INVESTOR RELATIONS

Press Release

National Commerce Corporation Announces First Quarter 2016 Earnings

Company Release - 4/20/2016 6:30 PM ET

BIRMINGHAM, Ala., April 20, 2016 (GLOBE NEWSWIRE) -- National Commerce Corporation (Nasdaq:NCOM) (the “Company” or “NCC”), the parent company of National Bank of Commerce, today reported first quarter 2016 net income to common shareholders of $3.8 million, compared to $1.9 million for the first quarter of 2015.  Diluted net earnings per share were $0.34 in the first quarter of 2016, compared to $0.28 in the fourth quarter of 2015 and $0.25 in the first quarter of 2015.

“We are pleased with the start to the year, and our improving profitability metrics give us some encouragement about the direction in which we are headed,” said John H. Holcomb, III, Chairman and Chief Executive Officer of the Company.  “We are also excited about the opening of our Atlanta loan production office in April, and we are enthusiastic about the team that has joined us there.”

During the first quarter of 2016, the Company successfully completed the system integration of Reunion Bank of Florida, a division of National Bank of Commerce, to its core system.  “We are glad to have had a successful system conversion with Reunion, and I want to personally thank all of our colleagues who worked so hard to make that conversion a success.  We will continue our focus on asset quality, customer service and growing our profitability, and we look forward to the remainder of 2016,” said Holcomb.

Several important measures from the first quarter of 2016 are as follows:

  • Net Interest Margin (taxable equivalent) of 4.21%, down slightly from 4.25% for the first quarter of 2015.  The margin increased 0.15% compared to the 2015 fourth quarter due to the earning asset mix, with an increase in average loans outstanding and lower levels of cash on hand.
  • Return on Average Assets of 0.86%, compared to 0.67% for the first quarter of 2015. 
  • Return on Average Tangible Common Equity of 9.21%, compared to 7.15% for the first quarter of 2015.
  • First quarter 2016 loan growth (excluding mortgage loans held-for-sale) of $68.3 million.   
  • Decrease in deposits of $16.3 million, reflecting many deposits that were temporarily inflated at year end 2015, including deposits from tax collecting authorities.
  • $63.8 million in mortgage production, compared to $55.7 million for the first quarter of 2015.
  • $184.7 million in purchased volume in the factoring division, compared to $175.1 million for the first quarter of 2015.
  • A decrease in non-acquired non-performing assets to $3.4 million from $4.3 million at December 31, 2015.
  • Annualized net charge-offs of 0.13%, compared to 0.20% for the first quarter of 2015.
  • Provision for loan losses of $1.5 million, compared with $631 thousand in the 2015 fourth quarter and $161 thousand in the first quarter of 2015.  The increase was attributable in part to $83 million in growth in non-acquired loans during the first quarter of 2016, net charge-offs of $448 thousand during the first quarter of 2016 and general economic factors.
  • Ending tangible book value per share of $15.42.
  • Ending book value per share of $20.36.

The Company will host a live audio webcast conference call beginning at 8:00 a.m. Central Time on April 21, 2016 to discuss earnings and operating results for the first quarter of 2016.  Investors may call in (toll free) by dialing (855) 871-0559 (conference ID 90642241).  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 April 23, 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 the end of the 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 headquartered in Birmingham, Alabama.  Substantially all of the operations of National Commerce Corporation 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), as well as a loan production office in the Atlanta, Georgia market area.  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.

National Commerce Corporation 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 National Commerce Corporation 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, 2015 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 
  March 31,   December 31,   September 30,    June 30,   March 31,   
  2016   2015   2015   2015   2015  
Earnings Summary                    
Interest income$18,313  $16,488  $13,450  $12,714  $12,193  
Interest expense 1,650   1,507   1,191   1,071   1,027  
Net interest income 16,663   14,981   12,259   11,643   11,166  
Provision for loan losses 1,533   631   201   120   161  
Other noninterest income (1) 3,125   2,136   2,353   2,206   1,764  
Merger/conversion-related expenses 138   395   122   168   79  
Other noninterest expense (2) 11,915   11,049   9,773   9,448   9,211  
Income before income taxes 6,202   5,042   4,516   4,113   3,479  
Income tax expense 2,083   1,667   1,453   1,264   1,092  
Net income before minority interest 4,119   3,375   3,063   2,849   2,387  
Net income attributable to minority interest 340   437   573   593   466  
Net income to common shareholders$3,779  $2,938  $2,490  $2,256  $1,921  
 
