Commerce Bancshares, Inc. Reports Third Quarter Earnings Per Share of $1.07
For the nine months ended
In announcing these results,
“Credit quality remains excellent, and we continue to maintain strong levels of capital. Non-accrual loans were .11% of total loans, flat when compared to the previous quarter. Our tangible common equity to tangible assets ratio increased to 10.47% as interest rates declined, and book value per share increased 9.9% during the quarter.”
Third Quarter 2024 Financial Highlights:
-
Net interest income was
$262.4 million , a$102 thousand increase over the prior quarter. The net yield on interest earning assets decreased five basis points to 3.50%. -
Non-interest income totaled
$159.0 million , an increase of$16.1 million over the same quarter last year. -
Trust fees grew
$5.5 million , or 11.1%, compared to the same period last year, mostly due to higher private client fees. -
Non-interest expense totaled
$237.6 million , an increase of$9.6 million , or 4.2%, compared to the same quarter last year. -
Average loan balances totaled
$17.0 billion , a decrease of .9% compared to the prior quarter. -
Total average available for sale debt securities decreased
$87.8 million from the prior quarter to$8.7 billion , at fair value. During the third quarter of 2024, the unrealized loss on available for sale debt securities decreased$287.4 million to$786.4 million , at period end. -
Total average deposits increased
$65.3 million , or .3%, compared to the prior quarter. The average rate paid on interest bearing deposits in the current quarter was 2.00%. -
The ratio of annualized net loan charge-offs to average loans was .22% compared to .23% in the prior quarter.
-
The allowance for credit losses on loans increased
$2.3 million during the third quarter of 2024 to$160.8 million , and the ratio of the allowance for credit losses on loans to total loans was .94%, atSeptember 30, 2024 , compared to .92% atJune 30, 2024 . -
Total assets at
September 30, 2024 were$31.5 billion , an increase of$924.2 million , or 3.0%, compared to the prior quarter. - For the quarter, the return on average assets was 1.80%, the return on average equity was 16.81%, and the efficiency ratio was 56.3%.
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.
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FINANCIAL HIGHLIGHTS |
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For the Three Months Ended |
For the Nine Months
|
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(Unaudited) (Dollars in thousands, except per share data) |
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|
|||||
FINANCIAL SUMMARY |
|
|
|
|
|
|
|||||
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
159,025 |
|
152,244 |
|
142,949 |
|
460,117 |
|
428,166 |
|
Total revenue |
|
421,376 |
|
414,493 |
|
391,496 |
|
1,233,716 |
|
1,177,874 |
|
Investment securities gains (losses) |
|
3,872 |
|
3,233 |
|
4,298 |
|
6,846 |
|
7,384 |
|
Provision for credit losses |
|
9,140 |
|
5,468 |
|
11,645 |
|
19,395 |
|
29,572 |
|
Non-interest expense |
|
237,600 |
|
232,214 |
|
228,010 |
|
715,511 |
|
679,728 |
|
Income before taxes |
|
178,508 |
|
180,044 |
|
156,139 |
|
505,656 |
|
475,958 |
|
Income taxes |
|
38,245 |
|
38,602 |
|
33,439 |
|
108,499 |
|
102,242 |
|
Non-controlling interest expense |
|
2,256 |
|
1,889 |
|
2,104 |
|
