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Commerce Bancshares, Inc. Reports Second Quarter Earnings Per Share of $.96

Business Wire - Thu Jul 21, 2022

Commerce Bancshares, Inc. announced earnings of $.96 per share for the three months ended June 30, 2022, compared to $1.32 per share in the same quarter last year and $.97 per share in the first quarter of 2022. Net income for the second quarter of 2022 amounted to $115.8 million, compared to $162.3 million in the second quarter of 2021 and $118.2 million in the prior quarter.

For the six months ended June 30, 2022, earnings per share totaled $1.93, compared to $2.38 for the first six months of 2021. Net income amounted to $233.9 million for the six months ended June 30, 2022, compared to $293.3 million in the comparable period last year. For the year to date, the return on average assets was 1.35%, and the return on average equity was 15.28%.

“Against the backdrop of an uncertain economy, we are pleased with our second quarter performance,” said John Kemper, Chief Executive Officer. “Consumer and commercial spending remain at healthy levels, despite supply chain impacts, inflation, and geopolitical challenges. Our balance sheet has been well-positioned for rising rates, which resulted in an expansion in net interest margin this quarter.”

“Capital levels and credit quality metrics remain very strong and we have ample liquidity to meet the increased loan demand across our markets.”

Second Quarter 2022 Financial Highlights:

  • Net interest income was $232.4 million, a $23.6 million increase over the prior quarter. Net interest margin increased 34 basis points to 2.79%.
  • Non-interest income totaled $139.4 million, an increase of $7.7 million compared to the prior quarter.
  • Non-interest expense totaled $213.5 million, an increase of $7.9 million compared to the prior quarter.
  • Average loan balances totaled $15.5 billion, an increase of $262.4 million, or 1.7%, from the prior quarter.
  • Total average available for sale debt securities decreased 4.4%, or $654.6 million, over the prior quarter to $14.3 billion, at fair value. Purchases of securities during the quarter totaled $73.8 million, with a weighted average yield of approximately 3.03%.
  • Compared to the prior quarter, average deposits declined $622.5 million, or 2.1%. The average rate paid on interest bearing deposits was 7 basis points.
  • The ratio of annualized net loan charge-offs to average loans was .10% compared to .12% in the prior quarter.
  • Non-accrual loans totaled $7.9 million compared to $8.3 million in the prior quarter. Non-accrual loans were .05% of total loans.
  • At June 30, 2022, the allowance for credit losses on loans increased to $138.0 million and the ratio of allowance for credit losses on loans to total loans was .88%.
  • The Company purchased 846,223 shares of its common stock this quarter at an average price of $67.77.
  • Total assets at June 30, 2022 were $33.4 billion, a decrease of $1.6 billion, or 4.4%, from the prior quarter.
  • For the quarter, the return on average assets was 1.36%, the return on average equity was 16.29%, and the efficiency ratio was 57.3%.

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 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

For the Six Months Ended

(Unaudited)

(Dollars in thousands, except per share data)

 

Jun. 30,

2022

Mar. 31,

2022

Jun. 30,

2021

Jun. 30,

2022

Jun. 30,

2021

FINANCIAL SUMMARY

 

 

Net interest income

 

$232,385

 

$208,786

 

$207,982

 

$441,171

 

$413,730

 

Non-interest income

 

139,427

 

131,769

 

139,143

 

271,196

 

275,188

 

Total revenue

 

371,812

 

340,555

 

347,125

 

712,367

 

688,918

 

Investment securities gains

 

1,029

 

7,163

 

16,804

 

8,192

 

26,657

 

Provision for credit losses

 

7,162

 

(9,858

)

(45,655

)

(2,696

)

(51,887

)

Non-interest expense

 

213,505

 

205,648

 

198,126

 

419,153

 

390,699

 

Income before taxes

 

152,174