INVESTOR RELATIONS

Press Release

National Commerce Corporation Announces Fourth Quarter and FYE 2015 Earnings

Company Release - 1/26/2016 6:30 PM ET

BIRMINGHAM, Ala., Jan. 26, 2016 (GLOBE NEWSWIRE) -- National Commerce Corporation (Nasdaq:NCOM) (the “Company” or “NCC”), the parent company of National Bank of Commerce, today reported fourth quarter 2015 net income to common shareholders of $2.9 million, compared to $1.7 million for the fourth quarter of 2014.  Diluted net earnings per share were $0.28 in the 2015 fourth quarter, compared to $0.27 in the 2015 third quarter.

For the full year, NCC reported net income of $9.6 million, up from $5.4 million in 2014, and diluted net earnings per share of $1.02, compared to $0.91 in 2014.

On October 31, 2015, the Company completed the acquisition of Reunion Bank of Florida, incurring approximately $395 thousand in merger-related expenses.  Also, as previously announced, the Company closed its Kissimmee, Florida and English Village (Birmingham), Alabama branch banking offices, effective December 31, 2015.  In connection with these closings, the Company incurred approximately $165 thousand in closing and severance costs in the fourth quarter of 2015.

“We are pleased to welcome the Reunion team and its customers to our company,” said John H. Holcomb, III, Chairman and Chief Executive Officer of the Company.  “Our team’s work in 2015 has National Commerce Corporation well-positioned for 2016 and beyond.  We will continue our focus on asset quality, customer service and growing our profitability, and we look forward to 2016.”

Several important measures from the fourth quarter of 2015 are as follows:

  • Net Interest Margin (tax-effected) of 4.06%, down from 4.58% for the fourth quarter of 2014.  The margin increased 0.04% compared to the 2015 third quarter.  During the fourth quarter of 2015, average cash and federal funds balances were $191.1 million, compared to $48.6 million in the 2014 fourth quarter and $166.7 million in the 2015 third quarter.  The 2014 fourth quarter margin was also higher than the 2015 fourth quarter due to the proportionately larger size of factoring revenues as a percentage of total revenues, resulting from the higher yields in the factoring division.
  • Return on Average Assets of 0.72% for both the 2015 and 2014 fourth quarters.  Return on Average Assets was impacted by the larger average balances in cash and federal funds during the fourth quarter of 2015.
  • Return on Average Tangible Common Equity of 7.48%, compared to 7.86% for the fourth quarter of 2014.
  • Fourth quarter 2015 loan growth (excluding mortgage loans held-for-sale) of $304.3 million.  The fourth quarter loan growth includes loans acquired in the October 31, 2015 Reunion acquisition totaling approximately $258.4 million. 
  • Fourth quarter 2015 deposit growth of $372.6 million.  The fourth quarter deposit growth includes deposits acquired in the October 31, 2015 Reunion acquisition totaling approximately $277.7 million.
  • $58.9 million in mortgage production, compared to $55.9 million for the fourth quarter of 2014.
  • $172.1 million in purchased volume in the factoring division, compared to $198.7 million for the 2014 fourth quarter.
  • A slight decrease in non-acquired non-performing assets to $4.3 million from $4.5 million at September 30, 2015, and an increase compared to $3.3 million at December 31, 2014.
  • Annualized net charge-offs of 0.06%, compared to 0.02% for the fourth quarter of 2014.
  • Ending tangible book value per share of $15.03.
  • Ending book value per share of $20.01.

The Company will host a live audio webcast conference call beginning at 9:00 a.m. Central Time on January 27, 2016 to discuss earnings and operating results for the fourth quarter and year ended December 31, 2015.  Investors may call in (toll free) by dialing (855) 871-0559 (conference ID 30845889).  A  replay  of the conference call will be available beginning two hours after the completion of the call until 10:59 p.m. Central Time on January 29, 2016 and can be accessed by dialing (855) 859-2056.

