National Commerce Corporation (Nasdaq:NCOM) (“NCC” or the
“Company”), the parent company of National Bank of Commerce
(“NBC”), today reported second quarter 2018 net income to common
shareholders of $10.7 million, compared to $6.4 million for the
second quarter of 2017. Diluted net earnings per share were
$0.61 in the second quarter of 2018, compared to $0.52 in the first
quarter of 2018 and $0.48 in the second quarter of 2017.
“We are pleased to report our second quarter
results,” said Richard Murray, IV, President and Chief Executive
Officer of the Company. “While we had good earnings
performance, higher loan payoffs offset solid loan production
during the quarter, resulting in lower overall loan growth.
Our 4.8% annualized growth in average loans for the quarter is
below our long-term expectation. However, we did have a good
quarter of deposit growth. We also remain pleased with our
asset quality.”
During the second quarter of 2018, the Company
announced the execution of a definitive agreement to acquire
Landmark Bancshares, Inc. (“Landmark”) and its wholly owned
subsidiary, First Landmark Bank, headquartered in Marietta,
Georgia. While all required regulatory approvals with respect to
the transaction have been received, the transaction remains subject
to the approval of Landmark’s shareholders and the satisfaction or
waiver of certain other closing conditions. On July 1, 2018,
the Company also successfully completed its previously announced
acquisition of Premier Community Bank of Florida (“Premier”),
headquartered in Bradenton, Florida. Because the acquisition
of Premier occurred after the end of the quarter, the Company’s
reported results for the second quarter do not include the results
of operations of Premier.
Several important measures from the second
quarter of 2018 are as follows:
- Net Interest Margin (taxable equivalent) of 4.77% for the
second quarter of 2018, compared to 4.80% for the first quarter of
2018 and 4.34% for the second quarter of 2017. The second
quarter 2018 margin decreased 0.03% compared to the first quarter
of 2018. Loan yields during the second quarter of 2018 were
higher due to an increase in interest rates during the second
quarter of 2018. Excluding the impact of accretion from both
periods, the 2018 second quarter margin would have been 4.50%, and
the 2018 first quarter margin would have been 4.45%. The
higher loan yields during the second quarter of 2018 compared to
the 2018 first quarter were offset by an increase in the rate paid
on interest-bearing liabilities of 0.17%.
- Return on Average Assets (“ROAA”) of 1.36% for the second
quarter of 2018, compared to 1.18% for the first quarter of 2018
and 1.06% for the second quarter of 2017.
- Return on Average Tangible Common Equity (“ROATCE”) of 12.73%
for the second quarter of 2018, compared to 11.27% for the first
quarter of 2018 and 11.49% for the second quarter of
2017.
- Second quarter 2018 loan growth (excluding mortgage loans
held-for-sale) of $16.5 million. Excluding factored
receivables in the Company’s factoring subsidiary, Corporate
Billing, LLC, second quarter 2018 loan growth was approximately
$11.3 million.
- Deposits increased $92.2 million during the second quarter of
2018.
- $149.6 million in 2018 second quarter mortgage production,
compared to $114.9 million during the first quarter of 2018 and
$133.1 million during the second quarter of 2017.
- $309.5 million in 2018 second quarter purchased volume in the
factoring division, compared to $283.0 million for the first
quarter of 2018 and $251.0 million for the second quarter of
2017.
- Non-acquired non-performing assets of $1.0 million at June 30,
2018, a decrease from $1.1 million at March 31, 2018 and $1.2
million at June 30, 2017.
- Annualized net charge-offs of 0.11% of average loans
outstanding for the second quarter of 2018, compared to net
charge-offs of 0.08% for the first quarter of 2018 and 0.07% for
the second quarter of 2017.
- Provision for loan losses of $856 thousand for the second
quarter of 2018, compared to $1.3 million for the first quarter of
2018 and $1.2 million for the second quarter of
2017.
- Ending tangible book value per share of $19.86.
- Ending book value per share of $29.97.
The Company will host a live audio webcast
conference call beginning at 8:30 a.m. Central Time on July 25,
2018 to discuss earnings and operating results for the 2018 second
quarter. Investors may call in (toll free) by dialing (844)
296-8205 (conference ID 5084466). A replay of the conference
call will be available until July 27, 2018 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, 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 defined as 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 that these
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.
- “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 the Company’s
financial condition, results of operations and cash flows computed
in accordance with GAAP; however, the Company acknowledges that the
non-GAAP financial measures have a number of limitations. As
such, the Company 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. Its wholly-owned subsidiary, National
Bank of Commerce, provides a broad array of financial services for
commercial and consumer customers through seven full-service
banking offices in Alabama, twenty-five full-service banking
offices in Florida and two full-service banking offices in the
Atlanta, Georgia metro area. National Bank of Commerce
conducts business under a number of trade names unique to its local
markets, including United Legacy Bank, Reunion Bank of Florida,
Private Bank of Buckhead, Private Bank of Decatur, PrivatePlus
Mortgage, Patriot Bank, FirstAtlantic Bank and Premier Community
Bank of Florida.
