UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
JUNE 30, 1995
Date of Report (Date of earliest reported event)
FIRST COMMERCIAL CORPORATION
(Exact name of registrant as specified in its charter)
ARKANSAS 0 - 9676 71-0540166
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) file number) Identification Number)
400 WEST CAPITOL AVENUE, LITTLE ROCK, ARKANSAS 72201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (501)371-7000
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Item 5. OTHER EVENTS
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Registrant issued a press release announcing that First Commercial Mortgage
Company, a subsidiary of the Registrant, had executed a purchase and sale
agreement to acquire servicing rights and other assets from the former National
Home Mortgage Company (NHMC) located in San Diego, California. The sale of
NHMC servicing was conducted by the Resolution Trust Corporation (RTC), who had
assumed ownership of NHMC two years ago.
Under terms of the agreement, First Commercial Mortgage Company will
acquire approximately $5 billion in loan servicing rights and certain other
assets from the RTC, represented by over 60,000 mortgages held on properties
throughout the United States.
This acquisition represents the largest servicing acquisition in First
Commercial Mortgage Company's history and will be a significant event in the
history of First Commercial Corporation. After completion of the acquisition,
the transaction will bring First Commercial Mortgage Company's total servicing
portfolio to over $8.5 billion and 140,000 loans.
The transaction is expected to close the latter part of August. Management
of the Registrant has noted that the acquisition will not have a material
impact on earnings per share in 1995. Projected earnings impact beyond 1995
has not been finalized.
This marks First Commercial Mortgage Company's third servicing acquisition
in 1995. Earlier in the year it acquired $200 million in servicing rights and
a mortgage origination office in Tulsa, Oklahoma. First Commercial Mortgage
Company is also under a letter of intent to acquire $300 million in servicing
rights in Florida.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits
99 Press Release
2
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Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST COMMERCIAL CORPORATION
/s/ J. Lynn Wright
By: -------------------------------
J. Lynn Wright
Chief Financial Officer
Date: July 6, 1995
3
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Index to Exhibits
Exhibit Number Exhibit
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99 Press Release
4
NEWS RELEASE
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First Commercial Corporation
200 First Commercial Building
Little Rock, Arkansas 72203
For additional information contact:
Lynn Wright
Chief Financial Officer
(501)371-7142
NASDAQ Symbol "FCLR"
In Newspaper Stock Tables Generally "FTCmmcl" or "FstCommclCp"
Price as of June 30, 1995: Bid $25 1/4 Ask $25 1/2
FOR IMMEDIATE RELEASE
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FIRST COMMERCIAL MORTGAGE ACQUIRES $5 BILLION IN SERVICING RIGHTS
FROM RESOLUTION TRUST CORPORATION
LITTLE ROCK, AR (June 30, 1995) - William Roehrenbeck, chairman and chief
executive officer of Little Rock-based First Commercial Mortgage Company
(FCMC), a wholly owned subsidiary of First Commercial Bank, Little Rock,
announced today that FCMC has executed a purchase and sale agreement to
acquire servicing rights and other assets from the former National Home
Mortgage Company (NHMC) located in San Diego, California. The sale of NHMC
servicing was conducted by the Resolution Trust Corporation (RTC), who had
assumed ownership of NHMC two years ago.
Under terms of the agreement, FCMC will acquire approximately $5 billion
in loan servicing rights and certain other assets from the RTC, represented by
over 60,000 mortgages held on properties throughout the United States.
(MORE)
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FIRST COMMERCIAL CORPORATION
Page two of three
"We view this as a strategic opportunity that comes along once in a
lifetime," noted Jack Fleischauer, Jr., president and chief executive officer
of First Commercial Bank. "We have always been an active player in the
mortgage servicing arena, but rarely does such an attractive package come
along. At a time when our community is being negatively impacted by
consolidations in the banking industry, First Commercial's acquisition program
is creating opportunities for the people of Central Arkansas."
Mr. Roehrenbeck added that this represents the largest servicing
acquisition in FCMC's history. "This is a significant event in the history of
our Company. Once completed, this transaction will bring FCMC's total
servicing portfolio to over $8.5 billion and 140,000 loans. When we decided
years ago to move in this strategic direction, I don't think any of us
realized just how much potential there would be in the mortgage servicing
business. Our leadership has shown considerable vision over the years in
aggressively pursuing this line of business. We are now reaping the rewards
of having a first class mortgage servicing operation in Central Arkansas that
is recognized nationally for its people, professionalism and growth."
The transaction is expected to close the latter part of August. Bank
officials noted that the acquisition will not have a material impact on
earnings per share in 1995. Projected earnings impact beyond 1995 has not
been finalized.
(MORE)
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FIRST COMMERCIAL CORPORATION
Page three of three
This marks FCMC's third servicing acquisition in 1995. Earlier in the
year it acquired $200 million in servicing rights and a mortgage origination
office in Tulsa, Oklahoma. FCMC is also under a letter of intent to acquire
$300 million in servicing rights in Florida.
Mortgage servicing is generally defined as the administration of a
mortgage loan and includes collecting monthly payments and penalties on late
payments, keeping track of the amount of principal and interest that has been
paid at any particular time, acting as escrow agent for funds to cover taxes
and insurance, and, if necessary, curing defaults.
First Commerical Mortgage Company offers mortgage financing in Arkansas,
Tennessee, Mississippi, Oklahoma and Texas, and conducts mortgage servicing on
a nationwide basis. It is a wholly owned subsidiary of First Commercial Bank,
N.A., the largest bank within the First Commercial Corporation family of
community banks.