Investors who plan to participate in the live webcast of the conference call should access the webcast by visiting www.nationalbankofcommerce.com, and then clicking on the “Investor Relations” link under the “Learn More” tab located on that webpage.  A replay of the webcast will be available on the website for one year.  A copy of the news release will also be available at the same location.

Use of Non-GAAP Financial Measures

Some of the financial measures presented in this press release and included in the accompanying unaudited financial statements are not measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”).  These non-GAAP financial measures include tangible common equity, return on average tangible common equity, tangible book value per share, allowance for loan losses to nonacquired loans, efficiency ratio and operating efficiency ratio.  The Company’s management uses the non-GAAP financial measures set forth below in its analysis of the Company’s performance.

  • “Tangible common equity” is total shareholders’ equity less goodwill, other intangible assets and minority interest not included in intangible assets.
  • “Average tangible common equity” is defined as the average of tangible common equity for the applicable period.
  • “Return on average tangible common equity,” or ROATCE, is defined as net income available to common shareholders divided by average tangible common equity.
  • “Tangible book value per share” is defined as tangible common equity divided by total common shares outstanding.  This measure is important to investors interested in changes from period to period in book value per share exclusive of changes in intangible assets.
  • “Allowance for loan losses to nonacquired loans” is defined as the total allowance for loan losses, less the allowance for loan losses attributable to factored receivables, divided by nonacquired loans held for investment, excluding factored receivables at end of period.
  • “Efficiency ratio” is defined as noninterest expense divided by operating revenue (which is equal to net interest income plus noninterest income), excluding one-time gains and losses on sales of securities.  This measure is important to investors looking for a measure of efficiency in productivity based on the amount of revenue generated for each dollar spent.
  • “Operating efficiency ratio” is defined as noninterest expense divided by operating revenue, excluding one-time gains and losses on sales of securities and one-time gains and expenses related to merger and acquisition activities.  This measure is important to investors looking for a measure of efficiency in productivity based on the amount of revenue generated for each dollar spent.

             
The Company’s management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to NCC’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, NCC acknowledges that the non-GAAP financial measures have a number of limitations.  As such, NCC cautions readers that these disclosures should not be viewed as a substitute for results determined in accordance with GAAP, and that these disclosures are not necessarily comparable to non-GAAP financial measures that other companies use.  These non-GAAP financial measures exclude various items detailed in the attached “Non-GAAP Reconciliation.”

About National Commerce Corporation

National Commerce Corporation (Nasdaq:NCOM), a Delaware corporation, is a financial holding company and bank holding company headquartered in Birmingham, Alabama.  Substantially all of the operations of NCC are conducted through the company’s wholly owned subsidiary, National Bank of Commerce.  National Bank of Commerce currently operates seven full-service banking offices in Alabama (in Birmingham, Huntsville, Auburn-Opelika, and Baldwin County) and ten full-service banking offices in Central Florida (in Vero Beach through National Bank of Commerce; in Longwood, Winter Park, Orlando, and Oviedo through United Legacy Bank, a division of National Bank of Commerce; and in Tavares, Port Orange, St. Augustine and Ormond Beach through Reunion Bank of Florida, a division of National Bank of Commerce).  National Bank of Commerce provides a broad array of financial services for commercial and consumer customers.

Additionally, National Bank of Commerce owns a majority stake in Corporate Billing, LLC, a transaction-based finance company based in Decatur, Alabama that provides factoring, invoicing, collection and accounts receivable management services to transportation companies and automotive parts and service providers throughout the United States and parts of Canada.

NCC files periodic reports with the U.S. Securities and Exchange Commission (the “SEC”).  Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.nationalbankofcommerce.com. More information about NCC and National Bank of Commerce may be obtained at www.nationalbankofcommerce.com.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements for which NCC claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such.  In addition, certain statements may be contained in NCC’s future filings with the SEC, in press releases and in oral and written statements made by NCC or with NCC’s approval that are not statements of historical fact and that constitute forward-looking statements within the meaning of the Act.  Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of NCC’s plans, objectives and expectations or those of its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements.  Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Forward-looking statements are subject to various risks and uncertainties, including those risks and uncertainties described under the heading “Risk Factors” in NCC’s Annual Report on Form 10-K for the year ended December 31, 2014 and described in any subsequent reports that NCC has filed with the SEC.  Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, and these statements should not be relied upon as predictions of future events.  NCC undertakes no obligation to update any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.  In that respect, NCC cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

NATIONAL COMMERCE CORPORATION 
Unaudited Financial Highlights 
(In thousands, except share and per share amounts and percentages) 
           
 For the Three Months Ended
 December 31, September 30, June 30, March 31, December 31, 
  2015   2015   2015   2015   2014  
Earnings Summary          
Interest income$  16,488  $  13,450  $  12,714  $  12,193  $  10,578  
Interest expense   1,507     1,191     1,071     1,027     846  
Net interest income   14,981     12,259     11,643     11,166     9,732  
Provision for loan losses    631     201     120     161     826  
Other noninterest income (1)   2,298     2,353     2,206     1,764     1,419  
Merger/conversion-related expenses    395     122     168     79     246  
Other noninterest expense (2)   11,211     9,773     9,448     9,211     6,910  
Income before income taxes   5,042     4,516     4,113     3,479     3,169  
Income tax expense    1,667     1,453     1,264     1,092     1,158  
Net income before minority interest    3,375     3,063     2,849     2,387     2,011  
Net income attributable to minority interest    437     573     593     466     304  
Net income to common shareholders$  2,938  $  2,490  $  2,256  $  1,921  $  1,707  
           
Weighted average common and diluted shares outstanding          
  Basic   10,345,146     9,438,541     9,438,541     7,701,663     6,223,377  
  Diluted   10,552,871     9,594,472     9,569,695     7,801,577     6,305,626  
           
Net earnings per common share          
  Basic$  0.28  $  0.26  $  0.24  $  0.25  $  0.27  
  Diluted$  0.28  $  0.26  $  0.24  $  0.25  $  0.27  
           
 December 31, September 30, June 30, March 31, December 31, 
Selected Performance Ratios 2015   2015   2015   2015   2014  
Return on average assets (ROAA) (3)   0.72 %   0.75 %   0.75 %   0.67 %   0.72 %
Return on average equity (ROAE)   5.76     5.62     5.22     5.58     6.11  
Return on average tangible common equity          
  (ROATCE)   7.48     6.85     6.35     7.15     7.86  
Net interest margin - taxable equivalent   4.06     4.02     4.22     4.25     4.58  
Efficiency ratio   67.17     67.72     69.43     71.85     64.17  
Operating efficiency ratio (2)   64.88     66.88     68.22     71.24     61.97  
Noninterest income / average assets (annualized)   0.56     0.71     0.73     0.62     0.60  
Noninterest expense / average assets (annualized)   2.84     2.99     3.19     3.24     3.01  
Yield on loans   5.17     5.13     5.15     5.26     5.37  
Cost of total deposits   0.40 %   0.39 %   0.38 %   0.38 %   0.36 %
           
 December 31, September 30, June 30, March 31, December 31, 
Factoring Metrics 2015   2015   2015   2015   2014  
Recourse purchased volume$  74,922  $  82,661  $  89,009  $  84,725  $  107,891  
Non-recourse purchased volume   97,142     100,055     99,614     90,402     90,791  
Total purchased volume$  172,064  $  182,716  $  188,623  $  175,127  $  198,682  
Average turn (days)   39.68     37.97     37.66     41.57     40.08  
Net charge-offs / total purchased volume   0.12 %   0.06 %   (0.04)%   0.09 %   0.02  
Average discount rate   1.73 %   1.74 %   1.67 %   1.65 %   1.65  
           
 December 31, September 30, June 30, March 31, December 31, 
Mortgage Metrics 2015   2015   2015   2015   2014  
Total production ($)$  58,903  $  82,276  $  84,796  $  55,731  $  55,931  
 Refinance (%)   26.0  %    19.1  %    18.6  %    26.9  %    22.6 %
 Purchases (%)   74.0  %    80.9  %    81.4  %    73.1  %    77.4 %
           
