First NBC Bank Holding Company Announces 2013 Fourth Quarter Results

NEW ORLEANS, Feb. 11, 2014 (GLOBE NEWSWIRE) -- First NBC Bank Holding Company (Nasdaq:NBCB), the holding company for First NBC Bank ("Company"), today announced financial results for the fourth quarter of 2013. For the quarter ended December 31, 2013, the Company reported net income available to common shareholders of $13.5 million, or $0.71 per share, as compared to $10.4 million, or $0.55 per share, for the third quarter of 2013 and $5.0 million, or $0.36 per share, for the fourth quarter of 2012.

For the year ended December 31, 2013, the Company reported net income available to common shareholders of $40.6 million, or $2.38 per share, generating a return on average stockholders' equity of 12.63% and a return on average assets of 1.37%. The Company reported net income available to common shareholders of $28.4 million, or $2.04 per share, for the year ended December 31, 2012.

The Company's earnings per share on a diluted basis were $0.69, $0.54, and $0.35 per diluted share, for the fourth quarter of 2013, third quarter of 2013, and fourth quarter of 2012, respectively. This was an increase of $0.15 per diluted share, or 27.8%, over the third quarter of 2013, and an increase of $0.34 per diluted share, or 97.1%, over the fourth quarter of 2012. For the year ended December 31, 2013, the Company reported earnings per share on a diluted basis of $2.32 per diluted share compared to $2.02 per diluted share for the prior year end, an increase of $0.30 per diluted share, or 14.9%.

Earnings for the fourth quarter 2013 were impacted by fee income earned from the allocation of the Company's Federal New Markets Tax Credits (NMTC) received from the Community Development Financial Institutions Fund (CDFI) of the U.S. Treasury. As announced previously, the Company received a $50 million NMTC award in April 2013. As the Company allocates these credits to qualifying projects, it earns a fee as each project closes of 4% of the award. The Company recognizes fees related to tax credit projects when they are earned. Since the CDFI's NMTC awards are typically made in the spring of each year, the project closings tend to occur in the fourth quarter of the year of the CDFI award or the first quarter of the next year, and the Company's fee income reflects this timing. The tax credit business is not a consistent quarter over quarter business because it is contingent on the amount of allocation awarded, the type of credit being utilized, and the timing of the closing event for the recognition of the fee income. In the fourth quarter of 2013, the Company recognized $1.1 million in Community Development Entity fees earned compared to $0.4 million for the linked-quarter, and $0.9 million in the fourth quarter of 2012. For the year ended 2013, the Company recognized $2.9 million compared to $1.1 million for the year ended 2012. The increase is due primarily to the increase in qualifying projects and the NMTC allocation received in 2013.

Also in 2013, the Company received an allocation of $23.9 million of State of Louisiana New Markets Jobs Premium Tax Credits (a first time program) to be allocated to projects for which the Company allocates Federal NMTCs. The Company's income from these credits is generated from syndication fees on the sale of the credits to third party Louisiana taxpayers after the credits are earned through investment in a qualifying project. This state allocation generated $10.8 million in state credits, and the Company recorded income from the sale of state tax credits of $1.5 million in the fourth quarter of 2013.

Performance Highlights

  • The Company continues to experience strong asset growth, with total assets of $3.3 billion at December 31, 2013, an increase of 4.0% from September 30, 2013 and 23.1% from December 31, 2012.
  • During the fourth quarter of 2013, the Company invested in 11 Federal NMTC projects, which generated $15.6 million in tax benefits, of which $2.0 million were recognized in 2013 and $13.6 million are expected to be recognized in future periods.
  • The Company funded $20.7 million in construction loans during the fourth quarter related to these Federal NMTC projects and has additional commitments of $108.8 million.
  • The Company recorded $1.5 million in syndication fees in income from sales of state tax credits during the fourth quarter of 2013. This income from sales of state tax credits was generated from the $23.9 million in qualified investment authority that the Company was awarded under the State of Louisiana New Markets Jobs Act in the third quarter of 2013.
  • The net interest margin for the quarter ended December 31, 2013 was 3.26%, an increase of 18 basis points on a linked-quarter basis. The impact of the hedge executed by the Company during the third quarter of 2013 was an increase in the margin for the fourth quarter of 2013 of 9 basis points from the linked-quarter.
  • The Company's cost of deposits for the fourth quarter of 2013 was 1.58%, a decrease of 4 basis points on a linked-quarter basis due primarily to the implementation of the tiered rates on deposits.

Loans

The Company's loans totaled $2.4 billion at December 31, 2013, an increase of $140.3 million, or 6.3%, from September 30, 2013, and an increase of $435.6 million, or 22.7%, from December 31, 2012. Loan growth continues to be driven primarily by increases in commercial real estate and commercial loans due to favorable economic market conditions in the New Orleans trade area.

The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

Increase (Decrease) Increase (Decrease)
(dollars in thousands) December 31,
2013
September 30,
2013
Amount Percent December 31, 2012 Amount Percent
Construction $ 212,430 $ 192,241 $ 20,189 10.5% $ 168,544 $ 43,886 26.0%
Commercial real estate 1,128,181 1,120,422 7,759 0.7 988,994 139,187 14.1
Consumer real estate 117,653 113,414 4,239 3.7 103,516 14,137 13.7
Commercial 883,111 773,571 109,540 14.2 647,090 236,021 36.5
Consumer 16,402 17,864 (1,462) (8.2) 14,073 2,329 16.5
Total loans $ 2,357,777 $ 2,217,512 $ 140,265 6.3% $ 1,922,217 $ 435,560 22.7%

Deposits

Total deposits at December 31, 2013 were $2.7 billion, an increase of $96.6 million, or 3.7%, from September 30, 2013, and an increase of $462.3 million, or 20.4%, from December 31, 2012.

The following table sets forth the composition of the Company's deposits as of the dates indicated.

Increase (Decrease) Increase (Decrease)
(dollars in thousands) December 31,
2013
September 30,
2013
Amount Percent December 31, 2012 Amount Percent
Noninterest-bearing demand $ 291,080 $ 241,383 $ 49,697 20.6% $ 239,538 $ 51,542 21.5%
NOW accounts 511,620 544,005 (32,385) (6.0) 437,542 74,078 16.9
Money market deposits 655,173 541,088 114,085 21.1 410,928 244,245 59.4
Savings deposits 53,779 51,189 2,590 5.1 45,295 8,484 18.7
Certificates of deposits 1,219,155 1,256,512 (37,357) (3.0) 1,135,225 83,930 7.4
Total deposits $ 2,730,807 $ 2,634,177 $ 96,630 3.7% $ 2,268,528 $ 462,279 20.4%

Net Interest Income

Net interest income for the fourth quarter December 31, 2013 totaled $24.1 million, an increase of $2.3 million, or 10.5%, from the linked-quarter and an increase of $4.4 million, or 22.1%, from the three month period ended December 31, 2012. Net interest income for the year ended December 31, 2013 totaled $84.9 million, an increase of $10.1 million, or 13.5%, from the same period of 2012.

The Company's net interest margin was 3.26% for the quarter ended December 31, 2013, 18 basis points higher than the third quarter of 2013. The linked-quarter increase was due primarily to the first full quarter impact of the interest rate swaps, which increased the margin by 9 basis points as well as the lower cost of deposits which had a positive impact on the margin of 4 basis points. The Company expects these positive net interest margin trends to continue in 2014 and will continue to employ strategic initiatives to improve the net interest margin.

The following table sets forth the Company's average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated.