6,934 |
|
5,879 |
|
Net income attributable to |
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
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|
|
|
|
|
|||||
Net income — basic |
|
|
|
|
|
|
|
|
|
|
|
Net income — diluted |
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
21.70 |
% |
21.67 |
% |
21.71 |
% |
21.76 |
% |
21.75 |
% |
Fully-taxable equivalent net interest income |
|
|
|
|
|
|
|
|
|
|
|
Average total interest earning assets (1) |
|
|
|
|
|
|
|
|
|
|
|
Diluted wtd. average shares outstanding |
|
127,995,072 |
|
128,610,693 |
|
130,008,840 |
|
128,595,025 |
|
130,227,782 |
|
RATIOS |
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|
|
|
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|
|||||
Average loans to deposits (2) |
|
69.93 |
% |
70.73 |
% |
66.39 |
% |
70.17 |
% |
65.85 |
% |
Return on total average assets |
|
1.80 |
|
1.86 |
|
1.49 |
|
1.71 |
|
1.53 |
|
Return on average equity(3) |
|
16.81 |
|
18.52 |
|
17.73 |
|
16.92 |
|
18.42 |
|
Non-interest income to total revenue |
|
37.74 |
|
36.73 |
|
36.51 |
|
37.30 |
|
36.35 |
|
Efficiency ratio (4) |
|
56.31 |
|
55.95 |
|
58.15 |
|
57.92 |
|
57.62 |
|
Net yield on interest earning assets |
|
3.50 |
|
3.55 |
|
3.11 |
|
3.46 |
|
3.16 |
|
EQUITY SUMMARY |
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|
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|
|||||
Cash dividends per share |
|
|
|
|
|
|
|
|
|
|
|
Cash dividends on common stock |
|
|
|
|
|
|
|
|
|
|
|
Book value per share (5) |
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|
|
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||
Market value per share (5) |
|
|
|
|
|
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||
High market value per share |
|
|
|
|
|
|
|
|
|
||
Low market value per share |
|
|
|
|
|
|
|
|
|
||
Common shares outstanding (5) |
|
128,378,890 |
|
129,004,231 |
|
130,586,153 |
|
|
|
||
Tangible common equity to tangible assets (6) |
|
10.47 |
% |
9.82 |
% |
7.78 |
% |
|
|
||
Tier I leverage ratio |
|
12.31 |
% |
12.13 |
% |
10.87 |
% |
|
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||
OTHER QTD INFORMATION |
|
|
|
|
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|
|||||
Number of bank/ATM locations |
|
244 |
|
247 |
|
266 |
|
|
|
||
Full-time equivalent employees |
|
4,711 |
|
4,724 |
|
4,714 |
|
|
|
||
(1) Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities. |
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(2) Includes loans held for sale. |
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(3) Annualized net income attributable to |
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(4) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue. |
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(5) As of period end. |
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(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). |
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All share and per share amounts have been restated to reflect the 5% stock dividend distributed in |
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CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited) (In thousands, except per share data) |
|
For the Three Months Ended |
For the Nine Months
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
109,717 |
|
107,114 |
|
109,722 |
|
114,188 |
|
112,615 |
|
326,553 |
|
268,974 |
|
Net interest income |
|
262,351 |
|
262,249 |
|
248,999 |
|
248,421 |
|
248,547 |
|
773,599 |
|
749,708 |
|
Provision for credit losses |
|
9,140 |
|
5,468 |
|
4,787 |
|
5,879 |
|
11,645 |
|
19,395 |
|
29,572 |
|
Net interest income after credit losses |
253,211 |
|
256,781 |
|
244,212 |
|
242,542 |
|
236,902 |
|
754,204 |
|
720,136 |
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|||||||
Trust fees |
|
54,689 |
|
52,291 |
|
51,105 |
|
49,154 |
|
49,207 |
|
158,085 |
|
141,800 |
|
Bank card transaction fees |
|
47,570 |
|
47,477 |
|
46,930 |
|
47,878 |
|
46,899 |
|
141,977 |
|
143,278 |
|
Deposit account charges and other fees |
25,380 |
|
25,325 |
|
24,151 |
|
23,517 |
|
23,090 |
|
74,856 |
|
67,475 |
|
|
Capital market fees |
|
5,995 |
|
4,760 |
|
3,892 |
|
4,269 |
|
3,524 |
|
14,647 |
|
9,831 |
|
Consumer brokerage services |
|
4,619 |
|
4,478 |
|
4,408 |
|
3,641 |
|
3,820 |
|
13,505 |
|
13,582 |
|
Loan fees and sales |
|
3,444 |
|
3,431 |
|
3,141 |
|
2,875 |
|
2,966 |
|
10,016 |
|
8,290 |
|
Other |
|
17,328 |
|
14,482 |
|
15,221 |
|
13,545 |
|
13,443 |
|
47,031 |
|
43,910 |
|
Total non-interest income |
|
159,025 |
|
152,244 |
|
148,848 |
|
144,879 |
|
142,949 |
|
460,117 |
|
428,166 |
|
INVESTMENT SECURITIES GAINS (LOSSES), NET |
3,872 |
|
3,233 |
|
(259 |
) |
7,601 |
|
4,298 |
|
6,846 |
|
7,384 |
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits |
|
153,122 |
|
149,120 |
|
151,801 |
|
147,456 |
|
146,805 |
|
454,043 |
|
436,607 |
|
Data processing and software |
|
32,194 |
|
31,529 |
|
31,153 |
|
31,141 |
|
30,744 |
|
94,876 |
|
87,617 |
|
Net occupancy |
|
13,411 |
|
12,544 |
|
13,574 |
|
13,927 |
|
13,948 |
|
39,529 |
|
39,702 |
|
Professional and other services |
|
8,830 |
|
8,617 |
|
8,648 |
|
9,219 |
|
8,293 |
|
26,095 |
|
26,979 |
|
Marketing |
|
7,278 |
|
5,356 |
|
4,036 |
|
6,505 |
|
6,167 |
|
16,670 |
|
18,006 |
|
Equipment |
|
5,286 |
|
5,091 |
|
5,010 |
|
5,137 |
|
4,697 |
|
15,387 |
|
14,411 |
|
Supplies and communication |
|
4,963 |
|
4,636 |
|
4,744 |
|
5,242 |
|
4,963 |
|
14,343 |
|
14,178 |
|
|
|
2,930 |
|
2,354 |
|
8,017 |
|
20,304 |
|
4,029 |
|
13,301 |
|
12,859 |
|
Other |
|
9,586 |
|
12,967 |
|
18,714 |
|
12,323 |
|
8,364 |
|
41,267 |
|
29,369 |
|
Total non-interest expense |
|
237,600 |
|
232,214 |
|
245,697 |
|
251,254 |
|
228,010 |
|
715,511 |
|
679,728 |
|
Income before income taxes |
|
178,508 |
|
180,044 |
|
147,104 |
|
143,768 |
|
156,139 |
|
505,656 |
|
475,958 |
|
Less income taxes |
|
38,245 |
|
38,602 |
|
31,652 |
|
32,307 |
|
33,439 |
|
108,499 |
|
102,242 |
|
Net income |
|
140,263 |
|
141,442 |
|
115,452 |
|
111,461 |
|
122,700 |
|
397,157 |
|
373,716 |
|
Less non-controlling interest expense (income) |
2,256 |
|
1,889 |
|
2,789 |
|
2,238 |
|
2,104 |
|
6,934 |
|
5,879 |
|
|
Net income attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share — basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share — diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
OTHER INFORMATION |
|
|
|
|
|
|
|
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Return on total average assets |
|
1.80 |
% |
1.86 |
% |
1.48 |
% |
1.38 |
% |
1.49 |
% |
1.71 |
% |
1.53 |
% |
Return on average equity (1) |
16.81 |
|
18.52 |
|
15.39 |
|
16.48 |
|
17.73 |
|
16.92 |
|
18.42 |
|
|
Efficiency ratio (2) |
|
56.31 |
|
55.95 |
