This Day On The Street
Continue to site
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

Commerce Bancshares, Inc. Announces Record Second Quarter Earnings Per Share Of $.84

Non-Interest Expense

Non-interest expense for the current quarter amounted to $150.7 million, a decrease of $2.9 million, or 1.9%, from the same quarter last year and a slight increase compared to the previous quarter. Compared to the 2 nd quarter of last year, salaries and benefits expense increased $3.3 million, or 3.9%, mainly due to an increase in salary costs of $2.0 million, or 2.7%, coupled with increases in medical and pension-related costs which grew by $1.0 million. Full-time equivalent employees totaled 4,702 and 4,786 at June 30, 2012 and 2011, respectively.

Compared to the 2 nd quarter of last year, occupancy and equipment expense declined $811 thousand on a combined basis mainly due to lower depreciation costs. Data processing and software costs grew by 4.3% mainly due to higher bank card-related costs (related to higher revenues) coupled with higher software costs. Other expense in the 2 nd quarter of 2011 included an expense accrual of $5.0 million related a loss contingency for litigation that was ultimately resolved later in 2011.

Income Taxes

The effective tax rate for the Company was 33.0% in the current quarter, compared with 33.3% in the previous quarter and 32.1% in the 2 nd quarter of 2011.

Credit Quality

Net loan charge-offs in the 2 nd quarter of 2012 amounted to $8.2 million, compared with $11.2 million in the prior quarter and $15.2 million in the 2 nd quarter of last year. The $3.0 million decline in net loan charge-offs in the 2 nd quarter of 2012 compared to the previous quarter was mainly the result of recoveries of $3.6 million received during the quarter on two non-performing commercial loans, coupled with lower net loan charge-offs on consumer and consumer credit card loans. The ratio of annualized net loan charge-offs to total average loans was .36% in the current quarter compared to .49% in the previous quarter.

For the 2 nd quarter of 2012, annualized net loan charge-offs on average consumer credit card loans amounted to 3.35%, compared with 3.40% in the previous quarter and 4.58% in the same period last year. Consumer loan net charge-offs for the quarter amounted to .70% of average consumer loans, compared to .96% in the previous quarter and .80% in the same quarter last year. The provision for loan losses for the current quarter totaled $5.2 million, a decrease of $3.0 million from the previous quarter and $7.0 million lower than in the same period last year. The current quarter provision for loan losses was $3.0 million less than net loan charge-offs for the current quarter, thereby reducing the allowance for loan losses to $178.5 million. At June 30, 2012 the allowance was 1.90% of total loans, excluding loans held for sale, and was 287% of total non-accrual loans.

At June 30, 2012, total non-performing assets amounted to $82.3 million, a decrease of $5.2 million from the previous quarter. Non-performing assets are comprised of non-accrual loans ($62.2 million) and foreclosed real estate ($20.1 million). At June 30, 2012, the balance of non-accrual loans, which represented .66% of loans outstanding, included business real estate loans of $21.6 million, construction and land loans of $18.2 million and business loans of $14.1 million. Loans more than 90 days past due and still accruing interest totaled $11.3 million at June 30, 2012.

6 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.79 -0.48%
FB $118.64 0.70%
GOOG $706.14 0.67%
TSLA $212.33 0.38%
YHOO $36.85 -0.24%


Chart of I:DJI
DOW 17,649.96 -10.75 -0.06%
S&P 500 2,042.68 -7.95 -0.39%
NASDAQ 4,692.03 -25.0640 -0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs