National Commerce Corp - FORM 8-K - EX-99.1

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8-K - FORM 8-K - National Commerce Corp	d26955d8k.htm

Exhibit 99.1

LOGO

National Commerce Corporation Announces Second Quarter 2015 Earnings

BIRMINGHAM, AL, (July 23, 2015) (GLOBE NEWSWIRE) — National Commerce Corporation (NASDAQ: NCOM) (the “Company”) today reported second quarter 2015 net income to common shareholders of $2.3 million, compared with $1.1 million for the second quarter of 2014. Diluted net earnings per share were $0.24 for the second quarter of 2015, compared with $0.20 for the second quarter of 2014, representing a 20% increase.

“We are pleased with the first six months of the year,” said John H. Holcomb, III, Chairman and CEO of the Company. “Our growth continues to meet our expectations, and I am also encouraged by the growth we are experiencing in our United Legacy market area following the March conversion of United Legacy to our core operating system. While the year is off to a good start, we again remind ourselves that we have a lot of work ahead of us to continue to achieve our goals.”

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

•

Net Interest Margin (tax-effected) of 4.22%, compared with 3.29% for the second quarter of 2014.

•

Return on Average Assets of 0.75%, compared with 0.61% for the second quarter of 2014.

•

Return on Average Tangible Common Equity of 6.35%, compared with 5.00% for the second quarter of 2014.

•

Second quarter 2015 loan growth (excluding mortgage loans held for sale) of $49.9 million, representing a 21.7% annualized growth rate. Excluding factoring receivables, loans grew $44.5 million, representing a 20.9% annualized growth rate.

•

Second quarter 2015 deposit growth of $51.3 million, representing a 20.6% annualized growth rate.

•

$84.8 million in mortgage production, compared with $56.5 million for the second quarter of 2014.

•

$189 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 second quarter of 2014.

•

Increase in non-acquired non-performing assets to $4.2 million from $2.3 million at March 31, 2015.

•

Annualized net charge-offs of 0.16%, compared to 0.13% for the second quarter of 2014.

•

Ending tangible book value per share of $15.12.

•

Ending book value per share of $18.50.

“I am also pleased about our recent announcement with Reunion Bank of Florida,” continued Holcomb. “We believe the cultural fit between our organizations is outstanding, and we are excited about adding the Reunion team and shareowners to the National Commerce family.”

The Company will host a live audio webcast conference call beginning at 9:00 a.m. Central Time on July 24, 2015 to discuss second quarter 2015 results. Investors may call in (toll free) by dialing (855) 871-0559 (conference ID 82247899). 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 Sunday, July 26, 2015 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 the Company’s Investor Relations page located at www.nationalbankofcommerce.com. A replay of the webcast will be available on the website for one year. A copy of this press 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. Our 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 our tangible common equity for the applicable period.

•

“Return on average tangible common equity,” or ROATCE, is defined as net income available to common shareholders divided by average tangible common equity.

•

“Tangible book value per share” is defined as tangible common equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets.

•

“Allowance for loan losses to nonacquired loans” is defined as the total allowance for loan losses less the allowance for loan losses attributable to factored receivables divided by nonacquired loans held for investment excluding factored receivables at end of the period.

•

“Efficiency ratio” is defined as noninterest expense divided by our 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 our productivity measured by the amount of revenue generated for each dollar spent.

•

“Operating efficiency ratio” is defined as noninterest expense divided by our operating revenue, excluding one-time gains and losses on sales of securities and one-time gains and expenses related to merger and acquisition-related activities. This measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

We believe that these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they 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 (“NCC”) is a bank holding company headquartered in Birmingham, Alabama. Through its subsidiary bank, National Bank of Commerce, NCC provides a broad array of financial services to businesses, business owners and professionals through eight full-service banking offices in Alabama (in Birmingham, Huntsville, Auburn-Opelika and Baldwin County) and seven full-service banking offices in central Florida (in Vero Beach through National Bank of Commerce and in Longwood, Winter Park, Orlando, Oviedo and Kissimmee through United Legacy Bank, a division of National Bank of Commerce). The company also 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 nationwide.

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

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements for which NCC claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in NCC’s future filings with the SEC, in press releases and in oral and written statements made by NCC or with NCC’s approval that are not statements of historical fact and that constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of NCC’s plans, objectives

and expectations or those of its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to various risks and uncertainties, including those risks and uncertainties described under the heading “Risk Factors” in NCC’s Annual Report on Form 10-K for the year ended December 31, 2014 and described in any subsequent reports that NCC has filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. You should not rely upon forward-looking statements 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.

Contact:

National Commerce Corporation

Will Matthews

Vice Chairman and Chief Financial Officer

(205) 313-8122

NATIONAL COMMERCE CORPORATION

Unaudited Financial Highlights

(In thousands, except share and per share amounts and percentages)


	For the Three Months Ended
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Earnings Summary
Interest income	$	12,714		$	12,193		$	10,578		$	8,107		$	6,449
Interest expense		1,071			1,027			846			730			634
Net interest income		11,643			11,166			9,732			7,377			5,815
Provision for loan losses		120			161			826			152			—
Gain (loss) on sale of securities		—			—			—			(33	)		—
Other noninterest income ⁽¹⁾		2,206			1,764			1,419			1,353			1,326
Merger/conversion related expenses		168			79			246			262			146
Other noninterest expense ⁽²⁾		9,448			9,211			6,910			5,719			5,289
Income before income taxes		4,113			3,479			3,169			2,564			1,706
Income tax expense		1,264			1,092			1,158			841			568
Net income before minority interest		2,849			2,387			2,011			1,723			1,138
Net income attributable to minority interest		593			466			304			208			—
Net income to common shareholders	$	2,256		$	1,921		$	1,707		$	1,515		$	1,138

Weighted average common and diluted shares outstanding
Basic		9,438,541			7,701,663			6,223,377			5,855,276			5,739,173
Diluted		9,569,695			7,801,577			6,305,626			5,929,386			5,793,444

Net earnings per common share
Basic	$	0.24		$	0.25		$	0.27		$	0.26		$	0.20
Diluted	$	0.24		$	0.25		$	0.27		$	0.26		$	0.20

	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Selected Performance Ratios
Return on average assets (ROAA) ⁽³⁾		0.75	%		0.67	%		0.72	%		0.73	%		0.61	%
Return on average equity (ROAE)		5.22			5.58			6.11			6.17			5.00
Return on average tangible common equity (ROATCE)		6.35			7.15			7.86			6.76			5.00
Net interest margin—taxable equivalent		4.22			4.25			4.58			3.87			3.29
Efficiency ratio		69.43			71.85			64.17			68.51			76.11
Operating efficiency ratio ⁽²⁾		68.22			71.24			61.97			65.51			74.07
Noninterest income / average assets (annualized)		0.73			0.62			0.60			0.65			0.72
Noninterest expense / average assets (annualized)		3.19			3.24			3.01			2.87			2.94
Yield on loans		5.15			5.26			5.37			4.73			4.17
Cost of total deposits		0.38	%		0.38	%		0.36	%		0.35	%		0.34	%

	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Factoring Metrics
Recourse purchased volume	$	89,009		$	84,725		$	107,891			N/A			N/A
Non-recourse purchased volume		99,614			90,402			90,791			N/A			N/A
Total purchased volume	$	188,623		$	175,127		$	198,682			N/A			N/A
Average turn (days)		37.66			41.57			40.08			N/A			N/A
Net charge-offs / total purchased volume		(0.04	)%		0.09	%		0.02	%		N/A			N/A
Average discount rate		1.67	%		1.65	%		1.65	%		N/A			N/A

	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Mortgage Metrics
Total production ($)	$	84,796		$	55,731		$	55,931		$	53,542		$	56,510
Refinance (%)		18.6	%		26.9	%		22.6	%		19.0	%		11.8	%
Purchases (%)		81.4	%		73.1	%		77.4	%		81.0	%		88.2	%

NATIONAL COMMERCE CORPORATION

Unaudited Financial Highlights

(In thousands, except share and per share amounts and percentages)