Additionally, National Bank of Commerce owns a
majority stake in Corporate Billing, LLC, a transaction-based
finance company headquartered 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
StatementsCertain 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,
2017 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 or as otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Earnings Summary |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
37,713 |
|
|
$ |
36,320 |
|
$ |
30,224 |
|
|
$ |
28,202 |
|
$ |
26,466 |
|
|
Interest
expense |
|
|
4,310 |
|
|
|
3,420 |
|
|
2,824 |
|
|
|
2,561 |
|
|
2,513 |
|
|
Net
interest income |
|
|
33,403 |
|
|
|
32,900 |
|
|
27,400 |
|
|
|
25,641 |
|
|
23,953 |
|
|
Provision for loan losses |
|
|
856 |
|
|
|
1,318 |
|
|
1,478 |
|
|
|
1,105 |
|
|
1,155 |
|
|
Gain
(loss) on sale of securities |
|
|
2 |
|
|
|
191 |
|
|
(119 |
) |
|
|
- |
|
|
28 |
|
|
Other
noninterest income (1) |
|
|
4,673 |
|
|
|
4,517 |
|
|
4,744 |
|
|
|
4,546 |
|
|
5,072 |
|
|
Merger/conversion-related expenses (2) |
|
|
542 |
|
|
|
2,396 |
|
|
1,172 |
|
|
|
417 |
|
|
344 |
|
|
Other
noninterest expense (3) |
|
|
22,077 |
|
|
|
21,579 |
|
|
17,838 |
|
|
|
17,570 |
|
|
17,393 |
|
|
Income before income taxes |
|
|
14,603 |
|
|
|
12,315 |
|
|
11,537 |
|
|
|
11,095 |
|
|
10,161 |
|
|
Income
tax expense |
|
|
3,303 |
|
|
|
2,776 |
|
|
3,890 |
|
|
|
3,828 |
|
|
3,281 |
|
|
Deferred
tax asset write-down |
|
|
- |
|
|
|
- |
|
|
6,231 |
|
|
|
- |
|
|
- |
|
|
Total income tax expense |
|
|
3,303 |
|
|
|
2,776 |
|
|
10,121 |
|
|
|
3,828 |
|
|
3,281 |
|
|
Net income before minority interest |
|
|
11,300 |
|
|
|
9,539 |
|
|
1,416 |
|
|
|
7,267 |
|
|
6,880 |
|
|
Net income attributable to minority interest |
|
|
616 |
|
|
|
456 |
|
|
413 |
|
|
|
570 |
|
|
431 |
|
|
Net
income to common shareholders |
|
$ |
10,684 |
|
|
$ |
9,083 |
|
$ |
1,003 |
|
|
$ |
6,697 |
|
$ |
6,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common and diluted shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
17,236,525 |
|
|
|
17,209,551 |
|
|
14,783,597 |
|
|
|
14,300,974 |
|
|
13,190,582 |
|
|
Diluted |
|
|
17,642,926 |
|
|
|
17,612,298 |
|
|
15,173,984 |
|
|
|
14,679,546 |
|
|
13,551,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.62 |
|
|
$ |
0.53 |
|
$ |
0.07 |
|
|
$ |
0.47 |
|
$ |
0.49 |
|
|
Diluted |
|
$ |
0.61 |
|
|
$ |
0.52 |
|
$ |
0.07 |
|
|
$ |
0.46 |
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Selected Performance Ratios |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Return
on average assets (ROAA) (4) |
|
|
1.36 |
|
% |
|
1.18 |
% |
|
0.15 |
|
% |
|
1.08 |
% |
|
1.06 |
% |
|
Return
on average equity (ROAE) |
|
|
8.39 |
|
|
|
7.35 |
|
|
0.99 |
|
|
|
7.06 |
|
|
7.86 |
|
|
Return
on average tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
(ROATCE) |
|
|
12.73 |
|
|
|
11.27 |
|
|
1.41 |
|
|
|
9.94 |
|
|
11.49 |
|
|
Net
interest margin - taxable equivalent |
|
|
4.77 |
|
|
|
4.80 |
|
|
4.63 |
|
|
|
4.58 |
|
|
4.34 |
|
|
Efficiency ratio |
|
|
59.40 |
|
|
|
64.08 |
|
|
59.14 |
|
|
|
59.59 |
|
|
61.11 |
|
|
Operating efficiency ratio (3) |
|
|
57.98 |
|
|
|
57.67 |
|
|
55.49 |
|
|
|
58.20 |
|
|
59.92 |
|
|
Noninterest income /
average assets (annualized) |
|
|
0.60 |
|
|
|
0.59 |
|
|
0.72 |
|
|
|
0.73 |
|
|
0.83 |
|
|
Noninterest expense / average assets (annualized) |
|
|
2.88 |
|
|
|
3.12 |
|
|
2.88 |
|
|
|
2.90 |
|
|
2.91 |
|
|
Yield on
loans |
|
|
5.74 |
|
|
|
5.66 |
|
|
5.45 |
|
|
|
5.45 |
|
|
5.38 |
|
|
Cost of
total deposits |
|
|
0.60 |
|
% |
|
0.47 |
% |
|
0.43 |
|
% |
|
0.41 |
% |
|
0.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Factoring Metrics |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Recourse
purchased volume |
|
$ |
127,680 |
|
|
$ |
115,970 |
|
$ |
108,628 |
|
|
$ |
104,304 |
|
$ |
101,295 |
|
|
Non-recourse purchased volume |
|
|
181,835 |
|
|
|
167,015 |
|
|
158,565 |
|
|
|
155,157 |
|
|
149,740 |
|
|
Total
purchased volume |
|
$ |
309,515 |
|
|
$ |
282,985 |
|
$ |
267,193 |
|
|
$ |
259,461 |
|
$ |
251,035 |
|
|
Average
turn (days) |
|
|
42.85 |
|
|
|
42.25 |
|
|
43.59 |
|
|
|
41.11 |
|
|
38.47 |
|
|
Net
charge-offs / total purchased volume |
|
|
0.06 |
|
% |
|
0.14 |
% |
|
0.18 |
|
% |
|
0.05 |
% |
|
0.12 |
% |
|
Average
discount rate |
|
|
1.63 |
|
% |
|
1.64 |
% |
|
1.59 |
|
% |
|
1.58 |
% |
|
1.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Mortgage Metrics |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Total
production ($) |
|
$ |
149,640 |
|
|
$ |
114,850 |
|
$ |
120,969 |
|
|
$ |
