Commerce Bancshares, Inc. Reports Fourth Quarter Earnings Per Share Of $1.11

Rhea-AI Summary

Commerce Bancshares, Inc. reported a fourth-quarter earnings of $1.11 per share for 2020, up from $0.88 in Q4 2019. Net income totaled $129.9 million, compared to $106.9 million in the same quarter last year. The return on average assets was 1.63%, and the return on average equity was 15.49%. For the entire year, earnings per share dropped to $2.91, down from $3.41 in 2019. The company noted improvements in the economy, leading to a decrease in the allowance for credit losses. Loans increased in certain sectors while net loan charge-offs reached $8 million, a slight rise from $7.6 million in Q3 2020.

Positive

• Earnings per share increased to $1.11 from $0.88 YoY.
• Net income rose to $129.9 million from $106.9 million YoY.
• Loan fees surged by 161% compared to Q4 2019.
• Non-interest income from trust fees reached a record high.
• Deposit balances grew by $843.3 million or 3.4%.
• Net interest income stable at $209.8 million.

Negative

• Full-year EPS decreased to $2.91 from $3.41 in 2019.
• Net income for 2020 declined to $354.1 million from $421.2 million in 2019.
• Average loan balances remained relatively flat due to mixed loan demand.
• Net interest margins pressured by the low interest rate environment.

Commerce Bancshares, Inc. announced earnings of $1.11 per share for the three months ended December 31, 2020, compared to $.88 per common share in the same quarter last year and $1.06 per common share in the prior quarter. Net income attributable to Commerce Bancshares, Inc. (net income) for the fourth quarter of 2020 amounted to $129.9 million, compared to $106.9 million in the fourth quarter of 2019 and $132.4 million in the prior quarter. For the quarter, the return on average assets was 1.63%, the return on average equity was 15.49%, and the efficiency ratio was 56.7%.

For the year ended December 31, 2020, earnings per common share totaled $2.91 compared to $3.41 in 2019. Net income attributable to Commerce Bancshares, Inc. amounted to $354.1 million in 2020 compared to $421.2 million last year. For the current year, the return on average assets was 1.20%, and the return on average common equity was 10.64%.

In announcing these results, John Kemper, Chief Executive Officer, said, “Commerce had a strong quarter to close out 2020. While economic uncertainty remains top of mind, overall economic conditions, most notably unemployment, continued to improve in the fourth quarter at a pace that exceeded economic forecasts. These factors, coupled with a forecast projecting an economic recovery, resulted in a decrease in the allowance for credit losses. Our portfolio of private equity investments saw unrealized gains recorded this quarter, partially offsetting unrealized losses recorded in the first half of 2020 and reflecting improvement in the overall economy. Although net interest margins continue to be pressured from a challenging interest rate environment, our fee-based businesses are rebounding from mid-year lows and provide us with a source of revenue diversification. Bank card and deposit account fees grew from last quarter with an increase in spending activity. Loan fees and sales, driven by our mortgage banking business, continued to be strong this quarter and increased 161 percent compared to the fourth quarter of 2019. Trust fees reached another record quarter, reflecting not only higher market values, but also the results of investments we’ve made across our wealth business. Non-interest expense grew .6% compared to the same quarter last year and remained well-controlled. Compared to the previous quarter, average deposits grew $843.3 million, or 3.4%, well surpassing our expectations. While deposit balances grew this quarter, loan demand was mixed. Average loan balances in construction, business real estate, and personal real estate grew, while lower demand for business loans kept total average loan balances relatively flat.”

Mr. Kemper continued, “This quarter, net loan charge-offs totaled $8.0 million, compared to $7.6 million in the prior quarter and $15.2 million in the fourth quarter of 2019. The ratio of annualized net loan charge-offs to average loans was .19% in the current quarter, .18% in the prior quarter and .42% in the fourth quarter of last year. Net loan charge-offs on commercial loans totaled $572 thousand this quarter compared to $194 thousand in the prior quarter. Non-performing assets decreased this quarter from $40.3 million to $26.6 million. At December 31, 2020, the allowance for credit losses on loans decreased to $220.8 million.”

