Parent National Commerce Financial Signs Deal with Kroger;
Adds Four Additional In-Store Branches in Savannah
MEMPHIS, Tenn., Dec. 10 /PRNewswire/ -- National Commerce Financial
Corporation (NYSE: NCF), one of the nation's best-performing financial
institutions over the past decade, will enter the metropolitan Atlanta market
via 30 full-service de novo National Bank of Commerce (NBC) branches inside
Kroger stores (NYSE: KR). NCF, a leader in in-store banking, and Kroger, the
largest grocery store chain in the United States, have an existing
relationship across several states.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010510/NCBCLOGO )
As part of an aggressive growth strategy in the Southeast, the NBC
branches will be concentrated in the 12-county area surrounding Atlanta
(Fulton, DeKalb, Cobb, Gwinnett, Forsyth, Cherokee, Douglas, Fayette, Clayton,
Henry, Rockdale and Walton counties). Company officials expect to have the
first branches open in the second quarter of 2002, and all 30 branches open
for business by the end of 2003. Consistent with its hub-and-spoke expansion
strategy, NCF also plans to add traditional branches in the region.
The two parties expect to collaborate on additional opportunities as they
become available.
In addition to the new Atlanta locations, NBC will open four in-store
branches in Savannah, also located in Kroger stores. The in-store branches
will open in the first quarter of 2002. Earlier this year, NCF announced
plans to acquire three traditional branches in Savannah from First Union, a
deal that will close in mid-February 2002.
NCF has a solid track record with de novo entries into major metropolitan
areas through in-store channels. Beginning in the late 1980s, NCF deployed its
hub-and-spoke strategy to successfully enter and grow in markets including
Nashville and Knoxville (TN), Raleigh (NC), Richmond and Roanoke (VA), and
Charleston (WV). NCF now operates more than 400 branches in nine southeastern
states, approximately half of which are located in retail stores.
"Atlanta is one of the most dynamic metropolitan areas in the world, and
we are very excited to establish a significant presence quickly," said Ernest
C. Roessler, president and chief executive officer of NCF. "The market is
competitive, and we'll have to work hard to earn our stripes. At the same
time, we've proven our ability to effectively enter new markets de novo, and
Atlanta should be no different. We believe customers will like our
convenience and ability to satisfy a broad range of needs, from checking and
savings accounts, to commercial loans and home mortgages, to investments and
insurance."
"Our expansion in Savannah is consistent with our hub-and-spoke strategy
for entering new markets," Roessler continued. NCF's highly effective and
efficient hub-and-spoke strategy incorporates traditional brick and mortar
branches operating in the vicinity of several in-store branches. "We wanted
to enhance our presence in Savannah very quickly, and our agreement with
Kroger provides us the complementary component to help ensure our success,"
concluded Roessler.
NCF entered Georgia in 1996 and currently operates 13 NBC branches in the
northern portion of the state. With the new locations, NCF will have 47
branches in Georgia, the majority of them in retail stores.
In the 1980s, NCF was the first financial institution to make in-store
banking successful on a large-scale basis. This success led to the creation
of National Commerce Bank Services, Inc., an NCF subsidiary that has counseled
retail chains and hundreds of banks on a national and international basis on
how to establish and operate successful in-store branch networks.
ABOUT NCF
National Commerce Financial Corporation has $19 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.
Press releases and investor information can be found at http://www.ncfcorp.com.
Information about National Bank of Commerce can be found at
http://www.nbcbank.com.
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:
Eileen M. Sarro, +1-919-683-7642, or M.J.A.
"Jekka" Pinckney, +1-901-523-3525, both of National Commerce
Financial Corporation
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