Weighted average common and diluted shares outstanding 
Basic 10,855,871   10,345,146   9,438,541   9,438,541   7,701,663  
Diluted 11,039,208   10,552,871   9,594,472   9,569,695   7,801,577  
 
Net earnings per common share 
Basic$0.35  $0.28  $0.26  $0.24  $0.25  
Diluted$0.34  $0.28  $0.26  $0.24  $0.25  
                     
  March 31,   December 31,   September 30,   June 30,   March 31,   
Selected Performance Ratios 2016   2015   2015   2015   2015  
Return on average assets (ROAA) (3) 0.86 % 0.72 % 0.75 % 0.75 % 0.67 %
Return on average equity (ROAE) 6.95   5.76   5.62   5.22   5.58  
Return on average tangible common equity          
(ROATCE) 9.21   7.48   6.85   6.35   7.15  
Net interest margin - taxable equivalent 4.21   4.06   4.02   4.22   4.25  
Efficiency ratio 60.91   66.86   67.72   69.43   71.85  
Operating efficiency ratio (2) 60.21   64.55   66.88   68.22   71.24  
Noninterest income / average assets (annualized) 0.71   0.52   0.71   0.73   0.62  
Noninterest expense / average assets (annualized) 2.75   2.80   2.99   3.19   3.24  
Yield on loans 5.16   5.17   5.13   5.15   5.26  
Cost of total deposits 0.42 % 0.40 % 0.39 % 0.38 % 0.38 %
 
  March 31,   December 31,   September 30,   June 30,   March 31,   
Factoring Metrics 2016   2015   2015   2015   2015  
Recourse purchased volume$66,554  $74,922  $82,661  $89,009  $84,725  
Non-recourse purchased volume 118,132   97,142   100,055   99,614   90,402  
Total purchased volume$184,686  $172,064  $182,716  $188,623  $175,127  
Average turn (days) 38.16   39.68   37.97   37.66   41.57  
Net charge-offs / total purchased volume 0.26 % 0.12 % 0.06 % (0.04% 0.09 %
Average discount rate 1.72 % 1.73 % 1.74 % 1.67 % 1.65 %
 
  March 31,   December 31,   September 30,   June 30,   March 31,   
Mortgage Metrics 2016   2015   2015   2015   2015  
Total production ($)$63,802  $58,903  $82,276  $84,796  $55,731  
Refinance (%) 18.2 % 26.0 % 19.1 % 18.6 % 26.9 %
Purchases (%) 81.8 % 74.0 % 80.9 % 81.4 % 73.1 %
 
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 As of 
  March 31,   December 31,   September 30,   June 30,   March 31,   
Balance Sheet Highlights 2016   2015   2015   2015   2015  
Cash and cash equivalents$123,853  $212,457  $192,882  $142,393  $149,907  
Total securities 82,954   80,863   45,911   42,586   37,631  
Mortgage loans held-for-sale 12,529   15,020   7,926   13,750   13,804  
Acquired purchased credit-impaired loans 10,205   10,443   5,615   5,724   8,852  
Acquired non-purchased credit-impaired loans 356,305   370,872   123,730   131,953   138,040  
Nonacquired loans held for investment (4) 942,781   870,471   811,011   757,976   704,307  
CBI loans (factoring receivables) 78,414   67,628   74,780   75,000   69,541  
Total gross loans held for investment 1,387,705   1,319,414   1,015,136   970,653   920,740  
Allowance for loan losses 10,927   9,842   9,391   9,274   9,522  
Total intangibles 53,312   53,474   31,291   31,310   30,560  
Total assets 1,740,106   1,763,369   1,350,781   1,256,614   1,206,667  
Total deposits 1,498,197   1,514,458   1,141,837   1,051,483   1,000,217  
Borrowings 7,000   22,000   22,000   22,000   22,000  
Total liabilities 1,519,006   1,546,733   1,173,358   1,081,985   1,034,495  
Minority interest 7,275   7,372   7,508   7,527   7,166  
Common stock 109   108   94   94   94  
Total shareholders' equity 221,100   216,636   177,423   174,629   172,172  
Tangible common equity$167,447  $162,724  $145,558  $142,726  $141,380  
End of period common shares outstanding 10,861,487   10,824,969   9,438,541   9,438,541   9,438,541  
 
