Commerce Bancshares, Inc. Reports Earnings Per Share Growth of 9% for 2003.Business Editors KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--Jan. 14, 2004 Commerce Bancshares This article is about the bank headquartered in Kansas City, Missouri. For other uses, see Commerce Bank. Commerce Bancshares (NASDAQ: CBSH) is a Kansas City, Missouri based bank with branches in Kansas, Missouri, Illinois, and Oklahoma. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CBSH) announced record earnings of $2.95 per share in 2003 compared to $2.71 per share in 2002, an increase of 9%. Net income for 2003 amounted to $206.5 million compared to $196.3 million earned in 2002. For the year, the return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.5%, while the return on equity totaled 14.3%. For the fourth quarter, earnings per share grew to $.78, compared to $.71 for the same period last year, an increase of 10%. Net income for the quarter amounted to $53.9 million, an increase of 6% compared with $50.9 million last year. The return on average assets was 1.5% and the return on equity for the quarter was 14.8%. The efficiency ratio for the quarter was 56.8%. In announcing these results, David W. Kemper Kemper may refer to:
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. Additionally, results were enhanced by solid expense control. Non-interest expense remained flat compared with the previous quarter and fourth quarter of last year, and has grown overall by 3% this year. Net interest income, which was essentially unchanged from the previous year, was affected by continued low short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. and a lack of growth in commercial loans." Mr. Kemper added, "Asset quality remains strong with our allowance for loan losses totaling over $135 million. We increased this allowance by over $4 million this year and it remains at 1.66% of total loans. Net loan charge-offs were up 9% over 2002, driven primarily by higher losses in our personal and credit card loan portfolios." Total assets at December December: see month. 31, 2003 were $14.3 billion, total loans were $8.1 billion, and total deposits were $10.2 billion. At December 31, 2003, the allowance for loan losses totaled $135 million and was 416% of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. . Net loan charge-offs for the year totaled .46% of average loans outstanding, up from .43% last year. Non-performing assets totaled $33.7 million, or .41% of total loans. During the fourth quarter, the Company declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. and paid its tenth Tenth can mean: In mathematics:
Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. . The Company currently operates in approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 330 banking locations in Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. , Illinois Illinois, river, United StatesIllinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , and Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). . The Company also has operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. involved in mortgage banking, credit related insurance, venture capital, leasing and real estate activities. Posted to the Company's web site is management's discussion of fourth quarter results. To see this information please visit our web site at www.commercebank.com.
For additional information, contact
Jeffery Aberdeen, Controller
at PO Box 13686, Kansas City, MO
or by telephone at (816) 234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com
(Amounts in thousands) 9/30/03 12/31/03 12/31/02
-------------------------------------- -------- --------- ---------
Non-Accrual Loans $32,372 $32,523 $28,065
-------------------------------------- -------- --------- ---------
Foreclosed Real Estate $2,036 $1,162 $1,474
-------------------------------------- -------- --------- ---------
Total Non-Performing Assets $34,408 $33,685 $29,539
-------------------------------------- -------- --------- ---------
Non-Performing Assets to Loans .43% .41% .38%
-------------------------------------- -------- --------- ---------
Non-Performing Assets to Total Assets .25% .24% .22%
====================================== ======== ========= =========
Loans 90 Days & Over Past Due - Still
Accruing $19,100 $20,901 $22,428
====================================== ======== ========= =========
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------
For the Three Months Ended For the Year Ended
----------------------------------- -------------------
(Unaudited) Sept. 30 Dec. 31 Dec. 31 Dec. 31 Dec. 31
2003 2003 2002 2003 2002
----------- ----------- ----------- --------- ---------
FINANCIAL SUMMARY (In thousands, except per share data)
Net interest
income $121,988 $127,507 $127,930 $502,392 $499,965
Taxable
equivalent net
interest
income 123,065 128,149 128,527 505,399 501,958
Non-interest
income 76,940 76,420 72,500 301,667 280,572
Provision for
loan losses 9,655 11,002 10,848 40,676 34,108
Non-interest
expense 116,430 116,765 116,049 472,144 458,200
Net income 54,948 53,861 50,899 206,524 196,310
Cash dividends 14,788 14,613 10,384 51,266 42,185
Net total loan
charge-offs 9,660 8,482 10,818 36,573 33,463
Net business
charge-offs
(recov) 2,314 (105) 3,503 7,581 8,813
Net credit
card charge-
offs 4,925 5,389 4,509 19,664 17,283
Net personal
banking
charge-offs 2,062 2,468 2,147 8,470 6,899
Net real
estate
charge-offs 359 730 659 858 468
Per share:
Net income -
basic $0.79 $0.79 $0.72 $2.98 $2.74
Net income -
diluted $0.79 $0.78 $0.71 $2.95 $2.71
Cash
dividends $0.214 $0.214 $0.147 $0.743 $0.590
Diluted wtd.