|
61.67 |
|
63.80 |
|
58.15 |
|
57.92 |
|
57.62 |
|
Effective tax rate |
|
21.70 |
|
21.67 |
|
21.93 |
|
22.83 |
|
21.71 |
|
21.76 |
|
21.75 |
|
Net yield on interest earning assets |
3.50 |
|
3.55 |
|
3.33 |
|
3.17 |
|
3.11 |
|
3.46 |
|
3.16 |
|
|
Fully-taxable equivalent net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized net income attributable to |
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(2) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue. |
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The income statement above reflects the reclassification of non-interest income of |
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CONSOLIDATED BALANCE SHEETS - PERIOD END |
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(Unaudited) (In thousands) |
|
|
|
|
|||
ASSETS |
|
|
|
|
|||
Loans |
|
|
|
|
|||
Business |
|
|
|
|
|
|
|
Real estate — construction and land |
|
1,381,607 |
|
1,396,515 |
|
1,539,566 |
|
Real estate — business |
|
3,586,999 |
|
3,572,539 |
|
3,647,168 |
|
Real estate — personal |
|
3,043,391 |
|
3,055,182 |
|
3,024,639 |
|
Consumer |
|
2,108,281 |
|
2,145,609 |
|
2,125,804 |
|
Revolving home equity |
|
342,376 |
|
331,381 |
|
305,237 |
|
Consumer credit card |
|
574,746 |
|
566,925 |
|
574,829 |
|
Overdrafts |
|
4,272 |
|
4,190 |
|
3,753 |
|
Total loans |
|
17,090,000 |
|
17,163,065 |
|
17,129,326 |
|
Allowance for credit losses on loans |
|
(160,839 |
) |
(158,557 |
) |
(162,244 |
) |
Net loans |
|
16,929,161 |
|
17,004,508 |
|
16,967,082 |
|
Loans held for sale |
|
1,707 |
|
2,930 |
|
5,120 |
|
Investment securities: |
|
|
|
|
|||
Available for sale debt securities |
|
9,167,681 |
|
8,534,271 |
|
9,860,828 |
|
Trading debt securities |
|
42,645 |
|
45,499 |
|
35,564 |
|
Equity securities |
|
57,115 |
|
113,584 |
|
12,212 |
|
Other securities |
|
216,543 |
|
223,798 |
|
230,792 |
|
Total investment securities |
|
9,483,984 |
|
8,917,152 |
|
10,139,396 |
|
Federal funds sold |
|
10 |
|
— |
|
2,735 |
|
Securities purchased under agreements to resell |
|
475,000 |
|
475,000 |
|
450,000 |
|
Interest earning deposits with banks |
|
2,642,048 |
|
2,215,057 |
|
1,847,641 |
|
Cash and due from banks |
|
507,941 |
|
329,692 |
|
358,010 |
|
Premises and equipment — net |
|
469,986 |
|
467,256 |
|
460,830 |
|
|
|
146,539 |
|
146,539 |
|
146,539 |
|
Other intangible assets — net |
|
13,722 |
|
13,801 |
|
14,432 |
|
Other assets |
|
823,494 |
|
997,423 |
|
984,907 |
|
Total assets |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|||
Deposits: |
|
|
|
|
|||
Non-interest bearing |
|
|
|
|
|
|
|
Savings, interest checking and money market |
|
15,216,557 |
|
14,367,710 |
|
14,154,275 |
|
Certificates of deposit of less than |
|
1,113,962 |
|
1,010,251 |
|
1,210,169 |
|
Certificates of deposit of |
|
1,511,120 |
|
1,408,548 |
|
1,764,611 |
|
Total deposits |
|
25,237,792 |
|
24,279,260 |
|
25,090,457 |
|
Federal funds purchased and securities sold under agreements to repurchase |
|
2,182,229 |
|
2,551,399 |
|
2,745,181 |
|
Other borrowings |
|
10,201 |
|
3,984 |
|
503,589 |
|
Other liabilities |
|
609,831 |
|
576,380 |
|
438,199 |
|
Total liabilities |
|
28,040,053 |
|
27,411,023 |
|
28,777,426 |
|
Stockholders’ equity: |
|
|
|
|
|||
Common stock |
|
655,322 |
|
655,322 |
|
629,319 |
|
Capital surplus |
|
3,154,300 |
|
3,153,107 |
|
2,924,211 |
|
