Skip to main content

Commerce Bancshares(CBSH-Q)
NASDAQ

Today's Change
Real-Time Last Update Last Sale Cboe BZX Real-Time

Commerce Bancshares, Inc. Reports First Quarter Earnings Per Share of $.97

Business Wire - Tue Apr 19, 2022

Commerce Bancshares, Inc. announced earnings of $.97 per share for the three months ended March 31, 2022, compared to $1.06 per share in the same quarter last year and $.94 per share in the fourth quarter of 2021. Net income for the first quarter of 2022 amounted to $118.2 million, compared to $131.0 million in the first quarter of 2021 and $114.9 million in the prior quarter.

"Commerce had strong financial performance for the quarter, including an expanding net interest margin and increasing loan demand,” said John Kemper, Chief Executive Officer. “Loan demand increased across our commercial loan categories, reflecting higher seasonal business activity and good overall momentum in our markets."

“The increase in interest rates and the steepening of the yield curve provided opportunities to optimize the mix of earning assets on our balance sheet. While net interest income grew, non-interest income comprised 39% of total revenue, a reflection of our diversified business model."

First Quarter 2022 Financial Highlights:

  • Net interest income was $208.8 million, a slight increase over the prior quarter. Net interest margin increased 2 basis points to 2.45%.
  • Non-interest income totaled $131.8 million, a decrease of $15.9 million compared to the prior quarter.
  • Net investment securities gains of $7.2 million were driven by net fair value gains of $7.5 million in the Company’s portfolio of private equity investments.
  • Non-interest expense totaled $205.6 million, an increase of $2.1 million compared to the prior quarter.
  • Average loan balances totaled $15.2 billion, an increase of $130.1 million, or .9%, over the prior quarter (average Paycheck Protection Program (PPP) loan balances declined $132.0 million).
  • Total average available for sale debt securities increased 2.9%, or $418.0 million, over the prior quarter to $14.9 billion, at fair value. Purchases of securities during the quarter totaled $1.8 billion, with a weighted average yield of approximately 2.06%.
  • Compared to the prior quarter, average deposits grew $501.7 million, or 1.7%. The average rate paid on interest bearing deposits was 5 basis points.
  • The ratio of annualized net loan charge-offs to average loans was .12% compared to .11% in the prior quarter.
  • Non-accrual loans totaled $8.3 million compared to $9.2 million in the prior quarter. Non-accrual loans were .05% of total loans.
  • At March 31, 2022, the allowance for credit losses on loans decreased to $134.7 million. The allowance for credit losses on loans to total loans was .87% at March 31, 2022.
  • The Company purchased 795,387 shares of its common stock this quarter at an average price of $70.22.
  • Total assets at March 31, 2022 were $35.0 billion, a decrease of $1.7 billion, or 4.6%, from the prior quarter.
  • For the quarter, the return on average assets was 1.33%, the return on average equity was 14.41%, and the efficiency ratio was 60.3%.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services, including payment solutions, investment management and securities brokerage. Commerce Bank, a subsidiary of Commerce Bancshares, Inc., leverages more than 155 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

(Unaudited)

(Dollars in thousands, except per share data)

 

Mar. 31, 2022

Dec. 31, 2021

Mar. 31, 2021

FINANCIAL SUMMARY

Net interest income

 

$208,786

 

$207,657

 

$205,748

 

Non-interest income

 

131,769

 

147,699

 

136,045

 

Total revenue

 

340,555

 

355,356

 

341,793

 

Investment securities gains (losses), net

 

7,163

 

(9,706

)

9,853

 

Provision for credit losses

 

(9,858

)

(7,054

)

(6,232

)

Non-interest expense

 

205,648

 

203,582

 

192,573

 

Income before taxes

 

151,928

 

149,122

 

165,305

 

Income taxes

 

31,902

 

33,764

 

32,076

 

Non-controlling interest expense

 

1,872

 

452

 

2,257

 

Net income attributable to Commerce Bancshares, Inc.

118,154

 

114,906

 

130,972

 

Earnings per common share:

 

 

 

 

Net income — basic

 

$0.97

 

$0.94

 

$1.06

 

Net income — diluted

 

$0.97

 

$0.94

 

$1.06

 

Effective tax rate

 

21.26

%

22.71

%

19.67

%

Tax equivalent net interest income

 

$211,393

 

$210,424

 

$208,774

 

Average total interest earning assets (1)

 

$ 34,937,086

 

$ 34,318,520

 

$ 31,278,721

 

Diluted wtd. average shares outstanding

 

120,616,095

 

121,221,482

 

122,402,075

 

 

 

 

 

 

RATIOS

 

 

 

 

Average loans to deposits (2)

 

51.90

%

52.36

%

61.79

%

Return on total average assets

 

1.33

 

1.28

 

1.63

 

Return on average equity(3)

 

14.41

 

13.11

 

15.69

 

Non-interest income to total revenue

 

38.69

 

41.56

 

39.80

 

Efficiency ratio (4)

 

60.29

 

57.29

 

56.37

 

Net yield on interest earning assets

 

2.45

 

2.43

 

2.71

 

 

 

 

 

 

EQUITY SUMMARY

 

 

 

 

Cash dividends per share

 

$.265

 

$.250

 

$.250

 

Cash dividends on common stock

 

$32,143

 

$30,489

 

$30,799

 

Book value per share (5)

 

$24.60

 

$28.40

 

$26.99

 

Market value per share (5)

 

$71.59

 

$68.74

 

$72.96

 

High market value per share

 

$74.72

 

$71.50

 

$79.10

 

Low market value per share

 

$66.28

 

$64.85

 

$61.68

 

Common shares outstanding (5)

 

120,881,120

 

121,436,734

 

122,931,140

 

Tangible common equity to tangible assets (6)

 

8.09

%

9.01

%

9.57

%

Tier I leverage ratio

 

9.07

%

9.13

%

9.38

%

 

 

 

 

 

OTHER QTD INFORMATION

 

 

 

 

Number of bank/ATM locations

 

285

 

287

 

298

 

Full-time equivalent employees

 

4,563

 

4,567

 

4,619

 

(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 revenue.

(5)

As of period end.

(6)

The tangible common equity ratio 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 2021.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

(Unaudited)

(In thousands, except per share data)

 

For the Three Months Ended

 

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Jun. 30, 2021

Mar. 31, 2021

Interest income

 

$211,782

 

$210,479

 

$216,981

 

$211,133

 

$209,697

 

Interest expense

 

2,996

 

2,822

 

2,944

 

3,151

 

3,949

 

Net interest income

 

208,786

 

207,657

 

214,037

 

207,982

 

205,748

 

Provision for credit losses

 

(9,858

)

(7,054

)

(7,385

)

(45,655

)

(6,232

)

Net interest income after credit losses

218,644

 

214,711

 

221,422

 

253,637

 

211,980

 

NON-INTEREST INCOME

 

 

 

 

 

 

Bank card transaction fees

 

42,045

 

44,773

 

42,815

 

42,608

 

37,695

 

Trust fees

 

47,811

 

48,893

 

48,950

 

46,257

 

44,127

 

Deposit account charges and other fees

22,307

 

25,493

 

25,161

 

23,988

 

22,575

 

Capital market fees

 

4,125

 

3,841

 

3,794

 

3,327

 

4,981

 

Consumer brokerage services

 

4,446

 

4,878

 

4,900

 

4,503

 

4,081

 

Loan fees and sales

 

4,235

 

5,248

 

6,842

 

7,446

 

10,184

 

Other

 

6,800

 

14,573

 

5,044

 

11,014

 

12,402

 

Total non-interest income

 

131,769

 

147,699

 

137,506

 

139,143

 

136,045

 

INVESTMENT SECURITIES GAINS (LOSSES), NET

7,163

 

(9,706

)

13,108

 

16,804

 

9,853

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

Salaries and employee benefits

 

135,953

 

132,640

 

132,824

 

130,751

 

129,033

 

Net occupancy

 

12,296

 

12,308

 

12,329

 

11,527

 

12,021

 

Equipment

 

4,568

 

4,691

 

4,440

 

4,605

 

4,353

 

Supplies and communication

 

4,713

 

4,430

 

4,530

 

4,033

 

4,125

 

Data processing and software

 

27,016

 

25,777

 

25,598

 

24,954

 

25,463

 

Marketing

 

6,344

 

5,395

 

5,623

 

5,680

 

5,158

 

Other

 

14,758

 

18,341

 

26,276

 

16,576

 

12,420

 

Total non-interest expense

 

205,648

 

203,582

 

211,620

 

198,126

 

192,573

 

Income before income taxes

 

151,928

 

149,122

 

160,416

 

211,458

 

165,305

 

Less income taxes

 

31,902

 

33,764

 

34,662

 

45,209

 

32,076

 

Net income

 

120,026

 

115,358

 

125,754

 

166,249

 

133,229

 

Less non-controlling interest expense

1,872

 

452

 

3,193

 

3,923

 

2,257

 

Net income attributable to Commerce Bancshares, Inc.

118,154

 

114,906

 

122,561

 

162,326

 

130,972

 

Net income per common share — basic

$0.97

 

$0.94

 

$1.00

 

$1.32

 

$1.06

 

Net income per common share — diluted

$0.97

 

$0.94

 

$0.99

 

$1.32

 

$1.06

 

 

 

 

 

 

 

 

OTHER INFORMATION

 

 

 

 

 

Return on total average assets

 

1.33

%

1.28

%

1.40

%

1.93

%

1.63

%

Return on average equity (1)

14.41

 

13.11

 

13.74

 

19.12

 

15.69

 

Efficiency ratio (2)

 

60.29

 

57.29

 

59.95

 

56.90

 

56.37

 

Effective tax rate

 

21.26

 

22.71

 

22.05

 

21.78

 

19.67

 

Net yield on interest earning assets

2.45

 

2.43

 

2.58

 

2.60

 

2.71

 

Tax equivalent net interest income

 

$211,393

 

$210,424

 

$216,858

 

$211,060

 

$208,774

 

(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 revenue.

 

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - PERIOD END

 

(Unaudited)

(In thousands)

 

Mar. 31, 2022

Dec. 31, 2021

Mar. 31, 2021

ASSETS

 

 

 

 

Loans

 

 

 

 

Business

 

$ 5,508,508

 

$ 5,303,535

 

$ 6,624,209

 

Real estate — construction and land

 

1,144,411

 

1,118,266

 

1,073,036

 

Real estate — business

 

3,109,668

 

3,058,837

 

3,017,242

 

Real estate — personal

 

2,820,076

 

2,805,401

 

2,828,418

 

Consumer

 

2,053,160

 

2,032,225

 

1,966,833

 

Revolving home equity

 

264,401

 

275,945

 

285,261

 

Consumer credit card

 

544,579

 

575,410

 

593,833

 

Overdrafts

 

14,211

 

6,740

 

3,239

 

Total loans

 

15,459,014

 

15,176,359

 

16,392,071

 

Allowance for credit losses on loans

 

(134,710

)

(150,044

)

(200,527

)

Net loans

 

15,324,304

 

15,026,315

 

16,191,544

 

Loans held for sale

 

8,908

 

8,615

 

38,076

 

Investment securities:

 

 

 

 

Available for sale debt securities

 

14,780,494

 

14,450,027

 

12,528,203

 

Trading debt securities

 

31,380

 

46,235

 

26,925

 

Equity securities

 

9,284

 

9,202

 

4,337

 

Other securities

 

199,576

 

194,047

 

155,913

 

Total investment securities

 

15,020,734

 

14,699,511

 

12,715,378

 

Federal funds sold

 

 

2,800

 

500

 

Securities purchased under agreements to resell

 

1,825,000

 

1,625,000

 

850,000

 

Interest earning deposits with banks

 

1,260,813

 

3,971,217

 

2,017,128

 

Cash and due from banks

 

326,549

 

305,539

 

338,666

 

Premises and equipment — net

 

394,028

 

388,738

 

371,737

 

Goodwill

 

138,921

 

138,921

 

138,921

 

Other intangible assets — net

 

15,885

 

15,570

 

13,098

 

Other assets

 

671,651

 

506,862

 

594,738

 

Total assets

 

$ 34,986,793

 

$ 36,689,088

 

$ 33,269,786

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Deposits:

 

 

 

 

Non-interest bearing

 

$ 11,428,372

 

$ 11,772,374

 

$ 11,076,556

 

Savings, interest checking and money market

 

16,751,632

 

16,598,085

 

14,572,378

 

Certificates of deposit of less than $100,000

 

422,992

 

435,960

 

504,472

 

Certificates of deposit of $100,000 and over

 

716,345

 

1,006,654

 

1,267,219