KANSAS CITY, Mo.–(BUSINESS WIRE)–Commerce Bancshares, Inc. announced earnings of $1.14 per share for the three months ended June 30, 2025, compared to $1.03 per share in the same quarter last year and $.98 per share in the first quarter of 2025. Net income for the second quarter of 2025 amounted to $152.5 million, compared to $139.6 million in the second quarter of 2024 and $131.6 million in the prior quarter.
For the six months ended June 30, 2025, earnings per share totaled $2.12, compared to $1.85 for the first six months of 2024. Net income amounted to $284.1 million for the six months ended June 30, 2025, compared to $252.2 million in the comparable period last year. For the year to date, the return on average assets was 1.82%, and the return on average equity was 16.63%.
In making this announcement, John Kemper, Chief Executive Officer, said, “Commerce delivered a strong financial performance in the second quarter, one that reflected our diversified operating model and the talented team behind it. Our financial results were supported by loan growth, strong fee income, low credit costs and continued disciplined expense management, all key ingredients in our steady profit growth over time.”
Mr. Kemper continued, “Our return on average assets was strong at 1.95%. Net interest income of $280 million was another record quarter for Commerce and reflects the continued benefits of fixed-rate asset repricing, higher loan demand, and our strong deposit franchise. Non-interest income was $166 million and made up 37.2% of total revenue, led by trust fees and bank card transaction fees. Credit quality of the loan portfolio remains excellent with non-accrual loans at .11% of total loans. Capital and liquidity levels remain strong.”
On the FineMark announcement, Mr. Kemper, added, “In June, we announced our plans to acquire FineMark Holdings, a respected and well-established bank and trust company, headquartered in Fort Myers, Florida. With this acquisition, FineMark will bring new capabilities, specialized services for niche client segments, and extended market reach. Commerce will add scale and depth with resources, capital, operational infrastructure, regulatory experience, and long-term stability.
Looking ahead, our franchise is well-positioned to execute against our long-term strategies, serve our customers and deliver value to our shareholders.”
Second Quarter 2025 Financial Highlights:
- Net interest income was $280.1 million, an $11.0 million increase over the prior quarter. The net yield on interest earning assets increased 14 basis points to 3.70%.
- Non-interest income totaled $165.6 million, an increase of $13.4 million, or 8.8%, over the same quarter last year.
- Trust fees grew $3.3 million, or 6.3%, compared to the same period last year, mostly due to higher private client fees.
- Non-interest expense totaled $244.4 million, an increase of $12.2 million, or 5.3%, over the same quarter last year.
- Average loan balances totaled $17.5 billion, an increase of $253.1 million, or 1.5%, over the prior quarter.
- Total average available for sale debt securities decreased $128.5 million compared to the prior quarter to $9.1 billion, at fair value.
- Total average deposits increased $63.0 million, or .3%, over the prior quarter. The average rate paid on interest bearing deposits declined five basis points to 1.67%, compared to the prior quarter.
- The ratio of annualized net loan charge-offs to average loans was .22% in the current quarter compared to .25% in the prior quarter.
- The allowance for credit losses on loans decreased $1.8 million during the second quarter of 2025 to $165.3 million, and the ratio of the allowance for credit losses on loans to total loans was .94% on June 30, 2025, compared to .96% at March 31, 2025.
- Total assets on June 30, 2025 were $32.3 billion, a decrease of $80.7 million, or .2%, from the prior quarter.
- For the quarter, the return on average assets was 1.95%, the return on average equity was 17.40%, and the efficiency ratio was 54.8%.
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 160 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. Beyond the Midwest, Commerce also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids and wealth offices in Dallas, Houston, and Naples. Commerce delivers high-touch service and sophisticated financial solutions at regional branches, commercial and wealth 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, |
Mar. 31, |
Jun. 30, |
Jun. 30, |
Jun. 30, |
|||||
|
FINANCIAL SUMMARY |
|
|
|
|
|
|
|||||
|
Net interest income |
|
$280,147 |
|
$269,102 |
|
$262,249 |
|
$549,249 |
|
$511,248 |
|
|
Non-interest income |
|
165,613 |
|
158,949 |
|
152,244 |
|
324,562 |
|
301,092 |
|
|
Total revenue |
|
445,760 |
|
428,051 |
|
414,493 |
|
873,811 |
|
812,340 |
|
|
Investment securities gains (losses) |
|
437 |
|
(7,591 |
) |
3,233 |
|
(7,154 |
) |
2,974 |
|
|
Provision for credit losses |
|
5,597 |
|
14,487 |
|
5,468 |
|
20,084 |
|
10,255 |
|
|
Non-interest expense |
|
244,437 |
|
238,376 |
|
232,214 |
|
482,813 |
|
477,911 |
|
|
Income before taxes |
|
196,163 |
|
167,597 |
|
180,044 |
|
363,760 |
|
327,148 |
|
|
Income taxes |
|
42,400 |
|
36,964 |
|
38,602 |
|
79,364 |
|
70,254 |
|
|
Non-controlling interest expense (income) |
|
1,284 |
|
(959 |
) |
1,889 |
|
325 |
|
4,678 |
|
|
Net income attributable to Commerce Bancshares, Inc. |
$152,479 |
|
$131,592 |
|
$139,553 |
|
$284,071 |
|
$252,216 |
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|||||
|
Net income — basic |
|
$1.14 |
|
$0.98 |
|
$1.03 |
|
$2.12 |
|
$1.85 |
|
|
Net income — diluted |
|
$1.14 |
|
$0.98 |
|
$1.03 |
|
$2.12 |
|
$1.85 |
|
|
Effective tax rate |
|
21.76 |
% |
21.93 |
% |
21.67 |
% |
21.84 |
% |
21.79 |
% |
|
Fully-taxable equivalent net interest income |
|
$282,428 |
|
$271,416 |
|
$264,578 |
|
$553,844 |
|
$515,890 |
|
|
Average total interest earning assets (1) |
|
$30,629,715 |
|
$30,901,110 |
|
$30,016,060 |
|
$30,764,662 |
|
$30,190,917 |
|
|
Diluted wtd. average shares outstanding |
|
132,582,673 |
|
133,071,719 |
|
135,041,228 |
|
132,825,845 |
|
135,343,213 |
|
|
RATIOS |
|
|
|
|
|
|
|||||
|
Average loans to deposits (2) |
|
70.22 |
% |
69.38 |
% |
70.73 |
% |
69.80 |
% |
70.30 |
% |
|
Return on total average assets |
|
1.95 |
|
1.69 |
|
1.86 |
|
1.82 |
|
1.67 |
|
|
Return on average equity (3) |
|
17.40 |
|
15.82 |
|
18.52 |
|
16.63 |
|
16.98 |
|
|
Non-interest income to total revenue |
|
37.15 |
|
37.13 |
|
36.73 |
|
37.14 |
|
37.06 |
|
|
Efficiency ratio (4) |
|
54.77 |
|
55.61 |
|
55.95 |
|
55.18 |
|
58.75 |
|
|
Net yield on interest earning assets |
|
3.70 |
|
3.56 |
|
3.55 |
|
3.63 |
|
3.44 |
|
|
EQUITY SUMMARY |
|
|
|
|
|
|
|||||
|
Cash dividends per share |
|
$.275 |
|
$.275 |
|
$.257 |
|
$.550 |
|
$.514 |
|
|
Cash dividends on common stock |
|
$36,761 |
|
$36,866 |
|
$34,960 |
|
$73,627 |
|
$70,100 |
|
|
Book value per share (5) |
|
$27.43 |
|
$26.19 |
|
$23.31 |
|
|
|
||
|
Market value per share (5) |
|
$62.17 |
|
$62.23 |
|
$53.12 |
|
|
|
||
|
High market value per share |
|
$66.14 |
|
$68.87 |
|
$54.74 |
|
|
|
||
|
Low market value per share |
|
$52.69 |
|
$58.80 |
|
$48.50 |
|
|
|
||
|
Common shares outstanding (5) |
|
133,419,701 |
|
133,597,405 |
|
135,454,443 |
|
|
|
||
|
Tangible common equity to tangible assets (6) |
|
10.86 |
% |
10.33 |
% |
9.82 |
% |
|
|
||
|
Tier I leverage ratio |
|
12.75 |
% |
12.29 |
% |
12.13 |
% |
|
|
||
|
OTHER QTD INFORMATION |
|
|
|
|
|
|
|||||
|
Number of bank/ATM locations |
|
239 |
|
242 |
|
247 |
|
|
|
||
|
Full-time equivalent employees |
|
4,658 |
|
4,662 |
|
4,724 |
|
|
|
||
|
(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 total revenue. |
|||||||||||
|
(5) As of period end. |
|||||||||||
|
(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). |
|||||||||||
|
All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2024. |
|||||||||||
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
|
(Unaudited) (In thousands, except per share data) |
|
For the Three Months Ended |
For the Six Months Ended |
||||||||||||
|
|
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
Jun. 30, |
Jun. 30, |
||||||||
|
Interest income |
|
$371,636 |
|
$364,365 |
|
$369,405 |
|
$372,068 |
|
$369,363 |
|
$736,001 |
|
$728,084 |
|
|
Interest expense |
|
91,489 |
|
95,263 |
|
102,758 |
|
109,717 |
|
107,114 |
|
186,752 |
|
216,836 |
|
|
Net interest income |
|
280,147 |
|
269,102 |
|
266,647 |
|
262,351 |
|
262,249 |
|
549,249 |
|
511,248 |
|
|
Provision for credit losses |
|
5,597 |
|
14,487 |
|
13,508 |
|
9,140 |
|
5,468 |
|
20,084 |
|
10,255 |
|
|
Net interest income after credit losses |
274,550 |
|
254,615 |
|
253,139 |
|
253,211 |
|
256,781 |
|
529,165 |
|
500,993 |
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|||||||
|
Trust fees |
|
55,571 |
|
56,592 |
|
56,345 |
|
54,689 |
|
52,291 |
|
112,163 |
|
103,396 |
|
|
Bank card transaction fees |
|
46,362 |
|
45,593 |
|
47,807 |
|
47,570 |
|
47,477 |
|
91,955 |
|
94,407 |
|
|
Deposit account charges and other fees |
26,248 |
|
26,622 |
|
25,480 |
|
25,380 |
|
25,325 |
|
52,870 |
|
49,476 |
|
|
|
Capital market fees |
|
6,175 |
|
5,112 |
|
5,129 |
|
5,995 |
|
4,760 |
|
11,287 |
|
8,652 |
|
|
Consumer brokerage services |
|
5,383 |
|
4,785 |
|
4,636 |
|
4,619 |
|
4,478 |
|
10,168 |
|
8,886 |
|
|
Loan fees and sales |
|
3,419 |
|
3,404 |
|
2,874 |
|
3,444 |
|
3,431 |
|
6,823 |
|
6,572 |
|
|
Other |
|
22,455 |
|
16,841 |
|
13,165 |
|
17,328 |
|
14,482 |
|
39,296 |
|
29,703 |
|
|
Total non-interest income |
|
165,613 |
|
158,949 |
|
155,436 |
|
159,025 |
|
152,244 |
|
324,562 |
|
301,092 |
|
|
INVESTMENT SECURITIES GAINS (LOSSES), NET |
437 |
|
(7,591 |
) |
977 |
|
3,872 |
|
3,233 |
|
(7,154 |
) |
2,974 |
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|||||||
|
Salaries and employee benefits |
|
155,025 |
|
153,078 |
|
153,819 |
|
153,122 |
|
149,120 |
|
308,103 |
|
300,921 |
|
|
Data processing and software |
|
32,904 |
|
32,238 |
|
32,514 |
|
32,194 |
|
31,529 |
|
65,142 |
|
62,682 |
|
|
Net occupancy |
|
13,654 |
|
14,020 |
|
13,694 |
|
13,411 |
|
12,544 |
|
27,674 |
|
26,118 |
|
|
Professional and other services |
|
12,973 |
|
10,026 |
|
8,982 |
|
8,830 |
|
8,617 |
|
22,999 |
|
17,265 |
|
|
Marketing |
|
5,974 |
|
5,843 |
|
5,683 |
|
7,278 |
|
5,356 |
|
11,817 |
|
9,392 |
|
|
Equipment |
|
5,157 |
|
5,248 |
|
5,232 |
|
5,286 |
|
5,091 |
|
10,405 |
|
10,101 |
|
|
Supplies and communication |
|
4,962 |
|
5,046 |
|
4,948 |
|
4,963 |
|
4,636 |
|
10,008 |
|
9,380 |
|
|
Deposit Insurance |
|
3,312 |
|
3,744 |
|
3,181 |
|
2,930 |
|
2,354 |
|
7,056 |
|
10,371 |
|
|
Other |
|
10,476 |
|
9,133 |
|
7,665 |
|
9,586 |
|
12,967 |
|
19,609 |
|
31,681 |
|
|
Total non-interest expense |
|
244,437 |
|
238,376 |
|
235,718 |
|
237,600 |
|
232,214 |
|
482,813 |
|
477,911 |
|
|
Income before income taxes |
|
196,163 |
|
167,597 |
|
173,834 |
|
178,508 |
|
180,044 |
|
363,760 |
|
327,148 |
|
|
Less income taxes |
|
42,400 |
|
36,964 |
|
36,590 |
|
38,245 |
|
38,602 |
|
79,364 |
|
70,254 |
|
|
Net income |
|
153,763 |
|
130,633 |
|
137,244 |
|
140,263 |
|
141,442 |
|
284,396 |
|
256,894 |
|
|
Less non-controlling interest expense (income) |
1,284 |
|
(959 |
) |
1,136 |
|
2,256 |
|
1,889 |
|
325 |
|
4,678 |
|
|
|
Net income attributable to Commerce Bancshares, Inc. |
$152,479 |
|
$131,592 |
|
$136,108 |
|
$138,007 |
|
$139,553 |
|
$284,071 |
|
$252,216 |
|
|
|
Net income per common share — basic |
$1.14 |
|
$0.98 |
|
$1.01 |
|
$1.02 |
|
$1.03 |
|
$2.12 |
|
$1.85 |
|
|
|
Net income per common share — diluted |
$1.14 |
|
$0.98 |
|
$1.01 |
|
$1.01 |
|
$1.03 |
|
$2.12 |
|
$1.85 |
|
|
|
OTHER INFORMATION |
|
|
|
|
|
|
|
||||||||
|
Return on total average assets |
|
1.95 |
% |
1.69 |
% |
1.73 |
% |
1.80 |
% |
1.86 |
% |
1.82 |
% |
1.67 |
% |
|
Return on average equity (1) |
17.40 |
|
15.82 |
|
15.97 |
|
16.81 |
|
18.52 |
|
16.63 |
|
16.98 |
|
|
|
Efficiency ratio (2) |
|
54.77 |
|
55.61 |
|
55.77 |
|
56.31 |
|
55.95 |
|
55.18 |
|
58.75 |
|
|
Effective tax rate |
|
21.76 |
|
21.93 |
|
21.19 |
|
21.70 |
|
21.67 |
|
21.84 |
|
21.79 |
|
|
Net yield on interest earning assets |
3.70 |
|
3.56 |
|
3.49 |
|
3.50 |
|
3.55 |
|
3.63 |
|
3.44 |
|
|
|
Fully-taxable equivalent net interest income |
|
$282,428 |
|
$271,416 |
|
$268,935 |
|
$264,638 |
|
$264,578 |
|
$553,844 |
|
$515,890 |
|
|
(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 total revenue. |
|||||||||||||||
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS – PERIOD END |
|||||||
|
(Unaudited) (In thousands) |
|
Jun. 30, |
Mar. 31, |
Jun. 30, |
|||
|
ASSETS |
|
|
|
|
|||
|
Loans |
|
|
|
|
|||
|
Business |
|
$6,328,684 |
|
$6,239,276 |
|
$6,090,724 |
|
|
Real estate — construction and land |
|
1,405,398 |
|
1,419,572 |
|
1,396,515 |
|
|
Real estate — business |
|
3,757,778 |
|
3,628,635 |
|
3,572,539 |
|
|
Real estate — personal |
|
3,058,845 |
|
3,047,809 |
|
3,055,182 |
|
|
Consumer |
|
2,157,867 |
|
2,116,160 |
|
2,145,609 |
|
|
Revolving home equity |
|
364,429 |
|
356,675 |
|
331,381 |
|
|
Consumer credit card |
|
576,151 |
|
568,163 |
|
566,925 |
|
|
Overdrafts |
|
16,316 |
|
3,131 |
|
4,190 |
|
|
Total loans |
|
17,665,468 |
|
17,379,421 |
|
17,163,065 |
|
|
Allowance for credit losses on loans |
|
(165,260 |
) |
(167,031 |
) |
(158,557 |
) |
|
Net loans |
|
17,500,208 |
|
17,212,390 |
|
17,004,508 |
|
|
Loans held for sale |
|
3,592 |
|
2,890 |
|
2,930 |
|
|
Investment securities: |
|
|
|
|
|||
|
Available for sale debt securities |
|
8,915,779 |
|
9,264,947 |
|
8,534,271 |
|
|
Trading debt securities |
|
46,630 |
|
56,569 |
|
45,499 |
|
|
Equity securities |
|
54,511 |
|
58,182 |
|
113,584 |
|
|
Other securities |
|
219,906 |
|
221,370 |
|
223,798 |
|
|
Total investment securities |
|
9,236,826 |
|
9,601,068 |
|
8,917,152 |
|
|
Securities purchased under agreements to resell |
|
850,000 |
|
850,000 |
|
475,000 |
|
|
Interest earning deposits with banks |
|
2,624,264 |
|
2,756,521 |
|
2,215,057 |
|
|
Cash and due from banks |
|
522,049 |
|
517,332 |
|
329,692 |
|
|
Premises and equipment — net |
|
477,401 |
|
476,921 |
|
467,256 |
|
|
Goodwill |
|
146,539 |
|
146,539 |
|
146,539 |
|
|
Other intangible assets — net |
|
13,333 |
|
13,441 |
|
13,801 |
|
|
Other assets |
|
910,035 |
|
787,862 |
|
997,423 |
|
|
Total assets |
|
$32,284,247 |
|
$32,364,964 |
|
$30,569,358 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|||
|
Deposits: |
|
|
|
|
|||
|
Non-interest bearing |
|
$7,393,559 |
|
$7,518,243 |
|
$7,492,751 |
|
|
Savings, interest checking and money market |
|
15,727,549 |
|
15,975,283 |
|
14,367,710 |
|
|
Certificates of deposit of less than $100,000 |
|
986,014 |
|
985,878 |
|
1,010,251 |
|
|
Certificates of deposit of $100,000 and over |
|
1,386,906 |
|
1,362,393 |
|
1,408,548 |
|
|
Total deposits |
|
25,494,028 |
|
25,841,797 |
|
24,279,260 |
|
|
Federal funds purchased and securities sold under agreements to repurchase |
|
2,596,461 |
|
2,400,036 |
|
2,551,399 |
|
|
Other borrowings |
|
15,049 |
|
17,743 |
|
3,984 |
|
|
Other liabilities |
|
518,595 |
|
606,986 |
|
576,380 |
|
|
Total liabilities |
|
28,624,133 |
|
28,866,562 |
|
27,411,023 |
|
|
Stockholders’ equity: |
|
|
|
|
|||
|
Common stock |
|
676,054 |
|
676,054 |
|
655,322 |
|
|
Capital surplus |
|
3,386,218 |
|
3,381,960 |
|
3,153,107 |
|
|
Retained earnings |
|
255,938 |
|
140,220 |
|
235,299 |
|
|
Treasury stock |
|
(96,589 |
) |
(85,871 |
) |
(98,176 |
) |
|
Accumulated other comprehensive income (loss) |
|
(581,049 |
) |
(634,576 |
) |
(807,817 |
) |
|
Total stockholders’ equity |
|
3,640,572 |
|
3,477,787 |
|
3,137,735 |
|
|
Non-controlling interest |
|
19,542 |
|
20,615 |
|
20,600 |
|
|
Total equity |
|
3,660,114 |
|
3,498,402 |
|
3,158,335 |
|
|
Total liabilities and equity |
|
$32,284,247 |
|
$32,364,964 |
|
$30,569,358 |
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS |
||||||||||
|
(Unaudited) (In thousands) |
For the Three Months Ended |
|||||||||
|
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||
|
ASSETS: |
|
|
|
|
|
|||||
|
Loans: |
|
|
|
|
|
|||||
|
Business |
$6,247,252 |
|
$6,106,185 |
|
$5,963,217 |
|
$5,966,797 |
|
$5,980,364 |
|
|
Real estate — construction and land |
1,430,758 |
|
1,415,349 |
|
1,411,437 |
|
1,400,563 |
|
1,471,504 |
|
|
Real estate — business |
3,692,405 |
|
3,667,833 |
|
3,636,026 |
|
3,580,772 |
|
3,666,057 |
|
|
Real estate — personal |
3,048,895 |
|
3,045,876 |
|
3,047,494 |
|
3,047,563 |
|
3,044,943 |
|
|
Consumer |
2,148,666 |
|
2,082,360 |
|
2,087,237 |
|
2,129,483 |
|
2,127,650 |
|
|
Revolving home equity |
362,312 |
|
358,684 |
|
350,541 |
|
335,817 |
|
326,204 |
|
|
Consumer credit card |
559,858 |
|
560,534 |
|
568,138 |
|
559,410 |
|
552,896 |
|
|
Overdrafts |
5,663 |
|
5,860 |
|
5,628 |
|
5,460 |
|
4,856 |
|
|
Total loans |
17,495,809 |
|
17,242,681 |
|
17,069,718 |
|
17,025,865 |
|
17,174,474 |
|
|
Allowance for credit losses on loans |
(166,391 |
) |
(162,186 |
) |
(160,286 |
) |
(158,003 |
) |
(159,791 |
) |
|
Net loans |
17,329,418 |
|
17,080,495 |
|
16,909,432 |
|
16,867,862 |
|
17,014,683 |
|
|
Loans held for sale |
1,741 |
|
1,584 |
|
2,080 |
|
2,448 |
|
2,455 |
|
|
Investment securities: |
|
|
|
|
|
|||||
|
U.S. government and federal agency obligations |
2,623,896 |
|
2,586,944 |
|
2,459,485 |
|
1,888,985 |
|
1,201,954 |
|
|
Government-sponsored enterprise obligations |
55,038 |
|
55,330 |
|
55,428 |
|
55,583 |
|
55,634 |
|
|
State and municipal obligations |
780,063 |
|
804,363 |
|
831,695 |
|
856,620 |
|
1,069,934 |
|
|
Mortgage-backed securities |
4,641,295 |
|
4,788,102 |
|