122,656 |
|
$ |
133,063 |
|
|
Refinance (%) |
|
|
17.0 |
|
% |
|
27.8 |
% |
|
22.1 |
|
% |
|
23.6 |
% |
|
24.0 |
% |
|
Purchases (%) |
|
|
83.0 |
|
% |
|
72.2 |
% |
|
77.9 |
|
% |
|
76.4 |
% |
|
76.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Balance Sheet Highlights |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Cash and
cash equivalents |
|
$ |
217,773 |
|
|
$ |
132,825 |
|
$ |
235,288 |
|
|
$ |
134,549 |
|
$ |
224,760 |
|
|
Total
investment securities |
|
|
161,542 |
|
|
|
169,868 |
|
|
111,396 |
|
|
|
111,158 |
|
|
101,569 |
|
|
Mortgage
loans held-for-sale |
|
|
24,455 |
|
|
|
21,077 |
|
|
29,191 |
|
|
|
15,278 |
|
|
19,482 |
|
|
Acquired
purchased credit-impaired loans |
|
|
26,942 |
|
|
|
29,359 |
|
|
25,696 |
|
|
|
26,924 |
|
|
21,065 |
|
|
Acquired
non-purchased credit-impaired loans |
|
|
714,359 |
|
|
|
783,556 |
|
|
538,276 |
|
|
|
561,118 |
|
|
490,198 |
|
|
Nonacquired loans held for investment (5) |
|
|
1,614,376 |
|
|
|
1,531,475 |
|
|
1,455,376 |
|
|
|
1,349,254 |
|
|
1,252,970 |
|
|
CBI
loans (factoring receivables) |
|
|
141,455 |
|
|
|
136,194 |
|
|
118,710 |
|
|
|
119,110 |
|
|
114,361 |
|
|
Total
gross loans held for investment |
|
|
2,497,132 |
|
|
|
2,480,584 |
|
|
2,138,058 |
|
|
|
2,056,406 |
|
|
1,878,594 |
|
|
Allowance for loan losses |
|
|
15,997 |
|
|
|
15,839 |
|
|
14,985 |
|
|
|
14,264 |
|
|
13,407 |
|
|
Total
intangibles |
|
|
173,590 |
|
|
|
174,225 |
|
|
117,849 |
|
|
|
119,688 |
|
|
103,270 |
|
|
Total
assets |
|
|
3,214,367 |
|
|
|
3,113,766 |
|
|
2,737,676 |
|
|
|
2,549,134 |
|
|
2,418,052 |
|
|
Total
deposits |
|
|
2,643,713 |
|
|
|
2,551,517 |
|
|
2,285,831 |
|
|
|
2,097,373 |
|
|
2,004,528 |
|
|
FHLB and
other borrowings |
|
|
7,000 |
|
|
|
7,000 |
|
|
7,000 |
|
|
|
7,941 |
|
|
7,000 |
|
|
Subordinated debt |
|
|
24,580 |
|
|
|
24,567 |
|
|
24,553 |
|
|
|
24,540 |
|
|
24,527 |
|
|
Total
liabilities |
|
|
2,697,563 |
|
|
|
2,608,040 |
|
|
2,337,718 |
|
|
|
2,150,541 |
|
|
2,054,792 |
|
|
Minority
interest |
|
|
7,551 |
|
|
|
7,391 |
|
|
7,348 |
|
|
|
7,504 |
|
|
7,366 |
|
|
Common
stock |
|
|
172 |
|
|
|
172 |
|
|
148 |
|
|
|
148 |
|
|
141 |
|
|
Total
shareholders' equity |
|
|
516,804 |
|
|
|
505,726 |
|
|
399,958 |
|
|
|
398,593 |
|
|
363,260 |
|
|
Tangible
common equity |
|
$ |
342,597 |
|
|
$ |
331,044 |
|
$ |
281,695 |
|
|
$ |
278,335 |
|
$ |
259,558 |
|
|
End of
period common shares outstanding |
|
|
17,246,659 |
|
|
|
17,229,043 |
|
|
14,788,436 |
|
|
|
14,777,230 |
|
|
14,070,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the Three Months
Ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Asset Quality Analysis |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Nonacquired |
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
294 |
|
|
$ |
367 |
|
$ |
82 |
|
|
$ |
70 |
|
$ |
50 |
|
|
Other
real estate and repossessed assets |
|
|
340 |
|
|
|
- |
|
|
- |
|
|
|
150 |
|
|
- |
|
|
Loans
past due 90 days or more and still accruing |
|
|
408 |
|
|
|
723 |
|
|
677 |
|
|
|
1,690 |
|
|
1,172 |
|
|
Total
nonacquired nonperforming assets |
|
$ |
1,042 |
|
|
$ |
1,090 |
|
$ |
759 |
|
|
$ |
1,910 |
|
$ |
1,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
2,461 |
|
|
$ |
2,412 |
|
$ |
2,640 |
|
|
$ |
2,625 |
|
$ |
2,827 |
|
|
Other
real estate and repossessed assets |
|
|
999 |
|
|
|
999 |
|
|
1,094 |
|
|
|
1,021 |
|
|
- |
|
|
Loans
past due 90 days or more and still accruing |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
Total
acquired nonperforming assets |
|
$ |
3,460 |
|
|
$ |
3,411 |
|
$ |
3,734 |
|
|
$ |
3,646 |
|
$ |
2,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected asset quality ratios |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets / Assets |
|
|
0.14 |
|
% |
|
0.14 |
% |
|
0.16 |
|
% |
|
0.22 |
% |
|
0.17 |
% |
|
Nonperforming assets / (Loans + OREO + repossessed assets) |
|
0.18 |
|
|
|
0.18 |
|
|
0.21 |
|
|
|
0.27 |
|
|
0.22 |
|
|
Net charge-offs (recoveries) to average loans (annualized) |
|
0.11 |
|
|
|
0.08 |
|
|
0.14 |
|
|
|
0.05 |
|
|
0.07 |
|
|
Allowance for loan losses to total loans |
|
|
0.64 |
|
|
|
0.64 |
|
|
0.70 |
|
|
|
0.69 |
|
|
0.71 |
|
|
Nonacquired
nonperforming assets / (Nonacquired loans + |
|
|
|
|
|
|
|
|
|
|
|
nonacquired OREO + nonacquired repossessed assets)
(5) |
|
0.06 |
|
|
|
0.07 |
|
|
0.05 |
|
|
|
0.14 |
|
|
0.10 |
|
|
Allowance for loan
losses / (Nonacquired nonaccrual loans + |
|
|
|
|
|
|
|
|
|
|
|
|
nonacquired
loans past due 90 days or more and still accruing) |
|
|
2,278.77 |
|
|
|
1,453.12 |
|
|
1,974.31 |
