COMMERCE BANCSHARES, INC. REPORTS RECORD EARNINGS FOR THE FIRST NINE MONTHS 2003
Commerce Bancshares, Inc. announced record earnings of $2.22 per share for the first nine months ended September 30, 2003, an increase of 6.2% compared to $2.09 per share during the same period in 2002. Net income amounted to $148.7 million in 2003, compared with $145.4 million in 2002. During this period the return on average assets was 1.48%, the return on equity was 13.7% and the efficiency ratio was 59.5%.
Net income for the third quarter 2003 amounted to $51.0 million compared with $50.4 million in the same period last year. Earnings per share for this same period totaled $.77 compared with $.73 in the same quarter last year. For the quarter, the return on average equity was 13.9% and the return on assets was 1.49%.
In making this announcement, David W. Kemper, Chairman and CEO, said, "We are pleased to report record earnings both for the third quarter and for the first nine months of the year. The increase in net income during the third quarter was mainly the result of growth in non-interest income of 11% coupled with continued solid expense control. Compared to the third quarter last year, non-interest expense increased only 3.9%, and actually declined 1.5% when compared to the second quarter of this year. A sluggish economy, low short-term interest rates and weak commercial loan demand continue to put pressure on net interest income. Compared to the third quarter of 2002, average loans grew 2.9% and deposits grew 2.8%; however, net interest income declined 3.8%."
Mr. Kemper added, "Asset quality remains good and exceeds peer averages with net charge-offs for the third quarter at .48% of average loans and the reserve for loan losses at 1.67% of outstanding loans."
Total assets at September 30, 2003 were $13.6 billion, total loans were $7.9 billion, and total deposits were $10.0 billion. At September 30, 2003, the allowance for loan losses totaled $133 million and was 410% of non-performing loans. During the quarter, the Company's Board of Directors approved a 36.4% increase in its regular quarterly cash dividend to shareholders.
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 330 banking 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 third quarter results. To see this information please visit our web site at www.commercebank.com.
For further information contact:
Jeffery Aberdeen, Controller
P.O. Box 419248
Kansas City, MO 64141-6248
(816) 234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com
| (Amounts in thousands) |
6/30/03
|
9/30/03
|
9/30/02
|
| Non-Accrual Loans |
$30,444
|
$32,372
|
$26,701
|
| Foreclosed Real Estate |
$1,836
|
$2,036
|
$1,679
|
| Total Non-Performing Assets |
$32,280
|
$34,408
|
$28,380
|
| Non-Performing Assets to Loans |
.40%
|
.43%
|
.36%
|
| Non-Performing Assets to Total Assets |
.23%
|
.25%
|
.22%
|
| Loans 90 Days & Over Past Due — Still Accruing |
$20,232
|
$19,100
|
$23,435
|
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Symbol: CBSH
Web Site: www.commercebank.com
E-mail: MyMoney@CommerceBank.com
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