Commerce Bancshares, Inc. Reports Second Quarter Earnings Per Share Growth of 10%.Business Editors 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 $.75 per share for the three months ended June June: see month. 30, 2002, an increase of 10.3% compared to $.68 per share in 2001. Net income for the second quarter amounted to $50.1 million compared with $45.8 million in the same period last year. For the quarter, the return on realized equity was 15.6% and 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 1.65%. The efficiency ratio for the quarter decreased to 57.7%. For the first six months ended June 30, 2002, earnings per share totaled $1.46, an increase of 9.0% compared with $1.34 in 2001. Net income amounted to $97.0 million compared with $89.7 million for 2001, an increase of 8.2%. In announcing these results, David W. Kemper Kemper may refer to:
integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" earnings per share growth for the second quarter and strong results for the first half of the year. This performance was led by continued improvement in net interest income and lower credit costs. Stable interest rates and continued re-pricing of certificate of deposit accounts contributed to a 13 basis point improvement in the net interest margin in the second quarter. While an uncertain economy is limiting new lending opportunities and growth in some fee-based business lines, improvements in credit costs and a flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. of general overhead expenses are offsetting this slower revenue growth." Mr. Kemper continued, "Asset quality remains strong. Net charge-offs for the first half of 2002 were .37% of average loans compared to .44% in the previous year. Our loan loss reserve remains at 1.68% of total loans while non-performing assets remain at relatively low levels." Total assets at June 30, 2002 were $12.3 billion, total loans were $7.7 billion, and total deposits were $9.8 billion. At June 30, 2002, the allowance for loan losses totaled $130 million and was 450% of non-performing assets. 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 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, and real estate activities. Posted to the Company's web site is management's discussion of second quarter results. To see this information please visit our web site at www.commercebank.com.
============================= ============ ============ ============
(Amounts in thousands) 3/31/02 6/30/02 6/30/01
----------------------------- ------------ ------------ ------------
Non-Accrual Loans $26,181 $27,243 $24,458
----------------------------- ------------ ------------ ------------
Foreclosed Real Estate $2,280 $1,660 $2,171
----------------------------- ------------ ------------ ------------
Total Non-Performing Assets $28,461 $28,903 $26,629
----------------------------- ------------ ------------ ------------
Non-Performing Assets
to Loans .37% .37% .34%
----------------------------- ------------ ------------ ------------
Non-Performing Assets to
Total Assets .23% .23% .23%
============================= ============ ============ ============
Loans 90 Days & Over Past
Due - Still Accruing $20,330 $20,630 $20,268
============================= ============ ============ ============
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
=========================================================================
For the Six Months
For the Three Months Ended Ended
(Unaudited) March 31 June 30 June 30 June 30 June 30
2002 2002 2001 2002 2001
-------------------------------------------------------------------------
INCOME AND EXPENSE
(In thousands)
Net interest income $120,593 $124,388 $117,649 $244,981 $234,545
Taxable equivalent net
interest income 121,099 124,844 118,197 245,943 235,602
Non-interest income 69,168 69,816 70,676 138,984 137,540
Provision for loan
losses 7,399 6,668 7,992 14,067 17,522
Non-interest expense 114,022 112,996 111,719 227,018 219,855
Net income 46,912 50,106 45,783 97,018 89,660
Cash dividends 10,659 10,647 10,076 21,306 20,245
Net total loan
charge-offs 7,399 6,668 7,963 14,067 17,377
Net business charge-offs 1,361 1,118 884 2,479 3,334
Net credit card
charge-offs 4,292 4,309 5,355 8,601 10,179
Net personal banking
charge-offs 1,669 1,472 1,713 3,141 4,017
Net real estate
charge-offs (recov) 77 (231) 11 (154) (153)
Per share:
Net income - basic $0.72 $0.76 $0.69 $1.48 $1.36
Net income - diluted $0.71 $0.75 $0.68 $1.46 $1.34
Cash dividends $0.163 $0.163 $0.152 $0.325 $0.305
Diluted wtd. average
shares o/s 66,358 66,420 66,912 66,389 66,924
=========================================================================
RATIOS
Average loans to
deposits 78.09% 78.12% 83.39% 78.11% 84.96%
Return on total average
assets 1.55% 1.65% 1.58% 1.60% 1.58%
Return on average
realized stockholders'
equity 15.21% 15.62% 15.60% 15.42% 15.54%
Return on total average
stockholders' equity 14.64% 15.05% 15.23% 14.85% 15.21%
Efficiency ratio 59.72% 57.74% 58.50% 58.72% 58.35%
=========================================================================
