Commerce Bancshares, Inc. Announces First Quarter Earnings Per Share of $.67
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 | |||||||||
For the Three Months Ended | |||||||||
(Unaudited) | December 31, | March 31, | March 31, | ||||||
FINANCIAL SUMMARY(In thousands, except per share data) | |||||||||
Net interest income | $161,253 | $150,343 | $159,737 | ||||||
Taxable equivalent net interest income | 168,428 | 156,708 | 165,666 | ||||||
Non-interest income | 103,309 | 99,877 | 94,583 | ||||||
Investment securities gains (losses), net | (3,728 | ) | (2,165 | ) | 4,040 | ||||
Provision for loan losses | 8,326 | 3,285 | 8,165 | ||||||
Non-interest expense | 158,277 | 155,037 | 150,461 | ||||||
Net income attributable to Commerce Bancshares, Inc. | 66,791 | 61,017 | 65,799 | ||||||
Cash dividends | 150,789 | 20,435 | 20,438 | ||||||
Net total loan charge-offs (recoveries) | 10,826 | 7,785 | 11,165 | ||||||
Business | 791 | (50 | ) | 110 | |||||
Real estate — construction and land | (517 | ) | (532 | ) | 220 | ||||
Real estate — business | 1,799 | (104 | ) | 1,495 | |||||
Consumer credit card | 6,095 | 6,048 | 6,173 | ||||||
Consumer | 1,731 | 1,709 | 2,631 | ||||||
Revolving home equity | 187 | 139 | 360 | ||||||
Real estate — personal | 411 | 373 | 69 | ||||||
Overdraft | 329 | 202 | 107 | ||||||
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 assets | 1.25 | % | 1.13 | % | 1.29 | % | |||
Return on total average equity | 11.62 | % | 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 loans | 1.75 | % | 1.68 | % | 1.96 | % | |||
Tier I leverage ratio | 9.14 | % | 8.92 | % | 9.70 | % | |||
Tangible common equity to assets ratio (4) | 9.25 | % | 9.26 | % | 10.12 | % | |||
Common shares outstanding | 91,414,306 | 90,739,038 | 93,012,999 | ||||||
Shareholders of record | 4,135 | 4,127 | 4,213 | ||||||
Number of bank/ATM locations | 362 | 359 | 360 | ||||||
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 | |||||||||
For the Three Months Ended | |||||||||
(Unaudited) (In thousands, except per share data) | December 31, | March 31, | March 31, | ||||||
Interest income | $170,185 | $158,745 | $169,966 | ||||||
Interest expense | 8,932 | 8,402 | 10,229 | ||||||
Net interest income | 161,253 | 150,343 | 159,737 | ||||||
Provision for loan losses | 8,326 | 3,285 | 8,165 | ||||||
Net interest income after provision for loan losses | 152,927 | 147,058 | 151,572 | ||||||
NON-INTEREST INCOME | |||||||||
Bank card transaction fees | 41,542 | 38,550 | 34,733 | ||||||
Trust fees | 24,351 | 25,169 | 22,814 | ||||||
Deposit account charges and other fees | 20,301 | 18,712 | 19,336 | ||||||
Capital market fees | 4,075 | 4,391 | 6,871 | ||||||
Consumer brokerage services | 2,619 | 2,686 | 2,526 | ||||||
Loan fees and sales | 1,412 | 1,473 | 1,561 | ||||||
Other | 9,009 | 8,896 | 6,742 | ||||||
Total non-interest income | 103,309 | 99,877 | 94,583 | ||||||
INVESTMENT SECURITIES GAINS (LOSSES), NET | |||||||||
Impairment (losses) reversals on securities | (356 | ) | 1,389 | 5,587 | |||||
Noncredit-related losses (reversals) on securities not expected to be sold | 93 | (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 benefits | 94,553 | 90,881 | 89,543 | ||||||
Net occupancy | 11,581 | 11,235 | 11,260 | ||||||
Equipment | 4,983 | 4,683 | 5,189 | ||||||
Supplies and communication | 5,641 | 5,589 | 5,613 | ||||||
Data processing and software | 18,768 | 18,951 | 17,469 | ||||||
Marketing | 2,715 | 3,359 | 3,822 | ||||||
Deposit insurance | 2,692 | 2,767 | 2,520 | ||||||
Other | 17,344 | 17,572 | 15,045 | ||||||
Total non-interest expense | 158,277 | 155,037 | 150,461 | ||||||
Income before income taxes | 94,231 | 89,733 | 99,734 | ||||||
Less income taxes | 27,628 | 28,925 | 32,920 | ||||||
Net income | 66,603 | 60,808 | 66,814 | ||||||
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 | |||||||||
(Unaudited) (In thousands) | December 31, | March 31, | March 31, | ||||||
ASSETS | |||||||||
Loans | $9,831,384 | $9,982,686 | $9,247,971 | ||||||
Allowance for loan losses | (172,532 | ) | (168,032 | ) | |||||