 
 
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 As of
 December 31, September 30, June 30, March 31, December 31, 
Balance Sheet Highlights 2015   2015   2015   2015   2014  
Cash and cash equivalents$  212,457  $  192,882  $  142,393  $  149,907  $  123,435  
Total securities   80,863     45,911     42,586     37,631     34,932  
Mortgage loans held-for-sale   15,020     7,926     13,750     13,804     9,329  
Acquired purchased credit-impaired loans   10,443     5,615     5,724     8,852     9,077  
Acquired non-purchased credit-impaired loans   370,872     123,730     131,953     138,040     143,981  
Nonacquired loans held for investment (4)   870,471     811,011     757,976     704,307     653,063  
CBI loans (factoring receivables)    67,628     74,780     75,000     69,541     82,600  
Total gross loans held for investment   1,319,414     1,015,136     970,653     920,740     888,721  
Allowance for loan losses   9,842     9,391     9,274     9,522     9,802  
Total intangibles    53,474     31,291     31,310     30,560     30,591  
Total assets   1,764,607     1,350,781     1,256,614     1,206,667     1,138,426  
Total deposits   1,514,458     1,141,837     1,051,483     1,000,217     971,060  
Borrowings   22,000     22,000     22,000     22,000     22,000  
Total liabilities    1,547,971     1,173,358     1,081,985     1,034,495     1,002,265  
Minority interest    7,372     7,508     7,527     7,166     7,239  
Common stock   108     94     94     94     75  
Total shareholders' equity   216,636     177,423     174,629     172,172     136,161  
Tangible common equity$  162,724  $  145,558  $  142,726  $  141,380  $  105,265  
End of period common shares outstanding   10,824,969     9,438,541     9,438,541     9,438,541     7,541,541  
           
 As of and For the Three Months Ended
 December 31, September 30, June 30, March 31, December 31, 
Asset Quality Analysis 2015   2015   2015   2015   2014  
Nonacquired           
Nonaccrual loans$  187  $  829  $  2,688  $  618  $  2,276  
Other real estate and repossessed assets   3,873     3,562     1,494     1,494     823  
Loans past due 90 days or more and still accruing   252     148     44     168     217  
Total nonacquired nonperforming assets $  4,312  $  4,539  $  4,226  $  2,280  $  3,316  
           
Acquired          
Nonaccrual loans$  3,508  $  2,829  $  2,795  $  2,576  $  2,589  
Other real estate and repossessed assets   92     72     142     542     557  
Loans past due 90 days or more and still accruing   -     -     -     -     80  
Total acquired nonperforming assets $  3,600  $  2,901  $  2,937  $  3,118  $  3,226  
           
Selected asset quality ratios          
Nonperforming assets / assets   0.45 %   0.55 %   0.57 %   0.45 %   0.57 %
Nonperforming assets / (loans + OREO + repossessed assets)   0.60     0.73     0.74     0.58     0.73  
Net charge-offs (recoveries) to average loans (annualized)   0.06     0.03     0.16     0.20     0.02  
Allowance for loan losses to total loans   0.75     0.93     0.96     1.03     1.10  
Nonacquired nonperforming assets / (Nonacquired loans +          
  nonacquired OREO + nonacquired repossessed assets) (4)   0.49     0.56     0.56     0.32     0.51  
Allowance for loan losses to nonacquired nonperforming         
  loans   2,241.91     961.21     339.46     1,211.45     393.18  
Allowance for loan losses to nonacquired loans (4)   1.07 %   1.10 %   1.13 %   1.22 %   1.35 %
           
 For the Three Months Ended
 December 31, September 30, June 30, March 31, December 31, 
Taxable Equivalent Yields/Rates 2015   2015   2015   2015   2014  
Interest income:          
  Loans   5.17 %   5.13 %   5.15 %   5.26 %   5.37 %
  Mortgage loans held-for-sale   3.44     4.17     4.02     3.63     4.32  
  Interest on securities:          
  Taxable   3.34     3.34     3.33     2.92     3.17  
  Non-taxable   4.18     4.88     5.08     5.72     5.73  
Cash balances in other banks   0.35     0.31     0.38     0.36     0.26  
Total interest-earning assets   4.46     4.41     4.60     4.64     4.97  
           
