Exhibit 99.1
FOR IMMEDIATE RELEASE:
Tuesday, April 13, 2004
COMMERCE BANCSHARES, INC. REPORTS FIRST QUARTER
NET EARNINGS GROWTH OF 9%
Commerce Bancshares, Inc. announced earnings of $.75 per share for the three months ended March 31, 2004, an increase of 14% compared to $.66 per share in the first quarter of 2003. Net income for the first quarter amounted to $51.3 million compared with $47.2 million in the same period last year, an increase of 9%. The return on average assets for the three months ended March 31, 2004 was 1.45%, the return on equity was 14.1%, and the efficiency ratio was 59.2%.
In making this announcement, David W. Kemper, Chairman and CEO, said, “Growth in net income was driven largely by an increase in non-interest income coupled with continued good expense control. Trust, deposit and bank card fees all grew in excess of 10% when compared with the previous year. The investment securities portfolio was re-positioned this quarter, resulting in gains on sales of securities of $8.2 million compared to $2.3 million in the first quarter of 2003. Net interest income declined as earning assets re-priced lower due to a low interest rate environment. However, we did experience a moderate increase in loans outstanding since the fourth quarter of 2003.”
Mr. Kemper added, “Asset quality remains good with our allowance for loan losses at 1.63% of total outstanding loans and 400% of non-performing loans. Net loan charge-offs for the three months ended March 31, 2004 increased to ..61% of total average loans, compared to .46% for the same period last year. The increase in net loan charge-offs was the result of a single business loan, which was materially charged down during the quarter.”
Total assets at March 31, 2004 were $14.5 billion, total loans were $8.1 billion, and total deposits were $10.3 billion. At March 31, 2004, the allowance for loan losses amounted to $133.1 million and non-performing loans totaled $33.3 million or .41% of total loans. During the quarter, the Company increased its cash dividend to shareholders by 7%, making this the 36th consecutive year of per share dividend increases. Also during the quarter, the Company’s Board of Directors authorized a three million share stock buyback plan.
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 330 locations in Missouri, Illinois, and Kansas. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, venture capital, and real estate activities.
(more)
Posted to the Company’s web site is management’s discussion of first quarter results. To see this information please visit our web site at www.commercebank.com.
* * * * * * * * * * * * * * *
For additional information, contact
Jeffery Aberdeen, Controller
at PO Box 13686, Kansas City, MO
or by telephone at (816) 234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com
| (Amounts in thousands) | 12/31/03 | 3/31/04 | 3/31/03 | |||||||||
Non-Accrual Loans | $ | 32,523 | $ | 33,292 | $ | 32,026 | ||||||
Foreclosed Real Estate | $ | 1,162 | $ | 2,593 | $ | 1,748 | ||||||
Total Non-Performing Assets | $ | 33,685 | $ | 35,885 | $ | 33,774 | ||||||
Non-Performing Assets to Loans | .41 | % | .44 | % | .42 | % | ||||||
Non-Performing Assets to Total Assets | .24 | % | .25 | % | .25 | % | ||||||
Loans 90 Days & Over Past Due — Still Accruing | $ | 20,901 | $ | 14,772 | $ | 21,075 | ||||||
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
| (Unaudited) | For the Three Months Ended | |||||||||||
| December 31 | March 31 | March 31 | ||||||||||
| | 2003 | 2004 | 2003 | |||||||||