4,905,187 |
|
5,082,091 |
|
5,553,656 |
|
|
Asset-backed securities |
1,585,364 |
|
1,655,701 |
|
1,570,878 |
|
1,525,593 |
|
1,785,598 |
|
|
Other debt securities |
237,385 |
|
258,136 |
|
221,076 |
|
224,528 |
|
364,828 |
|
|
Unrealized gain (loss) on debt securities |
(838,028 |
) |
(935,054 |
) |
(896,346 |
) |
(961,695 |
) |
(1,272,127 |
) |
|
Total available for sale debt securities |
9,085,013 |
|
9,213,522 |
|
9,147,403 |
|
8,671,705 |
|
8,759,477 |
|
|
Trading debt securities |
51,131 |
|
38,298 |
|
56,440 |
|
47,440 |
|
46,565 |
|
|
Equity securities |
54,472 |
|
57,028 |
|
56,758 |
|
85,118 |
|
127,584 |
|
|
Other securities |
216,560 |
|
233,461 |
|
222,529 |
|
217,377 |
|
228,403 |
|
|
Total investment securities |
9,407,176 |
|
9,542,309 |
|
9,483,130 |
|
9,021,640 |
|
9,162,029 |
|
|
Federal funds sold |
158 |
|
2,089 |
|
826 |
|
12 |
|
1,612 |
|
|
Securities purchased under agreements to resell |
850,000 |
|
788,889 |
|
566,307 |
|
474,997 |
|
303,586 |
|
|
Interest earning deposits with banks |
2,036,803 |
|
2,388,504 |
|
2,610,315 |
|
2,565,188 |
|
2,099,777 |
|
|
Other assets |
1,671,763 |
|
1,698,296 |
|
1,701,822 |
|
1,648,321 |
|
1,651,808 |
|
|
Total assets |
$31,297,059 |
|
$31,502,166 |
|
$31,273,912 |
|
$30,580,468 |
|
$30,235,950 |
|
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
|
Non-interest bearing deposits |
$7,356,882 |
|
$7,298,686 |
|
$7,464,255 |
|
$7,284,834 |
|
$7,297,955 |
|
|
Savings |
1,303,391 |
|
1,294,174 |
|
1,281,291 |
|
1,303,675 |
|
1,328,989 |
|
|
Interest checking and money market |
13,901,634 |
|
13,906,827 |
|
13,679,666 |
|
13,242,398 |
|
13,162,118 |
|
|
Certificates of deposit of less than $100,000 |
984,845 |
|
991,826 |
|
1,061,783 |
|
1,055,683 |
|
1,003,798 |
|
|
Certificates of deposit of $100,000 and over |
1,371,428 |
|
1,363,655 |
|
1,451,851 |
|
1,464,143 |
|
1,492,592 |
|
|
Total deposits |
24,918,180 |
|
24,855,168 |
|
24,938,846 |
|
24,350,733 |
|
24,285,452 |
|
|
Borrowings: |
|
|
|
|
|
|||||
|
Federal funds purchased |
129,891 |
|
128,340 |
|
121,781 |
|
206,644 |
|
265,042 |
|
|
Securities sold under agreements to repurchase |
2,371,031 |
|
2,723,227 |
|
2,445,956 |
|
2,351,870 |
|
2,254,849 |
|
|
Other borrowings |
2,748 |
|
616 |
|
1,067 |
|
496 |
|
838 |
|
|
Total borrowings |
2,503,670 |
|
2,852,183 |
|
2,568,804 |
|
2,559,010 |
|
2,520,729 |
|
|
Other liabilities |
360,204 |
|
421,370 |
|
375,463 |
|
405,490 |
|
399,080 |
|
|
Total liabilities |
27,782,054 |
|
28,128,721 |
|
27,883,113 |
|
27,315,233 |
|
27,205,261 |
|
|
Equity |
3,515,005 |
|
3,373,445 |
|
3,390,799 |
|
3,265,235 |
|
3,030,689 |
|
|
Total liabilities and equity |
$31,297,059 |
|
$31,502,166 |
|
$31,273,912 |
|
$30,580,468 |
|
$30,235,950 |
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES |
||||||||||
|
(Unaudited) |
For the Three Months Ended |
|||||||||
|
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||
|
ASSETS: |
|
|
|
|
|
|||||
|
Loans: |
|
|
|
|
|
|||||
|
Business (1) |
5.72 |
% |
5.75 |
% |
5.86 |
% |
6.17 |
% |
6.11 |
% |
|
Real estate — construction and land |
7.39 |
|
7.30 |
|
7.75 |
|
8.44 |
|
8.36 |
|
|
Real estate — business |
5.92 |
|
5.88 |
|
6.01 |
|
6.28 |
|
6.26 |
|
|
Real estate — personal |
4.30 |
|
4.28 |
|
4.17 |
|
4.10 |
|
4.04 |
|
|
Consumer |
6.43 |
|
6.52 |
|
6.52 |
|
6.64 |
|
6.56 |
|
|
Revolving home equity |
7.41 |
|
7.26 |
|
7.28 |
