Exhibit 99.1
|
| |
| CBSH |
| 1000 Walnut Street / Suite 700 / Kansas City, Missouri 64106 / 816.234.2000 |
|
FOR IMMEDIATE RELEASE:
Wednesday, July 13, 2016
COMMERCE BANCSHARES, INC. ANNOUNCES SECOND
QUARTER EARNINGS PER COMMON SHARE OF $.70
Commerce Bancshares, Inc. announced earnings of $.70 per common share for the three months ended June 30, 2016 compared to $.65 per share in the prior quarter and $.72 per share in the second quarter of 2015. Net income attributable to Commerce Bancshares, Inc. for the second quarter amounted to $69.9 million, compared to $65.4 million in the prior quarter and $74.4 million in the same quarter last year. For the quarter, the return on average assets was 1.15%, the return on average common equity was 11.7% and the efficiency ratio was 61.3%.
For the six months ended June 30, 2016, earnings per common share totaled $1.35 compared to $1.30 for the first six months of 2015. Net income attributable to Commerce Bancshares, Inc. amounted to $135.3 million for the six months ended June 30, 2016 compared to $135.4 million last year. For the first six months of 2016, the return on average assets was 1.11% and the return on average common equity was 11.4%.
In making this announcement, David W. Kemper, Chairman and CEO, said, “This quarter we continued to experience strong loan growth, improved net interest income, low credit losses and stable expenses. Average loans have grown over $300 million in each of the last three quarters, and growth in these higher earning assets has helped us manage the effects of continued low interest rates. Average deposits also grew $301.7 million this quarter, or 6% annualized, and funding costs remained low. Net interest income grew $8.1 million this quarter compared to the prior quarter, helped by higher loan interest and an increase in interest on inflation-protected securities. Core fee income continued to show good growth from deposit, trust, and mortgage banking activities. Non-interest expense totaled $177.1 million and reflected a slight decline from the previous quarter.”
Mr. Kemper continued, “Net loan charge-offs for the current quarter totaled $7.5 million, compared to $8.8 million in both the previous quarter and the second quarter of 2015. The decrease in net loan charge-offs compared to the previous quarter was largely due to increased commercial loan recoveries, especially in construction and business real estate loans, offset by slightly higher personal banking loan net losses. During the current quarter, the provision for loan losses totaled $9.2 million, or $1.7 million higher than net loan charge-offs, but slightly less than the prior quarter. The allowance for loan losses increased to $153.8 million at June 30, 2016, or 1.18% of period end loans. Total non-performing assets decreased $5.2 million from the previous quarter to $26.1 million this quarter.”
(more)
Total assets at June 30, 2016 were $24.7 billion, total loans were $13.1 billion, and total deposits were $20.2 billion. During the quarter, the Company paid a common cash dividend of $.225 per share, representing a 5% increase over the rate paid in 2015 and also paid a 6% cash dividend on its preferred stock.
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 approximately 350 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in credit related insurance and private equity activities.
This financial news release, including management's discussion of second quarter results, is posted to the Company's web site at www.commercebank.com.
* * * * * * * * * * * * * * *
For additional information, contact
Jeffery Aberdeen, Controller
at 1000 Walnut Street, Suite 700
Kansas City, MO 64106
or by telephone at (816) 234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com
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) | | June 30,
2016 | March 31,
2016 | June 30,
2015 | June 30,
2016 | June 30,
2015 |
| FINANCIAL SUMMARY | | |
| Net interest income | |
| $171,829 |
|
| $163,775 |
|
| $163,657 |
|
| $335,604 |
|
| $309,795 |
|
| Non-interest income | | 116,570 |
| 119,024 |
| 114,235 |
| 235,594 |
| 220,809 |
|
| Total revenue | | 288,399 |
| 282,799 |
| 277,892 |
| 571,198 |
| 530,604 |
|
| Investment securities gains (losses), net | | (744 | ) | (995 | ) | 2,143 |
| (1,739 | ) | 8,178 |
|
| Provision for loan losses | | 9,216 |
| 9,439 |
| 6,757 |
| 18,655 |
| 11,177 |
|
| Non-interest expense | | 177,089 |
| 177,473 |
| 165,463 |
| 354,562 |
| 329,308 |
|
| Income before taxes | | 101,350 |
| 94,892 |
| 107,815 |
| 196,242 |
| 198,297 |
|
| Income taxes | | 31,542 |
| 29,370 |
| 32,492 |
| 60,912 |
| 60,960 |
|
| Non-controlling interest expense (income) | | (85 | ) | 148 |
| 970 |
| 63 |
