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
DATE OF REPORT (Date of earliest event reported): April 16, 1998
FIRST COMMERCE CORPORATION
(Exact name of registrant as specified in its charter)
LOUISIANA 0-7931 72-0701203
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
201 ST. CHARLES AVE., 29TH FLOOR, NEW ORLEANS, LOUISIANA 70170
(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)
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit
No. Document Description
------- --------------------------------------
99(a) Press Release issued on April 16, 1998
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 20, 1998
INDEX TO EXHIBITS
Exhibit Sequential
No. Document Description Page No.
------- --------------------------------------- ----------
99(a) Press Release issued on April 16, 1998 5
Exhibit 99(a)
News Release
First Commerce Corporation
New Orleans, Louisiana
APRIL 16, 1998
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 $30.8 million, or
$.75 per diluted share. Diluted earnings per share were $.73 in last
year's first quarter and $.79 in the fourth quarter of 1997.
Key items from 1998's first quarter:
* Net interest income (FTE) was $97.4 million in the first
quarter, $96.4 million in the fourth quarter of 1997 and $97.6
million in 1997's first quarter. Continued loan growth was the
leading contributor to the increase in net interest income from the
fourth quarter, while lower short-term borrowings improved the
funding mix. There was no growth in net interest income from the
first quarter of 1997 because of the $300 million credit card loan
securitization in the third quarter of 1997; that securitization
shifted net interest income to revenue that is classified as
noninterest income.
* The net interest margin was 4.51% in the first quarter, 5 basis
points higher than 1997's fourth quarter. A higher yield on loans
contributed to the improvement, while the cost of funds remained the
same. The decrease from 4.70% in last year's first quarter was
principally due to the securitization in 1997's third quarter.
* Total net charge-offs of $11.7 million in the first quarter
represent a decrease of 11% from last year's first quarter and an
increase of 20% from last year's fourth quarter. The increase in net
charge-offs from fourth quarter 1997 was primarily due to net charge-
offs of $1.5 million in commercial and commercial real estate loans,
of which $1.2 million was attributable to one fully reserved credit,
versus net recoveries in both prior periods. Net charge-offs of
managed credit card loans were $10.6 million, or 4.58% of average
loans, in the first quarter, compared to $10.7 million, or 4.77% of
average loans, in the fourth quarter
and $9.0 million, or 4.40%, in last year's first quarter. The
provision for loan losses was $9.5 million for the first
quarter, compared to $8.6 million in the fourth quarter of
1997 and $13.2 million in 1997's first quarter.
* Noninterest income was $47.7 million in the first quarter, $50.3
million for the fourth quarter of 1997 and $43.6 million in 1997's
first quarter. The comparison between the first and fourth quarters
is impacted by seasonal influences, which generally lead to peak
levels of credit card and deposit fees in the fourth quarter and
lower levels in the first quarter. The credit card securitization in
the third quarter of 1997 affects a comparison of both first quarters
due to the addition of a noninterest income line item, securitization
revenue. Excluding the impact of securitization, noninterest income
was up 6% from last year's first quarter. Almost all categories
experienced growth, with the most significant increases in credit
card and trust fee income. The lower level of deposit fees reflected
First Commerce's customer retention strategy.
* Operating expenses were $88.1 million in the first quarter,
compared with $88.8 million and $82.8 million in 1997's fourth
quarter and first quarter, respectively. Lower professional fees
contributed to the decrease from the fourth quarter of 1997. Annual
raises and incentive pay contributed to the increase between the
first quarters of 1997 and 1998.
Average managed loans totaled $6.7 billion in the first quarter,
9% higher than 1997's first quarter and 2% higher than last quarter.
The largest increases were in credit card loans and commercial loans.
Average deposits grew 3% from 1997's fourth quarter, while average
core deposits were up 4%; both were up 5% from last year's first
quarter. Total assets were $9.5 billion at March 31, 1998, and
deposits were $7.7 billion. The leverage ratio was 8.65% at the end
of the first quarter.
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.
On October 20, 1997, First Commerce entered into a merger
agreement with BANC ONE CORPORATION. The merger is expected to be
completed in the second quarter of 1998 after approvals by
shareholders and regulators are received.
FIRST COMMERCE CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
First First
Quarter Quarter
(dollars in thousands, except per share data) 1998 1997
- ------------------------------------------------------- ------------ ------------
<S> <C> <C>
INCOME DATA
Net interest income $ 95,426 $ 95,833
Net interest income (tax equivalent) $ 97,430 $ 97,592
Provision for loan losses $ 9,510 $ 13,225
Other income (exclusive of investment securities
transactions) $ 47,711 $ 43,545
Investment securities transactions $ 23 $ 23
Operating expense $ 88,105 $ 82,842
Net income $ 30,760 $ 29,020
- ------------------------------------------------------- ------------ ------------
AVERAGE BALANCE SHEET DATA
Loans - reported $ 6,444,805 $ 6,206,007
Loans - managed(a) $ 6,744,805 $ 6,206,007
Securities $ 2,106,250 $ 2,137,468
Earning assets $ 8,732,211 $ 8,400,237
Total assets $ 9,444,932 $ 9,082,650
Deposits $ 7,717,055 $ 7,372,870
Long-term debt $ 387,564 $ 257,275
Stockholders' equity $ 838,086 $ 723,937
- ------------------------------------------------------- ------------ ------------
PER COMMON SHARE DATA
Net income - diluted $ 0.75 $ 0.73
Net income - basic $ 0.78 $ 0.75
Book value (end of period) $ 21.80 $ 18.58
Closing stock price $ 85.75 $ 40.50
Cash dividends $ 0.40 $ 0.40
- ------------------------------------------------------- ------------ ------------
RATIOS
Net income as a percent of:
Average assets 1.32% 1.30%
Average total equity 14.88% 16.26%
Net interest income (tax equivalent) as
a percent of average earning assets 4.51% 4.70%
Average loans as a percent of average deposits 83.51% 84.17%
Operating expense less other income
(excluding investment securities transactions)
as a percent of average earning assets 1.88% 1.90%
Operating expense as a percent of
total revenue (tax equivalent and excluding
investment securities transactions) 60.70% 58.70%
Other income (excluding investment securities
transactions) as a percent of total revenue 32.87% 30.85%
Allowance for loan losses as a percent of
loans, at end of period 1.26% 1.31%
Nonperforming assets as a percent of
loans plus foreclosed assets, at end of period 0.57% 0.59%
Stockholders' equity as a percent
of total assets, at end of period 9.10% 7.79%
Leverage ratio at end of period 8.65% 7.70%
- ------------------------------------------------------- ------------ ------------
(a)Managed portfolio represents the owned loan portfolio plus the securitized
credit card receivables.
</TABLE>
