INVESTOR RELATIONS

Press Release

National Commerce Corporation Announces Third Quarter 2016 Earnings

Company Release - 10/25/2016 6:30 PM ET

BIRMINGHAM, Ala., Oct. 25, 2016 (GLOBE NEWSWIRE) -- National Commerce Corporation (Nasdaq:NCOM) (the “Company” or “NCC”), the parent company of National Bank of Commerce, today reported third quarter 2016 net income to common shareholders of $4.8 million, compared to $2.5 million for the third quarter of 2015.  Diluted net earnings per share were $0.43 in the third quarter of 2016, compared to $0.39 in the second quarter of 2016 and $0.26 in the third quarter of 2015.  For the nine months ended September 30, 2016, NCC earned $12.9 million, or $1.17 in diluted earnings per share, up from $6.7 million, or $0.74 per diluted share, for the nine months ended September 30, 2015.

“I am pleased with the continued growth in our profitability in 2016, with another quarter of Return on Average Assets above 1.0% and year-to-date diluted earnings per share growth of 58%,” said John H. Holcomb, III, Chairman and Chief Executive Officer of the Company.  “Our asset quality, which is very important to the company’s ability to achieve its long term goals, also remains good, though we can never lose our focus on continued vigilance in that very critical component of our business.  Our third quarter loan growth was below our long term expectations for ourselves, in part due to some expected payoffs, so we need to continue our focus on attracting additional high quality customer relationships to our bank.”

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

  • Net Interest Margin (taxable equivalent) of 4.18%, up 0.16% from the 4.02% reported for the third quarter of 2015.  The margin decreased 0.05% compared to the 2016 second quarter.
  • Return on Average Assets of 1.08%, compared to 0.75% for the third quarter of 2015 and 1.00% for the second quarter of 2016. 
  • Return on Average Equity of 8.36%, compared to 5.62% for the third quarter of 2015 and 7.84% for the second quarter of 2016.
  • Return on Average Tangible Common Equity of 10.90%, compared to 6.85% for the third quarter of 2015 and 10.31% for the 2016 second quarter.
  • Third quarter 2016 loan growth (excluding mortgage loans held-for-sale) of $5.8 million; non-acquired loans grew $30.8 million in the quarter.   
  • Increase in deposits of $39.0 million.
  • $91.6 million in mortgage production, compared to $82.3 million for the third quarter of 2015.
  • $172.4 million in purchased volume in the factoring division, compared to $182.7 million for the third quarter of 2015.
  • Decrease in non-acquired non-performing assets to $2.4 million, from $2.7 million at June 30, 2016.
  • Annualized net charge-offs of 0.02% of average loans, compared to 0.03% for the third quarter of 2015.
  • Provision for loan losses of $0.4 million, compared to $0.9 million in the 2016 second quarter and $0.2 million in the third quarter of 2015. 
  • Ending tangible book value per share of $16.37.
  • Ending book value per share of $21.26.

The Company will host a live audio webcast conference call beginning at 8:30 a.m. Central Time on October 26, 2016 to discuss earnings and operating results for the third quarter of 2016.  Investors may call in (toll free) by dialing (844) 296-8205 (conference ID 90904212).  A replay of the conference call will be available until October 28, 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.

The Company’s management believes these above measures, each of which utilizes the concept of tangible common equity rather than total common equity, provide useful information to management and investors because they eliminate the impact of goodwill and other intangible assets created in an acquisition.  These measures are commonly used by investors when assessing financial institutions.

  • “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.  This measure is important to investors because it disaggregates the acquired and non-acquired loans and provides a measure that may be more comparable to a bank that has no acquired loans.  This measure also excludes the allowance and factored receivable balances at our Corporate Billing subsidiary, which is helpful to investors because of the somewhat unique nature of that business and the very rapid turnover of those receivables, and provides a measure that is more comparable to a bank that does not have a receivables factoring business.
  • “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 Atlanta, Georgia.  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
  September 30, June 30, March 31, December 31, September 30, 
   2016   2016   2016   2015   2015  
Earnings Summary                     
Interest income $18,836  $18,382  $18,313  $16,488  $13,450  
Interest expense  1,959   1,730   1,650   1,507   1,191  
Net interest income  16,877   16,652   16,663   14,981   12,259  
Provision for loan losses  373   901   1,533   631   201  
Other noninterest income (1)  4,002   3,357   3,125   2,136   2,353  
Merger/conversion-related expenses  160   12   138   395   122  
Other noninterest expense (2)  12,472   12,242   11,915   11,049   9,773  
Income before income taxes  7,874   6,854   6,202   5,042   4,516  
Income tax expense  2,639   2,072   2,083   1,667   1,453  
Net income before minority interest  5,235   4,782   4,119   3,375   3,063  
Net income attributable to minority interest  422   428   340   437   573  
Net income to common shareholders $4,813  $4,354  $3,779  $2,938  $2,490  
            
