COMMERCE BANCSHARES, INC. REPORTS FOURTH QUARTER AND 2007 EARNINGS
View the Fourth Quarter and 2007 earnings release.
Commerce Bancshares, Inc. announced earnings of $.60 per share for the three months ended December 31, 2007, a decrease of 21.1% compared to $.76 per share in the fourth quarter of 2006. Net income for the fourth quarter amounted to $43.7 million compared to $57.0 million in the same period last year. The current quarter included a pre-tax charge of $21.0 million related to the Company’s share of certain estimated litigation costs of VISA U.S.A., Inc. (VISA). Operating earnings per share, exclusive of this litigation charge, for the current quarter amounted to $.78, or an increase of 3% over last year. On an operating earnings basis, the return on average assets for the three months ended December 31, 2007 was 1.4%, the return on average equity was 14.9% and the efficiency ratio was 59.8%.
For the year ended December 31, 2007, earnings per share totaled $2.82 compared to $2.94 in 2006. Net income in 2007 amounted to $206.7 million compared to $219.8 million in 2006. Exclusive of the above mentioned litigation costs, operating net income in 2007 amounted to $219.9 million, or $3.00 per share.
In making this announcement, David W. Kemper, Chairman and CEO, said, “We are pleased to report a 3% growth in operating earnings per share and 9% growth in revenue per share this quarter compared to the same period last year. While we were required to expense our share of certain estimated VISA litigation costs this quarter, we expect significant future benefits from our proportionate ownership in that organization. Operating results this quarter were driven by a relatively stable net interest margin and continued loan growth, combined with solid increases in a number of our fee-based businesses. Bankcard and trust fees grew 11% and 10%, respectively. Exclusive of the VISA charge, non-interest expense was well controlled this quarter.”
Mr. Kemper continued, “While we experienced higher levels of net loan charge-offs in our consumer loan portfolios this quarter, overall credit quality remained good with net loan charge-offs for the year at .42% compared with .29% last year. Our allowance for loan losses totaled $133.6 million, or 1.26% of outstanding loans. Total non-performing assets decreased $8.0 million from last quarter to $33.4 million as of December 31, 2007. Our allowance for loan losses represented 677% of total non-accrual loans.”
Total assets at December 31, 2007 were $16.2 billion, total loans were $10.8 billion, and total deposits were $12.6 billion. Also during the quarter, the Company paid a 5% stock dividend for the 14th consecutive year.
Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The Company currently operates in over 350 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, venture capital, and real estate activities.
Summary of Non-Performing Assets and Past Due Loans:
| (Dollars in thousands) | 9/30/07 | 12/31/07 | 12/31/06 |
|---|---|---|---|
| Non-Accrual Loans | $25,962 | $19,739 | $16,708 |
| Foreclosed Real Estate | $15,408 | $13,678 | $1,515 |
| Total Non-Performing Assets | $41,370 | $33,417 | $18,223 |
| Non-Performing Assets to Loans | .40% | .32% | .19% |
| Non-Performing Assets to Total Assets | .26% | .21% | .12% |
| Loans 90 Days & Over Past Due – Still Accruing | $19,227 | $20,886 | $20,376 |
This financial news release, including management’s discussion of fourth quarter and 2007 results, is posted to the Company’s web site at: www.commercebank.com
For additional information contact:
Jeffery Aberdeen, Controller
PO Box 419248, Kansas City, MO
816-234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com†
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