average shares
o/s 69,936 69,385 71,409 70,112 72,516
=========== =========== =========== ========= =========
RATIOS
Average loans
to deposits 79.81% 79.38% 81.18% 79.96% 79.29%
Return on total
average assets 1.60% 1.54% 1.58% 1.52% 1.58%
Return on total
average
stockholders'
equity 14.96% 14.77% 14.36% 14.27% 14.42%
Efficiency
ratio (a) 58.56% 56.82% 58.34% 58.83% 58.62%
=========== =========== =========== ========= =========
AT PERIOD END
Book value per
share based on
total
stockholders'
equity $21.03 $21.37 $20.21
Market value
per share $41.67 $49.02 $37.42
Allowance for
loan losses as
a percentage
of loans 1.67% 1.66% 1.66%
Tier I leverage
ratio 9.88% 9.71% 10.18%
Common shares
outstanding 68,509,806 67,891,458 70,381,097
Shareholders of
record 4,934 4,920 5,081
Number of
bank/ATM
locations 328 328 340
Number of bank
charters 4 4 4
Full-time
equivalent
employees 4,986 4,967 5,012
=========== =========== ===========
Dec. 31 Dec. 31
OTHER YTD INFORMATION 2003 2002
----------- -----------
High market
value per
share $49.34 $42.49
Low market
value per
share $33.52 $31.40
=========== ===========
(a) The efficiency ratio is calculated as non-interest expense
(excluding intangibles amortization) as a percent of net interest
income and non-interest income (excluding gains/losses on
securities transactions).
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------
(Unaudited) For the Three Months Ended For the Year Ended
(In thousands, ----------------------------- -------------------
except per share Sept. 30 Dec. 31 Dec. 31 Dec. 31 Dec. 31
data) 2003 2003 2002 2003 2002
--------- --------- --------- --------- ---------
INTEREST INCOME
Interest and fees
on loans $107,379 $105,737 $115,993 $433,495 $471,900
Interest on
investment
securities 40,940 47,646 45,614 183,084 179,167
Interest on federal
funds sold and
securities
purchased under
agreements to
resell 210 266 300 831 1,486
--------- --------- --------- --------- ---------
Total interest
income 148,529 153,649 161,907 617,410 652,553
--------- --------- --------- --------- ---------
INTEREST EXPENSE
Interest on deposits:
Savings, interest
checking and money
market 6,292 6,263 9,494 28,742 45,247
Time open and
C.D.'s of less
than $100,000 11,354 10,525 15,202 48,440 70,367
Time open and
C.D.'s of $100,000
and over 3,363 3,064 4,037 14,278 18,252
Interest on other
borrowings 5,532 6,290 5,244 23,558 18,722
--------- --------- --------- --------- ---------
Total interest
expense 26,541 26,142 33,977 115,018 152,588
--------- --------- --------- --------- ---------
Net interest
income 121,988 127,507 127,930 502,392 499,965
Provision for loan
losses 9,655 11,002 10,848 40,676 34,108
--------- --------- --------- --------- ---------
Net interest
income after
provision for
loan losses 112,333 116,505 117,082 461,716 465,857
--------- --------- --------- --------- ---------
NON-INTEREST INCOME
Trust fees 15,446 15,877 14,715 60,921 60,682
Deposit account
charges and other
fees 27,469 29,126 23,667 102,591 91,303
Bank card
transaction fees 15,507 16,192 16,023 62,222 57,850
Trading account
profits and
commissions 3,653 3,127 4,016 14,740 15,954
Consumer brokerage
services 2,306 2,284 2,034 9,095 9,744
Mortgage banking
revenue 907 449 1,316 4,007 4,277
Net gains (losses)
on securities
transactions 896 (777) 2,249 4,560 2,835
Other 10,756 10,142 8,480 43,531 37,927
--------- --------- --------- --------- ---------
Total non-
interest income 76,940 76,420 72,500 301,667 280,572
