(Source: Business Wire)
Commerce Bancshares, Inc. (NASDAQ: CBSH) announced earnings of $.48 per share for the quarter ended June 30, 2009 compared to $.40 per share in the previous quarter and $.74 per share in the second quarter of 2008. Net income for the second quarter amounted to $37.0 million compared to $30.8 million in the previous quarter and $56.0 million in the same period last year. For the quarter, the return on average assets totaled .84% and the return on average equity was 8.9%. During the quarter, the ratio of tangible common equity to total assets increased from 8.2% to 8.9%.
For the six months ended June 30, 2009, earnings per share totaled $.88 compared to $1.58 for the first six months of last year. Net income amounted to $67.8 million in the first half of 2009 compared with $120.1 million in 2008, or a decline of $52.3 million. This decline resulted mainly from higher loan loss provisions and FDIC insurance expense in 2009.
In making this announcement, David W. Kemper, Chairman and CEO, said, "Although the overall economy remains difficult, we are pleased to report an increase in net income over the previous quarter as a result of growth in net interest income, higher core fees and good expense control. While loan balances declined this quarter, average deposits grew 5% over the previous quarter, providing an increase in overall earning assets and contributing to solid growth in net interest income. Additionally, non-interest income this quarter grew 7% compared to the previous quarter as result of double digit growth in bank card and bond trading fees, along with renewed growth in both deposit and trust fees. While non-interest expense increased 5% over the previous quarter, it included an FDIC special assessment of $8.0 million. Excluding this charge, non-interest expense would have declined compared to the first quarter of 2009."
Mr. Kemper continued, "This quarter we continued to strengthen our balance sheet by improving liquidity, increasing capital and building our loan loss reserves. Tangible common equity increased $90 million this quarter through retained earnings, appreciation of our securities portfolio and stock issuance. During the quarter we increased our allowance for loan losses by $5.1 million to $186.0 million, representing 1.74% of outstanding loans. Non-performing assets, consisting of non-accrual loans and foreclosed property, grew by $13.0 million to $131.7 million, or 1.23% of loans. Our loan to deposit ratio totaled 82% this quarter, reflecting good overall liquidity."
Total assets at June 30, 2009 were $17.7 billion, total loans were $11.1 billion, and total deposits were $13.7 billion.
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 over 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) 3/31/09 6/30/09 6/30/08 Non-Accrual Loans $110,019 $122,648 $29,184 Foreclosed Real Estate $8,666 $9,039 $7,525 Total Non-Performing Assets $118,685 $131,687 $36,709 Non-Performing Assets to Loans 1.08% 1.23% .33% Non-Performing Assets to Total Assets .66% .74% .22% Loans 90 Days & Over Past Due -- Still Accruing $51,411 $39,968 $26,293 -------------------------------------------------------------------------------
This financial news release, including management's discussion of second quarter results, is posted to the Company's web site at www.commercebank.com.
COMMERCE BANCSHARES, INC. and SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) For the Three Months Ended For the Six Months Ended March 31 June 30 June 30 June 30 June 30 2009 2009 2008 2009 2008 FINANCIAL SUMMARY (In thousands, except per share data) Net interest income $150,015 $157,445 $144,779 $307,460 $284,886 Taxable equivalent net interest income 153,942 162,323 148,455 316,265 292,152 Non-interest income 92,431 98,562 102,733 190,993 194,893 Investment securities gains (losses), net (2,172 ) (2,753 ) 1,008 (4,925 ) 24,331 Provision for loan losses 43,168 41,166 18,000 84,334 38,000 Non-interest expense 152,886 160,011 147,065 312,897 287,246 Net income 30,836 36,968 55,979 67,804 120,146 Cash dividends 18,259 18,515 18,000 36,774 35,985 Net total loan charge-offs 34,919 36,033 14,491 70,952 26,388 Business charge-offs 3,842 2,378 1,049 6,220 540 Real estate - construction and land charge-offs 9,226 10,373 203 19,599 977 Real estate - business charge-offs 776 1,033 39 1,809 941 Consumer credit card charge-offs 10,763 13,214 7,935 23,977 14,528 Consumer charge-offs 9,333 8,476 4,530 17,809 8,486 Home equity charge-offs 300 96 136 396 130 Student charge-offs - 2 - 2 - Real estate - personal charge-offs 545 215 73 760 174 Overdraft charge-offs 134 246 526 380 612 Per common share: Net income - basic $0.41 $0.48 $0.74 $0.89 $1.59 Net income - diluted $0.40 $0.48 $0.74 $0.88 $1.58 Cash dividends $0.240 $0.240 $0.238 $0.480 $0.476 Diluted wtd.