For the Three Months Ended
December 31, 2013 September 30, 2013 December 31, 2012
(dollars in thousands) Average Balance Average
Yield/Rate
Average Balance Average
Yield/Rate
Average Balance Average
Yield/Rate
Interest-earning assets:
Short- term investments $ 41,826 0.22% $ 84,019 0.22% $ 70,815 0.22%
Investment securities 615,380 2.75 556,360 2.40 455,491 1.96
Loans 2,276,661 5.25 2,167,325 5.23 1,877,237 5.53
Total interest-earning assets $ 2,933,867 4.66 $ 2,807,704 4.52 $ 2,403,543 4.70
Interest-bearing liabilities:
Savings $ 53,856 0.70 $ 52,215 0.62 $ 44,062 0.77
Money market deposits 600,943 1.43 468,151 1.50 405,830 1.62
NOW accounts 525,697 1.17 551,012 1.33 410,923 1.37
Certificates of deposit under $100,000 398,707 1.61 418,714 1.56 432,173 1.54
Certificates of deposit of $100,000 or more 666,125 1.95 663,698 1.93 553,929 1.80
CDARS® 178,359 2.16 174,161 2.17 126,858 2.40
Total interest-bearing deposits $ 2,423,687 1.58 $ 2,327,951 1.62 $ 1,973,775 1.63
Fed funds purchased and repurchase agreements 79,237 1.48 70,822 1.48 49,448 1.43
Other borrowings 55,202 2.65 55,220 2.65 58,572 2.50
Total interest-bearing liabilities $ 2,558,126 1.60 $ 2,453,993 1.64 $ 2,081,795 1.65
Net interest spread 3.06% 2.88% 3.05%
Net interest margin 3.26% 3.08% 3.27%
For The Years Ended
December 31, 2013 December 31, 2012
(dollars in thousands) Average Balance Average
Yield/Rate
Average Balance Average
Yield/Rate
Interest-earning assets:
Short- term investments $ 67,327 0.22% $66,525 0.22%
Investment securities 548,213 2.30 385,007 2.22
Loans 2,117,748 5.25 1,775,642 5.51
Total interest-earning assets $ 2,733,288 4.54 $ 2,227,174 4.78
Interest-bearing liabilities:
Savings $ 50,269 0.65 $ 41,700 0.63
Money market deposits 455,918 1.48 397,818 1.62
NOW accounts 521,721 1.28 329,691 1.24
Certificates of deposit under $100,000 418,525 1.57 445,494 1.56
Certificates of deposit of $100,000 or more 637,541 1.91 515,046 1.78
CDARS® 171,799 2.19 111,399 2.44
Total interest-bearing deposits $ 2,255,773 1.61 $ 1,841,148 1.61
Fed funds purchased and repurchase agreements 69,971 1.46 41,186 1.47
Other borrowings 70,838 2.66 55,732 2.61
Total interest-bearing liabilities $ 2,396,582 1.63 $ 1,938,066 1.63
Net interest spread 2.91% 3.15%
Net interest margin 3.11% 3.36%

Noninterest Income

Noninterest income for the fourth quarter of 2013 totaled $5.4 million, an increase of $0.6 million, or 13.3%, compared to the fourth quarter of 2012. The increase in noninterest income for the fourth quarter of 2013 compared to the fourth quarter of 2012 resulted primarily from increases of $0.6 million in gains on other assets sold, primarily from the sale of a piece of OREO property; $0.5 million in gains on sales of loans, primarily from the sale of loans acquired in the Central Progressive Bank acquisition; and $1.8 million in income from sales of state tax credits primarily related to its receipt of qualified equity investment authority from the State of Louisiana under the Louisiana New Markets Jobs Act, partially offset by a decrease of $2.5 million in securities gains. Noninterest income, excluding securities gains, for the quarter ended December 31, 2013, increased $3.1 million compared to the same quarter of 2012.

Noninterest income for the year ended December 31, 2013 totaled $13.4 million, an increase of $0.3 million, or 2.1%, from the same period last year. Noninterest income, excluding securities gains, for the year ended December 31, 2013 totaled $13.1 million, an increase of $4.3 million, or 48.7%, compared to the year ended December 31, 2012. The increase in noninterest income, excluding securities gains, for the year ended 2013 compared to the same period of 2012 resulted primarily from increases of $0.5 million in gains from the sale of other assets, $2.2 million in income from the sale of state tax credits, and $1.7 million in management fees from First NBC Community Development Fund, LLC related to the Fund's NMTC investments. The Company expects that its participation in the Federal NMTC investment program will continue to have a positive impact on noninterest income in future quarters to the extent the Company continues to receive allocations of Federal NMTC.

The Company realized $0.3 million and $4.3 million in securities gains during the years ended December 31, 2013 and 2012, respectively.

Noninterest Expense

Noninterest expense for the three month period ended December 31, 2013 totaled $19.4 million, an increase of $2.3 million, or 13.6%, compared to the linked quarter, and an increase of $5.6 million, or 40.4% compared to three month period ended December 31, 2012. The increase over the prior year three month period was due primarily to increases in salaries and employee benefits of $1.9 million, professional fees of $1.2 million, and tax credit amortization of $1.4 million.

Noninterest expense for the year ended December 31, 2013 totaled $67.3 million, an increase of $12.3 million, or 22.4%, compared to the same period of 2012. The increase in noninterest expense for the fiscal year ended 2013 compared to the fiscal year ended 2012, resulted primarily from increases in salaries and benefits expense of $3.5 million, professional fees of $3.7 million, and tax credit amortization of $3.8 million.

