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, Inc. Announces Second Quarter Earnings Per Share Of $.72

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 at www.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 Ended For 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 income 156,708 165,942 171,186 322,650 336,852
Non-interest income 99,877 102,676 100,816 202,553 195,399
Investment securities gains (losses), net (2,165 ) (1,568 ) 1,336 (3,733 ) 5,376
Provision for loan losses 3,285 7,379 5,215 10,664 13,380
Non-interest expense 155,037 156,966 156,340 312,003 306,801

Net income attributable to Commerce Bancshares, Inc.

61,017 65,805 70,733 126,822 136,532
Cash dividends 20,435 20,431 20,216 40,866 40,654
Net total loan charge-offs (recoveries) 7,785 9,379 8,214 17,164 19,379
Business (50 ) (87 ) (3,600 ) (137 ) (3,490 )
Real estate — construction and land (532 ) (744 ) 116 (1,276 ) 336
Real estate — business (104 ) 1,253 1,839 1,149 3,334
Consumer credit card 6,048 6,935 5,930 12,983 12,103
Consumer 1,709 1,452 1,974 3,161 4,605
Revolving home equity 139 156 943 295 1,303
Real estate — personal 373 172 679 545 748
Overdraft 202 242 333 444 440
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 assets 1.13 % 1.20 % 1.38 % 1.17 % 1.34 %
Return on total average equity 11.38 % 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 ratio 8.92 % 9.08 % 9.73 %
Tangible common equity to assets ratio (4) 9.26 % 9.06 % 10.16 %
Common shares outstanding 90,739,038 90,673,953 91,967,960
Shareholders of record 4,127 4,107 4,184
Number of bank/ATM locations 359 356 361
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 expense 8,402   7,797   9,519   16,199   19,748  
Net interest income 150,343 159,458 165,105 309,801 324,842
Provision for loan losses 3,285   7,379   5,215   10,664   13,380  
Net interest income after provision for loan losses 147,058   152,079   159,890   299,137   311,462  
NON-INTEREST INCOME
Bank card transaction fees 38,550 40,700 38,434 79,250 73,167
Trust fees 25,169 25,734 23,833 50,903 46,647
Deposit account charges and other fees 18,712 19,602 19,975 38,314 39,311
Capital market fees 4,391 3,305 5,010 7,696 11,881
Consumer brokerage services 2,686 2,853 2,576 5,539 5,102
Loan fees and sales 1,473 1,314 1,706 2,787 3,267
Other 8,896   9,168   9,282   18,064   16,024  
Total non-interest income 99,877   102,676   100,816   202,553   195,399  
INVESTMENT SECURITIES GAINS (LOSSES), NET
Impairment (losses) reversals on securities 1,389 (293 ) 3 1,096 5,590

Noncredit-related reversals on securities not expected to be sold

(1,831 ) (195 ) (353 ) (2,026 ) (6,260 )
Net impairment losses (442 ) (488 ) (350 ) (930 ) (670 )

Realized gains (losses) on sales and fair value adjustments

(1,723 ) (1,080 ) 1,686   (2,803 ) 6,046  
Investment securities gains (losses), net (2,165 ) (1,568 ) 1,336   (3,733 ) 5,376  
NON-INTEREST EXPENSE
Salaries and employee benefits 90,881 89,569 87,511 180,450 177,054
Net occupancy 11,235 11,234 11,105 22,469 22,365
Equipment 4,683 4,680 4,999 9,363 10,188
Supplies and communication 5,589 5,797 5,667 11,386 11,280
Data processing and software 18,951 19,584 18,282 38,535 35,751
Marketing 3,359 4,048 4,469 7,407 8,291
Deposit insurance 2,767 2,790 2,618 5,557 5,138
Other 17,572   19,264   21,689   36,836   36,734  
Total non-interest expense 155,037   156,966   156,340   312,003   306,801  
Income before income taxes 89,733 96,221 105,702 185,954 205,436
Less income taxes 28,925   30,182   34,466   59,107   67,386  
Net income 60,808 66,039 71,236 126,847 138,050
Less non-controlling interest expense (income) (209 ) 234   503   25   1,518  

Net income attributable to Commerce Bancshares,  Inc.

