Commerce Bancshares, Inc. Reports First Quarter EPS Growth of 13%.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. -- 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: CBSH) announced earnings of $.78 per share for the three months ended March 31, 2006, an increase of 13.0% compared to $.69 per share in the first quarter of 2005. Net income for the first quarter amounted to $52.9 million compared with $49.8 million in the same period last year, or an increase of 6.2%. The return on average assets for the three months ended March 31, 2006, was 1.57%, and the return on average equity was 16.1%. In making this announcement, David W. Kemper Kemper may refer to:
Mr. Kemper added: "Asset quality was strong in the first quarter with net loan charge-offs totaling .20% of average loans, mainly due to lower levels of loan losses in the credit card and personal banking portfolios. Our allowance for loan losses totaled $128.5 million, or 1.41% of total outstanding loans at the end of the first quarter." Total assets at March 31, 2006, were $13.7 billion, total loans were $9.1 billion, and total deposits were $11.2 billion. At March 31, 2006, 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. amounted to $8.8 million or .10% of total loans. During the quarter, the Company increased its cash dividend to shareholders by 7%, making this the 38th consecutive year of per share dividend increases. Also during the quarter, the Company bought back 1.0 million shares of its common stock through its treasury stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. plan, and on April 5 announced the purchase of the banking businesses of Boone Boone. 1 City (1990 pop. 25,186), seat of Boone co., central Iowa, on the Des Moines River; inc. 1865. It is a railroad and industrial center with plants making machinery, steel fabrications, and plastic signs. National Savings This article is about the economic term. For the United Kingdom government-run savings institution previously known as National Savings, see National Savings and Investments. and Loan Association, Columbia, Missouri
Columbia (IPA: /kə.lʌm.bi.ə) is the fifth largest city in Missouri and the largest city in central Missouri. . 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. 340 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, and real estate activities. Posted to the Company's Web site is management's discussion of first quarter results. To see this information, please visit our Web site at www.commercebank.com. The Company's Annual Shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. is scheduled for Wednesday Wednesday: see week. , April 19, 2006, at 9:30 a.m. CDST CDST Central Daylight Savings Time CDST Chassis Dynamometer Smoke Test (diesel emissions test) CDST Clinical Decision Support Tool CDST Cassini Deep Space Transponder CDST Certified Desktop Support Technician . The meeting will be held at the Sheraton Clayton Clayton, city (1990 pop. 13,874), seat of St. Louis co., E central Mo., a suburb of St. Louis; inc. 1919. Developed in the 1960s, it has high-rise office buildings, hotels, and shopping centers; several major firms are headquartered there. Plaza Hotel The Plaza Hotel in New York City is a landmark 19-story luxury hotel with a height of 250 feet (76 m) and length of 400 feet that (122 m) occupies the west side of Grand Army Plaza, from which it derives its name, and extends along Central Park South in Manhattan. , 7730 Bonhomme Bonhomme can mean:-
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(Amounts in thousands) 12/31/05 3/31/06 3/31/05
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Non-Accrual Loans $9,845 $8,750 $17,333
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Foreclosed Real Estate $1,868 $1,870 $1,262
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Total Non-Performing Assets $11,713 $10,620 $18,595
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Non-Performing Assets to Loans .13% .12% .22%
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Non-Performing Assets to Total Assets .08% .08% .13%
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Loans 90 Days & Over Past Due - Still
Accruing $14,088 $15,288 $15,972
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COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
--------------------
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(Unaudited) For the Three Months Ended
December 31 March 31 March 31
2005 2006 2005
----------------------------------------------------------------------
Financial Summary (In thousands, except per
share data)
Net interest income $127,006 $123,735 $121,477
Taxable equivalent net interest
income 128,755 125,088 121,994
Non-interest income 88,633 89,448 80,691
Provision for loan losses 11,980 4,432 2,368
Non-interest expense 127,201 129,961 123,922
Net income 56,242 52,944 49,846
Cash dividends 15,557 16,379 16,133
Net total loan charge-offs 12,839 4,411 3,802
Net business charge-offs
(recoveries) (480) (1,081) (2,621)
Net credit card charge-offs 8,506 3,748 4,597
Net personal banking charge-
offs(1) 3,541 1,649 1,948
Net real estate charge-offs
(recoveries) 260 (255) (206)
Net overdraft charge-offs 1,012 350 84
Per share:
Net income - basic $0.83 $0.79 $0.70
Net income - diluted $0.81 $0.78 $0.69
Cash dividends $0.229 $0.245 $0.229
Diluted wtd. average shares o/s 69,040 67,927 72,011
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RATIOS
Average loans to deposits 83.90% 83.32% 79.45%
Return on total average assets 1.62% 1.57% 1.44%
Return on total average
stockholders' equity 16.52% 16.14% 14.35%
Non-interest income to revenue(2) 40.80% 41.30% 38.82%
Efficiency ratio(3) 59.29% 61.66% 62.22%
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AT PERIOD END
Book value per share based on
total stockholders' equity $19.79 $19.74 $19.45
Market value per share $52.12 $51.67 $45.90
Allowance for loan losses as a
percentage of loans 1.44% 1.41% 1.56%
Tier I leverage ratio 9.43% 9.43% 9.46%
Common shares outstanding 67,608,906 66,776,170 70,535,460
Shareholders of record 4,522 4,505 4,735
Number of bank/ATM locations 342 344 331
Number of bank charters 3 3 3
Full-time equivalent employees 4,839 4,863 4,836
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OTHER YTD INFORMATION March 31 March 31
2006 2005
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High market value per share $52.53 $47.62
Low market value per share $49.14 $44.11
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(1) Includes consumer, student and home equity loans
(2) Revenue includes net interest income and non-interest income,
excluding net securities gains/losses.