Taxes

The Company's tax benefit for the quarter and year ended December 31, 2013 was $5.9 million and $19.8 million, respectively, an increase of $6.3 million and $12.2 million, respectively, compared to the prior year quarter and year-end periods. The increase was due to the Company's participation in various tax credit programs.

The Company expects to experience an effective tax rate below the statutory rate of 35% due primarily to its receipt of Federal New Markets Tax Credits, Low-Income Housing Tax Credits and Federal Historic Rehabilitation Tax Credits.

Shareholders' Equity

Shareholders' equity totaled $381.9 million at December 31, 2013, an increase of $133.8 million from year-end 2012. The increase was primarily attributable to the results of the Company's initial public offering and retained earnings over the period. During the fourth quarter of 2013, the holders of the Company's convertible preferred stock Series C converted a portion of their shares to common stock.

About First NBC Bank Holding Company

First NBC Bank Holding Company, headquartered in New Orleans, Louisiana, offers a broad range of financial services through its wholly-owned banking subsidiary, First NBC Bank, a Louisiana state non-member bank. The Company's primary market is the New Orleans metropolitan area and the Mississippi Gulf Coast. The Company operates 32 full service banking offices located throughout its market and a loan production office in Gulfport, Mississippi and had 494 employees at December 31, 2013.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures typically adjust GAAP performance measures to adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company's financial results, and the Company believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting the Company's business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "could," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company's current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company's operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, the Company's actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company's Quarterly Report on Form 10-Q, for the quarters ended June 30, 2013 and September 30, 2013, and other reports and statements the Company has filed with Securities and Exchange Commission which are available at the SEC's website (www.sec.gov).

