First Commercial Announces Increased Cash Dividend

Business Wire, Nov 15, 1994

LITTLE ROCK, Ark.--(BUSINESS WIRE)--November 15, 1994--Barnett Grace, chairman and chief executive officer of First Commercial Corporation, (NASDAQ/NMS:FCLR) the Arkansas-based bank holding company, announced today that FCC will pay a 5% stock dividend and will increase the annual cash dividend on its common stock from 72 cents per share to 80 cents per share.

The stock dividend in combination with the increased cash dividend will produce an aggregate cash dividend increase of 16.7% for FCC shareholders. The increased cash dividend will be payable on both shares currently outstanding and new shares issued through the stock dividend. The stock dividend will be payable on January 3, 1995, to shareholders of record as of December 15, 1994. The increased cash dividend will be payable on January 3, 1995, to shareholders of record as of December 16, 1994.

This increase, when combined with recent cash dividend increases and stock dividends, has generated a five year compound annual growth rate in cash dividends for FCC shareholders of over 18%. The stock dividend and increased cash dividend were unanimously approved by FCC's Board of Directors during the annual review of dividend related matters. This action reflects the Board's continued confidence in the earnings stream of FCC, and serves to further reward FCC shareholders with a strong cash dividend.

In other business, FCC's Board announced that it has reauthorized the common stock repurchase program in aggregate amounts of up to 5% of outstanding shares for an additional year. The program was originally approved on February 15, 1994, and at that time was scheduled for annual review when dividend matters are considered. First Commercial may purchase its shares in the open market from time to time at prevailing market prices or in negotiated transactions. First Commercial intends to use the repurchased shares to fund future stock dividends and stock option exercises and for other corporate purposes.

"This represents the 8th consecutive year that FCC shareholders have received an increased dividend," noted Grace. "Our shareholders have experienced excellent returns over the years as our organization has expanded both geographically and within existing markets. We owe much of this success to the skill of our bankers and the support of our shareholders."

First Commercial Corporation is a $4.3 billion bank holding company with 22 affiliate banks, 12 of which are in Arkansas, 8 in Texas, 1 in Tennessee, and 1 in Oklahoma. FCC's non-bank subsidiaries include First Commercial Mortgage Company, First Commercial Trust Company, N.A., First Commercial Investments, Inc. and First Commercial Capital Management.

CONTACT: First Commercial Corporation, Little Rock

Lynn Wright, 501/371-7142