| 1,929 |
|
| Net income attributable to Commerce Bancshares, Inc. | 69,893 |
| 65,374 |
| 74,353 |
| 135,267 |
| 135,408 |
|
| Preferred stock dividends | | 2,250 |
| 2,250 |
| 2,250 |
| 4,500 |
| 4,500 |
|
| Net income available to common shareholders |
| $67,643 |
|
| $63,124 |
|
| $72,103 |
|
| $130,767 |
|
| $130,908 |
|
| Earnings per common share: | | | | | | |
| Net income — basic | |
| $.70 |
|
| $.65 |
|
| $.72 |
|
| $1.35 |
|
| $1.30 |
|
| Net income — diluted | |
| $.70 |
|
| $.65 |
|
| $.72 |
|
| $1.35 |
|
| $1.30 |
|
| Effective tax rate | | 31.10 | % | 31.00 | % | 30.41 | % | 31.05 | % | 31.04 | % |
| Tax equivalent net interest income | |
| $179,592 |
|
| $171,425 |
|
| $171,037 |
|
| $351,017 |
|
| $324,385 |
|
Average total interest earning assets (1) | | $ | 23,252,289 |
| $ | 23,332,333 |
| $ | 22,586,879 |
| $ | 23,292,311 |
| $ | 22,549,223 |
|
Diluted wtd. average shares outstanding
| | 95,630,629 |
| 95,782,109 |
| 99,437,469 |
| 95,706,370 |
| 99,899,840 |
|
| | | | | | | |
| RATIOS | | | | | | |
Average loans to deposits (2) | | 63.45 | % | 62.81 | % | 60.75 | % | 63.13 | % | 60.24 | % |
| Return on total average assets | | 1.15 |
| 1.07 |
| 1.26 |
| 1.11 |
| 1.15 |
|
Return on average common equity (3) | | 11.69 |
| 11.20 |
| 12.91 |
| 11.44 |
| 11.81 |
|
| Non-interest income to total revenue | | 40.42 |
| 42.09 |
| 41.11 |
| 41.25 |
| 41.61 |
|
Efficiency ratio (4) | | 61.27 |
| 62.62 |
| 59.39 |
| 61.93 |
| 61.89 |
|
| Net yield on interest earning assets | | 3.11 |
| 2.95 |
| 3.04 |
| 3.03 |
| 2.90 |
|
| | | | | | | |
| EQUITY SUMMARY | | | | | | |
| Cash dividends per common share | |
| $.225 |
|
| $.225 |
|
| $.214 |
|
| $.450 |
|
| $.429 |
|
| Cash dividends on common stock | |
| $21,762 |
|
| $21,760 |
|
| $21,353 |
|
| $43,522 |
|
| $43,105 |
|
| Cash dividends on preferred stock | |
| $2,250 |
|
| $2,250 |
|
| $2,250 |
|
| $4,500 |
|
| $4,500 |
|
Book value per common share (5) | |
| $24.67 |
|
| $23.85 |
|
| $22.15 |
| | |
Market value per common share (5) | |
| $47.90 |
|
| $44.95 |
|
| $44.54 |
| | |
| High market value per common share | |
| $49.41 |
|
| $45.96 |
|
| $45.71 |
| | |
| Low market value per common share | |
| $42.98 |
|
| $37.44 |
|
| $39.55 |
| | |
Common shares outstanding (5) | | 96,560,828 |
| 96,537,955 |
| 97,999,567 |
| | |
Tangible common equity to tangible assets (6) | | 9.09 | % | 8.84 | % | 8.58 | % | | |
| Tier I leverage ratio | | 9.36 | % | 9.11 | % | 9.08 | % | | |
| | | | | | | |
| OTHER QTD INFORMATION | | | | | | |
| Number of bank/ATM locations | | 346 |
| 346 |
| 349 |
| | |
| Full-time equivalent employees | | 4,779 |
| 4,765 |
| 4,768 |
| | |
| |
| (1) | Excludes allowance for loan losses and unrealized gains/(losses) on available for sale 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. |
| |
| (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). |
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME |
| | | | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | For the Six Months Ended |
(Unaudited) (In thousands, except per share data) | | June 30,
2016 | March 31,
2016 | December 31,
2015 | September 30,
2015 | June 30,
2015 | June 30,
2016 | June 30,
2015 |
| Interest income | |
| $180,065 |
|
| $172,128 |
|
| $169,742 |
|
| $169,115 |
|
| $170,577 |
|
| $352,193 |
|
| $323,559 |
|
| Interest expense | | 8,236 |
| 8,353 |
| 7,255 |
| 7,077 |
| 6,920 |
| 16,589 |
| 13,764 |
|
| Net interest income | | 171,829 |
| 163,775 |
| 162,487 |
| 162,038 |
| 163,657 |
| 335,604 |
| 309,795 |
|
| Provision for loan losses | | 9,216 |
| 9,439 |
| 9,186 |
| 8,364 |
| 6,757 |
| 18,655 |
| 11,177 |
|
| Net interest income after provision for loan losses | 162,613 |
| 154,336 |
| 153,301 |
| 153,674 |
| 156,900 |
| 316,949 |
| 298,618 |
|
| NON-INTEREST INCOME | | | | | | | | |
| Bank card transaction fees | | 45,065 |
| 44,470 |
| 46,320 |
| 44,635 |
| 45,672 |
| 89,535 |
| 87,971 |
|
| Trust fees | | 31,464 |
| 30,370 |
| 30,054 |
| 29,630 |
| 30,531 |
| 61,834 |
| 60,117 |
|
| Deposit account charges and other fees | 21,328 |
| 20,691 |
| 21,606 |
| 20,674 |
| 19,637 |
| 42,019 |
| 38,136 |
|
| Capital market fees | | 2,500 |
| 2,725 |
| 3,116 |
| 2,620 |
| 2,738 |
| 5,225 |
| 5,740 |
|
| Consumer brokerage services | | 3,491 |
| 3,509 |
| 3,254 |
| 3,687 |
| 3,507 |
| 7,000 |
| 6,843 |
|
| Loan fees and sales | | 3,196 |
| 2,510 |
| 2,101 |
| 1,855 |
| 2,183 |
| 5,706 |
| 4,272 |
|
| Other | | 9,526 |
| 14,749 |
| 9,591 |
| 8,187 |
| 9,967 |
| 24,275 |
| 17,730 |
|
| Total non-interest income | | 116,570 |
| 119,024 |
| 116,042 |
| 111,288 |
| 114,235 |
| 235,594 |
| 220,809 |
|
| INVESTMENT SECURITIES GAINS (LOSSES), NET | (744 | ) | (995 | ) | (1,480 | ) | (378 | ) | 2,143 |