Weighted average common and diluted shares outstanding          
Basic  10,890,860   10,866,788   10,855,871   10,345,146   9,438,541  
Diluted  11,115,134   11,067,972   11,039,208   10,552,871   9,594,472  
            
Net earnings per common share           
Basic $0.44  $0.40  $0.35  $0.28  $0.26  
Diluted $0.43  $0.39  $0.34  $0.28  $0.26  
            
  September 30, June 30, March 31, December 31, September 30, 
Selected Performance Ratios  2016   2016   2016   2015   2015  
Return on average assets (ROAA) (3)  1.08 % 1.00 % 0.86 % 0.72 % 0.75 %
Return on average equity (ROAE)  8.36   7.84   6.95   5.76   5.62  
Return on average tangible common equity           
(ROATCE)  10.90   10.31   9.21   7.48   6.85  
Net interest margin - taxable equivalent  4.18   4.23   4.21   4.06   4.02  
Efficiency ratio  60.50   61.24   60.91   66.86   67.72  
Operating efficiency ratio (2)  59.73   61.18   60.21   64.55   66.88  
Noninterest income / average assets (annualized)  0.90   0.77   0.71   0.52   0.71  
Noninterest expense / average assets (annualized)  2.85   2.83   2.76   2.80   2.99  
Yield on loans  5.08   5.06   5.17   5.17   5.13  
Cost of total deposits  0.40 % 0.40 % 0.42 % 0.40 % 0.39 %
            
  September 30, June 30, March 31, December 31, September 30, 
Factoring Metrics  2016   2016   2016   2015   2015  
Recourse purchased volume $71,872  $68,567  $66,554  $74,922  $82,661  
Non-recourse purchased volume  100,486   98,550   112,196   97,142   100,055  
Total purchased volume $172,358  $167,117  $178,750  $172,064  $182,716  
Average turn (days)  38.13   39.92   38.16   39.68   37.97  
Net charge-offs / total purchased volume  0.05 % 0.07 % 0.27 % 0.12 % 0.06 %
Average discount rate  1.70 % 1.69 % 1.72 % 1.73 % 1.74 %
            
  September 30, June 30, March 31, December 31, September 30, 
Mortgage Metrics  2016   2016   2016   2015   2015  
Total production ($) $91,613  $91,466  $63,802  $58,903  $82,276  
Refinance (%)  30.4 % 17.2 % 18.2 % 26.0 % 19.1 %
Purchases (%)  69.6 % 82.8 % 81.8 % 74.0 % 80.9 %
            
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 
  As of
  September 30, June 30, March 31, December 31, September 30, 
Balance Sheet Highlights  2016   2016   2016   2015   2015  
Cash and cash equivalents $122,920  $86,163  $123,853  $212,457  $192,882  
Total securities  102,848   89,495   82,954   80,863   45,911  
Mortgage loans held-for-sale  7,810   19,468   12,529   15,020   7,926  
Acquired purchased credit-impaired loans  9,500   10,382   10,205   10,443   5,615  
Acquired non-purchased credit-impaired loans  323,125   346,685   356,305   370,872   123,730  
Nonacquired loans held for investment (4)  1,009,677   978,836   942,781   870,471   811,011  
CBI loans (factoring receivables)  70,066   70,673   74,248   67,628   74,780  
Total gross loans held for investment  1,412,368   1,406,576   1,383,539   1,319,414   1,015,136  
Allowance for loan losses  11,950   11,642   10,927   9,842   9,391  
Total intangibles  52,962   53,154   53,312   53,474   31,291  
Total assets  1,779,278   1,735,782   1,735,940   1,763,369   1,350,781  
Total deposits  1,499,879   1,460,877   1,498,197   1,514,458   1,141,837  
FHLB and other borrowings  7,000   7,000   7,000   22,000   22,000  
Subordinated debt  24,487   24,540   -   -   -  
Total liabilities  1,547,105   1,509,662   1,514,840   1,546,733   1,173,358  
Minority interest  7,357   7,362   7,275   7,372   7,508  
Common stock  109   109   109   108   94  
Total shareholders' equity  232,173   226,120   221,100   216,636   177,423  
Tangible common equity $178,788  $172,538  $167,447  $162,724  $145,558  
End of period common shares outstanding  10,920,423   10,870,033   10,861,487   10,824,969   9,438,541  
            