Retained earnings |
|
338,512 |
|
235,299 |
|
298,297 |
|
|
|
(139,149 |
) |
(98,176 |
) |
(76,888 |
) |
Accumulated other comprehensive income (loss) |
|
(576,904 |
) |
(807,817 |
) |
(1,193,534 |
) |
Total stockholders’ equity |
|
3,432,081 |
|
3,137,735 |
|
2,581,405 |
|
Non-controlling interest |
|
21,458 |
|
20,600 |
|
17,861 |
|
Total equity |
|
3,453,539 |
|
3,158,335 |
|
2,599,266 |
|
Total liabilities and equity |
|
|
|
|
|
|
|
|
||||||||||
AVERAGE BALANCE SHEETS |
||||||||||
(Unaudited) (In thousands) |
For the Three Months Ended |
|||||||||
|
|
|
|
|
||||||
ASSETS: |
|
|
|
|
|
|||||
Loans: |
|
|
|
|
|
|||||
Business |
|
|
|
|
|
|
|
|
|
|
Real estate — construction and land |
1,400,563 |
|
1,471,504 |
|
1,472,554 |
|
1,523,682 |
|
1,508,850 |
|
Real estate — business |
3,580,772 |
|
3,666,057 |
|
3,727,643 |
|
3,644,589 |
|
3,642,010 |
|
Real estate — personal |
3,047,563 |
|
3,044,943 |
|
3,031,193 |
|
3,027,664 |
|
2,992,500 |
|
Consumer |
2,129,483 |
|
2,127,650 |
|
2,082,490 |
|
2,117,268 |
|
2,102,281 |
|
Revolving home equity |
335,817 |
|
326,204 |
|
322,074 |
|
310,282 |
|
304,055 |
|
Consumer credit card |
559,410 |
|
552,896 |
|
562,892 |
|
568,112 |
|
564,039 |
|
Overdrafts |
5,460 |
|
4,856 |
|
7,696 |
|
5,258 |
|
5,341 |
|
Total loans |
17,025,865 |
|
17,174,474 |
|
17,080,067 |
|
17,058,084 |
|
16,968,303 |
|
Allowance for credit losses on loans |
(158,003 |
) |
(159,791 |
) |
(161,891 |
) |
(161,932 |
) |
(158,335 |
) |
Net loans |
16,867,862 |
|
17,014,683 |
|
16,918,176 |
|
16,896,152 |
|
16,809,968 |
|
Loans held for sale |
2,448 |
|
2,455 |
|
2,149 |
|
5,392 |
|
5,714 |
|
Investment securities: |
|
|
|
|
|
|||||
|
1,888,985 |
|
1,201,954 |
|
851,656 |
|
889,390 |
|
986,284 |
|
Government-sponsored enterprise obligations |
55,583 |
|
55,634 |
|
55,652 |
|
55,661 |
|
55,676 |
|
State and municipal obligations |
856,620 |
|
1,069,934 |
|
1,330,808 |
|
1,363,649 |
|
1,391,541 |
|
Mortgage-backed securities |
5,082,091 |
|
5,553,656 |
|
5,902,328 |
|
6,022,502 |
|
6,161,348 |
|
Asset-backed securities |
1,525,593 |
|
1,785,598 |
|
2,085,050 |
|
2,325,089 |
|
2,553,562 |
|
Other debt securities |
224,528 |
|
364,828 |
|
503,204 |
|
510,721 |
|
514,787 |
|
Unrealized gain (loss) on debt securities |
(961,695 |
) |
(1,272,127 |
) |
(1,274,125 |
) |
(1,595,845 |
) |
(1,458,141 |
) |
Total available for sale debt securities |
8,671,705 |
|
8,759,477 |
|
9,454,573 |
|
9,571,167 |
|
10,205,057 |
|
Trading debt securities |
47,440 |
|
46,565 |
|
40,483 |
|
37,234 |
|
35,044 |
|
Equity securities |
85,118 |
|
127,584 |
|
12,768 |
|
12,249 |
|
12,230 |
|
Other securities |
217,377 |
|
228,403 |
|
221,695 |
|
222,378 |
|
237,518 |
|
Total investment securities |
9,021,640 |
|
9,162,029 |
|
9,729,519 |
|
9,843,028 |
|
10,489,849 |
|
Federal funds sold |
12 |
|
1,612 |
|
599 |
|
1,194 |
|
2,722 |
|
Securities purchased under agreements to resell |
474,997 |
|
303,586 |
|
340,934 |
|
450,000 |
|
712,472 |
|
Interest earning deposits with banks |
2,565,188 |
|
2,099,777 |
|
1,938,381 |
|
2,387,415 |
|
2,337,744 |
|
Other assets |
1,648,321 |
|
1,651,808 |
|
1,715,716 |
|
1,797,849 |
|
1,750,222 |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
Non-interest bearing deposits |
|
|
|
|
|
|
|
|
|
|
Savings |
1,303,675 |
|
1,328,989 |
|
1,333,983 |
|
1,357,733 |
|
1,436,149 |
|