| (1,739 | ) | 8,178 |
|
| NON-INTEREST EXPENSE | | | | | | | | |
| Salaries and employee benefits | | 104,808 |
| 106,859 |
| 102,098 |
| 100,874 |
| 99,655 |
| 211,667 |
| 197,729 |
|
| Net occupancy | | 11,092 |
| 11,303 |
| 10,981 |
| 11,247 |
| 10,999 |
| 22,395 |
| 22,560 |
|
| Equipment | | 4,781 |
| 4,634 |
| 4,915 |
| 4,789 |
| 4,679 |
| 9,415 |
| 9,382 |
|
| Supplies and communication | | 5,693 |
| 6,829 |
| 6,554 |
| 5,609 |
| 5,226 |
| 12,522 |
| 10,807 |
|
| Data processing and software | | 22,770 |
| 22,899 |
| 22,274 |
| 21,119 |
| 21,045 |
| 45,669 |
| 40,551 |
|
| Marketing | | 4,389 |
| 3,813 |
| 3,539 |
| 4,343 |
| 4,307 |
| 8,202 |
| 8,225 |
|
| Deposit insurance | | 3,143 |
| 3,165 |
| 3,145 |
| 2,981 |
| 3,019 |
| 6,308 |
| 6,020 |
|
| Other | | 20,413 |
| 17,971 |
| 22,271 |
| 20,440 |
| 16,533 |
| 38,384 |
| 34,034 |
|
| Total non-interest expense | | 177,089 |
| 177,473 |
| 175,777 |
| 171,402 |
| 165,463 |
| 354,562 |
| 329,308 |
|
| Income before income taxes | | 101,350 |
| 94,892 |
| 92,086 |
| 93,182 |
| 107,815 |
| 196,242 |
| 198,297 |
|
| Less income taxes | | 31,542 |
| 29,370 |
| 27,661 |
| 27,969 |
| 32,492 |
| 60,912 |
| 60,960 |
|
| Net income | | 69,808 |
| 65,522 |
| 64,425 |
| 65,213 |
| 75,323 |
| 135,330 |
| 137,337 |
|
| Less non-controlling interest expense (income) | (85 | ) | 148 |
| 715 |
| 601 |
| 970 |
| 63 |
| 1,929 |
|
| Net income attributable to Commerce Bancshares, Inc. | 69,893 |
| 65,374 |
| 63,710 |
| 64,612 |
| 74,353 |
| 135,267 |
| 135,408 |
|
| Less preferred stock dividends | | 2,250 |
| 2,250 |
| 2,250 |
| 2,250 |
| 2,250 |
| 4,500 |
| 4,500 |
|
| Net income available to common shareholders |
| $67,643 |
|
| $63,124 |
|
| $61,460 |
|
| $62,362 |
|
| $72,103 |
|
| $130,767 |
|
| $130,908 |
|
| Net income per common share — basic |
| $.70 |
|
| $.65 |
|
| $.63 |
|
| $.63 |
|
| $.72 |
|
| $1.35 |
|
| $1.30 |
|
| Net income per common share — diluted |
| $.70 |
|
| $.65 |
|
| $.63 |
|
| $.63 |
|
| $.72 |
|
| $1.35 |
|
| $1.30 |
|
| | | | | | | | | |
| OTHER INFORMATION | | | | | | | | |
| Return on total average assets | | 1.15 | % | 1.07 | % | 1.05 | % | 1.09 | % | 1.26 | % | 1.11 | % | 1.15 | % |
Return on average common equity (1) | 11.69 |
| 11.20 |
| 10.88 |
| 11.25 |
| 12.91 |
| 11.44 |
| 11.81 |
|
Efficiency ratio (2) | | 61.27 |
| 62.62 |
| 62.97 |
| 62.55 |
| 59.39 |
| 61.93 |
| 61.89 |
|
| Effective tax rate | | 31.10 |
| 31.00 |
| 30.27 |
| 30.21 |
| 30.41 |
| 31.05 |
| 31.04 |
|
Net yield on interest earning assets
| 3.11 |
| 2.95 |
| 2.94 |
| 3.00 |
| 3.04 |
| 3.03 |
| 2.90 |
|
| Tax equivalent net interest income | |
| $179,592 |
|
| $171,425 |
|
| $170,141 |
|
| $169,512 |
|
| $171,037 |
|
| $351,017 |
|
| $324,385 |
|
| |
| (1) | Annualized net income available to common shareholders divided by average total equity less preferred stock. |
| |
| (2) | The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue. |
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - PERIOD END
|
| | | | | | | | | | |
(Unaudited) (In thousands) | | June 30,
2016 | March 31,
2016 | June 30,
2015 |
| ASSETS | | | | |
| Loans | | | | |
| Business | | $ | 4,840,248 |
| $ | 4,575,081 |
| $ | 4,267,997 |
|
| Real estate — construction and land | | 819,896 |
| 745,369 |
| 448,887 |
|
| Real estate — business | | 2,399,271 |
| 2,395,933 |
| 2,276,231 |
|
| Real estate — personal | | 1,927,340 |
| 1,903,969 |
| 1,901,671 |
|
| Consumer | | 1,939,486 |
| 1,904,320 |
| 1,848,457 |
|
| Revolving home equity | | 408,301 |
| 423,005 |
| 430,880 |
|
| Consumer credit card | | 753,166 |
| 744,364 |
| 750,731 |
|
| Overdrafts | | 4,180 |
| 5,829 |
| 3,627 |
|
| Total loans | | 13,091,888 |
| 12,697,870 |
| 11,928,481 |
|
| Allowance for loan losses | | (153,832 | ) | (152,132 | ) | (151,532 | ) |
| Net loans | | 12,938,056 |
| 12,545,738 |
| 11,776,949 |
|
| Loans held for sale | | 33,254 |
| 60,078 |
| 7,852 |
|
| Investment securities: | | | | |
| Available for sale | | 9,221,346 |
| 9,552,179 |
| 9,221,821 |
|
| Trading | | 30,512 |
| 23,130 |
| 18,971 |
|
| Non-marketable | | 111,931 |
| 117,259 |
| 108,346 |
|
| Total investment securities | | 9,363,789 |
| 9,692,568 |
| 9,349,138 |
|
| Federal funds sold and short-term securities purchased under agreements to resell | | 13,725 |
| 9,075 |
| 26,875 |
|
| Long-term securities purchased under agreements to resell | | 825,000 |
| 825,000 |
| 1,050,000 |
|
| Interest earning deposits with banks | | 183,223 |
| 171,651 |
| 264,683 |
|
| Cash and due from banks | | 428,300 |
| 375,481 |
| 409,791 |
|
| Land, buildings and equipment — net | | 342,237 |
| 350,423 |
| 353,366 |
|
| Goodwill | | 138,921 |
