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National Commerce Corporation Announces First Quarter 2015 Earnings
Birmingham, AL – National Commerce Corporation (NASDAQ: NCOM) (the “Company”) today reported first quarter 2015 net income to common shareholders of $1.9 million, compared with $1.0 million for the first quarter of 2014. Diluted net earnings per share were $0.25 for the first quarter of 2015, compared with $0.18 for the first quarter of 2014, representing a 36% increase.
“We are pleased with our start to the year,” said John H. Holcomb, III, Chairman and CEO of the Company. “We accomplished several important tasks during the quarter, including the successful conversion of United Legacy Bank to our core operating system and the Company’s initial public offering. While our first quarter performance is on schedule, our team knows that we have a lot of work ahead of us to continue to achieve our goals.”
Highlights from the first quarter of 2015 include:
•Net Interest Margin (tax-effected) of 4.25%, compared with 3.14% for the first quarter of 2014.
•Return on Average Assets of 0.67%, compared with 0.56% for the first quarter of 2014.
•Return on Average Tangible Common Equity of 7.15%, compared with 4.72% for the first quarter of 2014.
•First quarter 2015 loan growth (excluding mortgage loans held for sale) of $32.0 million, representing a 14.6% annualized growth rate. Excluding factoring receivables, loans grew $45.1 million, representing a 22.7% annualized growth rate.
•First quarter 2015 deposit growth of $29.2 million, representing a 12.2% annualized growth rate. Note that, due to the December 15, 2014 acquisition of United Group Banking Company of Florida, Inc., comparisons of average loan and deposit growth are less meaningful.
•$55.7 million in mortgage production, compared with $41.3 million for the first quarter of 2014.
•$175 million in purchased volume in the factoring division. Note that, because the Company entered the factoring business in the third quarter of 2014, no comparable figure is available for the first quarter of 2014.
•Reduction in non-acquired non-performing assets to $2.3 million from $3.3 million at December 31, 2014 and $4.2 million at March 31, 2014.
•Annualized net charge-offs of 0.20%, compared to (0.03%) in net recoveries for the first quarter of 2014.
•Ending tangible book value per share of $14.98.
•Ending book value per share of $18.24.
•The successful completion of the system conversion at United Legacy Bank, a division of National Bank of Commerce, in March of 2015.
•The successful completion of the Company’s initial public offering in March of 2015.
“I am pleased with the Company’s momentum, and I look forward to the remainder of the year,” continued Holcomb. “We have added several new owners to our Company, and we will strive to perform and grow long-term value for all of our fellow shareowners.”
The Company will host a live audio webcast conference call beginning at 9:30 a.m. Eastern Time on April 29, 2015 to discuss first quarter 2015 results. Investors may call in (toll free) by dialing (855) 871-0559 (conference ID 32484825). A replay of the call will be available for 30 days and can be accessed by dialing (855) 859-2056 or (404) 537-3406 (conference ID 32484825).
The live webcast can also be accessed at www.nationalbankofcommerce.com/investor-relations.htm. A replay of the webcast will be available on the Company’s website for 30 days. A copy of this press release is available on the Company’s website.