  As of and For the Three Months Ended
  September 30, June 30, March 31, December 31, September 30, 
Asset Quality Analysis  2016   2016   2016   2015   2015  
Nonacquired                      
Nonaccrual loans $19  $248  $184  $187  $829  
Other real estate and repossessed assets  2,068   2,068   2,792   3,873   3,562  
Loans past due 90 days or more and still accruing  358   406   452   252   148  
Total nonacquired nonperforming assets $2,445  $2,722  $3,428  $4,312  $4,539  
            
Acquired           
Nonaccrual loans $2,982  $3,099  $3,617  $3,508  $2,829  
Other real estate and repossessed assets  92   92   92   92   72  
Loans past due 90 days or more and still accruing  -   -   -   -   -  
Total acquired nonperforming assets $3,074  $3,191  $3,709  $3,600  $2,901  
            
Selected asset quality ratios           
Nonperforming assets / Assets  0.31 % 0.34 % 0.41 % 0.45 % 0.55 %
Nonperforming assets / (Loans + OREO + repossessed assets) 0.39   0.42   0.51   0.60   0.73  
Net charge-offs (recoveries) to average loans (annualized) 0.02   0.05   0.13   0.06   0.03  
Allowance for loan losses to total loans  0.85   0.83   0.79   0.75   0.93  
Nonacquired nonperforming assets / (Nonacquired loans +          
nonacquired OREO + nonacquired repossessed assets) (4) 0.24   0.28   0.36   0.49   0.56  
Allowance for loan losses to nonacquired nonperforming           
loans  3,169.76   1,780.12   1,718.08   2,241.91   961.21  
Allowance for loan losses to nonacquired loans (4)  1.13 % 1.14 % 1.11 % 1.07 % 1.10 %
            
  For the Three Months Ended
  September 30, June 30, March 31, December 31, September 30, 
Taxable Equivalent Yields/Rates  2016   2016   2016   2015   2015  
Interest income:                     
Loans  5.08 % 5.06 % 5.17 % 5.17 % 5.13 %
Mortgage loans held-for-sale  4.12   3.51   4.40   3.44   4.17  
Interest on securities:           
Taxable  2.55   1.95   2.68   3.05   3.30  
Non-taxable  4.85   4.93   4.90   4.96   4.99  
Cash balances in other banks  0.60   0.65   0.58   0.35   0.31  
Total interest-earning assets  4.66   4.67   4.63   4.46   4.41  
            
Interest expense:           
Interest on deposits  0.54   0.54   0.56   0.54   0.50  
Interest on FHLB and other borrowings  4.04   4.08   2.97   2.01   2.00  
Interest on subordinated debt  6.32   6.34   -   -   -  
Total interest-bearing liabilities  0.68   0.62   0.58   0.57   0.54  
Net interest spread  3.98   4.05   4.05   3.89   3.87  
Net interest margin  4.18 % 4.23 % 4.21 % 4.06 % 4.02 %
            
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 
  As of
  September 30, June 30, March 31, December 31, September 30, 
   2016   2016   2016   2015   2015  
Shareholders' Equity and Capital Ratios                     
Tier 1 Leverage Ratio  9.74 % 9.51 % 9.13 % 9.68 % 10.39 %
Tier 1 Common Capital Ratio  11.63   11.25   11.18   11.18   12.88  
Tier 1 Risk-based Capital Ratio  11.63   11.25   11.18   11.18   12.88  
Total Risk-based Capital Ratio  14.18   13.79   11.97   11.91   13.79  
Equity / Assets  13.05   13.03   12.74   12.29   13.13  
Tangible common equity to tangible assets  10.36 % 10.25 % 9.95 % 9.52 % 11.03 %
Book value per share $21.26  $20.80  $20.36  $20.01  $18.80  
Tangible book value per share $16.37  $15.87  $15.42  $15.03  $15.42  
            