| 138,921 |
| 138,921 |
|
| Other intangible assets — net | | 6,561 |
| 6,539 |
| 6,978 |
|
| Other assets | | 436,627 |
| 331,478 |
| 321,382 |
|
| Total assets | | $ | 24,709,693 |
| $ | 24,506,952 |
| $ | 23,705,935 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
| Deposits: | | | | |
| Non-interest bearing | | $ | 6,906,265 |
| $ | 7,065,066 |
| $ | 6,886,509 |
|
| Savings, interest checking and money market | | 10,978,734 |
| 11,205,357 |
| 10,369,031 |
|
| Time open and C.D.’s of less than $100,000 | | 749,160 |
| 766,810 |
| 833,161 |
|
| Time open and C.D.’s of $100,000 and over | | 1,515,888 |
| 1,649,076 |
| 1,200,008 |
|
| Total deposits | | 20,150,047 |
| 20,686,309 |
| 19,288,709 |
|
| Federal funds purchased and securities sold under agreements to repurchase | | 1,632,272 |
| 957,388 |
| 1,666,043 |
|
| Other borrowings | | 103,878 |
| 103,806 |
| 103,843 |
|
| Other liabilities | | 296,675 |
| 312,167 |
| 331,980 |
|
| Total liabilities | | 22,182,872 |
| 22,059,670 |
| 21,390,575 |
|
| Stockholders’ equity: | | | | |
| Preferred stock | | 144,784 |
| 144,784 |
| 144,784 |
|
| Common stock | | 489,862 |
| 489,862 |
| 484,155 |
|
| Capital surplus | | 1,333,995 |
| 1,332,429 |
| 1,261,307 |
|
| Retained earnings | | 470,558 |
| 424,677 |
| 514,451 |
|
| Treasury stock | | (51,707 | ) | (52,653 | ) | (143,565 | ) |
| Accumulated other comprehensive income | | 134,424 |
| 102,929 |
| 48,789 |
|
| Total stockholders’ equity | | 2,521,916 |
| 2,442,028 |
| 2,309,921 |
|
| Non-controlling interest | | 4,905 |
| 5,254 |
| 5,439 |
|
| Total equity | | 2,526,821 |
| 2,447,282 |
| 2,315,360 |
|
| Total liabilities and equity | | $ | 24,709,693 |
| $ | 24,506,952 |
| $ | 23,705,935 |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCE SHEETS |
| | | | | | | | | | | | | | | |
(Unaudited) (Dollars in thousands) | For the Three Months Ended |
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 |
| ASSETS: | | | | | |
| Loans: | | | | | |
| Business | $ | 4,691,476 |
| $ | 4,491,556 |
| $ | 4,351,756 |
| $ | 4,221,478 |
| $ | 4,135,362 |
|
| Real estate — construction and land | 789,329 |
| 682,557 |
| 584,185 |
| 476,331 |
| 432,008 |
|
| Real estate — business | 2,389,170 |
| 2,382,094 |
| 2,320,439 |
| 2,284,928 |
| 2,287,885 |
|
| Real estate — personal | 1,905,968 |
| 1,909,532 |
| 1,916,219 |
| 1,911,469 |
| 1,891,109 |
|
| Consumer | 1,927,925 |
| 1,934,577 |
| 1,908,540 |
| 1,861,636 |
| 1,815,699 |
|
| Revolving home equity | 413,198 |
| 429,682 |
| 429,582 |
| 434,355 |
| 429,644 |
|
| Consumer credit card | 738,130 |
| 752,098 |
| 756,743 |
| 746,066 |
| 734,289 |
|
| Overdrafts | 3,916 |
| 4,772 |
| 6,303 |
| 5,233 |
| 4,510 |
|
Total loans | 12,859,112 |
| 12,586,868 |
| 12,273,767 |
| 11,941,496 |
| 11,730,506 |
|
| Allowance for loan losses | (151,622 | ) | (151,308 | ) | (150,856 | ) | (150,890 | ) | (152,994 | ) |
| Net loans | 12,707,490 |
| 12,435,560 |
| 12,122,911 |
| 11,790,606 |
| 11,577,512 |
|
| Loans held for sale | 56,272 |
| 9,360 |
| 6,118 |
| 4,471 |
| 3,969 |
|
| Investment securities: | | | | | |
| U.S. government and federal agency obligations | 698,374 |
| 703,212 |
| 580,816 |
| 402,591 |
| 424,823 |
|
| Government-sponsored enterprise obligations | 666,354 |
| 776,488 |
| 824,066 |
| 887,631 |
| 988,120 |
|
| State and municipal obligations | 1,763,849 |
| 1,718,587 |
| 1,779,704 |
| 1,805,931 |
| 1,799,355 |
|
| Mortgage-backed securities | 3,394,466 |
| 3,424,716 |
| 3,335,627 |
| 3,217,589 |
| 3,161,050 |
|
| Asset-backed securities | 2,377,708 |
| 2,537,472 |
| 2,574,426 |
| 2,546,982 |
| 2,839,483 |
|
Other marketable securities | 337,572 |
| 342,382 |
| 337,340 |
| 302,323 |
| 249,075 |
|
| Unrealized gain on investment securities | 191,565 |
| 149,319 |
| 130,231 |
| 118,404 |
| 170,039 |
|
| Total available for sale securities | 9,429,888 |
| 9,652,176 |
| 9,562,210 |
| 9,281,451 |
| 9,631,945 |
|
Trading securities | 20,540 |
| 18,190 |
| 23,217 |
| 22,283 |
| 19,758 |
|
| Non-marketable securities | 116,103 |
| 127,769 |
| 114,321 |
| 114,062 |
| 109,522 |
|
| Total investment securities | 9,566,531 |
| 9,798,135 |
| 9,699,748 |
| 9,417,796 |
| 9,761,225 |
|
| Federal funds sold and short-term securities purchased under agreements to resell | 11,916 |
| 17,378 |
| 18,694 |
| 21,012 |
| 12,812 |
|
| Long-term securities purchased under agreements to resell | 824,999 |
| 850,275 |
| 902,174 |
| 1,007,606 |
| 1,049,999 |
|
| Interest earning deposits with banks | 125,024 |
| 219,636 |
| 178,486 |
| 160,687 |
| 198,407 |
|
| Other assets | 1,113,214 |
| 1,172,916 |
| 1,119,602 |
| 1,106,739 |
| 1,135,601 |
|
| Total assets | $ | 24,405,446 |
| $ | 24,503,260 |
| $ | 24,047,733 |
| $ | 23,508,917 |
| $ | 23,739,525 |
|
| | | | | | |
| LIABILITIES AND EQUITY: | | | | | |
| Non-interest bearing deposits | $ | 6,885,889 |
| $ | 6,905,673 |
| $ | 6,995,666 |
| $ | 6,781,592 |
| $ | 6,744,536 |
|
| Savings | 787,478 |
| 761,020 |
| 736,824 |
| 739,172 |
| 738,769 |
|
| Interest checking and money market | 10,287,923 |
| 10,128,543 |
| 9,805,457 |
| 9,619,621 |
| 9,759,608 |
|
| Time open & C.D.’s of less than $100,000 | 758,703 |
| 775,221 |
| 796,639 |
| 820,792 |
| 844,675 |
|
| Time open & C.D.’s of $100,000 and over | 1,635,892 |
| 1,483,700 |
| 1,219,803 |
| 1,171,617 |
| 1,227,322 |
|
| Total deposits | 20,355,885 |
| 20,054,157 |
| 19,554,389 |
| 19,132,794 |
| 19,314,910 |
|
| Borrowings: | | | | | |
| Federal funds purchased and securities sold under agreements to repurchase | 1,211,892 |
| 1,404,754 |
| 1,707,430 |
| 1,677,322 |
| 1,674,682 |
|
| Other borrowings | 104,649 |
| 377,711 |
| 103,819 |
| 103,875 |
| 103,846 |
|
| Total borrowings | 1,316,541 |
| 1,782,465 |
| 1,811,249 |
| 1,781,197 |
| 1,778,528 |
|
| Other liabilities | 260,179 |
| 254,437 |
| 295,718 |
| 250,626 |
| 260,945 |
|
| Total liabilities | 21,932,605 |
| 22,091,059 |
| 21,661,356 |
| 21,164,617 |
| 21,354,383 |
|
| Equity | 2,472,841 |
| 2,412,201 |
| 2,386,377 |
| 2,344,300 |
| 2,385,142 |
|
| Total liabilities and equity | $ | 24,405,446 |
| $ | 24,503,260 |
| $ | 24,047,733 |
| $ | 23,508,917 |
| $ | 23,739,525 |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE RATES |
| | | | | | | | | | | |
(Unaudited) (Dollars in thousands) | For the Three Months Ended | |
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |
| ASSETS: | | | | | | |
| Loans: | | | | | | |
Business (1) | 2.90 | % | 2.87 | % | 2.78 | % | 2.73 | % | 2.79 | % | |
| Real estate — construction and land | 3.46 |
| 3.51 |
| 3.41 |
| 3.52 |
| 3.65 |
| |
| Real estate — business | 3.69 |
| 3.70 |
| 3.68 |
| 3.71 |
| 3.83 |
| |
| Real estate — personal | 3.76 |
| 3.77 |
| 3.76 |
| 3.73 |
| 3.77 |
| |
| Consumer | 3.80 |
| 3.87 |
| 3.91 |
| 4.00 |
| 3.92 |
| |
| Revolving home equity | 3.59 |
| 3.52 |
| 3.44 |
| 3.50 |
| 3.60 |
| |
| Consumer credit card | 11.54 |
| 11.42 |
| 11.23 |
| 11.59 |
| 11.74 |
| |
| Overdrafts | — |
| — |
| — |
| — |
| — |
| |
| Total loans | 3.86 |
| 3.89 |
| 3.85 |
| 3.89 |
| 3.95 |
| |
| Loans held for sale | 4.95 |
| 5.80 |
| 5.40 |
| 4.26 |
| 3.94 |
| |
| Investment securities: | | | | | | |
| U.S. government and federal agency obligations | 3.48 |
| .40 |
| .17 |
| 4.39 |
| 6.09 |
| |
| Government-sponsored enterprise obligations | 3.03 |
| 1.93 |
| 1.89 |
| 1.77 |
| 1.82 |
| |
State and municipal obligations (1) | 3.60 |
| 3.66 |
| 3.64 |
| 3.44 |
| 3.49 |
| |
| Mortgage-backed securities | 2.36 |
| 2.45 |
| 2.54 |
| 2.47 |
| 2.61 |
| |
| Asset-backed securities | 1.45 |
| 1.39 |
| 1.25 |
| 1.15 |
| 1.03 |
| |
Other marketable securities (1) | 2.77 |
| 2.79 |
| 2.83 |
| 2.65 |
| 2.61 |
| |
| Total available for sale securities | 2.51 |
| 2.20 |
| 2.20 |
| 2.32 |
| 2.38 |
| |
Trading securities (1) | 2.27 |
| 2.87 |
| 2.65 |
| 2.72 |
| 2.86 |
| |
Non-marketable securities (1) | 8.03 |
| 6.54 |
| 8.19 |
| 8.28 |
| 8.90 |
| |
| Total investment securities | 2.58 |
| 2.26 |
| 2.27 |
| 2.39 |
| 2.45 |
| |
| Federal funds sold and short-term securities purchased under agreements to resell | .64 |
| .56 |
| .32 |
| .40 |
| .47 |
| |
| Long-term securities purchased under agreements to resell | 1.64 |
| 1.64 |
| 1.40 |
| 1.29 |
| 1.40 |
| |
| Interest earning deposits with banks | .49 |
| .49 |
| .28 |
| .25 |
| .25 |
| |
| Total interest earning assets | 3.25 |
| 3.10 |
| 3.07 |
| 3.12 |
| 3.16 |
| |
| | | | | | | |
| LIABILITIES AND EQUITY: | | | | | | |
| Interest bearing deposits: | | | | | | |
| Savings | .11 |
| .12 |
| .12 |
| .13 |
| .11 |
| |
| Interest checking and money market | .13 |
| .13 |
| .13 |
| .13 |
| .13 |
| |
| Time open & C.D.’s of less than $100,000 | .38 |
| .38 |
| .37 |
| .38 |
| .39 |
| |
| Time open & C.D.’s of $100,000 and over | .58 |
| .54 |
| .51 |
| .53 |
| .49 |
| |
| Total interest bearing deposits | .20 |
| .19 |
| .18 |
| .18 |
| .18 |
| |
| Borrowings: | | | | | | |
| Federal funds purchased and securities sold under agreements to repurchase | .24 |
| .25 |
| .14 |
| .11 |
| .10 |
| |
| Other borrowings | 3.49 |
| 1.33 |
| 3.47 |
| 3.43 |
| 3.44 |
| |
| Total borrowings | .50 |
| .48 |
| .33 |
| .31 |
| .30 |
| |
| Total interest bearing liabilities | .22 | % | .23 | % | .20 | % | .20 | % | .19 | % | |
| | | | | | | |
| Net yield on interest earning assets | 3.11 | % | 2.95 | % | 2.94 | % | 3.00 | % | 3.04 | % | |
(1) Stated on a tax equivalent basis using a federal income tax rate of 35%.