AT PERIOD END
Book value per share
based on realized
stockholders' equity $19.36 $19.82 $18.01
Book value per share
based on total
stockholders' equity $19.90 $20.98 $18.46
Market value per share $44.22 $44.24 $35.14
Allowance for loan
losses as a percentage
of loans 1.71% 1.68% 1.68%
Tier I leverage ratio 10.05% 10.36% 9.88%
Common shares
outstanding 65,469,764 65,184,449 66,017,287
Shareholders of record 5,281 5,161 5,444
Number of bank/ATM
locations 345 342 343
Number of bank charters 4 4 4
Full-time equivalent
employees 5,032 5,021 5,113
=======================================================
June 30 June 30
OTHER YTD INFORMATION 2002 2001
-------------------------------------------------------
High market value
per share $46.85 $41.55
Low market value
per share $37.60 $31.35
=======================================================
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
=========================================================================
(Unaudited) For the Six Months
(In thousands, except For the Three Months Ended Ended
per share data) March 31 June 30 June 30 June 30 June 30
2002 2002 2001 2002 2001
-------------------------------------------------------------------------
INTEREST INCOME
Interest and fees
on loans $119,112 $117,796 $153,586 $236,908 $317,968
Interest on investment
securities 44,089 44,666 32,714 88,755 61,466
Interest on federal
funds sold and
securities purchased
under agreements
to resell 541 411 6,426 952 14,477
--------- --------- --------- --------- ---------
Total interest income 163,742 162,873 192,726 326,615 393,911
--------- --------- --------- --------- ---------
INTEREST EXPENSE
Interest on deposits:
Savings and interest
bearing demand 11,994 12,101 27,367 24,095 63,171
Time open and C.D.'s
of less than $100,000 21,249 17,872 32,046 39,121 63,464
Time open and C.D.'s
of $100,000 and over 5,018 4,743 7,428 9,761 14,345
Interest on
other borrowings 4,888 3,769 8,236 8,657 18,386
--------- --------- --------- --------- ---------
Total interest expense 43,149 38,485 75,077 81,634 159,366
--------- --------- --------- --------- ---------
Net interest income 120,593 124,388 117,649 244,981 234,545
Provision for
loan losses 7,399 6,668 7,992 14,067 17,522
--------- --------- --------- --------- ---------
Net interest income
after provision for
loan losses 113,194 117,720 109,657 230,914 217,023
--------- --------- --------- --------- ---------
NON-INTEREST INCOME
Trust fees 15,439 15,774 16,790 31,213 31,992
Deposit account charges
and other fees 21,093 22,793 21,355 43,886 40,584
Credit card
transaction fees 12,883 14,229 13,695 27,112 26,402
Trading account
profits and
commissions 4,045 3,826 3,578 7,871 7,430
Mortgage banking
revenue 571 1,066 1,432 1,637 3,127
Net gains (losses) on
securities
transactions 36 (328) 510 (292) 1,747
Other 15,101 12,456 13,316 27,557 26,258
--------- --------- --------- --------- ---------
Total non-interest
income 69,168 69,816 70,676 138,984 137,540
--------- --------- --------- --------- ---------
NON-INTEREST EXPENSE
Salaries and employee
benefits 63,635 61,066 58,772 124,701 116,685
Net occupancy 8,427 8,207 7,550 16,634 15,988
Equipment 5,111 6,003 5,527 11,114 11,155
Supplies and
communication 7,943 8,221 8,600 16,164 16,610
Data processing
and software 11,876 12,476 12,318 24,352 23,670
Marketing 3,368 3,628 3,571 6,996 6,388
Goodwill amortization - - 1,126 - 2,323
Other intangible
assets amortization 724 668 755 1,392 1,506
Other 12,938 12,727 13,500 25,665 25,530
--------- --------- --------- --------- ---------
Total non-interest
expense 114,022 112,996 111,719 227,018 219,855
--------- --------- --------- --------- ---------
Income before
income taxes 68,340 74,540 68,614 142,880 134,708
Less income taxes 21,428 24,434 22,831 45,862 45,048
--------- --------- --------- --------- ---------
NET INCOME $46,912 $50,106 $45,783 $97,018 $89,660
------------------------=========-=========-=========-=========-=========
Net income per
share - basic $0.72 $0.76 $0.69 $1.48 $1.36
========= ========= ========= ========= =========
Net income per
share - diluted $0.71 $0.75 $0.68 $1.46 $1.34
========= ========= ========= ========= =========
Cash dividends per
common share $0.163 $0.163 $0.152 $0.325 $0.305
=========================================================================
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
=======================================================================
(Unaudited) March 31 June 30 June 30
(In thousands) 2002 2002 2001
-----------------------------------------------------------------------
ASSETS
Loans, net of unearned
income $7,605,660 $7,729,147 $7,791,411
Allowance for loan losses (129,973) (129,973) (131,109)
------------- -------------- --------------
Net loans 7,475,687 7,599,174 7,660,302
------------- -------------- --------------
Investment securities:
Available for sale 3,487,252 3,460,586 2,283,513
Trading 14,456 31,517 21,409
Non-marketable 51,371 51,500 54,554
------------- -------------- --------------
