KANSAS CITY, Mo.–(BUSINESS WIRE)–Commerce Bancshares, Inc. announced earnings of $.84 per share for the three months ended December 31, 2023, compared to $1.00 per share in the same quarter last year and $.92 per share in the third quarter of 2023. Net income for the fourth quarter of 2023 amounted to $109.2 million, compared to $131.6 million in the fourth quarter of 2022 and $120.6 million in the prior quarter.
“We are pleased with our fourth quarter results,» said John Kemper, President and Chief Executive Officer. “These results reflect the strength of our core deposit base, the impact of higher earning asset yields, and the contribution from key non-interest income categories, notably trust, bank card and deposit fees. Net interest income was generally flat to the previous quarter, while the net interest margin expanded six basis points. Non-interest income comprised 36.8% of total revenue. Our results included a one-time FDIC special assessment of $16 million.
“On the balance sheet,” Kemper added, “the final tranches of FHLB advances and brokered deposits matured during the quarter as planned. More than offsetting these brokered deposit maturities, we saw deposit growth across our three business segments of $674 million, resulting in a period end net deposit increase of $273 million.
“We continue to maintain ample levels of liquidity and capital, which positions us well moving into 2024. Book value per share increased 14.4% during the quarter as interest rates declined. Credit quality of the loan portfolio remains strong with non-accrual loans at .04% of total loans, down one basis point from the previous quarter and prior year.”
Fourth Quarter 2023 Financial Highlights:
- Net interest income was $248.4 million, a $126 thousand decrease from the prior quarter. The net yield on interest earning assets increased 6 basis points to 3.17%.
- Non-interest income totaled $144.9 million, an increase of $8.1 million compared to the same quarter last year.
- Non-interest expense totaled $251.3 million, an increase of $34.5 million compared to the same quarter last year, mostly due to a $16.0 million accrual for a one-time FDIC insurance special assessment.
- Average loan balances totaled $17.1 billion, an increase of $89.8 million, or .5%, over the prior quarter.
- Total average available for sale debt securities decreased 6.2%, or $633.9 million, from the prior quarter to $9.6 billion, at fair value. During the fourth quarter of 2023, the unrealized loss on available for sale debt securities decreased $376.5 million to $1.2 billion, at period end.
- Total average deposits decreased $356.2 million, or 1.4%, compared to the prior quarter, which reflected a payoff of the last tranche of brokered deposits issued during 2023. The average rate paid on interest bearing deposits in the current quarter was 1.93%.
- The ratio of annualized net loan charge-offs to average loans was .19% compared to .23% in the prior quarter.
- The allowance for credit losses on loans increased $151 thousand during the fourth quarter to $162.4 million, and the ratio of the allowance for credit losses on loans to total loans was .94% at December 31, 2023, compared to .95% at September 30, 2023.
- Total assets at December 31, 2023 were $31.7 billion, an increase of $324.4 million, or 1.0%, over the prior quarter.