Total assets at December 31, 2020 were $32.9 billion, total loans were $16.3 billion, and total deposits were $26.9 billion. During the fourth quarter of 2020, the Company distributed a 5% stock dividend on its common stock. The Company also paid a cash dividend of $.257 per share, as restated for the 5% stock dividend.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services, including payment solutions, investment management and securities brokerage. Commerce Bank, a subsidiary of Commerce Bancshares, Inc., leverages more than 150 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, including management's discussion of fourth quarter results, is posted to the Company's web site at www.commercebank.com.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES FINANCIAL HIGHLIGHTS
		For the Three Months Ended									For the Year Ended
(Unaudited) (Dollars in thousands, except per share data)		December 31, 2020			September 30, 2020			December 31, 2019			December 31, 2020			December 31, 2019
FINANCIAL SUMMARY
Net interest income		$209,763			$215,962			$202,659			$829,847			$821,293
Non-interest income		135,117			129,572			143,461			505,867			524,703
Total revenue		344,880			345,534			346,120			1,335,714			1,345,996
Investment securities gains (losses), net		12,307			16,155			(248)			11,032			3,626
Provision for credit losses		(4,403)			3,101			15,206			137,190			50,438
Non-interest expense		196,310			190,858			195,174			768,378			767,398
Income before taxes		165,280			167,730			135,492			441,178			531,786
Income taxes		33,084			34,375			28,214			87,293			109,074
Non-controlling interest (income) expense		2,307			907			398			(172)			1,481
Net income attributable to Commerce Bancshares, Inc.		129,889			132,448			106,880			354,057			421,231
Preferred stock dividends		—			7,466			2,250			11,966			9,000
Net income available to common shareholders		$129,889			$124,982			$104,630			$342,091			$412,231
Earnings per common share:
Net income — basic		$1.11			$1.06			$.89			$2.91			$3.42
Net income — diluted		$1.11			$1.06			$.88			$2.91			$3.41
Effective tax rate		20.30		%	20.61		%	20.88		%	19.78		%	20.57		%
Tax equivalent net interest income		$213,017			$219,118			$206,156			$842,790			$835,421
Average total interest earning assets (1)		$	30,297,922		$	29,352,970		$	24,372,575		$	28,143,048		$	24,034,631
Diluted wtd. average shares outstanding		116,507,841			116,444,157			117,611,663			116,584,015			119,769,634
RATIOS
Average loans to deposits (2)		64.05		%	66.23		%	71.73		%	67.73		%	71.54		%
Return on total average assets		1.63			1.71			1.65			1.20			1.67
Return on average common equity (3)		15.49			15.21			13.90			10.64			14.06
Non-interest income to total revenue		39.18			37.50			41.45			37.87			38.98
Efficiency ratio (4)		56.68			55.00			56.29			57.19			56.87
Net yield on interest earning assets		2.80			2.97			3.36			2.99			3.48
EQUITY SUMMARY
Cash dividends per common share		$.257			$.257			$.236			$1.029			$.943
Cash dividends on common stock		$30,178			$30,174			$27,933			$120,818			$113,466
Cash dividends on preferred stock (7)		$—			$7,466			$2,250			$11,966			$9,000
Book value per common share (5)		$29.03			$28.23			$25.43
Market value per common share (5)		$65.70			$53.61			$64.70
High market value per common share		$68.09			$59.13			$65.38
Low market value per common share		$52.10			$50.50			$51.96
Common shares outstanding (5)		117,138,431			117,109,209			117,738,126
Tangible common equity to tangible assets (6)		9.92		%	10.11		%	10.99		%
Tier I leverage ratio		9.45		%	9.39		%	11.38		%
OTHER QTD INFORMATION
Number of bank/ATM locations		306			308			316
Full-time equivalent employees		4,766			4,825			4,858

