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
DATE OF REPORT (Date of earliest event reported): September 16, 1996
FIRST COMMERCE CORPORATION
(Exact name of registrant as specified in its charter)
LOUISIANA 0-7931 72-0701203
(State of incorporation) (Commission File Number) (IRS Employer
Identification Number)
210 BARONNE ST., NEW ORLEANS, LOUISIANA 70112
(Address of principal executive offices - Zip Code)
Registrant's telephone number, including area code: (504) 561-1371
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
On September 16, 1996, First Commerce Corporation issued the
following press relesase:
SEPTEMBER 16, 1996
CONTACTS: MICHAEL A. FLICK (504) 561-1492
HOLLY E. HOBSON (504) 623-2917
FIRST COMMERCE ANNOUNCES EARNINGS ESTIMATE FOR THIRD QUARTER
New Orleans - First Commerce Corporation (NASDAQ-FCOM) announced today
that its provision for loan losses is expected to increase from the second
quarter's $7.5 million to approximately $12 - 14 million in the third quarter.
Increasing credit card net charge-offs this quarter are leading to the higher
provision for loan losses. The provision will be greater than net charge-offs
this quarter by an estimated $4 - 6 million.
Net charge-offs were $6.7 million, or .51% of total loans, in the
second quarter and are expected to approximate $8 million in the third
quarter. Credit card net charge-offs are increasing in the third quarter to
approximately $5.5 million, from $4.9 million, or 3.08% of credit card loans,
in the second quarter. First Commerce's credit card quality continues to be
significantly stronger than national averages, even while following the recent
national trend with a higher level of charge-offs. Commercial asset quality
remains excellent, with net recoveries again this quarter. Consumer loan net
charge-offs are expected to increase this quarter from $2.1 million, or .51%,
in the second quarter to approximately $3.0 million in the third quarter.
Nonperforming assets are anticipated to decline slightly from $33.4 million as
of June 30, 1996.
Revenue and operating expense trends remain strong in the third
quarter, including:
* Loan growth continues in the third quarter at an annualized rate of more
than 20%, with the most significant increases in indirect automobile,
credit cards and commercial.
* Net interest income growth for the third quarter from the second quarter
is expected to be at a 10% annualized rate. This improvement continues to
be driven by loan growth.
* Anticipated noninterest income growth of 12%, annualized, from the second
quarter to the third quarter is led by higher credit card fees which are
growing at a 35% annualized rate in 1996. Trust fees, ATM fees, and
broker/dealer revenue are also contributing to the improvement in
noninterest income over 1995, expected to approximate 15%.
* For the year, operating expense growth of less than 4% is anticipated.
First Commerce expects to report fully diluted earnings per share of
approximately $.71 to $.73 for the third quarter. Earnings per share were
$.76 in 1996's second quarter and $.66 in 1995's third quarter. Return on
equity and return on assets are expected to be approximately 16% and 1.35%,
respectively. Complete financial results for the third quarter are scheduled
for release on October 11, 1996.
First Commerce Corporation is a New Orleans-based bank holding company
operating six Louisiana banks in Alexandria, Baton Rouge, Lafayette, Lake
Charles, Monroe and New Orleans.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
FIRST COMMERCE CORPORATION
By: /s/ Thomas L. Callicutt
----------------------------
Thomas L. Callicutt, Jr.
Executive Vice President,
Controller and Principal
Accounting Officer
Dated: September 20, 1996
