Commerce Bancshares, Inc. Reports Third Quarter Earnings Per Share Growth of 14%.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)--Oct. 12, 2000 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 $.74 per share for the three months ended September September: see month. 30, 2000, an increase of 14% compared to $.65 per share in 1999. Total earnings for the third quarter amounted to $45.5 million compared with $41.4 million in the same period last year. For the quarter, the return on realized equity was 16%, while 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% compared with 1.49% in the prior year. The efficiency ratio for the quarter amounted to 58.6%. For the first nine months ended September 30, 2000, earnings per share grew to $2.14, an increase of 13%, compared with $1.89 in 1999. Earnings amounted to $132.4 million compared with $121.9 million for 1999, an increase of 9%, and the return on realized equity totaled 16%. In making this announcement, 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" growth in earnings per share. Our Company's strong financial performance is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of continued favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. growth in our net interest margin. Stable funding costs, coupled with loan growth of more than 9% through the first nine months compared with last year, has allowed our margin to continue at a rate of 4.75%. Non-interest income for the first nine months and for the third quarter of this year grew by 5% and 13%, respectively, over the previous year due to growth in credit card fees and strong results from our venture capital operation. Core non-interest expense continued to be well controlled with increases during the quarter and for the first nine months of less than 2%." Mr. Kemper added, "Asset quality has remained strong all year with net charge-offs for the first nine months of 2000 amounting to .37% of average loans compared to .40% in the previous year. Additionally, as loans have grown by over $310 million this year, we have increased our loan loss reserve by $5.4 million to $128 million and maintained our reserve for loan losses at 1.63% of outstanding loans." Total assets at September 30, 2000 were $11.0 billion, total loans were $7.9 billion, and total deposits were $8.8 billion. At September 30, 2000, non-performing assets totaled $46.7 million or .43% of total 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 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, and real estate activities. Posted to the Company's web site is management's discussion of third quarter results. To see this information please visit our web site at www.commercebank.com.
(Amounts in thousands) 6/30/00 9/30/00 9/30/99
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Non-Accrual Loans $15,544 $14,640 $11,867
Loans 90 days & Over Past
Due - still accruing $18,250 $30,883 $27,270
Foreclosed Real Estate $1,227 $1,185 $1,459
Total Non-Performing
Assets $35,021 $46,708 $40,596
Ratio to Total Loans .45% .59% .55%
Ratio to Total Assets .31% .43% .37%
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COMMERCE BANCSHARES, INC.
FINANCIAL HIGHLIGHTS
For the For the
Three Months Ended Nine Months Ended
June 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
(Unaudited) 2000 2000 1999 2000 1999
INCOME AND EXPENSE
(In thousands)
Net interest income $121,010 $120,684 $118,992 $360,887 $346,228
Taxable equivalent
net interest income 121,840 21,470 119,934 363,197 349,259
Non-interest income 63,991 64,182 56,733 184,969 175,625
Provision for loan
losses 10,211 8,216 8,293 27,092 25,584
Non-interest expense 105,598 110,065 104,666 320,623 311,974
Net income 45,603 45,493 41,404 132,351 21,860
Cash dividends 9,451 9,332 8,979 28,372 27,144
Net total loan
charge-offs 7,990 6,785 7,279 21,679 21,437
Net business
charge-offs 1,991 1,047 1,901 3,288 3,967
Net credit card
charge-offs 3,997 3,790 3,606 11,937 12,234
Net other personal
