Exhibit 99.1
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1000 Walnut Street / Suite 700 / Kansas City, Missouri 64106 / 816.234.2000 |
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FOR IMMEDIATE RELEASE:
Wednesday, January 20, 2016
COMMERCE BANCSHARES, INC. ANNOUNCES
FOURTH QUARTER EARNINGS PER COMMON SHARE OF $.63
Commerce Bancshares, Inc. announced earnings of $.63 per common share for the three months ended December 31, 2015 compared to $.60 per common share in the fourth quarter of 2014 and $.63 per common share in the previous quarter. Net income attributable to Commerce Bancshares, Inc. (net income) for the fourth quarter amounted to $63.7 million, compared to $62.7 million in the same quarter last year and $64.6 million in the previous quarter. For the current quarter, the return on average assets totaled 1.05%, the return on average common equity was 10.9%, and the efficiency ratio was 62.9%.
For the year ended December 31, 2015, earnings per common share totaled $2.56 compared to $2.49 in 2014. Net income amounted to $263.7 million in 2015 compared to $261.8 million in 2014. In 2015, the return on average assets was 1.11% and the return on average common equity was 11.4%.
In making this announcement, David Kemper, Chairman and CEO, said, “Loan growth remained strong this quarter as average loans increased $334 million, or 11% annualized, compared to the previous quarter. Customer demand was strongest for business and commercial construction loans, although business real estate, automobile and credit card loans also showed good growth. In the fourth quarter, average deposits grew $422 million, reflecting seasonal growth that normally occurs towards the end of the year. Net interest income increased slightly this quarter due to higher earning asset balances and higher rates earned on mortgage and asset-backed securities, but was offset by a decline in inflation income of $4.7 million on the Company’s inflation-protected securities. Fee income also grew 4.3% on higher fees mainly from deposit, bank card, trust and mortgage banking activities. Non-interest expense increased 2.5% over the previous quarter and grew 3.0% for the year.”
Mr. Kemper continued, “Credit quality remains strong as net loan charge-offs totaled $9.2 million this quarter, or .28% of average loans. During the current quarter, the provision for loan losses totaled $9.2 million, compared to $8.4 million in the previous quarter and $4.7 million last year. The allowance for loan losses amounted to $151.5 million this quarter, or 1.22% of period end loans. Compared to the previous quarter, non-accruing loans increased $796 thousand to $26.6 million and totaled .21% of period end loans this quarter.”
Total assets at December 31, 2015 were $24.6 billion, total loans were $12.4 billion, and total deposits were $20.0 billion. During the quarter, the Company paid a common cash dividend of $.214 per share, representing a 5% increase over the rate paid in 2014, and also paid a 6% cash dividend on its preferred stock. The Company also distributed a 5% stock dividend on its common stock during the fourth quarter of 2015.
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The following information was filed by Commerce Bancshares Inc (CBSH) on Wednesday, January 20, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.