| Financial Summary(In thousands, except per share data) | ||||||||||||
| Net interest income | $ | 127,507 | $ | 122,984 | $ | 124,210 | ||||||
| Taxable equivalent net interest income | 128,149 | 123,572 | 124,854 | |||||||||
| Non-interest income | 76,420 | 85,969 | 74,606 | |||||||||
| Provision for loan losses | 11,002 | 10,250 | 10,020 | |||||||||
| Non-interest expense | 116,765 | 118,912 | 120,734 | |||||||||
| Net income | 53,861 | 51,324 | 47,228 | |||||||||
| Cash dividends | 14,613 | 15,501 | 10,992 | |||||||||
| Net total loan charge-offs | 8,482 | 12,379 | 8,976 | |||||||||
| Net business charge-offs (recoveries) | (1,111 | ) | 5,502 | 1,850 | ||||||||
| Net credit card charge-offs | 5,389 | 4,934 | 4,709 | |||||||||
| Net personal banking charge-offs | 2,468 | 1,972 | 2,391 | |||||||||
| Net real estate charge-offs (recoveries) | 730 | 102 | (392 | ) | ||||||||
| Net overdraft charge-offs (recoveries) | 1,006 | (131 | ) | 418 | ||||||||
| Per share: | ||||||||||||
| Net income — basic | $ | 0.79 | $ | 0.76 | $ | 0.67 | ||||||
| Net income — diluted | $ | 0.78 | $ | 0.75 | $ | 0.66 | ||||||
| Cash dividends | $ | 0.214 | $ | 0.230 | $ | 0.157 | ||||||
| Diluted wtd. average shares o/s | 69,385 | 68,778 | 70,952 | |||||||||
RATIOS | ||||||||||||
| Average loans to deposits | 79.38 | % | 79.87 | % | 80.52 | % | ||||||
| Return on total average assets | 1.54 | % | 1.45 | % | 1.46 | % | ||||||
| Return on total average stockholders’ equity | 14.77 | % | 14.09 | % | 13.30 | % | ||||||
| Efficiency ratio* | 56.82 | % | 59.24 | % | 61.20 | % | ||||||
AT PERIOD END | ||||||||||||
| Book value per share based on total stockholders’ equity | $ | 21.37 | $ | 22.04 | $ | 20.49 | ||||||
| Market value per share | $ | 49.02 | $ | 47.71 | $ | 34.81 | ||||||
| Allowance for loan losses as a percentage of loans | 1.66 | % | 1.63 | % | 1.65 | % | ||||||
| Tier I leverage ratio | 9.71 | % | 9.53 | % | 9.99 | % | ||||||
| Common shares outstanding | 67,891,458 | 67,317,054 | 69,718,011 | |||||||||
| Shareholders of record | 4,920 | 4,906 | 5,081 | |||||||||
| Number of bank/ATM locations | 328 | 327 | 333 | |||||||||
| Number of bank charters | 4 | 4 | 4 | |||||||||
| Full-time equivalent employees | 4,967 | 4,847 | 5,013 | |||||||||
| OTHER YTD INFORMATION | March 31 | March 31 | ||||||
| | 2004 | 2003 | ||||||
| High market value per share | $ | 50.00 | $ | 39.22 | ||||
| Low market value per share | $ | 44.75 | $ | 33.52 | ||||
* The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of net interest income and non-interest income (excluding gains/losses on securities transactions).
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
| (Unaudited) | For the Three Months Ended | |||||||||||
| (In thousands, except per share data) | December 31 | March 31 | March 31 | |||||||||
| | 2003 | 2004 | 2003 | |||||||||
INTEREST INCOME | ||||||||||||
| Interest and fees on loans | $ | 105,737 | $ | 104,009 | $ | 110,972 | ||||||
| Interest on investment securities | 47,646 | 44,592 | 44,464 | |||||||||
| Interest on federal funds sold and securities purchased under agreements to resell | 266 | 186 | 148 | |||||||||
| Total interest income | 153,649 | 148,787 | 155,584 | |||||||||
INTEREST EXPENSE | ||||||||||||
| Interest on deposits: | ||||||||||||
| Savings, interest checking and money market | 6,263 | 6,172 | 8,081 | |||||||||
| Time open and C.D.’s of less than $100,000 | 10,525 | 9,899 | 13,857 | |||||||||
| Time open and C.D.’s of $100,000 and over | 3,064 | 3,265 | 3,951 | |||||||||
| Interest on other borrowings | 6,290 | 6,467 | 5,485 | |||||||||
| Total interest expense | 26,142 | 25,803 | 31,374 | |||||||||
| Net interest income | 127,507 | 122,984 | 124,210 | |||||||||
| Provision for loan losses | 11,002 | 10,250 | 10,020 | |||||||||
| Net interest income after provision for loan losses | 116,505 | 112,734 | 114,190 | |||||||||
NON-INTEREST INCOME | ||||||||||||
| Trust fees | 15,877 | 16,164 | 14,524 | |||||||||
| Deposit account charges and other fees | 29,126 | 26,814 | 22,576 | |||||||||
| Bank card transaction fees | 16,192 | 16,308 | 14,466 | |||||||||
| Trading account profits and commissions | 3,127 | 3,826 | 4,394 | |||||||||
| Consumer brokerage services | 2,284 | 2,354 | 2,193 | |||||||||
| Mortgage banking revenue | 449 | 488 | 1,031 | |||||||||
| Net gains (losses) on securities transactions | (777 | ) | 8,951 | 2,272 | ||||||||
| Other | 10,142 | 11,064 | 13,150 | |||||||||
| Total non-interest income | 76,420 | 85,969 | 74,606 | |||||||||
NON-INTEREST EXPENSE | ||||||||||||
| Salaries and employee benefits | 64,964 | 68,016 | 68,593 | |||||||||
| Net occupancy | 9,508 | 10,166 | 10,338 | |||||||||
| Equipment | 6,168 | 5,858 | 5,878 | |||||||||
| Supplies and communication | 7,995 | 7,944 | 8,538 | |||||||||
| Data processing and software | 10,499 | 10,630 | 9,876 | |||||||||
| Marketing | 3,398 | 3,704 | 3,106 | |||||||||
| Other intangible assets amortization | 442 | 436 | 450 | |||||||||
| Other | 13,791 | 12,158 | 13,955 | |||||||||
| Total non-interest expense | 116,765 | 118,912 | 120,734 | |||||||||
| Income before income taxes | 76,160 | 79,791 | 68,062 | |||||||||
| Less income taxes | 22,299 | 28,467 | 20,834 | |||||||||
NET INCOME | $ | 53,861 | $ | 51,324 | $ | 47,228 | ||||||
| Net income per share — basic | $ | 0.79 | $ | 0.76 | $ | 0.67 | ||||||
| Net income per share — diluted | $ | 0.78 | $ | 0.75 | $ | 0.66 | ||||||
| Cash dividends per common share | $ | 0.214 | $ | 0.230 | $ | 0.157 | ||||||
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| (Unaudited) | December 31 | March 31 | March 31 | |||||||||
| (In thousands) | 2003 | 2004 | 2003 | |||||||||
ASSETS | ||||||||||||
| Loans, net of unearned income | $ | 8,142,679 | $ | 8,149,141 | $ | 7,988,171 | ||||||
| Allowance for loan losses | (135,221 | ) | (133,092 | ) | (132,162 | ) | ||||||
Net loans | 8,007,458 | 8,016,049 | 7,856,009 | |||||||||
| Investment securities: | ||||||||||||
| Available for sale | 4,956,668 | 5,307,223 | 4,120,986 | |||||||||
| Trading | 9,356 | 29,027 | 44,639 | |||||||||
| Non-marketable | 73,170 | 76,657 | 70,605 | |||||||||
Total investment securities | 5,039,194 | 5,412,907 | 4,236,230 | |||||||||
| Federal funds sold and securities purchased under agreements to resell | 108,120 | 71,645 | 47,505 | |||||||||
| Cash and due from banks | 567,123 | 409,924 | 759,615 | |||||||||
| Land, buildings and equipment — net | 336,366 | 335,084 | 334,685 | |||||||||
| Goodwill | 48,522 | 48,522 | 48,522 | |||||||||
| Other intangible assets — net | 2,184 | 1,747 | 3,517 | |||||||||
| Other assets | 178,197 | 189,339 | 156,319 | |||||||||
Total assets | $ | 14,287,164 | $ | 14,485,217 | $ | 13,442,402 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing demand | $ | 1,716,214 | $ | 1,697,680 | $ | 1,601,303 | ||||||
| Savings, interest checking and money market | 6,080,543 | 6,039,062 | 5,977,141 | |||||||||
| Time open and C.D.’s of less than $100,000 | 1,730,237 | 1,701,258 | 1,899,008 | |||||||||
| Time open and C.D.’s of $100,000 and over | 679,214 | 814,635 | 801,199 | |||||||||
