (34)
Total net charge-offs 4,746 2,023
Non-Performing and Risk Assets
Nonaccrual loans 26,432 1,377
Foreclosed real estate 3,219 1,309
Total nonperforming assets 29,651 2,686
Restructured loans 2,235 --
Ninety days past due and accruing 7,949 6,142
Total risk assets 39,835 8,828
Asset Quality Ratios
Total risk assets to:
Net loans .37 .21
Total assets .23 .12
Loan loss allowance to total risk assets 3.60 7.03
Net charge-offs to average loans (annualized) .18 .19
Loan loss allowance to total loans 1.32 1.45
Share and Per Share Data
Common shares outstanding 205,186,627 109,310,376
Weighted average shares outstanding:
Basic 205,458,341 109,425,250
Diluted 207,268,076 111,151,129
Cash dividends .13 .11
Book value 11.64 6.33
Closing stock price (f) 19.94 16.06
High stock price for the quarter 20.13 19.94
Low stock price for the quarter 15.25 16.06
Other Period-End Information
Number of offices 380 165
Intangible assets:
Goodwill 946,527 116,077
Deposit base premium 303,168 27,498
Mortgage servicing rights 8,237 --
Cash dividends 26,728 11,459
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Six Months Ended Increase
June 30 (Decrease)
Income Statement 2001 2000 Amount %
Loan income (TE) $491,529 186,974 304,555 162.9
Securities income (TE) 152,797 91,330 61,467 67.3
Other interest income (TE) 2,829 5,122 (2,293) (44.8)
Total interest income (TE) 647,155 283,426 363,729 128.3
Savings/NOW and money market expense 64,955 24,470 40,485 165.4
Jumbo and brokered CD expense 51,679 44,262 7,417 16.8
Consumer time deposit expense 127,532 27,524 100,008 363.3
Interest expense on deposits 244,166 96,256 147,910 153.7
Short-term borrowed funds expense 25,409 29,794 (4,385) (14.7)
FHLB advances expense 47,104 24,684 22,420 90.8
Long-term debt expense 1,288 184 1,104 600.0
Total interest expense 317,967 150,918 167,049 110.7
Net interest income (TE) 329,188 132,508 196,680 148.4
Taxable equivalent adjustment 14,044 8,613 5,431 63.1
Net interest income 315,144 123,895 191,249 154.4
Provision for loan losses 12,684 6,041 6,643 110.0
Net interest income after provision 302,460 117,854 184,606 156.6
Service charges on deposits 57,750 16,063 41,687 259.5
Other service charges and fees 17,800 10,849 6,951 64.1
Trust income 27,264 4,712 22,552 478.6
Broker/dealer revenue and other
commissions 31,268 8,416 22,852 271.5
Other 17,618 8,342 9,276 111.2
Investment securities gains (losses) 1,295 128 1,167 911.7
Total noninterest income 152,995 48,510 104,485 215.4
Personnel 122,347 42,268 80,079 189.5
Occupancy 18,481 7,471 11,010 147.4
Equipment 11,970 3,640 8,330 228.8
Goodwill amortization 24,120 2,883 21,237 736.6
Core deposit amortization 29,664 3,194 26,470 828.7
Other 75,489 28,799 46,690 162.1
Losses on interest rate swaps (a) 672 7,682 (7,010) (91.3)
Total noninterest expense 282,743 95,937 186,806 194.7
Income before income taxes 172,712 70,427 102,285 145.2
Income taxes 64,887 22,494 42,393 188.5
GAAP net income 107,825 47,933 59,892 124.9
Amortization of goodwill and core
deposit, net of tax 42,215 4,831 37,384 773.8
Cash net income $150,040 52,764 97,276 184.4
GAAP Earnings Per Share and Ratios
GAAP earnings before non-recurring
items (a):
Basic earnings per share $ .52 .48 .04 8.4
Diluted earnings per share .52 .48 .04 8.5
Return on average tangible
assets (c) 1.33 % 1.45 -- --
Return on average tangible
equity (c) 17.99 20.08 -- --
GAAP net income:
Basic earnings per share $ .52 .44 .08 18.1
Diluted earnings per share .52 .43 .09 19.8
Return on average tangible
assets (c) 1.33 % 1.32 -- --
Return on average tangible
equity (c) 17.99 18.27 -- --
Return on average assets 1.24 1.30 -- --
Return on average equity 9.03 14.51 -- --
Net interest margin 4.28 3.86 -- --
Cash dividends per share $ .26 .22 .04 18.2
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Cash Earnings Per Share and Ratios
Six Months Ended June 30 Increase (Decrease)
2001 2000 Amount %
Cash earnings before
non-recurring items (a) (c):
Basic earnings per share $.73 .53 .20 38.1
