Commerce Bancshares, Inc. Reports Record Earnings for 2001.Business Editors ST. LOUIS--(BUSINESS WIRE)--Jan. 16, 2002 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 record earnings of $2.73 per share in 2001 compared to $2.63 per share in 2000, an increase of 4%. Total earnings for 2001 amounted to $182.0 million, generating a return on realized equity of 15.3% and a 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). of 1.55%. For the fourth quarter, earnings per share increased to $.71, compared to $.69 for the same period last year, an increase of 3%. Earnings for the quarter amounted to $46.8 million, compared with $46.2 million last year. The returns on assets and realized equity for the quarter were 1.52% and 15.2%, respectively. The efficiency ratio was 57.6%. In announcing these results, David W. Kemper Kemper may refer to:
midmost of a difficult economic environment, we are pleased to report record earnings. The increase in earnings was mainly the result of solid growth in non-interest income coupled with good expense control. Our emphasis on developing non-interest income has resulted in a 10% increase this year over last year and now comprises 37% of total revenue. Our growth in fee revenue is being driven in the deposit, trust and capital market lines of business. Non-interest expense was also well contained, increasing by 2%." Mr. Kemper added, "Reflecting a contracting economic environment in our markets, average loan balances declined slightly from the previous quarter and from a year ago. However, average deposits have continued to grow at an annualized annualized 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. rate of 7%. Net charge-offs for the year were .48% of average loans, and we maintained our allowance for loan losses at 1.70% of total loans. We will continue to monitor the credit quality of our customers and look for opportunities as economic conditions improve to further invest in our franchise." At December December: see month. 31, 2001, total assets were $12.9 billion, total loans were $7.6 billion, and total deposits were $10.0 billion. At December 31, 2001, the allowance for loan losses amounted to $130.0 million, and was 422% of non-performing assets. 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 eighth consecutive annual 5% stock dividend. 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 over 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 fourth quarter results. To see this information please visit our web site at www.commercebank.com.
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(Amounts in thousands) 9/30/01 12/31/01 12/31/00
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Non-Accrual Loans $22,556 $28,819 $19,617
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Foreclosed Real Estate $ 2,106 $ 1,949 $ 1,707
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Total Non-Performing Assets $24,662 $30,768 $21,324
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Non Performing Assets to Total Loans .32% .40% .27%
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Non Performing Assets to Total Assets .20% .24% .19%
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Loans 90 Days & Over Past
Due-Still Accruing $23,182 $19,699 $26,670
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COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
For the Three Months Ended
(Unaudited) Sept. 30 Dec. 31 Dec. 31
2001 2001 2000
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INCOME AND EXPENSE (In thousands)
Net interest income $116,014 $117,351 $119,766
Taxable equivalent net
interest income 116,570 117,914 120,318
Non-interest income 69,534 70,438 67,839
Provision for loan losses 8,317 10,584 8,067
Non-interest expense 110,071 109,712 109,758
Net income 45,518 46,796 46,223
Cash dividends 10,023 9,986 9,241
Net total loan charge-offs 8,462 11,575 8,077
Net business charge-offs 1,888 3,864 1,572
Net credit card charge-offs 4,173 4,653 3,858
Net personal banking charge-offs 2,321 2,477 1,904
Net real estate charge-offs 80 581 743
Per share:
Net income - basic $0.69 $0.71 $0.70
Net income - diluted $0.68 $0.71 $0.69
Cash dividends $0.152 $0.152 $0.141
Diluted wtd. average shares o/s 66,715 66,334 66,849
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RATIOS
Average loans to deposits 81.18% 79.15% 89.41%
Return on total average assets 1.52% 1.52% 1.69%
Return on average realized
stockholders' equity 15.03% 15.18% 16.45%
Return on total average
stockholders' equity 14.64% 14.51% 16.33%
Efficiency ratio 58.71% 57.61% 57.38%
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AT PERIOD END
Book value per share based on
realized stockholders' equity $18.43 $18.84 $17.18
Book value per share based on
total stockholders' equity $19.22 $19.47 $17.42
Market value per share $35.83 $38.99 $40.48
Allowance for loan losses
as a percentage of loans 1.68% 1.70% 1.62%
Tier I leverage ratio 9.85% 9.81% 9.91%
Common shares outstanding 65,684,993 65,368,356 65,647,960
Shareholders of record 5,357 5,363 5,440
Number of bank/ATM locations 341 345 332
Number of bank charters 4 4 4
Full-time equivalent employees 5,119 5,094 5,076
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Dec. 31 Dec. 30
OTHER YTD INFORMATION 2001 2000
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High market value per share $41.55 $40.71
Low market value per share $31.35 $23.92
For the Year Ended
(Unaudited) Dec. 31 Dec. 31
2001 2000
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INCOME AND EXPENSE (In thousands)
Net interest income $467,910 $480,653
Taxable equivalent net
interest income 470,086 483,515
Non-interest income 277,512 252,808
Provision for loan losses 36,423 35,159
Non-interest expense 439,638 430,381
Net income 181,974 178,574
Cash dividends 40,254 37,613
Net total loan charge-offs 37,414 29,756
Net business charge-offs 9,086 4,608
Net credit card charge-offs 19,005 15,795
Net personal banking charge-offs 8,815 8,188
Net real estate charge-offs 508 1,165
Per share:
Net income - basic $2.76 $2.66
Net income - diluted $2.73 $2.63
Cash dividends $0.610 $0.562
Diluted wtd. average shares o/s 66,722 67,888
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RATIOS
Average loans to deposits 82.49% 87.26%
Return on total average assets 1.55% 1.62%
Return on average realized
stockholders' equity 15.32% 16.19%
Return on total average
stockholders' equity 14.88% 16.22%
Efficiency ratio 58.25% 57.63%
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COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) For the Three Months Ended
(In thousands, except per Sept. 30 Dec. 31 Dec. 31
share data) 2001 2001 2000
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INTEREST INCOME
Interest and fees on loans $143,447 $128,926 $172,092
Interest on investment securities 34,798 41,971 30,472
Interest on federal funds sold
and securities purchased under
agreements to resell 6,300 1,609 3,531
---------- ----------- -----------
Total interest income 184,545 172,506 206,095
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INTEREST EXPENSE
Interest on deposits:
Savings and interest
bearing demand 22,875 15,056 38,861
Time open and C.D.'s of
less than $100,000 30,495 27,892 30,058
Time open and C.D.'s of
$100,000 and over 7,038 6,316 5,223
Interest on other borrowings 8,123 5,891 12,187
---------- ----------- -----------
Total interest expense 68,531 55,155 86,329
---------- ----------- -----------
Net interest income 116,014 117,351 119,766
Provision for loan losses 8,317 10,584 8,067
---------- ----------- -----------
Net interest income after
provision for loan losses 107,697 106,767 111,699
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NON-INTEREST INCOME
Trust fees 15,695 15,066 15,553
Deposit account charges
and other fees 21,405 22,497 18,560
Credit card transaction fees 13,668 14,513 15,004
Trading account profits
and commissions 3,871 4,031 2,086
Mortgage banking revenue 1,097 1,971 1,098
Net gains (losses) on securities
transactions 1,348 627 (269)
Other 12,450 11,733 15,807
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Total non-interest income 69,534 70,438 67,839
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NON-INTEREST EXPENSE
Salaries and employee benefits 59,415 60,033 55,723
Net occupancy 8,242 7,797 7,736
Equipment 5,461 5,375 4,798
Supplies and communication 8,353 8,815 8,729
Data processing and software 11,480 12,028 13,774
Marketing 3,460 3,066 3,917
Goodwill and core deposit
amortization 1,931 1,893 1,959
Other 11,729 10,705 13,122
---------- ----------- -----------
Total non-interest expense 110,071 109,712 109,758
---------- ----------- -----------
Income before income taxes 67,160 67,493 69,780
Less income taxes 21,642 20,697 23,557
---------- ----------- -----------
NET INCOME $45,518 $46,796 $46,223
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Net income per share - basic $0.69 $0.71 $0.70
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Net income per share - diluted $0.68 $0.71 $0.69
========== =========== ===========
Cash dividends per common share $0.152 $0.152 $0.141
(Unaudited) For the Year Ended
(In thousands, except per Dec. 31 Dec. 31
share data) 2001 2000
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INTEREST INCOME
Interest and fees on loans $590,341 $663,852
