Commerce Bancshares, Inc. Announces Third Quarter Earnings Per Share of $.75
Commerce Bancshares, Inc. Announces Third Quarter Earnings Per Share of $.75
KANSAS CITY, Mo.--(BUSINESS WIRE)-- Commerce Bancshares, Inc. (NAS: CBSH) announced earnings of $.75 per share for the three months ended September 30, 2012 compared to $.72 per share in the third quarter of 2011, or an increase of 4.2%. Net income for the third quarter amounted to $66.0 million compared to $65.4 million in the same quarter last year and $70.7 million in the prior quarter. For the quarter, the return on average assets totaled 1.28%, the return on average equity was 11.6% and the efficiency ratio was 60.0%.
For the nine months ended September 30, 2012, earnings per share totaled $2.29 compared to $2.13 in the first nine months of 2011, an increase of 7.5%. Net income amounted to $202.5 million for the first nine months of 2012 compared with $194.8 million for the same period last year, or an increase of $7.7 million. The return on average assets for the first nine months of 2012 was 1.32%, the return on average equity was 12.1% and the efficiency ratio was 59.1%.
In announcing these results, David W. Kemper, Chairman and CEO, said, "Although record low interest rates continued to pressure our net interest income, we were pleased to report solid quarterly earnings which benefited from loan growth, low credit losses and good expense management. Compared to the previous quarter, the decline in net interest income was partly due to non-recurring interest received last quarter and a reduction of $6.2 million in interest on our inflation-protected government securities. Also, while non-interest income continued to be affected by recent debit card interchange regulations, commercial card fees grew 21.8% compared to last year and remained strong, while trust fees also increased 7.1%. Non-interest expense was flat compared to the same quarter of last year. Average loans for the quarter grew $209.4 million, or 2.3%, this quarter compared to the previous quarter and resulted from growth in business, personal real estate loans and consumer loans. Average deposits declined by $111.7 million this quarter, or .7%."
Mr. Kemper continued, "Net loan charge-offs for the current quarter totaled $9.1 million, compared to $8.2 million in the previous quarter and $14.9 million in the third quarter of 2011. The increase in net loan charge-offs this quarter resulted from several large commercial loan recoveries totaling $3.6 million which were recorded during the second quarter. Overall commercial and consumer loan charge-offs remained low this quarter. During the current quarter, the provision for loan losses totaled $5.6 million, or $3.5 million less than net loan charge-offs, reflecting improved credit trends in our loan portfolio. Our allowance for loan losses amounted to $175.0 million this quarter, representing 3.2 times our non-performing loans. Total non-performing assets also decreased $8.8 million from the previous quarter to $73.4 million this quarter."
Total assets at September 30, 2012 were $20.9 billion, total loans were $9.6 billion, and total deposits were $16.8 billion. During the quarter the Company repurchased approximately 98,000 shares of Company stock at an average price per share of $39.66.
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) | 6/30/2012 | 9/30/2012 | 9/30/2011 | |||||||||
Non-Accrual Loans | $ | 62,177 | $ | 55,201 | $ | 75,912 | ||||||
Foreclosed Real Estate | $ | 20,095 | $ | 18,234 | $ | 23,813 | ||||||
Total Non-Performing Assets | $ | 82,272 | $ | 73,435 | $ | 99,725 | ||||||
Non-Performing Assets to Loans | .88 | % | .76 | % | 1.10 | % | ||||||
Non-Performing Assets to Total Assets | .40 | % | .35 | % | .48 | % | ||||||
Loans 90 Days & Over Past Due — Still Accruing | $ | 11,297 | $ | 12,232 | $ | 20,104 | ||||||
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 | ||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
(Unaudited) | June 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||