|
|
|
810.45 |
|
|
1,097.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Additional Information - Allowance for Loan
Losses |
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Allowance
for loan losses excluding CBI loans (factoring receivables) |
|
15,397 |
|
|
|
15,239 |
|
|
14,385 |
|
|
|
13,764 |
|
|
12,907 |
|
|
Nonacquired loans held for investment (5) |
|
|
1,614,376 |
|
|
|
1,531,475 |
|
|
1,455,376 |
|
|
|
1,349,254 |
|
|
1,252,970 |
|
|
Allowance
for loan losses allocated to CBI loans (factoring receivables) |
|
600 |
|
|
|
600 |
|
|
600 |
|
|
|
500 |
|
|
500 |
|
|
CBI
loans (factoring receivables) |
|
|
141,455 |
|
|
|
136,194 |
|
|
118,710 |
|
|
|
119,110 |
|
|
114,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Taxable Equivalent Yields/Rates |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
5.74 |
|
% |
|
5.66 |
% |
|
5.45 |
|
% |
|
5.45 |
% |
|
5.38 |
% |
|
Mortgage loans held-for-sale |
|
|
3.71 |
|
|
|
4.85 |
|
|
2.96 |
|
|
|
3.56 |
|
|
3.72 |
|
|
Interest on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
3.14 |
|
|
|
3.11 |
|
|
3.09 |
|
|
|
3.03 |
|
|
2.98 |
|
|
Non-taxable |
|
|
4.23 |
|
|
|
4.06 |
|
|
4.81 |
|
|
|
4.86 |
|
|
4.91 |
|
|
Cash
balances in other banks |
|
|
1.80 |
|
|
|
1.55 |
|
|
1.37 |
|
|
|
1.32 |
|
|
1.09 |
|
|
Funds
sold |
|
|
- |
|
|
|
1.38 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
Total
interest-earning assets |
|
|
5.38 |
|
|
|
5.29 |
|
|
5.10 |
|
|
|
5.04 |
|
|
4.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
0.84 |
|
|
|
0.67 |
|
|
0.62 |
|
|
|
0.59 |
|
|
0.57 |
|
|
Interest on FHLB and other borrowings |
|
|
3.99 |
|
|
|
4.00 |
|
|
3.82 |
|
|
|
3.95 |
|
|
4.01 |
|
|
Interest on subordinated debt |
|
|
6.30 |
|
|
|
6.41 |
|
|
6.27 |
|
|
|
6.27 |
|
|
6.36 |
|
|
Total interest-bearing liabilities |
|
|
0.93 |
|
|
|
0.76 |
|
|
0.73 |
|
|
|
0.70 |
|
|
0.68 |
|
|
Net interest spread |
|
|
4.45 |
|
|
|
4.53 |
|
|
4.37 |
|
|
|
4.34 |
|
|
4.11 |
|
|
Net interest margin |
|
|
4.77 |
|
% |
|
4.80 |
% |
|
4.63 |
|
% |
|
4.58 |
% |
|
4.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Shareholders' Equity and Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
leverage ratio |
|
|
11.24 |
|
% |
|
10.98 |
% |
|
10.89 |
|
% |
|
11.42 |
% |
|
10.69 |
% |
|
Tier 1
common capital ratio |
|
|
13.44 |
|
|
|
13.03 |
|
|
12.54 |
|
|
|
12.78 |
|
|
13.17 |
|
|
Tier 1
risk-based capital ratio |
|
|
13.44 |
|
|
|
13.03 |
|
|
12.54 |
|
|
|
12.78 |
|
|
13.17 |
|
|
Total
risk-based capital ratio |
|
|
15.06 |
|
|
|
14.66 |
|
|
14.37 |
|
|
|
14.64 |
|
|
15.18 |
|
|
Equity /
Assets |
|
|
16.08 |
|
|
|
16.24 |
|
|
14.61 |
|
|
|
15.64 |
|
|
15.02 |
|
|
Tangible
common equity to tangible assets |
|
|
11.27 |
|
% |
|
11.26 |
% |
|
10.75 |
|
% |
|
11.46 |
% |
|
11.21 |
% |
|
Book
value per share |
|
$ |
29.97 |
|
|
$ |
29.35 |
|
$ |
27.05 |
|
|
$ |
26.97 |
|
$ |
25.82 |
|
|
Tangible
book value per share |
|
$ |
19.86 |
|
|
$ |
19.21 |
|
$ |
19.05 |
|
|
$ |
18.84 |
|
$ |
18.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Detail of Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges and fees on deposit accounts |
|
$ |
1,029 |
|
|
$ |
1,012 |
|
$ |
733 |
|
|
$ |
671 |
|
$ |
640 |
|
|
Mortgage
origination and fee income |
|
|
2,262 |
|
|
|
1,895 |
|
|
2,450 |
|
|
|
2,780 |
|
|
3,154 |
|
|
Merchant
sponsorship revenue |
|
|
675 |
|
|
|
720 |
|
|
592 |
|
|
|
622 |
|
|
602 |
|
|
Income
from bank-owned life insurance |
|
|
276 |
|
|
|
286 |
|
|
210 |
|
|
|
210 |
|
|
219 |
|
|
Wealth
management fees |
|
|
15 |
|
|
|
15 |
|
|
11 |
|
|
|
12 |
|
|
14 |
|
|
(Loss)
gain on sale of other real estate |
|
|
(32 |
) |
|
|
171 |
|
|
(66 |
) |
|
|
6 |
|
|
105 |
|
|
Gain
(loss) on sale of investments |
|
|
2 |
|
|
|
191 |
|
|
(119 |
) |
|
|
- |
|
|
28 |
|
|
Other
noninterest income |
|
|
448 |
|
|
|
418 |
|
|
814 |
|
|
|
245 |
|
|
338 |
|
|
Total noninterest income |
|
$ |
4,675 |
|
|
$ |
4,708 |
|
$ |
4,625 |
|
|
$ |
4,546 |
|
$ |
5,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Detail of Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
$ |
12,498 |
|
|
$ |
12,460 |
|
$ |
10,016 |
|
|
$ |
9,804 |
|
$ |
9,663 |
|
|
Commission-based compensation |
|
|
1,825 |
|
|
|
1,501 |
|
|
1,700 |
|
|
|
1,748 |
|
|
1,684 |
|
|
Occupancy and equipment, net |
|
|
2,025 |
|
|
|
1,994 |
|
|
1,649 |
|
|
|
1,608 |
|
|
1,479 |
|
|
Data
processing expenses |
|
|
1,369 |
|
|
|
3,356 |
|
|
1,437 |
|
|
|
976 |
|
|
1,007 |
|
|
Advertising and marketing expenses |
|
|
361 |
|
|
|
268 |
|
|
349 |
|
|
|
309 |
|
|
327 |
|
|