|
| | | | | | | | | | | | | | | | | | | | | | |
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
|
| CREDIT QUALITY |
| | | | | | | | | |
| | | For the Three Months Ended | For the Six Months Ended |
| (Unaudited) (In thousands, except per share data) | | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | June 30, 2016 | June 30, 2015 |
| ALLOWANCE FOR LOAN LOSSES | | | | | | | | |
| Balance at beginning of period | | $ | 152,132 |
| $ | 151,532 |
| $ | 151,532 |
| $ | 151,532 |
| $ | 153,532 |
| $ | 151,532 |
| $ | 156,532 |
|
| Provision for losses | | 9,216 |
| 9,439 |
| 9,186 |
| 8,364 |
| 6,757 |
| 18,655 |
| 11,177 |
|
| Net charge-offs (recoveries): | | | | | | | | |
| Commercial portfolio: | | | | | | | | |
| Business | | (65 | ) | 463 |
| (133 | ) | (175 | ) | (239 | ) | 398 |
| (80 | ) |
| Real estate — construction and land | | (507 | ) | (11 | ) | 60 |
| (67 | ) | (309 | ) | (518 | ) | (1,255 | ) |
| Real estate — business | | (1,030 | ) | (242 | ) | (626 | ) | (22 | ) | 764 |
| (1,272 | ) | 515 |
|
| | | (1,602 | ) | 210 |
| (699 | ) | (264 | ) | 216 |
| (1,392 | ) | (820 | ) |
| Personal banking portfolio: | | | | | | | | |
| Consumer credit card | | 6,650 |
| 5,918 |
| 6,479 |
| 5,784 |
| 6,424 |
| 12,568 |
| 12,776 |
|
| Consumer | | 1,781 |
| 2,599 |
| 2,251 |
| 2,435 |
| 1,849 |
| 4,380 |
| 3,592 |
|
| Overdraft | | 307 |
| 219 |
| 487 |
| 429 |
| 212 |
| 526 |
| 434 |
|
| Real estate — personal | | 305 |
| (195 | ) | 458 |
| (69 | ) | (47 | ) | 110 |
| 52 |
|
| Revolving home equity | | 75 |
| 88 |
| 210 |
| 49 |
| 103 |
| 163 |
| 143 |
|
| | | 9,118 |
| 8,629 |
| 9,885 |
| 8,628 |
| 8,541 |
| 17,747 |
| 16,997 |
|
| Total net loan charge-offs | | 7,516 |
| 8,839 |
| 9,186 |
| 8,364 |
| 8,757 |
| 16,355 |
| 16,177 |
|
| Balance at end of period | | $ | 153,832 |
| $ | 152,132 |
| $ | 151,532 |
| $ | 151,532 |
| $ | 151,532 |
| $ | 153,832 |
| $ | 151,532 |
|
| | | | | | | | | |
| NET CHARGE-OFF RATIOS* | | | | | | | | |
| Commercial portfolio: | | | | | | | | |
| Business | | (.01 | )% | .04 | % | (.01 | )% | (.02 | )% | (.02 | )% | .02 | % | — | % |
| Real estate — construction and land | | (.26 | ) | (.01 | ) | .04 |
| (.06 | ) | (.29 | ) | (.14 | ) | (.60 | ) |
| Real estate — business | | (.17 | ) | (.04 | ) | (.11 | ) | — |
| .13 |
| (.11 | ) | .05 |
|
| | | (.08 | ) | .01 |
| (.04 | ) | (.01 | ) | .01 |
| (.04 | ) | (.02 | ) |
| Personal banking portfolio: | | | | | | | | |
| Consumer credit card | | 3.62 |
| 3.16 |
| 3.40 |
| 3.08 |
| 3.51 |
| 3.39 |
| 3.47 |
|
| Consumer | | .37 |
| .54 |
| .47 |
| .52 |
| .41 |
| .46 |
| .41 |
|
| Overdraft | | 31.53 |
| 18.46 |
| 30.65 |
| 32.52 |
| 18.85 |
| 24.35 |
| 17.30 |
|
| Real estate — personal | | .06 |
| (.04 | ) | .09 |
| (.01 | ) | (.01 | ) | .01 |
| .01 |
|
| Revolving home equity | | .07 |
| .08 |
| .19 |
| .04 |
| .10 |
| .08 |
| .07 |
|
| | | .74 |
| .69 |
| .78 |
| .69 |
| .70 |
| .71 |
| .71 |
|
| Total | | .24 | % | .28 | % | .30 | % | .28 | % | .30 | % | .26 | % | .28 | % |
| | | | | | | | | |
| CREDIT QUALITY RATIOS | | | | | | | | |
| Non-performing assets to total loans | | .20 | % | .25 | % | .24 | % | .24 | % | .26 | % | | |
| Non-performing assets to total assets | | .11 |
| .13 |
| .12 |
| .12 |
| .13 |
| | |
| Allowance for loan losses to total loans | | 1.18 |
| 1.20 |
| 1.22 |
| 1.24 |
| 1.27 |
| | |
| | | | | | | | | |
| NON-PERFORMING ASSETS | | | | | | | | |
| Non-accrual loans: | | | | | | | | |
| Business | | $ | 12,716 |
| $ | 16,098 |
| $ | 10,874 |
| $ | 11,699 |
| $ | 11,856 |
| | |
| Real estate — construction and land | | 2,170 |
| 2,710 |
| 3,090 |
| 4,046 |
| 3,600 |
| | |
| Real estate — business | | 5,236 |
| 6,234 |
| 7,863 |
| 5,054 |
| 5,643 |
| | |
| Real estate — personal | | 4,293 |
| 4,205 |
| 4,425 |
| 4,980 |
| 5,446 |
| | |
| Consumer | | — |
| — |
| — |
| — |
| 100 |
| | |
| Revolving home equity | | 109 |
| 120 |
| 323 |
| — |
| — |
| | |
| Total | | 24,524 |
| 29,367 |
| 26,575 |
| 25,779 |
| 26,645 |
| | |
| Foreclosed real estate | | 1,609 |
| 1,997 |
| 2,819 |
| 3,053 |
| 4,185 |
| | |
| Total non-performing assets | | $ | 26,133 |
| $ | 31,364 |
| $ | 29,394 |
| $ | 28,832 |
| $ | 30,830 |
| | |
| | | | | | | | | |
| Loans past due 90 days and still accruing interest | $ | 15,892 |
| $ | 15,360 |
| $ | 16,467 |
| $ | 14,707 |
| $ | 14,218 |
| | |
COMMERCE BANCSHARES, INC.