charge-offs 2,002 1,948 1,772 6,454 5,236
Per share:
Net income - basic $0.75 $0.75 $0.66 $2.16 $1.92
Net income - diluted $0.74 $0.74 $0.65 $2.14 $1.89
Cash dividends $0.155 $0.155 $0.143 $0.465 $0.429
Diluted wtd. average 61,876 61,178 63,906 61,893 64,473
shares o/s
RATIOS
Average loans to
deposits 86.65% 88.45% 79.45% 86.55% 76.79%
Return on total
average assets 1.65% 1.65% 1.49% 1.60% 1.47%
Return on average
realized
stockholders'
equity 16.71% 16.35% 15.53% 16.11% 15.58%
Return on total
average
stockholders'
equity 16.79% 16.42% 15.27% 16.19% 15.11%
Efficiency ratio 56.14% 58.56% 58.35% 57.71% 58.67%
AT PERIOD END
Book value per share
based on realized
stockholders'
equity $18.13 $18.54 $16.94
Book value per share
based on total
stockholders'
equity $17.99 $18.62 $17.12
Market value per
share $29.75 $36.81 $33.69
Allowance for loan
losses as a
percentage of loans 1.62% 1.63% 1.63%
Tier I leverage
ratio 9.42% 9.68% 9.08%
Common shares
outstanding 60,883,503 60,174,035 62,852,560
Shareholders of
record 5,567 5,463 5,705
Number of bank/ATM
locations 337 333 327
Number of bank
charters 4 4 4
Full-time equivalent 5,121 5,095 5,313
employees
OTHER YTD
INFORMATION Sept. 30 Sept. 30
2000 1999
High market value
per share $37.63 $41.55
Low market value
per share $26.38 $32.20
COMMERCE BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) For the For the
(In thousands, except Three Months Ended Nine Months Ended
per share data)
June 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
2000 2000 1999 2000 1999
INTEREST INCOME
Interest and fees on
loans $164,655 $170,387 $146,684 $491,760 $423,723
Interest on
investment
securities 34,139 32,186 40,445 103,327 122,538
Interest on federal
funds sold and
securities
purchased under
agreements to
resell 3,678 4,198 2,283 10,986 11,804
Total interest
income 202,472 206,771 189,412 606,073 558,065
INTEREST EXPENSE
Interest on
deposits:
Savings and interest
bearing demand 37,099 38,453 32,932 111,053 98,019
Time open and C.D.'s
of less than
$100,000 26,813 28,736 26,639 82,124 83,244
Time open and C.D.'s
of $100,000 and
over 4,606 4,584 3,468 13,052 10,921
Interest on other
borrowings 12,944 14,314 7,381 38,957 19,653
Total interest
expense 81,462 86,087 70,420 245,186 211,837
Net interest income 121,010 120,684 118,992 360,887 346,228
Provision for loan
losses 10,211 8,216 8,293 27,092 25,584
Net interest income
after provision for
loan losses 110,799 112,468 110,699 333,795 320,644
NON-INTEREST INCOME
Trust fees 14,353 14,448 13,727 43,035 41,851
Deposit account
charges and other
fees 17,909 17,974 17,602 52,465 50,952
Credit card
transaction fees 12,362 12,895 10,999 36,449 30,906
Trading account
profits and
commissions 2,325 1,798 2,518 6,508 7,923
Net gains on
securities
transactions 506 305 - 810 993
Other 16,536 16,762 11,887 45,702 43,000
Total non-interest
income 63,991 64,182 56,733 184,969 175,625
NON-INTEREST EXPENSE
Salaries and
employee benefits 54,963 55,107 53,183 164,933 160,577
Net occupancy 7,374 7,794 7,240 22,645 20,726
Equipment 5,298 5,438 4,394 15,875 15,049
Supplies and
communication 8,062 8,660 8,372 25,319 24,918
Data processing 9,579 9,779 9,327 28,398 27,320
Marketing 3,319 2,888 3,445 9,357 9,611
Goodwill and core
deposit 2,018 1,984 2,129 6,057 6,395
Other 14,985 18,415 16,576 48,039 47,378
Total non-interest
expense 105,598 110,065 104,666 320,623 311,974
Income before income
taxes 69,192 66,585 62,766 198,141 184,295
Less income taxes 23,589 21,092 21,362 65,790 62,435
NET INCOME $45,603 $45,493 $41,404 $132,351 $121,860
Net income per
share - basic $0.75 $0.75 $0.66 $2.16 $1.92
Net income per
share - diluted $0.74 $0.74 $0.65 $2.14 $1.89
Cash dividends per
common share $0.155 $0.155 $0.143 $0.465 $0.429
COMMERCE BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited) June 30 Sept. 30 Sept. 30
(In thousands) 2000 2000 1999
ASSETS
Loans, net of unearned
income $7,841,876 $7,889,963 $7,422,270
Allowance for loan
losses (127,024) (128,455) (121,239)
