COMMERCE BANCSHARES, INC. REPORTS FOURTH QUARTER EARNINGS PER SHARE OF $.58
Commerce Bancshares, Inc. announced earnings of $.58 per share for the three months ended December 31, 2008 compared to $.58 in the fourth quarter of last year. Net income for the fourth quarter of 2008 amounted to $43.8 million compared to $43.7 million in the fourth quarter of last year.
For the year ended December 31, 2008, earnings per share totaled $2.48 compared to $2.69 in 2007, a decrease of 7.8%. Net income amounted to $188.7 million in 2008 compared with $206.7 million in 2007. For the year, the return on average assets was 1.15%, and the return on average equity was 11.83%. At year end, the Tier I leverage ratio was 9.06% compared to 8.76% a year earlier.
In making this announcement, David W. Kemper, Chairman and CEO, said, “Our key objective last year was to navigate through the deteriorating economy and severe dislocations in the financial markets while continuing our long-term plan to build our franchise. In the face of these challenges, we strengthened our balance sheet while maintaining strong capital and excellent liquidity. This quarter we were pleased to report 14% growth in net interest income over the same quarter last year, driven by lower funding costs coupled with growth in earning assets. Also, while the effects of this difficult economy constrained growth in non-interest income, the Company still generated over $85 million of fee income representing 35% of total revenue. Non-interest expense also remained controlled.”
Mr. Kemper continued, “During the quarter we increased our allowance for loan losses by $16.6 million to $172.6 million. This allowance now represents 237% of total non-accrual loans and 1.53% of outstanding loans. Non-performing assets, consisting of non-accrual loans and foreclosed property, grew this quarter from $46.2 million to $79.1 million. The increase in non-performing assets this quarter was mainly the result of placing one large residential construction loan relationship within our geographical footprint on non-accrual status. We expect continuing weak economic conditions and deteriorating credit in 2009.”
Total assets at December 31, 2008 were $17.5 billion, total loans were $11.6 billion, and total deposits were $12.9 billion. During the fourth quarter the Company sold $369 million par value of auction rate securities in exchange for government guaranteed student loans and recorded a pre-tax gain of $7.9 million. Pre-tax impairment charges of $9.0 million were also taken on certain other loans held for sale. Also during the quarter, net loan charge-offs totaled $24.7 million, up from $18.7 million in the previous quarter, with 63% of these loan losses related to non-residential consumer loan products.
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 investment activities.
Summary of Non-Performing Assets and Past Due Loans:
(Dollars in thousands) |
9/30/08 |
12/31/08 |
12/31/07 |
|---|---|---|---|
Non-Accrual Loans |
$41,600 |
$72,896 |
$19,739 |
Foreclosed Real Estate |
$4,622 |
$6,181 |
$13,678 |
Total Non-Performing Assets |
$46,222 |
$79,077 |
$33,417 |
Non-Performing Assets to Loans |
.42% |
.70% |
.32% |
Non-Performing Assets to Total Assets |
.27% |
.45% |
.21% |
Loans 90 Days & Over Past Due – Still Accruing |
$31,878 |
$39,964 |
$20,886 |
This financial news release, including management’s discussion of fourth quarter results, is posted to the Company’s web site at www.commercebank.com.
About Commerce Bank
Commerce Bank, N.A. is a subsidiary of Commerce Bancshares, Inc. (NASDAQ: CBSH), a $17.5 billion regional bank holding company. For more than 140 years, Commerce Bank has been meeting the financial services needs of individuals and businesses. Commerce Bank provides a diversified line of financial services, including business and personal banking, wealth management and estate planning and investments through its subsidiary and affiliated companies. Commerce Bank currently operates in approximately 350 locations in Missouri, Kansas, Illinois, Oklahoma and Colorado. Commerce Bancshares also has operating subsidiaries involved in mortgage banking, leasing, credit-related insurance, venture capital and real estate activities.
For additional information contact:
Email: mymoney@commercebank.com†
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