 As of and For the Three Months Ended 
  March 31,   December 31,   September 30,   June 30,   March 31,   
Asset Quality Analysis 2016   2015   2015   2015   2015  
Nonacquired 
Nonaccrual loans$184  $187  $829  $2,688  $618  
Other real estate and repossessed assets 2,792   3,873   3,562   1,494   1,494  
Loans past due 90 days or more and still accruing 473   252   148   44   168  
Total nonacquired nonperforming assets$3,449  $4,312  $4,539  $4,226  $2,280  
           
Acquired          
Nonaccrual loans$3,617  $3,508  $2,829  $2,795  $2,576  
Other real estate and repossessed assets 92   92   72   142   542  
Loans past due 90 days or more and still accruing -   -   -   -   -  
Total acquired nonperforming assets$3,709  $3,600  $2,901  $2,937  $3,118  
 
Selected asset quality ratios 
Nonperforming assets / Assets 0.41 % 0.45 % 0.55 % 0.57 % 0.45 %
Nonperforming assets / (Loans + OREO + repossessed assets) 0.51   0.60   0.73   0.74   0.58  
Net charge-offs (recoveries) to average loans (annualized) 0.13   0.06   0.03   0.16   0.20  
Allowance for loan losses to total loans 0.79   0.75   0.93   0.96   1.03  
Nonacquired nonperforming assets / (Nonacquired loans +          
nonacquired OREO + nonacquired repossessed assets) (4) 0.36   0.49   0.56   0.56   0.32  
Allowance for loan losses to nonacquired nonperforming          
loans 1663.17   2241.91   961.21   339.46   1211.45  
Allowance for loan losses to nonacquired loans (4) 1.11 % 1.07 % 1.10 % 1.13 % 1.22 %
 
 For the Three Months Ended 
  March 31,   December 31,   September 30,   June 30,   March 31,   
Taxable Equivalent Yields/Rates 2016   2015   2015   2015   2015  
Interest income: 
Loans 5.16 % 5.17 % 5.13 % 5.15 % 5.26 %
Mortgage loans held-for-sale 4.40   3.44   4.17   4.02   3.63  
Interest on securities:          
Taxable 2.68   3.05   3.30   3.33   2.92  
Non-taxable 4.90   4.96   4.99   5.08   5.72  
Cash balances in other banks 0.58   0.35   0.31   0.38   0.36  
Total interest-earning assets 4.62   4.46   4.41   4.60   4.64  
           
Interest expense:          
Interest on deposits 0.56   0.54   0.50   0.50   0.49  
Interest on FHLB and other borrowings 2.97   2.01   2.00   2.01   2.01  
Total interest-bearing liabilities 0.58   0.57   0.54   0.54   0.53  
Net interest spread 4.04   3.89   3.87   4.06   4.11  
Net interest margin 4.21 % 4.06 % 4.02 % 4.22 % 4.25 %
 