|
7.69 |
|
7.68 |
|
|
Consumer credit card |
13.18 |
|
13.49 |
|
13.60 |
|
14.01 |
|
13.96 |
|
|
Overdrafts |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total loans |
6.01 |
|
6.02 |
|
6.11 |
|
6.35 |
|
6.30 |
|
|
Loans held for sale |
9.22 |
|
5.89 |
|
7.65 |
|
6.34 |
|
7.54 |
|
|
Investment securities: |
|
|
|
|
|
|||||
|
U.S. government and federal agency obligations |
4.28 |
|
4.09 |
|
3.86 |
|
3.68 |
|
5.04 |
|
|
Government-sponsored enterprise obligations |
2.38 |
|
2.40 |
|
2.36 |
|
2.37 |
|
2.39 |
|
|
State and municipal obligations (1) |
2.05 |
|
2.05 |
|
2.01 |
|
2.00 |
|
2.00 |
|
|
Mortgage-backed securities |
2.08 |
|
2.08 |
|
2.17 |
|
1.95 |
|
2.09 |
|
|
Asset-backed securities |
3.73 |
|
3.46 |
|
2.99 |
|
2.66 |
|
2.50 |
|
|
Other debt securities |
2.94 |
|
2.69 |
|
2.11 |
|
2.07 |
|
2.01 |
|
|
Total available for sale debt securities |
2.95 |
|
2.83 |
|
2.70 |
|
2.41 |
|
2.50 |
|
|
Trading debt securities (1) |
4.63 |
|
4.97 |
|
4.26 |
|
4.52 |
|
4.95 |
|
|
Equity securities (1) |
6.26 |
|
8.02 |
|
6.58 |
|
4.44 |
|
2.82 |
|
|
Other securities (1) |
11.63 |
|
7.85 |
|
5.75 |
|
6.09 |
|
13.20 |
|
|
Total investment securities |
3.16 |
|
2.98 |
|
2.80 |
|
2.52 |
|
2.75 |
|
|
Federal funds sold |
5.08 |
|
5.63 |
|
5.78 |
|
— |
|
6.74 |
|
|
Securities purchased under agreements to resell |
4.02 |
|
3.81 |
|
3.57 |
|
3.53 |
|
3.21 |
|
|
Interest earning deposits with banks |
4.46 |
|
4.46 |
|
4.78 |
|
5.43 |
|
5.48 |
|
|
Total interest earning assets |
4.90 |
|
4.81 |
|
4.83 |
|
4.96 |
|
4.98 |
|
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
|
Interest bearing deposits: |
|
|
|
|
|
|||||
|
Savings |
.05 |
|
.05 |
|
.05 |
|
.07 |
|
.06 |
|
|
Interest checking and money market |
1.49 |
|
1.52 |
|
1.63 |
|
1.74 |
|
1.73 |
|
|
Certificates of deposit of less than $100,000 |
3.44 |
|
3.65 |
|
3.91 |
|
4.17 |
|
4.22 |
|
|
Certificates of deposit of $100,000 and over |
3.78 |
|
3.96 |
|
4.24 |
|
4.51 |
|
4.55 |
|
|
Total interest bearing deposits |
1.67 |
|
1.72 |
|
1.87 |
|
2.00 |
|
1.99 |
|
|
Borrowings: |
|
|
|
|
|
|||||
|
Federal funds purchased |
4.37 |
|
4.37 |
|
4.71 |
|
5.38 |
|
5.42 |
|
|
Securities sold under agreements to repurchase |
2.85 |
|
2.86 |
|
3.11 |
|
3.56 |
|
3.44 |
|
|
Other borrowings |
3.79 |
|
.66 |
|
3.36 |
|
4.81 |
|
3.84 |
|
|
Total borrowings |
2.93 |
|
2.93 |
|
3.18 |
|
3.71 |
|
3.65 |
|
|
Total interest bearing liabilities |
1.83 |
% |
1.89 |
% |
2.04 |
% |
2.22 |
% |
2.21 |
% |
|
|
|
|
|
|
|
|||||
|
Net yield on interest earning assets |
3.70 |
% |
3.56 |
% |
3.49 |
% |
3.50 |
% |
3.55 |
% |
|
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%. |
||||||||||
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CREDIT QUALITY |
||||||||||||||
|
|
For the Three Months Ended |
For the Six Months |
||||||||||||
|
(Unaudited) (In thousands, except ratios) |
Jun. 30, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Sep. 30, 2024 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|||||||
|
ALLOWANCE FOR CREDIT LOSSES ON LOANS |
|
|
|
|
|
|
|
|||||||
|
Balance at beginning of period |
$167,031 |
|
$162,742 |
|
$160,839 |
|
$158,557 |
|
$160,465 |
|
$162,742 |
|
$162,395 |
|
|
Provision for credit losses on loans |
7,919 |
|
15,095 |
|
12,557 |
|
11,861 |
|
7,849 |
|
23,014 |
|
14,796 |
|
|
Net charge-offs (recoveries): |
|
|
|
|
|
|
|
|||||||
|
Commercial portfolio: |