Legal
fees |
|
|
496 |
|
|
|
160 |
|
|
219 |
|
|
|
204 |
|
|
193 |
|
|
FDIC
insurance assessments |
|
|
226 |
|
|
|
281 |
|
|
145 |
|
|
|
351 |
|
|
408 |
|
|
Property
and casualty insurance premiums |
|
|
251 |
|
|
|
224 |
|
|
253 |
|
|
|
229 |
|
|
209 |
|
|
Accounting and audit expenses |
|
|
332 |
|
|
|
335 |
|
|
209 |
|
|
|
288 |
|
|
294 |
|
|
Consulting and other professional expenses |
|
|
568 |
|
|
|
538 |
|
|
888 |
|
|
|
510 |
|
|
517 |
|
|
Telecommunications expenses |
|
|
227 |
|
|
|
229 |
|
|
217 |
|
|
|
203 |
|
|
169 |
|
|
ORE,
Repo asset and other collection expenses |
|
|
71 |
|
|
|
69 |
|
|
75 |
|
|
|
26 |
|
|
49 |
|
|
Core
deposit intangible amortization |
|
|
738 |
|
|
|
739 |
|
|
393 |
|
|
|
366 |
|
|
348 |
|
|
Other
noninterest expense |
|
|
1,632 |
|
|
|
1,821 |
|
|
1,460 |
|
|
|
1,365 |
|
|
1,390 |
|
|
Total noninterest expense |
|
$ |
22,619 |
|
|
$ |
23,975 |
|
$ |
19,010 |
|
|
$ |
17,987 |
|
$ |
17,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Non-GAAP Reconciliation |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Total
shareholders' equity |
|
$ |
516,804 |
|
|
$ |
505,726 |
|
$ |
399,958 |
|
|
$ |
398,593 |
|
$ |
363,260 |
|
|
Less:
intangible assets |
|
|
173,590 |
|
|
|
174,225 |
|
|
117,849 |
|
|
|
119,688 |
|
|
103,270 |
|
|
Less:
minority interest not included in intangible assets |
|
|
617 |
|
|
|
457 |
|
|
414 |
|
|
|
570 |
|
|
432 |
|
|
Tangible
common equity |
|
$ |
342,597 |
|
|
$ |
331,044 |
|
$ |
281,695 |
|
|
$ |
278,335 |
|
$ |
259,558 |
|
|
Common
shares outstanding at year or period end |
|
|
17,246,659 |
|
|
|
17,229,043 |
|
|
14,788,436 |
|
|
|
14,777,230 |
|
|
14,070,528 |
|
|
Tangible
book value per share |
|
$ |
19.86 |
|
|
$ |
19.21 |
|
$ |
19.05 |
|
|
$ |
18.84 |
|
$ |
18.45 |
|
|
Total
assets at end of period |
|
$ |
3,214,367 |
|
|
$ |
3,113,766 |
|
$ |
2,737,676 |
|
|
$ |
2,549,134 |
|
$ |
2,418,052 |
|
|
Less:
intangible assets |
|
|
173,590 |
|
|
|
174,225 |
|
|
117,849 |
|
|
|
119,688 |
|
|
103,270 |
|
|
Adjusted
total assets at end of period |
|
$ |
3,040,777 |
|
|
$ |
2,939,541 |
|
$ |
2,619,827 |
|
|
$ |
2,429,446 |
|
$ |
2,314,782 |
|
|
Tangible
common equity to tangible assets |
|
|
11.27 |
|
% |
|
11.26 |
% |
|
10.75 |
|
% |
|
11.46 |
% |
|
11.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2017 |
|
|
2017 |
|
|
Non-GAAP Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
Total
average shareholders' equity |
|
$ |
510,958 |
|
|
$ |
500,901 |
|
$ |
402,317 |
|
|
$ |
376,129 |
|
$ |
328,886 |
|
|
Less:
average intangible assets |
|
|
173,953 |
|
|
|
173,766 |
|
|
119,415 |
|
|
|
108,553 |
|
|
103,403 |
|
|
Less:
average minority interest not included |
|
|
|
|
|
|
|
|
|
|
|
|
in intangible assets |
|
|
366 |
|
|
|
326 |
|
|
357 |
|
|
|
356 |
|
|
318 |
|
|
Average
tangible common equity |
|
$ |
336,639 |
|
|
$ |
326,809 |
|
$ |
282,545 |
|
|
$ |
267,220 |
|
$ |
225,165 |
|
|
Net
income to common shareholders |
|
|
10,684 |
|
|
|
9,083 |
|
|
1,003 |
|
|
|
6,697 |
|
|
6,449 |
|
|
Return
on average tangible common equity (ROATCE) |
|
|
12.73 |
|
% |
|
11.27 |
% |
|
1.41 |
|
% |
|
9.94 |
% |
|
11.49 |
% |
|
Efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
$ |
33,403 |
|
|
$ |
32,900 |
|
$ |
27,400 |
|
|
$ |
25,641 |
|
$ |
23,953 |
|
|
Total
noninterest income |
|
|
4,675 |
|
|
|
4,708 |
|
|
4,625 |
|
|
|
4,546 |
|
|
5,100 |
|
|
Less: Gain (loss) on sale of securities |
|
|
2 |
|
|
|
191 |
|
|
(119 |
) |
|
|
- |
|
|
28 |
|
|
Operating revenue |
|
$ |
38,076 |
|
|
$ |
37,417 |
|
$ |
32,144 |
|
|
$ |
30,187 |
|
$ |
29,025 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest expenses |
|
$ |
22,619 |
|
|
$ |
23,975 |
|
$ |
19,010 |
|
|
$ |
17,987 |
|
$ |
17,737 |
|
|
Efficiency ratio |
|
|
59.40 |
|
% |
|
64.08 |
% |
|
59.14 |
|
% |
|
59.59 |
% |
|
61.11 |
% |
|
Operating efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
$ |
33,403 |
|
|
$ |
32,900 |
|
$ |
27,400 |
|
|
$ |
25,641 |
|
$ |
23,953 |
|
|
Total
noninterest income |
|
|
4,675 |
|
|
|
4,708 |
|
|
4,625 |
|
|
|
4,546 |
|
|
5,100 |
|
|
Less: Gain (loss) on sale of securities |
|
|
2 |
|
|
|
191 |
|
|
(119 |
) |
|
|
- |
|
|
28 |
|
|
Operating revenue |
|
$ |
38,076 |
|
|
$ |
37,417 |
|
$ |
32,144 |
|
|
$ |
30,187 |
|
$ |
29,025 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest expenses |
|
$ |
22,619 |
|
|
$ |
23,975 |
|
$ |
19,010 |
|
|
$ |
17,987 |
|
$ |
17,737 |
|
|
Less:
merger/conversion-related expenses |
|
|
542 |
|
|
|
2,396 |
|
|
1,172 |
|
|
|
417 |
|
|
344 |
|
|
Adjusted
noninterest expenses |
|
