KANSAS CITY, Mo.–(BUSINESS WIRE)–Commerce Bancshares, Inc. announced earnings of $.96 per share for the three months ended September 30, 2023, compared to $.97 per share in the same quarter last year and $1.02 per share in the second quarter of 2023. Net income for the third quarter of 2023 amounted to $120.6 million, compared to $122.8 million in the third quarter of 2022 and $127.8 million in the prior quarter.
For the nine months ended September 30, 2023, earnings per share totaled $2.93, compared to $2.81 for the first nine months of 2022. Net income amounted to $367.8 million for the nine months ended September 30, 2023, compared to $356.8 million in the comparable period last year. For the year to date, the return on average assets was 1.53%, and the return on average equity was 18.42%.
“Our strong quarterly performance in this high-rate environment demonstrates the resilience of our operating model and the adaptability of our bank,” said John Kemper, President and Chief Executive Officer. “Our net interest margin declined only one basis point from the previous quarter, reflecting the impact of higher asset yields and the strength of our core deposits. Non-interest income comprised 36.5% of total revenue.”
On the balance sheet, Kemper added, “As planned, we decreased the excess liquidity position that was built through short-term brokered deposit funding and FHLB advances during the second quarter.
“Our liquidity and capital levels remain robust, and credit performance remains excellent, with non-accrual loans at .05% of total loans, the same level as the third quarter of last year.”
Third Quarter 2023 Financial Highlights:
- Net interest income was $248.5 million, a $991 thousand decrease from the prior quarter. The net yield on interest earning assets decreased 1 basis point to 3.11%.
- Non-interest income totaled $142.9 million, an increase of $4.4 million compared to the same quarter last year.
- Non-interest expense totaled $228.0 million, an increase of $15.1 million compared to the same quarter last year.
- Average loan balances totaled $17.0 billion, an increase of $299.3 million, or 1.8%, over the prior quarter.
- Total average available for sale debt securities decreased 6.9%, or $752.0 million, from the prior quarter to $10.2 billion, at fair value. During the third quarter of 2023, the unrealized loss on available for sale securities increased $177.4 million to $1.6 billion, at period end.
- Total average deposits increased $358.6 million, or 1.4%, compared to June 30, 2023. The average rate paid on interest bearing deposits in the current quarter was 1.76%.
- The ratio of annualized net loan charge-offs to average loans was .23% compared to .16% in the prior quarter.
- The allowance for credit losses on loans increased $3.6 million during the third quarter to $162.2 million, and at September 30, 2023, the ratio of the allowance for credit losses on loans to total loans was .95%, compared to .94% at June 30, 2023.
- Total assets at September 30, 2023 were $31.4 billion, a decrease of $1.5 billion, or 4.4%, from the prior quarter.
- For the quarter, the return on average assets was 1.49%, the return on average equity was 17.73%, and the efficiency ratio was 58.2%.
Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, investment management and securities brokerage. One of its subsidiaries, Commerce Bank, leverages nearly 160 years of proven strength and experience to help individuals and businesses solve financial challenges. In addition to offering payment solutions across the U.S., Commerce Bank currently operates full-service banking facilities across the Midwest including the St. Louis and Kansas City metropolitan areas, Springfield, Central Missouri, Central Illinois, Wichita, Tulsa, Oklahoma City, and Denver. It also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids. Commerce delivers high-touch service and sophisticated financial solutions at regional branches, commercial offices, ATMs, online, mobile and through a 24/7 customer service line.
This financial news release and the supplementary Earnings Highlights presentation are available on the Company’s website at https://investor.commercebank.com/news-info/financial-news-releases/default.aspx.
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES FINANCIAL HIGHLIGHTS |
|||||||||||
|
|
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||
|
(Unaudited) (Dollars in thousands, except per share data) |
|
Sep. 30, |
Jun. 30, |
Sep. 30, |
Sep. 30, |
Sep. 30, |
|||||
|
FINANCIAL SUMMARY |
|
|
|||||||||
|
Net interest income |
|
$248,547 |
|
$249,538 |
|
$246,373 |
|
$749,708 |
|
$687,544 |
|
|
Non-interest income |
|
142,949 |
|
147,605 |
|
138,514 |
|
428,166 |
|
409,710 |
|
|
Total revenue |
|
391,496 |
|
397,143 |
|
384,887 |
|
1,177,874 |
|
1,097,254 |
|
|
Investment securities gains (losses) |
|
4,298 |
|
3,392 |
|
3,410 |
|
7,384 |
|
11,602 |
|
|
Provision for credit losses |
|
11,645 |
|
6,471 |
|
15,290 |
|
29,572 |
|
12,594 |
|
|
Non-interest expense |
|
228,010 |
|
227,611 |
|
212,884 |
|
679,728 |
|
632,037 |
|
|
Income before taxes |
|
156,139 |
|
166,453 |
|
160,123 |
|
475,958 |
|
464,225 |
|
|
Income taxes |
|
33,439 |
|
35,990 |
|
33,936 |
|
102,242 |
|
97,859 |
|
|
Non-controlling interest expense |
|
2,104 |
|
2,674 |
|
3,364 |
|
5,879 |
|
9,595 |
|
|
Net income attributable to Commerce Bancshares, Inc. |
$120,596 |
|
$127,789 |
|
$122,823 |
|
$367,837 |
|
$356,771 |
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|||||
|
Net income — basic |
|
$0.96 |
|
$1.03 |
|
$0.97 |
|
$2.94 |
|
$2.81 |
|
|
Net income — diluted |
|
$0.96 |
|
$1.02 |
|
$0.97 |
|
$2.93 |
|
$2.81 |
|
|
Effective tax rate |
|
21.71 |
% |
21.97 |
% |
21.65 |
% |
21.75 |
% |
21.52 |
% |
|
Fully-taxable equivalent net interest income |
|
$250,962 |
|
$251,757 |
|
$248,737 |
|
$756,130 |
|
$695,140 |
|
|
Average total interest earning assets (1) |
|
$31,974,945 |
|
$32,412,084 |
|
$32,807,393 |
|
$ 31,986,696 |
|
$33,853,577 |
|
|
Diluted wtd. average shares outstanding |
|
123,817,943 |
|
124,007,300 |
|
125,116,585 |
|
124,026,459 |
|
125,887,632 |
|
|
|
|
|
|
|
|
|
|||||
|
RATIOS |
|
|
|
|
|
|
|||||
|
Average loans to deposits (2) |
|
66.39 |
% |
66.15 |
% |
56.40 |
% |
65.85 |
% |
54.05 |
% |
|
Return on total average assets |
|
1.49 |
|
1.56 |
|
1.48 |
|
1.53 |
|
1.39 |
|
|
Return on average equity (3) |
|
17.73 |
|
18.81 |
|
17.84 |
|
18.42 |
|
16.08 |
|
|
Non-interest income to total revenue |
|
36.51 |
|
37.17 |
|
35.99 |
|
36.35 |
|
37.34 |
|
|
Efficiency ratio (4) |
|
58.15 |
|
57.22 |
|
55.19 |
|
57.62 |
|
57.48 |
|
|
Net yield on interest earning assets |
|
3.11 |
|
3.12 |
|
3.01 |
|
3.16 |
|
2.75 |
|
|
|
|
|
|
|
|
|
|||||
|
EQUITY SUMMARY |
|
|
|
|
|
|
|||||
|
Cash dividends per share |
|
$.270 |
|
$.270 |
|
$.252 |
|
$.810 |
|
$.757 |
|
|
Cash dividends on common stock |
|
$33,657 |
|
$33,744 |
|
$31,740 |
|
$101,160 |
|
$95,818 |
|
|
Book value per share (5) |
|
$20.90 |
|
$21.53 |
|
$18.91 |
|
|
|
||
|
Market value per share (5) |
|
$47.98 |
|
$48.70 |
|
$63.01 |
|
|
|
||
|
High market value per share |
|
$54.99 |
|
$58.97 |
|
$70.45 |
|
|
|
||
|
Low market value per share |
|
$46.30 |
|
$45.55 |
|
$61.14 |
|
|
|
||
|
Common shares outstanding (5) |
|
124,367,765 |
|
124,734,830 |
|
125,329,198 |
|
|
|
||
|
Tangible common equity to tangible assets (6) |
|
7.78 |
% |
7.70 |
% |
6.80 |
% |
|
|
||
|
Tier I leverage ratio |
|
10.87 |
% |
10.46 |
% |
9.87 |
% |
|
|
||
|
|
|
|
|
|
|
|
|||||
|
OTHER QTD INFORMATION |
|
|
|
|
|
|
|||||
|
Number of bank/ATM locations |
|
266 |
|
272 |
|
277 |
|
|
|
||
|
Full-time equivalent employees |
|
4,714 |
|
4,680 |
|
4,595 |
|
|
|
||
| (1) |
Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities. |
| (2) |
Includes loans held for sale. |
| (3) |
Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity. |
| (4) |
The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue. |
| (5) |
As of period end. |
| (6) |
The tangible common equity ratio is a non-gaap ratio and is calculated as stockholders’ equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights). |
|
All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2022. |
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
|
(Unaudited) (In thousands, except per share data) |
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
|
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Sep. 30, |
Sep. 30, |
||||||||
|
Interest income |
|
$361,162 |
|
$348,663 |
|
$308,857 |
|
$286,377 |
|
$262,666 |
|
$1,018,682 |
|
$712,602 |
|
|
Interest expense |
|
112,615 |
|
99,125 |
|
57,234 |
|
31,736 |
|
16,293 |
|
268,974 |
|
25,058 |
|
|
Net interest income |
|
248,547 |
|
249,538 |
|
251,623 |
|
254,641 |
|
246,373 |
|
749,708 |
|
687,544 |
|
|
Provision for credit losses |
|
11,645 |
|
6,471 |
|
11,456 |
|
15,477 |
|
15,290 |
|
29,572 |
|
12,594 |
|
|
Net interest income after credit losses |
236,902 |
|
243,067 |
|
240,167 |
|
239,164 |
|
231,083 |
|
720,136 |
|
674,950 |
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|||||||
|
Bank card transaction fees |
|
46,899 |
|
49,725 |
|
46,654 |
|
44,588 |
|
45,638 |
|
143,278 |
|
131,556 |
|
|
Trust fees |
|
49,207 |
|
47,265 |
|
45,328 |
|
44,710 |
|
45,406 |
|
141,800 |
|
140,009 |
|
|
Deposit account charges and other fees |
23,090 |
|
22,633 |
|
21,752 |
|
21,989 |
|
24,521 |
|
67,475 |
|
72,392 |
|
|
|
Consumer brokerage services |
|
3,820 |
|
4,677 |
|
5,085 |
|
4,518 |
|
5,085 |
|
13,582 |
|
14,599 |
|
|
Capital market fees |
|
2,410 |
|
2,539 |
|
3,362 |
|
3,386 |
|
3,393 |
|
8,311 |
|
10,845 |
|
|
Loan fees and sales |
|
2,966 |
|
2,735 |
|
2,589 |
|
2,566 |
|
3,094 |
|
8,290 |
|
10,575 |
|
|
Other |
|
14,557 |
|
18,031 |
|
12,842 |
|
15,068 |
|
11,377 |
|
45,430 |
|
29,734 |
|
|
Total non-interest income |
|
142,949 |
|
147,605 |
|
137,612 |
|
136,825 |
|
138,514 |
|
428,166 |
|
409,710 |
|
|
INVESTMENT SECURITIES GAINS (LOSSES), NET |
4,298 |
|
3,392 |
|
(306 |
) |
8,904 |
|
3,410 |
|
7,384 |
|
11,602 |
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|||||||
|
Salaries and employee benefits |
|
146,805 |
|
145,429 |
|
144,373 |
|
138,458 |
|
137,393 |
|
436,607 |
|
415,589 |
|
|
Data processing and software |
|
30,744 |
|
28,719 |
|
28,154 |
|
27,991 |
|
28,050 |
|
87,617 |
|
82,701 |
|
|
Net occupancy |
|
13,948 |
|
12,995 |
|
12,759 |
|
11,774 |
|
12,544 |
|
39,702 |
|
37,343 |
|
|
Marketing |
|
6,167 |
|
6,368 |
|
5,471 |
|
5,419 |
|
6,228 |
|
18,006 |
|
18,408 |
|
|
Equipment |
|
4,697 |
|
4,864 |
|
4,850 |
|
5,021 |
|
5,036 |
|
14,411 |
|
14,338 |
|
|
Supplies and communication |
|
4,963 |
|
4,625 |
|
4,590 |
|
4,446 |
|
4,581 |
|
14,178 |
|
13,655 |
|
|
Other |
|
20,686 |
|
24,611 |
|
23,910 |
|
23,631 |
|
19,052 |
|
69,207 |
|
50,003 |
|
|
Total non-interest expense |
|
228,010 |
|
227,611 |
|
224,107 |
|
216,740 |
|
212,884 |
|
679,728 |
|
632,037 |
|
|
Income before income taxes |
|
156,139 |
|
166,453 |
|
153,366 |
|
168,153 |
|
160,123 |
|
475,958 |
|
464,225 |
|
|
Less income taxes |
|
33,439 |
|
35,990 |
|
32,813 |
|
34,499 |
|
33,936 |
|
102,242 |
|
97,859 |
|
|
Net income |
|
122,700 |
|
130,463 |
|
120,553 |
|
133,654 |
|
126,187 |
|
373,716 |
|
366,366 |
|
|
Less non-controlling interest expense (income) |
2,104 |
|
2,674 |
|
1,101 |
|
2,026 |
|
3,364 |
|
5,879 |
|
9,595 |
|
|
|
Net income attributable to Commerce Bancshares, Inc. |
$120,596 |
|
$127,789 |
|
$119,452 |
|
$131,628 |
|
$122,823 |
|
$367,837 |
|
$356,771 |
|
|
|
Net income per common share — basic |
$0.96 |
|
$1.03 |
|
$0.95 |
|
$1.05 |
|
$0.97 |
|
$2.94 |
|
$2.81 |
|
|
|
Net income per common share — diluted |
$0.96 |
|
$1.02 |
|
$0.95 |
|
$1.04 |
|
$0.97 |
|
$2.93 |
|
$2.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
OTHER INFORMATION |
|
|
|
|
|
|
|
||||||||
|
Return on total average assets |
|
1.49 |
% |
1.56 |
% |
1.54 |
% |
1.65 |
% |
1.48 |
% |
1.53 |
% |
1.39 |
% |
|
Return on average equity (1) |
17.73 |
|
18.81 |
|
18.75 |
|
21.88 |
|
17.84 |
|
18.42 |
|
16.08 |
|
|
|
Efficiency ratio (2) |
|
58.15 |
|
57.22 |
|
57.49 |
|
55.26 |
|
55.19 |
|
57.62 |
|
57.48 |
|
|
Effective tax rate |
|
21.71 |
|
21.97 |
|
21.55 |
|
20.77 |
|
21.65 |
|
21.75 |
|
21.52 |
|
|
Net yield on interest earning assets |
3.11 |
|
3.12 |
|
3.26 |
|
3.18 |
|
3.01 |
|
3.16 |
|
2.75 |
|
|
|
Fully-taxable equivalent net interest income |
|
$250,962 |
|
$251,757 |
|
$253,411 |
|
$256,675 |
|
$248,737 |
|
$756,130 |
|
$695,140 |
|
| (1) |
Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity. |
| (2) |
The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue. |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS – PERIOD END |
|||||||
|
(Unaudited) (In thousands) |
|
Sep. 30, |
Jun. 30, |
Sep. 30, |
|||
|
ASSETS |
|
|
|
|
|||
|
Loans |
|
|
|
|
|||
|
Business |
|
$ 5,908,330 |
|
$ 5,906,493 |
|
$ 5,528,895 |
|
|
Real estate — construction and land |
|
1,539,566 |
|
1,451,783 |
|
1,206,955 |
|
|
Real estate — business |
|
3,647,168 |
|
3,621,222 |
|
3,331,627 |
|
|
Real estate — personal |
|
3,024,639 |
|
2,980,599 |
|
2,862,519 |
|
|
Consumer |
|
2,125,804 |
|
2,110,605 |
|
2,116,371 |
|
|
Revolving home equity |
|
305,237 |
|
303,845 |
|
286,026 |
|
|
Consumer credit card |
|
574,829 |
|
574,755 |
|
563,349 |
|
|
Overdrafts |
|
3,753 |
|
7,237 |
|
3,216 |
|
|
Total loans |
|
17,129,326 |
|
16,956,539 |
|
15,898,958 |
|
|
Allowance for credit losses on loans |
|
(162,244 |
) |
(158,685 |
) |
(143,377 |
) |
|
Net loans |
|
16,967,082 |
|
16,797,854 |
|
15,755,581 |
|
|
Loans held for sale |
|
5,120 |
|
6,776 |
|
8,062 |
|
|
Investment securities: |
|
|
|
|
|||
|
Available for sale debt securities |
|
9,860,828 |
|
10,414,625 |
|
12,632,510 |
|
|
Trading debt securities |
|
35,564 |
|
29,412 |
|
39,222 |
|
|
Equity securities |
|
12,212 |
|
12,266 |
|
8,954 |
|
|
Other securities |
|
230,792 |
|
258,045 |
|
222,742 |
|
|
Total investment securities |
|
10,139,396 |
|
10,714,348 |
|
12,903,428 |
|
|
Federal funds sold |
|
2,735 |
|
2,750 |
|
14,020 |
|
|
Securities purchased under agreements to resell |
|
450,000 |
|
825,000 |
|
1,275,000 |
|
|
Interest earning deposits with banks |
|
1,847,641 |
|
2,568,695 |
|
642,943 |
|
|
Cash and due from banks |
|
358,010 |
|
366,699 |
|
344,178 |
|
|
Premises and equipment — net |
|
460,830 |
|
451,568 |
|
407,833 |
|
|
Goodwill |
|
146,539 |
|
146,371 |
|
138,921 |
|
|
Other intangible assets — net |
|
14,432 |
|
14,666 |
|
15,599 |
|
|
Other assets |
|
984,907 |
|
936,535 |
|
1,097,031 |
|
|
Total assets |
|
$ 31,376,692 |
|
$ 32,831,262 |
|
$ 32,602,596 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|||
|
Deposits: |
|
|
|
|
|||
|
Non-interest bearing |
|
$ 7,961,402 |
|
$ 8,198,849 |
|
$ 10,468,591 |
|
|
Savings, interest checking and money market |
|
14,154,275 |
|
14,418,974 |
|
16,014,487 |
|
|
Certificates of deposit of less than $100,000 |
|
1,210,169 |
|
1,543,424 |
|
391,145 |
|
|
Certificates of deposit of $100,000 and over |
|
1,764,611 |
|
1,708,197 |
|
597,093 |
|
|
Total deposits |
|
25,090,457 |
|
25,869,444 |
|
27,471,316 |
|
|
Federal funds purchased and securities sold under agreements to repurchase |
|
2,745,181 |
|
2,878,021 |
|
2,314,590 |
|
|
Other borrowings |
|
503,589 |
|
1,005,613 |
|
1,831 |
|
|
Other liabilities |
|
438,199 |
|
392,956 |
|
443,752 |
|
|
Total liabilities |
|
28,777,426 |
|
30,146,034 |
|
30,231,489 |
|
|
Stockholders’ equity: |
|
|
|
|
|||
|
Common stock |
|
629,319 |
|
629,319 |
|
610,804 |
|
|
Capital surplus |
|
2,924,211 |
|
2,921,365 |
|
2,683,631 |
|
|
Retained earnings |
|
298,297 |
|
211,358 |
|
353,446 |
|
|
Treasury stock |
|
(76,888 |
) |
(58,389 |
) |
(176,943 |
) |
|
Accumulated other comprehensive income (loss) |
|
(1,193,534 |
) |
(1,036,295 |
) |
(1,119,344 |
) |
|
Total stockholders’ equity |
|
2,581,405 |
|
2,667,358 |
|
2,351,594 |
|
|
Non-controlling interest |
|
17,861 |
|
17,870 |
|
19,513 |
|
|
Total equity |
|
2,599,266 |
|
2,685,228 |
|
2,371,107 |
|
|
Total liabilities and equity |
|
$ 31,376,692 |
|
$ 32,831,262 |
|
$ 32,602,596 |
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS |
||||||||||
|
(Unaudited) (In thousands) |
For the Three Months Ended |
|||||||||
|
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
||||||
|
ASSETS: |
|
|
|
|
|
|||||
|
Loans: |
|
|
|
|
|
|||||
|
Business |
$ 5,849,227 |
|
$ 5,757,388 |
|
$ 5,656,104 |
|
$ 5,478,241 |
|
$ 5,317,696 |
|
|
Real estate — construction and land |
1,508,850 |
|
1,450,196 |
|
1,410,835 |
|
1,268,900 |
|
1,288,721 |
|
|
Real estate — business |
3,642,010 |
|
3,540,851 |
|
3,478,382 |
|
3,300,697 |
|
3,258,128 |
|
|
Real estate — personal |
2,992,500 |
|
2,960,962 |
|
2,933,750 |
|
2,886,686 |
|
2,844,376 |
|
|
Consumer |
2,102,281 |
|
2,098,523 |
|
2,067,385 |
|
2,089,912 |
|
2,101,622 |
|
|
Revolving home equity |
304,055 |
|
300,623 |
|
296,748 |
|
293,681 |
|
280,923 |
|
|
Consumer credit card |
564,039 |
|
555,875 |
|
556,223 |
|
559,463 |
|
550,058 |
|
|
Overdrafts |
5,341 |
|
4,630 |
|
4,449 |
|
7,428 |
|
4,438 |
|
|
Total loans |
16,968,303 |
|
16,669,048 |
|
16,403,876 |
|
15,885,008 |
|
15,645,962 |
|
|
Allowance for credit losses on loans |
(158,335 |
) |
(159,068 |
) |
(150,117 |
) |
(143,285 |
) |
(137,833 |
) |
|
Net loans |
16,809,968 |
|
16,509,980 |
|
16,253,759 |
|
15,741,723 |
|
15,508,129 |
|
|
Loans held for sale |
5,714 |
|
5,957 |
|
5,708 |
|
6,567 |
|
7,170 |
|
|
Investment securities: |
|
|
|
|
|
|||||
|
U.S. government and federal agency obligations |
986,284 |
|
1,035,651 |
|
1,099,067 |
|
1,055,602 |
|
1,113,442 |
|
|
Government-sponsored enterprise obligations |
55,676 |
|
55,751 |
|
87,086 |
|
55,732 |
|
55,753 |
|
|
State and municipal obligations |
1,391,541 |
|
1,532,519 |
|
1,793,756 |
|
1,990,643 |
|
2,052,908 |
|
|
Mortgage-backed securities |
6,161,348 |
|
6,316,224 |
|
6,454,408 |
|
6,605,936 |
|
6,847,912 |
|
|
Asset-backed securities |
2,553,562 |
|
2,827,911 |
|
3,233,757 |
|
3,714,092 |
|
3,870,953 |
|
|
Other debt securities |
514,787 |
|
519,988 |
|
528,941 |
|
560,951 |
|
587,026 |
|
|
Unrealized gain (loss) on debt securities |
(1,458,141 |
) |
(1,331,002 |
) |
(1,387,196 |
) |
(1,582,061 |
) |
(1,064,534 |
) |
|
Total available for sale debt securities |
10,205,057 |
|
10,957,042 |
|
11,809,819 |
|
12,400,895 |
|
13,463,460 |
|
|
Trading debt securities |
35,044 |
|
46,493 |
|
45,757 |
|
44,626 |
|
35,621 |
|
|
Equity securities |
12,230 |
|
12,335 |
|
12,458 |
|
10,534 |
|
8,838 |
|
|
Other securities |
237,518 |
|
273,587 |
|
229,867 |
|
219,354 |
|
208,708 |
|
|
Total investment securities |
10,489,849 |
|
11,289,457 |
|
12,097,901 |
|
12,675,409 |
|
13,716,627 |
|
|
Federal funds sold |
2,722 |
|
7,484 |
|
38,978 |
|
27,683 |
|
13,486 |
|
|
Securities purchased under agreements to resell |
712,472 |
|
824,974 |
|
825,000 |
|
1,174,457 |
|
1,379,341 |
|
|
Interest earning deposits with banks |
2,337,744 |
|
2,284,162 |
|
809,935 |
|
640,039 |
|
980,273 |
|
|
Other assets |
1,750,222 |
|
1,941,340 |
|
1,376,551 |
|
1,339,554 |
|
1,256,498 |
|
|
Total assets |
$ 32,108,691 |
|
$ 32,863,354 |
|
$ 31,407,832 |
|
$ 31,605,432 |
|
$ 32,861,524 |
|
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
|
Non-interest bearing deposits |
$ 7,939,190 |
|
$ 8,224,475 |
|
$ 9,114,512 |
|
$ 10,360,834 |
|
$ 10,758,353 |
|
|
Savings |
1,436,149 |
|
1,516,887 |
|
1,550,215 |
|
1,567,113 |
|
1,595,857 |
|
|
Interest checking and money market |
13,048,199 |
|
12,918,399 |
|
13,265,485 |
|
13,693,974 |
|
14,423,713 |
|
|
Certificates of deposit of less than $100,000 |
1,423,965 |
|
1,075,110 |
|
415,367 |
|
388,304 |
|
397,071 |
|
|
Certificates of deposit of $100,000 and over |
1,718,126 |
|
1,472,208 |
|
903,393 |
|
596,703 |
|
578,158 |
|
|
Total deposits |
25,565,629 |
|
25,207,079 |
|
25,248,972 |
|
26,606,928 |
|
27,753,152 |
|
|
Borrowings: |
|
|
|
|
|
|||||
|
Federal funds purchased |
508,851 |
|
507,165 |
|
493,721 |
|
143,630 |
|
51,929 |
|
|
Securities sold under agreements to repurchase |
2,283,020 |
|
2,206,612 |
|
2,418,726 |
|
2,260,263 |
|
2,199,866 |
|
|
Other borrowings |
685,222 |
|
1,617,952 |
|
551,267 |
|
179,552 |
|
2,010 |
|
|
Total borrowings |
3,477,093 |
|
4,331,729 |
|
3,463,714 |
|
2,583,445 |
|
2,253,805 |
|
|
Other liabilities |
367,741 |
|
598,915 |
|
112,052 |
|
28,745 |
|
123,691 |
|
|
Total liabilities |
29,410,463 |
|
30,137,723 |
|
28,824,738 |
|
29,219,118 |
|
30,130,648 |
|
|
Equity |
2,698,228 |
|
2,725,631 |
|
2,583,094 |
|
2,386,314 |
|
2,730,876 |
|
|
Total liabilities and equity |
$ 32,108,691 |
|
$ 32,863,354 |
|
$ 31,407,832 |
|
$ 31,605,432 |
|
$ 32,861,524 |
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES |
||||||||||
|
(Unaudited) |
For the Three Months Ended |
|||||||||
|
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
||||||
|
ASSETS: |
|
|
|
|
|
|||||
|
Loans: |
|
|
|
|
|
|||||
|
Business (1) |
5.77 |
% |
5.58 |
% |
5.31 |
% |
4.68 |
% |
3.94 |
% |
|
Real estate — construction and land |
8.17 |
|
7.92 |
|
7.33 |
|
6.80 |
|
5.27 |
|
|
Real estate — business |
6.13 |
|
5.96 |
|
5.65 |
|
5.15 |
|
4.40 |
|
|
Real estate — personal |
3.73 |
|
3.68 |
|
3.61 |
|
3.45 |
|
3.36 |
|
|
Consumer |
5.97 |
|
5.63 |
|
5.31 |
|
4.77 |
|
4.17 |
|
|
Revolving home equity |
7.76 |
|
7.55 |
|
7.03 |
|
5.89 |
|
4.82 |
|
|
Consumer credit card |
13.77 |
|
13.77 |
|
13.68 |
|
12.64 |
|
12.05 |
|
|
Overdrafts |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total loans |
6.02 |
|
5.84 |
|
5.56 |
|
5.03 |
|
4.37 |
|
|
Loans held for sale |
10.55 |
|
10.17 |
|
10.30 |
|
10.09 |
|
8.80 |
|
|
Investment securities: |
|
|
|
|
|
|||||
|
U.S. government and federal agency obligations |
2.31 |
|
3.42 |
|
1.90 |
|
2.01 |
|
4.51 |
|
|
Government-sponsored enterprise obligations |
2.36 |
|
2.38 |
|
3.21 |
|
2.36 |
|
2.36 |
|
|
State and municipal obligations (1) |
1.95 |
|
2.04 |
|
2.26 |
|
2.29 |
|
2.27 |
|
|
Mortgage-backed securities |
2.06 |
|
2.09 |
|
2.06 |
|
1.88 |
|
1.93 |
|
|
Asset-backed securities |
2.20 |
|
2.08 |
|
2.01 |
|
1.96 |
|
1.62 |
|
|
Other debt securities |
1.75 |
|
1.86 |
|
1.93 |
|
1.89 |
|
1.93 |
|
|
Total available for sale debt securities |
2.08 |
|
2.19 |
|
2.07 |
|
1.97 |
|
2.09 |
|
|
Trading debt securities (1) |
5.11 |
|
4.53 |
|
4.59 |
|
3.81 |
|
2.74 |
|
|
Equity securities (1) |
23.06 |
|
23.25 |
|
23.24 |
|
28.44 |
|
27.11 |
|
|
Other securities (1) |
13.13 |
|
9.40 |
|
7.11 |
|
6.67 |
|
7.09 |
|
|
Total investment securities |
2.33 |
|
2.37 |
|
2.18 |
|
2.07 |
|
2.18 |
|
|
Federal funds sold |
6.56 |
|
5.63 |
|
5.09 |
|
4.27 |
|
2.77 |
|
|
Securities purchased under agreements to resell |
2.08 |
|
1.99 |
|
1.94 |
|
2.36 |
|
1.72 |
|
|
Interest earning deposits with banks |
5.39 |
|
5.14 |
|
4.67 |
|
3.69 |
|
2.25 |
|
|
Total interest earning assets |
4.51 |
|
4.34 |
|
4.00 |
|
3.59 |
|
3.21 |
|
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
|
Interest bearing deposits: |
|
|
|
|
|
|||||
|
Savings |
.05 |
|
.05 |
|
.05 |
|
.06 |
|
.04 |
|
|
Interest checking and money market |
1.33 |
|
.93 |
|
.61 |
|
.38 |
|
.20 |
|
|
Certificates of deposit of less than $100,000 |
4.32 |
|
3.78 |
|
1.39 |
|
.73 |
|
.41 |
|
|
Certificates of deposit of $100,000 and over |
4.37 |
|
3.93 |
|
2.98 |
|
1.42 |
|
.60 |
|
|
Total interest bearing deposits |
1.76 |
|
1.29 |
|
.71 |
|
.40 |
|
.21 |
|
|
Borrowings: |
|
|
|
|
|
|||||
|
Federal funds purchased |
5.33 |
|
5.06 |
|
4.59 |
|
3.56 |
|
2.41 |
|
|
Securities sold under agreements to repurchase |
3.20 |
|
3.09 |
|
2.93 |
|
2.29 |
|
1.37 |
|
|
Other borrowings |
5.30 |
|
5.24 |
|
4.94 |
|
4.02 |
|
1.78 |
|
|
Total borrowings |
3.93 |
|
4.13 |
|
3.49 |
|
2.48 |
|
1.39 |
|
|
Total interest bearing liabilities |
2.12 |
% |
1.87 |
% |
1.20 |
% |
.69 |
% |
.34 |
% |
|
|
|
|
|
|
|
|||||
|
Net yield on interest earning assets |
3.11 |
% |
3.12 |
% |
3.26 |
% |
3.18 |
% |
3.01 |
% |
| (1) |
Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%. |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CREDIT QUALITY |
|||||||||||||||
|
|
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
(Unaudited) (In thousands, except ratios) |
|
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Sep. 30, |
Sep. 30, |
|||||||
|
ALLOWANCE FOR CREDIT LOSSES ON LOANS |
|
|
|
|
|
|
|
|
|||||||
|
Balance at beginning of period |
|
$158,685 |
|
$159,317 |
|
$150,136 |
|
$143,377 |
|
$138,039 |
|
$150,136 |
|
$150,044 |
|
|
Provision for credit losses on loans |
|
13,343 |
|
5,864 |
|
15,948 |
|
12,404 |
|
10,150 |
|
35,155 |
|
6,751 |
|
|
Net charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|||||||
|
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Business |
|
2,613 |
|
165 |
|
230 |
|
496 |
|
461 |
|
3,008 |
|
557 |
|
|
Real estate — construction and land |
|
— |
|
(115 |
) |
— |
|
— |
|
— |
|
(115 |
) |
— |
|
|
Real estate — business |
|
(15 |
) |
(5 |
) |
(4 |
) |
(4 |
) |
(8 |
) |
(24 |
) |
(16 |
) |
|
|
|
2,598 |
|
45 |
|
226 |
|
492 |
|
453 |
|
2,869 |
|
541 |
|
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Consumer credit card |
|
4,716 |
|
4,687 |
|
4,325 |
|
3,467 |
|
2,882 |
|
13,728 |
|
9,191 |
|
|
Consumer |
|
1,797 |
|
1,273 |
|
1,275 |
|
1,522 |
|
827 |
|
4,345 |
|
2,268 |
|
|
Overdraft |
|
683 |
|
517 |
|
978 |
|
230 |
|
703 |
|
2,178 |
|
1,486 |
|
|
Real estate — personal |
|
(9 |
) |
(6 |
) |
(11 |
) |
(40 |
) |
(15 |
) |
(26 |
) |
(34 |
) |
|
Revolving home equity |
|
(1 |
) |
(20 |
) |
(26 |
) |
(26 |
) |
(38 |
) |
(47 |
) |
(34 |
) |
|
|
|
7,186 |
|
6,451 |
|
6,541 |
|
5,153 |
|
4,359 |
|
20,178 |
|
12,877 |
|
|
Total net loan charge-offs |
|
9,784 |
|
6,496 |
|
6,767 |
|
5,645 |
|
4,812 |
|
23,047 |
|
13,418 |
|
|
Balance at end of period |
|
$162,244 |
|
$158,685 |
|
$159,317 |
|
$150,136 |
|
$143,377 |
|
$162,244 |
|
$143,377 |
|
|
LIABILITY FOR UNFUNDED LENDING COMMITMENTS |
|
$27,537 |
|
$29,235 |
|
$28,628 |
|
$33,120 |
|
$30,047 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
|
NET CHARGE-OFF RATIOS (1) |
|
|
|
|
|
|
|
|
|||||||
|
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Business |
|
.18 |
% |
.01 |
% |
.02 |
% |
.04 |
% |
.03 |
% |
.07 |
% |
.01 |
% |
|
Real estate — construction and land |
|
— |
|
(.03 |
) |
— |
|
— |
|
— |
|
(.01 |
) |
— |
|
|
Real estate — business |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
.09 |
|
— |
|
.01 |
|
.02 |
|
.02 |
|
.04 |
|
.01 |
|
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Consumer credit card |
|
3.32 |
|
3.38 |
|
3.15 |
|
2.46 |
|
2.08 |
|
3.28 |
|
2.26 |
|
|
Consumer |
|
.34 |
|
.24 |
|
.25 |
|
.29 |
|
.16 |
|
.28 |
|
.15 |
|
|
Overdraft |
|
50.73 |
|
44.79 |
|
89.15 |
|
12.28 |
|
62.85 |
|
60.54 |
|
39.39 |
|
|
Real estate — personal |
|
— |
|
— |
|
— |
|
(.01 |
) |
— |
|
— |
|
— |
|
|
Revolving home equity |
|
— |
|
(.03 |
) |
(.04 |
) |
(.04 |
) |
(.05 |
) |
(.02 |
) |
(.02 |
) |
|
|
|
.48 |
|
.44 |
|
.45 |
|
.35 |
|
.30 |
|
.46 |
|
.30 |
|
|
Total |
|
.23 |
% |
.16 |
% |
.17 |
% |
.14 |
% |
.12 |
% |
.18 |
% |
.12 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||
|
CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|||||||
|
Non-accrual loans to total loans |
|
.05 |
% |
.04 |
% |
.05 |
% |
.05 |
% |
.05 |
% |
|
|
||
|
Allowance for credit losses on loans to total loans |
|
.95 |
|
.94 |
|
.96 |
|
.92 |
|
.90 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
|
NON-ACCRUAL AND PAST DUE LOANS |
|
|
|
|
|
|
|
|
|||||||
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|||||||
|
Business |
|
$6,602 |
|
$4,732 |
|
$6,361 |
|
$6,751 |
|
$5,645 |
|
|
|
||
|
Real estate — construction and land |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
||
|
Real estate — business |
|
76 |
|
153 |
|
171 |
|
189 |
|
149 |
|
|
|
||
|
Real estate — personal |
|
1,531 |
|
1,276 |
|
1,269 |
|
1,366 |
|
1,390 |
|
|
|
||
|
Total |
|
8,209 |
|
6,161 |
|
7,801 |
|
8,306 |
|
7,184 |
|
|
|
||
|
Loans past due 90 days and still accruing interest |
$18,580 |
|
$15,351 |
|
$14,800 |
|
$15,830 |
|
$12,538 |
|
|
|
|||
| (1) |
Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale). |
COMMERCE BANCSHARES, INC.
Management Discussion of Third Quarter Results
September 30, 2023
For the quarter ended September 30, 2023, net income amounted to $120.6 million, compared to $127.
Contacts
Matt Burkemper, Investor Relations
(314) 746-7485
www.commercebank.com
[email protected]