Interest expense:          
  Interest on deposits   0.54     0.50     0.50     0.49     0.46  
  Interest on FHLB and other borrowings   2.01     2.00     2.01     2.01     2.02  
  Total interest-bearing liabilities   0.57     0.54     0.54     0.53     0.52  
  Net interest spread   3.89     3.87     4.06     4.11     4.45  
  Net interest margin   4.06 %   4.02 %   4.22 %   4.25 %   4.58 %
           
  
 NATIONAL COMMERCE CORPORATION
 Unaudited Financial Highlights
 (In thousands, except share and per share amounts and percentages)
 As of
 December 31, September 30, June 30, March 31, December 31, 
  2015   2015   2015   2015   2014  
Shareholders' Equity and Capital Ratios          
Tier 1 Leverage Ratio   9.65 %   10.39 %   11.09 %   11.41 %   10.68 %
Tier 1 Common Capital Ratio   11.02     12.88     12.86     13.54     10.66  
Tier 1 Risk-based Capital Ratio   11.02     12.88     12.86     13.54     10.66  
Total Risk-based Capital Ratio   11.74     13.79     13.78     14.55     11.75  
Equity / Assets   12.28     13.13     13.90     14.27     11.96  
Tangible common equity to tangible assets   9.51 %   11.03 %   11.65 %   12.02 %   9.50 %
Book value per share$  20.01  $  18.80  $  18.50  $  18.24  $  18.05  
Tangible book value per share$  15.03  $  15.42  $  15.12  $  14.98  $  13.96  
           
 For the Three Months Ended
 December 31, September 30, June 30, March 31, December 31, 
  2015   2015   2015   2015   2014  
Detail of other noninterest expense          
Salaries and employee benefits$  6,077  $  5,186  $  5,114  $  4,987  $  3,717  
Commission-based compensation   844     1,048     1,056     796     900  
Occupancy and equipment expense   1,048     871     829     836     572  
Data processing expenses   511     464     487     425     291  
Advertising and marketing expenses   19     124     125     173     126  
Legal fees   173     177     135     167     222  
FDIC insurance assessments   242     205     152     206     151  
Accounting and audit expenses   332     211     212     223     208  
Consulting and other professional expenses   387     238     164     105     109  
Telecommunications expenses   132     144     135     128     79  
ORE, Repo asset and other collection expenses   256     79     71     122     102  
Core deposit intangible amortization   175     111     111     111     18  
Other noninterest expense   1,410     1,037     1,025     1,011     661  
  Total noninterest expense$  11,606  $  9,895  $  9,616  $  9,290  $  7,156  
           
 
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 As of
 December 31, September 30, June 30, March 31, December 31, 
Non-GAAP Reconciliation 2015   2015   2015   2015   2014  
Total shareholders' equity$  216,636  $  177,423  $  174,629  $  172,172  $  136,161  
Less: intangible assets   53,474     31,291     31,310     30,560     30,591  
Less: minority interest not included in intangible assets   438     574     593     232     305  
Tangible common equity$  162,724  $  145,558  $  142,726  $  141,380  $  105,265  
Common shares outstanding at year or period end    10,824,969     9,438,541     9,438,541     9,438,541     7,541,541  
Tangible book value per share$  15.03  $  15.42  $  15.12  $  14.98  $  13.96  
Total assets at end of period$  1,764,607  $  1,350,781  $  1,256,614  $  1,206,667  $  1,138,426  
Less: intangible assets   53,474     31,291     31,310     30,560     30,591  
Adjusted total assets at end of period$  1,711,133  $  1,319,490  $  1,225,304  $  1,176,107  $  1,107,835  
Tangible common equity to tangible assets   9.51 %   11.03 %   11.65 %   12.02 %   9.50 %
Total allowance for loan losses$  9,842  $  9,391  $  9,274  $  9,522  $  9,802  
Less: allowance for loan losses attributable to           
  CBI (factoring receivables)   500     500     715     956     955  
Adjusted allowance for loan losses at end of period$  9,342  $  8,891  $  8,559    $  8,566    $  8,847  
Nonacquired loans held for investment (4)   870,471     811,011     757,976     704,307     653,063  
Allowance for loan losses to nonacquired loans (4)   1.07 %   1.10 %   1.13 %   1.22 %   1.35 %
           
