Commerce Bancshares, Inc. Announces Second Quarter Earnings Per Common Share Of $.70

Commerce Bancshares, Inc. (NASDAQ: CBSH) announced earnings of $.70 per common share for the three months ended June 30, 2016 compared to $.65 per share in the prior quarter and $.72 per share in the second quarter of 2015. Net income attributable to Commerce Bancshares, Inc. for the second quarter amounted to $69.9 million, compared to $65.4 million in the prior quarter and $74.4 million in the same quarter last year. For the quarter, the return on average assets was 1.15%, the return on average common equity was 11.7% and the efficiency ratio was 61.3%.

For the six months ended June 30, 2016, earnings per common share totaled $1.35 compared to $1.30 for the first six months of 2015. Net income attributable to Commerce Bancshares, Inc. amounted to $135.3 million for the six months ended June 30, 2016 compared to $135.4 million last year. For the first six months of 2016, the return on average assets was 1.11% and the return on average common equity was 11.4%.

In making this announcement, David W. Kemper, Chairman and CEO, said, "This quarter we continued to experience strong loan growth, improved net interest income, low credit losses and stable expenses. Average loans have grown over $300 million in each of the last three quarters, and growth in these higher earning assets has helped us manage the effects of continued low interest rates. Average deposits also grew $301.7 million this quarter, or 6% annualized, and funding costs remained low. Net interest income grew $8.1 million this quarter compared to the prior quarter, helped by higher loan interest and an increase in interest on inflation-protected securities. Core fee income continued to show good growth from deposit, trust, and mortgage banking activities. Non-interest expense totaled $177.1 million and reflected a slight decline from the previous quarter."

Mr. Kemper continued, "Net loan charge-offs for the current quarter totaled $7.5 million, compared to $8.8 million in both the previous quarter and the second quarter of 2015. The decrease in net loan charge-offs compared to the previous quarter was largely due to increased commercial loan recoveries, especially in construction and business real estate loans, offset by slightly higher personal banking loan net losses. During the current quarter, the provision for loan losses totaled $9.2 million, or $1.7 million higher than net loan charge-offs, but slightly less than the prior quarter. The allowance for loan losses increased to $153.8 million at June 30, 2016, or 1.18% of period end loans. Total non-performing assets decreased $5.2 million from the previous quarter to $26.1 million this quarter."

Total assets at June 30, 2016 were $24.7 billion, total loans were $13.1 billion, and total deposits were $20.2 billion. During the quarter, the Company paid a common cash dividend of $.225 per share, representing a 5% increase over the rate paid in 2015 and also paid a 6% cash dividend on its preferred stock.

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 350 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in credit related insurance and private equity activities.

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) (Dollars in thousands, except per share data)
  June 30, 2016   March 31,2016   June 30,2015   June 30, 2016   June 30,2015
FINANCIAL SUMMARY  
Net interest income $171,829 $163,775 $163,657 $335,604 $309,795
Non-interest income 116,570     119,024     114,235     235,594     220,809  
Total revenue 288,399 282,799 277,892 571,198 530,604
Investment securities gains (losses), net