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 As of 
  March 31,   December 31,   September 30,   June 30,   March 31,   
  2016   2015   2015   2015   2015  
Shareholders' Equity and Capital Ratios 
Tier 1 Leverage Ratio 9.12 % 9.68 % 10.39 % 11.09 % 11.41 %
Tier 1 Common Capital Ratio 11.15   11.18   12.88   12.86   13.54  
Tier 1 Risk-based Capital Ratio 11.15   11.18   12.88   12.86   13.54  
Total Risk-based Capital Ratio 11.93   11.91   13.79   13.78   14.55  
Equity / Assets 12.71   12.29   13.13   13.90   14.27  
Tangible common equity to tangible assets 9.93 % 9.52 % 11.03 % 11.65 % 12.02 %
Book value per share$20.36  $20.01  $18.80  $18.50  $18.24  
Tangible book value per share$15.42  $15.03  $15.42  $15.12  $14.98  
 
 For the Three Months Ended 
  March 31,   December 31,   September 30,   June 30,   March 31,   
  2016   2015   2015   2015   2015  
Detail of other noninterest expense 
Salaries and employee benefits$6,945  $6,077  $5,186  $5,114  $4,987  
Commission-based compensation 875   844   1,048   1,056   796  
Occupancy and equipment expense 1,135   1,048   871   829   836  
Data processing expenses 667   511   464   487   425  
Advertising and marketing expenses 160   19   124   125   173  
Legal fees 122   173   177   135   167  
FDIC insurance assessments 263   242   205   152   206  
Accounting and audit expenses 250   332   211   212   223  
Consulting and other professional expenses 243   387   238   164   105  
Telecommunications expenses 159   132   144   135   128  
ORE, Repo asset and other collection expenses 59   256   79   71   122  
Core deposit intangible amortization 191   175   111   111   111  
Other noninterest expense 984   1,248   1,037   1,025   1,011  
Total noninterest expense$12,053  $11,444  $9,895  $9,616  $9,290  
 
 
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 As of 
  March 31,   December 31,   September 30,   June 30,   March 31,  
Non-GAAP Reconciliation 2016   2015   2015   2015   2015  
Total shareholders' equity$221,100  $216,636  $177,423  $174,629  $172,172  
Less: intangible assets 53,312   53,474   31,291   31,310   30,560  
Less: minority interest not included in intangible assets 341   438   574   593   232  
Tangible common equity$167,447  $162,724  $145,558  $142,726  $141,380  
Common shares outstanding at year or period end 10,861,487   10,824,969   9,438,541   9,438,541   9,438,541  
Tangible book value per share$15.42  $15.03  $15.42  $15.12  $14.98  
Total assets at end of period$1,740,106  $1,763,369  $1,350,781  $1,256,614  $1,206,667  
Less: intangible assets 53,312   53,474   31,291   31,310   30,560  
Adjusted total assets at end of period$1,686,794  $1,709,895  $1,319,490  $1,225,304  $1,176,107  
Tangible common equity to tangible assets 9.93 % 9.52 % 11.03 % 11.65 % 12.02 %
Total allowance for loan losses$10,927  $9,842  $9,391  $9,274  $9,522  
Less: allowance for loan losses attributable to          
CBI (factoring receivables) 500   500   500   715   956  
Adjusted allowance for loan losses at end of period$10,427  $9,342  $8,891  $8,559  $8,566  
Nonacquired loans held for investment (4) 942,781   870,471   811,011   757,976   704,307  
Allowance for loan losses to nonacquired loans (4) 1.11 % 1.07 % 1.10 % 1.13 % 1.22 %
 