Interest checking and money market |
13,242,398 |
|
13,162,118 |
|
13,215,270 |
|
13,166,783 |
|
13,048,199 |
|
Certificates of deposit of less than |
1,055,683 |
|
1,003,798 |
|
976,804 |
|
1,097,224 |
|
1,423,965 |
|
Certificates of deposit of |
1,464,143 |
|
1,492,592 |
|
1,595,310 |
|
1,839,057 |
|
1,718,126 |
|
Total deposits |
24,350,733 |
|
24,285,452 |
|
24,449,970 |
|
25,209,451 |
|
25,565,629 |
|
Borrowings: |
|
|
|
|
|
|||||
Federal funds purchased |
206,644 |
|
265,042 |
|
328,216 |
|
473,534 |
|
508,851 |
|
Securities sold under agreements to repurchase |
2,351,870 |
|
2,254,849 |
|
2,511,959 |
|
2,467,118 |
|
2,283,020 |
|
Other borrowings |
496 |
|
838 |
|
76 |
|
179,587 |
|
685,222 |
|
Total borrowings |
2,559,010 |
|
2,520,729 |
|
2,840,251 |
|
3,120,239 |
|
3,477,093 |
|
Other liabilities |
405,490 |
|
399,080 |
|
410,310 |
|
421,402 |
|
367,741 |
|
Total liabilities |
27,315,233 |
|
27,205,261 |
|
27,700,531 |
|
28,751,092 |
|
29,410,463 |
|
Equity |
3,265,235 |
|
3,030,689 |
|
2,944,943 |
|
2,629,938 |
|
2,698,228 |
|
Total liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AVERAGE RATES |
||||||||||
(Unaudited) |
For the Three Months Ended |
|||||||||
|
|
|
|
|
||||||
ASSETS: |
|
|
|
|
|
|||||
Loans: |
|
|
|
|
|
|||||
Business(1) |
6.17 |
% |
6.11 |
% |
6.07 |
% |
5.91 |
% |
5.77 |
% |
Real estate — construction and land |
8.44 |
|
8.36 |
|
8.40 |
|
8.34 |
|
8.17 |
|
Real estate — business |
6.28 |
|
6.26 |
|
6.26 |
|
6.18 |
|
6.13 |
|
Real estate — personal |
4.10 |
|
4.04 |
|
3.95 |
|
3.85 |
|
3.73 |
|
Consumer |
6.64 |
|
6.56 |
|
6.40 |
|
6.21 |
|
5.97 |
|
Revolving home equity |
7.69 |
|
7.68 |
|
7.70 |
|
7.70 |
|
7.76 |
|
Consumer credit card |
14.01 |
|
13.96 |
|
14.11 |
|
13.83 |
|
13.77 |
|
Overdrafts |
— |
|
— |
|
— |
|
— |
|
— |
|
Total loans |
6.35 |
|
6.30 |
|
6.27 |
|
6.15 |
|
6.02 |
|
Loans held for sale |
6.34 |
|
7.54 |
|
7.49 |
|
9.93 |
|
10.55 |
|
Investment securities: |
|
|
|
|
|
|||||
|
3.68 |
|
5.04 |
|
2.08 |
|
2.32 |
|
2.31 |
|
Government-sponsored enterprise obligations |
2.37 |
|
2.39 |
|
2.39 |
|
2.36 |
|
2.36 |
|
State and municipal obligations(1) |
2.00 |
|
2.00 |
|
1.97 |
|
1.94 |
|
1.95 |
|
Mortgage-backed securities |
1.95 |
|
2.09 |
|
2.19 |
|
2.05 |
|
2.06 |
|
Asset-backed securities |
2.66 |
|
2.50 |
|
2.39 |
|
2.30 |
|
2.20 |
|
Other debt securities |
2.07 |
|
2.01 |
|
1.93 |
|
1.85 |
|
1.75 |
|
Total available for sale debt securities |
2.41 |
|
2.50 |
|
2.18 |
|
2.10 |
|
2.08 |
|
Trading debt securities(1) |
4.52 |
|
4.95 |
|
5.30 |
|
5.05 |
|
5.11 |
|
Equity securities (1) |
4.44 |
|
2.82 |
|
25.64 |
|
27.47 |
|
23.06 |
|
Other securities (1) |
6.09 |
|
13.20 |
|
13.04 |
|
8.60 |
|
13.13 |
|
Total investment securities |
2.52 |
|
2.75 |
|
2.44 |
|
2.27 |
|
2.33 |
|
Federal funds sold |
— |
|
6.74 |
|
6.71 |
|
6.65 |
|
6.56 |
|
Securities purchased under agreements to resell |
3.53 |
|
3.21 |
|
1.93 |
|
1.64 |
|
2.08 |
|
Interest earning deposits with banks |
5.43 |
|
5.48 |
|
5.48 |
|
5.47 |
|
5.39 |
|
Total interest earning assets |
4.96 |
|
4.98 |
|
4.78 |
|
4.62 |
|
4.51 |
|
|
|
|
|
|
|
|||||
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
Interest bearing deposits: |
|
|
|
|
|
|||||
Savings |
.07 |
|
.06 |
|
.06 |
|
.05 |
|
.05 |
|
Interest checking and money market |
1.74 |
|
1.73 |
|
1.69 |
|
1.57 |
|
1.33 |
|
Certificates of deposit of less than |