- For the quarter, the return on average assets was 1.38%, the return on average equity was 16.48%, and the efficiency ratio was 63.8%.
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 Year Ended |
||||||||
|
(Unaudited) (Dollars in thousands, except per share data) |
|
Dec. 31, 2023 |
Sep. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||||
|
FINANCIAL SUMMARY |
|
|
|||||||||
|
Net interest income |
|
$248,421 |
|
$248,547 |
|
$254,641 |
|
$998,129 |
|
$942,185 |
|
|
Non-interest income |
|
144,879 |
|
142,949 |
|
136,825 |
|
573,045 |
|
546,535 |
|
|
Total revenue |
|
393,300 |
|
391,496 |
|
391,466 |
|
1,571,174 |
|
1,488,720 |
|
|
Investment securities gains (losses) |
|
7,601 |
|
4,298 |
|
8,904 |
|
14,985 |
|
20,506 |
|
|
Provision for credit losses |
|
5,879 |
|
11,645 |
|
15,477 |
|
35,451 |
|
28,071 |
|
|
Non-interest expense |
|
251,254 |
|
228,010 |
|
216,740 |
|
930,982 |
|
848,777 |
|
|
Income before taxes |
|
143,768 |
|
156,139 |
|
168,153 |
|
619,726 |
|
632,378 |
|
|
Income taxes |
|
32,307 |
|
33,439 |
|
34,499 |
|
134,549 |
|
132,358 |
|
|
Non-controlling interest expense |
|
2,238 |
|
2,104 |
|
2,026 |
|
8,117 |
|
11,621 |
|
|
Net income attributable to Commerce Bancshares, Inc. |
$109,223 |
|
$120,596 |
|
$131,628 |
|
$477,060 |
|
$488,399 |
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|||||
|
Net income — basic |
|
$0.84 |
|
$0.92 |
|
$1.00 |
|
$3.64 |
|
$3.68 |
|
|
Net income — diluted |
|
$0.84 |
|
$0.92 |
|
$1.00 |
|
$3.64 |
|
$3.67 |
|
|
Effective tax rate |
|
22.83 |
% |
21.71 |
% |
20.77 |
% |
22.00 |
% |
21.32 |
% |
|
Fully-taxable equivalent net interest income |
|
$250,547 |
|
$250,962 |
|
$256,675 |
|
$1,006,677 |
|
$951,815 |
|
|
Average total interest earning assets (1) |
|
$31,340,958 |
|
$31,974,945 |
|
$31,991,224 |
|
$ 31,823,935 |
|
$33,384,162 |
|
|
Diluted wtd. average shares outstanding |
|
129,608,322 |
|
130,008,840 |
|
130,818,789 |
|
130,071,644 |
|
131,838,406 |
|
|
RATIOS |
|
|
|
|
|
|
|||||
|
Average loans to deposits (2) |
|
67.69 |
% |
66.39 |
% |
59.73 |
% |
66.31 |
% |
55.41 |
% |
|
Return on total average assets |
|
1.38 |
|
1.49 |
|
1.65 |
|
1.49 |
|
1.45 |
|
|
Return on average equity (3) |
|
16.48 |
|
17.73 |
|
21.88 |
|
17.94 |
|
17.31 |
|
|
Non-interest income to total revenue |
|
36.84 |
|
36.51 |
|
34.95 |
|
36.47 |
|
36.71 |
|
|
Efficiency ratio (4) |
|
63.80 |
|
58.15 |
|
55.26 |
|
59.17 |
|
56.90 |
|
|
Net yield on interest earning assets |
|
3.17 |
|
3.11 |
|
3.18 |
|
3.16 |
|
2.85 |
|
|
EQUITY SUMMARY |
|
|
|
|
|
|
|||||
|
Cash dividends per share |
|
$.257 |
|
$.257 |
|
$.240 |
|
$1.029 |
|
$.961 |
|
|
Cash dividends on common stock |
|
$33,574 |
|
$33,657 |
|
$31,648 |
|
$134,734 |
|
$127,466 |
|
|
Book value per share (5) |
|
$22.77 |
|
$19.90 |
|
$18.90 |
|
|
|
||
|
Market value per share (5) |
|
$53.41 |
|
$45.70 |
|
$64.83 |
|
|
|
||
|
High market value per share |
|
$56.75 |
|
$52.37 |
|
$69.14 |
|
|
|
||
|
Low market value per share |
|
$40.91 |
|
$44.10 |
|
$60.16 |
|
|
|
||
|
Common shares outstanding (5) |
|
130,176,048 |
|
130,586,153 |
|
131,249,055 |
|
|
|
||
|
Tangible common equity to tangible assets (6) |
|
8.85 |
% |
7.78 |
% |
7.32 |
% |
|
|
||
|
Tier I leverage ratio |
|
11.25 |
% |
10.87 |
% |
10.34 |
% |
|
|
||
|
OTHER QTD INFORMATION |
|
|
|
|
|
|
|||||
|
Number of bank/ATM locations |