$ |
22,077 |
|
|
$ |
21,579 |
|
$ |
17,838 |
|
|
$ |
17,570 |
|
$ |
17,393 |
|
|
Operating efficiency ratio |
|
|
57.98 |
|
% |
|
57.67 |
% |
|
55.49 |
|
% |
|
58.20 |
% |
|
59.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes securities
gains |
|
|
|
|
|
|
|
|
|
|
|
|
(2)
After-tax impact of merger conversion-related expenses of $445,
$1,826, $815, $340 and $248, respectively, for the periods
presented |
|
|
|
|
(3) Excludes
merger/conversion-related expenses |
|
|
|
|
|
|
|
|
|
|
|
|
(4) Net
income to common shareholders / average assets |
|
|
|
|
|
|
|
|
|
|
|
(5) Excludes CBI loans
(factoring receivables) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL COMMERCE CORPORATION |
|
Unaudited Consolidated Balance
Sheets |
|
(In thousands, except share and per share
data) |
|
|
|
|
|
Assets |
|
|
June 30, 2018 |
December 31, 2017 |
|
Cash and due from
banks |
$ |
51,360 |
|
$ |
36,246 |
|
Interest-bearing
deposits with banks |
|
166,413 |
|
|
199,042 |
|
Cash and cash equivalents |
|
217,773 |
|
|
235,288 |
|
Investment
securities held-to-maturity (fair value of $24,690 and $25,932 at
June 30, 2018 |
|
|
|
and
December 31, 2017, respectively) |
|
24,948 |
|
|
25,562 |
|
Investment
securities available-for-sale |
|
136,594 |
|
|
85,834 |
|
Other
investments |
|
13,154 |
|
|
11,350 |
|
Mortgage loans
held-for-sale |
|
24,455 |
|
|
29,191 |
|
Loans, net of
unearned income |
|
2,497,132 |
|
|
2,138,058 |
|
Less: allowance
for loan losses |
|
15,997 |
|
|
14,985 |
|
Loans, net |
|
2,481,135 |
|
|
2,123,073 |
|
Premises and
equipment, net |
|
67,841 |
|
|
52,455 |
|
Accrued interest
receivable |
|
7,537 |
|
|
6,157 |
|
Bank-owned life
insurance |
|
42,420 |
|
|
31,584 |
|
Other real
estate |
|
1,339 |
|
|
1,094 |
|
Deferred tax
assets, net |
|
14,958 |
|
|
12,041 |
|
Goodwill |
|
164,360 |
|
|
113,394 |
|
Core deposit
intangible, net |
|
9,230 |
|
|
4,455 |
|
Other
assets |
|
8,623 |
|
|
6,198 |
|
Total assets |
$ |
3,214,367 |
|
$ |
2,737,676 |
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
Deposits: |
|
|
|
Noninterest-bearing demand |
$ |
802,273 |
|
$ |
697,144 |
|
Interest-bearing demand |
|
518,370 |
|
|
362,266 |
|
Savings and money market |
|
982,026 |
|
|
951,846 |
|
Time |
|
341,044 |
|
|
274,575 |
|
Total deposits |
|
2,643,713 |
|
|
2,285,831 |
|
Federal Home Loan
Bank advances and other borrowings |
|
7,000 |
|
|
7,000 |
|
Subordinated
debt |
|
24,580 |
|
|
24,553 |
|
Accrued interest
payable |
|
900 |
|
|
900 |
|
Other
liabilities |
|
21,370 |
|
|
19,434 |
|
Total liabilities |
|
2,697,563 |
|
|
2,337,718 |
|
|
|
|
|
Shareholders’
equity: |
|
|
|
Preferred stock, 250,000 shares authorized, no shares issued
or outstanding |
|
- |
|
|
- |
|
Common stock, $0.01 par value, 30,000,000 shares authorized,
17,246,659 and 14,788,436 |
|
|
|
shares issued and outstanding at June 30, 2018 and December
31, 2017, respectively |
|
172 |
|
|
148 |
|
Additional paid-in capital |
|
447,061 |
|
|
347,999 |
|
Retained earnings |
|
63,756 |
|
|
43,989 |
|
Accumulated other comprehensive income |
|
(1,736 |
) |
|
474 |
|
Total shareholders' equity attributable to National
Commerce Corporation |
|
509,253 |
|
|
392,610 |
|
Noncontrolling interest |
|
7,551 |
|
|
7,348 |
|
Total shareholders' equity |
|
516,804 |
|
|
399,958 |
|
Total liabilities and shareholders' equity |
$ |
3,214,367 |
|
$ |
2,737,676 |
|
|
|
|
|
|
|
|
|
NATIONAL COMMERCE CORPORATION |
|
Unaudited Consolidated Statements of
Earnings |
|
(In thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Interest and dividend
income: |
|
|
|
|
|
|
Interest and fees on loans |
$ |
35,713 |
|
$ |
24,987 |
|
$ |
70,136 |
|
$ |
48,580 |
|
Interest and dividends on taxable investment securities |
|
1,212 |
|
|
606 |
|
|
2,382 |
|
|
1,177 |
|
Interest
on non-taxable investment securities |
|
192 |
|
|
197 |
|
|
380 |
|
|
397 |
|
Interest
on interest-bearing deposits and federal funds sold |
|
596 |
|
|
676 |
|
|
1,135 |
|
|
1,211 |
|
Total interest income |
|
37,713 |
|
|
26,466 |
|
|
74,033 |
|
|
51,365 |
|
Interest expense: |
|
|
|
|
|
|
Interest
on deposits |
|
3,852 |
|
|
2,054 |
|
|
6,813 |
|
|
4,064 |
|
Interest
on borrowings |
|
72 |
|
|
70 |
|
|
143 |
|
|
141 |
|
Interest
on subordinated debt |
|
386 |
|
|
389 |
|
|
774 |
|
|
777 |
|
Total interest expense |
|
4,310 |
|
|
2,513 |
|
|
7,730 |
|
|
4,982 |
|
Net interest income |
|
33,403 |
|
|
23,953 |
|
|
66,303 |
|
|
46,383 |
|
Provision for loan
losses |
|
856 |
|
|
1,155 |
|
|
2,174 |
|
|
1,311 |
|
Net interest income after provision for loan losses |