(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 available to common shareholders divided by average total equity less preferred stock.
(4)	The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.
(5)	As of period end.
(6)	The tangible common equity ratio is calculated as stockholders’ equity reduced by preferred stock, goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).
(7)	For the period ended September 30, 2020, preferred stock dividends includes $5.2 million related to the preferred stock redemption. The $5.2 million is the excess of the redemption costs over the book value of the preferred stock and is considered a dividend.
All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2020.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
		For the Three Months Ended														For the Year Ended
(Unaudited) (In thousands, except per share data)		December 31, 2020			September 30, 2020		June 30, 2020			March 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019
Interest income		$214,726			$223,114		$213,323			$221,485			$226,665			$872,648			$924,685
Interest expense		4,963			7,152		10,266			20,420			24,006			42,801			103,392
Net interest income		209,763			215,962		203,057			201,065			202,659			829,847			821,293
Provision for credit losses		(4,403	)		3,101		80,539			57,953			15,206			137,190			50,438
Net interest income after credit losses		214,166			212,861		122,518			143,112			187,453			692,657			770,855
NON-INTEREST INCOME
Bank card transaction fees		39,979			37,873		33,745			40,200			41,079			151,797			167,879
Trust fees		41,961			40,769		37,942			39,965			40,405			160,637			155,628
Deposit account charges and other fees		24,164			23,107		22,279			23,677			24,974			93,227			95,983	{ "@context": "https://schema.org", "@type": "FAQPage", "name": "Commerce Bancshares, Inc. Reports Fourth Quarter Earnings Per Share Of $1.11 FAQs", "mainEntity": [ { "@type": "Question", "name": "What were the Q4 earnings for CBSH in 2020?", "acceptedAnswer": { "@type": "Answer", "text": "Commerce Bancshares, Inc. reported Q4 earnings of $1.11 per share for 2020." } }, { "@type": "Question", "name": "What is the net income for CBSH in the fourth quarter of 2020?", "acceptedAnswer": { "@type": "Answer", "text": "The net income attributable to Commerce Bancshares, Inc. for Q4 2020 was $129.9 million." } }, { "@type": "Question", "name": "How did CBSH perform in 2020 compared to 2019?", "acceptedAnswer": { "@type": "Answer", "text": "In 2020, CBSH's earnings per share fell to $2.91 and net income declined to $354.1 million, compared to $3.41 and $421.2 million in 2019." } }, { "@type": "Question", "name": "What improvements did CBSH note in Q4 2020?", "acceptedAnswer": { "@type": "Answer", "text": "CBSH noted improvements in the economy, which led to a decrease in the allowance for credit losses." } }, { "@type": "Question", "name": "How did CBSH's non-interest income perform in Q4 2020?", "acceptedAnswer": { "@type": "Answer", "text": "Non-interest income from trust fees reached a record high during Q4 2020." } } ] } FAQ What were the Q4 earnings for CBSH in 2020? Commerce Bancshares, Inc. reported Q4 earnings of $1.11 per share for 2020. What is the net income for CBSH in the fourth quarter of 2020? The net income attributable to Commerce Bancshares, Inc. for Q4 2020 was $129.9 million. How did CBSH perform in 2020 compared to 2019? In 2020, CBSH's earnings per share fell to $2.91 and net income declined to $354.1 million, compared to $3.41 and $421.2 million in 2019. What improvements did CBSH note in Q4 2020? CBSH noted improvements in the economy, which led to a decrease in the allowance for credit losses. How did CBSH's non-interest income perform in Q4 2020? Non-interest income from trust fees reached a record high during Q4 2020. Commerce Bancshares Inc NASDAQ:CBSH CBSH Rankings #909 Ranked by Market Cap #1563 Ranked by Dividends CBSH Latest News Oct 25, 2024 Commerce Bancshares, Inc. Declares Stock Dividend and Quarterly Cash Dividend on Common Stock Oct 17, 2024 Commerce Bancshares, Inc. Reports Third Quarter Earnings Per Share of $1.07 Jul 26, 2024 Commerce Bancshares, Inc. Declares Cash Dividend on Common Stock Jul 18, 2024 Commerce Bancshares, Inc. Reports Second Quarter Earnings Per Share of $1.07 May 8, 2024 Commerce Bancshares, Inc. Announces Visa Inc.’s Acceptance of Class B-1 Common Stock and Investment Securities Repositioning CBSH Stock Data Market Cap 9.43B Float 124.83M Insiders Ownership 2.57% Institutions Ownership 71.4% Short Percent 1.69% Industry Banks - Regional Sector State Commercial Banks Website Link Country United States of America City KANSAS CITY Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit Google News © 2020-2024 StockTitan.net