|
257 |
|
266 |
|
275 |
|
|
|
||
|
Full-time equivalent employees |
|
4,718 |
|
4,714 |
|
4,594 |
|
|
|
||
| (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 2023. | |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
|
(Unaudited) (In thousands, except per share data) |
|
For the Three Months Ended |
For the Year Ended |
||||||||||||
|
|
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
||||||||
|
Interest income |
|
$362,609 |
|
$361,162 |
|
$348,663 |
|
$308,857 |
|
$286,377 |
|
$1,381,291 |
|
$998,979 |
|
|
Interest expense |
|
114,188 |
|
112,615 |
|
99,125 |
|
57,234 |
|
31,736 |
|
383,162 |
|
56,794 |
|
|
Net interest income |
|
248,421 |
|
248,547 |
|
249,538 |
|
251,623 |
|
254,641 |
|
998,129 |
|
942,185 |
|
|
Provision for credit losses |
|
5,879 |
|
11,645 |
|
6,471 |
|
11,456 |
|
15,477 |
|
35,451 |
|
28,071 |
|
|
Net interest income after credit losses |
242,542 |
|
236,902 |
|
243,067 |
|
240,167 |
|
239,164 |
|
962,678 |
|
914,114 |
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|||||||
|
Trust fees |
|
49,154 |
|
49,207 |
|
47,265 |
|
45,328 |
|
44,710 |
|
190,954 |
|
184,719 |
|
|
Bank card transaction fees |
|
47,878 |
|
46,899 |
|
49,725 |
|
46,654 |
|
44,588 |
|
191,156 |
|
176,144 |
|
|
Deposit account charges and other fees |
23,517 |
|
23,090 |
|
22,633 |
|
21,752 |
|
21,989 |
|
90,992 |
|
94,381 |
|
|
|
Consumer brokerage services |
|
3,641 |
|
3,820 |
|
4,677 |
|
5,085 |
|
4,518 |
|
17,223 |
|
19,117 |
|
|
Capital market fees |
|
4,269 |
|
3,524 |
|
2,945 |
|
3,362 |
|
3,386 |
|
14,100 |
|
14,231 |
|
|
Loan fees and sales |
|
2,875 |
|
2,966 |
|
2,735 |
|
2,589 |
|
2,566 |
|
11,165 |
|
13,141 |
|
|
Other |
|
13,545 |
|
13,443 |
|
17,625 |
|
12,842 |
|
15,068 |
|
57,455 |
|
44,802 |
|
|
Total non-interest income |
|
144,879 |
|
142,949 |
|
147,605 |
|
137,612 |
|
136,825 |
|
573,045 |
|
546,535 |
|
|
INVESTMENT SECURITIES GAINS (LOSSES), NET |
7,601 |
|
4,298 |
|
3,392 |
|
(306 |
) |
8,904 |
|
14,985 |
|
20,506 |
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|||||||
|
Salaries and employee benefits |
|
147,456 |
|
146,805 |
|
145,429 |
|
144,373 |
|
138,458 |
|
584,063 |
|
554,047 |
|
|
Data processing and software |
|
31,141 |
|
30,744 |
|
28,719 |
|
28,154 |
|
27,991 |
|
118,758 |
|
110,692 |
|
|
Net occupancy |
|
13,927 |
|
13,948 |
|
12,995 |
|
12,759 |
|
11,774 |
|
53,629 |
|
49,117 |
|
|
Deposit insurance |
|
20,304 |
|
4,029 |
|
4,187 |
|
4,643 |
|
3,153 |
|
33,163 |
|
10,583 |
|
|
Marketing |
|
6,505 |
|
6,167 |
|
6,368 |
|
5,471 |
|
5,419 |
|
24,511 |
|
23,827 |
|
|
Equipment |
|
5,137 |
|
4,697 |
|
4,864 |
|
4,850 |
|
5,021 |
|
19,548 |
|
19,359 |
|
|
Supplies and communication |
|
5,242 |
|
4,963 |
|
4,625 |
|
4,590 |
|
4,446 |
|
19,420 |
|
18,101 |
|
|
Other |
|
21,542 |
|
16,657 |
|
20,424 |
|
19,267 |
|
20,478 |
|
77,890 |
|
63,051 |
|
|
Total non-interest expense |
|
251,254 |
|
228,010 |
|
227,611 |
|
224,107 |
|
216,740 |
|
930,982 |
|
848,777 |
|
|
Income before income taxes |
|
143,768 |
|
156,139 |
|
166,453 |
|
153,366 |
|
168,153 |
|
619,726 |
|
632,378 |
|
|
Less income taxes |
|
32,307 |
|
33,439 |
|
35,990 |
|
32,813 |
|
34,499 |
|
134,549 |
|
132,358 |
|
|
Net income |
|
111,461 |
|
122,700 |
|
130,463 |
|
120,553 |
|
133,654 |
|
485,177 |
|
500,020 |
|
|
Less non-controlling interest expense (income) |
2,238 |
|
2,104 |
|
2,674 |
|
1,101 |
|
2,026 |
|
8,117 |
|
11,621 |
|
|
|
Net income attributable to Commerce Bancshares, Inc. |
$109,223 |
|
$120,596 |
|
$127,789 |
|
$119,452 |
|
$131,628 |
|
$477,060 |
|
$488,399 |
|
|
|
Net income per common share — basic |
$0.84 |
|
$0.92 |
|
$0.97 |
|
$0.91 |
|
$1.00 |
|
$3.64 |
|
$3.68 |
|
|
|
Net income per common share — diluted |
$0.84 |
|
$0.92 |
|
$0.97 |
|
$0.91 |
|
$1.00 |
|
$3.64 |
|
$3.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
OTHER INFORMATION |
|
|
|
|
|
|
|
||||||||
|
Return on total average assets |
|
1.38 |
% |
1.49 |
% |
1.56 |
% |
1.54 |
% |
1.65 |
% |
1.49 |
% |
1.45 |
% |
|
Return on average equity (1) |
16.48 |
|
17.73 |
|
18.81 |
|
18.75 |
|
21.88 |
|
17.94 |
|
17.31 |
|
|
|
Efficiency ratio (2) |
|
63.80 |
|
58.15 |
|
57.22 |
|
57.49 |
|
55.26 |
|
59.17 |
|
56.90 |
|
|
Effective tax rate |
|
22.83 |
|
21.71 |
|
21.97 |
|
21.55 |
|
20.77 |
|
22.00 |
|
21.32 |
|
|
Net yield on interest earning assets |
3.17 |
|
3.11 |
|
3.12 |
|
3.26 |
|
3.18 |
|
3.16 |
|
2.85 |
|
|
|
Fully-taxable equivalent net interest income |
|
$250,547 |
|
$250,962 |
|
$251,757 |
|
$253,411 |
|
$256,675 |
|
$1,006,677 |
|
$951,815 |
|
| (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. |
| The statement above reflects the reclassification of non-interest income of $406 thousand and $1.1 million from other non-interest income to capital market fees for the second and third quarters of 2023. | |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS – PERIOD END |
|||||||
|
(Unaudited) (In thousands) |
|
Dec. 31, 2023 |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
|
ASSETS |
|
|
|
|
|||
|
Loans |
|
|
|
|
|||
|
Business |
|
$ 6,019,036 |
|
$ 5,908,330 |
|
$ 5,661,725 |
|
|
Real estate — construction and land |
|
1,446,764 |
|
1,539,566 |
|
1,361,095 |
|
|
Real estate — business |
|
3,719,306 |
|
3,647,168 |
|
3,406,981 |
|
|
Real estate — personal |
|
3,026,041 |
|
3,024,639 |
|
2,918,078 |
|
|
Consumer |
|
2,077,723 |
|
2,125,804 |
|
2,059,088 |
|
|
Revolving home equity |
|
319,894 |
|
305,237 |
|
297,207 |
|
|
Consumer credit card |
|
589,913 |
|
574,829 |
|
584,000 |
|
|
Overdrafts |
|
6,802 |
|
3,753 |
|
14,957 |
|
|
Total loans |
|
17,205,479 |
|
17,129,326 |
|
16,303,131 |
|
|
Allowance for credit losses on loans |
|
(162,395 |
) |
(162,244 |
) |
(150,136 |
) |
|
Net loans |
|
17,043,084 |
|
16,967,082 |
|
16,152,995 |
|
|
Loans held for sale |
|
4,177 |
|
5,120 |
|
4,964 |
|
|
Investment securities: |
|
|
|
|
|||
|
Available for sale debt securities |
|
9,684,760 |
|
9,860,828 |
|
12,238,316 |
|
|
Trading debt securities |
|
28,830 |
|
35,564 |
|
43,523 |
|
|
Equity securities |
|
12,701 |
|
12,212 |
|
12,304 |
|
|
Other securities |
|
222,473 |
|
230,792 |
|
225,034 |
|
|
Total investment securities |
|
9,948,764 |
|
10,139,396 |
|
12,519,177 |
|
|
Federal funds sold |
|
5,025 |
|
2,735 |
|
49,505 |
|
|
Securities purchased under agreements to resell |
|
450,000 |
|
450,000 |
|
825,000 |
|
|
Interest earning deposits with banks |
|
2,239,010 |
|
1,847,641 |
|
389,140 |
|
|
Cash and due from banks |
|
443,147 |
|
358,010 |
|
452,496 |
|
|
Premises and equipment — net |
|
469,059 |
|
460,830 |
|
418,909 |
|
|
Goodwill |
|
146,539 |
|
146,539 |
|
138,921 |
|
|
Other intangible assets — net |
|
14,179 |
|
14,432 |
|
15,234 |
|
|
Other assets |
|
938,077 |
|
984,907 |
|
909,590 |
|
|
Total assets |
|
$ 31,701,061 |
|
$ 31,376,692 |
|
$ 31,875,931 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|||
|
Deposits: |
|
|
|
|
|||
|
Non-interest bearing |
|
$ 7,975,935 |
|
$ 7,961,402 |
|
$ 10,066,356 |
|
|
Savings, interest checking and money market |
|
14,512,273 |
|
14,154,275 |
|
15,126,981 |
|
|
Certificates of deposit of less than $100,000 |
|
930,432 |
|
1,210,169 |
|
387,336 |
|
|
Certificates of deposit of $100,000 and over |
|
1,945,258 |
|
1,764,611 |
|
606,767 |
|
|
Total deposits |
|
25,363,898 |
|
25,090,457 |
|
26,187,440 |
|
|
Federal funds purchased and securities sold under agreements to repurchase |
|
2,908,815 |
|
2,745,181 |
|
2,841,734 |
|
|
Other borrowings |
|
1,404 |
|
503,589 |
|
9,672 |
|
|
Other liabilities |
|
462,714 |
|
438,199 |
|
355,508 |
|
|
Total liabilities |
|
28,736,831 |
|
28,777,426 |
|
29,394,354 |
|
|
Stockholders’ equity: |
|
|
|
|
|||
|
Common stock |
|
655,322 |
|
629,319 |
|
629,319 |
|
|
Capital surplus |
|
3,162,622 |
|
2,924,211 |
|
2,932,959 |
|
|
Retained earnings |
|
53,183 |
|
298,297 |
|
31,620 |
|
|
Treasury stock |
|
(35,599 |
) |
(76,888 |
) |
(41,743 |
) |
|
Accumulated other comprehensive income (loss) |
|
(891,412 |
) |
(1,193,534 |
) |
(1,086,864 |
) |
|
Total stockholders’ equity |
|
2,944,116 |
|
2,581,405 |
|
2,465,291 |
|
|
Non-controlling interest |
|
20,114 |
|
17,861 |
|
16,286 |
|
|
Total equity |
|
2,964,230 |
|
2,599,266 |
|
2,481,577 |
|
|
Total liabilities and equity |
|
$ 31,701,061 |
|
$ 31,376,692 |
|
$ 31,875,931 |
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS |
||||||||||
|
(Unaudited) (In thousands) |
For the Three Months Ended |
|||||||||
|
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
||||||
|
ASSETS: |
|
|
|
|
|
|||||
|
Loans: |
|
|
|
|
|
|||||
|
Business |
$ 5,861,229 |
|
$ 5,849,227 |
|
$ 5,757,388 |
|
$ 5,656,104 |
|
$ 5,478,241 |
|
|
Real estate — construction and land |
1,523,682 |
|
1,508,850 |
|
1,450,196 |
|
1,410,835 |
|
1,268,900 |
|
|
Real estate — business |
3,644,589 |
|
3,642,010 |
|
3,540,851 |
|
3,478,382 |
|
3,300,697 |
|
|
Real estate — personal |
3,027,664 |
|
2,992,500 |
|
2,960,962 |
|
2,933,750 |
|
2,886,686 |
|
|
Consumer |
2,117,268 |
|
2,102,281 |
|
2,098,523 |
|
2,067,385 |
|
2,089,912 |
|
|
Revolving home equity |
310,282 |
|
304,055 |
|
300,623 |
|
296,748 |
|
293,681 |
|
|
Consumer credit card |
568,112 |
|
564,039 |
|
555,875 |
|
556,223 |
|
559,463 |
|
|
Overdrafts |
5,258 |
|
5,341 |
|
4,630 |
|
4,449 |
|
7,428 |
|
|
Total loans |
17,058,084 |
|
16,968,303 |
|
16,669,048 |
|
16,403,876 |
|
15,885,008 |
|
|
Allowance for credit losses on loans |
(161,932 |
) |
(158,335 |
) |
(159,068 |
) |
(150,117 |
) |
(143,285 |
) |
|
Net loans |
16,896,152 |
|
16,809,968 |
|
16,509,980 |
|
16,253,759 |
|
15,741,723 |
|
|
Loans held for sale |
5,392 |
|
5,714 |
|
5,957 |
|
5,708 |
|
6,567 |
|
|
Investment securities: |
|
|
|
|
|
|||||
|
U.S. government and federal agency obligations |
889,390 |
|
986,284 |
|
1,035,651 |
|
1,099,067 |
|
1,055,602 |
|
|
Government-sponsored enterprise obligations |
55,661 |
|
55,676 |
|
55,751 |
|
87,086 |
|
55,732 |
|
|
State and municipal obligations |
1,363,649 |
|
1,391,541 |
|
1,532,519 |
|
1,793,756 |
|
1,990,643 |
|
|
Mortgage-backed securities |
6,022,502 |
|
6,161,348 |
|
6,316,224 |
|
6,454,408 |
|
6,605,936 |
|
|
Asset-backed securities |
2,325,089 |
|
2,553,562 |
|
2,827,911 |
|
3,233,757 |
|
3,714,092 |
|
|
Other debt securities |
510,721 |
|
514,787 |
|
519,988 |
|
528,941 |
|
560,951 |
|
|
Unrealized gain (loss) on debt securities |
(1,595,845 |
) |
(1,458,141 |
) |
(1,331,002 |
) |
(1,387,196 |
) |
(1,582,061 |
) |
|
Total available for sale debt securities |
9,571,167 |
|
10,205,057 |
|
10,957,042 |
|
11,809,819 |
|
12,400,895 |
|
|
Trading debt securities |
37,234 |
|
35,044 |
|
46,493 |
|
45,757 |
|
44,626 |
|
|
Equity securities |
12,249 |
|
12,230 |
|
12,335 |
|
12,458 |
|
10,534 |
|
|
Other securities |
222,378 |
|
237,518 |
|
273,587 |
|
229,867 |
|
219,354 |
|
|
Total investment securities |
9,843,028 |
|
10,489,849 |
|
11,289,457 |
|
12,097,901 |
|
12,675,409 |
|
|
Federal funds sold |
1,194 |
|
2,722 |
|
7,484 |
|
38,978 |
|
27,683 |
|
|
Securities purchased under agreements to resell |
450,000 |
|
712,472 |
|
824,974 |
|
825,000 |
|
1,174,457 |
|
|
Interest earning deposits with banks |
2,387,415 |
|
2,337,744 |
|
2,284,162 |
|
809,935 |
|
640,039 |
|
|
Other assets |
1,797,849 |
|
1,750,222 |
|
1,941,340 |
|
1,376,551 |
|
1,339,554 |
|
|
Total assets |
$ 31,381,030 |
|
$ 32,108,691 |
|
$ 32,863,354 |
|
$ 31,407,832 |
|
$ 31,605,432 |
|
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
|
Non-interest bearing deposits |
$ 7,748,654 |
|
$ 7,939,190 |
|
$ 8,224,475 |
|
$ 9,114,512 |
|
$ 10,360,834 |
|
|
Savings |
1,357,733 |
|
1,436,149 |
|
1,516,887 |
|
1,550,215 |
|
1,567,113 |
|
|
Interest checking and money market |
13,166,783 |
|
13,048,199 |
|
12,918,399 |
|
13,265,485 |
|
13,693,974 |
|
|
Certificates of deposit of less than $100,000 |
1,097,224 |
|
1,423,965 |
|
1,075,110 |
|
415,367 |
|
388,304 |
|
|
Certificates of deposit of $100,000 and over |
1,839,057 |
|
1,718,126 |
|
1,472,208 |
|
903,393 |
|
596,703 |
|
|
Total deposits |
25,209,451 |
|
25,565,629 |
|
25,207,079 |
|
25,248,972 |
|
26,606,928 |
|
|
Borrowings: |
|
|
|
|
|
|||||
|
Federal funds purchased |
473,534 |
|
508,851 |
|
507,165 |
|
493,721 |
|
143,630 |
|
|
Securities sold under agreements to repurchase |
2,467,118 |
|
2,283,020 |
|
2,206,612 |
|
2,418,726 |
|
2,260,263 |
|
|
Other borrowings |
179,587 |
|
685,222 |
|
1,617,952 |
|
551,267 |
|
179,552 |
|
|
Total borrowings |
3,120,239 |
|
3,477,093 |
|
4,331,729 |
|
3,463,714 |
|
2,583,445 |
|
|
Other liabilities |
421,402 |
|
367,741 |
|
598,915 |
|
112,052 |
|
28,745 |
|
|
Total liabilities |
28,751,092 |
|
29,410,463 |
|
30,137,723 |
|
28,824,738 |
|
29,219,118 |
|
|
Equity |
2,629,938 |
|
2,698,228 |
|
2,725,631 |
|
2,583,094 |
|
2,386,314 |
|
|
Total liabilities and equity |
$ 31,381,030 |
|
$ 32,108,691 |
|
$ 32,863,354 |
|
$ 31,407,832 |
|
$ 31,605,432 |
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES |
||||||||||
|
(Unaudited) |
For the Three Months Ended |
|||||||||
|
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
||||||
|
ASSETS: |
|
|
|
|
|
|||||
|
Loans: |
|
|
|
|
|
|||||
|
Business (1) |
5.91 |
% |
5.77 |
% |
5.58 |
% |
5.31 |
% |
4.68 |
% |
|
Real estate — construction and land |
8.34 |
|
8.17 |
|
7.92 |
|
7.33 |
|
6.80 |
|
|
Real estate — business |
6.18 |
|
6.13 |
|
5.96 |
|
5.65 |
|
5.15 |
|
|
Real estate — personal |
3.85 |
|
3.73 |
|
3.68 |
|
3.61 |
|
3.45 |
|
|
Consumer |
6.21 |
|
5.97 |
|
5.63 |
|
5.31 |
|
4.77 |
|
|
Revolving home equity |
7.70 |
|
7.76 |
|
7.55 |
|
7.03 |
|
5.89 |
|
|
Consumer credit card |
13.83 |
|
13.77 |
|
13.77 |
|
13.68 |
|
12.64 |
|
|
Overdrafts |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total loans |
6.15 |
|
6.02 |
|
5.84 |
|
5.56 |
|
5.03 |
|
|
Loans held for sale |
9.93 |
|
10.55 |
|
10.17 |
|
10.30 |
|
10.09 |
|
|
Investment securities: |
|
|
|
|
|
|||||
|
U.S. government and federal agency obligations |
2.32 |
|
2.31 |
|
3.42 |
|
1.90 |
|
2.01 |
|
|
Government-sponsored enterprise obligations |
2.36 |
|
2.36 |
|
2.38 |
|
3.21 |
|
2.36 |
|
|
State and municipal obligations (1) |
1.94 |
|
1.95 |
|
2.04 |
|
2.26 |
|
2.29 |
|
|
Mortgage-backed securities |
2.05 |
|
2.06 |
|
2.09 |
|
2.06 |
|
1.88 |
|
|
Asset-backed securities |
2.30 |
|
2.20 |
|
2.08 |
|
2.01 |
|
1.96 |
|
|
Other debt securities |
1.85 |
|
1.75 |
|
1.86 |
|
1.93 |
|
1.89 |
|
|
Total available for sale debt securities |
2.10 |
|
2.08 |
|
2.19 |
|
2.07 |
|
1.97 |
|
|
Trading debt securities (1) |
5.05 |
|
5.11 |
|
4.53 |
|
4.59 |
|
3.81 |
|
|
Equity securities (1) |
27.47 |
|
23.06 |
|
23.25 |
|
23.24 |
|
28.44 |
|
|
Other securities (1) |
8.60 |
|
13.13 |
|
9.40 |
|
7.11 |
|
6.67 |
|
|
Total investment securities |
2.27 |
|
2.33 |
|
2.37 |
|
2.18 |
|
2.07 |
|
|
Federal funds sold |
6.65 |
|
6.56 |
|
5.63 |
|
5.09 |
|
4.27 |
|
|
Securities purchased under agreements to resell |
1.64 |
|
2.08 |
|
1.99 |
|
1.94 |
|
2.36 |
|
|
Interest earning deposits with banks |
5.47 |
|
5.39 |
|
5.14 |
|
4.67 |
|
3.69 |
|
|
Total interest earning assets |
4.62 |
|
4.51 |
|
4.34 |
|
4.00 |
|
3.59 |
|
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
|
Interest bearing deposits: |
|
|
|
|
|
|||||
|
Savings |
.05 |
|
.05 |
|
.05 |
|
.05 |
|
.06 |
|
|
Interest checking and money market |
1.57 |
|
1.33 |
|
.93 |
|
.61 |
|
.38 |
|
|
Certificates of deposit of less than $100,000 |
4.21 |
|
4.32 |
|
3.78 |
|
1.39 |
|
.73 |
|
|
Certificates of deposit of $100,000 and over |
4.55 |
|
4.37 |
|
3.93 |
|
2.98 |
|
1.42 |
|
|
Total interest bearing deposits |
1.93 |
|
1.76 |
|
1.29 |
|
.71 |
|
.40 |
|
|
Borrowings: |
|
|
|
|
|
|||||
|
Federal funds purchased |
5.40 |
|
5.33 |
|
5.06 |
|
4.59 |
|
3.56 |
|
|
Securities sold under agreements to repurchase |
3.25 |
|
3.20 |
|
3.09 |
|
2.93 |
|
2.29 |
|
|
Other borrowings |
5.45 |
|
5.30 |
|
5.24 |
|
4.94 |
|
4.02 |
|
|
Total borrowings |
3.71 |
|
3.93 |
|
4.13 |
|
3.49 |
|
2.48 |
|
|
Total interest bearing liabilities |
2.20 |
% |
2.12 |
% |
1.87 |
% |
1.20 |
% |
.69 |
% |
|
|
|
|
|
|
|
|||||
|
Net yield on interest earning assets |
3.17 |
% |
3.11 |
% |
3.12 |
% |
3.26 |
% |
3.18 |
% |
|
(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 Year Ended |
||||||||||||
|
(Unaudited) (In thousands, except ratios) |
|
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||||||
|
ALLOWANCE FOR CREDIT LOSSES ON LOANS |
|
|
|
|
|
|
|
|
|||||||
|
Balance at beginning of period |
|
$162,244 |
|
$158,685 |
|
$159,317 |
|
$150,136 |
|
$143,377 |
|
$150,136 |
|
$150,044 |
|
|
Provision for credit losses on loans |
|
8,170 |
|
13,343 |
|
5,864 |
|
15,948 |
|
12,404 |
|
43,325 |
|
19,155 |
|
|
Net charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|||||||
|
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Business |
|