|
32,547 |
|
|
22,798 |
|
|
64,129 |
|
|
45,072 |
|
Other income: |
|
|
|
|
|
|
Service
charges and fees on deposit accounts |
|
1,029 |
|
|
640 |
|
|
2,041 |
|
|
1,307 |
|
Mortgage
origination and fee income |
|
2,262 |
|
|
3,154 |
|
|
4,157 |
|
|
6,299 |
|
Merchant
sponsorship revenue |
|
675 |
|
|
602 |
|
|
1,395 |
|
|
1,346 |
|
Income
from bank-owned life insurance |
|
276 |
|
|
219 |
|
|
562 |
|
|
435 |
|
Wealth
management fees |
|
15 |
|
|
14 |
|
|
30 |
|
|
24 |
|
Gain
(loss) on other real estate |
|
(32 |
) |
|
105 |
|
|
139 |
|
|
104 |
|
Gain on
sale of investment securities available-for-sale |
|
2 |
|
|
28 |
|
|
193 |
|
|
28 |
|
Other |
|
448 |
|
|
338 |
|
|
866 |
|
|
997 |
|
Total other income |
|
4,675 |
|
|
5,100 |
|
|
9,383 |
|
|
10,540 |
|
Other expense: |
|
|
|
|
|
|
Salaries
and employee benefits |
|
12,498 |
|
|
9,663 |
|
|
24,958 |
|
|
19,736 |
|
Commission-based compensation |
|
1,825 |
|
|
1,684 |
|
|
3,326 |
|
|
3,407 |
|
Occupancy
and equipment, net |
|
2,025 |
|
|
1,479 |
|
|
4,019 |
|
|
2,952 |
|
Core
deposit intangible amortization |
|
738 |
|
|
348 |
|
|
1,477 |
|
|
696 |
|
Other
operating expense |
|
5,533 |
|
|
4,563 |
|
|
12,814 |
|
|
9,407 |
|
Total other expense |
|
22,619 |
|
|
17,737 |
|
|
46,594 |
|
|
36,198 |
|
Earnings before income taxes |
|
14,603 |
|
|
10,161 |
|
|
26,918 |
|
|
19,414 |
|
Income tax expense |
|
3,303 |
|
|
3,281 |
|
|
6,079 |
|
|
6,122 |
|
Net earnings |
|
11,300 |
|
|
6,880 |
|
|
20,839 |
|
|
13,292 |
|
Less: Net earnings attributable to noncontrolling interest |
|
616 |
|
|
431 |
|
|
1,072 |
|
|
924 |
|
Net earnings attributable to National Commerce Corporation |
$ |
10,684 |
|
$ |
6,449 |
|
$ |
19,767 |
|
$ |
12,368 |
|
|
|
|
|
|
|
|
Weighted average common
and diluted shares outstanding |
|
|
|
|
|
|
Basic |
|
17,236,525 |
|
|
13,190,582 |
|
|
17,223,112 |
|
|
13,046,611 |
|
Diluted |
|
17,642,926 |
|
|
13,551,745 |
|
|
17,633,029 |
|
|
13,422,704 |
|
|
|
|
|
|
|
|
Basic earnings per
common share |
$ |
0.62 |
|
$ |
0.49 |
|
$ |
1.15 |
|
$ |
0.95 |
|
Diluted earnings per
common share |
$ |
0.61 |
|
$ |
0.48 |
|
$ |
1.12 |
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
NATIONAL COMMERCE CORPORATION |
|
Average Balance Sheets and Net Interest
Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
(Dollars in thousands) |
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
|
Interest-earning assets |
AverageBalance |
InterestIncome/Expense |
AverageYield/ Rate |
AverageBalance |
InterestIncome/Expense |
AverageYield/ Rate |
AverageBalance |
InterestIncome/Expense |
AverageYield/ Rate |
AverageBalance |
InterestIncome/Expense |
AverageYield/ Rate |
AverageBalance |
InterestIncome/Expense |
AverageYield/ Rate |
|
Loans |
$ |
2,480,578 |
$ |
35,501 |
5.74 |
% |
$ |
2,451,352 |
$ |
34,220 |
5.66 |
% |
$ |
2,091,443 |
$ |
28,704 |
5.45 |
% |
$ |
1,937,115 |
$ |
26,634 |
5.45 |
% |
$ |
1,849,258 |
$ |
24,823 |
5.38 |
% |
|
Mortgage
loans held-for-sale |
|
23,247 |
|
215 |
3.71 |
|
|
17,402 |
|
208 |
4.85 |
|
|
18,237 |
|
136 |
2.96 |
|
|
16,811 |
|
151 |
3.56 |
|
|
18,321 |
|
170 |
3.72 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
securities |
|
155,062 |
|
1,212 |
3.14 |
|
|
152,748 |
|
1,170 |
3.11 |
|
|
97,175 |
|
756 |
3.09 |
|
|
90,969 |
|
694 |
3.03 |
|
|
81,645 |
|
606 |
2.98 |
|
|
Tax-exempt securities |
|
24,393 |
|
257 |
4.23 |
|
|
25,169 |
|
252 |
4.06 |
|
|
25,005 |
|
303 |
4.81 |
|
|
25,286 |
|
310 |
4.86 |
|
|
25,573 |
|
313 |
4.91 |
|
|
Cash
balances in other banks |
|
132,868 |
|
596 |
1.80 |
|
|
138,358 |
|
529 |
1.55 |
|
|
128,606 |
|
443 |
1.37 |
|
|
159,973 |
|
533 |
1.32 |
|
|
249,361 |
|
676 |
1.09 |
|
|
Funds
sold |
|
- |
|
- |
0.00 |
|
|
2,946 |
|
10 |
1.38 |
|
|
- |
|
- |
0.00 |
|
|
- |
|
- |
0.00 |
|
|
- |
|
- |
0.00 |
|
|
Total
interest-earning assets |
|
2,816,148 |
$ |
37,781 |
5.38 |
|
|
2,787,975 |
$ |
36,389 |
5.29 |
|
|
2,360,466 |
$ |
30,342 |
5.10 |
|
|
2,230,154 |
$ |
28,322 |
5.04 |
|
|
2,224,158 |
$ |
26,588 |
4.79 |
|
|
Noninterest-earning assets |
|
333,297 |
|
|
|
328,605 |
|
|
|
255,239 |
|
|
|
228,231 |
|
|
|
218,088 |
|
|
|
Total
assets |
$ |
3,149,445 |
|
|
$ |
3,116,580 |
|
|
$ |
2,615,705 |
|
|
$ |
2,458,385 |
|
|
$ |
2,442,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
$ |
517,769 |
$ |
632 |
0.49 |
% |
$ |
423,537 |
$ |
322 |
0.31 |
% |
$ |
331,876 |
$ |
277 |
0.33 |
% |
$ |
314,925 |
$ |
207 |
0.26 |
% |
$ |
341,238 |
$ |
243 |
0.29 |
% |
|
Savings
and money market deposits |
|
975,986 |
|
2,182 |
0.90 |
|
|
