This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Commerce Bancshares' Numbers Do the Talking

Stocks in this article: CBSH PBCT CSE NTRS TFSL BOH IBKC

KANSAS CITY, Mo. ( TheStreet) -- Commerce Bancshares (CBSH) sets the standard for tradition among Midwest banks.

The 145-year-old institution has been a steady earnings performer, increasing its net-interest income and fee revenue through the credit crisis without government assistance.

Commerce Bancshares had $18.4 billion in total assets as of June 30. The company operates through over 370 offices in Missouri, Illinois, Kansas, Oklahoma and Colorado.

>>Is Commerce Bancshares a Buy?

The Kansas City lender has been remarkably stable through the credit crisis. According to data provided by SNL Financial, the company's 10.67% return on average equity for the first half of 2010 puts it in eighth place among U.S. bank and thrift holding companies with total assets exceeding $10 billion dollars. Looking back at the top ten earners among this group of holding companies, only Commerce, Northern Trust (NTRS) and Bank of Hawaii (BOH) were among the top ten for return on equity for 2008, 2009 and the first half of 2010.

The family of CEO David Kemper has been involved with Commerce for most of the its history. Although the company is responsive to requests for information from analysts and the media, Commerce doesn't hold quarterly conference calls with analysts, preferring to let the company's steady earnings performance speak for itself.

For the second quarter, Commerce reported net income of $59.7 million, or 71 cents a share, up from $44.2 million, or 53 a share, during the first quarter and $37 million, or 48 cents, a year earlier. Most of the improvement in earnings came from a reduction in the quarterly provision for loan losses as credit quality improved.

The company said that new regulations requiring customers to opt-in for overdraft protection on ATM or debit card overdrafts could reduce second-half 2010 overdraft fees by as much as $13 million. Total deposit account charges and other fees for the first half of 2010 were $49.5 million.

Solid growth in the company's corporate credit card business is expected to partially offset the decline in ATM/Debit card overdraft fees. Commerce has been providing incentives to commercial customers (with a focus on schools and hospitals), to pay suppliers and vendors using their corporate cards, rather than by check. The company's card transaction fee revenue for the second quarter was $37.7 million, which was a 25% increase year-over-year.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs