National Commerce Corporation (NASDAQ:NCOM) Q3 2018 Earnings Conference Call Transcript

Oct 24, 2018 • 09:30 am ET


National Commerce Corporation (NASDAQ:NCOM) Q3 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen. And welcome to the National Commerce Corporation Third Quarter Earnings Release Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will have a question-and-answer session, and instructions will be given at that time. (Operator Instructions) As a reminder, today's conference is being recorded for replay purposes.

It is now my pleasure to hand the conference over to your host, Mr. Will Matthews. Sir?

Will Matthews

Thank you, Haley, and good morning, everybody. And welcome to the National Commerce third quarter 2018 earnings call. I am joined by Richard Murray; John Holcomb; Davis Goodson; and John Bragg. As Haley said, after our prepared remarks, we will open up the call for questions. The call is being recorded and a replay will be available on our website, which is, in the Investor Relations link under the Learn More tab. Before I turn the call over to Richard, I am going to read a few customary disclosures.

(Forward-Looking Cautionary Statements)

I'll now turn the call over to Richard.

Richard Murray

Thank you, Will. Good morning and I want to also say welcome to the call. As Will said, joining us in the room, John Holcomb; Davis Goodson; and John Bragg. And similar to prior quarters, I will make some introductory remarks about the quarter, talk a little bit about the balance sheet, asset quality and then turn the call over to Will to give more detail on our operating results in the business lines and then we will all take questions.

But before we get started, I wanted to give a welcome to the First Landmark Bank team to the company. First Landmark merger closed on August 1st, as you know, right on the heels of the Premier Community Bank merger, which closed July 1st. We are very excited to have Stan Kryder and Terry DeWitt and their entire team join our company. The addition of First Landmark makes Atlanta our largest single market, representing 23%, 24% of our loans and our deposits, and we couldn't be more excited to have Stan and Terry lead our efforts there. We really like our prospects for success going forward in that very important market.

We are pleased with the overall results of the third quarter. As you can see, loan growth picked up in the quarter with roughly 16% linked-quarter annualized growth. There, asset quality remains strong, credit cost, low and we continue to make progress in our non-core bank businesses. Strong loan growth we did have was heavily weighted towards the back end of the quarter, so we will experience the benefits of that more in Q4 than we did in Q3.

For the quarter, we reported just under $12 million in net income, $0.59 per diluted share. Included in the quarter, we recognized roughly $900,000 in merger-related expenses, which is about $0.04 per share after tax, mostly associated with those two acquisitions. So $0.63 per share excluding those merger-related expenses and that compares to $0.61