Total deposits | 10,206,208 | 10,252,635 | 10,278,651 | |||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 2,106,044 | 2,068,165 | 1,218,646 | |||||||||
| Other borrowings | 403,853 | 499,465 | 362,194 | |||||||||
| Other liabilities | 120,105 | 181,156 | 154,599 | |||||||||
Total liabilities | 12,836,210 | 13,001,421 | 12,014,090 | |||||||||
| Stockholders’ equity: | ||||||||||||
| Preferred stock | — | — | — | |||||||||
| Common stock | 343,183 | 343,183 | 336,940 | |||||||||
| Capital surplus | 359,300 | 356,732 | 295,245 | |||||||||
| Retained earnings | 707,136 | 742,959 | 743,669 | |||||||||
| Treasury stock | (29,573 | ) | (59,198 | ) | (35,528 | ) | ||||||
| Other | (1,963 | ) | (3,118 | ) | (2,363 | ) | ||||||
| Accumulated other comprehensive income | 72,871 | 103,238 | 90,349 | |||||||||
Total stockholders’ equity | 1,450,954 | 1,483,796 | 1,428,312 | |||||||||
Total liabilities and stockholders’ equity | $ | 14,287,164 | $ | 14,485,217 | $ | 13,442,402 | ||||||
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCES
| (Unaudited) | For the Three Months Ended | |||||||||||
| (Dollars in thousands) | December 31 | March 31 | March 31 | |||||||||
| | 2003 | 2004 | 2003 | |||||||||
Loans: | ||||||||||||
| Business | $ | 1,996,813 | $ | 2,045,287 | $ | 2,261,093 | ||||||
| Real estate — construction | 410,272 | 426,182 | 403,090 | |||||||||
| Real estate — business | 1,870,190 | 1,881,209 | 1,771,035 | |||||||||
| Real estate — personal | 1,335,977 | 1,331,014 | 1,275,086 | |||||||||
| Personal banking | 1,853,015 | 1,891,071 | 1,722,157 | |||||||||
| Credit card | 538,310 | 551,957 | 518,026 | |||||||||
| Overdrafts | 10,755 | 17,477 | 12,716 | |||||||||
Total loans | 8,015,332 | 8,144,197 | 7,963,203 | |||||||||
Investment securities (excluding unrealized gains and losses): | ||||||||||||
| Available for sale | 4,693,803 | 4,857,126 | 3,987,121 | |||||||||
| Trading | 9,368 | 8,433 | 28,714 | |||||||||
| Non-marketable | 77,549 | 74,651 | 70,201 | |||||||||
Total investment securities | 4,780,720 | 4,940,210 | 4,086,036 | |||||||||
| Federal funds sold and securities purchased under agreements to resell | 85,505 | 60,398 | 42,214 | |||||||||
Total interest earning assets | 12,881,557 | 13,144,805 | 12,091,453 | |||||||||
Total assets | 13,885,498 | 14,193,600 | 13,135,641 | |||||||||
Deposits: | ||||||||||||
| Non-interest bearing deposits | 1,183,899 | 1,233,919 | 994,824 | |||||||||
| Interest bearing deposits: | ||||||||||||
| Savings | 388,448 | 392,690 | 362,014 | |||||||||
| Interest checking | 435,975 | 482,905 | 374,372 | |||||||||
| Money market | 5,699,117 | 5,627,660 | 5,504,250 | |||||||||
| Time open & C.D.’s of less than $100,000 | 1,755,471 | 1,715,038 | 1,920,874 | |||||||||
| Time open & C.D.’s of $100,000 and over | 634,196 | 745,101 | 733,958 | |||||||||
| Total interest bearing deposits | 8,913,207 | 8,963,394 | 8,895,468 | |||||||||
Total deposits | 10,097,106 | 10,197,313 | 9,890,292 | |||||||||
Borrowings: | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 1,812,998 | 1,947,207 | 1,301,735 | |||||||||
| Other borrowings | 411,382 | 441,019 | 365,318 | |||||||||
Total borrowings | 2,224,380 | 2,388,226 | 1,667,053 | |||||||||
| Total interest bearing liabilities | 11,137,587 | 11,351,620 | 10,562,521 | |||||||||
| Total stockholders’ equity | 1,446,380 | 1,464,915 | 1,439,737 | |||||||||
Net yield on interest earning assets (tax-equivalent basis) | 3.95 | % | 3.78 | % | 4.19 | % | ||||||
COMMERCE BANCSHARES, INC.
