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): April 11, 1997
FIRST COMMERCE CORPORATION
(Exact name of registrant as specified in its charter)
LOUISIANA 0-7931 72-0701203
(State of (Commission File (IRS Employer
incorporation) Number) Identification Number)
210 BARONNE ST., NEW ORLEANS, LOUISIANA 70112
(Address of principal executive offices - Zip Code)
Registrant's telephone number, including area code: (504)623-1371
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events.
On April 11, 1997, First Commerce Corporation issued
the following press release:
FIRST COMMERCE CORPORATION NEWS RELEASE
New Orleans, Louisiana
APRIL 11, 1997
CONTACTS: MICHAEL A. FLICK (504) 623-1492
HOLLY E. HOBSON (504) 623-2917
FIRST COMMERCE ANNOUNCES FIRST QUARTER EARNINGS
New Orleans - First Commerce Corporation (NASDAQ -
FCOM) announced today that its net income for the first
quarter was $29.0 million, or $.73 per fully diluted share.
Fully diluted earnings per share were $.75 in 1996's first
quarter and $.72 in the fourth quarter of last year.
Excluding the effect of gains on securities transactions in
the first and fourth quarters of 1996 and a gain on
divestiture in last year's first quarter, fully diluted
earnings per share were $.72 in 1996's first quarter and
$.71 in the fourth quarter.
The key points for the first quarter's results
included:
* Revenues increased $11.1 million from the first
quarter of 1996 to 1997's first quarter, a 9%
improvement, while expense growth was less than 4%.
This improvement excludes the effect of securities
transactions and the gain on divestiture. However,
the provision for loan losses increased $9.4
million, mostly offsetting the revenue growth. The
provision increase was primarily related to the
national trend, also experienced at First Commerce,
of rising credit card losses.
* Net interest income (FTE) was $97.6 million for the
current quarter. The 8% increase from 1996's first
quarter was principally caused by loan growth of
20%. Net interest income was unchanged from the
previous quarter. The net interest margin was 4.70%
in the first quarter, compared to 4.71% in 1996's
first quarter and 4.76% in the fourth quarter.
* Noninterest income was $43.5 million in the first
quarter. Excluding the effect of a one-time gain in
1996's first quarter, noninterest income rose 10%,
primarily due to higher credit card fees and trust
revenues. Noninterest income was $45.5 million in
the fourth quarter; seasonal influences generally
lead to peak levels of credit card and deposit fees
in the fourth quarter and lower levels in the first
quarter.
* The provision for loan losses was $13.2 million in
the first quarter, compared to $3.8 million in last
year's first quarter and $14.2 million in the fourth
quarter. Credit card net charge-offs increased to
4.40% of average credit card loans, while consumer
net charge-offs declined to .90% from last quarter;
credit card and consumer charge-offs were both
higher than in 1996's first quarter. Commercial
loans had a net recovery again this quarter.
* Operating expense was $82.8 million for the first
quarter, 3.8% higher than in 1996's first quarter
and 3% less than the fourth quarter. Stock-based
incentive pay was the primary cause of both the
increase from last year's first quarter and the
decrease from 1996's fourth quarter. The efficiency
ratio was 58.7% for the current quarter.
Total loans were $6.2 billion as of March 31, 1997, 22%
higher than one year ago and unchanged from December 31.
Average loans were 20% higher than in 1996's first quarter
and up 4% from the fourth quarter. The average loan growth from
1996's first quarter was across-the-board, with significant
increases in credit cards, commercial real estate and
consumer loans. The growth from the fourth quarter was
primarily related to credit card, commercial and commercial
real estate loans.
Average deposits were $7.4 billion in the first
quarter, 7% higher than 1996's first quarter and 6% higher
than in the fourth quarter. Deposit growth was primarily
related to time deposits $100,000 and over and public funds.
Nonperforming assets were $36.4 million at the end of
the first quarter, or .59% of loans, compared to $31.9
million at December 31, or .51% of loans. First quarter net
charge-offs were $13.1 million, or .85% of loans. Net
charge-offs were $11.9 million in the fourth quarter and
$5.1 million in last year's first quarter. Increased credit
card charge-offs caused the increase from the prior quarter,
while higher consumer loan and credit card charge-offs
caused the increase from last year's first quarter.
Total assets were $9.3 billion at March 31, 1997, and
deposits were $7.5 billion. The leverage ratio was 7.70% at
the end of the first quarter.
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FIRST COMMERCE CORPORATION AND SUBSIDIARIES
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FINANCIAL HIGHLIGHTS
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First First
Quarter Quarter
(dollars in thousands, except per share data) 1997 1996
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INCOME DATA
Net interest income $ 95,833 $ 88,925
Net interest income (tax equivalent) $ 97,592 $ 90,384
Provision for loan losses $ 13,225 $ 3,825
Other income (exclusive of securities transactions) $ 43,545 $ 40,800
Securities transactions $ 23 $ 1,207
Operating expense $ 82,842 $ 79,786
Net income $ 29,020 $ 31,533
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AVERAGE BALANCE SHEET DATA
Loans $ 6,206,007 $ 5,170,534
Securities $ 2,137,468 $ 2,457,394
Earning assets $ 8,400,237 $ 7,699,873
Total assets $ 9,082,650 $ 8,442,698
Deposits $ 7,372,870 $ 6,889,954
Long-term debt $ 257,275 $ 87,028
Stockholders' equity $ 723,937 $ 740,091
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PER COMMON SHARE DATA
Net income - fully diluted $ .73 $ .75
Net income - primary $ .74 $ .79
Book value (end of period) $ 18.58 $ 18.02
Closing stock price $ 40.50 $ 33.00
Cash dividends $ .40 $ .35
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RATIOS
Net income as a percent of:
Average assets 1.30% 1.50%
Average total equity 16.26% 17.14%
Average common equity 16.26% 17.82%
Net interest income (tax equivalent) as
a percent of average earning assets 4.70% 4.71%
Operating expense less other income
(excluding securities transactions) as a
percent of average earning assets 1.90% 2.04%
Operating expense as a percent of
total revenue (tax equivalent and excluding
securities transactions) 58.70% 60.82%
Allowance for loan losses as a percent of
net loans, at end of period 1.31% 1.46%
Nonperforming assets as a percent of
net loans plus foreclosed
assets, at end of period .59% 1.09%
Stockholders' equity as a percent
of total assets, at end of period 7.79% 8.94%
Leverage ratio at end of period 7.70% 8.33%
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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
(Registrant)
By: /s/ Thomas L. Callicutt, Jr.
_____________________________
Thomas L. Callicutt, Jr.
Executive Vice President,
Controller and Principal
Accounting Officer
Dated: April 14, 1997
