Commerce Bancshares, Inc. Announces Second Quarter Earnings Per Share of $.72

Commerce Bancshares, Inc. Announces Second Quarter Earnings Per Share of $.72

KANSAS CITY, Mo.--(BUSINESS WIRE)-- Commerce Bancshares, Inc. (NASDAQ:CBSH) announced earnings of $.72 per share for the three months ended June 30, 2013 compared to $.76 per share in the second quarter of 2012 and $.67 per share in the previous quarter.Net income for the second quarter amounted to $65.8 million, compared to $70.7 million in the same quarter last year and $61.0 million last quarter.For the quarter, the return on average assets totaled 1.20%, the return on average equity was 12.1% and the efficiency ratio was 59.7%.

For the six months ended June 30, 2013, earnings per share totaled $1.39 compared to $1.46 in the first six months of 2012.Net income amounted to $126.8 million for the first six months of 2013 compared with $136.5 million for the same period last year.The return on average assets for the first six months was 1.17% and the return on average equity was 11.7%.


In making this announcement, David W. Kemper, Chairman and CEO, said, "Our second quarter was highlighted by continued strong growth in loans, improved net interest income and continued fee income growth.Compared to the previous quarter, average loans increased $242 million, or 10.0% annualized, with growth coming from both commercial and consumer lending activities.Over the past two quarters, we have had strong loan demand with an improving economy and average loans have grown $490 million, or over 10% annualized.We continue to see growth in revenues from our trust and corporate card businesses which grew by 8.0% and 8.6%, respectively, compared to the second quarter of last year, while non-interest expense remained flat with the same quarter last year."

Mr. Kemper continued, "Net loan charge-offs for the current quarter totaled $9.4 million, compared to $8.2 million in the second quarter of 2012 and $7.8 million in the previous quarter.Consumer net loan charge-offs increased by $486 thousand this quarter on higher credit card loan losses but lower losses on consumer and personal real estate loans.Commercial loan losses increased $1.1 million due to higher business real estate loan losses.During the current quarter, the provision for loan losses totaled $7.4 million, or $2.0 million less than net loan charge-offs.Our allowance for loan losses amounted to $166.0 million this quarter, representing 3.2 times our non-performing assets.Total non-performing assets decreased $6.4 million from the previous quarter to $52.5 million this quarter."

Total assets at June 30, 2013 were $21.9 billion, total loans were $10.4 billion, and total deposits were $17.9 billion.During the quarter, the Company repurchased approximately 383,000 shares of its common stock at an average price per share of $39.90. Also on May 15, 2013, the Company announced plans to acquire Summit Bancshares, Inc., Tulsa, Oklahoma with loans of $213 million and deposits of $231 million.It is expected that this transaction will be completed in the third quarter of 2013.

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) 3/31/2013 6/30/2013 6/30/2012
Non-Accrual Loans $44,739 $39,092 $62,177
Foreclosed Real Estate $14,191  $13,434  $20,095 
Total Non-Performing Assets $58,930  $52,526  $82,272 
Non-Performing Assets to Loans .59% .51% .88%
Non-Performing Assets to Total Assets .27% .24% .40%
Loans 90 Days & Over Past Due — Still Accruing $15,015  $12,509  $11,297 
 

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

For additional information, contact
Jeffery Aberdeen, Controller
at 1000 Walnut Street, Suite 700
Kansas City, MO 64106
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 EndedFor the Six Months Ended
(Unaudited) March 31,
2013
 June 30,
2013
 June 30,
2012
 June 30,
2013
 June 30,
2012
FINANCIAL SUMMARY(In thousands, except per share data) 
Net interest income$150,343 $159,458 $165,105$309,801$324,842
Taxable equivalent net interest income156,708165,942171,186322,650336,852
Non-interest income99,877102,676100,816202,553195,399
Investment securities gains (losses), net(2,165)(1,568)1,336(3,733)5,376
Provision for loan losses3,2857,3795,21510,66413,380
Non-interest expense155,037156,966156,340312,003306,801

Net income attributable to Commerce Bancshares,
 Inc.

61,01765,80570,733126,822136,532
Cash dividends20,43520,43120,21640,86640,654
Net total loan charge-offs (recoveries)7,7859,3798,21417,16419,379
Business(50)(87)(3,600)(137)(3,490)
Real estate — construction and land(532)(744)116(1,276)336
Real estate — business(104)1,2531,8391,1493,334
Consumer credit card6,0486,9355,93012,98312,103
Consumer1,7091,4521,9743,1614,605
Revolving home equity1391569432951,303
Real estate — personal373172679545748
Overdraft202242333444440
Per common share:
Net income — basic$.67$.72$.77$1.39$1.47
Net income — diluted$.67$.72$.76$1.39$1.46
Cash dividends$.225$.225$.219$.450$.438
Diluted wtd. average shares o/s 90,444  90,159  92,056  90,301  92,520 
RATIOS
Average loans to deposits (1)54.65%56.68%55.26%55.66%55.39%
Return on total average assets1.13%1.20%1.38%1.17%1.34%
Return on total average equity11.38%12.07%12.80%11.73%12.42%
Non-interest income to revenue (2)39.92%39.17%37.91%39.53%37.56%
Efficiency ratio (3) 61.76% 59.73% 58.53% 60.72% 58.72%
AT PERIOD END
Book value per share based on total equity$24.02$23.23$24.26
Market value per share$40.83$43.55$36.10

Allowance for loan losses
 as a percentage of loans

1.68%1.60%1.90%
Tier I leverage ratio8.92%9.08%9.73%
Tangible common equity to assets ratio (4)9.26%9.06%10.16%
Common shares outstanding90,739,03890,673,95391,967,960
Shareholders of record4,1274,1074,184
Number of bank/ATM locations359356361
Full-time equivalent employees 4,725  4,720  4,702 
OTHER QTD INFORMATION
High market value per share$40.89$44.62$39.05
Low market value per share $35.40  $38.46  $34.45 

(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 Six Months Ended
(Unaudited)

(In thousands, except per share data)

 March 31,
2013
 June 30,
2013
 June 30,
2012
 June 30,
2013
 June 30,
2012
Interest income$158,745 $167,255 $174,624$326,000 $344,590
Interest expense8,402 7,797 9,519 16,199 19,748 
Net interest income150,343159,458165,105309,801324,842
Provision for loan losses3,285 7,379 5,215 10,664 13,380 
Net interest income after provision for loan losses147,058 152,079 159,890 299,137 311,462 
NON-INTEREST INCOME
Bank card transaction fees38,55040,70038,43479,25073,167
Trust fees25,16925,73423,83350,90346,647
Deposit account charges and other fees18,71219,60219,97538,31439,311
Capital market fees4,3913,3055,0107,69611,881
Consumer brokerage services2,6862,8532,5765,5395,102
Loan fees and sales1,4731,3141,7062,7873,267
Other8,896 9,168 9,282 18,064 16,024 
Total non-interest income99,877 
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