MEMPHIS, Tenn., Oct. 8 /PRNewswire-FirstCall/ -- Continuing its rapid
expansion in the high-growth metro Atlanta area, National Commerce Financial
(NYSE: NCF) announced today that it has agreed to purchase 15 traditional or
"hub" branches from Wachovia (NYSE: WB) and to assume Wachovia's lease
obligation for seven additional branches. These branches complement the
company's existing and planned in-store, or "spoke" branches, and will give
National Bank of Commerce (NBC), the company's banking subsidiary, the fifth
largest branch presence within the metro area. Under the terms of the
agreement, NCF cannot disclose the branch locations.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010510/NCBCLOGO )
Rank Bank # of Branches
1 BankAmerica 185
2 Wachovia 170
3 SunTrust 149
4 SouthTrust 69
5* National Bank of Commerce 61
6 Regions 57
* Includes 18 Kroger in-store branches planned for 2003
Source: JP Morgan
"We're obviously thrilled to have developed such a large presence of prime
locations in such a short time," said Cliff Davis, NBC Atlanta region
president. "Atlanta's response to the convenience and service of our in-store
banking model has been tremendous. We have a strong alliance with Kroger, who
leads all Atlanta grocers with a 35% market share, and now we are adding
premier hub locations which would have taken any bank years to locate and
develop. Our customers will now have even greater convenience through an
expanded ATM network and access to our investment and business capabilities."
NCF has a long and successful track record with de novo entries, using its
unique hub-and-spoke strategy, into high growth metropolitan areas. Target
areas have above average household income, household income growth, and
population growth, in addition to a diverse and growing business environment.
The Atlanta metropolitan area exceeds NCF's high growth footprint in each of
these demographic measures.
2001 - 2006 Projected Growth
Average Average
Household Household
Income Income Population
Atlanta $76,491 24.9% 25.9%
NCF Market Average* $64,540 23.3% 24.3%
U.S. Average $61,904 20.7% 21.5%
* Includes Atlanta
Source: JP Morgan
"Atlanta is home to over 4.2 million households, representing nearly $60
billion in deposits. Our goal is to obtain five percent market share within
five years," said William R. Reed, Jr., chief operating officer. "In
Richmond, one of our most recent de novo experiences, we achieved over five
percent market share within five years prior to having full investment and
business capabilities. In only five months, we have now organized a full
service bank in the heart of Atlanta with no culture, product, or systems
integration required. We can now more quickly introduce our full set of
investment and business products which should enhance profitability and
expedite growth."
In April 2002, NBC launched its first Atlanta branch as part of an
agreement to open 30 in-store locations inside select Kroger stores by the end
of 2003. Since then, NBC has opened 13 in-store branches and a free-stranding
branch, which serves as NBC's regional headquarters. By the end of 2003, NBC
is projected to have 61 branches in the Atlanta metro region, including 30 in-
store Kroger branches, 23 traditional branches, and eight Wal-Mart branches.
About National Commerce Financial
National Commerce Financial Corporation is a diversified financial
services company with $21 billion in assets. 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, operating in 14 of the nation's
fastest growing metropolitan areas, and non-banking affiliates.
Through its bank brands -- National Bank of Commerce, Central Carolina
Bank and First Market Bank -- NCF operates approximately 470 branches in North
and South Carolina, Tennessee, Georgia, Virginia, West Virginia, Arkansas and
Mississippi.
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.
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:
media, Eileen M. Sarro, +1-919-683-7642, or
investors, M.J.A. "Jekka" Pinckney, +1-901-523-3525, both of
National Commerce Financial Corporation
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