  For the Three Months Ended
  September 30, June 30, March 31, December 31, September 30, 
   2016   2016   2016   2015   2015  
Detail of other noninterest expense                     
Salaries and employee benefits $6,948  $6,907  $6,945  $6,077  $5,186  
Commission-based compensation  1,104   1,036   875   844   1,048  
Occupancy and equipment expense  1,181   1,131   1,135   1,048   871  
Data processing expenses  572   618   667   511   464  
Advertising and marketing expenses  198   191   160   19   124  
Legal fees  182   179   122   173   177  
FDIC insurance assessments  246   257   263   242   205  
Property and casualty insurance premiums  90   166   223   169   143  
Accounting and audit expenses  252   249   250   332   211  
Consulting and other professional expenses  330   184   243   387   238  
Telecommunications expenses  146   140   159   132   144  
ORE, Repo asset and other collection expenses  142   89   59   256   79  
Core deposit intangible amortization  191   192   191   175   111  
Other noninterest expense    1,050     915     761     1,079     894  
Total noninterest expense $  12,632  $  12,254  $  12,053  $  11,444  $  9,895  
                      
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
 
  As of
  September 30, June 30, March 31, December 31, September 30, 
Non-GAAP Reconciliation  2016   2016   2016   2015   2015  
Total shareholders' equity $232,173  $226,120  $221,100  $216,636  $177,423  
Less: intangible assets  52,962   53,154   53,312   53,474   31,291  
Less: minority interest not included in intangible assets    423     428     341     438     574  
Tangible common equity $178,788  $172,538  $167,447  $162,724  $145,558  
Common shares outstanding at year or period end  10,920,423   10,870,033   10,861,487   10,824,969   9,438,541  
Tangible book value per share $  16.37  $  15.87  $  15.42  $  15.03  $  15.42  
Total assets at end of period $1,779,278  $1,735,782  $1,735,940  $1,763,369  $1,350,781  
Less: intangible assets    52,962     53,154     53,312     53,474     31,291  
Adjusted total assets at end of period $1,726,316  $1,682,628  $1,682,628  $1,709,895  $1,319,490  
Tangible common equity to tangible assets    10.36 %   10.25 %   9.95 %   9.52 %   11.03 %
Total allowance for loan losses $11,950  $11,642  $10,927  $9,842  $9,391  
Less: allowance for loan losses attributable to           
CBI (factoring receivables)    500     500     500     500     500  
Adjusted allowance for loan losses at end of period $11,450  $11,142  $10,427  $9,342  $8,891  
Nonacquired loans held for investment (4)  1,009,677   978,836   942,781   870,471   811,011  
Allowance for loan losses to nonacquired loans (4)    1.13 %   1.14 %   1.11 %   1.07 %   1.10 %
                      
  For the Three Months Ended
  September 30, June 30, March 31, December 31, September 30, 
   2016   2016   2016   2015   2015  
Non-GAAP Reconciliation                     
Total average shareholders' equity $228,953  $223,357  $218,730  $202,299  $175,821  
Less: average intangible assets  53,056   53,234   53,388   46,113   31,158  
Less: average minority interest not included           
in intangible assets    282     284     231     331     371  
Average tangible common equity $175,615  $169,839  $165,111  $155,855  $144,292  
Net income to common shareholders  4,813   4,354   3,779   2,938   2,490  
Return on average tangible common equity (ROATCE)  10.90 %   10.31 %   9.21 %   7.48 %   6.85 %
Efficiency ratio:                     
Net interest income $16,877  $16,652  $16,663  $14,981  $12,259  
Total noninterest income  4,002   3,357   3,125   2,136   2,353  
Less:  gain (loss) on sale of securities    -     -     -     -     -  
Operating revenue $  20,879  $  20,009  $  19,788  $  17,117  $  14,612  
Expenses:                     
Total noninterest expenses $  12,632  $  12,254  $  12,053  $  11,444  $  9,895  
Efficiency ratio    60.50 %   61.24 %   60.91 %   66.86 %   67.72 %
Operating efficiency ratio:                     
Net interest income $16,877  $16,652  $16,663  $14,981  $12,259  
Total noninterest income  4,002   3,357   3,125   2,136   2,353  
Less:  gain (loss) on sale of securities    -     -     -     -     -  
Operating revenue $  20,879  $  20,009  $  19,788  $  17,117  $  14,612  
Expenses:                     
Total noninterest expenses $12,632  $12,254  $12,053  $11,444  $9,895  
Less: merger/conversion-related expenses    160     12     138     395     122  
Adjusted noninterest expenses $  12,472  $  12,242  $  11,915  $  11,049  $  9,773  
Operating efficiency ratio    59.73 %   61.18 %   60.21 %   64.55 %   66.88 %
                      