Net loans 7,714,852 7,761,508 7,301,031
Investment securities:
Available for sale 2,074,557 1,959,173 2,592,299
Trading account 6,567 23,209 14,866
Other non-marketable 63,989 55,068 30,958
Total investment
securities 2,145,113 2,037,450 2,638,123
Federal funds sold and
securities purchased
under agreements to
resell 271,958 195,250 167,836
Cash and due from
banks 641,550 532,293 604,315
Land, buildings and
equipment - net 244,231 248,964 230,750
Goodwill and core
deposit premium - net 64,135 60,223 70,614
Other assets 147,124 127,893 104,071
Total assets $11,228,963 $10,963,581 $11,116,740
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing
demand $1,564,050 $1,409,185 $1,570,245
Savings and interest
bearing demand 5,103,268 4,991,254 5,255,619
Time open and C.D.'s
of less than $100,000 2,050,193 2,050,875 2,135,704
Time open and C.D.'s
of $100,000 and over 339,705 324,860 283,030
Total deposits 9,057,216 8,776,174 9,244,598
Federal funds
purchased and
securities sold under
agreements to
repurchase 865,920 816,768 712,778
Long-term debt and
other borrowings 125,164 125,916 25,975
Other liabilities 85,128 124,501 57,624
Total liabilities 10,133,428 9,843,359 10,040,975
Stockholders' equity:
Preferred stock
--- --- ---
Common stock 312,140 312,140 306,763
Capital surplus 128,691 128,333 101,067
Retained earnings 710,564 746,725 718,972
Treasury stock (46,522) (70,624) (61,211)
Unrealized securities
gain (loss) - net of
tax (8,059) 4,869 11,070
Other (1,279) (1,221) (896)
Total stockholders'
equity 1,095,535 1,120,222 1,075,765
Total liabilities and
stockholders' equity $11,228,963 $10,963,581 $11,116,740
COMMERCE BANCSHARES, INC.
AVERAGE BALANCES
For the For the
Three Months Ended Nine Months Ended
(Unaudited) June 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
(Dollars in thousands) 2000 2000 1999 2000 1999
Loans:
Business $2,654,752 2,622,781 2,455,461 2,617,277 2,391,342
Construction and
development 385,844 396,781 351,832 383,366 352,174
Real estate -
business 1,272,207 1,257,970 1,087,146 1,265,537 1,045,227
Real estate -
personal 1,428,110 1,433,468 1,333,624 1,418,408 1,330,874
Personal banking 1,588,889 1,618,746 1,598,313 1,591,185 1,504,364
Credit card 489,877 498,299 500,097 496,388 500,646
Total loans 7,819,679 7,828,045 7,326,473 7,772,161 7,124,627
Investment
securities
(excluding
unrealized gains
and losses):
Available for sale 2,163,803 2,010,645 2,638,699 2,183,751 2,678,569
Trading account 9,501 11,724 10,821 11,047 13,499
Other non-marketable 53,021 64,850 33,666 50,569 33,172
Total investment
securities 2,226,325 2,087,219 2,683,186 2,245,367 2,725,240
Federal funds sold
and securities
purchased under
agreements to
resell 228,834 249,194 170,238 231,965 320,777
Total interest
earning assets 10,274,838 10,164,458 10,179,897 10,249,493 10,170,644
Total assets 11,094,870 10,964,386 11,061,559 11,066,581 11,093,022
Interest bearing
deposits:
Savings 327,859 314,346 339,570 321,402 340,522
Interest bearing
demand 4,971,592 4,841,321 5,095,865 4,925,498 5,079,663
Time open & C.D.'s
of less than
$100,000 2,065,931 2,049,438 2,144,504 2,070,487 2,201,116
Time open & C.D.'s
of $100,000
and over 323,329 333,625 285,193 321,805 293,183
Total interest
bearing deposits 7,688,711 7,538,730 7,865,132 7,639,192 7,914,484
Borrowings:
Federal funds
purchased and
securities sold
under agreements to
repurchase 803,718 795,712 627,362 826,073 586,877
Long-term debt and
other borrowings 84,597 125,091 26,626 78,576 26,667
Total borrowings 888,315 920,803 653,988 904,649 613,544
Total interest
bearing
liabilities 8,577,026 8,459,533 8,519,120 8,543,841 8,528,028
Non-interest
bearing deposits 1,335,479 1,311,248 1,355,799 1,341,155 1,363,511
Realized
stockholders'
equity 1,097,424 1,106,924 1,057,932 1,097,616 1,045,911
Unrealized
securities
gain (loss) - net
of tax (5,336) (4,544) 18,155 (5,345) 32,472
Net yield on
interest earning
assets
(tax-equivalent
basis) 4.77% 4.75% 4.67% 4.73% 4.59%
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