 For the Three Months Ended
 December 31, September 30, June 30, March 31, December 31, 
  2015   2015   2015   2015   2014  
Non-GAAP Reconciliation          
Total average shareholders' equity$  202,299  $  175,821  $  173,354  $  139,618  $  110,855  
Less: average intangible assets   46,116     31,158     30,555     30,553     24,417  
Less: average minority interest not included           
  in intangible assets   331     371     315     46     277  
Average tangible common equity$  155,852  $  144,292  $  142,484  $  109,019  $  86,161  
Net income to common shareholders   2,938     2,490     2,256     1,921     1,707  
Return on average tangible common equity (ROATCE)   7.48 %   6.85 %   6.35 %   7.15 %   7.86 %
Efficiency ratio:          
Net interest income$  14,981  $  12,259  $  11,643  $  11,166  $  9,732  
Total noninterest income   2,298     2,353     2,206     1,764     1,419  
Less:  gain (loss) on sale of securities    -     -     -     -     -  
Operating revenue$  17,279  $  14,612  $  13,849  $  12,930  $  11,151  
Expenses:          
Total noninterest expenses$  11,606  $  9,895  $  9,616  $  9,290  $  7,156  
Efficiency ratio   67.17 %   67.72 %   69.43 %   71.85 %   64.17 %
Operating efficiency ratio:          
Net interest income$  14,981  $  12,259  $  11,643  $  11,166  $  9,732  
Total noninterest income   2,298     2,353     2,206     1,764     1,419  
Less:  gain (loss) on sale of securities    -     -     -     -     -  
Operating revenue$  17,279  $  14,612  $  13,849  $  12,930  $  11,151  
Expenses:          
Total noninterest expenses$  11,606  $  9,895  $  9,616  $  9,290  $  7,156  
Less: merger/conversion-related expenses   395     122     168     79     246  
Adjusted noninterest expenses$  11,211  $  9,773  $  9,448  $  9,211  $  6,910  
Operating efficiency ratio   64.88 %   66.88 %   68.22 %   71.24 %   61.97 %
           
(1) Excludes securities gains          
(2) Excludes merger/conversion-related expenses          
(3) Net income to common shareholders / average assets          
(4) Excludes CBI loans          

 

 

NATIONAL COMMERCE CORPORATION 
Unaudited Consolidated Balance Sheets 
(In thousands, except share and per share data) 
    
Assets 
    
  December 31, 2015   December 31, 2014  
 Cash and due from banks $  27,173  $  14,236  
 Interest-bearing deposits with banks    185,284     109,199  
  Cash and cash equivalents    212,457     123,435  
 Investment securities held-to-maturity (fair value of $27,843 at December 31, 2015)    27,458     -  
 Investment securities available-for-sale    53,405     34,932  
 Other investments    6,235     5,421  
 Mortgage loans held-for-sale    15,020     9,329  
 Loans, net of unearned income    1,319,414     888,721  
 Less: allowance for loan losses    9,842     9,802  
  Loans, net    1,309,572     878,919  
 Premises and equipment, net    31,432     27,560  
 Accrued interest receivable    3,510     2,193  
 Bank owned life insurance    27,223     10,641  
 Other real estate    3,965     1,008  
 Deferred tax assets, net    14,190     11,444  
 Goodwill    50,686     28,834  
 Core deposit intangible, net    2,788     1,757  
 Other assets    6,666     2,953  
Total assets $  1,764,607  $  1,138,426  
         