	As of
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Balance Sheet Highlights
Cash and cash equivalents	$	142,393		$	149,907		$	123,435		$	90,909		$	105,889
Total securities		42,586			37,631			34,932			34,439			45,986
Mortgage loans held for sale		13,750			13,804			9,329			11,329			11,922
Acquired purchased credit impaired loans		5,724			8,852			9,077			—			—
Acquired non-purchased credit impaired loans		131,953			138,040			143,981			—			—
Nonacquired loans held for investment ⁽⁴⁾		757,976			704,307			653,063			623,958			588,065
CBI loans (factoring receivables)		75,000			69,541			82,600			81,926			—
Total gross loans held for investment		970,653			920,740			888,721			705,884			588,065
Allowance for loan losses		9,274			9,522			9,802			9,018			8,974
Total intangibles		31,310			30,560			30,591			23,115			—
Total assets		1,256,614			1,206,667			1,138,426			897,982			783,197
Total deposits		1,051,483			1,000,217			971,060			763,509			666,735
Borrowings		22,000			22,000			22,000			22,000			22,000
Total liabilities		1,081,985			1,034,495			1,002,265			793,931			690,838
Minority interest		7,527			7,166			7,239			7,142			—
Common stock		94			94			75			59			58
Total shareholders’ equity		174,629			172,172			136,161			104,051			92,359
Tangible common equity	$	142,726		$	141,380		$	105,265		$	80,728		$	92,359
End of period common shares outstanding		9,438,541			9,438,541			7,541,541			5,924,579			5,761,094

	As of and For the Three Months Ended
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Asset Quality Analysis
*Nonacquired*
Nonaccrual loans	$	2,688		$	618		$	2,276		$	1,087		$	1,195
Other real estate and repossessed assets		1,494			1,494			823			830			800
Loans past due 90 days or more and still accruing		44			168			217			176			—
Total nonacquired nonperforming assets	$	4,226		$	2,280		$	3,316		$	2,093		$	1,995
*Acquired*
Nonaccrual loans	$	2,795		$	2,576		$	2,589		$	—		$	—
Other real estate and repossessed assets		142			542			557			—			—
Loans past due 90 days or more and still accruing		—			—			80			—			—
Total acquired nonperforming assets	$	2,937		$	3,118		$	3,226		$	—		$	—
*Selected asset quality ratios*
Nonperforming assets / Assets		0.57	%		0.45	%		0.57	%		0.23	%		0.25	%
Nonperforming assets / Loans + OREO + repossessed assets		0.74			0.59			0.74			0.30			0.34
Net charge-offs (recoveries) to average loans (annualized)		0.16			0.20			0.02			0.07			0.13
Allowance for loan losses to total loans		0.96			1.03			1.10			1.28			1.53
Nonacquired nonperforming assets / Nonacquired loans + nonacquired OREO + nonacquired repossessed assets ⁽⁴⁾		0.56			0.32			0.51			0.33			0.34
Allowance for loan losses to nonacquired nonperforming loans		339.46			1,211.45			393.18			714.01			750.96
Allowance for loan losses to nonacquired loans ⁽⁴⁾		1.13	%		1.22	%		1.35	%		1.42	%		1.53	%

	For the Three Months Ended
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Taxable Equivalent Yields/Rates
Interest income:
Loans		5.15	%		5.26	%		5.37	%		4.73	%		4.17	%
Mortgage loans held for sale		4.02			3.63			4.32			4.26			4.00
Interest on securities:
Taxable		3.33			2.92			3.17			3.04			2.67
Non-taxable		5.08			5.72			5.73			5.97			5.89
Cash balances in other banks		0.38			0.36			0.26			0.26			0.23
Total interest earning assets		4.60			4.64			4.97			4.25			3.65

Interest expense:
Interest on deposits		0.50			0.49			0.46			0.44			0.43
Interest on FHLB & other borrowings		2.01			2.01			2.02			2.00			2.01
Total interest bearing liabilities		0.54			0.53			0.52			0.50			0.50
Net interest spread		4.06			4.11			4.45			3.75			3.15
Net interest margin		4.22	%		4.25	%		4.58	%		3.87	%		3.29	%

NATIONAL COMMERCE CORPORATION

Unaudited Financial Highlights

(In thousands, except share and per share amounts and percentages)


	As of
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Shareholders’ Equity and Capital Ratios
Tier 1 Leverage Ratio		11.09	%		11.41	%		10.68	%		9.87	%		11.97	%
Tier 1 Common Capital Ratio		12.86			13.54			10.66			11.12			14.81
Tier 1 Risk-based Capital Ratio		12.86			13.54			10.66			11.12			14.81
Total Risk Based Capital Ratio		13.78			14.55			11.75			12.37			16.06
Equity / Assets		13.90			14.27			11.96			11.59			11.79
Tangible common equity to tangible assets		11.65	%		12.02	%		9.50	%		9.23	%		11.79	%
Book value per share	$	18.50		$	18.24		$	18.05		$	17.56		$	16.03
Tangible book value per share	$	15.12		$	14.98		$	13.96		$	13.63		$	16.03