FIRST NBC BANK HOLDING COMPANY
CONSOLIDATED BALANCE SHEETS-UNAUDITED
(In thousands) December 31, 2013 December 31, 2012
Assets
Cash and due from banks $ 28,140 $ 26,471
Short-term investments 3,502 9,541
Investment securities available for sale, at fair value 524,536 486,399
Investment securities held to maturity 94,904 --
Mortgage loans held for sale 6,577 25,860
Loans, net of allowance for loan losses of $32,143 and $26,977, respectively 2,325,634 1,895,240
Bank premises and equipment, net 51,174 47,067
Accrued interest receivable 10,994 8,728
Goodwill and other intangible assets 8,433 8,682
Investment in real estate properties 10,147 6,935
Investment in tax credit entities 117,684 67,393
Cash surrender value of bank-owned life insurance 26,187 25,506
Other real estate 3,733 8,632
Deferred tax asset 51,191 16,589
Receivables from sales of investments -- 16,909
Other assets 23,781 20,915
Total assets $ 3,286,617 $ 2,670,867
Liabilities and equity
Deposits:
Noninterest-bearing $ 291,080 $ 239,538
Interest-bearing 2,439,727 2,028,990
Total deposits 2,730,807 2,268,528
Short-term borrowings 8,425 21,800
Repurchase agreements 75,957 36,287
Long-term borrowings 55,110 75,220
Accrued interest payable 6,682 5,557
Other liabilities 27,777 15,373
Total liabilities 2,904,758 2,422,765
Shareholders' equity:
Preferred stock
Convertible preferred stock Series C – no par value; 1,680,219 shares authorized; 364,983 and 916,841 shares issued and outstanding at December 31, 2013 and December 31, 2012 10,679 11,231
Preferred stock Series D – no par value; 37,935 shares authorized, issued and outstanding at December 31, 2013 and December 31, 2012 37,935 37,935
Common stock- par value $1 per share; 20,000,000 shares authorized; 18,514,271 shares issued and outstanding at December 31, 2013 and 13,052,583 shares issued and outstanding at December 31, 2012 18,514 13,052
Additional paid-in capital 230,855 128,984
Accumulated earnings 100,389 59,825
Accumulated other comprehensive loss, net (16,515) (2,926)
Total shareholders' equity 381,857 248,101
Noncontrolling interest 2 1
Total equity 381,859 248,102
Total liabilities and equity $ 3,286,617 $ 2,670,867
FIRST NBC BANK HOLDING COMPANY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months Ended
December 31,
For the Years Ended
December 31,
(In thousands, except per share data) 2013 2012 2013 2012
Interest income:
Loans, including fees $ 30,143 $ 26,114 $ 111,260 $ 97,754
Investment securities 4,271 2,241 12,619 8,559
Short-term investments 23 39 145 144
34,437 28,394 124,024 106,457
Interest expense:
Deposits 9,661 8,102 36,239 29,597
Borrowings and securities sold under repurchase agreements 665 549 2,909 2,069
10,326 8,651 39,148 31,666
Net interest income 24,111 19,743 84,876 74,791
Provision for loan losses 2,400 4,800 9,800 11,035
Net interest income after provision for loan losses 21,711 14,943 75,076 63,756
Noninterest income:
Service charges on deposit accounts 566 493 2,027 2,486
Investment securities gain, net 10 2,464 316 4,324
Gain (loss) on other assets sold, net 914 275 1,055 504
Gain (loss) on fixed assets, net 6 -- 16 (4)
Gain on sale of loans, net 513 -- 835 603
Cash surrender value income on bank-owned life insurance 165 183 681 750
Income from sales of state tax credits 1,605 (212) 2,785 578
Community Development Entity fees earned 1,147 860 2,875 1,136
ATM fee income 472 436 1,859 1,686
Other 3 258 967 1,073
5,401 4,757 13,416 13,136
Noninterest expense:
Salaries and employee benefits 7,169 5,247 23,812 20,307
Occupancy and equipment expenses 2,612 2,321 10,204 9,755
Professional fees 2,225 1,023 6,929 3,269
Taxes, licenses and FDIC assessments 1,307 925 4,245 3,258
Tax credit investment amortization 2,344 901 8,639 4,808
Write-down of other real estate 94 44 225 295
Data processing 1,017 1,305 4,219 4,485
Advertising and marketing 951 287 2,427 1,904
Other 1,704 1,767 6,632 6,926
19,423 13,820 67,332 55,007
Income before income taxes 7,689 5,880 21,160 21,885
Income tax (benefit) expense (5,867) 443 (19,751) (7,565)
Net income 13,556 5,437 40,911 29,450
Less net income attributable to noncontrolling interests -- (375) -- (510)
Net income attributable to Company 13,556 5,062 40,911 28,940
Less preferred stock dividends (95) (95) (347) (510)
Income available to common shareholders $ 13,461 $ 4,967 $ 40,564 $ 28,430
Earnings per common share – basic $ 0.71 $ 0.36 $ 2.38 $ 2.04
Earnings per common share – diluted $ 0.69 $ 0.35 $ 2.32 $ 2.02
FIRST NBC BANK HOLDING COMPANY
EARNINGS PER COMMON SHARE
For the Three Months Ended
December 31,
For the Years Ended
December 31,
(In thousands, except per share data) 2013 2012 2013 2012
Basic: Net income available to common shareholders $ 13,461 $ 4,967 $ 40,564 $ 28,430
Less: Net income attributable to participating securities (Series C preferred stock) 468 312 1,980 2,003