 For the Three Months Ended 
  March 31,   December 31,   September 30,   June 30,   March 31,  
  2016   2015   2015   2015   2015  
Non-GAAP Reconciliation 
Total average shareholders' equity$218,730  $202,299  $175,821  $173,354  $139,618  
Less: average intangible assets 53,388   46,113   31,158   30,555   30,553  
Less: average minority interest not included          
in intangible assets 231   331   371   315   46  
Average tangible common equity$165,111  $155,855  $144,292  $142,484  $109,019  
Net income to common shareholders 3,779   2,938   2,490   2,256   1,921  
Return on average tangible common equity (ROATCE) 9.21 % 7.48 % 6.85 % 6.35 % 7.15 %
Efficiency ratio:                    
Net interest income$16,663  $14,981  $12,259  $11,643  $11,166  
Total noninterest income 3,125   2,136   2,353   2,206   1,764  
Less:  gain (loss) on sale of securities -   -   -   -   -  
Operating revenue$19,788  $17,117  $14,612  $13,849  $12,930  
Expenses:                    
Total noninterest expenses$12,053  $11,444  $9,895  $9,616  $9,290  
Efficiency ratio 60.91 % 66.86 % 67.72 % 69.43 % 71.85 %
Operating efficiency ratio:                    
Net interest income$16,663  $14,981  $12,259  $11,643  $11,166  
Total noninterest income 3,125   2,136   2,353   2,206   1,764  
Less:  gain (loss) on sale of securities -   -   -   -   -  
Operating revenue$19,788  $17,117  $14,612  $13,849  $12,930  
Expenses:            
Total noninterest expenses$12,053  $11,444  $9,895  $9,616  $9,290  
Less: merger/conversion-related expenses 138   395   122   168   79  
Adjusted noninterest expenses$11,915  $11,049  $9,773  $9,448  $9,211  
Operating efficiency ratio 60.21 % 64.55 % 66.88 % 68.22 % 71.24 %
                     
(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
 March 31, 2016December 31, 2015
Cash and due from banks$15,018 $27,173
Interest-bearing deposits with banks 108,835  185,284
Cash and cash equivalents 123,853  212,457
Investment securities held-to-maturity (fair value of $27,910 and $27,843 at March 31, 2016  
and December 31, 2015, respectively) 27,284  27,458
Investment securities available-for-sale 55,670  53,405
Other investments 6,106  6,235
Mortgage loans held-for-sale 12,529  15,020
Loans, net of unearned income 1,387,705  1,319,414
Less: allowance for loan losses 10,927  9,842
Loans, net 1,376,778  1,309,572
Premises and equipment, net 31,897  31,432
Accrued interest receivable 3,637  3,510
Bank-owned life insurance 27,426  27,223
Other real estate 2,884  3,965
Deferred tax assets, net 13,937  14,190
Goodwill 50,715  50,686
Core deposit intangible, net 2,597  2,788
Other assets 4,793  5,428
Total assets$1,740,106 $1,763,369
      
 Liabilities and Shareholders’ Equity 
Deposits:  
Noninterest-bearing demand$382,642 $382,946
Interest-bearing demand 222,271  202,649
Savings and money market 597,179  611,887
Time 296,105  316,976
Total deposits 1,498,197  1,514,458
Federal Home Loan Bank advances 7,000  22,000
Accrued interest payable 644  627
Other liabilities 13,165  9,648
Total liabilities 1,519,006  1,546,733
Commitments and contingencies     
Shareholders’ equity:  
Preferred stock, 250,000 shares authorized, no shares issued or outstanding -  -
Common stock, $0.01 par value, 30,000,000 shares authorized, 10,861,487 and 10,824,969 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively 109  108
Additional paid-in capital 202,971  202,456
Retained earnings 9,931  6,152
Accumulated other comprehensive income 814  548
Total shareholders' equity attributable to National Commerce Corporation 213,825  209,264
Noncontrolling interest 7,275  7,372
Total shareholders' equity 221,100  216,636
Total liabilities and shareholders' equity$1,740,106 $1,763,369
      

 

NATIONAL COMMERCE CORPORATION
Unaudited Consolidated Statements of Earnings
(In thousands, except per share data)
    