	For the Three Months Ended
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Detail of other noninterest expense
Salaries and employee benefits	$	5,114		$	4,987		$	3,717		$	3,547		$	3,119
Commission-based compensation		1,056			796			900			459			471
Occupancy and equipment expense		829			836			572			477			459
Data processing expenses		487			425			291			295			294
Advertising and marketing expenses		125			173			126			79			63
Legal fees		239			167			389			326			134
FDIC insurance assessments		152			206			151			131			105
Accounting and audit expenses		225			223			208			102			103
Consulting and other professional expenses		183			105			150			89			73
Telecommunications expenses		135			128			79			67			67
ORE, Repo asset and other collection expenses		71			122			102			32			20
Core deposit intangible amortization		111			111			18			—			—
Other noninterest expense		889			1,011			453			377			527

Total noninterest expense	$	9,616		$	9,290		$	7,156		$	5,981		$	5,435

NATIONAL COMMERCE CORPORATION

Unaudited Financial Highlights

(In thousands, except share and per share amounts and percentages)



	As of
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Non-GAAP Reconciliation
Total shareholders’ equity	$	174,629		$	172,172		$	136,161		$	104,051		$	92,359
Less: Intangible assets		31,310			30,560			30,591			23,115			—
Less: minority interest not included in intangible assets		593			232			305			208			—

Tangible common equity	$	142,726		$	141,380		$	105,265		$	80,728		$	92,359
Common shares outstanding at year or period end		9,438,541			9,438,541			7,541,541			5,924,579			5,761,094
Tangible book value per share	$	15.12		$	14.98		$	13.96		$	13.63		$	16.03

Total assets at end of period	$	1,256,614		$	1,206,667		$	1,138,426		$	897,982		$	783,197
Less: Intangible assets		31,310			30,560			30,591			23,115			—

Adjusted total assets at end of period	$	1,225,304		$	1,176,107		$	1,107,835		$	874,867		$	783,197
Tangible common equity to tangible assets		11.65	%		12.02	%		9.50	%		9.23	%		11.79	%

Total allowance for loan losses	$	9,274		$	9,522		$	9,802		$	9,018		$	8,974
Less: allowance for loan losses attributable to CBI (factoring receivables)		715			956			955			175			—

Adjusted allowance for loan losses at end of period	$	8,559		$	8,566		$	8,847		$	8,843		$	8,974
Nonacquired loans held for investment ⁽⁴⁾		757,976			704,307			653,063			623,958			588,065
Allowance for loan losses to nonacquired loans ⁽⁴⁾		1.13	%		1.22	%		1.35	%		1.42	%		1.53	%


	For the Three Months Ended
	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Non-GAAP Reconciliation
Total average shareholders’ equity	$	173,354		$	139,618		$	110,855		$	97,344		$	91,325
Less: Average intangible assets		30,555			30,553			24,417			8,291			—
Less: average minority interest not included in intangible assets		315			46			277			188			—

Average tangible common equity	$	142,484		$	109,019		$	86,161		$	88,865		$	91,325
Net income to common shareholders		2,256			1,921			1,707			1,515			1,138
Return on average tangible common equity (ROATCE)		6.35	%		7.15	%		7.86	%		6.76	%		5.00	%

Efficiency ratio:
Net interest income	$	11,643		$	11,166		$	9,732		$	7,377		$	5,815
Total noninterest income		2,206			1,764			1,419			1,320			1,326
Less: gain (loss) on sale of securities		—			—			—			(33	)		—

Operating revenue	$	13,849		$	12,930		$	11,151		$	8,730		$	7,141

Expenses:
Total noninterest expenses	$	9,616		$	9,290		$	7,156		$	5,981		$	5,435

Efficiency ratio		69.43	%		71.85	%		64.17	%		68.51	%		76.11	%

Operating efficiency ratio:
Net interest income	$	11,643		$	11,166		$	9,732		$	7,377		$	5,815
Total noninterest income		2,206			1,764			1,419			1,320			1,326
Less: gain (loss) on sale of securities		—			—			—			(33	)		—