    
 Liabilities and Shareholders’ Equity  
 Deposits:    
  Noninterest-bearing demand $  382,946  $  217,643  
  Interest-bearing demand    202,649     154,816  
  Savings and money market    611,887     392,394  
  Time    316,976     206,207  
  Total deposits    1,514,458     971,060  
 Federal Home Loan Bank advances    22,000     22,000  
 Accrued interest payable    627     431  
 Other liabilities    10,886     8,774  
Total liabilities    1,547,971     1,002,265  
         
 Commitments    
 Shareholders’ equity:    
  Preferred stock, 250,000 shares authorized, no shares issued or outstanding    -     -  
  Common stock, at December 31, 2015, $0.01 par value, 30,000,000 shares authorized and    
  10,824,969 shares issued and outstanding; at December 31, 2014, $0.01 par value,    
  12,500,000 shares authorized and 7,541,541 shares issued and outstanding    108     75  
  Additional paid-in capital    202,456     131,455  
  Retained earnings (deficit)    6,152     (3,453) 
  Accumulated other comprehensive income    548     845  
  Total shareholders' equity attributable to National Commerce Corporation    209,264     128,922  
  Noncontrolling interest    7,372     7,239  
  Total shareholders' equity    216,636     136,161  
  Total liabilities and shareholders' equity $  1,764,607  $  1,138,426  
         
    

 

NATIONAL COMMERCE CORPORATION 
Unaudited Consolidated Statements of Earnings 
(In thousands, except per share data) 
       
 For the Three Months Ended For the Twelve Months Ended 
 December 31, December 31, 
  2015  2014   2015  2014  
Interest and dividend income:      
  Interest and fees on loans$  15,777 $  10,229  $  52,720 $  29,812  
  Interest and dividends on taxable investment securities   370    275     1,154    1,178  
  Interest on non-taxable investment securities   173    42     466    169  
  Interest on interest-bearing deposits and federal funds sold   168    32     505    183  
  Total interest income   16,488    10,578     54,845    31,342  
Interest expense:      
  Interest on deposits   1,395    734     4,354    2,427  
  Interest on borrowings   112    112     442    442  
  Total interest expense   1,507    846     4,796    2,869  
  Net interest income   14,981    9,732     50,049    28,473  
Provision for loan losses   631    826     1,113    978  
  Net interest income after provision for loan losses   14,350    8,906     48,936    27,495  
Other income:      
  Service charges and fees on deposit accounts   402    202     1,288    714  
  Mortgage origination and fee income   1,063    986     5,278    3,752  
  Merchant sponsorship revenue   365    -     861    -  
  Income from bank owned life insurance   182    63     433    242  
  Wealth management fees   10    15     53    58  
  (Loss) gain on other real estate   -    8     (24)   13  
  (Loss) gain on sale of investment securities available-for-sale   -    -     -    (33) 
  Other   276    145     732    286  
Total other income 2,298    1,419     8,621    5,032  
               
Other expense:      
  Salaries and employee benefits   6,077    3,717     21,364    13,379  
  Commission-based compensation   844    900     3,744    2,136  
  Occupancy and equipment   1,048    572     3,584    1,944  
  Core deposit intangible amortization   175    18     508    18  
  Other operating expense   3,462    1,949     11,207    5,976  
  Total other expense   11,606    7,156     40,407    23,453  
  Earnings before income taxes   5,042    3,169     17,150    9,074  
Income tax expense   1,667    1,158     5,476    3,159  
  Net earnings    3,375    2,011     11,674    5,915  
  Less: Net earnings attributable to noncontrolling interest   437    304     2,069    512  
  Net earnings attributable to National Commerce Corporation$2,938 $1,707  $  9,605 $  5,403  
               
       
Weighted average common and diluted shares outstanding      
  Basic   10,345,146    6,223,377     9,238,784    5,888,862  
  Diluted   10,552,871    6,305,626     9,395,741    5,960,199  
       
Basic earnings per common share$  0.28 $  0.27  $  1.04 $  0.92  
Diluted earnings per common share$  0.28 $  0.27  $  1.02 $  0.91  
       