Diluted earnings per share .72 .52 .20 38.3
Return on average
tangible assets (c) 1.85 % 1.59 -- --
Return on average
tangible equity (c) 25.04 21.92 -- --
Cash net income (c):
Basic earnings per share $.73 .48 .25 50.6
Diluted earnings per share .72 .48 .24 50.8
Return on average
tangible assets (c) 1.85 % 1.46 -- --
Return on average
tangible equity (c) 25.04 20.11 -- --
Average tangible equity
to average tangible
assets (c) 7.37 7.24 -- --
As of June 30 YTD Averages
Balance Sheet Data 2001 2000 2001 2000
Assets $17,952,690 7,519,107 17,593,301 7,425,956
Tangible assets (c) 16,784,227 7,375,532 16,394,125 7,289,144
Loans (all domestic) (d):
Commercial 2,723,558 1,091,380 2,673,030 1,065,077
Construction and
commercial real estate 2,979,178 301,950 2,920,016 297,160
Mortgage 1,832,590 601,183 1,800,500 496,412
Consumer 3,503,130 2,229,694 3,501,327 2,223,453
Revolving credit 61,194 8,206 61,721 7,263
Lease financing 136,596 33,643 131,806 32,268
Total loans 11,236,246 4,266,056 11,088,400 4,121,633
Available for sale
securities 2,501,885 656,163 -- --
Held to maturity
securities - book value 1,645,528 1,926,151 -- --
Total investment
securities (e) 4,147,413 2,582,314 4,146,983 2,553,685
Trading securities 59,746 37,660 62,147 32,489
Earning assets (e) 15,604,363 6,929,049 15,400,768 6,876,261
Goodwill 910,421 116,077 924,156 109,865
Core deposit premium 258,042 27,498 275,020 26,947
Deposits:
Demand deposits
(noninterest-bearing) 1,518,771 508,652 1,350,954 518,806
Savings/NOW and money
market accounts 4,566,990 1,587,192 4,490,705 1,637,797
Jumbo and brokered CD's 1,692,260 1,545,544 1,862,695 1,528,091
Consumer time deposits 4,206,756 1,099,647 4,183,125 1,024,447
Total deposits 11,984,777 4,741,035 11,887,479 4,709,141
Short-term borrowed funds 1,116,482 1,175,663 1,081,694 1,033,166
FHLB advances 1,950,869 754,927 1,712,002 866,751
Long-term debt 39,376 6,379 39,379 6,481
Interest-bearing
liabilities 13,572,732 6,169,352 13,369,600 6,096,733
Stockholders' equity 2,385,098 691,958 2,407,594 664,535
Fair value adjustment
for FAS 115 included in
stockholders' equity 22,761 (7,434) 25,334 (7,046)
Tangible stockholders'
equity (c) 1,216,635 548,383 1,208,418 527,723
Six Months Ended June 30
Allowance For
Loan Losses 2001 2000
Beginning balance $143,614 59,597
Provision for loan losses 12,684 6,041
Addition from acquired
institutions -- 1,131
Recoveries 3,723 1,848
Charge-offs (14,362) (6,556)
Ending balance $145,659 62,061
Net charge-offs to
average loans (annualized) .19 % .23
NATIONAL COMMERCE FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Six Months Ended June 30
Cash Efficiency Ratios 2001 2000
As a percentage of average tangible
assets (c) (excluding non-recurring items
(a) and amortization of intangibles):
Noninterest income 1.88 % 1.34
Personnel expense 1.50 1.17
Occupancy and equipment expense .37 .31
Other operating expense .94 .79
Noninterest expense 2.81 2.27
Net overhead (noninterest expense
- noninterest income) .93 % .93
Noninterest expense as a percentage
of net interest income (TE) and other
income (excluding non-recurring items (a)
and amortization of intangibles) 47.48 % 45.40
Share Data
Weighted average shares outstanding:
Basic 205,532,202 108,851,037
Diluted 208,218,076 110,443,865
(a) 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.
(b) Merger and conversion expenses incurred in the third and fourth
quarters of 2000 ($34.7 million and $15.8 million, respectively,
after-tax) were related to the Corporation's merger with CCB
Financial Corporation.
(c) The Corporation defines cash net income as GAAP net income adjusted
for the after-tax impact of goodwill and core deposit amortization.
Average tangible assets and equity for the periods are determined as
average total assets or stockholders' equity, respectively, less
average unamortized goodwill and core deposit premium.
(d) 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.
(e) Average balances exclude the mark to market adjustment for Statement
of Accounting Standards No. 115.