Operating revenue	$	13,849		$	12,930		$	11,151		$	8,730		$	7,141

Expenses:
Total noninterest expenses	$	9,616		$	9,290		$	7,156		$	5,981		$	5,435
Less: merger/conversion expenses		168			79			246			262			146

Adjusted noninterest expenses	$	9,448		$	9,211		$	6,910		$	5,719		$	5,289

Operating efficiency ratio		68.22	%		71.24	%		61.97	%		65.51	%		74.07	%

(1)	Excludes securities gains

(2)	Excludes merger and 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
	June 30, 2015		December 31, 2014
Cash and due from banks	$	17,677	$	14,236
Interest-bearing deposits with banks		124,716		109,199

Cash and cash equivalents		142,393		123,435
Investment securities held-to-maturity (fair value of $12,122 at June 30, 2015)		12,609		—
Investment securities available-for-sale		29,977		34,932
Other investments		5,844		5,421
Mortgage loans held-for-sale		13,750		9,329
Loans, net of unearned income		970,653		888,721
Less: allowance for loan losses		9,274		9,802

Loans, net		961,379		878,919
Premises and equipment, net		27,554		27,560
Accrued interest receivable		2,217		2,193
Bank owned life insurance		11,848		10,641
Other real estate		1,494		1,008
Deferred tax assets, net		12,149		11,444
Goodwill		29,775		28,834
Core deposit intangible, net		1,535		1,757
Other assets		4,090		2,953

Total assets	$	1,256,614	$	1,138,426


Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing demand	$	246,804	$	217,643
Interest-bearing demand		162,087		154,816
Savings and money market		414,720		392,394
Time		227,872		206,207

Total deposits		1,051,483		971,060
Federal Home Loan Bank advances		22,000		22,000
Accrued interest payable		453		431
Other liabilities		8,049		8,774

Total liabilities		1,081,985		1,002,265


Commitments

Shareholders’ equity:
Preferred stock, 250,000 shares authorized, no shares issued or outstanding		—		—
Common stock, at June 30, 2015, $0.01 par value, 30,000,000 shares authorized and 9,438,541 shares issued and outstanding; at December 31, 2014, $0.01 par value, 12,500,000 shares authorized and 7,541,541 shares issued and outstanding		94		75
Additional paid-in capital		165,674		131,455
Retained earnings (deficit)		724		(3,453	)
Accumulated other comprehensive income		610		845

Total shareholders’ equity attributable to National Commerce Corporation		167,102		128,922
Noncontrolling interest		7,527		7,239

Total shareholders’ equity		174,629		136,161

Total liabilities and shareholders’ equity	$	1,256,614	$	1,138,426

NATIONAL COMMERCE CORPORATION

Unaudited Consolidated Statements of Earnings

(In thousands, except per share data)


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2015			2014		2015			2014
Interest and dividend income:
Interest and fees on loans	$	12,226		$	6,053	$	24,018		$	11,839
Interest and dividends on taxable investment securities		269			310		525			627
Interest on non-taxable investment securities		114			42		156			84
Interest on interest-bearing deposits and federal funds sold		105			44		208			107

Total interest income		12,714			6,449		24,907			12,657
Interest expense:
Interest on deposits		961			524		1,879			1,074
Interest on borrowings		110			110		219			219

Total interest expense		1,071			634		2,098			1,293

Net interest income		11,643			5,815		22,809			11,364
Provision for loan losses		120			—		281			—

Net interest income after provision for loan losses		11,523			5,815		22,528			11,364
Other income:
Service charges and fees on deposit accounts		308			172		575			338
Mortgage origination and fee income		1,505			1,048		2,776			1,753
Merchant sponsorship revenue		191			—		191			—
Income from bank owned life insurance		86			60		165			120
Wealth management fees		13			15		32			29
(Loss) gain on other real estate		(11	)		—		(24	)		5
(Loss) gain on sale of investment securities available-for-sale		—			—		—			—
Other		114			31		255			48

Total other income		2,206			1,326		3,970			2,293

Other expense:
Salaries and employee benefits		5,114			3,119		10,101			6,115
Commission-based compensation		1,056			471		1,852			777
Occupancy and equipment		829			459		1,665			895
Core deposit intangible amortization		111			—		222			—
Other operating expense		2,506			1,386		5,066			2,529