4.17 |
|
4.22 |
|
4.20 |
|
4.21 |
|
4.32 |
|
Certificates of deposit of |
4.51 |
|
4.55 |
|
4.56 |
|
4.55 |
|
4.37 |
|
Total interest bearing deposits |
2.00 |
|
1.99 |
|
1.97 |
|
1.93 |
|
1.76 |
|
Borrowings: |
|
|
|
|
|
|||||
Federal funds purchased |
5.38 |
|
5.42 |
|
5.42 |
|
5.40 |
|
5.33 |
|
Securities sold under agreements to repurchase |
3.56 |
|
3.44 |
|
3.43 |
|
3.25 |
|
3.20 |
|
Other borrowings |
4.81 |
|
3.84 |
|
— |
|
5.45 |
|
5.30 |
|
Total borrowings |
3.71 |
|
3.65 |
|
3.66 |
|
3.71 |
|
3.93 |
|
Total interest bearing liabilities |
2.22 |
% |
2.21 |
% |
2.21 |
% |
2.20 |
% |
2.12 |
% |
|
|
|
|
|
|
|||||
Net yield on interest earning assets |
3.50 |
% |
3.55 |
% |
3.33 |
% |
3.17 |
% |
3.11 |
% |
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%. |
|
|||||||||||||||
CREDIT QUALITY |
|||||||||||||||
|
|
For the Three Months Ended |
For the Nine Months
|
||||||||||||
(Unaudited) (In thousands, except ratios) |
|
|
|
|
|
|
|
|
|||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS |
|
|
|
|
|
|
|
|
|||||||
Balance at beginning of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
11,861 |
|
7,849 |
|
6,947 |
|
8,170 |
|
13,343 |
|
26,657 |
|
35,155 |
|
Net charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|||||||
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
Business |
|
114 |
|
622 |
|
23 |
|
96 |
|
2,613 |
|
759 |
|
3,008 |
|
Real estate — construction and land |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(115 |
) |
Real estate — business |
|
(7 |
) |
(8 |
) |
(141 |
) |
128 |
|
(15 |
) |
(156 |
) |
(24 |
) |
|
|
107 |
|
614 |
|
(118 |
) |
224 |
|
2,598 |
|
603 |
|
2,869 |
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
Consumer credit card |
|
6,273 |
|
6,746 |
|
6,435 |
|
5,325 |
|
4,716 |
|
19,454 |
|
13,728 |
|
Consumer |
|
2,759 |
|
1,804 |
|
1,983 |
|
1,903 |
|
1,797 |
|
6,546 |
|
4,345 |
|
Overdraft |
|
464 |
|
521 |
|
557 |
|
588 |
|
683 |
|
1,542 |
|
2,178 |
|
Real estate — personal |
|
128 |
|
79 |
|
24 |
|
(11 |
) |
(9 |
) |
231 |
|
(26 |
) |
Revolving home equity |
|
(152 |
) |
(7 |
) |
(4 |
) |
(10 |
) |
(1 |
) |
(163 |
) |
(47 |
) |
|
|
9,472 |
|
9,143 |
|
8,995 |
|
7,795 |
|
7,186 |
|
27,610 |
|
20,178 |
|
Total net loan charge-offs |
|
9,579 |
|
9,757 |
|
8,877 |
|
8,019 |
|
9,784 |
|
28,213 |
|
23,047 |
|
Balance at end of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITY FOR UNFUNDED LENDING COMMITMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
NET CHARGE-OFF RATIOS (1) |
|
|
|
|
|
|
|
|
|||||||
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
Business |
|
.01 |
% |
.04 |
% |
— |
% |
.01 |
% |
.18 |
% |
.02 |
% |
.07 |
% |
Real estate — construction and land |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(.01 |
) |
Real estate — business |
|
— |
|
— |
|
(.02 |
) |
.01 |
|
— |
|
(.01 |
) |
— |
|
|
|
— |
|
.02 |
|
— |
|
.01 |
|
.09 |
|
.01 |
|
.04 |
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
Consumer credit card |
|
4.46 |
|
4.91 |
|
4.60 |
|
3.72 |
|
3.32 |
|
4.65 |
|
3.28 |
|
Consumer |
|
.52 |
|
.34 |
|
.38 |
|
.36 |
|
.34 |
|
.41 |
|
.28 |
|
Overdraft |
|
33.81 |
|
43.15 |
|
29.11 |
|
44.37 |
|
50.73 |
|
34.32 |
|
60.54 |
|
Real estate — personal |
|
.02 |
|
.01 |
|
— |
|
— |
|
— |
|
.01 |
|
— |
|
Revolving home equity |
|
(.18 |
) |
(.01 |
) |
— |
|
(.01 |
) |
— |
|