1,038,751 |
|
1,816 |
0.71 |
|
|
884,660 |
|
1,381 |
0.62 |
|
|
827,526 |
|
1,233 |
0.59 |
|
|
821,130 |
|
1,138 |
0.56 |
|
|
Time
deposits |
|
342,890 |
|
1,038 |
1.21 |
|
|
327,011 |
|
823 |
1.02 |
|
|
285,669 |
|
707 |
0.98 |
|
|
273,630 |
|
661 |
0.96 |
|
|
290,097 |
|
673 |
0.93 |
|
|
Federal Home Loan Bank
and other borrowed money |
|
7,243 |
|
72 |
3.99 |
|
|
7,200 |
|
71 |
4.00 |
|
|
7,381 |
|
71 |
3.82 |
|
|
7,228 |
|
72 |
3.95 |
|
|
7,000 |
|
70 |
4.01 |
|
|
Subordinated debt |
|
24,574 |
|
386 |
6.30 |
|
|
24,560 |
|
388 |
6.41 |
|
|
24,547 |
|
388 |
6.27 |
|
|
24,533 |
|
388 |
6.27 |
|
|
24,520 |
|
389 |
6.36 |
|
|
Total
interest-bearing liabilities |
|
1,868,462 |
$ |
4,310 |
0.93 |
|
|
1,821,059 |
$ |
3,420 |
0.76 |
|
|
1,534,133 |
$ |
2,824 |
0.73 |
|
|
1,447,842 |
$ |
2,561 |
0.70 |
|
|
1,483,985 |
$ |
2,513 |
0.68 |
|
|
Noninterest-bearing deposits |
|
746,940 |
|
|
|
772,358 |
|
|
|
657,786 |
|
|
|
615,130 |
|
|
|
612,910 |
|
|
|
Total
funding sources |
|
2,615,402 |
|
|
|
2,593,417 |
|
|
|
2,191,919 |
|
|
|
2,062,972 |
|
|
|
2,096,895 |
|
|
|
Noninterest-bearing liabilities |
|
23,085 |
|
|
|
22,262 |
|
|
|
21,469 |
|
|
|
19,284 |
|
|
|
16,465 |
|
|
|
Shareholders' equity |
|
510,958 |
|
|
|
500,901 |
|
|
|
402,317 |
|
|
|
376,129 |
|
|
|
328,886 |
|
|
|
|
$ |
3,149,445 |
|
|
$ |
3,116,580 |
|
|
$ |
2,615,705 |
|
|
$ |
2,458,385 |
|
|
$ |
2,442,246 |
|
|
|
Net
interest rate spread |
|
|
4.45 |
% |
|
|
4.53 |
% |
|
|
4.37 |
% |
|
|
4.34 |
% |
|
|
4.11 |
% |
|
Net
interest income/margin (taxable equivalent) |
|
|
33,471 |
4.77 |
% |
|
|
32,969 |
4.80 |
% |
|
|
27,518 |
4.63 |
% |
|
|
25,761 |
4.58 |
% |
|
|
24,075 |
4.34 |
% |
|
Tax
equivalent adjustment |
|
|
68 |
|
|
|
69 |
|
|
|
118 |
|
|
|
120 |
|
|
|
122 |
|
|
Net
interest income/margin |
|
$ |
33,403 |
4.76 |
% |
|
$ |
32,900 |
4.79 |
% |
|
$ |
27,400 |
4.61 |
% |
|
$ |
25,641 |
4.56 |
% |
|
$ |
23,953 |
4.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS |
|
For the Six Months Ended |
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except yields and
rates) |
June 30, 2018 |
June 30, 2017 |
|
Interest-earning assets |
AverageBalance |
InterestIncome/Expense |
Average Yield/Rate |
AverageBalance |
InterestIncome/Expense |
Average Yield/Rate |
|
Loans |
$ |
2,466,046 |
$ |
69,720 |
5.70 |
% |
$ |
1,821,404 |
$ |
48,201 |
5.34 |
% |
|
Mortgage
loans held for sale |
|
20,341 |
|
423 |
4.19 |
|
|
20,055 |
|
392 |
3.94 |
|
|
Securities: |
|
|
|
|
|
|
|
Taxable
securities |
|
153,912 |
|
2,382 |
3.12 |
|
|
84,836 |
|
1,177 |
2.80 |
|
|
Tax-exempt securities |
|
24,778 |
|
508 |
4.13 |
|
|
25,698 |
|
630 |
4.94 |
|
|
Cash
balances in other banks |
|
135,598 |
|
1,125 |
1.67 |
|
|
253,991 |
|
1,211 |
0.96 |
|
|
Funds sold |
|
1,465 |
|
10 |
1.38 |
|
|
- |
|
- |
0.00 |
|
|
Total
interest-earning assets |
|
2,802,140 |
$ |
74,168 |
5.34 |
|
|
2,205,984 |
$ |
51,611 |
4.72 |
|
|
Non-interest earning assets |
|
330,963 |
|
|
|
219,041 |
|
|
|
Total
assets |
$ |
3,133,103 |
|
|
$ |
2,425,025 |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
Interest-bearing transactions accounts |
$ |
470,913 |
$ |
954 |
0.41 |
% |
$ |
336,824 |
$ |
460 |
0.28 |
% |
|
Savings
and money market deposits |
|
1,007,195 |
|
3,998 |
0.80 |
|
|
812,879 |
|
2,234 |
0.55 |
|
|
Time
deposits |
|
334,994 |
|
1,861 |
1.12 |
|
|
298,205 |
|
1,370 |
0.93 |
|
|
Federal Home Loan Bank
and other borrowed money |
|
7,222 |
|
143 |
3.99 |
|
|
8,002 |
|
141 |
3.55 |
|
|
Subordinated debt |
|
24,567 |
|
774 |
6.35 |
|
|
24,514 |
|
777 |
6.39 |
|
|
Total
interest-bearing liabilities |
|
1,844,891 |
$ |
7,730 |
0.84 |
|
|
1,480,424 |
$ |
4,982 |
0.68 |
|
|
Non-interest bearing deposits |
|
759,579 |
|
|
|
606,937 |
|
|
|
Total
funding sources |
|
2,604,470 |
|
|
|
2,087,361 |
|
|
|
Non-interest bearing liabilities |
|
22,676 |
|
|
|
16,692 |
|
|
|
Shareholders' equity |
|
505,957 |
|
|
|
320,972 |
|
|
|
|
$ |
3,133,103 |
|
|
$ |
2,425,025 |
|
|
|
Net
interest rate spread |
|
|
4.50 |
% |
|
|
4.04 |
% |
|
Net
interest income/margin (taxable equivalent) |
|
|
66,438 |
4.78 |
% |
|
|
46,629 |
4.26 |
% |
|
Tax
equivalent adjustment |
|
|
135 |
|
|
|
246 |
|
|
Net
interest income/margin |
|
$ |
66,303 |
4.77 |
% |
|
$ |
46,383 |
4.24 |
% |
|
|
|
|
|
|
|
|
|
Contact:
National Commerce CorporationWilliam E. Matthews,
V
Lowell Womack, Jr. Vice Chairman and Chief Financial
Officer
Director of Financial Reporting (205) 313-8100
(205) 313-8100
NATIONAL COMMERCE CORP (NASDAQ:NCOM)
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