Total other expense		9,616			5,435		18,906			10,316

Earnings before income taxes		4,113			1,706		7,592			3,341
Income tax expense		1,264			568		2,356			1,160

Net earnings		2,849			1,138		5,236			2,181
Less: Net earnings attributable to noncontrolling interest		593			—		1,059			—

Net earnings attributable to National Commerce Corporation	$	2,256		$	1,138	$	4,177		$	2,181

Basic earnings per common share	$	0.24		$	0.20	$	0.49		$	0.38
Diluted earnings per common share	$	0.24		$	0.20	$	0.48		$	0.38

NATIONAL COMMERCE CORPORATION

Average Balance Sheets and Net Interest Analysis


	For the Three Months Ended
(Dollars in thousands)	June 30, 2015							March 31, 2015							December 31, 2014							September 30, 2014							June 30, 2014
Interest earning assets	Average Balance		Interest Income/ Expense		Average Yield/Rate			Average Balance		Interest Income/ Expense		Average Yield/Rate			Average Balance		Interest Income/ Expense		Average Yield/Rate			Average Balance		Interest Income/ Expense		Average Yield/Rate			Average Balance		Interest Income/ Expense		Average Yield/Rate
Loans	$	944,373	$	12,116		5.15	%	$	903,563	$	11,709		5.26	%	$	748,373	$	10,124		5.37	%	$	640,806	$	7,636		4.73	%	$	570,896	$	5,935		4.17	%
Mortgage loans held for sale		11,180		112		4.02			9,487		85		3.63			9,914		108		4.32			10,348		111		4.26			12,145		121		4.00
Securities:
Taxable securities		32,402		269		3.33			35,540		256		2.92			34,366		275		3.17			36,011		276		3.04			46,525		310		2.67
Tax-exempt securities		14,297		181		5.08			4,750		67		5.72			4,640		67		5.73			4,584		69		5.97			4,496		66		5.89
Cash balances in other banks		112,081		105		0.38			114,579		103		0.36			48,646		32		0.26			67,191		44		0.26			77,607		44		0.23

Total interest earning assets		1,114,333	$	12,783		4.60			1,067,919	$	12,220		4.64			845,939	$	10,606		4.97			758,940	$	8,136		4.25			711,669	$	6,476		3.65

Non-interest earning assets		95,949							94,118							96,203							68,521							31,040

Total assets	$	1,210,282						$	1,162,037						$	942,142						$	827,461						$	742,709


Interest bearing liabilities
Interest bearing transactions accounts	$	157,261	$	97		0.25	%	$	159,706	$	99		0.25	%	$	135,882	$	96		0.28	%	$	125,356	$	89		0.28	%	$	112,371	$	73		0.26	%
Savings & money market deposits		408,117		417		0.41			391,321		377		0.39			330,459		309		0.37			308,942		295		0.38			276,062		253		0.37
Time deposits		208,388		447		0.86			209,016		442		0.86			161,368		329		0.81			118,023		235		0.79			97,303		198		0.82
Federal Home Loan Bank & other borrowed money		22,000		110		2.01			22,000		109		2.01			22,027		112		2.02			22,000		111		2.00			22,000		110		2.01

Total interest-bearing liabilities		795,766	$	1,071		0.54			782,043	$	1,027		0.53			649,736	$	846		0.52			574,321	$	730		0.50			507,736	$	634		0.50

Non-interest bearing deposits		233,136							232,497							172,290							150,566							141,623

Total funding sources		1,028,902							1,014,540							822,026							724,887							649,359
Non-interest bearing liabilities		8,026							7,879							9,261							5,230							2,025
Shareholders’ equity		173,354							139,618							110,855							97,344							91,325

	$	1,210,282						$	1,162,037						$	942,142						$	827,461						$	742,709

Net interest rate spread						4.06	%						4.11	%						4.45	%						3.75	%						3.15	%
Net interest income/margin (Taxable equivalent)				11,712		4.22	%				11,193		4.25	%				9,760		4.58	%				7,406		3.87	%				5,842		3.29	%
Tax equivalent adjustment				69							27							28							29							27

Net interest income/margin			$	11,643		4.19	%			$	11,166		4.24	%			$	9,732		4.56	%			$	7,377		3.86	%			$	5,815		3.28	%

National Commerce Corp - FORM 8-K - EX-99.1 - July 23, 2015

Attached files

National Commerce Corp Reports