--------- --------- --------- --------- ---------
NON-INTEREST EXPENSE
Salaries and
employee benefits 65,036 64,964 63,614 264,599 255,828
Net occupancy 9,451 9,508 9,166 38,736 34,635
Equipment 5,849 6,168 6,132 24,104 22,865
Supplies and
communication 8,539 7,995 8,439 33,474 32,929
Data processing and
software 10,303 10,499 10,516 40,567 44,963
Marketing 3,936 3,398 4,167 14,397 15,001
Other intangible
assets amortization 453 442 423 1,794 2,323
Other 12,863 13,791 13,592 54,473 49,656
--------- --------- --------- --------- ---------
Total non-
interest
expense 116,430 116,765 116,049 472,144 458,200
--------- --------- --------- --------- ---------
Income before income
taxes 72,843 76,160 73,533 291,239 288,229
Less income taxes 17,895 22,299 22,634 84,715 91,919
--------- --------- --------- --------- ---------
NET INCOME $54,948 $53,861 $50,899 $206,524 $196,310
========= ========= ========= ========= =========
Net income per share
- basic $0.79 $0.79 $0.72 $2.98 $2.74
========= ========= ========= ========= =========
Net income per share
- diluted $0.79 $0.78 $0.71 $2.95 $2.71
========= ========= ========= ========= =========
Cash dividends per
common share $0.214 $0.214 $0.147 $0.743 $0.590
========= ========= ========= ========= =========
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
(Unaudited) Sept. 30 Dec. 31 Dec. 31
(In thousands) 2003 2003 2002
------------ ------------ ------------
ASSETS
Loans, net of unearned income $7,945,119 $8,142,679 $7,875,944
Allowance for loan losses (132,701) (135,221) (130,618)
------------ ------------ ------------
Net loans 7,812,418 8,007,458 7,745,326
------------ ------------ ------------
Investment securities:
Available for sale 4,555,494 4,956,668 4,201,477
Trading 12,009 9,356 11,635
Non-marketable 74,021 73,170 62,136
------------ ------------ ------------
Total investment securities 4,641,524 5,039,194 4,275,248
------------ ------------ ------------
Federal funds sold and
securities purchased under
agreements to resell 96,745 108,120 16,945
Cash and due from banks 542,905 567,123 710,406
Land, buildings and equipment -
net 332,940 336,366 335,230
Goodwill 48,522 48,522 43,224
Other intangible assets - net 2,623 2,184 3,967
Other assets 169,637 178,197 178,069
------------ ------------ ------------
Total assets $13,647,314 $14,287,164 $13,308,415
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing demand $1,545,546 $1,716,214 $1,478,880
Savings, interest checking and
money market 6,024,602 6,080,543 5,878,230
Time open and C.D.'s of less
than $100,000 1,779,186 1,730,237 1,952,850
Time open and C.D.'s of
$100,000 and over 605,181 679,214 603,351
------------ ------------ ------------
Total deposits 9,954,515 10,206,208 9,913,311
Federal funds purchased and
securities sold under
agreements to repurchase 1,731,736 2,108,920 1,459,868
Long-term debt and other
borrowings 412,169 400,977 338,457
Other liabilities 107,858 120,105 174,327
------------ ------------ ------------
Total liabilities 12,206,278 12,836,210 11,885,963
------------ ------------ ------------
Stockholders' equity:
Preferred stock --- --- ---
Common stock 336,940 343,183 336,192
Capital surplus 294,900 359,300 290,041
Retained earnings 823,443 707,136 707,433
Treasury stock (82,876) (29,573) (5,507)
Other (2,135) (1,963) (1,800)
Accumulated other
comprehensive income 70,764 72,871 96,093
------------ ------------ ------------
Total stockholders' equity 1,441,036 1,450,954 1,422,452
------------ ------------ ------------
Total liabilities and
stockholders' equity $13,647,314 $14,287,164 $13,308,415
============ ============ ============
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCES
----------------------------------------------------------------------
(Unaudited) For the Three Months Ended For the Year Ended
----------------------------------- -----------------------
(Dollars in Sept. 30 Dec. 31 Dec. 31 Dec. 31 Dec. 31
thousands) 2003 2003 2002 2003 2002
----------- ----------- ----------- ----------- -----------
Loans:
Business $2,072,666 $2,007,568 $2,453,906 $2,148,881 $2,418,517
Real estate -
construction 399,141 410,272 491,960 404,058 474,307
Real estate
- business 1,851,866 1,870,190 1,527,722 1,831,575 1,483,012
Real estate
- personal 1,312,740 1,335,977 1,237,253 1,304,677 1,247,209
Personal
banking 1,837,508 1,853,015 1,738,396 1,793,219 1,646,549
Credit card 533,213 538,310 507,507 527,049 492,148
----------- ----------- ----------- ----------- -----------
Total loans 8,007,134 8,015,332 7,956,744 8,009,459 7,761,742
----------- ----------- ----------- ----------- -----------
Investment
securities
(excluding
unrealized
gains and
losses):
Available
for sale 4,401,412 4,693,803 3,616,148 4,348,969 3,517,251
Trading 10,565 9,368 11,893 17,003 10,931
Non-
marketable 78,180 77,549 69,402 74,501 66,666
----------- ----------- ----------- ----------- -----------
Total
investment
securities 4,490,157 4,780,720 3,697,443 4,440,473 3,594,848
----------- ----------- ----------- ----------- -----------
Federal funds
sold and
securities
purchased
under
agreements
to resell 65,026 85,505 78,358 63,232 84,278
----------- ----------- ----------- ----------- -----------
Total
interest
earning
assets 12,562,317 12,881,557 11,732,545 12,513,164 11,440,868
=========== =========== =========== =========== ===========
Total
assets 13,590,902 13,885,498 12,756,592 13,542,758 12,413,838
=========== =========== =========== =========== ===========
Deposits:
Non-interest
bearing
deposits 1,112,998 1,183,899 1,014,591 1,083,207 974,941
Interest
bearing
deposits:
Savings 386,470 388,448 353,815 380,323 353,779
Interest
checking 415,946 435,975 302,240 404,193 299,764
Money market 5,660,130 5,699,117 5,543,873 5,611,634 5,462,701
Time open
& C.D.'s
of less
than
$100,000 1,806,005 1,755,471 1,967,132 1,838,137 2,046,041
Time open &
C.D.'s of
$100,000
and over 651,504 634,196 619,603 699,241 651,336
----------- ----------- ----------- ----------- -----------
Total
interest
bearing
deposits 8,920,055 8,913,207 8,786,663 8,933,528 8,813,621
----------- ----------- ----------- ----------- -----------
Total
deposits 10,033,053 10,097,106 9,801,254 10,016,735 9,788,562
----------- ----------- ----------- ----------- -----------
Borrowings:
Federal funds
purchased
and securities
sold under
agreements to
repurchase 1,558,322 1,815,160 1,052,186 1,552,439 776,231
Long-term
debt and
other
borrowings 410,123 409,220 360,771 392,798 367,317
----------- ----------- ----------- ----------- -----------
Total
borrowings 1,968,445 2,224,380 1,412,957 1,945,237 1,143,548
----------- ----------- ----------- ----------- -----------
Total
interest
bearing
liabili-
ties 10,888,500 11,137,587 10,199,620 10,878,765 9,957,169
Total
stockholders'
equity 1,456,858 1,446,380 1,406,232 1,446,973 1,361,585
Net yield
on interest
earning assets
(tax-equivalent
basis) 3.89% 3.95% 4.35% 4.04% 4.39%
=========== =========== =========== =========== ===========
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