(.07 |
) |
(.02 |
) |
|
|
.62 |
|
.61 |
|
.60 |
|
.51 |
|
.48 |
|
.61 |
|
.46 |
|
Total |
|
.22 |
% |
.23 |
% |
.21 |
% |
.19 |
% |
.23 |
% |
.22 |
% |
.18 |
% |
CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|||||||
Non-accrual loans to total loans |
|
.11 |
% |
.11 |
% |
.03 |
% |
.04 |
% |
.05 |
% |
|
|
||
Allowance for credit losses on loans to total loans |
|
.94 |
|
.92 |
|
.93 |
|
.94 |
|
.95 |
|
|
|
||
NON-ACCRUAL AND PAST DUE LOANS |
|
|
|
|
|
|
|
|
|||||||
Non-accrual loans: |
|
|
|
|
|
|
|
|
|||||||
Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Real estate — business |
|
14,944 |
|
15,050 |
|
1,246 |
|
60 |
|
76 |
|
|
|
||
Real estate — personal |
|
1,144 |
|
1,772 |
|
1,523 |
|
1,653 |
|
1,531 |
|
|
|
||
Revolving home equity |
|
1,977 |
|
1,977 |
|
1,977 |
|
1,977 |
|
— |
|
|
|
||
Total |
|
18,419 |
|
19,303 |
|
5,784 |
|
7,312 |
|
8,209 |
|
|
|
||
Loans past due 90 days and still accruing interest |
|
|
|
|
|
|
|
|
|
|
|
|
|||
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale). |
Management Discussion of Third Quarter Results
For the quarter ended
Balance Sheet Review
During the 3rd quarter of 2024, average loans totaled
Total average available for sale debt securities decreased
Total average deposits increased
Net Interest Income
Net interest income in the 3rd quarter of 2024 amounted to
Compared to the previous quarter, interest income on loans (FTE) increased
Interest income on investment securities (FTE) decreased
Compared to the previous quarter, interest income on deposits with banks increased
Interest expense increased
Non-Interest Income
In the 3rd quarter of 2024, total non-interest income amounted to
Total net bank card fees in the current quarter increased
In the current quarter, trust fees increased
Other non-interest income increased compared to the same period last year primarily due to higher gains on the sales of real estate of
Investment Securities Gains and Losses
The Company recorded net securities gains of
Non-Interest Expense
Non-interest expense for the current quarter amounted to
Compared to the 3rd quarter of last year, salaries and employee benefits expense increased
Compared to the same period last year, data processing and software expense increased
Income Taxes
The effective tax rate for the Company was 21.7% in the current quarter, unchanged from both the previous quarter, and the 3rd quarter of 2023.
Credit Quality
Net loan charge-offs in the 3rd quarter of 2024 amounted to
In the 3rd quarter of 2024, annualized net loan charge-offs on average consumer credit card loans were 4.46%, compared to 4.91% in the previous quarter and 3.32% in the same quarter last year. Consumer loan net charge-offs were .52% of average consumer loans in the current quarter, and .34% in both the prior quarter and the same quarter last year.
At
At
Other
During the 3rd quarter of 2024, the Company paid a cash dividend of
Forward Looking Information
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions, and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Additional information about risks and uncertainties is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within the Company's Annual Report on Form 10-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241016296692/en/
(314) 746-7485
www.commercebank.com
matthew.burkemper@commercebank.com
Source: