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Commerce Bancshares, Inc. announced earnings of $.77 per share for the three months ended June 30, 2008, an increase of 2.7% compared to $.75 per share in the second quarter of 2007. Net income for the second quarter amounted to $56.0 million compared with $55.6 million in the same period last year. The return on average assets for the three months ended June 30, 2008 was 1.37%, and the return on average equity was 14.1%.
For the six months ended June 30, 2008, earnings per share totaled $1.66 compared to $1.45 for the first six months of last year. Net income amounted to $120.1 million in 2008 compared with $107.1 million in 2007. For the six months of 2008, the return on average assets was 1.48%, and the return on average equity was 15.3%.
In announcing these results, David W. Kemper, Chairman and CEO, said, “While economic conditions remain challenging, we are pleased to report solid revenue growth this quarter. Net interest income grew by 8% over the same quarter last year as a result of increases in both loans and deposits, and a stronger net interest margin. Additionally, during the second quarter bank card fees increased 14% with debit, merchant and corporate card fees each experiencing double-digit growth. Exclusive of the reversal of VISA litigation charges reported in the first quarter, non-interest expenses in the current quarter were down 1.4% compared to the prior quarter, and remain well controlled.”
Mr. Kemper continued, “In this difficult economic environment, we have focused on maintaining adequate levels of liquidity and capital while closely monitoring and controlling credit costs. Compared to a year ago, shareholders’ equity has increased 10.1% resulting in a tangible equity to assets ratio of 8.7%; overall liquidity remains solid. Also, while net non-mortgage consumer loan losses have increased significantly over the same quarter last year, business, construction and business real estate loan losses have remained at relatively low levels. Non-accrual loans grew moderately this quarter to $29.2 million, but still represent only .26% of outstanding loans. During the quarter, we increased our allowance for loan losses to $145.2 million, which is 498% of total non-accrual loans. The allowance for loan losses has increased 9.2% compared to a year ago, and is now 1.31% of outstanding loans.”
Total assets at June 30, 2008 were $17.0 billion, total loans were $11.4 billion, and total deposits were $12.5 billion. The current quarter included a $6.9 million pre-tax gain on the sale of a small branch in southeast Kansas.
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) |
3/31/08 |
6/30/08 |
6/30/07 |
| Non-Accrual Loans |
$25,190 |
$29,184 |
$33,159 |
| Foreclosed Real Estate |
$10,639 |
$7,525 |
$1,084 |
| Total Non-Performing Assets |
$35,829 |
$36,709 |
$34,243 |
| Non-Performing Assets to Loans |
.33% |
.33% |
.33% |
| Non-Performing Assets to Total Assets |
.21% |
.22% |
.22% |
| Loans 90 Days & Over Past Due — Still Accruing |
$25,759 |
$26,293 |
$21,929 |
This financial news release, including management’s discussion of second 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 Second Quarter 2008 earnings release.
Symbol: CBSH
Web Site: www.commercebank.com
E-mail: MyMoney@CommerceBank.com
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