Commerce Bancshares, Inc. Announces First Quarter Earnings Per Share of $.67

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Commerce Bancshares, Inc. Announces First Quarter Earnings Per Share of $.67

KANSAS CITY, Mo.--(BUSINESS WIRE)-- Commerce Bancshares, Inc. (Nasdaq: CBSH) announced earnings of $.67 per share for the three months ended March 31, 2013 compared to $.70 per share in the first quarter of 2012, or a decrease of 4.3%.Net income for the first quarter amounted to $61.0 million, compared to $65.8 million in the same quarter last year.For the quarter, the return on average assets totaled 1.13%, the return on average equity was 11.4% and the efficiency ratio was 61.8%.

In announcing these results, David W. Kemper, Chairman and CEO, said, "We continued to see solid growth in both our loan and deposit balances.Compared to the previous quarter, average loans increased $248 million, or 10.4% annualized, while average deposits grew by $735 million.Loan growth came from both consumer and commercial lending activities.Low interest rates, affecting both loans and investments, coupled with a decline in interest on our inflation-protected government securities of $4.8 million, resulted in a decline in net interest income of $10.9 million from the previous quarter.However, this decrease in net interest income was somewhat offset by a decline in credit costs of $5.0 million and a decline in non-interest expense of $3.2 million as a result of lower compensation costs and continuous expense control efforts.Furthermore, we continued to see strong revenue growth from our corporate card, merchant and trust fee businesses which grew by 19%, 12% and 10%, respectively, compared to the first quarter of last year.


Mr. Kemper continued, "Net loan charge-offs for the current quarter totaled $7.8 million, compared to $11.2 million in the first quarter of 2012 and $10.8 million in the previous quarter.Consumer net loan charge-offs declined slightly this quarter compared to the previous quarter and totaled $8.5 million, while commercial loans recorded net recoveries of $686 thousand.During the current quarter, the provision for loan losses totaled $3.3 million, or $4.5 million less than net loan charge-offs, reflecting lower commercial loan loss trends and continued positive delinquency results.Our allowance for loan losses amounted to $168.0 million this quarter, representing 3.8 times our non-performing loans.Total non-performing assets also decreased $5.9 million from the previous quarter to $58.9 million this quarter."

Total assets at March 31, 2013 were $22.2 billion, total loans were $10.0 billion, and total deposits were $18.5 billion.During the quarter, the Company repurchased approximately 808,000 shares of its common stock at an average price per share of $37.13.

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 approximately 360 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) 12/31/2012 3/31/2013 3/31/2012
Non-Accrual Loans $51,410 $44,739 $68,875
Foreclosed Real Estate $13,453  $14,191  $18,585 
Total Non-Performing Assets $64,863  $58,930  $87,460 
Non-Performing Assets to Loans .66% .59% .95%
Non-Performing Assets to Total Assets .29% .27% .43%
Loans 90 Days & Over Past Due — Still Accruing $15,347  $15,015  $16,428 
 

This financial news release, including management's discussion of first quarter results, is posted to the Company's web site atwww.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

   
 For the Three Months Ended
(Unaudited) December 31,
2012
 March 31,
2013
 March 31,
2012
FINANCIAL SUMMARY(In thousands, except per share data)
Net interest income$161,253 $150,343 $159,737
Taxable equivalent net interest income168,428156,708165,666
Non-interest income103,30999,87794,583
Investment securities gains (losses), net(3,728)(2,165)4,040
Provision for loan losses8,3263,2858,165
Non-interest expense158,277155,037150,461
Net income attributable to Commerce Bancshares, Inc.66,79161,01765,799
Cash dividends150,78920,43520,438
Net total loan charge-offs (recoveries)10,8267,78511,165
Business791(50)110
Real estate — construction and land(517)(532)220
Real estate — business1,799(104)1,495
Consumer credit card6,0956,0486,173

Consumer

1,7311,7092,631
Revolving home equity187139360
Real estate — personal41137369

Overdraft

329202107
Per common share:
Net income — basic$.73$.67$.70

Net income — diluted

$.72$.67$.70
Cash dividends$1.648$.225$.219
Diluted wtd. average shares o/s 90,999  90,444  92,984 
RATIOS
Average loans to deposits (1)55.53%54.65%55.53%
Return on total average assets1.25%1.13%1.29%
Return on total average equity11.62%11.38%12.04%
Non-interest income to revenue (2)39.05%39.92%37.19%
Efficiency ratio (3) 59.62% 61.76% 58.91%
AT PERIOD END
Book value per share based on total equity$23.76$24.02$23.64
Market value per share$35.06$40.83$38.59
Allowance for loan losses as a percentage of loans1.75%1.68%1.96%
Tier I leverage ratio9.14%8.92%9.70%
Tangible common equity to assets ratio (4)9.25%9.26%10.12%
Common shares outstanding91,414,30690,739,03893,012,999
Shareholders of record4,1354,1274,213
Number of bank/ATM locations362359360
Full-time equivalent employees 4,708  4,725  4,713 
OTHER QTD INFORMATION
High market value per share$38.70$40.89$39.31
Low market value per share $34.69  $35.40  $35.78 

(1)

 

Includes loans held for sale.

(2)

Revenue includes net interest income and non-interest income.

(3)

The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.

(4)

The tangible common equity ratio is calculated as stockholders' equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).

 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

 
 For the Three Months Ended
(Unaudited)

(In thousands, except per share data)

 December 31,
2012
 March 31,
2013
 March 31,
2012
Interest income$170,185 $158,745 $169,966
Interest expense8,932 8,402 10,229 
Net interest income161,253150,343159,737
Provision for loan losses8,326 3,285 8,165 
Net interest income after provision for loan losses152,927 147,058 151,572 
NON-INTEREST INCOME
Bank card transaction fees41,54238,55034,733
Trust fees24,35125,16922,814
Deposit account charges and other fees20,30118,71219,336
Capital market fees4,0754,3916,871
Consumer brokerage services2,6192,6862,526
Loan fees and sales1,4121,4731,561
Other9,009 8,896 6,742 
Total non-interest income103,309 99,877 94,583 
INVESTMENT SECURITIES GAINS (LOSSES), NET
Impairment (losses) reversals on securities(356)1,3895,587
Noncredit-related losses (reversals) on securities not expected to be sold93 (1,831)(5,907)
Net impairment losses(263)(442)(320)
Realized gains (losses) on sales and fair value adjustments(3,465)(1,723)4,360 
Investment securities gains (losses), net(3,728)(2,165)4,040 
NON-INTEREST EXPENSE
Salaries and employee benefits94,55390,88189,543
Net occupancy11,58111,23511,260
Equipment4,9834,6835,189
Supplies and communication5,6415,5895,613
Data processing and software18,76818,95117,469
Marketing2,7153,3593,822
Deposit insurance2,6922,7672,520
Other17,344 17,572 15,045 
Total non-interest expense158,277 155,037 150,461 
Income before income taxes94,23189,73399,734
Less income taxes27,628 28,925 32,920 
Net income66,60360,80866,814
Less non-controlling interest expense (income)(188)(209)1,015 
Net income attributable to Commerce Bancshares, Inc.$66,791 $61,017 $65,799 
Net income per common share — basic$.73 $.67 $.70 
Net income per common share — diluted $.72  $.67  $.70 
 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

       
(Unaudited)

(In thousands)

 December 31,
2012
 March 31,
2013
 March 31,
2012
ASSETS   
Loans$9,831,384$9,982,686$9,247,971
Allowance for loan losses(172,532)(168,032) Read Full Story

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