Total investment
securities 3,553,079 3,543,603 2,359,476
------------- -------------- --------------
Federal funds sold and
securities purchased
under agreements
to resell 92,660 36,141 546,380
Cash and due from banks 558,793 610,625 664,863
Land, buildings and
equipment - net 322,546 330,869 292,932
Goodwill 43,941 43,224 46,310
Other intangible
assets - net 6,118 4,893 8,349
Other assets 214,948 136,202 160,793
------------- -------------- --------------
Total assets $12,267,772 $12,304,731 $11,739,405
============= ============== ==============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing
demand $1,378,651 $1,337,828 $1,154,334
Savings and interest
bearing demand 5,828,251 5,774,566 5,554,885
Time open and C.D.'s
of less than $100,000 2,101,581 2,030,683 2,283,035
Time open and C.D.'s
of $100,000 and over 655,057 690,975 531,600
------------- -------------- --------------
Total deposits 9,963,540 9,834,052 9,523,854
Federal funds purchased
and securities sold
under agreements
to repurchase 492,948 671,369 669,779
Long-term debt and
other borrowings 390,917 340,787 193,092
Other liabilities 117,256 90,894 133,695
------------- -------------- --------------
Total liabilities 10,964,661 10,937,102 10,520,420
------------- -------------- --------------
Stockholders' equity:
Preferred stock --- --- ---
Common stock 327,878 328,219 317,786
Capital surplus 210,517 210,637 149,409
Retained earnings 736,483 775,942 745,760
Treasury stock (1,541) (17,518) (22,129)
Other (2,154) (2,025) (2,141)
Accumulated other
comprehensive income 31,928 72,374 30,300
------------- -------------- --------------
Total stockholders'
equity 1,303,111 1,367,629 1,218,985
------------- -------------- --------------
Total liabilities and
stockholders' equity $12,267,772 $12,304,731 $11,739,405
=======================================================================
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCES
==========================================================================
(Unaudited) For the Three Months For the Six Months
(Dollars in thousands) Ended Ended
March 31 June 30 June 30 June 30 June 30
2002 2002 2001 2002 2001
-------------------------------------------------------------------------
Loans:
Business $2,381,993 $2,433,479 $2,649,699 $2,407,878 $2,661,946
Real estate
- construction 440,035 477,822 417,986 459,033 404,817
Real estate
- business 1,474,199 1,452,686 1,372,090 1,463,383 1,353,458
Real estate
- personal 1,276,174 1,247,701 1,356,383 1,261,859 1,372,314
Personal banking 1,557,521 1,594,365 1,603,979 1,576,045 1,604,556
Credit card 486,682 479,981 487,238 483,313 495,091
---------- ---------- ---------- ---------- ----------
Total loans 7,616,604 7,686,034 7,887,375 7,651,511 7,892,182
---------- ---------- ---------- ---------- ----------
Investment securities
(excluding unrealized
gains and losses):
Available for sale 3,513,032 3,362,663 2,130,816 3,437,432 1,970,516
Trading 7,866 13,298 15,699 10,597 17,477
Non-marketable 52,882 52,538 52,703 52,709 53,062
---------- ---------- ---------- ---------- ----------
Total investment
securities 3,573,780 3,428,499 2,199,218 3,500,738 2,041,055
---------- ---------- ---------- ---------- ----------
Federal funds sold
and securities
purchased under
agreements
to resell 124,706 89,793 586,178 107,153 585,168
---------- ---------- ---------- ---------- ----------
Total interest
earning assets 11,315,090 11,204,326 10,672,771 11,259,402 10,518,405
========== ========== ========== ========== ==========
Total assets 12,248,346 12,144,122 11,599,255 12,195,946 11,408,791
========== ========== ========== ========== ==========
Interest bearing
deposits:
Savings 339,561 362,536 328,252 351,112 316,526
Interest bearing
demand 5,705,492 5,757,529 5,039,600 5,731,654 4,977,535
Time open & C.D.'s
of less than
$100,000 2,146,024 2,074,133 2,284,637 2,109,880 2,227,889
Time open & C.D.'s
of $100,000
and over 633,190 686,203 529,716 659,843 499,098
---------- ---------- ---------- ---------- ----------
Total interest
bearing deposits 8,824,267 8,880,401 8,182,205 8,852,489 8,021,048
---------- ---------- ---------- ---------- ----------
Borrowings:
Federal funds purchased
and securities sold
under agreements
to repurchase 691,907 512,741 589,307 601,829 577,501
Long-term debt and
other borrowings 391,931 361,193 210,801 376,477 220,861
---------- ---------- ---------- ---------- ----------
Total borrowings 1,083,838 873,934 800,108 978,306 798,362
---------- ---------- ---------- ---------- ----------
Total interest
bearing
liabilities 9,908,105 9,754,335 8,982,313 9,830,795 8,819,410
========== ========== ========== ========== ==========
Non-interest
bearing
deposits 928,770 958,148 1,275,874 943,540 1,268,545
Realized
stockholders'
equity 1,251,148 1,286,964 1,177,070 1,269,155 1,163,724
Unrealized
securities gain
- net of tax 48,174 48,494 28,794 48,335 24,689
Net yield on interest
earning assets
(tax-equivalent basis) 4.34% 4.47% 4.44% 4.40% 4.52%
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