(f) NASDAQ symbol: NCBC
NATIONAL COMMERCE FINANCIAL CORPORATION
Average Balances and Net Interest Income Analysis
Three Months Ended June 30, 2001 and 2000
(Taxable Equivalent Basis-In Thousands) (a)
2001 2000
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
Earning assets:
Loans (b) $11,142,888 242,174 8.71 % 4,224,071 97,179 9.24
U.S. Treasury
and agency
obligations (c) 2,893,493 52,086 7.21 1,772,174 30,361 6.85
States and
political
subdivision
obligations 168,315 2,802 6.68 126,701 2,582 7.94
Other securities 1,028,326 18,059 7.03 693,034 13,220 7.63
Trading securities 60,125 799 5.31 35,586 532 5.98
Federal funds sold
and other
short-term
investments 52,800 657 4.99 170,119 2,827 6.68
Time deposits
in other banks 25,166 317 5.04 13,026 27 .86
Total earning
assets (c) 15,371,113 316,894 8.26 7,034,711 146,728 8.37
Non-earning assets:
Cash and due
from banks 401,156 181,541
Premises and
equipment 202,822 51,290
Goodwill 918,208 115,416
Core deposit premium 267,613 28,123
All other
assets, net 444,013 157,965
Total assets $17,604,925 7,569,046
Interest-bearing liabilities:
Savings and time
deposits $10,417,256 114,007 4.39 % 4,222,974 49,743 4.74
Short-term
borrowed funds 984,703 9,578 4.07 1,158,699 17,427 5.82
FHLB advances 1,878,033 23,688 5.06 852,073 12,635 5.96
Long-term debt 39,379 646 6.58 6,381 92 5.76
Total interest-
bearing
liabilities 13,319,371 147,919 4.45 6,240,127 79,897 5.15
Other liabilities and stockholders' equity:
Demand deposits 1,417,129 512,678
Other liabilities 402,538 89,347
Capital trust
pass-through
securities 42,637 49,911
Stockholders'
equity 2,423,250 676,983
Total liabilities
and stockholders'
equity $17,604,925 7,569,046
Net interest income
and net interest
margin (d) $168,975 4.40 % 66,831 3.80
Interest rate spread (e) 3.81 % 3.22
(a) The taxable equivalent basis is computed using 35% federal and
applicable state tax rates in 2001 and 2000.
(b) The average loan balances include non-accruing loans. Loan fees of
$5,585,000 and $2,832,000 for 2001 and 2000, respectively, are
included in interest income.
(c) The average balances for debt and equity securities exclude the effect
of their mark-to-market adjustment, if any.
(d) Net interest margin is computed by dividing net interest income by
total earning assets.
(e) Interest rate spread equals the earning asset yield minus the
interest-bearing liability rate.
NATIONAL COMMERCE FINANCIAL CORPORATION
Average Balances and Net Interest Income Analysis
Six Months Ended June 30, 2001 and 2000
(Taxable Equivalent Basis-In Thousands) (a)
2001 2000
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
Earning assets:
Loans (b) $11,088,400 491,529 8.93 % 4,121,633 186,974 9.12
U.S. Treasury and
agency
obligations (c) 2,891,993 106,387 7.21 1,727,589 58,852 6.85
States and
political
subdivision
obligations 175,682 5,812 6.68 128,584 5,212 7.94
Equity securities
and other
securities (c) 1,079,308 38,878 7.20 697,512 26,250 7.53
Trading account
securities 62,147 1,720 5.53 32,489 1,016 6.25
Federal funds sold
and other short-term
investments 76,562 2,118 5.58 156,839 4,995 6.40
Time deposits
in other banks 26,676 711 5.37 11,615 127 2.21
Total earning
assets 15,400,768 647,155 8.45 6,876,261 283,426 8.27
Non-earning assets:
Cash and due
from banks 373,937 189,451
Premises and
equipment 204,180 49,468
Goodwill 924,156 109,865
Core deposit premium 275,020 26,947
All other
assets, net 15,816,008 7,050,225
Total assets $17,593,301 7,425,956
Interest-bearing liabilities:
Savings and time
deposits $10,536,525 244,166 4.67 % 4,190,335 96,256 4.62
Short-term
borrowed funds 1,081,694 25,409 4.89 1,033,166 29,794 5.82
FHLB advances 1,712,002 47,104 5.55 866,751 24,684 5.73
Long-term debt 39,379 1,288 6.57 6,481 184 5.76
Total interest-
bearing
liabilities 13,369,600 317,967 4.80 6,096,733 150,918 4.98
Other liabilities and stockholders' equity:
Demand deposits 1,350,954 518,806
Other liabilities 418,933 95,971
Capital trust
pass-through
securities 46,220 49,911
Stockholders'
equity 2,407,594 664,535
Total liabilities
and stockholders'
equity $17,593,301 7,425,956
Net interest income
and net
interest
margin (d) $329,188 4.28 % 132,508 3.86
Interest rate spread (e) 3.65 % 3.29
(a) The taxable equivalent basis is computed using 35% federal and
applicable state tax rates in 2001 and 2000.
(b) The average loan balances include non-accruing loans. Loan fees of
$10,758,000 and $5,390,000 for 2001 and 2000, respectively, are
included in interest income.
(c) The average balances for debt and equity securities exclude the effect
of their mark-to-market adjustment, if any.
(d) Net interest margin is computed by dividing net interest income by
total earning assets.
(e) Interest rate spread equals the earning asset yield minus the
interest-bearing liability rate.
SOURCE National Commerce Financial Corporation
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Related links:
http://www.ncfcorp.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20010510/NCBCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Eileen M. Sarro, +1-919-683-7642, or M.J.
"Jekka" Pinckney, +1-901-523-3525, both of National Commerce
Financial Corporation
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