Interest on investment securities 138,235 133,799
Interest on federal funds sold
and securities purchased under
agreements to resell 22,386 14,517
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Total interest income 750,962 812,168
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INTEREST EXPENSE
Interest on deposits:
Savings and interest
bearing demand 101,102 149,914
Time open and C.D.'s of
less than $100,000 121,851 112,182
Time open and C.D.'s of
$100,000 and over 27,699 18,275
Interest on other borrowings 32,400 51,144
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Total interest expense 283,052 331,515
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Net interest income 467,910 480,653
Provision for loan losses 36,423 35,159
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Net interest income after
provision for loan losses 431,487 445,494
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NON-INTEREST INCOME
Trust fees 62,753 58,588
Deposit account charges
and other fees 84,486 71,025
Credit card transaction fees 54,583 51,453
Trading account profits
and commissions 15,332 8,594
Mortgage banking revenue 6,195 3,521
Net gains (losses) on securities
transactions 3,722 541
Other 50,441 59,086
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Total non-interest income 277,512 252,808
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NON-INTEREST EXPENSE
Salaries and employee benefits 236,133 220,656
Net occupancy 32,027 30,381
Equipment 21,991 20,673
Supplies and communication 33,778 34,048
Data processing and software 47,178 48,664
Marketing 12,914 13,274
Goodwill and core deposit
amortization 7,601 8,016
Other 48,016 54,669
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Total non-interest expense 439,638 430,381
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Income before income taxes 269,361 267,921
Less income taxes 87,387 89,347
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NET INCOME $181,974 $178,574
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Net income per share - basic $2.76 $2.66
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Net income per share - diluted $2.73 $2.63
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Cash dividends per common share $0.610 $0.562
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COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited) Sept. 30 Dec. 31 Dec. 31
(In thousands) 2001 2001 2000
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ASSETS
Loans, net of unearned income $7,802,350 $7,638,482 $7,906,665
Allowance for loan losses (130,964) (129,973) (128,445)
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Net loans 7,671,386 7,508,509 7,778,220
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Investment securities:
Available for sale 2,948,965 3,654,919 1,864,991
Trading 23,678 12,265 20,674
Non-marketable 53,081 52,334 55,238
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Total investment securities 3,025,724 3,719,518 1,940,903
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Federal funds sold and securities
purchased under agreements
to resell 244,025 375,060 241,835
Cash and due from banks 825,132 824,218 616,724
Land, buildings and
equipment - net 300,617 313,383 257,629
Goodwill and core deposit
premium - net 52,474 50,580 58,182
Other assets 196,540 111,538 221,624
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Total assets $12,315,898 $12,902,806 $11,115,117
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing demand $1,309,271 $1,579,759 $1,564,907
Savings and interest
bearing demand 5,529,229 5,652,716 5,049,729
Time open and C.D.'s of
less than $100,000 2,318,929 2,188,448 2,081,057
Time open and C.D.'s of
$100,000 and over 555,022 611,043 386,045
------------ ------------ -----------
Total deposits 9,712,451 10,031,966 9,081,738
Federal funds purchased and
securities sold under
agreements to repurchase 723,959 1,087,402 543,874
Long-term debt and other borrowings 442,841 392,586 224,684
Other liabilities 174,262 118,369 121,066
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Total liabilities 11,053,513 11,630,323 9,971,362
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Stockholders' equity:
Preferred stock -- -- --
Common stock 317,786 327,878 313,279
Capital surplus 148,375 213,888 147,436
Retained earnings 781,255 700,230 671,147
Treasury stock (34,747) (5,187) (2,895)
Other (1,892) (1,749) (1,179)
Accumulated other
comprehensive income 51,608 37,423 15,967
------------ ------------ -----------
Total stockholders' equity 1,262,385 1,272,483 1,143,755
------------ ------------ -----------
Total liabilities and