 


NATIONAL COMMERCE CORPORATION 
Average Balance Sheets and Net Interest Analysis 
  
                 
 For the Three Months Ended 
(Dollars in thousands)December 31, 2015September 30, 2015June 30, 2015March 31, 2015December 31, 2014 
Interest-earning assetsAverage BalanceInterest Income/ ExpenseAverage Yield/ RateAverage BalanceInterest Income/ ExpenseAverage Yield/ RateAverage BalanceInterest Income/ ExpenseAverage Yield/ RateAverage BalanceInterest Income/ ExpenseAverage Yield/ RateAverage BalanceInterest Income/ ExpenseAverage Yield/ Rate 
Loans$  1,204,437 $  15,699  5.17%$  992,223 $  12,826  5.13%$  944,373 $  12,116  5.15%$  903,563 $  11,709  5.26%$  748,373 $  10,124  5.37% 
Mortgage loans held-for-sale   9,697    84   3.44     9,890    104   4.17     11,180    112   4.02     9,487    85   3.63     9,914    108   4.32   
Securities:                
  Taxable securities   43,960    370   3.34     30,728    259   3.34     32,402    269   3.33     35,540    256   2.92     34,366    275   3.17   
  Tax-exempt securities   26,119    275   4.18     17,649    217   4.88     14,297    181   5.08     4,750    67   5.72     4,640    67   5.73   
Cash balances in other banks   191,077    168   0.35     166,715    129   0.31     112,081    105   0.38     114,579    103   0.36     48,646    32   0.26   
  Total interest-earning assets   1,475,291 $  16,596   4.46     1,217,205 $  13,535   4.41     1,114,333 $  12,783   4.60     1,067,919 $  12,220   4.64     845,939 $  10,606   4.97   
Non-interest-earning assets   146,557      96,824      95,949      94,118      96,203    
  Total assets$  1,621,848   $  1,314,029   $  1,210,282   $  1,162,037   $  942,142    
                 
Interest-bearing liabilities                
Interest-bearing transaction accounts$  196,140 $  129  0.26%$  182,056 $  118  0.26%$  157,261 $  97  0.25%$  159,706 $  99  0.25%$  135,882 $  96  0.28% 
Savings and money market deposits   542,631    612   0.45     443,306    486   0.43     408,117    417   0.41     391,321    377   0.39     330,459    309   0.37   
Time deposits   291,399    654   0.89     228,298    476   0.83     208,388    447   0.86     209,016    442   0.86     161,368    329   0.81   
Federal Home Loan Bank and other borrowed money   22,104    112   2.01     22,000    111   2.00     22,000    110   2.01     22,000    109   2.01     22,027    112   2.02   
  Total interest-bearing liabilities   1,052,274 $  1,507   0.57     875,660 $  1,191   0.54     795,766 $  1,071   0.54     782,043 $  1,027   0.53     649,736 $  846   0.52   
Non-interest-bearing deposits   354,812      254,402      233,136      232,497      172,290    
  Total funding sources   1,407,086      1,130,062      1,028,902      1,014,540      822,026    
Non-interest-bearing liabilities   12,463      8,146      8,026      7,879      9,261    
Shareholders' equity   202,299      175,821      173,354      139,618      110,855    
 $  1,621,848   $  1,314,029   $  1,210,282   $  1,162,037   $  942,142    
Net interest rate spread   3.89%   3.87%   4.06%   4.11%   4.45% 
Net interest income/margin (taxable equivalent)    15,089  4.06%    12,344  4.02%    11,712  4.22%    11,193  4.25%    9,760  4.58% 
Tax equivalent adjustment    108      85      69      27      28   
Net interest income/margin $  14,981  4.03% $  12,259  4.00% $  11,643  4.19% $  11,166  4.24% $  9,732  4.56% 
                 


 

Contact:

National Commerce Corporation

William E. Matthews, V                                             
Vice Chairman and Chief Financial Officer               
(205) 313-8122

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Source: National Commerce Corporation