Management Discussion of Second Quarter Results
June 30, 2016
For the quarter ended June 30, 2016, net income attributable to Commerce Bancshares, Inc. (net income) amounted to $69.9 million, compared to $65.4 million in the previous quarter and $74.4 million in the same quarter last year. The increase in net income over the previous quarter resulted mainly from an increase in net interest income of $8.1 million coupled with small declines in the provision for loan losses and non-interest expense. Non-interest income declined $2.5 million mainly due to a gain on sale of a former branch property in the prior quarter of $3.3 million. For the current quarter, the return on total average assets was 1.15%, the return on average common equity was 11.7%, and the efficiency ratio was 61.3%.
Balance Sheet Review
During the 2nd quarter of 2016, average total loans increased $319.2 million, or 10% annualized, compared to the previous quarter and increased $1.2 billion, or 10.1%, compared to the same period last year. Compared to the previous quarter, the increase in average loans resulted mainly from growth in business (up $199.9 million) and construction loans (up $106.8 million). The increase in business loans came from continued growth in commercial and industrial, leasing and tax-free lending activities, while commercial construction projects continued to drive growth in construction loans. Average consumer loans, including held for sale auto loans, increased by $36.6 million as a result of growth mainly in private banking, motorcycle and automobile lending. Average personal real estate loans declined slightly this quarter; however, the Company sold certain fixed rate loans totaling $18.2 million during the quarter, as part of an origination initiative that began in 2015. In March 2016, the Company identified certain automobile loans totaling $50.4 million which were reclassified as held for sale. As of June 30, 2016, loans totaling $21.8 million had been sold and the remaining loans, totaling $20.8 million, continue to be offered for sale.
During the 2nd quarter of 2016, total average available for sale investment securities at fair value declined $222.3 million to $9.4 billion. Purchases of new securities totaled $193.2 million in the 2nd quarter of 2016 and were offset by sales, maturities and pay downs of $569.3 million. Government-sponsored agency securities decreased on average by $110.1 million, while average mortgage-backed and asset-backed securities declined $190.0 million. At June 30, 2016, the duration of the investment portfolio was 2.6 years, and maturities and pay downs of approximately $1.6 billion are expected to occur during the next 12 months.
Total average deposits increased $301.7 million, or 1.5%, this quarter compared to the previous quarter. The increase in average deposits resulted mainly from increases in money market (increase of $143.7 million), savings (increase of $26.5 million), and jumbo certificate of deposit (increase of $152.2 million) accounts. Personal demand deposits increased $34.3 million, while business demand deposits declined $51.0 million this quarter. Compared to the previous quarter, total average consumer and commercial deposits increased $194.6 million and $155.2 million, respectively, while private banking deposits decreased $44.9 million. The average loans to deposits ratio was 63.5% in the current quarter and 62.8% in the prior quarter.
Compared to the previous quarter, the Company’s average borrowings declined $465.9 million to $1.3 billion in the current quarter, as a result of a decline of $234.4 million in repurchase
agreements and a reduction in short-term FHLB debt of $272.7 million.
Net Interest Income
Net interest income (tax equivalent) in the 2nd quarter of 2016 amounted to $179.6 million compared with $171.4 million in the previous quarter, an increase of $8.2 million. Net interest income (tax equivalent) for the current quarter also increased $8.6 million compared to the 2nd quarter of last year. During the 2nd quarter of 2016, the net yield on earning assets (tax equivalent) was 3.11%, compared with 2.95% in the previous quarter and 3.04% in the same period last year.
The increase in net interest income (tax equivalent) in the current quarter compared to the prior quarter was due mainly to an increase in interest on investment securities of $5.8 million, growth in interest earned on loans, and a slight decline in interest expense. The higher interest on investment securities was mainly due to an increase in inflation income on treasury inflation-protected securities (TIPS) of $5.2 million coupled with increased earnings on government-sponsored agency securities of $1.6 million, as a result of early maturity calls on certain securities. Total inflation income for the quarter on TIPS totaled $3.7 million, compared to negative $1.5 million in the prior quarter. The yield on investment securities totaled 2.58% in the current quarter compared to 2.26% in the prior quarter.
Excluding the effects of inflation income and added earnings on government-sponsored agency securities noted above, the net yield on earning assets would have been 3.01% in the current quarter, 2.98% in the prior quarter, and 2.95% in the same period last year. During the current quarter, adjustments to premium amortization expense on mortgage-backed and asset-backed securities, due to changes in prepayment speed assumptions, were not significant.
Compared to the previous quarter, interest income (tax-equivalent) on loans increased $1.9 million mainly due to higher average balances of business and construction loans and higher rates on business loans. However, these increases in interest income were partly offset by lower yields on consumer banking loans. Overall, the average yield on the loan portfolio decreased 3 basis points this quarter to 3.86%.
Interest expense on deposits increased $392 thousand this quarter compared with the previous quarter due to higher rates and balances on jumbo certificates of deposit. Borrowing costs declined $509 thousand due to a reduction in the balance of short-term average FHLB debt and repurchase agreements.
