(Source: Business Wire)
Commerce Bancshares, Inc. (NASDAQ: CBSH) announced earnings of $.40 per share for the three months ended March 31, 2009 compared to $.84 per share in the first quarter of 2008. Net income for the first quarter amounted to $30.8 million compared to $64.2 million in the same period last year. The first quarter last year included a $22.2 million pre-tax cash gain on the sale of VISA Inc. (VISA) stock and the reversal of certain VISA litigation charges totaling $8.8 million pre-tax, which had the effect of increasing earnings per share by approximately $.26. For the quarter, the return on average assets totaled .73% and the return on average equity was 7.8%. At quarter end, the ratio of tangible common equity to total assets was 8.2%.
In announcing these results, David W. Kemper, Chairman and CEO, said, "Net income for the first quarter 2009 was down from the previous year mainly due to an increase in our loan loss provision resulting from higher credit losses created by current economic conditions. In the current quarter the loan loss provision increased $23.2 million over the same period last year and $1.8 million compared to the previous quarter. At March 31, 2009, the allowance for loan losses totaled $180.9 million, an increase of $8.2 million during the quarter, and represents 164% of our total non-accrual loans and 1.65% of outstanding loans."
Further, Mr. Kemper noted, "In this environment our balance sheet has remained strong, liquidity continues to improve and our key business units are operating within plan. During the quarter, average deposits grew 6.5% on strong growth from both consumers and businesses, which increased earning assets. Also net interest income this quarter increased by 7% over the same period last year due to higher earning assets and a stable net interest margin. Non-interest income, while essentially flat with the previous year, totaled $92.4 million and amounted to 38% of total revenue. Non-interest expense, exclusive of the VISA indemnification noted above in 2008, grew by only 2.6%."
Total assets at March 31, 2009 were $17.9 billion, total loans were $11.4 billion, and total deposits were $14.0 billion. Also, in February 2009, the Company entered into an equity distribution agreement with a broker dealer pursuant to which the Company may, from time to time, offer and sell shares of the Company's common stock having aggregate proceeds of up to $200 million.
Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The Company currently operates in 370 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, and private equity activities.
Summary of Non-Performing Assets and Past Due Loans
(Dollars in thousands) 12/31/08 3/31/09 3/31/08 Non-Accrual Loans $72,896 $110,019 $25,190 Foreclosed Real Estate $6,181 $8,666 $10,639 Total Non-Performing Assets $79,077 $118,685 $35,829 Non-Performing Assets to Loans .70% 1.08% .33% Non-Performing Assets to Total Assets .45% .66% .21% Loans 90 Days & Over Past Due -- Still Accruing $39,964 $51,411 $25,759 -------------------------------------------------------------------------------
This financial news release, including management's discussion of first quarter results, is posted to the Company's web site at www.commercebank.com.
For additional information, contact Jeffery Aberdeen, Controller at PO Box 419248, Kansas City, MO or by telephone at (816) 234-2081 Web Site: http://www.commercebank.com Email: mymoney@commercebank.com
COMMERCE BANCSHARES, INC. and SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) For the Three Months Ended December 31 March 31 March 31 2008 2009 2008 FINANCIAL SUMMARY (In thousands, except per share data) Net interest income $ 156,289 $ 150,015 $ 140,107 Taxable equivalent net interest income 161,037 153,942 143,697 Non-interest income 85,226 92,431 92,160 Investment securities gains (losses), net 4,814 (2,172 ) 23,323 Provision for loan losses 41,333 43,168 20,000 Non-interest expense 143,688 152,886 140,181 Net income 43,836 30,836 64,167 Cash dividends 18,052 18,260 17,985 Net total loan charge-offs 24,745 34,919 11,897 Business charge-offs (recoveries) 2,099 3,842 (509 ) Real estate - construction and land charge-offs 4,021 9,226 774 Real estate - business charge-offs 978 776 902 Consumer credit card charge-offs 8,674 10,763 6,593 Consumer charge-offs 6,901 9,333 3,956 Home equity charge-offs (recoveries) 91 300 (6 ) Real estate - personal charge-offs 1,358 545 101 Overdraft charge-offs 623 134 86 Per common share: Net income - basic $ 0.58 $ 0.41 $ 0.85 Net income - diluted $ 0.57 $ 0.40 $ 0.84 Cash dividends $ 0.238 $ 0.240 $ 0.238 Diluted wtd. average shares o/s 76,178 76,007 75,907 RATIOS Average loans to deposits (1) 91.09 % 87.23 % 91.78 % Return on total average assets 1.04 % 0.73 % 1.59 % Return on total average equity 10.82 % 7.82 % 16.52 % Non-interest income to revenue (2) 35.29 % 38.12 % 39.68 % Efficiency ratio (3) 59.02 % 62.58 % 59.87 % AT PERIOD END Book value per share based on total equity $ 20.84 $ 21.19 $ 20.95 Market value per share $ 43.95 $ 36.30 $ 40.03 Allowance for loan losses as a percentage of loans 1.53 % 1.65 % 1.30 % Tier I leverage ratio 9.06 % 8.93 % 8.88 % Tangible equity to assets ratio (4) 8.25 % 8.24 % 8.62 % Common shares outstanding 75,790,948 75,992,925 75,447,078 Shareholders of record 4,512 4,595 4,598 Number of bank/ATM locations 368 370 362 Full-time equivalent employees 5,217 5,222 5,128 OTHER YTD INFORMATION March 31 March 31 2009 2008 High market value per share $ 44.41 $ 43.43 Low market value per share $ 27.80 $ 36.19 (1) Includes loans held for sale.