Net income attributable to common shareholders $ 12,993 $ 4,655 $ 38,584 $ 26,427
Weighted-average common shares outstanding 18,269,074 13,030,916 16,203,919 12,948,076
Basic earnings per share $ 0.71 $ 0.36 $ 2.38 $ 2.04
Diluted: Net income attributable to common shareholders $ 12,993 $ 4,655 $ 38,584 $ 26,427
Weighted-average common shares outstanding 18,269,074 13,030,916 16,203,919 12,948,076
Effect of dilutive securities:
Stock options outstanding 439,929 113,545 337,371 88,883
Warrants 102,974 52,703 82,824 45,614
Weighted-average common shares outstanding – assuming dilution 18,811,977 13,197,164 16,624,114 13,082,573
Diluted earnings per share $ 0.69 $ 0.35 $ 2.32 $ 2.02
FIRST NBC BANK HOLDING COMPANY
SUMMARY FINANCIAL INFORMATION
For the Three Months Ended
December 31,
For the Three
Months Ended
September 30,
(In thousands, except per share data) 2013 2012 % Change 2013 % Change
EARNINGS DATA
Total Interest income $ 34,437 $ 28,394 21.3% $ 31,973 7.7%
Total Interest expense 10,326 8,651 19.4 10,150 1.7
Net interest income 24,111 19,743 22.1 21,823 10.5
Provision for loan losses 2,400 4,800 (50.0) 2,400 --
Total noninterest income 5,401 4,757 13.5 2,461 NM
Total noninterest expense 19,423 13,820 40.5 17,092 13.6
Income before income taxes 7,689 5,880 30.8 4,792 60.5
Income tax (benefit) expense (5,867) 443 NM (5,673) 3.4
Net income 13,556 5,437 NM 10,465 29.5
Net income attributable to noncontrolling interest -- (375) NM -- --
Preferred stock dividends (95) (95) -- (62) 53.2
Net income available to common shareholders $ 13,461 $ 4,967 NM $ 10,403 29.4
AVERAGE BALANCE SHEET DATA
Total assets $ 3,209,664 $ 2,605,642 23.2% $ 3,090,916 3.8%
Total interest-earning assets 2,933,867 2,403,543 22.1 2,807,704 4.5
Total loans 2,276,661 1,877,237 21.3 2,167,325 5.0
Total interest-bearing deposits 2,423,687 1,973,775 22.8 2,327,951 4.1
Total interest-bearing liabilities 2,558,126 2,081,795 22.9 2,453,993 4.2
Total deposits 2,670,089 2,223,579 20.1 2,571,461 3.8
Total shareholders' equity 369,743 248,588 48.7 366,420 0.9
SELECTED RATIOS(1)
Return on average common equity 16.77% 10.10% 13.09%
Return on average equity 14.55 8.10 11.33
Return on average assets 1.68 0.77 1.34
Net interest margin 3.26 3.27 3.08
Efficiency ratio(2) 65.81 56.43 70.39
Tier 1 leverage capital ratio(3) 10.96 9.91 10.99
Total risk-based capital ratio(3) 13.48 13.13 14.07
ASSET QUALITY RATIOS(1)
Nonperforming loans to total loans(4) (6) 0.76% 1.22% 0.92%
Nonperforming assets to total assets(5) 0.67 1.20 0.86
Allowance for loan losses to total loans(6) 1.36 1.40 1.35
Allowance for loan losses to nonperforming loans(4) 178.34 115.19 146.35
Net charge-offs to average loans 0.22 0.12 0.21
(1) With the exception of end-of-period ratios, all ratios are based on average monthly balances during the respective periods.
(2) Efficiency ratio is the ratio of noninterest expense to net interest income and noninterest income.
(3) Capital ratios are end of period ratios for the Bank only.
(4) Nonperforming loans consist of nonaccrual loans and restructured loans.
(5) Nonperforming assets consist of nonperforming loans and real estate and other property that has been repossessed.
(6) Total loans are net of unearned discounts and deferred fees and costs.
FIRST NBC BANK HOLDING COMPANY
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
For the Three Months Ended
December 31, 2013 December 31, 2012
Dollar Amount Dollar Amount
(In thousands, except per share data) Pre-tax After-tax(1) Per share Pre-tax After-tax(1) Per share
Net income (GAAP) $ 7,689 $ 13,556 $ 0.71 $ 5,880 $ 5,437 $ 0.36
Noninterest income adjustments
(Gain) on sale of investment securities (10) (7) -- (2,464) (1,602) (0.12)
(Gain) on sale of OREO (1,012) (658) (0.04) -- -- --
(Gain) on sale of acquired impaired loans(2) (327) (212) (0.01) -- -- --
Net income (Non-GAAP) $ 6,340 $ 12,679 $ 0.66 $ 3,416 $ 3,835 $ 0.24
(1) After-tax amounts are based on a 35% marginal tax rate, except for Net income which reflects the actual tax benefit/expense.
(2) Sale relates to acquired impaired loans from the CPB acquisition in November 2011.
FIRST NBC BANK HOLDING COMPANY
SUMMARY OF FEDERAL NEW MARKETS TAX CREDIT ACTIVITY
For the Three Months Ended For the Year Ended
(dollars in thousands) December 31,
2013
December 31,
2012
December 31,
2013
December 31,
2012
Projects closed (1) 4 3 8 4
NMTC allocation $ 18,500 $ 19,500 $ 55,500 $ 25,500
Community Development Entity fees earned $ 1,147 $ 860 $ 2,875 $ 1,136
Projects invested not closed 7 3 7 3
(1) Closing event occurred for recognition of fee income.

CONTACT: For further information contact: First NBC Bank Holding Company Ashton J. Ryan, Jr. President and Chief Executive Officer (504) 671-3801 aryanjr@firstnbcbank.comSource:First NBC Bank Holding Company