Non-Interest Income
In the 2nd quarter of 2016, total non-interest income amounted to $116.6 million, an increase of $2.3 million, or 2.0%, compared to the same period last year. Also, current quarter non-interest income decreased $2.5 million, or 2.1%, when compared to amounts recorded in the previous quarter, mainly due to the sale of the branch property mentioned above. The increase in non-interest income over the same period last year was due to growth in deposit, trust, sweep, and loan fees, partly offset by lower bank card, lease, capital market fees, swap and tax credit fee income.
Total bank card fees in the current quarter decreased $607 thousand, or 1.3%, from the same period last year. The decrease was mainly the result of a decline in commercial card fees of $1.2
COMMERCE BANCSHARES, INC.
Management Discussion of Second Quarter Results
June 30, 2016
million, or 5.4%, but was offset by growth in debit and credit card interchange fees of 3.0% and 3.4%, respectively. Total bank card fees this quarter were comprised of fees on corporate card ($21.8 million), debit card ($10.0 million), merchant ($6.9 million) and credit card ($6.3 million) transactions.
In the current quarter, trust fees increased $933 thousand, or 3.1%, compared to the same period last year, resulting from continued growth in private client, institutional, and corporate trust activities. Deposit account fees also increased $1.7 million, or 8.6%, compared to the same period last year as a result of 4.7% growth in corporate cash management fees coupled with higher deposit account service fees, which grew $1.3 million, or 36.0%.
Capital market fees decreased $238 thousand, or 8.7%, from the same quarter last year on lower sales volumes, while loan fees and sales grew by $1.0 million due to higher mortgage banking revenue from sales of newly-originated fixed rate residential mortgages. Included in other non-interest income are sweep fees, which increased $443 thousand in the current quarter over the same quarter last year, and fees from sales of interest rate swaps and sales of tax credits, which declined by $956 thousand and $280 thousand, respectively. Non-interest income comprised 40.4% of the Company’s total revenue this quarter.
Investment Securities Gains and Losses
The Company recorded net securities losses of $744 thousand this quarter, compared with net losses of $995 thousand last quarter and net gains of $2.1 million in the same period last year. Losses in the current quarter mainly resulted from unrealized fair value adjustments to the Company’s private equity investment portfolio.
Non-Interest Expense
Non-interest expense for the current quarter amounted to $177.1 million, a slight decrease from the previous quarter and was $11.6 million, or 7.0%, higher than the same period last year. The increase over the same period in the previous year was mainly due to higher costs for salaries and benefits, supplies and communication, data processing costs, and bank card rewards expense. Also, in the 2nd quarter of 2015, a recovery on a letter of credit exposure was recorded totaling $2.8 million that did not re-occur in 2016.
Compared to the 2nd quarter of last year, salaries and benefits expense increased $5.2 million. Growth in salaries expense of $3.8 million, or 4.4%, was mainly due to higher full-time salaries and incentive compensation costs. Benefits expense increased $1.4 million, or 9.8%, mostly due to higher medical costs. Growth in salaries expense compared to the previous year resulted mainly from higher staffing costs in commercial card, residential mortgage, trust, information technology and other support units. Full-time equivalent employees totaled 4,779 and 4,765 at June 30, 2016 and 2015, respectively.
Compared to the 2nd quarter of last year, occupancy, marketing and equipment costs grew by .8%, 1.9% and 2.2%, respectively, while costs for supplies and communication increased $467 thousand, or 8.9%, on higher costs related to reissuance of EMV chip cards and increased data network expenses. Data processing costs increased $1.7 million this quarter, mainly due to higher bank card processing costs, software expense and fees paid to outsourced data service providers. Bank card rewards expense (included in
other expense) grew by $1.4 million this quarter compared to the 2nd quarter of last year; however, part of this growth was due to reductions of $923 thousand in rewards expense estimates during the second quarter of last year that did not reoccur in the current quarter. Operating losses totaled $1.4 million this quarter compared to $2.2 million in the 2nd quarter of 2015, mainly due to lower bank card related fraud losses, partly offset by a $700 thousand operating loss accrual this quarter.
Income Taxes
The effective tax rate for the Company was 31.1% in the current quarter, compared to 31.0% in the previous quarter and 30.4% in the 2nd quarter of 2015.
Credit Quality
Net loan charge-offs in the 2nd quarter of 2016 amounted to $7.5 million, compared with $8.8 million in both the prior quarter and in the 2nd quarter of last year. The ratio of annualized net loan charge-offs to total average loans was .24% in the current quarter compared to .28% in the previous quarter and .30% in the 2nd quarter of last year.
In the 2nd quarter of 2016, annualized net loan charge-offs on average consumer credit card loans were 3.62%, compared with 3.16% in the previous quarter and 3.51% in the same period last year. Consumer loan net charge-offs were .37% of average consumer loans in the current quarter, .54% in the prior quarter and .41% in the same quarter last year. The provision for loan losses in the current quarter totaled $9.2 million, compared to $9.4 million in the prior quarter and $6.8 million in the 2nd quarter of last year. This quarter, the provision for loan losses exceeded net loan charge-offs by $1.7 million. At June 30, 2016, the allowance totaled $153.8 million, which was 1.18% of total loans and 627% of total non-accrual loans.
At June 30, 2016, total non-performing assets amounted to $26.1 million, a decrease of $5.2 million from the previous quarter. Non-performing assets are comprised of non-accrual loans and foreclosed real estate ($24.5 million and $1.6 million, respectively, at June 30, 2016). At June 30, 2016, the balance of non-accrual loans, which represented .19% of loans outstanding, included business loans of $12.7 million, business real estate loans of $5.2 million, personal real estate loans of $4.3 million and construction and land loans of $2.2 million. Loans more than 90 days past due and still accruing interest totaled $15.9 million at June 30, 2016.
Other
During the 2nd quarter of 2016, the Company paid a cash dividend of $.225 per common share, representing an increase of 5% over the rate paid in 2015. Also, a cash dividend of $2.3 million was paid on its preferred stock. Additionally, the Company purchased 21,769 shares of treasury stock this quarter at an average price of $47.33.
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.