(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
 September 30, 2016
 December 31, 2015
 
Cash and due from banks$27,187 $27,173 
Interest-bearing deposits with banks   95,733    185,284 
Cash and cash equivalents 122,920  212,457 
Investment securities held-to-maturity (fair value of $27,594 and $27,843 at September 30, 2016  
and December 31, 2015, respectively) 26,666  27,458 
Investment securities available-for-sale 76,182  53,405 
Other investments 7,715  6,235 
Mortgage loans held-for-sale 7,810  15,020 
Loans, net of unearned income 1,412,368  1,319,414 
Less: allowance for loan losses   11,950    9,842 
Loans, net 1,400,418  1,309,572 
Premises and equipment, net 32,158  31,432 
Accrued interest receivable 3,442  3,510 
Bank-owned life insurance 27,837  27,223 
Other real estate 2,160  3,965 
Deferred tax assets, net 13,820  14,190 
Goodwill 50,748  50,686 
Core deposit intangible, net 2,214  2,788 
Other assets   5,188    5,428 
Total assets$  1,779,278 $  1,763,369 
       
 Liabilities and Shareholders’ Equity 
Deposits:  
Noninterest-bearing demand$382,924 $382,946 
Interest-bearing demand 220,488  202,649 
Savings and money market 618,040  611,887 
Time   278,427    316,976 
Total deposits 1,499,879  1,514,458 
Federal Home Loan Bank advances 7,000  22,000 
Subordinated debt 24,487  - 
Accrued interest payable 1,083  627 
Other liabilities   14,656    9,648 
Total liabilities   1,547,105    1,546,733 
Commitments and contingencies      
Shareholders’ equity:  
Preferred stock, 250,000 shares authorized, no shares issued or outstanding -  - 
Common stock, $0.01 par value, 30,000,000 shares authorized, 10,870,033 and 10,824,969  
shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively 109  108 
Additional paid-in capital 204,551  202,456 
Retained earnings 19,098  6,152 
Accumulated other comprehensive income   1,058    548 
Total shareholders' equity attributable to National Commerce Corporation 224,816  209,264 
Noncontrolling interest   7,357    7,372 
Total shareholders' equity   232,173    216,636 
Total liabilities and shareholders' equity$  1,779,278 $  1,763,369 
       

 

NATIONAL COMMERCE CORPORATION
Unaudited Consolidated Statements of Earnings
(In thousands, except per share data)
      
 For the Three Months Ended For the Nine Months Ended
 September 30, September 30,
  2016  2015   2016  2015 
Interest and dividend income:             
Interest and fees on loans$17,991 $12,925  $53,143 $36,943 
Interest and dividends on taxable investment securities 493  259   1,288  784 
Interest on non-taxable investment securities 200  137   601  293 
Interest on interest-bearing deposits and federal funds sold   152    129     499    337 
Total interest income 18,836  13,450   55,531  38,357 
Interest expense:     
Interest on deposits 1,499  1,080   4,544  2,959 
Interest on borrowings 71  111   223  330 
Interest on subordinated debt   389    -     572    - 
Total interest expense   1,959    1,191     5,339    3,289 
Net interest income 16,877  12,259   50,192  35,068 
Provision for loan losses   373    201     2,807    482 
Net interest income after provision for loan losses 16,504  12,058   47,385  34,586 
Other income:     
Service charges and fees on deposit accounts 511  311   1,496  886 
Mortgage origination and fee income 2,245  1,439   5,264  4,215 
Merchant sponsorship revenue 542  305   1,555  496 
Income from bank-owned life insurance 206  86