Commerce Bancshares Inc. reports record first quarter earnings for 1996

Business Wire, April 17, 1996

KANSAS CITY, Mo.--(BUSINESS WIRE)--April 17, 1996--Commerce Bancshares Inc. announced record earnings of $27.3 million for the three months ended March 31, 1996, an increase of 9 percent compared to $25.0 million in the same period last year.

First quarter earnings per share also increased 9 percent to $.74. The returns on assets and equity for the current quarter were 1.16% and 12.17%, respectively.

In making the announcement, David W. Kemper, chairman and CEO, said, "The company posted solid results for the first quarter helped by strong growth in fee income and good expense control despite a higher provision for loan losses and an increase in amortization expense related to goodwill on newly acquired banks."

Kemper continued, "We are pleased with double digit growth in our money management, credit card and service fee income. Loan growth, however, has been flat in the last two quarters reflecting a slowdown in the domestic economy. On an acquisition adjusted basis, total non-interest income increased by 13% while core non-interest expenses, excluding intangible amortization and FDIC premium reductions, showed an increase of only 3%. Asset quality remains strong with non-performing assets at .41% of total assets at quarter end."

Total assets at March 31, 1996, were $9.5 billion, total loans were $5.3 billion, and total deposits were $8.1 billion. The allowance for loan losses totaled $98.7 million which is 1.86% of total loans and net charge-offs for the year totaled $5.4 million which represents .41% of average loans.

Also during the quarter, the company increased its cash dividend to shareholders by 11% and announced a two million share repurchase program.

Commerce Bancshares Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The company currently operates in over 230 locations in Missouri, Illinois and Kansas. The company also has five other operating subsidiaries involved in mortgage banking, credit related insurance, venture capital, and real estate activities.

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