CBSH 8-K

Commerce Bancshares Inc /Mo/ (CBSH)

8-K 2020-10-20 For: 2020-10-20

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Added on April 11, 2026

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	For the Three Months Ended															For the Nine Months Ended
(Unaudited) (Dollars in thousands, except per share data)	September 30, 2020			June 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
FINANCIAL SUMMARY
Net interest income	$215,962			$203,057			$203,512			$620,084			$618,634
Non-interest income	129,572			117,515			132,743			370,750			381,242
Total revenue	345,534			320,572			336,255			990,834			999,876
Investment securities gains (losses), net	16,155			(4,129)			4,909			(1,275)			3,874
Provision for credit losses	3,101			80,539			10,963			141,593			35,232
Non-interest expense	190,858			187,512			191,020			572,068			572,224
Income before taxes	167,730			48,392			139,181			275,898			396,294
Income taxes	34,375			9,661			29,101			54,209			80,860
Non-controlling interest (income) expense	907			(1,132)			838			(2,479)			1,083
Net income attributable to Commerce Bancshares, Inc.				132,448			39,863			109,242			224,168			314,351
Preferred stock dividends	7,466			2,250			2,250			11,966			6,750
Net income available to common shareholders				$124,982			$37,613			$106,992			$212,202			$307,601
Earnings per common share:
Net income — basic	$1.12			$.34			$.93			$1.90			$2.65
Net income — diluted	$1.11			$.34			$.93			$1.89			$2.65
Effective tax rate	20.61		%	19.51		%	21.04		%	19.47		%	20.46		%
Tax equivalent net interest income	$219,118			$206,253			$206,958			$629,773			$629,265
Average total interest earning assets ⁽¹⁾	$	29,352,970		$	28,193,312		$	23,947,084		$	27,419,514		$	23,920,745
Diluted wtd. average shares outstanding	110,899,197			110,896,858			113,249,070			111,056,754			114,758,916

RATIOS
Average loans to deposits ⁽²⁾	66.23		%	69.22		%	72.48		%	69.12		%	71.47		%
Return on total average assets	1.71			.54			1.72			1.04			1.68

Return on average common equity ⁽³⁾	15.21			4.77			14.21			8.93			14.11
Non-interest income to total revenue	37.50			36.66			39.48			37.42			38.13
Efficiency ratio ⁽⁴⁾	55.00			58.10			56.66			57.37			57.08
Net yield on interest earning assets	2.97			2.94			3.43			3.07			3.52

EQUITY SUMMARY
Cash dividends per common share	$.270			$.270			$.248			$.810			$.744
Cash dividends on common stock	$30,174			$30,174			$27,993			$90,640			$85,533
Cash dividends on preferred stock ⁽⁷⁾	$7,466			$2,250			$2,250			$11,966			$6,750

Book value per common share ⁽⁵⁾	$29.64			$28.81			$26.27
Market value per common share ⁽⁵⁾	$56.29			$59.47			$57.76
High market value per common share	$62.09			$69.77			$58.90
Low market value per common share	$53.03			$48.06			$52.05
Common shares outstanding ⁽⁵⁾	111,532,580			111,533,315			112,732,983
Tangible common equity to tangible assets ⁽⁶⁾	10.11		%	10.12		%	10.95		%
Tier I leverage ratio	9.39		%	9.88		%	11.32		%

OTHER QTD INFORMATION
Number of bank/ATM locations	308			312			316
Full-time equivalent employees	4,825			4,856			4,873


	For the Three Months Ended															For the Nine Months Ended
(Unaudited) (In thousands, except per share data)	September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		September 30, 2020		September 30, 2019
Interest income	$223,114		$213,323		$221,485		$226,665		$231,743		$657,922		$698,020
Interest expense	7,152		10,266		20,420		24,006		28,231		37,838		79,386
Net interest income	215,962		203,057		201,065		202,659		203,512		620,084		618,634
Provision for credit losses	3,101		80,539		57,953		15,206		10,963		141,593		35,232
Net interest income after credit losses			212,861		122,518		143,112		187,453		192,549		478,491		583,402
NON-INTEREST INCOME
Bank card transaction fees	37,873		33,745		40,200		41,079		44,510		111,818		126,800
Trust fees	40,769		37,942		39,965		40,405		39,592		118,676		115,223
Deposit account charges and other fees			23,107		22,279		23,677		24,974		24,032		69,063		71,009
Capital market fees	3,194		3,772		3,790		2,536		1,787		10,756		5,610
Consumer brokerage services	4,011		3,011		4,077		4,139		4,030		11,099		11,665
Loan fees and sales	9,769		4,649		3,235		3,465		4,755		17,653		12,302
Other	10,849		12,117		8,719		26,863		14,037		31,685		38,633
Total non-interest income	129,572		117,515		123,663		143,461		132,743		370,750		381,242





INVESTMENT SECURITIES GAINS (LOSSES), NET			16,155		(4,129)		(13,301)		(248)		4,909		(1,275)		3,874
NON-INTEREST EXPENSE
Salaries and employee benefits	127,308		126,759		128,937		126,901		123,836		383,004		366,026
Net occupancy	12,058		11,269		11,748		12,218		12,293		35,075		34,939
Equipment	4,737		4,755		4,821		4,859		4,941		14,313		14,202
Supplies and communication	4,141		4,427		4,658		4,851		5,106		13,226		15,543
Data processing and software	23,610		23,837		23,555		23,934		23,457		71,002		68,965
Marketing	4,926		3,801		5,979		3,951		6,048		14,706		17,963




Other	14,078		12,664		14,000		18,460		15,339		40,742		54,586
Total non-interest expense	190,858		187,512		193,698		195,174		191,020		572,068		572,224
Income before income taxes	167,730		48,392		59,776		135,492		139,181		275,898		396,294
Less income taxes	34,375		9,661		10,173		28,214		29,101		54,209		80,860
Net income	133,355		38,731		49,603		107,278		110,080		221,689		315,434
Less non-controlling interest expense (income)			907		(1,132)		(2,254)		398		838		(2,479)		1,083
Net income attributable to Commerce Bancshares, Inc.			132,448		39,863		51,857		106,880		109,242		224,168		314,351
Less preferred stock dividends	7,466		2,250		2,250		2,250		2,250		11,966		6,750
Net income available to common shareholders			$124,982		$37,613		$49,607		$104,630		$106,992		$212,202		$307,601
Net income per common share — basic			$1.12		$.34		$.44		$.94		$.93		$1.90		$2.65
Net income per common share — diluted			$1.11		$.34		$.44		$.93		$.93		$1.89		$2.65

OTHER INFORMATION
Return on total average assets	1.71	%	.54	%	.80	%	1.65	%	1.72	%	1.04	%	1.68	%
Return on average common equity ⁽¹⁾			15.21		4.77		6.48		13.90		14.21		8.93		14.11
Efficiency ratio ⁽²⁾	55.00		58.10		59.17		56.29		56.66		57.37		57.08
Effective tax rate	20.61		19.51		16.40		20.88		21.04		19.47		20.46
Net yield on interest earning assets			2.97		2.94		3.33		3.36		3.43		3.07		3.52
Tax equivalent net interest income	$219,118		$206,253		$204,402		$206,156		$206,958		$629,773		$629,265


(Unaudited) (In thousands)	September 30, 2020		June 30, 2020		September 30, 2019
ASSETS
Loans
Business	$	6,683,413	$	6,858,217	$	5,393,268
Real estate — construction and land	1,009,729		932,022		932,737
Real estate — business	2,993,192		2,941,163		2,833,146
Real estate — personal	2,753,867		2,690,542		2,226,663
Consumer	2,006,360		1,966,707		1,953,690
Revolving home equity	324,203		334,627		349,111
Consumer credit card	647,893		666,597		766,743
Overdrafts	2,270		5,179		7,236
Total loans	16,420,927		16,395,054		14,462,594
Allowance for credit losses on loans	(236,360)		(240,744)		(160,682)
Net loans	16,184,567		16,154,310		14,301,912
Loans held for sale	39,483		12,785		20,064
Investment securities:
Available for sale debt securities	11,539,061		10,317,427		8,660,419
Trading debt securities	25,805		28,813		35,918
Equity securities	4,203		4,128		4,186
Other securities	122,532		117,761		147,211
Total investment securities	11,691,601		10,468,129		8,847,734
Federal funds sold and short-term securities purchased under agreements to resell	2,275		—		2,850
Long-term securities purchased under agreements to resell	850,000		850,000		850,000
Interest earning deposits with banks	1,171,697		1,404,968		344,129
Cash and due from banks	357,616		391,268		512,254
Premises and equipment — net	377,853		368,565		365,949
Goodwill	138,921		138,921		138,921
Other intangible assets — net	7,183		7,179		9,139
Other assets	632,621		699,996		483,527
Total assets	$	31,453,817	$	30,496,121	$	25,876,479
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	10,727,827	$	9,700,261	$	6,816,527
Savings, interest checking and money market	12,983,505		12,792,993		11,424,404
Certificates of deposit of less than $100,000	556,870		590,635		627,630
Certificates of deposit of $100,000 and over	1,433,577		1,443,078		1,441,590
Total deposits	25,701,779		24,526,967		20,310,151
Federal funds purchased and securities sold under agreements to repurchase	1,653,064		1,740,438		1,641,274
Other borrowings	782		1,475		257,383
Other liabilities	791,928		869,072		561,657
Total liabilities	28,147,553		27,137,952		22,770,465
Stockholders’ equity:
Preferred stock	—		144,784		144,784
Common stock	563,978		563,978		559,432
Capital surplus	2,140,410		2,136,874		2,042,643
Retained earnings	326,890		232,082		463,231
Treasury stock	(69,050)		(69,112)		(251,663)
Accumulated other comprehensive income	343,435		349,261		144,173
Total stockholders’ equity	3,305,663		3,357,867		3,102,600
Non-controlling interest	601		302		3,414
Total equity	3,306,264		3,358,169		3,106,014
Total liabilities and equity	$	31,453,817	$	30,496,121	$	25,876,479


(Unaudited) (In thousands)	For the Three Months Ended
			September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019
ASSETS:
Loans:
Business	$	6,709,200	$	6,760,827	$	5,493,657	$	5,362,020	$	5,263,312
Real estate — construction and land	974,346		895,648		924,086		901,367		920,206
Real estate — business	2,989,652		2,962,076		2,853,632		2,820,189		2,883,379
Real estate — personal	2,722,300		2,582,484		2,390,716		2,283,530		2,175,156
Consumer	1,992,314		1,944,265		1,950,491		1,961,631		1,924,434
Revolving home equity	329,361		343,210		350,256		347,527		354,040
Consumer credit card	646,185		663,911		727,569		749,056		763,377
Overdrafts	2,689		2,912		4,044		18,322		9,240
Total loans	16,366,047		16,155,333		14,694,451		14,443,642		14,293,144
Allowance for credit losses on loans	(240,286)		(171,616)		(139,482)		(159,776)		(160,387)
Net loans	16,125,761		15,983,717		14,554,969		14,283,866		14,132,757
Loans held for sale	24,728		6,363		12,875		15,363		19,882
Investment securities:
U.S. government and federal agency obligations	770,361		776,240		802,556		826,702		825,544
Government-sponsored enterprise obligations	102,749		114,518		134,296		184,973		181,929
State and municipal obligations	1,767,526		1,285,427		1,222,595		1,207,584		1,172,259
Mortgage-backed securities	6,259,926		5,325,720		4,685,782		4,685,794		4,712,508
Asset-backed securities	1,520,988		1,342,518		1,182,556		1,258,297		1,297,685
Other debt securities	514,166		406,665		321,733		331,167		334,218
Unrealized gain (loss) on debt securities	368,154		281,457		191,275		149,591		152,706
Total available for sale debt securities	11,303,870		9,532,545		8,540,793		8,644,108		8,676,849
Trading debt securities	27,267		31,981		34,055		32,518		29,622
Equity securities	4,193		4,137		4,273		4,200		4,705
Other securities	120,253		139,250		144,096		141,501		134,896
Total investment securities	11,455,583		9,707,913		8,723,217		8,822,327		8,846,072
Federal funds sold and short-term securities purchased under agreements to resell	337		92		326		714		1,080
Long-term securities purchased under agreements to resell	849,994		850,000		850,000		849,986		713,030
Interest earning deposits with banks	1,024,435		1,755,068		601,420		390,134		226,582
Other assets	1,389,683		1,461,528		1,368,464		1,315,395		1,292,191
Total assets	$	30,870,521	$	29,764,681	$	26,111,271	$	25,677,785	$	25,231,594

LIABILITIES AND EQUITY:
Non-interest bearing deposits	$	9,801,562	$	8,843,408	$	6,615,108	$	6,552,862	$	6,290,036
Savings	1,193,079		1,111,397		952,709		924,282		924,581
Interest checking and money market	11,731,494		11,441,694		10,777,400		10,618,347		10,409,111
Certificates of deposit of less than $100,000	573,207		605,136		622,840		626,944		620,138
Certificates of deposit of $100,000 and over	1,447,968		1,346,069		1,299,443		1,434,309		1,503,805
Total deposits	24,747,310		23,347,704		20,267,500		20,156,744		19,747,671
Borrowings:
Federal funds purchased and securities sold under agreements to repurchase	1,855,971		1,991,971		1,990,051		1,836,982		1,884,939
Other borrowings	1,225		345,162		161,698		94,471		77,248
Total borrowings	1,857,196		2,337,133		2,151,749		1,931,453		1,962,187
Other liabilities	899,890		763,524		466,980		458,094		390,560
Total liabilities	27,504,396		26,448,361		22,886,229		22,546,291		22,100,418
Equity	3,366,125		3,316,320		3,225,042		3,131,494		3,131,176
Total liabilities and equity	$	30,870,521	$	29,764,681	$	26,111,271	$	25,677,785	$	25,231,594


(Unaudited)	For the Three Months Ended
			September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019
ASSETS:
Loans:
Business⁽¹⁾	2.95	%	2.91	%	3.50	%	3.59	%	3.85	%
Real estate — construction and land	3.74		3.95		4.78		5.05		5.46
Real estate — business	3.53		3.71		4.16		4.22		4.42
Real estate — personal	3.56		3.69		3.83		3.85		3.91
Consumer	4.19		4.48		4.78		4.76		4.88
Revolving home equity	3.29		3.50		4.61		4.76		5.17
Consumer credit card	11.40		11.76		12.26		12.11		12.42
Overdrafts	—		—		—		—		—
Total loans	3.69		3.80		4.39		4.47		4.71
Loans held for sale	4.25		8.03		6.15		5.32		6.15
Investment securities:
U.S. government and federal agency obligations	3.71		.46		2.09		2.16		2.36
Government-sponsored enterprise obligations	2.17		3.51		4.19		2.17		2.69
State and municipal obligations⁽¹⁾	2.53		2.97		3.11		3.05		3.14
Mortgage-backed securities	1.95		2.17		2.37		2.72		2.61
Asset-backed securities	1.90		2.25		2.63		2.62		2.80
Other debt securities	2.35		2.49		2.94		2.82		2.63
Total available for sale debt securities	2.18		2.18		2.54		2.69		2.69
Trading debt securities⁽¹⁾	1.66		2.93		2.52		2.81		2.91
Equity securities ⁽¹⁾	47.15		48.42		46.78		49.40		35.67
Other securities ⁽¹⁾	6.74		4.36		5.31		6.58		6.19
Total investment securities	2.24		2.24		2.61		2.78		2.76
Federal funds sold and short-term securities purchased under agreements to resell	—		—		2.47		2.22		2.57
Long-term securities purchased under agreements to resell	5.26		5.08		3.53		2.26		2.01
Interest earning deposits with banks	.10		.10		.86		1.61		2.17
Total interest earning assets	3.07		3.09		3.66		3.75		3.90

LIABILITIES AND EQUITY:
Interest bearing deposits:
Savings	.09		.09		.11		.11		.11
Interest checking and money market	.10		.13		.30		.35		.38
Certificates of deposit of less than $100,000	.71		.93		1.15		1.16		1.11
Certificates of deposit of $100,000 and over	.69		1.08		1.62		1.79		1.99
Total interest bearing deposits	.18		.25		.45		.52		.58
Borrowings:
Federal funds purchased and securities sold under agreements to repurchase	.09		.12		.96		1.20		1.74
Other borrowings	—		.82		.82		2.05		2.33
Total borrowings	.09		.22		.95		1.25		1.76
Total interest bearing liabilities	.17	%	.25	%	.52	%	.61	%	.73	%

Net yield on interest earning assets	2.97	%	2.94	%	3.33	%	3.36	%	3.43	%


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


	For the Three Months Ended																					For the Nine Months Ended
(Unaudited) (In thousands, except per share data)	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019			September 30, 2020			September 30, 2019
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period	$	240,744		$	171,653		$	160,682		$	160,682		$	161,182		$	160,682		$	159,932
Adoption of ASU 2016-13	—			—			(21,039)			—			—			(21,039)			—
Provision for credit losses on loans	3,200			77,491			42,868			15,206			10,963			123,559			35,232
Net charge-offs (recoveries):
Commercial portfolio:
Business	208			3,249			(373)			3,036			335			3,084			1,066
Real estate — construction and land	(1)			—			—			—			—			(1)			(117)
Real estate — business	(13)			(6)			(21)			35			(44)			(40)			(95)
	194			3,243			(394)			3,071			291			3,043			854
Personal banking portfolio:
Consumer credit card	7,263			3,584			9,157			8,829			8,568			20,004			26,592
Consumer	211			1,362			1,711			2,838			2,069			3,284			5,716
Overdraft	200			316			426			507			446			942			1,016
Real estate — personal	(198)			(71)			(4)			6			(30)			(273)			50
Revolving home equity	(86)			(34)			(38)			(45)			119			(158)			254
	7,390			5,157			11,252			12,135			11,172			23,799			33,628
Total net loan charge-offs	7,584			8,400			10,858			15,206			11,463			26,842			34,482
Balance at end of period	$	236,360		$	240,744		$	171,653		$	160,682		$	160,682		$	236,360		$	160,682
LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$	35,200		$	35,299		$	32,250		$	1,075		$	1,075

NET CHARGE-OFF RATIOS ⁽¹⁾
Commercial portfolio:
Business	.01		%	.19		%	(.03		%)	.22		%	.03		%	.07		%	.03		%
Real estate — construction and land	—			—			—			—			—			—			(.02)
Real estate — business	—			—			—			—			(.01)			—			—
	.01			.12			(.02)			.13			.01			.04			.01
Personal banking portfolio:
Consumer credit card	4.47			2.17			5.06			4.68			4.45			3.93			4.62
Consumer	.04			.28			.35			.57			.43			.22			.40
Overdraft	29.59			43.65			42.37			10.98			19.15			39.16			22.16
Real estate — personal	(.03)			(.01)			—			—			(.01)			(.01)			—
Revolving home equity	(.10)			(.04)			(.04)			(.05)			.13			(.06)			.09
	.52			.37			.83			.90			.85			.57			.86
Total	.18		%	.21		%	.30		%	.42		%	.32		%	.23		%	.33		%

CREDIT QUALITY RATIOS