|
|
|
|
|
|
|
|||||||
|
Business |
432 |
|
46 |
|
335 |
|
114 |
|
622 |
|
478 |
|
645 |
|
|
Real estate — construction and land |
24 |
|
— |
|
— |
|
— |
|
— |
|
24 |
|
— |
|
|
Real estate — business |
(425 |
) |
377 |
|
50 |
|
(7 |
) |
(8 |
) |
(48 |
) |
(149 |
) |
|
|
31 |
|
423 |
|
385 |
|
107 |
|
614 |
|
454 |
|
496 |
|
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|||||||
|
Consumer credit card |
7,085 |
|
6,967 |
|
6,557 |
|
6,273 |
|
6,746 |
|
14,052 |
|
13,181 |
|
|
Consumer |
2,168 |
|
2,852 |
|
3,237 |
|
2,759 |
|
1,804 |
|
5,020 |
|
3,787 |
|
|
Overdraft |
360 |
|
495 |
|
470 |
|
464 |
|
521 |
|
855 |
|
1,078 |
|
|
Real estate — personal |
35 |
|
72 |
|
8 |
|
128 |
|
79 |
|
107 |
|
103 |
|
|
Revolving home equity |
11 |
|
(3 |
) |
(3 |
) |
(152 |
) |
(7 |
) |
8 |
|
(11 |
) |
|
|
9,659 |
|
10,383 |
|
10,269 |
|
9,472 |
|
9,143 |
|
20,042 |
|
18,138 |
|
|
Total net loan charge-offs |
9,690 |
|
10,806 |
|
10,654 |
|
9,579 |
|
9,757 |
|
20,496 |
|
18,634 |
|
|
Balance at end of period |
$165,260 |
|
$167,031 |
|
$162,742 |
|
$160,839 |
|
$158,557 |
|
$165,260 |
|
$158,557 |
|
|
LIABILITY FOR UNFUNDED LENDING COMMITMENTS |
$16,005 |
|
$18,327 |
|
$18,935 |
|
$17,984 |
|
$20,705 |
|
|
|
||
|
NET CHARGE-OFF RATIOS (1) |
|
|
|
|
|
|
|
|||||||
|
Commercial portfolio: |
|
|
|
|
|
|
|
|||||||
|
Business |
.03 |
% |
— |
% |
.02 |
% |
.01 |
% |
.04 |
% |
.02 |
% |
.02 |
% |
|
Real estate — construction and land |
.01 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Real estate — business |
(.05 |
) |
.04 |
|
.01 |
|
— |
|
— |
|
— |
|
(.01 |
) |
|
|
— |
|
.02 |
|
.01 |
|
— |
|
.02 |
|
.01 |
|
.01 |
|
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|||||||
|
Consumer credit card |
5.08 |
|
5.04 |
|
4.59 |
|
4.46 |
|
4.91 |
|
5.06 |
|
4.75 |
|
|
Consumer |
.40 |
|
.56 |
|
.62 |
|
.52 |
|
.34 |
|
.48 |
|
.36 |
|
|
Overdraft |
25.50 |
|
34.26 |
|
33.22 |
|
33.81 |
|
43.15 |
|
29.93 |
|
34.54 |
|
|
Real estate — personal |
— |
|
.01 |
|
— |
|
.02 |
|
.01 |
|
.01 |
|
.01 |
|
|
Revolving home equity |
.01 |
|
— |
|
— |
|
(.18 |
) |
(.01 |
) |
— |
|
(.01 |
) |
|
|
.63 |
|
.70 |
|
.67 |
|
.62 |
|
.61 |
|
.66 |
|
.60 |
|
|
Total |
.22 |
% |
.25 |
% |
.25 |
% |
.22 |
% |
.23 |
% |
.24 |
% |
.22 |
% |
|
CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|||||||
|
Non-accrual loans to total loans |
.11 |
% |
.13 |
% |
.11 |
% |
.11 |
% |
.11 |
% |
|
|
||
|
Allowance for credit losses on loans to total loans |
.94 |
|
.96 |
|
.95 |
|
.94 |
|
.92 |
|
|
|
||
|
NON-ACCRUAL AND PAST DUE LOANS |
|
|
|
|
|
|
|
|||||||
|
Non-accrual loans: |
|
|
|
|
|
|
|
|||||||
|
Business |
$410 |
|
$1,112 |
|
$101 |
|
$354 |
|
$504 |
|
|
|
||
|
Real estate — construction and land |
426 |
|
220 |
|
220 |
|
— |
|
— |
|
|
|
||
|
Real estate — business |
15,109 |
|
18,305 |
|
14,954 |
|
14,944 |
|
15,050 |
|
|
|
||
|
Real estate — personal |
948 |
|
989 |
|
1,026 |
|
1,144 |
|
1,772 |
|
|
|
||
|
Revolving home equity |
1,977 |
|
1,977 |
|
1,977 |
|
1,977 |
|
1,977 |
|
|
|
||
|
Total |
18,870 |
|
22,603 |
|
18,278 |
|
18,419 |
|
19,303 |
|
|
|
||
|
Loans past due 90 days and still accruing interest |
$25,303 |
|
$19,417 |
|
$24,516 |
|
$21,986 |
|
$18,566 |
|
|
|
||
|
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale). |
||||||||||||||
Contacts
Matt Burkemper, Investor Relations
(314) 746-7485
www.commercebank.com
[email protected]
