COMMERCE BANCSHARES, INC. REPORTS THIRD QUARTER EARNINGS
View the Third Quarter 2007 earnings release.
Commerce Bancshares, Inc. announced earnings of $.81 per share for the three months ended September 30, 2007, an increase of 5.2% compared to $.77 per share in the third quarter of 2006. Net income for the third quarter amounted to $55.9 million compared to $54.5 million in the same period last year. The return on average assets for the three months ended September 30, 2007 was 1.43%, the return on average equity was 15.1% and the efficiency ratio was 59.8%.
For the nine months ended September 30, 2007, earnings per share totaled $2.33 compared to $2.29 reported for the first nine months of last year. Net income amounted to $163.0 million in 2007 compared to $162.8 million in 2006. For the nine months of 2007, the return on average assets was 1.42%, and the return on average equity was 14.9%.
In making this announcement, David W. Kemper, Chairman and CEO, said, “We are pleased to report 5% growth in earnings per share and 9% growth in revenue per share compared to the same period last year. Earnings this quarter were driven by a relatively stable net interest margin, continued loan growth and solid results from our fee businesses, especially trust and bankcard which grew 11% and 9%, respectively. Non-interest expense continues to remain well controlled this year. Average loans increased 11% over the same period last year, driven by commercial and consumer loan growth.”
Mr. Kemper continued, “Despite weakness in the residential real estate sector, overall economic activity in our markets has led to continued loan growth. Asset quality has remained good with year-to-date net loan charge-offs totaling just .38% of average loans. Total non-accrual loans and foreclosed real estate increased $7.1 million from last quarter to $41.4 million as of September 30, 2007. Our allowance for loan losses totaled $133.6 million, or 1.28% of outstanding loans, which represents 515% of total non-accrual loans.”
Total assets at September 30, 2007 were $16.0 billion, total loans were $10.8 billion, and total deposits were $12.0 billion. On July 1, 2007, the Company completed its acquisition of Commerce Bank, Denver, Colorado with loans of $75 million and deposits of $72 million. Also during the quarter, the Company purchased approximately 650 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 approximately 360 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) | 6/30/07 | 9/30/07 | 9/30/06 |
|---|---|---|---|
| Non-Accrual Loans | $33,159 | $25,962 | $18,845 |
| Foreclosed Real Estate | $1,084 | $15,408 | $1,379 |
| Total Non-Performing Assets | $34,243 | $41,370 | $20,224 |
| Non-Performing Assets to Loans | .33% | .40% | .21% |
| Non-Performing Assets to Total Assets | .22% | .26% | .13% |
| Loans 90 Days & Over Past Due – Still Accruing | $21,087 | $19,227 | $16,251 |
This financial news release, including management’s discussion of third quarter 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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