FINANCIAL SUMMARY(In thousands, except per share data) | ||||||||||||||||||||
Net interest income | $ | 165,105 | $ | 153,811 | $ | 158,630 | $ | 478,653 | $ | 484,313 | ||||||||||
Taxable equivalent net interest income | 171,186 | 159,934 | 164,317 | 496,786 | 501,575 | |||||||||||||||
Non-interest income | 100,816 | 100,922 | 101,632 | 296,321 | 298,882 | |||||||||||||||
Investment securities gains, net | 1,336 | 3,180 | 2,587 | 8,556 | 5,870 | |||||||||||||||
Provision for loan losses | 5,215 | 5,581 | 11,395 | 18,961 | 39,372 | |||||||||||||||
Non-interest expense | 156,340 | 153,391 | 153,746 | 460,192 | 461,219 | |||||||||||||||
Net income attributable to Commerce Bancshares, Inc. | 70,733 | 66,006 | 65,352 | 202,538 | 194,839 | |||||||||||||||
Cash dividends | 20,216 | 20,165 | 19,526 | 60,819 | 59,636 | |||||||||||||||
Net total loan charge-offs (recoveries) | 8,214 | 9,082 | 14,895 | 28,461 | 48,872 | |||||||||||||||
Business | (3,600 | ) | 202 | 889 | (3,288 | ) | 4,338 | |||||||||||||
Real estate — construction and land | 116 | (102 | ) | 1,215 | 234 | 4,326 | ||||||||||||||
Real estate — business | 1,839 | (25 | ) | 1,429 | 3,309 | 2,832 | ||||||||||||||
Consumer credit card | 5,930 | 6,277 | 7,103 | 18,380 | 24,631 | |||||||||||||||
Consumer | 1,974 | 1,791 | 3,232 | 6,396 | 9,474 | |||||||||||||||
Revolving home equity | 943 | 314 | 72 | 1,617 | 783 | |||||||||||||||
Real estate — personal | 679 | 267 | 673 | 1,015 | 1,974 | |||||||||||||||
Overdraft | 333 | 358 | 282 | 798 | 514 | |||||||||||||||
Per common share: | ||||||||||||||||||||
Net income — basic | $ | .80 | $ | .75 | $ | .72 | $ | 2.29 | $ | 2.14 | ||||||||||
Net income — diluted | $ | .80 | $ | .75 | $ | .72 | $ | 2.29 | $ | 2.13 | ||||||||||
Cash dividends | $ | .230 | $ | .230 | $ | .219 | $ | .690 | $ | .657 | ||||||||||
Diluted wtd. average shares o/s | 87,672 | 87,192 | 89,737 | 87,804 | 90,724 | |||||||||||||||
RATIOS | ||||||||||||||||||||
Average loans to deposits (1) | 55.26 | % | 56.89 | % | 58.29 | % | 55.89 | % | 60.27 | % | ||||||||||
Return on total average assets | 1.38 | % | 1.28 | % | 1.32 | % | 1.32 | % | 1.37 | % | ||||||||||
Return on total average equity | 12.80 | % | 11.57 | % | 12.15 | % | 12.13 | % | 12.41 | % | ||||||||||
Non-interest income to revenue (2) | 37.91 | % | 39.62 | % | 39.05 | % | 38.24 | % | 38.16 | % | ||||||||||
Efficiency ratio (3) | 58.53 | % | 59.99 | % | 58.71 | % | 59.14 | % | 58.57 | % | ||||||||||
AT PERIOD END | ||||||||||||||||||||
Book value per share based on total equity | $ | 25.47 | $ | 26.33 | $ | 23.95 | ||||||||||||||
Market value per share | $ | 37.90 | $ | 40.33 | $ | 33.10 | ||||||||||||||
Allowance for loan losses as a percentage of loans | 1.90 | % | 1.82 | % | 2.07 | % | ||||||||||||||
Tier I leverage ratio | 9.73 | % | 10.00 | % | 9.74 | % | ||||||||||||||
Tangible common equity to assets ratio (4) | 10.16 | % | 10.47 | % | 9.72 | % | ||||||||||||||
Common shares outstanding | 87,588,533 | 87,608,391 | 88,924,563 | |||||||||||||||||
Shareholders of record | 4,184 | 4,146 | 4,224 | |||||||||||||||||
Number of bank/ATM locations | 361 | 362 | 363 | |||||||||||||||||
Full-time equivalent employees | 4,702 | 4,707 | 4,762 | |||||||||||||||||
OTHER QTD INFORMATION | ||||||||||||||||||||
High market value per share | $ | 41.00 | $ | 42.74 | $ | 41.90 | ||||||||||||||
Low market value per share | $ | 36.17 | $ | 37.71 | $ | 31.65 | ||||||||||||||
(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 | For the Nine Months Ended | |||||||||||||||||||
(Unaudited) | June 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||
Interest income | $ | 174,624 | $ | 163,194 | $ | 170,835 | $ | 507,784 | $ | 524,748 | ||||||||||
Interest expense | 9,519 | 9,383 | 12,205 | 29,131 | 40,435 | |||||||||||||||
Net interest income | 165,105 | 153,811 | 158,630 | 478,653 | 484,313 | |||||||||||||||
Provision for loan losses | 5,215 | 5,581 | 11,395 | 18,961 | 39,372 | |||||||||||||||
Net interest income after provision for loan losses | 159,890 | 148,230 | ||||||||||||||||||
