Commerce Bancshares, Inc. announced earnings of $1.60 per share for the six months ended June 30, 2006, an increase of 10% compared to $1.46 per share during the same period in 2005. Net income for the first six months of 2006 amounted to $108.3 million compared with $104.2 million in the same period last year. The return on average assets for the first six months ended June 30, 2006 was 1.59%, and the return on average equity was 16.4%.
For the three months ended June 30, 2006, earnings per share totaled $.82, an increase of 6.5% compared with $.77 in the second quarter of 2005. Net income amounted to $55.3 million compared with $54.4 million in the same period last year and $52.9 million in the first quarter 2006. The return on average assets for the three months ended June 30, 2006 was 1.61% and the return on average equity was 16.6%. The efficiency ratio was 60.4%.
In making this announcement, David W. Kemper, Chairman & CEO, said, “We are pleased to report 10% earnings per share growth for the first six months of 2006. This resulted from overall revenue growth of 4%, coupled with good expense control and lower levels of loan losses. Continued improvement in the mix of assets on our balance sheet generated an increase of $1.4 million in net interest income, while non-interest income, excluding net securities gains, grew $14.5 million or 9.0% over the prior year. Non-interest income now comprises 41% of total revenue. During this period, average loans grew by 8% and this growth was funded by a combination of deposit growth and a reduction in our investment securities portfolio. Our net yield on earning assets improved by 12 basis points to 3.98%, despite a difficult interest rate environment.”
Mr. Kemper added, “Asset quality continued to remain strong in the second quarter, with annualized net loan charge-offs totaling .25% of average loans compared with .33% in the same quarter last year, mainly due to lower levels of losses in the credit card and personal banking loan portfolios. Our allowance for loan losses totaled $128.4 million, or 1.37% of total outstanding loans at the end of the second quarter.”
Total assets at June 30, 2006 were $14.3 billion, total loans were $9.4 billion, and total deposits were $11.0 billion. At June 30, 2006, total non-performing loans totaled $ 14.2 million or .15% of total loans. During the quarter, the Company announced the signing of a definitive agreement to acquire West Pointe Bancorp. Inc., Belleville, Illinois, a one bank holding company with assets of $477 million, loans of $256 million and deposits of $402 million. Also the Company announced plans to purchase the banking business of Boone National Savings and Loan Association, Columbia, Missouri which has total loans and deposits of $132 million and $108 million, respectively. It is expected the Boone transaction will be completed by the end of July while the West Pointe transaction will be completed prior to the end of the third quarter.
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 approximately 340 locations in Missouri, Illinois, and Kansas. The Company also has operating subsidiaries 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. |