(744
) (995 ) 2,143 (1,739 ) 8,178
Provision for loan losses 9,216 9,439 6,757 18,655 11,177
Non-interest expense 177,089     177,473     165,463     354,562     329,308  
Income before taxes 101,350 94,892 107,815 196,242 198,297
Income taxes 31,542 29,370 32,492 60,912 60,960
Non-controlling interest expense (income) (85 )   148     970     63     1,929  
Net income attributable to Commerce Bancshares, Inc. 69,893 65,374 74,353 135,267 135,408
Preferred stock dividends 2,250     2,250     2,250     4,500     4,500  
Net income available to common shareholders $67,643     $63,124     $72,103     $130,767     $130,908  
Earnings per common share:
Net income — basic $.70 $.65 $.72 $1.35 $1.30
Net income — diluted $.70 $.65 $.72 $1.35 $1.30
Effective tax rate 31.10 % 31.00 % 30.41 % 31.05 % 31.04 %
Tax equivalent net interest income $179,592 $171,425 $171,037 $351,017 $324,385
Average total interest earning assets (1) $ 23,252,289 $ 23,332,333 $ 22,586,879 $ 23,292,311 $ 22,549,223
Diluted wtd. average shares outstanding   95,630,629     95,782,109     99,437,469     95,706,370     99,899,840  
RATIOS
Average loans to deposits (2) 63.45 % 62.81 % 60.75 % 63.13 % 60.24 %
Return on total average assets 1.15 1.07 1.26 1.11 1.15
Return on average common equity (3) 11.69 11.20 12.91 11.44 11.81
Non-interest income to total revenue 40.42 42.09 41.11 41.25 41.61
Efficiency ratio (4) 61.27 62.62 59.39 61.93 61.89
Net yield on interest earning assets   3.11     2.95     3.04     3.03     2.90  
EQUITY SUMMARY
Cash dividends per common share $.225 $.225 $.214 $.450 $.429
Cash dividends on common stock $21,762 $21,760 $21,353 $43,522 $43,105
Cash dividends on preferred stock $2,250 $2,250 $2,250 $4,500     $4,500  
Book value per common share (5) $24.67 $23.85 $22.15
Market value per common share (5) $47.90 $44.95 $44.54
High market value per common share $49.41 $45.96 $45.71
Low market value per common share $42.98 $37.44 $39.55
Common shares outstanding (5) 96,560,828 96,537,955 97,999,567
Tangible common equity to tangible assets (6) 9.09 % 8.84 % 8.58 %
Tier I leverage ratio   9.36 %   9.11 %   9.08 %
OTHER QTD INFORMATION
Number of bank/ATM locations 346 346 349
Full-time equivalent employees   4,779     4,765     4,768  

(1)
 

Excludes allowance for loan losses and unrealized gains/(losses) on available for sale securities.

(2)

Includes loans held for sale.

(3)

Annualized net income available to common shareholders divided by average total equity less preferred stock.

(4)

The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.

(5)

As of period end.

(6)

The tangible common equity ratio is calculated as stockholders' equity reduced by preferred stock, 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)
  June 30, 2016   March 31,2016   December 31,2015   September 30,2015   June 30,2015   June 30, 2016   June 30,2015
Interest income $180,065   $172,128   $169,742   $169,115   $170,577 $352,193   $323,559
Interest expense 8,236     8,353     7,255     7,077     6,920     16,589     13,764  
Net interest income 171,829 163,775 162,487 162,038 163,657 335,604 309,795
Provision for loan losses 9,216     9,439     9,186     8,364     6,757     18,655     11,177  
Net interest income after provision for loan losses 162,613     154,336     153,301     153,674     156,900     316,949     298,618  
NON-INTEREST INCOME
Bank card transaction fees 45,065 44,470 46,320 44,635 45,672 89,535 87,971
Trust fees 31,464 30,370 30,054 29,630 30,531 61,834 60,117
Deposit account charges and other fees 21,328 20,691 21,606 20,674 19,637 42,019 38,136
Capital market fees 2,500 2,725 3,116 2,620 2,738 5,225 5,740
Consumer brokerage services 3,491 3,509 3,254 3,687 3,507 7,000 6,843
Loan fees and sales 3,196 2,510 2,101 1,855 2,183 5,706 4,272
Other 9,526     14,749     9,591     8,187     9,967     24,275     17,730  
Total non-interest income 116,570     119,024     116,042     111,288     114,235     235,594     220,809  
INVESTMENT SECURITIES GAINS (LOSSES), NET (744 ) (995 ) (1,480 ) (378 ) 2,143 (1,739 ) 8,178
NON-INTEREST EXPENSE
Salaries and employee benefits 104,808 106,859 102,098 100,874 99,655 211,667 197,729
Net occupancy 11,092 11,303 10,981 11,247 10,999 22,395 22,560
Equipment 4,781 4,634 4,915 4,789 4,679 9,415 9,382
Supplies and communication 5,693 6,829 6,554 5,609 5,226 12,522 10,807
Data processing and software 22,770 22,899 22,274 21,119 21,045 45,669 40,551
Marketing 4,389 3,813 3,539 4,343 4,307 8,202 8,225
Deposit insurance 3,143 3,165 3,145 2,981 3,019 6,308 6,020
Other 20,413     17,971     22,271     20,440     16,533     38,384     34,034  
Total non-interest expense 177,089     177,473     175,777     171,402     165,463     354,562     329,308  
Income before income taxes 101,350 94,892 92,086 93,182 107,815 196,242 198,297
Less income taxes 31,542     29,370     27,661     27,969     32,492     60,912     60,960  
Net income 69,808 65,522 64,425 65,213 75,323 135,330 137,337
Less non-controlling interest expense (income) (85 )   148     715     601     970     63     1,929  
Net income attributable to Commerce Bancshares, Inc. 69,893 65,374 63,710 64,612 74,353 135,267 135,408
Less preferred stock dividends 2,250     2,250     2,250     2,250     2,250     4,500     4,500  
Net income available to common shareholders $67,643     $63,124     $61,460     $62,362     $72,103     $130,767     $130,908  
Net income per common share — basic $.70     $.65     $.63     $.63     $.72     $1.35     $1.30  
Net income per common share — diluted   $.70     $.65     $.63     $.63     $.72     $1.35     $1.30  
OTHER INFORMATION
Return on total average assets 1.15 % 1.07 % 1.05 % 1.09 % 1.26 % 1.11 % 1.15 %
Return on average common equity (1) 11.69 11.20 10.88 11.25 12.91 11.44 11.81
Efficiency ratio (2) 61.27 62.62 62.97 62.55 59.39 61.93 61.89
Effective tax rate 31.10 31.00 30.27 30.21 30.41 31.05 31.04
Net yield on interest earning assets 3.11 2.95 2.94 3.00 3.04 3.03 2.90
Tax equivalent net interest income   $179,592     $171,425     $170,141     $169,512     $171,037     $351,017     $324,385  

