(Source: Business Wire)
Commerce Bancshares, Inc. (NASDAQ: CBSH) announced earnings of $.66 per
share for the quarter ended September 30, 2009, compared to $.48 per
share in the previous quarter and $.32 per share in the third quarter of
2008. Net income for the third quarter amounted to $51.6 million
compared to $37.0 million in the previous quarter and $24.7 million in
the same period last year. During the third quarter of 2008, the Company
recorded a loss on the purchase of auction rate securities totaling
approximately $21 million after tax, or $.27 per share. For the quarter,
the return on average assets totaled 1.16% and the return on average
equity was 11.5%.
For the nine months ended September 30, 2009, earnings per share totaled
$1.54 compared to $1.90 for the first nine months of last year. Net
income amounted to $119.5 million for the first nine months of 2009
compared with $144.8 million in 2008, or a decline of $25.4 million. At
September 30, 2009, the ratio of tangible common equity to total assets
improved to 9.6% compared to 8.7% at the same time last year.
In making this announcement, David W. Kemper, Chairman and CEO, said,
"Although the economy remains challenging, this quarter we were pleased
to report an increase in net income of 40%, or $14.7 million, over the
previous quarter. The increase in net income over the previous quarter
was mainly the result of 4% growth in total revenue and good overall
expense control. Our net interest margin increased to 4.02% from 3.91%
in the previous quarter. Loan balances continued to decline this quarter
as a result of weak demand, while deposits were relatively flat."
Mr. Kemper continued, "During this quarter we strengthened our balance
sheet, enhancing both our capital and liquidity positions while also
building our loan loss reserves. Tangible common equity increased $153
million this quarter through retained earnings, securities portfolio
appreciation and stock issuance. Liquidity also increased as our loan to
deposit ratio declined to 77.4%. During the quarter we increased our
allowance for loan losses by $4.5 million to $190.5 million,
representing 1.85% of outstanding loans. Net loan charge-offs declined
by $5.1 million from the prior quarter. Non-performing assets,
consisting of non-accrual loans and foreclosed property, declined by
$2.5 million to $129.2 million, or 1.26% of loans."
Total assets at September 30, 2009, were $18.0 billion, total loans were
$10.6 billion, and total deposits were $13.8 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) 6/30/09 9/30/09 9/30/08
Non-Accrual Loans $122,648 $121,698 $41,600
Foreclosed Real Estate $9,039 $7,535 $4,622
Total Non-Performing Assets $131,687 $129,233 $46,222
Non-Performing Assets to Loans 1.23% 1.26% . 42%
Non-Performing Assets to Total Assets .74% .72% .27%
Loans 90 Days & Over Past Due -- StillAccruing $39,968 $45,614 $31,878
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This financial news release, including management's discussion of third
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 Nine Months Ended
June 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
2009 2009 2008 2009 2008
FINANCIAL SUMMARY (In thousands, except per share data)
Net interest income $ 157,445 $ 163,539 $ 151,564 $ 470,999 $ 436,450
Taxable equivalent net
interest income 162,323 168,408 155,458 484,673 447,610
Non-interest income 98,562 102,135 95,593 293,128 290,486
Investment securities gains (losses), net (2,753 ) (945 ) 1,149 (5,870 ) 25,480
Provision for loan losses 41,166 35,361 29,567 119,695 67,567
Non-interest expense 160,011 154,489 184,446 467,386 471,692
Net income 36,968 51,649 24,673 119,453 144,819
Cash dividends 18,515 18,962 18,018 55,736 54,003
Net total loan charge-offs 36,033 30,896 18,734 101,848 45,122
Business charge-offs 2,378 4,626 1,775 10,846 2,315
Real estate - construction
and land charge-offs 10,373 4,463 1,217 24,062 2,194
Real estate - business charge-offs 1,033 1,253 257 3,062 1,198
Consumer credit card charge-offs 13,214 12,577 8,314 36,554 22,842
Consumer charge-offs 8,476 6,522 6,060 24,331 14,546
Home equity charge-offs 96 233 208 629 338
Student charge-offs 2 2 - 4 -
Real estate - personal charge-offs 215 797 182 1,557 356
Overdraft charge-offs 246 423 721 803 1,333
Per common share:
Net income - basic $ 0.48 $ 0.66 $ 0.33 $ 1.55 $ 1.92
Net income - diluted $ 0.48 $ 0.66 $ 0.32 $ 1.54 $ 1.90
Cash dividends $ 0.240 $ 0.240 $ 0.238 $ 0.720 $ 0.714
Diluted wtd. average shares o/s 76,690 78,563 76,065 77,096 75,976
RATIOS
Average loans to deposits (1) 81.58 % 77.40 % 93.29 % 81.96 % 92.46 %
Return on total average assets 0.84 % 1.16 % 0.60 % 0.91 % 1.18 %
Return on total average equity 8.91 % 11.49 % 6.06 % 9.49 % 12.14 %
Non-interest income to revenue (2) 38.50 % 38.44 % 38.68 % 38.36 % 39.96 %
Efficiency ratio (3) 62.15 % 57.75 % 74.20 % 60.76 % 64.43 %
AT PERIOD END
Book value per share based on total equity $ 22.04 $ 23.45 $ 21.16
Market value per share $ 31.83 $ 37.24 $ 44.19
Allowance for loan losses
as a percentage of loans 1.74 % 1.85 % 1.42 %
Tier I leverage ratio 9.08 % 9.65 % 9.11 %
Tangible equity to assets ratio (4) 8.85 % 9.60 % 8.66 %
Common shares outstanding 77,049,199 78,922,671 75,701,500
Shareholders of record 4,503 4,449 4,487
Number of bank/ATM locations 373 373 367
Full-time equivalent employees 5,181 5,148 5,202
Sept. 30 Sept.