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Commerce Bancshares, Inc. announced earnings of $.89 per share for the three months ended March 31, 2008, an increase of 27.1% compared to $.70 per share in the first quarter of 2007. Net income for the first quarter amounted to $64.2 million compared to $51.5 million in the same period last year. The return on average assets for the three months ended March 31, 2008 was 1.6%, the return on average equity was 16.5% and the efficiency ratio was 60.1%. The current quarter included a $22.2 million pre-tax cash gain on sale of VISA Inc. (VISA) stock and the reversal of certain VISA litigation charges totaling $8.8 million, on a pre-tax basis.
In making this announcement, David W. Kemper, Chairman and CEO, said, “Despite a difficult economic environment, we were pleased to report revenue growth of 8% this quarter compared to the same period last year. These higher revenues were the result of a 7% increase in our net interest income coupled with continued solid growth in non-interest income. Average loans increased 13% this quarter over the previous quarter, on an annualized basis, as demand remained strong for business loans. Core expense growth remained well controlled this quarter.”
Further, Mr. Kemper noted, “The Company also increased its provision for loan losses to $20.0 million this quarter compared with $14.1 million in the previous quarter and $8.2 million in the same period last year. During the quarter, the Company recorded non-cash impairment charges totaling $5.3 million on certain investment securities, foreclosed property and an office building held for sale.”
Mr. Kemper continued, “While we increased our loan loss reserves this quarter to reflect increasing risk in the broader economy, net loan charge-offs actually declined 15% from the previous quarter, reflecting lower net losses. Net loan charge-offs for the quarter totaled .44% compared with .53% in the previous quarter and .34% in the same quarter last year. Our allowance for loan losses totaled $141.7 million, or 1.30% of outstanding loans, up from $133.6 million last quarter. Total non-performing assets increased $2.4 million from last quarter to $35.8 million as of March 31, 2008. Our allowance for loan losses represented 562% of total non-accrual loans.”
Total assets at March 31, 2008 were $16.8 billion, total loans were $11.3 billion, and total deposits were $12.6 billion. Also during the quarter, the Company purchased 125 thousand shares of its common stock through its treasury stock buyback plan.
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 360 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, and private equity activities.
Summary of Non-Performing Assets and Past Due Loans
| (Dollars in thousands) |
12/31/07 |
3/31/08 |
3/31/07 |
| Non-Accrual Loans |
$19,739 |
$25,190 |
$17,022 |
| Foreclosed Real Estate |
$13,678 |
$10,639 |
$1,034 |
| Total Non-Performing Assets |
$33,417 |
$35,829 |
$18,056 |
| Non-Performing Assets to Loans |
.32% |
.33% |
.18% |
| Non-Performing Assets to Total Assets |
.21% |
.21% |
.12% |
| Loans 90 Days & Over Past Due — Still Accruing |
$20,886 |
$25,759 |
$19,566 |
This financial news release, including management’s discussion of first quarter results, is posted to the Company’s web site at www.commercebank.com.
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For additional information contact:
Jeffery Aberdeen, Controller
at PO Box 419248, Kansas City, MO
or by telephone at (816) 234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com
View the First Quarter 2008 earnings release.
Symbol: CBSH
Web Site: www.commercebank.com
E-mail: MyMoney@CommerceBank.com
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