stockholders' equity $12,315,898 $12,902,806 $11,115,117
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COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCES
(Unaudited) For the Three Months Ended
(Dollars in thousands) Sept. 30 Dec. 31 Dec. 31
2001 2001 2000
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Loans:
Business $2,476,368 $2,430,352 $2,660,736
Real estate - construction 414,146 413,123 378,353
Real estate - business 1,421,017 1,464,067 1,274,826
Real estate - personal 1,319,655 1,294,533 1,414,987
Personal banking 1,644,963 1,610,560 1,661,242
Credit card 483,560 485,698 500,887
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Total loans 7,759,709 7,698,333 7,891,031
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Investment securities (excluding
unrealized gains and losses):
Available for sale 2,430,562 3,182,181 1,873,638
Trading 15,305 13,488 10,860
Non-marketable 57,098 54,664 60,069
----------- ------------ -----------
Total investment securities 2,502,965 3,250,333 1,944,567
----------- ------------ -----------
Federal funds sold and securities
purchased under agreements
to resell 697,730 301,064 214,691
----------- ------------ -----------
Total interest earning assets 10,960,404 11,249,730 10,050,289
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Total assets 11,888,313 12,206,024 10,877,809
=========== ============ ===========
Interest bearing deposits:
Savings 330,514 330,056 302,028
Interest bearing demand 5,468,739 5,579,304 4,809,488
Time open & C.D.'s of less
than $100,000 2,299,700 2,280,146 2,063,191
Time open & C.D.'s of
$100,000 and over 545,203 579,061 349,044
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Total interest bearing
deposits 8,644,156 8,768,567 7,523,751
----------- ------------ -----------
Borrowings:
Federal funds purchased
and securities sold under
agreements to repurchase 629,371 643,407 633,959
Long-term debt and
other borrowings 326,138 413,852 183,530
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Total borrowings 955,509 1,057,259 817,489
----------- ------------ -----------
Total interest bearing
liabilities 9,599,665 9,825,826 8,341,240
=========== ============ ===========
Non-interest bearing deposits 914,871 958,194 1,301,631
Realized stockholders' equity 1,201,143 1,222,951 1,117,718
Unrealized securities gain
(loss) - net of tax 32,386 56,927 8,118
Net yield on interest earning
assets (tax-equivalent basis) 4.22% 4.16% 4.76%
(Unaudited) For the Year Ended
(Dollars in thousands) Dec. 31 Dec. 31
2001 2000
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Loans:
Business $2,556,796 $2,628,201
Real estate - construction 409,262 382,106
Real estate - business 1,398,366 1,267,872
Real estate - personal 1,339,436 1,417,548
Personal banking 1,616,254 1,608,795
Credit card 489,817 497,519
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Total loans 7,809,931 7,802,041
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Investment securities (excluding
unrealized gains and losses):
Available for sale 2,391,879 2,105,799
Trading 15,924 11,000
Non-marketable 54,483 52,957
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Total investment securities 2,462,286 2,169,756
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Federal funds sold and securities
purchased under agreements
to resell 541,930 227,623
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Total interest earning assets 10,814,147 10,199,420
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Total assets 11,730,603 11,019,130
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Interest bearing deposits:
Savings 323,462 316,532
Interest bearing demand 5,253,024 4,896,337
Time open & C.D.'s of less
than $100,000 2,259,161 2,068,653
Time open & C.D.'s of
$100,000 and over 530,874 328,652
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Total interest bearing
deposits 8,366,521 7,610,174
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Borrowings:
Federal funds purchased
and securities sold under
agreements to repurchase 607,187 777,782
Long-term debt and
other borrowings 296,041 104,958
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Total borrowings 903,228 882,740
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Total interest bearing
liabilities 9,269,749 8,492,914
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Non-interest bearing deposits 1,101,174 1,331,220
Realized stockholders' equity 1,188,084 1,102,669
Unrealized securities gain
(loss) - net of tax 34,755 (1,961)
Net yield on interest earning
assets (tax-equivalent basis) 4.35% 4.74%
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