Management Discussion of First Quarter Results
March 31, 2004
For the quarter ended March 31, 2004, net income amounted to $51.3 million, an increase of 8.7% over the 1st quarter of the previous year. The return on assets was 1.5% and the return on equity totaled 14.1%. For the quarter, the efficiency ratio amounted to 59.2%. The increase in net income over the 1st quarter of last year was the result of an increase of 15.2% in non-interest income and lower expenses, partially offset by a decrease in net interest income.
Balance Sheet Review
During the 1st quarter of 2004, average loans increased $128.9 million or 1.6% compared with the previous quarter, and were up $181.0 million or 2.3% compared to the same period last year. Compared to the 4th quarter of 2003, average business, construction, business real estate, personal banking and credit card loans grew by $48.5 million, $15.9 million, $11.0 million, $38.1 million and $13.6 million, respectively. As a result of lower levels of mortgage loan originations during the quarter, personal real estate loans declined by $5.0 million. Moderate growth in the economy this quarter helped increase loan demand for business and construction loans which grew a combined total of over $64 million. Business real estate loans continued to show modest growth, aided by the low interest rate environment. The increase in personal banking loans was the result of continued growth in home equity loans and growth in seasonal student loan activity.
Available for sale investment securities, excluding fair value adjustments, increased on average $163.3 million, or 3.5%, this quarter compared with the previous quarter; however, since December 31, 2003, the portfolio has increased $350.6 million. During the quarter, principal prepayments received on mortgage and asset-backed securities continued to slow to $195.2 million, down from $256.3 million in the previous quarter, reflecting lower mortgage refinancing activities affecting the industry. This reduction, combined with scheduled maturities of $163.8 million and investment securities sales of $141.5 million, lowered the portfolio by $500.5 million. New purchases of investment securities during the quarter totaled $838.2 million, and consisted mainly of U.S. government and agency ($346.9 million), mortgage-backed ($164.1 million) and asset-backed securities ($320.7 million). The sale of investment securities this quarter was mainly the result of the Company’s review of its portfolio and adjustment for such things as concentration, duration, interest rate risk, potential gains and other factors.
Total average deposits grew by $100.2 million, or 1.0% (4% annualized growth), during the 1st quarter compared to the 4th quarter of last year, and were up 3.1% compared to the same period last year. The increase over the 4th quarter of last year was the result of growth in certificates of deposit of $100,000 and over ($110.9 million), non-interest bearing demand deposits ($50.0 million), and interest checking ($46.9 million). This growth was offset by declines in money market deposits ($71.5 million) and certificates of deposit of less than $100,000 ($40.4 million).
During the 1st quarter of 2004, average borrowings increased $163.8 million over the previous quarter, primarily due to growth in federal funds purchased of $271.6 million, offset by a decrease in repurchase agreements of $137.4 million.
Net Interest Income
In the 1st quarter of 2004, net interest income amounted to $123.0 million, a decrease of approximately $4.5 million, or 3.5%, compared to the 4th quarter of last year, and lower by $1.2 million than the amount recorded in the 1st quarter of 2003. The net yield on earning assets decreased 17 basis points in the current quarter to 3.78%.
The decrease in net interest income in the 1st quarter of 2004 compared to the previous quarter was the result of fewer days in the quarter coupled with lower interest earned on investment securities, and lower rates earned on business and personal banking loans. Interest earned on the Company’s inflation-indexed treasury securities decreased $3.3 million in the current quarter compared with the 4th quarter 2003, as a result of a higher inflation index in the 4th quarter and sales of $115.3 million of these securities in the 1st quarter of 2004. Also, average rates declined on mortgage and asset-backed securities. Average rates earned on business and personal banking loans declined 13 and 18 basis points, respectively. In addition, the average balance of federal funds purchased increased during the quarter and added $655 thousand to interest expense.
The growth in average loans and investment securities over the previous quarter added $1.6 million and $1.9 million, respectively, to interest income in the 1st quarter of 2004. In addition, reductions of principal prepayments and maturities of mortgage and asset-backed securities helped to reduce premium amortization and increase net interest income during the quarter. Overall, interest expense on deposits decreased because of lower average rates, but was offset by slightly higher average balances. During the quarter, the overall yield on interest earning assets decreased 18 basis points to 4.57%, while the cost of interest bearing liabilities decreased 2 basis points to .91%.