96 |
|
2,613 |
|
165 |
|
230 |
|
496 |
|
3,104 |
|
1,053 |
|
|
Real estate — construction and land |
|
— |
|
— |
|
(115 |
) |
— |
|
— |
|
(115 |
) |
— |
|
|
Real estate — business |
|
128 |
|
(15 |
) |
(5 |
) |
(4 |
) |
(4 |
) |
104 |
|
(20 |
) |
|
|
|
224 |
|
2,598 |
|
45 |
|
226 |
|
492 |
|
3,093 |
|
1,033 |
|
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Consumer credit card |
|
5,325 |
|
4,716 |
|
4,687 |
|
4,325 |
|
3,467 |
|
19,053 |
|
12,658 |
|
|
Consumer |
|
1,903 |
|
1,797 |
|
1,273 |
|
1,275 |
|
1,522 |
|
6,248 |
|
3,790 |
|
|
Overdraft |
|
588 |
|
683 |
|
517 |
|
978 |
|
230 |
|
2,766 |
|
1,716 |
|
|
Real estate — personal |
|
(11 |
) |
(9 |
) |
(6 |
) |
(11 |
) |
(40 |
) |
(37 |
) |
(74 |
) |
|
Revolving home equity |
|
(10 |
) |
(1 |
) |
(20 |
) |
(26 |
) |
(26 |
) |
(57 |
) |
(60 |
) |
|
|
|
7,795 |
|
7,186 |
|
6,451 |
|
6,541 |
|
5,153 |
|
27,973 |
|
18,030 |
|
|
Total net loan charge-offs |
|
8,019 |
|
9,784 |
|
6,496 |
|
6,767 |
|
5,645 |
|
31,066 |
|
19,063 |
|
|
Balance at end of period |
|
$162,395 |
|
$162,244 |
|
$158,685 |
|
$159,317 |
|
$150,136 |
|
$162,395 |
|
$150,136 |
|
|
LIABILITY FOR UNFUNDED LENDING COMMITMENTS |
|
$25,246 |
|
$27,537 |
|
$29,235 |
|
$28,628 |
|
$33,120 |
|
|
|
||
|
NET CHARGE-OFF RATIOS (1) |
|
|
|
|
|
|
|
|
|||||||
|
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Business |
|
.01 |
% |
.18 |
% |
.01 |
% |
.02 |
% |
.04 |
% |
.05 |
% |
.02 |
% |
|
Real estate — construction and land |
|
— |
|
— |
|
(.03 |
) |
— |
|
— |
|
(.01 |
) |
— |
|
|
Real estate — business |
|
.01 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
.01 |
|
.09 |
|
— |
|
.01 |
|
.02 |
|
.03 |
|
.01 |
|
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
|
Consumer credit card |
|
3.72 |
|
3.32 |
|
3.38 |
|
3.15 |
|
2.46 |
|
3.40 |
|
2.31 |
|
|
Consumer |
|
.36 |
|
.34 |
|
.24 |
|
.25 |
|
.29 |
|
.30 |
|
.18 |
|
|
Overdraft |
|
44.37 |
|
50.73 |
|
44.79 |
|
89.15 |
|
12.28 |
|
56.19 |
|
30.40 |
|
|
Real estate — personal |
|
— |
|
— |
|
— |
|
— |
|
(.01 |
) |
— |
|
— |
|
|
Revolving home equity |
|
(.01 |
) |
— |
|
(.03 |
) |
(.04 |
) |
(.04 |
) |
(.02 |
) |
(.02 |
) |
|
|
|
.51 |
|
.48 |
|
.44 |
|
.45 |
|
.35 |
|
.47 |
|
.31 |
|
|
Total |
|
.19 |
% |
.23 |
% |
.16 |
% |
.17 |
% |
.14 |
% |
.19 |
% |
.12 |
% |
|
CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|||||||
|
Non-accrual loans to total loans |
|
.04 |
% |
.05 |
% |
.04 |
% |
.05 |
% |
.05 |
% |
|
|
||
|
Allowance for credit losses on loans to total loans |
|
.94 |
|
.95 |
|
.94 |
|
.96 |
|
.92 |
|
|
|
||
|
NON-ACCRUAL AND PAST DUE LOANS |
|
|
|
|
|
|
|
|
|||||||
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|||||||
|
Business |
|
$3,622 |
|
$6,602 |
|
$4,732 |
|
$6,361 |
|
$6,751 |
|
|
|
||
|
Real estate — business |
|
60 |
|
76 |
|
153 |
|
171 |
|
189 |
|
|
|
||
|
Real estate — personal |
|
1,653 |
|
1,531 |
|
1,276 |
|
1,269 |
|
1,366 |
|
|
|
||
|
Revolving home equity |
|
1,977 |
|
— |
|
— |
|
— |
|
— |
|
|
|
||
|
Total |
|
7,312 |
|
8,209 |
|
6,161 |
|
7,801 |
|
8,306 |
|
|
|
||
|
Loans past due 90 days and still accruing interest |
$21,864 |
|
$18,580 |
|
$15,351 |
|
$14,800 |
|
$15,830 |
|
|
|
|||
|
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale). |
|||||||||||||||
Contacts
Matt Burkemper, Investor Relations
(314) 746-7485
www.commercebank.com
[email protected]