  For the Three Months Ended
  March 31,
   2016  2015 
Interest and dividend income:   
Interest and fees on loans $17,483 $11,792 
Interest and dividends on taxable investment securities  412  256 
Interest on non-taxable investment securities  200  42 
Interest on interest-bearing deposits and federal funds sold  218  103 
Total interest income  18,313  12,193 
Interest expense:   
Interest on deposits  1,569  918 
Interest on borrowings  81  109 
Total interest expense  1,650  1,027 
Net interest income  16,663  11,166 
Provision for loan losses  1,533  161 
Net interest income after provision for loan losses  15,130  11,005 
Other income:   
Service charges and fees on deposit accounts  480  267 
Mortgage origination and fee income  1,392  1,271 
Merchant sponsorship revenue  522  - 
Income from bank owned life insurance  204  79 
Wealth management fees  13  19 
Gain (loss) on other real estate  156  (13)
Other  358  141 
Total other income  3,125  1,764 
Other expense:       
Salaries and employee benefits  6,945  4,987 
Commission-based compensation  875  796 
Occupancy and equipment  1,135  836 
Core deposit intangible amortization  191  111 
Other operating expense  2,907  2,560 
Total other expense  12,053  9,290 
Earnings before income taxes  6,202  3,479 
Income tax expense  2,083  1,092 
Net earnings  4,119  2,387 
Less: Net earnings attributable to noncontrolling interest  340  466 
Net earnings attributable to National Commerce Corporation $3,779 $1,921 
        
Weighted average common and diluted shares outstanding   
Basic  10,855,871  7,701,663 
Diluted  11,039,208  7,801,577 
    
Basic earnings per common share $0.35 $0.25 
Diluted earnings per common share $0.34 $0.25 
    

 

NATIONAL COMMERCE CORPORATION 
Average Balance Sheets and Net Interest Analysis 
  
                 
 For the Three Months Ended 
(Dollars in thousands)March 31, 2016December 31, 2015September 30, 2015June 30, 2015March 31, 2015 
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$1,354,368 $17,373  5.16%$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% 
Mortgage loans held-for-sale 10,503  115  4.40  9,697  84  3.44  9,890  104  4.17  11,180  112  4.02  9,487  85  3.63  
Securities:                
Taxable securities 61,764  412  2.68  48,097  370  3.05  31,132  259  3.30  32,402  269  3.33  35,540  256  2.92  
Tax-exempt securities 26,041  317  4.90  21,982  275  4.96  17,245  217  4.99  14,297  181  5.08  4,750  67  5.72  
Cash balances in other banks   151,318    217  0.58    191,077    168  0.35    166,715    129  0.31    112,081    105  0.38    114,579    103  0.36  
Total interest-earning assets 1,603,994 $  18,434  4.62  1,475,290 $  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  
Noninterest-earning assets   156,260        145,791        96,824        95,949        94,118      
Total assets$  1,760,254   $  1,621,081   $  1,314,029   $  1,210,282   $  1,162,037    
                                               
Interest-bearing liabilities                
Interest-bearing transaction accounts$204,339 $123  0.24%$196,140 $129  0.26%$182,056 $118  0.26%$157,261 $97  0.25%$159,706 $99  0.25% 
Savings and money market deposits 620,429  762  0.49  542,631  612  0.45  443,306  486  0.43  408,117  417  0.41  391,321  377  0.39  
Time deposits 306,106  684  0.90  291,399  654  0.89  228,298  476  0.83  208,388  447  0.86  209,016  442  0.86  
Federal Home Loan Bank and other borrowed money   10,959    81  2.97    22,104    112  2.01    22,000    111  2.00    22,000    110  2.01    22,000    109  2.01  
Total interest-bearing liabilities 1,141,833 $  1,650  0.58  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  
Noninterest-bearing deposits   386,674        354,812        254,402        233,136        232,497      
Total funding sources 1,528,507    1,407,086    1,130,062    1,028,902    1,014,540    
Noninterest-bearing liabilities 13,017    11,696    8,146    8,026    7,879    
Shareholders' equity   218,730      202,299      175,821      173,354      139,618    
 $  1,760,254   $  1,621,081   $  1,314,029   $  1,210,282   $  1,162,037    
Net interest rate spread     4.04%     3.89%     3.87%     4.06%     4.11% 
Net interest income/margin (taxable equivalent)  16,784  4.21%  15,089  4.06%  12,344  4.02%  11,712  4.22%  11,193  4.25% 
Tax equivalent adjustment    121      108      85      69      27   
Net interest income/margin $  16,663  4.18% $  14,981  4.03% $  12,259  4.00% $  11,643  4.19% $  11,166  4.24% 
                                               
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