Non-Interest Income
For the 1st quarter of 2004, total non-interest income amounted to $86.0 million compared with $74.6 million in the same quarter last year, an increase of
COMMERCE BANCSHARES, INC.
Management Discussion of First Quarter Results
March 31, 2004
15.2%. This increase resulted from higher net securities gains and growth in deposit account, bank card and trust fees, but was offset by lower bond trading income. Deposit account fees in the 1st quarter grew by 18.8% over the same quarter last year as a result of an increase in overdraft fees and commercial cash management revenues. Bank card fees for the quarter increased by 12.7% over the same period last year, primarily as a result of strong growth in merchant interchange revenue (up 34.7%) and credit cardholder fees (up 14.2%), offset by slightly lower debit card transaction fees. Trust fees for the quarter also increased 11.3% compared to the same period last year. Other non-interest income for the quarter included a pre-tax gain of $2.3 million on the sale of $63.0 million of student loans, which was lower than the gain of $4.1 million recorded in the same quarter last year.
During the current quarter, net securities gains amounted to $9.0 million compared with net securities gains of $2.3 million in the same period last year, and occurred mainly as a result of sales of inflation-indexed treasury ($115.3 million) and mortgage-backed securities ($26.2 million).
Non-Interest Expense
Non-interest expense for the quarter amounted to $118.9 million, a decrease of 1.5% compared with $120.7 million recorded in the 1st quarter of last year. Non-interest expense was 1.8% higher compared to the 4th quarter of 2003.
Compared with the 1st quarter of last year, salaries decreased as a result of lower incentive payments and a reduction in temporary and contract labor. Benefits also were slightly lower mainly due to lower costs for the Company’s pension plan. Full-time equivalent employees totaled 4,847 and 5,013 at March 31, 2004 and 2003, respectively. Costs also declined for occupancy, equipment, and communications, while marketing and software costs both increased modestly. Other non-interest expense decreased 12.9% from the same quarter last year primarily due to decreases in operating losses and charitable contributions.
Income Taxes
The effective tax rate for the Company was 35.7% for the 1st quarter of 2004, compared with 29.3% in the 4th quarter of 2003 and 30.6% in the 1st quarter of 2003. As reported in the Company’s previously filed Annual Report on Form 10-K, the lower effective tax rates in the previous quarters resulted from the recognition of tax benefits recorded from various corporate reorganization initiatives. Additional tax benefits related to these initiatives will not be recognized into income until certain conditions are satisfied. It is projected that such conditions may be resolved as early as the 3rd quarter of 2004 relating to approximately $18.9 million of the remaining benefits.
Credit Quality
Net loan charge-offs for the 1st quarter of 2004 amounted to $12.4 million, compared with $8.5 million in the 4th quarter of 2003 and $9.0 million in the 1st quarter of 2003. The ratio of annualized net charge-offs to total average loans this quarter was .61%, compared with .46% in the same quarter last year and .42% in the 4th quarter of 2003. The increase in net charge-offs for the current quarter was mainly due to a $6.0 million charge-down of a large commercial loan due to the borrower filing bankruptcy during the quarter.
For the 1st quarter of 2004, net charge-offs on average credit card loans decreased to 3.60%, compared with 3.69% in the 1st quarter of last year. Also, personal loan charge-offs decreased this quarter and amounted to .42% of average personal loans compared to .56% in the same period last year. The provision for loan losses for the quarter totaled $10.3 million, up slightly from $10.0 million in the 1st quarter of last year, and down $752 thousand from the provision recorded in the 4th quarter of last year. The allowance for loan losses at March 31, 2004 amounted to $133.1 million, or 1.63% of total loans, and represented 400% of total non-performing loans.
Total non-performing assets amounted to $35.9 million, an increase of $2.2 million over the previous quarter, and amounted to .44% of loans. Non-performing assets are comprised of non-accrual loans ($33.3 million) and foreclosed real estate ($2.6 million). Loans past due more than 90 days and still accruing interest totaled $14.8 million at March 31, 2004.
Other
The Company maintains a treasury stock buyback program; and effective January 2004, was authorized by the Board of Directors to repurchase up to 3 million shares of its common stock. During the quarter ended March 31, 2004, the Company purchased 840,000 shares of treasury stock at an average cost of $49.27 per share.
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, including estimates made on income taxes, expectations on the economy and other 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.