$61,017   $65,805   $70,733   $126,822   $136,532  
Net income per common share — basic $.67   $.72   $.77   $1.39   $1.47  
Net income per common share — diluted   $.67     $.72     $.76     $1.39     $1.46  
 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

             

  (Unaudited)   (In thousands)

  March 31,2013   June 30, 2013   June 30,2012
ASSETS      
Loans $9,982,686 $10,370,155 $9,376,915
Allowance for loan losses (168,032 ) (166,032 ) (178,533 )
Net loans 9,814,654   10,204,123   9,198,382  
Loans held for sale 9,085 8,941 8,874
Investment securities:
Available for sale 9,572,751 8,927,815 9,206,451
Trading 23,400 14,670 14,313
Non-marketable 118,620   113,470   116,190  
Total investment securities 9,714,771   9,055,955   9,336,954  

Short-term federal funds sold and securities purchased under agreements to resell

7,820 22,990 7,455
Long-term securities purchased under agreements to resell 1,200,000 1,200,000 850,000
Interest earning deposits with banks 199,956 6,816 92,544
Cash and due from banks 413,019 399,687 410,666
Land, buildings and equipment — net 355,464 352,462 350,897
Goodwill 125,585 125,585 125,585
Other intangible assets — net 4,870 4,517 6,381
Other assets 381,984   529,275   355,253  
Total assets $ 22,227,208   $ 21,910,351   $ 20,742,991  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing $6,170,274 $5,811,473 $5,637,373
Savings, interest checking and money market 9,802,838 9,573,390 8,983,090
Time open and C.D.’s of less than $100,000 1,061,350 1,039,131 1,113,824
Time open and C.D.’s of $100,000 and over 1,480,405   1,472,944   1,097,346  
Total deposits 18,514,867 17,896,938 16,831,633
Federal funds purchased and securities sold under agreements to repurchase 1,126,858 1,620,694 1,305,745
Other borrowings 102,783 102,766 111,292
Other liabilities 303,509   183,166   263,552  
Total liabilities 20,048,017   19,803,564   18,512,222  
Stockholders’ equity:
Preferred stock
Common stock 458,646 458,646 446,387
Capital surplus 1,101,445 1,094,922 1,033,523
Retained earnings 517,792 563,166 671,297
Treasury stock (32,501 ) (35,771 ) (61,388 )
Accumulated other comprehensive income 129,763   21,864   136,732  
Total stockholders’ equity 2,175,145 2,102,827 2,226,551
Non-controlling interest 4,046   3,960   4,218  
Total equity 2,179,191   2,106,787   2,230,769  
Total liabilities and equity   $ 22,227,208     $ 21,910,351     $ 20,742,991  
 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS

     
(Unaudited)

(Dollars in thousands)

  For the Three Months Ended
March 31, 2013 June 30, 2013   June 30, 2012

AverageBalance

 

Avg. RatesEarned/Paid

Average Balance

 

Avg. Rates Earned/Paid

AverageBalance

 

Avg. RatesEarned/Paid

ASSETS:      
Loans:
Business (A) $ 3,156,594 3.17 % $ 3,253,577 3.07 % $ 2,895,167 3.58 %
Real estate — construction and land 351,573 3.87 373,359 3.94 360,000 4.24
Real estate — business 2,230,453 4.17 2,216,876 4.14 2,205,561 4.71
Real estate — personal 1,600,138 4.08 1,664,988 3.97 1,475,930 4.46
Consumer 1,343,210 5.03 1,430,832 4.69 1,134,838 5.73
Revolving home equity 428,696 4.08 425,762 3.96 449,416 4.17
Consumer credit card 755,167 11.38 741,793 11.20 712,708 11.87
Overdrafts 5,406       6,369       5,663      
Total loans (B) 9,871,237     4.49   10,113,556     4.34   9,239,283     4.95  
Loans held for sale 9,096 3.79 9,003 4.05 9,053 3.91
Investment securities:
 
U.S. government and federal agency obligations 398,215 (.59 ) (C) 400,027 5.15 330,648 7.58
 