(1)
 

Annualized net income available to common shareholders divided by average total equity less preferred stock.

(2)

The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.
 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - PERIOD END
             

(Unaudited) (In thousands)
  June 30, 2016   March 31,2016   June 30,2015
ASSETS      
Loans
Business $ 4,840,248 $ 4,575,081 $ 4,267,997
Real estate — construction and land 819,896 745,369 448,887
Real estate — business 2,399,271 2,395,933 2,276,231
Real estate — personal 1,927,340 1,903,969 1,901,671
Consumer 1,939,486 1,904,320 1,848,457
Revolving home equity 408,301 423,005 430,880
Consumer credit card 753,166 744,364 750,731
Overdrafts 4,180     5,829     3,627  
Total loans 13,091,888     12,697,870     11,928,481  
Allowance for loan losses (153,832 )   (152,132 )   (151,532 )
Net loans 12,938,056     12,545,738     11,776,949  
Loans held for sale 33,254 60,078 7,852
Investment securities:
Available for sale 9,221,346 9,552,179 9,221,821
Trading 30,512 23,130 18,971
Non-marketable 111,931     117,259     108,346  
Total investment securities 9,363,789     9,692,568     9,349,138  
Federal funds sold and short-term securities purchased under agreements to resell 13,725 9,075 26,875
Long-term securities purchased under agreements to resell 825,000 825,000 1,050,000
Interest earning deposits with banks 183,223 171,651 264,683
Cash and due from banks 428,300 375,481 409,791
Land, buildings and equipment — net 342,237 350,423 353,366
Goodwill 138,921 138,921 138,921
Other intangible assets — net 6,561 6,539 6,978
Other assets 436,627     331,478     321,382  