(3) The efficiency ratio is calculated as non-interest expense
(excluding intangibles amortization) as a percent of net interest
income and non-interest income (excluding net securities
gains/losses).
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
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(Unaudited) For the Three Months Ended
(In thousands, except per share data) December 31 March 31 March 31
2005 2006 2005
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INTEREST INCOME
Interest and fees on loans $142,865 $149,874 $118,523
Interest on investment securities 41,319 37,130 41,746
Interest on federal funds sold and
securities purchased under agreements
to resell 1,159 1,623 584
----------- --------- ---------
Total interest income 185,343 188,627 160,853
----------- --------- ---------
INTEREST EXPENSE
Interest on deposits:
Savings, interest checking and money
market 16,261 19,607 10,457
Time open and C.D.'s of less than
$100,000 14,803 16,731 10,392
Time open and C.D.'s of $100,000 and
over 9,045 13,187 6,352
Interest on other borrowings 18,228 15,367 12,175
----------- --------- ---------
Total interest expense 58,337 64,892 39,376
----------- --------- ---------
Net interest income 127,006 123,735 121,477
Provision for loan losses 11,980 4,432 2,368
----------- --------- ---------
Net interest income after
provision for loan losses 115,026 119,303 119,109
----------- --------- ---------
NON-INTEREST INCOME
Deposit account charges and other fees 30,085 27,497 24,301
Bank card transaction fees 23,527 21,708 19,507
Trust fees 17,529 17,819 16,394
Trading account profits and
commissions 2,251 2,565 2,614
Consumer brokerage services 2,306 2,389 2,825
Loan fees and sales 2,196 3,743 3,440
Investment securities gains, net 1,089 2,403 3,612
Other 9,650 11,324 7,998
----------- --------- ---------
Total non-interest income 88,633 89,448 80,691
----------- --------- ---------
NON-INTEREST EXPENSE
Salaries and employee benefits 68,730 71,725 70,180
Net occupancy 11,039 10,977 9,778
Equipment 5,971 5,949 5,691
Supplies and communication 8,414 8,393 8,213
Data processing and software 12,612 12,393 11,455
Marketing 4,259 4,318 3,862
Other 16,176 16,206 14,743
----------- --------- ---------
Total non-interest expense 127,201 129,961 123,922
----------- --------- ---------
Income before income taxes 76,458 78,790 75,878
Less income taxes 20,216 25,846 26,032
----------- --------- ---------
NET INCOME $56,242 $52,944 $49,846
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Net income per share - basic $0.83 $0.79 $0.70
=========== ========= =========
Net income per share - diluted $0.81 $0.78 $0.69
=========== ========= =========
Cash dividends per common share $0.229 $0.245 $0.229
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COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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(Unaudited) December 31 March 31 March 31
(In thousands) 2005 2006 2005
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ASSETS
Loans, net of unearned income $8,899,183 $9,138,239 $8,406,110
Allowance for loan losses (128,447) (128,468) (130,960)
------------ ------------ ------------
Net loans 8,770,736 9,009,771 8,275,150
------------ ------------ ------------
Investment securities:
Available for sale 3,667,901 3,401,823 4,442,210
Trading 24,959 25,559 13,154
Non-marketable 77,321 84,353 74,965
------------ ------------ ------------
Total investment securities 3,770,181 3,511,735 4,530,329
------------ ------------ ------------
Federal funds sold and
securities purchased under
agreements to resell 128,862 89,385 179,107
Cash and due from banks 545,273 484,456 502,362
Land, buildings and equipment -
net 374,192 368,209 368,512
Goodwill 48,522 48,522 48,522
Other assets 247,779 219,044 199,290
------------ ------------ ------------
Total assets $13,885,545 $13,731,122 $14,103,272
============ ============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Deposits:
Non-interest bearing demand $1,399,934 $1,418,387 $1,347,994
Savings, interest checking and
money market 6,490,326 6,449,831 6,552,169
Time open and C.D.'s of less
than $100,000 1,831,980 1,925,755 1,700,853
Time open and C.D.'s of
$100,000 and over 1,129,573 1,360,383 1,084,407
------------ ------------ ------------
Total deposits 10,851,813 11,154,356 10,685,423
Federal funds purchased and
securities sold under
agreements to repurchase 1,326,427 901,923 1,566,914
Other borrowings 269,390 258,616 388,328
Other liabilities 100,077 97,982 91,038
------------ ------------ ------------
Total liabilities 12,547,707 12,412,877 12,731,703
------------ ------------ ------------
Stockholders' equity:
Preferred stock - - - - - - - - -
Common stock 347,049 347,049 347,049
Capital surplus 388,552 384,535 385,792
Retained earnings 693,021 729,586 737,006
Treasury stock (86,901) (128,662) (103,696)
Accumulated other
comprehensive income (loss) (3,883) (14,263) 5,418
------------ ------------ ------------
Total stockholders' equity 1,337,838 1,318,245 1,371,569
------------ ------------ ------------
Total liabilities and
stockholders' equity $13,885,545 $13,731,122 $14,103,272
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COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCES
----------------
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(Unaudited) For the Three Months Ended
(Dollars in thousands) December 31 March 31 March 31
2005 2006 2005
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Loans:
Business $2,436,190 $2,542,482 $2,246,288
Real estate - construction 482,813 441,489 442,471
Real estate - business 1,876,813 1,971,197 1,758,141
Real estate - personal 1,360,744 1,358,445 1,335,024
Consumer 1,281,487 1,288,378 1,193,063
Home equity 446,831 447,188 412,356
Student 325,126 359,961 410,020
Credit card 560,569 577,537 546,946
Overdrafts 13,084 20,114 16,297
----------- ----------- -----------
Total loans 8,783,657 9,006,791 8,360,606
----------- ----------- -----------
Investment securities (excluding
unrealized gains and losses):
Available for sale 3,879,182 3,531,600 4,504,318
Trading 12,553 19,012 11,369
Non-marketable 81,332 84,007 76,853
----------- ----------- -----------
Total investment securities 3,973,067 3,634,619 4,592,540
----------- ----------- -----------
Federal funds sold and securities
purchased under agreements to
resell 108,784 141,750 84,987
Total interest earning assets 12,865,508 12,783,160 13,038,133
=========== =========== ===========
Total assets 13,814,899 13,706,253 14,070,385
=========== =========== ===========
Deposits:
Non-interest bearing deposits 616,862 597,492 772,869
Interest bearing deposits:
Savings 387,876 383,869 403,844
Interest checking 170,486 165,531 262,460
Money market 6,530,453 6,494,964 6,439,761
Time open & C.D.'s of less than
$100,000 1,795,743 1,881,277 1,664,823
Time open & C.D.'s of $100,000
and over 968,385 1,286,151 979,011
----------- ----------- -----------
Total interest bearing
deposits 9,852,943 10,211,792 9,749,899
----------- ----------- -----------
Total deposits 10,469,805 10,809,284 10,522,768
----------- ----------- -----------
Borrowings:
Federal funds purchased and
securities sold under agreements
to repurchase 1,578,790 1,226,822 1,655,050
Long-term debt and other
borrowings 325,158 260,580 388,771
----------- ----------- -----------
Total borrowings 1,903,948 1,487,402 2,043,821
----------- ----------- -----------
Total interest bearing liabilities 11,756,891 11,699,194 11,793,720
Total stockholders' equity 1,350,744 1,330,334 1,408,414
Net yield on interest earning
assets (tax-equivalent basis) 3.97% 3.97% 3.79%
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