CBSH 8-K

Commerce Bancshares Inc /Mo/ (CBSH)

8-K 2020-04-28 For: 2020-04-28

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Added on April 11, 2026

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	For the Three Months Ended
(Unaudited) (Dollars in thousands, except per share data)	March 31, 2020			December 31, 2019			March 31, 2019
FINANCIAL SUMMARY
Net interest income	$201,065			$202,659			$203,488
Non-interest income	123,663			143,461			121,240
Total revenue	324,728			346,120			324,728
Investment securities losses, net	(13,301)			(248)			(925)
Provision for credit losses	57,953			15,206			12,463
Non-interest expense	193,698			195,174			191,425
Income before taxes	59,776			135,492			119,915
Income taxes	10,173			28,214			22,860
Non-controlling interest (income) expense	(2,254)			398			(83)
Net income attributable to Commerce Bancshares, Inc.				51,857			106,880			97,138
Preferred stock dividends	2,250			2,250			2,250
Net income available to common shareholders				$49,607			$104,630			$94,888
Earnings per common share:
Net income — basic	$.44			$.94			$.81
Net income — diluted	$.44			$.93			$.81
Effective tax rate	16.40		%	20.88		%	19.05		%
Tax equivalent net interest income	$204,402			$206,156			$207,104
Average total interest earning assets ⁽¹⁾	$	24,691,014		$	24,372,575		$	23,874,861
Diluted wtd. average shares outstanding	111,375,938			112,011,108			115,816,037

RATIOS
Average loans to deposits ⁽²⁾	72.57		%	71.73		%	70.96		%
Return on total average assets	.80			1.65			1.58

Return on average common equity ⁽³⁾	6.48			13.90			13.64
Non-interest income to total revenue	38.08			41.45			37.34
Efficiency ratio ⁽⁴⁾	59.17			56.29			58.76
Net yield on interest earning assets	3.33			3.36			3.52

EQUITY SUMMARY
Cash dividends per common share	$.270			$.248			$.248
Cash dividends on common stock	$30,292			$27,933			$28,858
Cash dividends on preferred stock	$2,250			$2,250			$2,250

Book value per common share ⁽⁵⁾	$27.86			$26.70			$24.94
Market value per common share ⁽⁵⁾	$50.35			$67.94			$55.30
High market value per common share	$71.92			$68.65			$60.97
Low market value per common share	$45.51			$54.56			$52.97
Common shares outstanding ⁽⁵⁾	111,535,295			112,131,549			116,231,063
Tangible common equity to tangible assets ⁽⁶⁾	11.13		%	10.99		%	11.06		%
Tier I leverage ratio	11.13		%	11.38		%	11.67		%

OTHER QTD INFORMATION
Number of bank/ATM locations	317			316			319
Full-time equivalent employees	4,854			4,858			4,841


	For the Three Months Ended
(Unaudited) (In thousands, except per share data)	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
Interest income	$221,485		$226,665		$231,743		$238,412		$227,865
Interest expense	20,420		24,006		28,231		26,778		24,377
Net interest income	201,065		202,659		203,512		211,634		203,488
Provision for credit losses	57,953		15,206		10,963		11,806		12,463
Net interest income after credit losses			143,112		187,453		192,549		199,828		191,025
NON-INTEREST INCOME
Bank card transaction fees	40,200		41,079		44,510		42,646		39,644
Trust fees	39,965		40,405		39,592		38,375		37,256
Deposit account charges and other fees			23,677		24,974		24,032		23,959		23,018
Capital market fees	3,790		2,536		1,787		1,944		1,879
Consumer brokerage services	4,077		4,139		4,030		3,888		3,747
Loan fees and sales	3,235		3,465		4,755		4,238		3,309
Other	8,719		26,863		14,037		12,209		12,387
Total non-interest income	123,663		143,461		132,743		127,259		121,240





INVESTMENT SECURITIES GAINS (LOSSES), NET			(13,301)		(248)		4,909		(110)		(925)
NON-INTEREST EXPENSE
Salaries and employee benefits	128,937		126,901		123,836		120,062		122,128
Net occupancy	11,748		12,218		12,293		11,145		11,501
Equipment	4,821		4,859		4,941		4,790		4,471
Supplies and communication	4,658		4,851		5,106		5,275		5,162
Data processing and software	23,555		23,934		23,457		23,248		22,260
Marketing	5,979		3,951		6,048		6,015		5,900




Other	14,000		18,460		15,339		19,244		20,003
Total non-interest expense	193,698		195,174		191,020		189,779		191,425
Income before income taxes	59,776		135,492		139,181		137,198		119,915
Less income taxes	10,173		28,214		29,101		28,899		22,860
Net income	49,603		107,278		110,080		108,299		97,055
Less non-controlling interest expense (income)			(2,254)		398		838		328		(83)
Net income attributable to Commerce Bancshares, Inc.			51,857		106,880		109,242		107,971		97,138
Less preferred stock dividends	2,250		2,250		2,250		2,250		2,250
Net income available to common shareholders			$49,607		$104,630		$106,992		$105,721		$94,888
Net income per common share — basic			$.44		$.94		$.93		$.91		$.81
Net income per common share — diluted			$.44		$.93		$.93		$.91		$.81

OTHER INFORMATION
Return on total average assets	.80	%	1.65	%	1.72	%	1.73	%	1.58	%
Return on average common equity ⁽¹⁾			6.48		13.90		14.21		14.46		13.64
Efficiency ratio ⁽²⁾	59.17		56.29		56.66		55.88		58.76
Effective tax rate	16.40		20.88		21.04		21.11		19.05
Net yield on interest earning assets			3.33		3.36		3.43		3.61		3.52
Tax equivalent net interest income	$204,402		$206,156		$206,958		$215,203		$207,104


(Unaudited) (In thousands)	March 31, 2020		December 31, 2019		March 31, 2019
ASSETS
Loans
Business	$	5,773,865	$	5,565,449	$	5,175,541
Real estate — construction and land	873,402		899,377		925,269
Real estate — business	2,960,308		2,833,554		2,859,614
Real estate — personal	2,464,819		2,354,760		2,125,087
Consumer	1,941,787		1,964,145		1,893,212
Revolving home equity	349,735		349,251		364,010
Consumer credit card	706,753		764,977		772,396
Overdrafts	3,143		6,304		5,593
Total loans	15,073,812		14,737,817		14,120,722
Allowance for credit losses on loans	(171,653)		(160,682)		(160,682)
Net loans	14,902,159		14,577,135		13,960,040
Loans held for sale	6,214		13,809		20,085
Investment securities:
Available for sale debt securities	8,678,586		8,571,626		8,627,890
Trading debt securities	24,291		28,161		30,427
Equity securities	4,038		4,209		4,694
Other securities	155,074		137,892		129,504
Total investment securities	8,861,989		8,741,888		8,792,515
Federal funds sold and short-term securities purchased under agreements to resell	400		—		250
Long-term securities purchased under agreements to resell	850,000		850,000		700,000
Interest earning deposits with banks	474,156		395,850		166,077
Cash and due from banks	401,185		491,615		428,018
Premises and equipment — net	369,745		370,637		362,679
Goodwill	138,921		138,921		138,921
Other intangible assets — net	8,433		9,534		8,511
Other assets	779,815		476,400		456,375
Total assets	$	26,793,017	$	26,065,789	$	25,033,471
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	6,952,236	$	6,890,687	$	6,298,724
Savings, interest checking and money market	12,049,279		11,621,716		11,799,346
Certificates of deposit of less than $100,000	619,758		626,157		599,289
Certificates of deposit of $100,000 and over	1,154,590		1,381,855		1,276,994
Total deposits	20,775,863		20,520,415		19,974,353
Federal funds purchased and securities sold under agreements to repurchase	1,428,013		1,850,772		1,722,751
Other borrowings	756,461		2,418		2,022
Other liabilities	580,216		553,712		291,132
Total liabilities	23,540,553		22,927,317		21,990,258
Stockholders’ equity:
Preferred stock	144,784		144,784		144,784
Common stock	563,978		563,978		559,432
Capital surplus	2,133,623		2,151,464		2,074,912
Retained earnings	224,643		201,562		307,193
Treasury stock	(69,149)		(37,548)		(60,547)
Accumulated other comprehensive income	253,136		110,444		11,981
Total stockholders’ equity	3,251,015		3,134,684		3,037,755
Non-controlling interest	1,449		3,788		5,458
Total equity	3,252,464		3,138,472		3,043,213
Total liabilities and equity	$	26,793,017	$	26,065,789	$	25,033,471


(Unaudited) (In thousands)	For the Three Months Ended
			March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
ASSETS:
Loans:
Business	$	5,493,657	$	5,362,020	$	5,263,312	$	5,142,794	$	5,084,920
Real estate — construction and land	924,086		901,367		920,206		908,777		907,062
Real estate — business	2,853,632		2,820,189		2,883,379		2,868,503		2,864,177
Real estate — personal	2,390,716		2,283,530		2,175,156		2,135,048		2,119,365
Consumer	1,950,491		1,961,631		1,924,434		1,907,979		1,929,202
Revolving home equity	350,256		347,527		354,040		361,673		370,962
Consumer credit card	727,569		749,056		763,377		766,080		781,167
Overdrafts	4,044		18,322		9,240		4,889		4,205
Total loans	14,694,451		14,443,642		14,293,144		14,095,743		14,061,060
Allowance for credit losses on loans	(139,482)		(159,776)		(160,387)		(161,403)		(159,275)
Net loans	14,554,969		14,283,866		14,132,757		13,934,340		13,901,785
Loans held for sale	12,875		15,363		19,882		20,731		18,350
Investment securities:
U.S. government and federal agency obligations	802,556		826,702		825,544		843,974		909,466
Government-sponsored enterprise obligations	134,296		184,973		181,929		199,506		199,480
State and municipal obligations	1,222,595		1,207,584		1,172,259		1,222,008		1,283,349
Mortgage-backed securities	4,685,782		4,685,794		4,712,508		4,614,703		4,360,428
Asset-backed securities	1,182,556		1,258,297		1,297,685		1,412,452		1,525,623
Other debt securities	321,733		331,167		334,218		331,459		335,612
Unrealized gain (loss) on debt securities	191,275		149,591		152,706		42,009		(48,925)
Total available for sale debt securities	8,540,793		8,644,108		8,676,849		8,666,111		8,565,033
Trading debt securities	34,055		32,518		29,622		30,169		25,411
Equity securities	4,273		4,200		4,705		4,717		4,568
Other securities	144,096		141,501		134,896		130,433		130,057
Total investment securities	8,723,217		8,822,327		8,846,072		8,831,430		8,725,069
Federal funds sold and short-term securities purchased under agreements to resell	326		714		1,080		1,601		4,797
Long-term securities purchased under agreements to resell	850,000		849,986		713,030		700,000		700,000
Interest earning deposits with banks	601,420		390,134		226,582		331,999		316,660
Other assets	1,368,464		1,315,395		1,292,191		1,251,555		1,197,261
Total assets	$	26,111,271	$	25,677,785	$	25,231,594	$	25,071,656	$	24,863,922

LIABILITIES AND EQUITY:
Non-interest bearing deposits	$	6,615,108	$	6,552,862	$	6,290,036	$	6,335,620	$	6,324,738
Savings	952,709		924,282		924,581		929,974		896,378
Interest checking and money market	10,777,400		10,618,347		10,409,111		10,642,648		10,762,550
Certificates of deposit of less than $100,000	622,840		626,944		620,138		605,440		590,200
Certificates of deposit of $100,000 and over	1,299,443		1,434,309		1,503,805		1,378,402		1,267,517
Total deposits	20,267,500		20,156,744		19,747,671		19,892,084		19,841,383
Borrowings:
Federal funds purchased and securities sold under agreements to repurchase	1,990,051		1,836,982		1,884,939		1,793,526		1,771,534
Other borrowings	161,698		94,471		77,248		1,318		1,248
Total borrowings	2,151,749		1,931,453		1,962,187		1,794,844		1,772,782
Other liabilities	466,980		458,094		390,560		307,433		284,018
Total liabilities	22,886,229		22,546,291		22,100,418		21,994,361		21,898,183
Equity	3,225,042		3,131,494		3,131,176		3,077,295		2,965,739
Total liabilities and equity	$	26,111,271	$	25,677,785	$	25,231,594	$	25,071,656	$	24,863,922


(Unaudited)	For the Three Months Ended
			March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
ASSETS:
Loans:
Business⁽¹⁾	3.50	%	3.59	%	3.85	%	4.02	%	4.07	%
Real estate — construction and land	4.78		5.05		5.46		5.63		5.73
Real estate — business	4.16		4.22		4.42		4.60		4.61
Real estate — personal	3.83		3.85		3.91		3.97		4.00
Consumer	4.78		4.76		4.88		4.77		4.73
Revolving home equity	4.61		4.76		5.17		5.20		5.17
Consumer credit card	12.26		12.11		12.42		12.33		12.18
Overdrafts	—		—		—		—		—
Total loans	4.39		4.47		4.71		4.82		4.85
Loans held for sale	6.15		5.32		6.15		6.98		7.38
Investment securities:
U.S. government and federal agency obligations	2.09		2.16		2.36		4.66		.78
Government-sponsored enterprise obligations	4.19		2.17		2.69		2.32		2.35
State and municipal obligations⁽¹⁾	3.11		3.05		3.14		3.18		3.19
Mortgage-backed securities	2.37		2.72		2.61		2.70		2.76
Asset-backed securities	2.63		2.62		2.80		2.79		2.70
Other debt securities	2.94		2.82		2.63		2.68		2.69
Total available for sale debt securities	2.54		2.69		2.69		2.97		2.59
Trading debt securities⁽¹⁾	2.52		2.81		2.91		3.14		3.24
Equity securities ⁽¹⁾	46.78		49.40		35.67		35.97		37.55
Other securities ⁽¹⁾	5.31		6.58		6.19		6.69		5.73
Total investment securities	2.61		2.78		2.76		3.04		2.66
Federal funds sold and short-term securities purchased under agreements to resell	2.47		2.22		2.57		2.76		2.79
Long-term securities purchased under agreements to resell	3.53		2.26		2.01		2.11		2.18
Interest earning deposits with banks	.86		1.61		2.17		2.40		2.42
Total interest earning assets	3.66		3.75		3.90		4.05		3.93

LIABILITIES AND EQUITY:
Interest bearing deposits:
Savings	.11		.11		.11		.11		.11
Interest checking and money market	.30		.35		.38		.38		.35
Certificates of deposit of less than $100,000	1.15		1.16		1.11		1.01		.87
Certificates of deposit of $100,000 and over	1.62		1.79		1.99		2.02		1.92
Total interest bearing deposits	.45		.52		.58		.55		.51
Borrowings:
Federal funds purchased and securities sold under agreements to repurchase	.96		1.20		1.74		1.80		1.72
Other borrowings	.82		2.05		2.33		1.52		1.62
Total borrowings	.95		1.25		1.76		1.80		1.72
Total interest bearing liabilities	.52	%	.61	%	.73	%	.70	%	.65	%

Net yield on interest earning assets	3.33	%	3.36	%	3.43	%	3.61	%	3.52	%


			CBSH
1000 Walnut Street / Suite 700 / Kansas City, Missouri 64106 / 816.234.2000


	For the Three Months Ended
(Unaudited) (In thousands, except per share data)	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period	$	160,682		$	160,682		$	161,182		$	160,682		$	159,932
Adoption of ASU 2016-13	(21,039)			—			—			—			—
Provision for credit losses on loans	42,868			15,206			10,963			11,806			12,463
Net charge-offs (recoveries):
Commercial portfolio:
Business	(373)			3,036			335			284			447
Real estate — construction and land	—			—			—			(101)			(16)
Real estate — business	(21)			35			(44)			(14)			(37)
	(394)			3,071			291			169			394
Personal banking portfolio:
Consumer credit card	9,157			8,829			8,568			9,066			8,958
Consumer	1,711			2,838			2,069			1,723			1,924
Overdraft	426			507			446			253			317
Real estate — personal	(4)			6			(30)			(21)			101
Revolving home equity	(38)			(45)			119			116			19
	11,252			12,135			11,172			11,137			11,319
Total net loan charge-offs	10,858			15,206			11,463			11,306			11,713
Balance at end of period	$	171,653		$	160,682		$	160,682		$	161,182		$	160,682
LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$	32,251		$	1,075		$	1,075		$	1,075		$	1,075

NET CHARGE-OFF RATIOS*
Commercial portfolio:
Business	(.03)		%	.22		%	.03		%	.02		%	.04		%
Real estate — construction and land	—			—			—			(.04)			(.01)
Real estate — business	—			—			(.01)			—			(.01)
	(.02)			.13			.01			.01			.02
Personal banking portfolio:
Consumer credit card	5.06			4.68			4.45			4.75			4.65
Consumer	.35			.57			.43			.36			.40
Overdraft	42.37			10.98			19.15			20.76			30.57
Real estate — personal	—			—			(.01)			—			.02
Revolving home equity	(.04)			(.05)			.13			.13			.02
	.83			.90			.85			.86			.88
Total	.30		%	.42		%	.32		%	.32		%	.34		%

CREDIT QUALITY RATIOS
Non-performing assets to total loans	.07		%	.07		%	.08		%	.08		%	.09		%
Non-performing assets to total assets	.04			.04			.05			.05			.05
Allowance for credit losses on loans to total loans	1.14			1.09			1.11			1.13			1.14

NON-PERFORMING ASSETS
Non-accrual loans:
Business	$	7,356		$	7,489		$	7,753		$	8,428		$	8,569
Real estate — construction and land	2			2			3			3			4
Real estate — business	1,532			1,030			2,359			950			1,746
Real estate — personal	1,743			1,699			1,618			1,752			1,848




Total	10,633			10,220			11,733			11,133			12,167
Foreclosed real estate	422			365			502			897			737
Total non-performing assets	$	11,055		$	10,585		$	12,235		$	12,030		$	12,904

Loans past due 90 days and still accruing interest				$	16,520		$	19,859		$	16,308		$	16,532		$	16,655