Total assets
$ 24,709,693     $ 24,506,952     $ 23,705,935  
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 6,906,265 $ 7,065,066 $ 6,886,509
Savings, interest checking and money market 10,978,734 11,205,357 10,369,031
Time open and C.D.'s of less than $100,000 749,160 766,810 833,161
Time open and C.D.'s of $100,000 and over 1,515,888     1,649,076     1,200,008  
Total deposits 20,150,047     20,686,309     19,288,709  
Federal funds purchased and securities sold under agreements to repurchase 1,632,272 957,388 1,666,043
Other borrowings 103,878 103,806 103,843
Other liabilities 296,675     312,167     331,980  
Total liabilities 22,182,872     22,059,670     21,390,575  
Stockholders' equity:
Preferred stock 144,784 144,784 144,784
Common stock 489,862 489,862 484,155
Capital surplus 1,333,995 1,332,429 1,261,307
Retained earnings 470,558 424,677 514,451
Treasury stock (51,707 ) (52,653 ) (143,565 )
Accumulated other comprehensive income 134,424     102,929     48,789  
Total stockholders' equity 2,521,916 2,442,028 2,309,921
Non-controlling interest 4,905     5,254     5,439  
Total equity 2,526,821     2,447,282     2,315,360  
Total liabilities and equity   $ 24,709,693     $ 24,506,952     $ 23,705,935  
 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS
     

(Unaudited) (Dollars in thousands)
  For the Three Months Ended
 

June 30, 2016
 

March 31,2016
 

December 31,2015
 

September 30,2015
 

June 30,2015
ASSETS:        
Loans:
Business $ 4,691,476 $ 4,491,556 $ 4,351,756 $ 4,221,478 $ 4,135,362
Real estate — construction and land 789,329 682,557 584,185 476,331 432,008
Real estate — business 2,389,170 2,382,094 2,320,439 2,284,928 2,287,885
Real estate — personal 1,905,968 1,909,532 1,916,219 1,911,469 1,891,109
Consumer 1,927,925 1,934,577 1,908,540 1,861,636 1,815,699
Revolving home equity 413,198 429,682 429,582 434,355 429,644
Consumer credit card 738,130 752,098 756,743 746,066 734,289
Overdrafts 3,916     4,772     6,303     5,233     4,510  
Total loans 12,859,112     12,586,868     12,273,767     11,941,496     11,730,506  
Allowance for loan losses (151,622 )   (151,308 )   (150,856 )   (150,890 )   (152,994 )
Net loans 12,707,490     12,435,560     12,122,911     11,790,606     11,577,512  
Loans held for sale 56,272 9,360 6,118 4,471 3,969
Investment securities:
U.S. government and federal agency obligations 698,374 703,212 580,816 402,591 424,823
Government-sponsored enterprise obligations 666,354 776,488 824,066 887,631 988,120
State and municipal obligations 1,763,849 1,718,587 1,779,704 1,805,931 1,799,355
Mortgage-backed securities 3,394,466 3,424,716 3,335,627 3,217,589 3,161,050
Asset-backed securities 2,377,708 2,537,472 2,574,426 2,546,982 2,839,483
Other marketable securities 337,572 342,382 337,340 302,323 249,075
Unrealized gain on investment securities 191,565     149,319     130,231     118,404     170,039  
Total available for sale securities 9,429,888 9,652,176 9,562,210 9,281,451 9,631,945
Trading securities 20,540 18,190 23,217 22,283 19,758
Non-marketable securities 116,103     127,769     114,321     114,062     109,522  
Total investment securities 9,566,531     9,798,135     9,699,748     9,417,796     9,761,225  

Federal funds sold and short-term securities purchased under agreements to   resell
11,916 17,378 18,694 21,012 12,812
Long-term securities purchased under agreements to resell 824,999 850,275 902,174 1,007,606 1,049,999
Interest earning deposits with banks 125,024 219,636 178,486 160,687 198,407
Other assets 1,113,214     1,172,916     1,119,602     1,106,739     1,135,601  
Total assets $ 24,405,446     $ 24,503,260     $ 24,047,733     $ 23,508,917     $ 23,739,525  
 
LIABILITIES AND EQUITY:
Non-interest bearing deposits $ 6,885,889 $ 6,905,673 $ 6,995,666 $ 6,781,592 $ 6,744,536
Savings 787,478 761,020 736,824 739,172 738,769
Interest checking and money market 10,287,923 10,128,543 9,805,457 9,619,621 9,759,608
Time open & C.D.'s of less than $100,000 758,703 775,221 796,639 820,792 844,675
Time open & C.D.'s of $100,000 and over 1,635,892     1,483,700     1,219,803     1,171,617     1,227,322  
Total deposits 20,355,885     20,054,157     19,554,389     19,132,794     19,314,910  
Borrowings:

Federal funds purchased and securities sold under agreements to  repurchase
1,211,892 1,404,754 1,707,430 1,677,322 1,674,682
Other borrowings 104,649     377,711     103,819     103,875     103,846  
Total borrowings 1,316,541 1,782,465 1,811,249 1,781,197 1,778,528
Other liabilities 260,179     254,437     295,718     250,626     260,945  
Total liabilities 21,932,605     22,091,059     21,661,356     21,164,617     21,354,383  
Equity 2,472,841     2,412,201     2,386,377     2,344,300     2,385,142  
Total liabilities and equity   $ 24,405,446     $ 24,503,260     $ 24,047,733     $ 23,508,917     $ 23,739,525  
 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES
     

(Unaudited) (Dollars in thousands)
  For the Three Months Ended
  June 30,

2016
  March 31,

2016
 

December 31,2015
 

September 30,2015
 

June 30,2015
ASSETS:        
Loans:
Business (1) 2.90 % 2.87 % 2.78 % 2.73 % 2.79 %
Real estate — construction and land 3.46 3.51 3.41 3.52 3.65
Real estate — business 3.69 3.70 3.68 3.71 3.83
Real estate — personal 3.76 3.77 3.76 3.73 3.77
Consumer 3.80 3.87 3.91 4.00 3.92
Revolving home equity 3.59 3.52 3.44 3.50 3.60
Consumer credit card 11.54 11.42 11.23 11.59 11.74
Overdrafts                  
Total loans 3.86     3.89     3.85     3.89     3.95  
Loans held for sale 4.95 5.80 5.40 4.26 3.94
Investment securities:
U.S. government and federal agency obligations 3.48 .40 .17 4.39 6.09
Government-sponsored enterprise obligations 3.03 1.93 1.89 1.77 1.82
State and municipal obligations (1) 3.60 3.66 3.64 3.44 3.49
Mortgage-backed securities 2.36 2.45 2.54 2.47 2.61
Asset-backed securities 1.45 1.39 1.25 1.15 1.03
Other marketable securities (1) 2.77     2.79     2.83     2.65     2.61  
Total available for sale securities 2.51 2.20 2.20 2.32 2.38
Trading securities (1) 2.27 2.87 2.65 2.72 2.86
Non-marketable securities (1) 8.03     6.54     8.19     8.28     8.90  
Total investment securities 2.58     2.26     2.27     2.39     2.45  

Federal funds sold and short-term securities purchased under   agreements to resell
.64 .56 .32 .40 .47
Long-term securities purchased under agreements to resell 1.64 1.64 1.40 1.29 1.40
Interest earning deposits with banks .49     .49     .28     .25     .25  
Total interest earning assets 3.25     3.10     3.07     3.12     3.16  
 
LIABILITIES AND EQUITY:
Interest bearing deposits:
Savings .11 .12 .12 .13 .11
Interest checking and money market .13 .13 .13 .13 .13
Time open & C.D.'s of less than $100,000 .38 .38 .37 .38 .39
Time open & C.D.'s of $100,000 and over .58     .54     .51     .53     .49  
Total interest bearing deposits .20     .19     .18     .18     .18  
Borrowings:

Federal funds purchased and securities sold under agreements to  repurchase
.24 .25 .14 .11 .10
Other borrowings 3.49     1.33     3.47     3.43     3.44  
Total borrowings .50     .48     .33     .31     .30  
Total interest bearing liabilities .22 %   .23 %   .20 %   .20 %   .19 %
 
Net yield on interest earning assets   3.11 %   2.95 %   2.94 %   3.00 %   3.04 %

(1)
 

Stated on a tax equivalent basis using a federal income tax rate of 35%.
 
COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CREDIT QUALITY
                             
  For the Three Months Ended   For the Six Months Ended

(Unaudited) (In thousands, except per share data)
 

June 30, 2016
 

March 31,2016
 

December 31,

2015
 

September 30,2015
 

June 30,2015
 

June 30, 2016
 

June 30,2015
ALLOWANCE FOR LOAN LOSSES          
Balance at beginning of period $ 152,132 $ 151,532 $ 151,532 $ 151,532 $ 153,532 $ 151,532 $ 156,532
Provision for losses 9,216 9,439 9,186 8,364 6,757 18,655 11,177
Net charge-offs (recoveries):
Commercial portfolio:
Business (65 ) 463 (133 )

(175
) (239 ) 398 (80 )
Real estate — construction and land (507 ) (11 ) 60 (67 ) (309 ) (518 ) (1,255 )
Real estate — business (1,030 )   (242 )   (626 )   (22 )   764     (1,272 )   515  
(1,602 )   210     (699 )   (264 )   216     (1,392 )   (820 )
Personal banking portfolio:
Consumer credit card 6,650 5,918 6,479 5,784 6,424 12,568 12,776
Consumer 1,781 2,599 2,251 2,435 1,849 4,380 3,592
Overdraft 307 219 487 429 212 526 434
Real estate — personal 305 (195 ) 458 (69 ) (47 ) 110 52
Revolving home equity 75     88     210     49     103     163     143  
9,118     8,629     9,885     8,628     8,541     17,747     16,997  
Total net loan charge-offs 7,516     8,839     9,186     8,364     8,757     16,355     16,177  
Balance at end of period   $ 153,832     $ 152,132     $ 151,532     $ 151,532     $ 151,532     $ 153,832     $ 151,532  
NET CHARGE-OFF RATIOS*
Commercial portfolio:
Business (.01 )% .04 % (.01 )% (.02 )% (.02 )% .02 % %
Real estate — construction and land (.26 ) (.01 ) .04 (.06 ) (.29 ) (.14 ) (.60 )
Real estate — business (.17 )   (.04 )   (.11 )       .13     (.11 )   .05  
(.08 )   .01     (.04 )   (.01 )   .01     (.04 )   (.02 )
Personal banking portfolio:
Consumer credit card 3.62 3.16 3.40 3.08 3.51 3.39 3.47
Consumer .37 .54 .47 .52 .41 .46 .41
Overdraft 31.53 18.46 30.65 32.52 18.85 24.35 17.30
Real estate — personal .06 (.04 ) .09 (.01 ) (.01 ) .01 .01
Revolving home equity .07     .08     .19     .04     .10     .08     .07  
.74     .69     .78     .69     .70     .71     .71  
Total   .24 %   .28 %   .30 %   .28 %   .30 %   .26 %   .28 %
CREDIT QUALITY RATIOS
Non-performing assets to total loans .20 % .25 % .24 % .24 % .26 %
Non-performing assets to total assets .11 .13 .12 .12 .13
Allowance for loan losses to total loans   1.18     1.20     1.22     1.24     1.27  
NON-PERFORMING ASSETS
Non-accrual loans:
Business $ 12,716 $ 16,098 $ 10,874 $ 11,699 $ 11,856
Real estate — construction and land 2,170 2,710 3,090 4,046 3,600
Real estate — business 5,236 6,234 7,863 5,054 5,643
Real estate — personal 4,293 4,205 4,425 4,980 5,446
Consumer 100
Revolving home equity 109     120     323          
Total 24,524     29,367     26,575     25,779     26,645  
Foreclosed real estate 1,609     1,997     2,819     3,053     4,185  
Total non-performing assets $ 26,133     $ 31,364     $ 29,394     $ 28,832     $ 30,830  
Loans past due 90 days and still accruing interest   $ 15,892     $ 15,360     $ 16,467     $ 14,707     $ 14,218  

*as a percentage of average loans (excluding loans held for sale)
 

COMMERCE BANCSHARES, INC. Management Discussion of Second Quarter Results June 30, 2016

For the quarter ended June 30, 2016, net income attributable to Commerce Bancshares, Inc. (net income) amounted to $69.9 million, compared to $65.4 million in the previous quarter and $74.4 million in the same quarter last year. The increase in net income over the previous quarter resulted mainly from an increase in net interest income of $8.1 million coupled with small declines in the provision for loan losses and non-interest expense. Non-interest income declined $2.5 million mainly due to a gain on sale of a former branch property in the prior quarter of $3.3 million. For the current quarter, the return on total average assets was 1.15%, the return on average common equity was 11.7%, and the efficiency ratio was 61.3%.

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