Government-sponsored enterprise obligations 468,608 1.86 439,075 1.74 265,620 2.06
State and municipal obligations (A) 1,603,064 3.79 1,634,196 3.61 1,322,987 4.03
Mortgage-backed securities 3,514,370 2.59 3,272,580 2.77 4,010,276 2.89
Asset-backed securities 3,206,907 .93 3,199,393 .91 2,900,122 1.13
Other marketable securities (A) 193,413     3.21   188,267     2.97   135,930     4.92  
Total available for sale securities (B) 9,384,577 2.07 9,133,538 2.33 8,965,583 2.67
Trading securities (A) 27,729 1.90 22,355 2.40 22,748 2.65
Non-marketable securities (A) 119,407     6.20   118,888     16.92   122,651     8.60  
Total investment securities 9,531,713     2.12   9,274,781     2.52   9,110,982     2.75  

Short-term federal funds sold and securities purchased under agreements to resell

8,680 .42 23,429 .48 22,139 .53

Long-term securities purchased under agreements to resell

1,178,333 2.01 1,200,000 1.94 850,000 2.17
Interest earning deposits with banks 130,357   .24   116,510   .26   163,075     .28  
Total interest earning assets 20,729,416   3.23   20,737,279   3.36   19,394,532   3.75  
Non-interest earning assets (B) 1,196,078   1,184,066   1,154,720  
Total assets $ 21,925,494   $ 21,921,345   $ 20,549,252  
LIABILITIES AND EQUITY:
Interest bearing deposits:
Savings $ 603,644 .12 $ 639,747 .11 $ 584,196 .12
Interest checking and money market 9,142,100 .17 8,932,987 .14 8,369,306 .21
Time open & C.D.’s of less than $100,000 1,068,695 .66 1,052,574 .63 1,128,716 .71
Time open & C.D.’s of $100,000 and over 1,336,952     .52   1,464,384     .46   1,250,164     .59  
Total interest bearing deposits 12,151,391     .25   12,089,692     .22   11,332,382     .30  
Borrowings:

Federal funds purchased and securities sold under agreements to repurchase

1,200,818 .07 1,544,623 .07 1,109,693 .06
Other borrowings 103,329     3.19   103,019     3.23   111,336     3.16  
Total borrowings 1,304,147     .32   1,647,642     .27   1,221,029     .35  
Total interest bearing liabilities 13,455,538   .25 % 13,737,334   .23 % 12,553,411   .30 %
Non-interest bearing deposits 5,929,229 5,768,455 5,404,687
Other liabilities 366,562 228,966 367,763
Equity 2,174,165   2,186,590   2,223,391  
Total liabilities and equity $ 21,925,494   $ 21,921,345   $ 20,549,252  
Net interest income (T/E) $ 156,708   $ 165,942   $ 171,186  
Net yield on interest earning assets       3.07 %       3.21 %       3.55 %

(A)

 

Stated on a tax equivalent basis using a federal income tax rate of 35%.

(B)

The allowance for loan losses and unrealized gains/(losses) on available for sale securities are included in non-interest earning assets.

(C)

Includes ($1.7 million) in inflation income on U.S. Treasury inflation-protected securities in the first quarter of 2013.

 

COMMERCE BANCSHARES, INC. Management Discussion of Second Quarter Results June 30, 2013

For the quarter ended June 30, 2013, net income attributable to Commerce Bancshares, Inc. (net income) amounted to $65.8 million, an increase of $4.8 million over the previous quarter and a decrease of $4.9 million compared to the same quarter last year. The increase in net income over the previous quarter resulted mainly from higher net interest income of $9.1 million coupled with an increase in fee income of $2.8 million, but offset by a higher provision for loan losses of $4.1 million and growth in non-interest expense of $1.9 million. The increase in net interest income this quarter resulted from an increase in inflation related interest of $5.4 million on the Company's inflation-protected government securities, coupled with the reclassification of $2.6 million in interest received on the sale of a private equity investment which had been previously recorded as securities gains. For the current quarter, the return on average assets was 1.20%, the return on average equity was 12.07%, and the efficiency ratio was 59.73%.

1 of 5

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!
DOW 16,963.28 -19.31 -0.11%
S&P 500 1,975.26 -3.65 -0.18%
NASDAQ 4,452.4610 +7.5520 0.17%

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