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Share Name | Share Symbol | Market | Type |
---|---|---|---|
USOTC:CBCB | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.00 | - |
(Mark One) | |||||
☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | ||||
SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | ||||
SECURITIES EXCHANGE ACT OF 1934 |
COMMERCE BANCSHARES, INC. | ||||||||
(Exact name of registrant as specified in its charter) |
Missouri | 43-0889454 | ||||||||||
(State of Incorporation) | (IRS Employer Identification No.) | ||||||||||
1000 Walnut | |||||||||||
Kansas City, | MO | 64106 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of class | Trading symbol(s) | Name of exchange on which registered | ||||||
$5 Par Value Common Stock | CBSH | NASDAQ Global Select Market | ||||||
Page | |||||||||||
INDEX | |||||||||||
Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022 | |||||||||||
Consolidated Statements of Income for the Three Months Ended March 31, 2023 and 2022 (unaudited) | |||||||||||
Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2023 and 2022 (unaudited) | |||||||||||
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2023 and 2022 (unaudited) | |||||||||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 (unaudited) | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
(In thousands) | |||||||||||
ASSETS | |||||||||||
Loans | $ | 16,535,522 | $ | 16,303,131 | |||||||
Allowance for credit losses on loans | (159,317) | (150,136) | |||||||||
Net loans | 16,376,205 | 16,152,995 | |||||||||
Loans held for sale (including $684,000 and $— of residential mortgage loans carried at fair value at March 31, 2023 and December 31, 2022, respectively) | 6,162 | 4,964 | |||||||||
Investment securities: | |||||||||||
Available for sale debt, at fair value (amortized cost of $12,538,550,000 and $13,738,206,000 at | |||||||||||
March 31, 2023 and December 31, 2022, respectively, and allowance for credit losses of $— | |||||||||||
at both March 31, 2023 and December 31, 2022) | 11,228,616 | 12,238,316 | |||||||||
Trading debt | 41,584 | 43,523 | |||||||||
Equity | 12,528 | 12,304 | |||||||||
Other | 268,417 | 225,034 | |||||||||
Total investment securities | 11,551,145 | 12,519,177 | |||||||||
Federal funds sold | 27,060 | 49,505 | |||||||||
Securities purchased under agreements to resell | 825,000 | 825,000 | |||||||||
Interest earning deposits with banks | 1,341,854 | 389,140 | |||||||||
Cash and due from banks | 351,210 | 452,496 | |||||||||
Premises and equipment – net | 428,169 | 418,909 | |||||||||
Goodwill | 138,921 | 138,921 | |||||||||
Other intangible assets – net | 14,918 | 15,234 | |||||||||
Other assets | 944,212 | 909,590 | |||||||||
Total assets | $ | 32,004,856 | $ | 31,875,931 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Deposits: | |||||||||||
Non-interest bearing | $ | 8,685,234 | $ | 10,066,356 | |||||||
Savings, interest checking and money market | 14,419,741 | 15,126,981 | |||||||||
Certificates of deposit of less than $100,000 | 468,667 | 387,336 | |||||||||
Certificates of deposit of $100,000 and over | 1,109,818 | 606,767 | |||||||||
Total deposits | 24,683,460 | 26,187,440 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,784,559 | 2,841,734 | |||||||||
Other borrowings | 1,507,776 | 9,672 | |||||||||
Other liabilities | 346,649 | 355,508 | |||||||||
Total liabilities | 29,322,444 | 29,394,354 | |||||||||
Commerce Bancshares, Inc. stockholders’ equity: | |||||||||||
Common stock, $5 par value | |||||||||||
Authorized 140,000,000; issued 125,863,879 shares at March 31, 2023 and December 31, 2022 | 629,319 | 629,319 | |||||||||
Capital surplus | 2,919,060 | 2,932,959 | |||||||||
Retained earnings | 117,313 | 31,620 | |||||||||
Treasury stock of 883,736 shares at March 31, 2023 | |||||||||||
and 605,142 shares at December 31, 2022, at cost | (59,670) | (41,743) | |||||||||
Accumulated other comprehensive income (loss) | (940,498) | (1,086,864) | |||||||||
Total Commerce Bancshares, Inc. stockholders' equity | 2,665,524 | 2,465,291 | |||||||||
Non-controlling interest | 16,888 | 16,286 | |||||||||
Total equity | 2,682,412 | 2,481,577 | |||||||||
Total liabilities and equity | $ | 32,004,856 | $ | 31,875,931 |
For the Three Months Ended March 31 | |||||||||||
(In thousands, except per share data) | 2023 | 2022 | |||||||||
(Unaudited) | |||||||||||
INTEREST INCOME | |||||||||||
Interest and fees on loans | $ | 223,816 | $ | 132,075 | |||||||
Interest and fees on loans held for sale | 145 | 150 | |||||||||
Interest on investment securities | 71,119 | 73,105 | |||||||||
Interest on federal funds sold | 489 | 1 | |||||||||
Interest on securities purchased under agreements to resell | 3,952 | 5,300 | |||||||||
Interest on deposits with banks | 9,336 | 1,151 | |||||||||
Total interest income | 308,857 | 211,782 | |||||||||
INTEREST EXPENSE | |||||||||||
Interest on deposits: | |||||||||||
Savings, interest checking and money market | 20,151 | 1,760 | |||||||||
Certificates of deposit of less than $100,000 | 1,425 | 139 | |||||||||
Certificates of deposit of $100,000 and over | 6,627 | 427 | |||||||||
Interest on federal funds purchased | 5,586 | 7 | |||||||||
Interest on securities sold under agreements to repurchase | 17,495 | 682 | |||||||||
Interest on other borrowings | 5,950 | (19) | |||||||||
Total interest expense | 57,234 | 2,996 | |||||||||
Net interest income | 251,623 | 208,786 | |||||||||
Provision for credit losses | 11,456 | (9,858) | |||||||||
Net interest income after credit losses | 240,167 | 218,644 | |||||||||
NON-INTEREST INCOME | |||||||||||
Trust fees | 45,328 | 47,811 | |||||||||
Bank card transaction fees | 46,654 | 42,045 | |||||||||
Deposit account charges and other fees | 21,752 | 22,307 | |||||||||
Consumer brokerage services | 5,085 | 4,446 | |||||||||
Capital market fees | 3,362 | 4,125 | |||||||||
Loan fees and sales | 2,589 | 4,235 | |||||||||
Other | 12,842 | 6,800 | |||||||||
Total non-interest income | 137,612 | 131,769 | |||||||||
INVESTMENT SECURITIES GAINS (LOSSES), NET | (306) | 7,163 | |||||||||
NON-INTEREST EXPENSE | |||||||||||
Salaries and employee benefits | 144,373 | 135,953 | |||||||||
Data processing and software | 28,154 | 27,016 | |||||||||
Net occupancy | 12,759 | 12,296 | |||||||||
Equipment | 4,850 | 4,568 | |||||||||
Supplies and communication | 4,590 | 4,713 | |||||||||
Marketing | 5,471 | 6,344 | |||||||||
Other | 23,910 | 14,758 | |||||||||
Total non-interest expense | 224,107 | 205,648 | |||||||||
Income before income taxes | 153,366 | 151,928 | |||||||||
Less income taxes | 32,813 | 31,902 | |||||||||
Net income | 120,553 | 120,026 | |||||||||
Less non-controlling interest expense (income) | 1,101 | 1,872 | |||||||||
Net income attributable to Commerce Bancshares, Inc. | $ | 119,452 | $ | 118,154 | |||||||
Net income per common share — basic | $ | .95 | $ | .92 | |||||||
Net income per common share — diluted | $ | .95 | $ | .92 |
For the Three Months Ended March 31 | ||||||||
(In thousands) | 2023 | 2022 | ||||||
(Unaudited) | ||||||||
Net income | $ | 120,553 | $ | 120,026 | ||||
Other comprehensive income (loss): | ||||||||
Net unrealized gains (losses) on available for sale debt securities | 142,466 | (507,265) | ||||||
Change in pension loss | 270 | 323 | ||||||
Unrealized gains (losses) on cash flow hedge derivatives | 3,630 | (4,538) | ||||||
Other comprehensive income (loss) | 146,366 | (511,480) | ||||||
Comprehensive income (loss) | 266,919 | (391,454) | ||||||
Less non-controlling interest (income) expense | 1,101 | 1,872 | ||||||
Comprehensive income (loss) attributable to Commerce Bancshares, Inc. | $ | 265,818 | $ | (393,326) |
Commerce Bancshares, Inc. Shareholders | ||||||||||||||||||||||||||
(In thousands, except per share data) | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest | Total | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Balance December 31, 2022 | $ | 629,319 | $ | 2,932,959 | $ | 31,620 | $ | (41,743) | $ | (1,086,864) | $ | 16,286 | $ | 2,481,577 | ||||||||||||
Net income | 119,452 | 1,101 | 120,553 | |||||||||||||||||||||||
Other comprehensive income (loss) | 146,366 | 146,366 | ||||||||||||||||||||||||
Distributions to non-controlling interest | (453) | (453) | ||||||||||||||||||||||||
Purchases of treasury stock | (36,245) | (36,245) | ||||||||||||||||||||||||
Sale of non-controlling interest of subsidiary | 46 | (46) | — | |||||||||||||||||||||||
Issuance under stock purchase and equity compensation plans | (18,318) | 18,318 | — | |||||||||||||||||||||||
Stock-based compensation | 4,373 | 4,373 | ||||||||||||||||||||||||
Cash dividends paid on common stock ($.270 per share) | (33,759) | (33,759) | ||||||||||||||||||||||||
Balance March 31, 2023 | $ | 629,319 | $ | 2,919,060 | $ | 117,313 | $ | (59,670) | $ | (940,498) | $ | 16,888 | $ | 2,682,412 | ||||||||||||
Balance December 31, 2021 | $ | 610,804 | $ | 2,689,894 | $ | 92,493 | $ | (32,973) | $ | 77,080 | $ | 11,026 | $ | 3,448,324 | ||||||||||||
Net income | 118,154 | 1,872 | 120,026 | |||||||||||||||||||||||
Other comprehensive income (loss) | (511,480) | (511,480) | ||||||||||||||||||||||||
Distributions to non-controlling interest | (136) | (136) | ||||||||||||||||||||||||
Purchases of treasury stock | (55,855) | (55,855) | ||||||||||||||||||||||||
Issuance under stock purchase and equity compensation plans | (16,087) | 16,535 | 448 | |||||||||||||||||||||||
Stock-based compensation | 4,218 | 4,218 | ||||||||||||||||||||||||
Cash dividends paid on common stock ($.252 per share) | (32,143) | (32,143) | ||||||||||||||||||||||||
Balance March 31, 2022 | $ | 610,804 | $ | 2,678,025 | $ | 178,504 | $ | (72,293) | $ | (434,400) | $ | 12,762 | $ | 2,973,402 |
For the Three Months Ended March 31 | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
(Unaudited) | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 120,553 | $ | 120,026 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses | 11,456 | (9,858) | |||||||||
Provision for depreciation and amortization | 11,565 | 11,811 | |||||||||
Amortization of investment security premiums, net | 7,654 | 4,932 | |||||||||
Investment securities (gains) losses, net (A) | 306 | (7,163) | |||||||||
Net (gains) losses on sales of loans held for sale | (137) | (1,302) | |||||||||
Originations of loans held for sale | (9,931) | (57,580) | |||||||||
Proceeds from sales of loans held for sale | 8,850 | 57,789 | |||||||||
Net (increase) decrease in trading debt securities, excluding unsettled transactions | 11,548 | 9,798 | |||||||||
Purchase of interest rate floor | (25,900) | — | |||||||||
Stock-based compensation | 4,373 | 4,218 | |||||||||
(Increase) decrease in interest receivable | (1,005) | (7,972) | |||||||||
Increase (decrease) in interest payable | 10,025 | 273 | |||||||||
Increase (decrease) in income taxes payable | 26,970 | 28,657 | |||||||||
Other changes, net | (60,270) | (29,115) | |||||||||
Net cash provided by operating activities | 116,057 | 124,514 | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Distributions received from equity-method investment | 1,434 | 400 | |||||||||
Proceeds from sales of investment securities (A) | 840,435 | 1,745 | |||||||||
Proceeds from maturities/pay downs of investment securities (A) | 474,220 | 805,355 | |||||||||
Purchases of investment securities (A) | (168,584) | (1,812,434) | |||||||||
Net (increase) decrease in loans | (239,230) | (287,328) | |||||||||
Securities purchased under agreements to resell | — | (200,000) | |||||||||
Purchases of premises and equipment | (20,044) | (15,597) | |||||||||
Sales of premises and equipment | 6 | 175 | |||||||||
Net cash provided by (used in) investing activities | 888,237 | (1,507,684) | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Net increase (decrease) in non-interest bearing, savings, interest checking and money market deposits | (2,137,278) | (208,358) | |||||||||
Net increase (decrease) in certificates of deposit | 584,382 | (303,277) | |||||||||
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | (57,175) | (705,506) | |||||||||
Net increase (decrease) in other borrowings | 1,498,104 | (3,503) | |||||||||
Purchases of treasury stock | (36,245) | (55,855) | |||||||||
Issuance of stock under equity compensation plans | — | 448 | |||||||||
Cash dividends paid on common stock | (33,759) | (32,143) | |||||||||
Net cash used in financing activities | (181,971) | (1,308,194) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 822,323 | (2,691,364) | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | 897,801 | 4,296,954 | |||||||||
Cash, cash equivalents and restricted cash at March 31 | $ | 1,720,124 | $ | 1,605,590 | |||||||
Income tax payments, net | $ | 3,857 | $ | 1,640 | |||||||
Interest paid on deposits and borrowings | $ | 47,209 | $ | 2,723 | |||||||
Loans transferred to foreclosed real estate | $ | 72 | $ | 25 | |||||||
(In thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Commercial: | |||||||||||
Business | $ | 5,704,467 | $ | 5,661,725 | |||||||
Real estate – construction and land | 1,437,419 | 1,361,095 | |||||||||
Real estate – business | 3,486,543 | 3,406,981 | |||||||||
Personal Banking: | |||||||||||
Real estate – personal | 2,952,042 | 2,918,078 | |||||||||
Consumer | 2,094,389 | 2,059,088 | |||||||||
Revolving home equity | 295,478 | 297,207 | |||||||||
Consumer credit card | 558,669 | 584,000 | |||||||||
Overdrafts | 6,515 | 14,957 | |||||||||
Total loans | $ | 16,535,522 | $ | 16,303,131 |
Key Assumption | March 31, 2023 | December 31, 2022 | ||||||
Overall economic forecast | •Mild recession to start 3rd quarter of 2023 •Assume the Federal Reserve will continue raising interest rates •Mild recession is expected to weaken employment | •Continued high inflation and higher cost of borrowing create a mild recession in 2023 with stalled job growth and possible job losses •Assumes interest rates hikes will taper | ||||||
Reasonable and supportable period and related reversion period | •Reasonable and supportable period of one year •Reversion to historical average loss within 2 quarters using straight-line method | •Reasonable and supportable period of one year •Reversion to historical average loss within 2 quarters using straight-line method | ||||||
Forecasted macro-economic variables | •Unemployment rate ranges from 3.7% to 5.3% during the supportable forecast period •Real GDP growth ranges from (.5)% to 2.0% •BBB corporate yield from 5.3% to 5.8% •House Price Index from 280.2 to 282.0 | •Unemployment rate ranges from 3.8% to 4.7% during the supportable forecast period •Real GDP growth ranging from (.9)% to 1.3% •BBB corporate yield from 5.1% to 5.8% •House Price Index from 280.9 to 284.6 | ||||||
Prepayment assumptions | Commercial loans •5% for most loan pools Personal banking loans •Ranging from 6.45% to 22.4% for most loan pools •Consumer credit cards 67.5% | Commercial loans •5% for most loan pools Personal banking loans •Ranging from 8.3% to 24.8% for most loan pools •Consumer credit cards 67.9% | ||||||
Qualitative factors | Added qualitative factors related to: •Changes in the composition of the loan portfolios •Certain portfolios sensitive to pandemic economic uncertainties •Certain portfolios sensitive to unusually high rate of inflation and supply chain issues •Loans downgraded to special mention, substandard, or non-accrual status | Added qualitative factors related to: •Changes in the composition of the loan portfolios •Certain portfolios sensitive to pandemic economic uncertainties •Certain portfolios sensitive to unusually high rate of inflation and supply chain issues •Loans downgraded to special mention, substandard, or non-accrual status |
For the Three Months Ended March 31, 2023 | |||||||||||
(In thousands) | Commercial | Personal Banking | Total | ||||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS | |||||||||||
Balance at beginning of period | $ | 103,293 | $ | 46,843 | $ | 150,136 | |||||
Provision for credit losses on loans | 5,548 | 10,400 | 15,948 | ||||||||
Deductions: | |||||||||||
Loans charged off | 292 | 8,756 | 9,048 | ||||||||
Less recoveries on loans | 66 | 2,215 | 2,281 | ||||||||
Net loan charge-offs (recoveries) | 226 | 6,541 | 6,767 | ||||||||
Balance March 31, 2023 | $ | 108,615 | $ | 50,702 | $ | 159,317 | |||||
LIABILITY FOR UNFUNDED LENDING COMMITMENTS | |||||||||||
Balance at beginning of period | $ | 31,743 | $ | 1,377 | $ | 33,120 | |||||
Provision for credit losses on unfunded lending commitments | (4,638) | 146 | (4,492) | ||||||||
Balance March 31, 2023 | $ | 27,105 | $ | 1,523 | $ | 28,628 | |||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS | $ | 135,720 | $ | 52,225 | $ | 187,945 |
For the Three Months Ended March 31, 2022 | |||||||||||
(In thousands) | Commercial | Personal Banking | Total | ||||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS | |||||||||||
Balance at beginning of period | $ | 97,776 | $ | 52,268 | $ | 150,044 | |||||
Provision for credit losses on loans | (2,879) | (7,807) | (10,686) | ||||||||
Deductions: | |||||||||||
Loans charged off | 177 | 7,285 | 7,462 | ||||||||
Less recoveries on loans | 107 | 2,707 | 2,814 | ||||||||
Net loan charge-offs (recoveries) | 70 | 4,578 | 4,648 | ||||||||
Balance March 31, 2022 | $ | 94,827 | $ | 39,883 | $ | 134,710 | |||||
LIABILITY FOR UNFUNDED LENDING COMMITMENTS | |||||||||||
Balance at beginning of period | $ | 23,271 | $ | 933 | $ | 24,204 | |||||
Provision for credit losses on unfunded lending commitments | 509 | 319 | 828 | ||||||||
Balance March 31, 2022 | $ | 23,780 | $ | 1,252 | $ | 25,032 | |||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS | $ | 118,607 | $ | 41,135 | $ | 159,742 |
(In thousands) | Current or Less Than 30 Days Past Due | 30 – 89 Days Past Due | 90 Days Past Due and Still Accruing | Non-accrual | Total | ||||||||||||
March 31, 2023 | |||||||||||||||||
Commercial: | |||||||||||||||||
Business | $ | 5,692,966 | $ | 4,644 | $ | 496 | $ | 6,361 | $ | 5,704,467 | |||||||
Real estate – construction and land | 1,432,344 | 4,646 | 429 | — | 1,437,419 | ||||||||||||
Real estate – business | 3,483,425 | 2,947 | — | 171 | 3,486,543 | ||||||||||||
Personal Banking: | |||||||||||||||||
Real estate – personal | 2,937,474 | 8,375 | 4,924 | 1,269 | 2,952,042 | ||||||||||||
Consumer | 2,067,340 | 25,134 | 1,915 | — | 2,094,389 | ||||||||||||
Revolving home equity | 293,783 | 846 | 849 | — | 295,478 | ||||||||||||
Consumer credit card | 547,228 | 5,254 | 6,187 | — | 558,669 | ||||||||||||
Overdrafts | 6,189 | 326 | — | — | 6,515 | ||||||||||||
Total | $ | 16,460,749 | $ | 52,172 | $ | 14,800 | $ | 7,801 | $ | 16,535,522 | |||||||
December 31, 2022 | |||||||||||||||||
Commercial: | |||||||||||||||||
Business | $ | 5,652,710 | $ | 1,759 | $ | 505 | $ | 6,751 | $ | 5,661,725 | |||||||
Real estate – construction and land | 1,361,095 | — | — | — | 1,361,095 | ||||||||||||
Real estate – business | 3,406,207 | 585 | — | 189 | 3,406,981 | ||||||||||||
Personal Banking: | |||||||||||||||||
Real estate – personal | 2,895,742 | 14,289 | 6,681 | 1,366 | 2,918,078 | ||||||||||||
Consumer | 2,031,827 | 25,089 | 2,172 | — | 2,059,088 | ||||||||||||
Revolving home equity | 295,303 | 1,201 | 703 | — | 297,207 | ||||||||||||
Consumer credit card | 572,213 | 6,238 | 5,549 | — | 584,000 | ||||||||||||
Overdrafts | 14,090 | 647 | 220 | — | 14,957 | ||||||||||||
Total | $ | 16,229,187 | $ | 49,808 | $ | 15,830 | $ | 8,306 | $ | 16,303,131 |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Business | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 526,988 | $ | 1,268,330 | $ | 716,669 | $ | 374,953 | $ | 334,438 | $ | 369,983 | $ | 2,008,711 | $ | 5,600,072 | ||||||||||
Special mention | 14,056 | 1,606 | 4,460 | 7,330 | 513 | 1,643 | 676 | 30,284 | ||||||||||||||||||
Substandard | 1,127 | 6,188 | 10,059 | 17,261 | 503 | 10,732 | 21,880 | 67,750 | ||||||||||||||||||
Non-accrual | — | 158 | 1,818 | 33 | 1 | 4,280 | 71 | 6,361 | ||||||||||||||||||
Total Business: | $ | 542,171 | $ | 1,276,282 | $ | 733,006 | $ | 399,577 | $ | 335,455 | $ | 386,638 | $ | 2,031,338 | $ | 5,704,467 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 292 | $ | 292 | ||||||||||
Real estate-construction | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 156,801 | $ | 552,570 | $ | 549,106 | $ | 83,653 | $ | 27,431 | $ | 3,235 | $ | 27,547 | $ | 1,400,343 | ||||||||||
Special mention | 7,115 | 207 | — | — | — | — | — | 7,322 | ||||||||||||||||||
Substandard | — | 2,016 | — | — | — | 27,738 | — | 29,754 | ||||||||||||||||||
Total Real estate-construction: | $ | 163,916 | $ | 554,793 | $ | 549,106 | $ | 83,653 | $ | 27,431 | $ | 30,973 | $ | 27,547 | $ | 1,437,419 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Real estate-business | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 229,043 | $ | 1,136,589 | $ | 573,233 | $ | 495,078 | $ | 388,892 | $ | 401,324 | $ | 109,489 | $ | 3,333,648 | ||||||||||
Special mention | — | 4,555 | — | 605 | 9,616 | 1,235 | — | 16,011 | ||||||||||||||||||
Substandard | — | 2,811 | 30,886 | 16,416 | 11,924 | 74,676 | — | 136,713 | ||||||||||||||||||
Non-accrual | — | 14 | 45 | — | — | 112 | — | 171 | ||||||||||||||||||
Total Real estate-business: | $ | 229,043 | $ | 1,143,969 | $ | 604,164 | $ | 512,099 | $ | 410,432 | $ | 477,347 | $ | 109,489 | $ | 3,486,543 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial loans | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 912,832 | $ | 2,957,489 | $ | 1,839,008 | $ | 953,684 | $ | 750,761 | $ | 774,542 | $ | 2,145,747 | $ | 10,334,063 | ||||||||||
Special mention | 21,171 | 6,368 | 4,460 | 7,935 | 10,129 | 2,878 | 676 | 53,617 | ||||||||||||||||||
Substandard | 1,127 | 11,015 | 40,945 | 33,677 | 12,427 | 113,146 | 21,880 | 234,217 | ||||||||||||||||||
Non-accrual | — | 172 | 1,863 | 33 | 1 | 4,392 | 71 | 6,532 | ||||||||||||||||||
Total Commercial loans: | $ | 935,130 | $ | 2,975,044 | $ | 1,886,276 | $ | 995,329 | $ | 773,318 | $ | 894,958 | $ | 2,168,374 | $ | 10,628,429 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 292 | $ | 292 |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Business | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 1,456,476 | $ | 782,409 | $ | 464,201 | $ | 360,844 | $ | 180,375 | $ | 219,053 | $ | 2,146,380 | $ | 5,609,738 | ||||||||||
Special mention | 3,113 | 2,548 | 7,757 | 1,063 | 67 | — | 1,319 | 15,867 | ||||||||||||||||||
Substandard | 5,752 | 10,004 | 685 | 37 | 810 | 10,342 | 1,739 | 29,369 | ||||||||||||||||||
Non-accrual | 195 | 1,987 | — | 1 | 792 | 3,776 | — | 6,751 | ||||||||||||||||||
Total Business: | $ | 1,465,536 | $ | 796,948 | $ | 472,643 | $ | 361,945 | $ | 182,044 | $ | 233,171 | $ | 2,149,438 | $ | 5,661,725 | ||||||||||
Real estate-construction | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 538,022 | $ | 596,465 | $ | 129,632 | $ | 27,331 | $ | 1,305 | $ | 2,029 | $ | 18,559 | $ | 1,313,343 | ||||||||||
Special mention | 352 | — | — | — | — | — | — | 352 | ||||||||||||||||||
Substandard | — | 19,494 | — | — | 14,766 | 13,140 | — | 47,400 | ||||||||||||||||||
Total Real estate-construction: | $ | 538,374 | $ | 615,959 | $ | 129,632 | $ | 27,331 | $ | 16,071 | $ | 15,169 | $ | 18,559 | $ | 1,361,095 | ||||||||||
Real estate- business | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 1,085,379 | $ | 616,516 | $ | 555,648 | $ | 424,641 | $ | 163,628 | $ | 271,579 | $ | 90,799 | $ | 3,208,190 | ||||||||||
Special mention | 4,608 | — | 618 | 9,737 | 976 | 279 | — | 16,218 | ||||||||||||||||||
Substandard | 2,795 | 30,944 | 61,141 | 10,490 | 30,782 | 46,232 | — | 182,384 | ||||||||||||||||||
Non-accrual | 14 | 45 | — | — | 124 | 6 | — | 189 | ||||||||||||||||||
Total Real-estate business: | $ | 1,092,796 | $ | 647,505 | $ | 617,407 | $ | 444,868 | $ | 195,510 | $ | 318,096 | $ | 90,799 | $ | 3,406,981 | ||||||||||
Commercial loans | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 3,079,877 | $ | 1,995,390 | $ | 1,149,481 | $ | 812,816 | $ | 345,308 | $ | 492,661 | $ | 2,255,738 | $ | 10,131,271 | ||||||||||
Special mention | 8,073 | 2,548 | 8,375 | 10,800 | 1,043 | 279 | 1,319 | 32,437 | ||||||||||||||||||
Substandard | 8,547 | 60,442 | 61,826 | 10,527 | 46,358 | 69,714 | 1,739 | 259,153 | ||||||||||||||||||
Non-accrual | 209 | 2,032 | — | 1 | 916 | 3,782 | — | 6,940 | ||||||||||||||||||
Total Commercial loans: | $ | 3,096,706 | $ | 2,060,412 | $ | 1,219,682 | $ | 834,144 | $ | 393,625 | $ | 566,436 | $ | 2,258,796 | $ | 10,429,801 |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Real estate-personal | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 113,590 | $ | 512,841 | $ | 578,969 | $ | 769,804 | $ | 284,835 | $ | 675,601 | $ | 10,209 | $ | 2,945,849 | ||||||||||
Over 90 days past due | — | 394 | 946 | 1,372 | — | 2,212 | — | 4,924 | ||||||||||||||||||
Non-accrual | — | — | — | — | 167 | 1,102 | — | 1,269 | ||||||||||||||||||
Total Real estate-personal: | $ | 113,590 | $ | 513,235 | $ | 579,915 | $ | 771,176 | $ | 285,002 | $ | 678,915 | $ | 10,209 | $ | 2,952,042 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 18 | $ | — | $ | 18 | ||||||||||
Consumer | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 158,392 | $ | 430,621 | $ | 345,779 | $ | 183,261 | $ | 91,521 | $ | 82,898 | $ | 800,002 | $ | 2,092,474 | ||||||||||
Over 90 days past due | — | 343 | 310 | 115 | 62 | 443 | 642 | 1,915 | ||||||||||||||||||
Total Consumer: | $ | 158,392 | $ | 430,964 | $ | 346,089 | $ | 183,376 | $ | 91,583 | $ | 83,341 | $ | 800,644 | $ | 2,094,389 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | 519 | $ | 505 | $ | 279 | $ | 127 | $ | 159 | $ | 270 | $ | 1,859 | ||||||||||
Revolving home equity | ||||||||||||||||||||||||||
Current to 90 days past due | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 294,629 | $ | 294,629 | ||||||||||
Over 90 days past due | — | — | — | — | — | — | 849 | 849 | ||||||||||||||||||
Total Revolving home equity: | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 295,478 | $ | 295,478 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Consumer credit card | ||||||||||||||||||||||||||
Current to 90 days past due | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 552,482 | $ | 552,482 | ||||||||||
Over 90 days past due | — | — | — | — | — | — | 6,187 | 6,187 | ||||||||||||||||||
Total Consumer credit card: | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 558,669 | $ | 558,669 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5,684 | $ | 5,684 | ||||||||||
Overdrafts | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 6,515 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,515 | ||||||||||
Over 90 days past due | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Overdrafts: | $ | 6,515 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,515 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | 1,195 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,195 | ||||||||||
Personal banking loans | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 278,497 | $ | 943,462 | $ | 924,748 | $ | 953,065 | $ | 376,356 | $ | 758,499 | $ | 1,657,322 | $ | 5,891,949 | ||||||||||
Over 90 days past due | — | 737 | 1,256 | 1,487 | 62 | 2,655 | 7,678 | 13,875 | ||||||||||||||||||
Non-accrual | — | — | — | — | 167 | 1,102 | — | 1,269 | ||||||||||||||||||
Total Personal banking loans: | $ | 278,497 | $ | 944,199 | $ | 926,004 | $ | 954,552 | $ | 376,585 | $ | 762,256 | $ | 1,665,000 | $ | 5,907,093 | ||||||||||
Gross write-offs for the three months ended March 31, 2023 | $ | 1,195 | $ | 519 | $ | 505 | $ | 279 | $ | 127 | $ | 177 | $ | 5,954 | $ | 8,756 |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Real estate-personal | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 535,283 | $ | 589,658 | $ | 783,651 | $ | 290,580 | $ | 132,305 | $ | 568,380 | $ | 10,174 | $ | 2,910,031 | ||||||||||
Over 90 days past due | 514 | 967 | 1,338 | 81 | 1,388 | 2,393 | — | 6,681 | ||||||||||||||||||
Non-accrual | — | — | 52 | 169 | 102 | 1,043 | — | 1,366 | ||||||||||||||||||
Total Real estate-personal: | $ | 535,797 | $ | 590,625 | $ | 785,041 | $ | 290,830 | $ | 133,795 | $ | 571,816 | $ | 10,174 | $ | 2,918,078 | ||||||||||
Consumer | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 536,429 | $ | 378,118 | $ | 205,849 | $ | 106,733 | $ | 36,096 | $ | 62,255 | $ | 731,436 | $ | 2,056,916 | ||||||||||
Over 90 days past due | 326 | 251 | 203 | 58 | 267 | 228 | 839 | 2,172 | ||||||||||||||||||
Total Consumer: | $ | 536,755 | $ | 378,369 | $ | 206,052 | $ | 106,791 | $ | 36,363 | $ | 62,483 | $ | 732,275 | $ | 2,059,088 | ||||||||||
Revolving home equity | ||||||||||||||||||||||||||
Current to 90 days past due | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 296,504 | $ | 296,504 | ||||||||||
Over 90 days past due | — | — | — | — | — | — | 703 | 703 | ||||||||||||||||||
Total Revolving home equity: | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 297,207 | $ | 297,207 | ||||||||||
Consumer credit card | ||||||||||||||||||||||||||
Current to 90 days past due | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 578,451 | $ | 578,451 | ||||||||||
Over 90 days past due | — | — | — | — | — | — | 5,549 | 5,549 | ||||||||||||||||||
Total Consumer credit card: | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 584,000 | $ | 584,000 | ||||||||||
Overdrafts | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 14,737 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,737 | ||||||||||
Over 90 days past due | 220 | — | — | — | — | — | — | 220 | ||||||||||||||||||
Total Overdrafts: | $ | 14,957 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,957 | ||||||||||
Personal banking loans | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 1,086,449 | $ | 967,776 | $ | 989,500 | $ | 397,313 | $ | 168,401 | $ | 630,635 | $ | 1,616,565 | $ | 5,856,639 | ||||||||||
Over 90 days past due | 1,060 | 1,218 | 1,541 | 139 | 1,655 | 2,621 | 7,091 | 15,325 | ||||||||||||||||||
Non-accrual | — | — | 52 | 169 | 102 | 1,043 | — | 1,366 | ||||||||||||||||||
Total Personal banking loans: | $ | 1,087,509 | $ | 968,994 | $ | 991,093 | $ | 397,621 | $ | 170,158 | $ | 634,299 | $ | 1,623,656 | $ | 5,873,330 |
(In thousands) | Business Assets | Oil & Gas Assets | Total | ||||||||
March 31, 2023 | |||||||||||
Commercial: | |||||||||||
Business | $ | 2,611 | $ | 1,671 | $ | 4,282 | |||||
Total | $ | 2,611 | $ | 1,671 | $ | 4,282 | |||||
December 31, 2022 | |||||||||||
Commercial: | |||||||||||
Business | $ | 2,778 | $ | 1,824 | $ | 4,602 | |||||
Total | $ | 2,778 | $ | 1,824 | $ | 4,602 |
Personal Banking Loans | ||||||||||||||
% of Loan Category | ||||||||||||||
Real Estate - Personal | Consumer | Revolving Home Equity | Consumer Credit Card | |||||||||||
March 31, 2023 | ||||||||||||||
FICO score: | ||||||||||||||
Under 600 | 1.8 | % | 2.6 | % | 1.8 | % | 4.2 | % | ||||||
600 - 659 | 2.5 | 4.0 | 3.3 | 11.9 | ||||||||||
660 - 719 | 9.2 | 13.6 | 9.8 | 30.9 | ||||||||||
720 - 779 | 21.8 | 29.2 | 21.7 | 27.5 | ||||||||||
780 and over | 64.7 | 50.6 | 63.4 | 25.5 | ||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
December 31, 2022 | ||||||||||||||
FICO score: | ||||||||||||||
Under 600 | 1.4 | % | 2.2 | % | 1.5 | % | 3.4 | % | ||||||
600 - 659 | 2.2 | 4.2 | 2.8 | 11.4 | ||||||||||
660 - 719 | 8.1 | 14.5 | 9.7 | 30.8 | ||||||||||
720 - 779 | 23.7 | 26.7 | 21.4 | 27.1 | ||||||||||
780 and over | 64.6 | 52.4 | 64.6 | 27.3 | ||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
(Dollars in thousands) | Term Extension | Payment Delay | Interest Rate Reduction | Interest/Fees Forgiven | Other | Total | % of Total Loan Category | ||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Business | $ | 3,104 | $ | — | $ | — | $ | — | $ | — | $ | 3,104 | 0.1 | % | |||||||||
Real estate – business | 23,039 | — | — | — | — | 23,039 | 0.7 | ||||||||||||||||
Personal Banking: | |||||||||||||||||||||||
Real estate – personal | — | 1,666 | — | — | — | 1,666 | 0.1 | ||||||||||||||||
Consumer | — | 58 | 16 | — | 55 | 129 | — | ||||||||||||||||
Consumer credit card | — | — | 618 | 275 | — | 893 | 0.2 | ||||||||||||||||
Total | $ | 26,143 | $ | 1,724 | $ | 634 | $ | 275 | $ | 55 | $ | 28,831 | 0.2 | % |
Term Extension | |||||
Three Months Ended March 31, 2023 | |||||
Commercial: | |||||
Business | Added a weighted-average of 12 months to the life of loans. | ||||
Real estate – business | Added a weighted-average of 17 months to the life of loans. | ||||
Payment Delay | |||||
Three Months Ended March 31, 2023 | |||||
Personal Banking: | |||||
Real estate – personal | Deferred past due monthly payments to maturity as a balloon payment. Deferral delayed payments a weighted average of 27 years. | ||||
Consumer | Deferred past due monthly payments to maturity as a balloon payment. Deferral delayed payments a weighted average of 11 years. | ||||
Interest Rate Reduction | |||||
Three Months Ended March 31, 2023 | |||||
Personal Banking: | |||||
Consumer | Reduced weighted-average contractual interest by 14%. | ||||
Consumer credit card | Reduced weighted-average contractual interest by 14%. | ||||
Forgiveness of Interest/Fees | |||||
Three Months Ended March 31, 2023 | |||||
Personal Banking: | |||||
Consumer credit card | Approximately $14 thousand of interest and fees forgiven. | ||||
(Dollars in thousands) | Interest Rate Reduction | Interest/Fees Forgiven | Total | ||||||||
March 31, 2023 | |||||||||||
Personal Banking: | |||||||||||
Consumer | $ | 8 | $ | — | $ | 8 | |||||
Consumer credit card | 63 | 12 | 75 | ||||||||
Total | $ | 71 | $ | 12 | $ | 83 |
(In thousands) | Current | 30-89 Days Past Due | 90 Days Past Due | Total | ||||||||||
March 31, 2023 | ||||||||||||||
Commercial: | ||||||||||||||
Business | $ | 3,104 | $ | — | $ | — | $ | 3,104 | ||||||
Real estate – business | 23,039 | — | — | 23,039 | ||||||||||
Personal Banking: | ||||||||||||||
Real estate – personal | 1,061 | 605 | — | 1,666 | ||||||||||
Consumer | 75 | 46 | 8 | 129 | ||||||||||
Consumer credit card | 645 | 173 | 75 | 893 | ||||||||||
Total | $ | 27,924 | $ | 824 | $ | 83 | $ | 28,831 |
(In thousands) | December 31, 2022 | |||||||
Accruing restructured loans: | ||||||||
Commercial | $ | 184,388 | ||||||
Assistance programs | 5,156 | |||||||
Other consumer | 4,049 | |||||||
Non-accrual loans | 5,078 | |||||||
Total troubled debt restructurings | $ | 198,671 |
(In thousands) | December 31, 2022 | Balance at December 31, 2022 that was 90 days past due at any time during previous 12 months | ||||||
Commercial: | ||||||||
Business | $ | 12,311 | $ | — | ||||
Real estate - construction and land | 57,547 | — | ||||||
Real estate - business | 118,654 | — | ||||||
Personal Banking: | ||||||||
Real estate - personal | 2,809 | 419 | ||||||
Consumer | 2,250 | 268 | ||||||
Revolving home equity | 17 | — | ||||||
Consumer credit card | 5,083 | 452 | ||||||
Total troubled debt restructurings | $ | 198,671 | $ | 1,139 |
(In thousands) | March 31, 2023 | December 31, 2022 | ||||||
Available for sale debt securities | $ | 11,228,616 | $ | 12,238,316 | ||||
Trading debt securities | 41,584 | 43,523 | ||||||
Equity securities: | ||||||||
Readily determinable fair value | 6,083 | 6,210 | ||||||
No readily determinable fair value | 6,445 | 6,094 | ||||||
Other: | ||||||||
Federal Reserve Bank stock | 34,887 | 34,795 | ||||||
Federal Home Loan Bank stock | 70,112 | 10,678 | ||||||
Equity method investments | — | 1,434 | ||||||
Private equity investments | 163,418 | 178,127 | ||||||
Total investment securities (1) | $ | 11,551,145 | $ | 12,519,177 |
(In thousands) | Amortized Cost | Fair Value | ||||||
U.S. government and federal agency obligations: | ||||||||
Within 1 year | $ | 482,979 | $ | 474,435 | ||||
After 1 but within 5 years | 391,902 | 378,408 | ||||||
After 5 but within 10 years | 173,874 | 167,380 | ||||||
Total U.S. government and federal agency obligations | 1,048,755 | 1,020,223 | ||||||
Government-sponsored enterprise obligations: | ||||||||
After 5 but within 10 years | 4,955 | 4,631 | ||||||
After 10 years | 50,734 | 39,783 | ||||||
Total government-sponsored enterprise obligations | 55,689 | 44,414 | ||||||
State and municipal obligations: | ||||||||
Within 1 year | 98,381 | 97,510 | ||||||
After 1 but within 5 years | 465,196 | 442,933 | ||||||
After 5 but within 10 years | 887,757 | 771,946 | ||||||
After 10 years | 163,836 | 141,425 | ||||||
Total state and municipal obligations | 1,615,170 | 1,453,814 | ||||||
Mortgage and asset-backed securities: | ||||||||
Agency mortgage-backed securities | 4,975,242 | 4,271,563 | ||||||
Non-agency mortgage-backed securities | 1,403,543 | 1,207,969 | ||||||
Asset-backed securities | 2,918,160 | 2,763,578 | ||||||
Total mortgage and asset-backed securities | 9,296,945 | 8,243,110 | ||||||
Other debt securities: | ||||||||
Within 1 year | 14,040 | 13,572 | ||||||
After 1 but within 5 years | 246,688 | 230,527 | ||||||
After 5 but within 10 years | 245,003 | 209,285 | ||||||
After 10 years | 16,260 | 13,671 | ||||||
Total other debt securities | 521,991 | 467,055 | ||||||
Total available for sale debt securities | $ | 12,538,550 | $ | 11,228,616 |
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||
(In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
U.S. government and federal agency obligations | $ | 532,588 | $ | 9,565 | $ | 386,394 | $ | 20,444 | $ | 918,982 | $ | 30,009 | ||||||||||||||
Government-sponsored enterprise obligations | 4,631 | 324 | 39,783 | 10,951 | 44,414 | 11,275 | ||||||||||||||||||||
State and municipal obligations | 188,055 | 2,025 | 1,200,901 | 159,549 | 1,388,956 | 161,574 | ||||||||||||||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||||||||
Agency mortgage-backed securities | 159,424 | 4,610 | 4,091,658 | 699,252 | 4,251,082 | 703,862 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 648 | 12 | 1,199,354 | 195,665 | 1,200,002 | 195,677 | ||||||||||||||||||||
Asset-backed securities | 131,679 | 2,523 | 2,631,899 | 152,059 | 2,763,578 | 154,582 | ||||||||||||||||||||
Total mortgage and asset-backed securities | 291,751 | 7,145 | 7,922,911 | 1,046,976 | 8,214,662 | 1,054,121 | ||||||||||||||||||||
Other debt securities | 7,843 | 201 | 459,212 | 54,735 | 467,055 | 54,936 | ||||||||||||||||||||
Total | $ | 1,024,868 | $ | 19,260 | $ | 10,009,201 | $ | 1,292,655 | $ | 11,034,069 | $ | 1,311,915 | ||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
U.S. government and federal agency obligations | $ | 605,840 | $ | 17,490 | $ | 380,573 | $ | 25,940 | $ | 986,413 | $ | 43,430 | ||||||||||||||
Government-sponsored enterprise obligations | 25,068 | 4,650 | 18,040 | 7,971 | 43,108 | 12,621 | ||||||||||||||||||||
State and municipal obligations | 814,799 | 26,708 | 875,329 | 171,385 | 1,690,128 | 198,093 | ||||||||||||||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||||||||
Agency mortgage-backed securities | 1,323,938 | 125,330 | 2,966,851 | 654,327 | 4,290,789 | 779,657 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 135,984 | 16,736 | 1,069,222 | 195,218 | 1,205,206 | 211,954 | ||||||||||||||||||||
Asset-backed securities | 1,331,055 | 50,056 | 2,006,188 | 140,424 | 3,337,243 | 190,480 | ||||||||||||||||||||
Total mortgage and asset-backed securities | 2,790,977 | 192,122 | 6,042,261 | 989,969 | 8,833,238 | 1,182,091 | ||||||||||||||||||||
Other debt securities | 166,040 | 9,690 | 308,818 | 54,707 | 474,858 | 64,397 | ||||||||||||||||||||
Total | $ | 4,402,724 | $ | 250,660 | $ | 7,625,021 | $ | 1,249,972 | $ | 12,027,745 | $ | 1,500,632 |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||
March 31, 2023 | |||||||||||||||||
U.S. government and federal agency obligations | $ | 1,048,755 | $ | 1,477 | $ | (30,009) | $ | — | $ | 1,020,223 | |||||||
Government-sponsored enterprise obligations | 55,689 | — | (11,275) | — | 44,414 | ||||||||||||
State and municipal obligations | 1,615,170 | 218 | (161,574) | — | 1,453,814 | ||||||||||||
Mortgage and asset-backed securities: | |||||||||||||||||
Agency mortgage-backed securities | 4,975,242 | 183 | (703,862) | — | 4,271,563 | ||||||||||||
Non-agency mortgage-backed securities | 1,403,543 | 103 | (195,677) | — | 1,207,969 | ||||||||||||
Asset-backed securities | 2,918,160 | — | (154,582) | — | 2,763,578 | ||||||||||||
Total mortgage and asset-backed securities | 9,296,945 | 286 | (1,054,121) | — | 8,243,110 | ||||||||||||
Other debt securities | 521,991 | — | (54,936) | — | 467,055 | ||||||||||||
Total | $ | 12,538,550 | $ | 1,981 | $ | (1,311,915) | $ | — | $ | 11,228,616 | |||||||
December 31, 2022 | |||||||||||||||||
U.S. government and federal agency obligations | $ | 1,078,807 | $ | 29 | $ | (43,430) | $ | — | $ | 1,035,406 | |||||||
Government-sponsored enterprise obligations | 55,729 | — | (12,621) | — | 43,108 | ||||||||||||
State and municipal obligations | 1,965,028 | 174 | (198,093) | — | 1,767,109 | ||||||||||||
Mortgage and asset-backed securities: | |||||||||||||||||
Agency mortgage-backed securities | 5,087,893 | 191 | (779,657) | — | 4,308,427 | ||||||||||||
Non-agency mortgage-backed securities | 1,423,469 | 92 | (211,954) | — | 1,211,607 | ||||||||||||
Asset-backed securities | 3,588,025 | 256 | (190,480) | — | 3,397,801 | ||||||||||||
Total mortgage and asset-backed securities | 10,099,387 | 539 | (1,182,091) | — | 8,917,835 | ||||||||||||
Other debt securities | 539,255 | — | (64,397) | — | 474,858 | ||||||||||||
Total | $ | 13,738,206 | $ | 742 | $ | (1,500,632) | $ | — | $ | 12,238,316 |
For the Three Months Ended March 31 | ||||||||
(In thousands) | 2023 | 2022 | ||||||
Proceeds from sales of securities: | ||||||||
Available for sale debt securities | $ | 812,176 | $ | — | ||||
Other investments | 28,259 | 1,745 | ||||||
Total proceeds | $ | 840,435 | $ | 1,745 | ||||
Investment securities gains (losses), net: | ||||||||
Available for sale debt securities: | ||||||||
Losses realized on sales | $ | (3,088) | $ | — | ||||
Equity securities: | ||||||||
Fair value adjustments, net | (127) | (287) | ||||||
Other: | ||||||||
Gains realized on sales | 658 | — | ||||||
Fair value adjustments, net | 2,251 | 7,450 | ||||||
Total investment securities gains (losses), net | $ | (306) | $ | 7,163 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Valuation Allowance | Net Amount | Gross Carrying Amount | Accumulated Amortization | Valuation Allowance | Net Amount | |||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||||||
Core deposit premium | $ | 5,550 | $ | (4,911) | $ | — | $ | 639 | $ | 31,270 | $ | (30,565) | $ | — | $ | 705 | |||||||||||||
Mortgage servicing rights | 22,227 | (11,548) | — | 10,679 | 22,187 | (11,258) | — | 10,929 | |||||||||||||||||||||
Total | $ | 27,777 | $ | (16,459) | $ | — | $ | 11,318 | $ | 53,457 | $ | (41,823) | $ | — | $ | 11,634 |
(In thousands) | |||||
2023 | $ | 1,396 | |||
2024 | 1,260 | ||||
2025 | 1,117 | ||||
2026 | 977 | ||||
2027 | 841 |
(In thousands) | Goodwill | Easement | Core Deposit Premium | Mortgage Servicing Rights | ||||||||||
Balance January 1, 2023 | $ | 138,921 | $ | 3,600 | $ | 705 | $ | 10,929 | ||||||
Originations, net of disposals | — | — | — | 40 | ||||||||||
Amortization | — | — | (66) | (290) | ||||||||||
Balance March 31, 2023 | $ | 138,921 | $ | 3,600 | $ | 639 | $ | 10,679 |
(In thousands) | |||||
Consumer segment | $ | 70,721 | |||
Commercial segment | 67,454 | ||||
Wealth segment | 746 | ||||
Total goodwill | $ | 138,921 |
For the Three Months Ended March 31 | ||||||||
(in thousands) | 2023 | 2022 | ||||||
Direct financing and sales-type leases | $ | 6,755 | $ | 5,247 | ||||
Operating leases(a) | 2,334 | 2,184 | ||||||
Total lease income | $ | 9,089 | $ | 7,431 |
For the Three Months Ended March 31 | ||||||||
(In thousands) | 2023 | 2022 | ||||||
Service cost | $ | 116 | $ | 132 | ||||
Interest cost on projected benefit obligation | 1,158 | 665 | ||||||
Expected return on plan assets | (1,001) | (1,126) | ||||||
Amortization of prior service cost | (67) | (68) | ||||||
Amortization of unrecognized net loss | 427 | 498 | ||||||
Net periodic pension cost | $ | 633 | $ | 101 |
For the Three Months Ended March 31 | ||||||||
(In thousands, except per share data) | 2023 | 2022 | ||||||
Basic income per common share: | ||||||||
Net income attributable to Commerce Bancshares, Inc. | $ | 119,452 | $ | 118,154 | ||||
Less income allocated to nonvested restricted stock | 1,056 | 1,070 | ||||||
Net income allocated to common stock | $ | 118,396 | $ | 117,084 | ||||
Weighted average common shares outstanding | 124,004 | 126,341 | ||||||
Basic income per common share | $ | .95 | $ | .92 | ||||
Diluted income per common share: | ||||||||
Net income attributable to Commerce Bancshares, Inc. | $ | 119,452 | $ | 118,154 | ||||
Less income allocated to nonvested restricted stock | 1,054 | 1,068 | ||||||
Net income allocated to common stock | $ | 118,398 | $ | 117,086 | ||||
Weighted average common shares outstanding | 124,004 | 126,341 | ||||||
Net effect of the assumed exercise of stock-based awards - based on the treasury stock method using the average market price for the respective periods | 255 | 306 | ||||||
Weighted average diluted common shares outstanding | 124,259 | 126,647 | ||||||
Diluted income per common share | $ | .95 | $ | .92 |
Unrealized Gains (Losses) on Securities (1) | Pension Loss | Unrealized Gains (Losses) on Cash Flow Hedge Derivatives (2) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||
(In thousands) | ||||||||||||||
Balance January 1, 2023 | $ | (1,124,915) | $ | (17,186) | $ | 55,237 | $ | (1,086,864) | ||||||
Other comprehensive income (loss) before reclassifications to current earnings | 186,868 | — | 9,225 | 196,093 | ||||||||||
Amounts reclassified to current earnings from accumulated other comprehensive income | 3,088 | 360 | (4,385) | (937) | ||||||||||
Current period other comprehensive income (loss), before tax | 189,956 | 360 | 4,840 | 195,156 | ||||||||||
Income tax (expense) benefit | (47,490) | (90) | (1,210) | (48,790) | ||||||||||
Current period other comprehensive income (loss), net of tax | 142,466 | 270 | 3,630 | 146,366 | ||||||||||
Balance March 31, 2023 | $ | (982,449) | $ | (16,916) | $ | 58,867 | $ | (940,498) | ||||||
Balance January 1, 2022 | $ | 23,174 | $ | (20,668) | $ | 74,574 | $ | 77,080 | ||||||
Other comprehensive income (loss) before reclassifications to current earnings | (676,353) | — | — | (676,353) | ||||||||||
Amounts reclassified to current earnings from accumulated other comprehensive income | — | 430 | (6,050) | (5,620) | ||||||||||
Current period other comprehensive income (loss), before tax | (676,353) | 430 | (6,050) | (681,973) | ||||||||||
Income tax (expense) benefit | 169,088 | (107) | 1,512 | 170,493 | ||||||||||
Current period other comprehensive income (loss), net of tax | (507,265) | 323 | (4,538) | (511,480) | ||||||||||
Balance March 31, 2022 | $ | (484,091) | $ | (20,345) | $ | 70,036 | $ | (434,400) |
(In thousands) | Consumer | Commercial | Wealth | Segment Totals | Other/Elimination | Consolidated Totals | ||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Net interest income | $ | 96,854 | $ | 116,166 | $ | 17,540 | $ | 230,560 | $ | 21,063 | $ | 251,623 | ||||||||
Provision for credit losses | (6,306) | (393) | (13) | (6,712) | (4,744) | (11,456) | ||||||||||||||
Non-interest income | 24,303 | 58,324 | 52,944 | 135,571 | 2,041 | 137,612 | ||||||||||||||
Investment securities gains (losses), net | — | — | — | — | (306) | (306) | ||||||||||||||
Non-interest expense | (77,326) | (93,623) | (39,636) | (210,585) | (13,522) | (224,107) | ||||||||||||||
Income before income taxes | $ | 37,525 | $ | 80,474 | $ | 30,835 | $ | 148,834 | $ | 4,532 | $ | 153,366 | ||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Net interest income | $ | 86,818 | $ | 108,953 | $ | 18,869 | $ | 214,640 | $ | (5,854) | $ | 208,786 | ||||||||
Provision for credit losses | (4,504) | (82) | (26) | (4,612) | 14,470 | 9,858 | ||||||||||||||
Non-interest income | 26,415 | 53,651 | 53,206 | 133,272 | (1,503) | 131,769 | ||||||||||||||
Investment securities gains (losses), net | — | — | — | — | 7,163 | 7,163 | ||||||||||||||
Non-interest expense | (74,823) | (89,506) | (36,288) | (200,617) | (5,031) | (205,648) | ||||||||||||||
Income before income taxes | $ | 33,906 | $ | 73,016 | $ | 35,761 | $ | 142,683 | $ | 9,245 | $ | 151,928 |
(In thousands) | March 31, 2023 | December 31, 2022 | ||||||
Interest rate swaps | $ | 1,987,051 | $ | 1,981,821 | ||||
Interest rate floors | 1,500,000 | 1,000,000 | ||||||
Interest rate caps | 152,784 | 152,784 | ||||||
Credit risk participation agreements | 577,922 | 579,925 | ||||||
Foreign exchange contracts | 15,335 | 27,991 | ||||||
Mortgage loan commitments | 362 | — | ||||||
Mortgage loan forward sale contracts | 3,290 | — | ||||||
Forward TBA contracts | 3,500 | — | ||||||
Total notional amount | $ | 4,240,244 | $ | 3,742,521 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | ||||||||||||||
(In thousands) | Fair Value | Fair Value | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Interest rate floors | $ | 68,495 | $ | 33,371 | $ | — | $ | — | |||||||||
Total derivatives designated as hedging instruments | $ | 68,495 | $ | 33,371 | $ | — | $ | — | |||||||||
Derivative instruments not designated as hedging instruments: | |||||||||||||||||
Interest rate swaps | $ | 28,960 | $ | 23,894 | $ | (40,352) | $ | (51,742) | |||||||||
Interest rate caps | 2,222 | 2,705 | (2,222) | (2,705) | |||||||||||||
Credit risk participation agreements | 44 | 34 | (148) | (119) | |||||||||||||
Foreign exchange contracts | 359 | 488 | (310) | (418) | |||||||||||||
Mortgage loan commitments | 77 | — | — | — | |||||||||||||
Mortgage loan forward sale contracts | — | — | (1) | — | |||||||||||||
Forward TBA contracts | — | — | (35) | — | |||||||||||||
Total derivatives not designated as hedging instruments | $ | 31,662 | $ | 27,121 | $ | (43,068) | $ | (54,984) | |||||||||
Total | $ | 100,157 | $ | 60,492 | $ | (43,068) | $ | (54,984) |
Location of Gain or (Loss) Recognized in Consolidated Statements of Income | Amount of Gain or (Loss) Recognized in Income on Derivatives | ||||||||||
For the Three Months Ended March 31 | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Derivative instruments: | |||||||||||
Interest rate swaps | Other non-interest income | $ | 623 | $ | 812 | ||||||
Interest rate caps | Other non-interest income | — | 16 | ||||||||
Credit risk participation agreements | Other non-interest income | (19) | (10) | ||||||||
Foreign exchange contracts | Other non-interest income | (20) | (14) | ||||||||
Mortgage loan commitments | Loan fees and sales | 77 | (485) | ||||||||
Mortgage loan forward sale contracts | Loan fees and sales | (1) | — | ||||||||
Forward TBA contracts | Loan fees and sales | 1 | 1,243 | ||||||||
Total | $ | 661 | $ | 1,562 |
Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||
(In thousands) | Gross Amount Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts Presented in the Balance Sheet | Financial Instruments Available for Offset | Collateral Received/ Pledged | Net Amount | ||||||||||||||
March 31, 2023 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 100,005 | $ | — | $ | 100,005 | $ | (2,255) | $ | (93,822) | $ | 3,928 | ||||||||
Derivatives not subject to master netting agreements | 152 | — | 152 | |||||||||||||||||
Total derivatives | $ | 100,157 | $ | — | $ | 100,157 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 42,694 | $ | — | $ | 42,694 | $ | (2,255) | $ | — | $ | 40,439 | ||||||||
Derivatives not subject to master netting agreements | 374 | — | 374 | |||||||||||||||||
Total derivatives | $ | 43,068 | $ | — | $ | 43,068 | ||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 60,270 | $ | — | $ | 60,270 | $ | (1,007) | $ | (56,816) | $ | 2,447 | ||||||||
Derivatives not subject to master netting agreements | 222 | — | 222 | |||||||||||||||||
Total derivatives | $ | 60,492 | $ | — | $ | 60,492 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 54,609 | $ | — | $ | 54,609 | $ | (1,007) | $ | — | $ | 53,602 | ||||||||
Derivatives not subject to master netting agreements | 375 | — | 375 | |||||||||||||||||
Total derivatives | $ | 54,984 | $ | — | $ | 54,984 |
Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||
(In thousands) | Gross Amount Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts Presented in the Balance Sheet | Financial Instruments Available for Offset | Securities Collateral Received/Pledged | Unsecured Amount | ||||||||||||||
March 31, 2023 | ||||||||||||||||||||
Total resale agreements, subject to master netting arrangements | $ | 1,025,000 | $ | (200,000) | $ | 825,000 | $ | — | $ | (825,000) | $ | — | ||||||||
Total repurchase agreements, subject to master netting arrangements | 2,228,089 | (200,000) | 2,028,089 | — | (2,028,089) | — | ||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Total resale agreements, subject to master netting arrangements | $ | 1,025,000 | $ | (200,000) | $ | 825,000 | $ | — | $ | (825,000) | $ | — | ||||||||
Total repurchase agreements, subject to master netting arrangements | 2,881,874 | (200,000) | 2,681,874 | — | (2,681,874) | — |
Remaining Contractual Maturity of the Agreements | ||||||||||||||
(In thousands) | Overnight and continuous | Up to 90 days | Greater than 90 days | Total | ||||||||||
March 31, 2023 | ||||||||||||||
Repurchase agreements, secured by: | ||||||||||||||
U.S. government and federal agency obligations | $ | 194,757 | $ | 13,602 | $ | 19,278 | $ | 227,637 | ||||||
Agency mortgage-backed securities | 1,472,769 | 14,743 | 205,000 | 1,692,512 | ||||||||||
Non-agency mortgage-backed securities | 11,818 | — | — | 11,818 | ||||||||||
Asset-backed securities | 294,161 | — | — | 294,161 | ||||||||||
Other debt securities | 1,961 | — | — | 1,961 | ||||||||||
Total repurchase agreements, gross amount recognized | $ | 1,975,466 | $ | 28,345 | $ | 224,278 | $ | 2,228,089 | ||||||
December 31, 2022 | ||||||||||||||
Repurchase agreements, secured by: | ||||||||||||||
U.S. government and federal agency obligations | $ | 488,053 | $ | 26,928 | $ | 12,460 | $ | 527,441 | ||||||
Agency mortgage-backed securities | 1,792,314 | 21,744 | 204,500 | 2,018,558 | ||||||||||
Non-agency mortgage-backed securities | 40,950 | — | — | 40,950 | ||||||||||
Asset-backed securities | 293,001 | — | — | 293,001 | ||||||||||
Other debt securities | 1,924 | — | — | 1,924 | ||||||||||
Total repurchase agreements, gross amount recognized | $ | 2,616,242 | $ | 48,672 | $ | 216,960 | $ | 2,881,874 |
Shares | Weighted Average Grant Date Fair Value | |||||||
Nonvested at January 1, 2023 | 1,148,873 | $58.20 | ||||||
Granted | 247,082 | 65.63 | ||||||
Vested | (284,800) | 50.62 | ||||||
Forfeited | (2,238) | 61.82 | ||||||
Nonvested at March 31, 2023 | 1,108,917 | $61.79 |
Weighted per share average fair value at grant date | $18.65 | ||||
Assumptions: | |||||
Dividend yield | 1.6 | % | |||
Volatility | 27.9 | % | |||
Risk-free interest rate | 3.9 | % | |||
Expected term | 5.8 years |
(Dollars in thousands, except per share data) | Rights | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
Outstanding at January 1, 2023 | 948,727 | $46.82 | ||||||||||||
Granted | 89,829 | 65.64 | ||||||||||||
Forfeited | (555) | 60.00 | ||||||||||||
Exercised | (40,976) | 25.88 | ||||||||||||
Outstanding at March 31, 2023 | 997,025 | $49.37 | 5.6 years | $11,094 |
Three Months Ended March 31 | ||||||||
(In thousands) | 2023 | 2022 | ||||||
Bank card transaction fees | $ | 46,654 | $ | 42,045 | ||||
Trust fees | 45,328 | 47,811 | ||||||
Deposit account charges and other fees | 21,752 | 22,307 | ||||||
Consumer brokerage services | 5,085 | 4,446 | ||||||
Other non-interest income | 8,339 | 4,495 | ||||||
Total non-interest income from contracts with customers | 127,158 | 121,104 | ||||||
Other non-interest income (1) | 10,454 | 10,665 | ||||||
Total non-interest income | $ | 137,612 | $ | 131,769 |
(In thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | December 31, 2021 | ||||||||||
Bank card transaction fees | $ | 15,585 | $ | 17,254 | $ | 14,171 | $ | 16,424 | ||||||
Trust fees | 2,098 | 2,038 | 2,094 | 2,222 | ||||||||||
Deposit account charges and other fees | 5,398 | 6,631 | 5,452 | 6,702 | ||||||||||
Consumer brokerage services | 773 | 949 | 324 | 391 |
Fair Value Measurements Using | ||||||||||||||
(In thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
March 31, 2023 | ||||||||||||||
Assets: | ||||||||||||||
Residential mortgage loans held for sale | $ | 684 | $ | — | $ | 684 | $ | — | ||||||
Available for sale debt securities: | ||||||||||||||
U.S. government and federal agency obligations | 1,020,223 | 1,020,223 | — | — | ||||||||||
Government-sponsored enterprise obligations | 44,414 | — | 44,414 | — | ||||||||||
State and municipal obligations | 1,453,814 | — | 1,452,900 | 914 | ||||||||||
Agency mortgage-backed securities | 4,271,563 | — | 4,271,563 | — | ||||||||||
Non-agency mortgage-backed securities | 1,207,969 | — | 1,207,969 | — | ||||||||||
Asset-backed securities | 2,763,578 | — | 2,763,578 | — | ||||||||||
Other debt securities | 467,055 | — | 467,055 | — | ||||||||||
Trading debt securities | 41,584 | 500 | 41,084 | — | ||||||||||
Equity securities | 6,083 | 6,083 | — | — | ||||||||||
Private equity investments | 163,418 | — | — | 163,418 | ||||||||||
Derivatives * | 100,157 | — | 100,036 | 121 | ||||||||||
Assets held in trust for deferred compensation plan | 18,656 | 18,656 | — | — | ||||||||||
Total assets | 11,559,198 | 1,045,462 | 10,349,283 | 164,453 | ||||||||||
Liabilities: | ||||||||||||||
Derivatives * | 43,068 | — | 42,920 | 148 | ||||||||||
Liabilities held in trust for deferred compensation plan | 18,656 | 18,656 | — | — | ||||||||||
Total liabilities | $ | 61,724 | $ | 18,656 | $ | 42,920 | $ | 148 | ||||||
December 31, 2022 | ||||||||||||||
Assets: | ||||||||||||||
Residential mortgage loans held for sale | $ | — | $ | — | $ | — | $ | — | ||||||
Available for sale debt securities: | ||||||||||||||
U.S. government and federal agency obligations | 1,035,406 | 1,035,406 | — | — | ||||||||||
Government-sponsored enterprise obligations | 43,108 | — | 43,108 | — | ||||||||||
State and municipal obligations | 1,767,109 | — | 1,765,268 | 1,841 | ||||||||||
Agency mortgage-backed securities | 4,308,427 | — | 4,308,427 | — | ||||||||||
Non-agency mortgage-backed securities | 1,211,607 | — | 1,211,607 | — | ||||||||||
Asset-backed securities | 3,397,801 | — | 3,397,801 | — | ||||||||||
Other debt securities | 474,858 | — | 474,858 | — | ||||||||||
Trading debt securities | 43,523 | — | 43,523 | — | ||||||||||
Equity securities | 6,210 | 6,210 | — | — | ||||||||||
Private equity investments | 178,127 | — | — | 178,127 | ||||||||||
Derivatives * | 60,492 | — | 60,458 | 34 | ||||||||||
Assets held in trust for deferred compensation plan | 17,856 | 17,856 | — | — | ||||||||||
Total assets | 12,544,524 | 1,059,472 | 11,305,050 | 180,002 | ||||||||||
Liabilities: | ||||||||||||||
Derivatives * | 54,984 | — | 54,865 | 119 | ||||||||||
Liabilities held in trust for deferred compensation plan | 17,856 | 17,856 | — | — | ||||||||||
Total liabilities | $ | 72,840 | $ | 17,856 | $ | 54,865 | $ | 119 |
(In thousands) | Loan Fees and Sales | Other Non-Interest Income | Investment Securities Gains (Losses), Net | Total | ||||||||||
For the three months ended March 31, 2023 | ||||||||||||||
Total gains or losses included in earnings | $ | 77 | $ | (19) | $ | 2,251 | $ | 2,309 | ||||||
Change in unrealized gains or losses relating to assets still held at March 31, 2023 | $ | 77 | $ | (19) | $ | 2,251 | $ | 2,309 | ||||||
For the three months ended March 31, 2022 | ||||||||||||||
Total gains or losses included in earnings | $ | (485) | $ | (10) | $ | 7,450 | $ | 6,955 | ||||||
Change in unrealized gains or losses relating to assets still held at March 31, 2022 | $ | 279 | $ | (12) | $ | 7,450 | $ | 7,717 |
Quantitative Information about Level 3 Fair Value Measurements | Weighted | ||||||||||||||||||||||
Valuation Technique | Unobservable Input | Range | Average* | ||||||||||||||||||||
Private equity investments | Market comparable companies | EBITDA multiple | 4.0 | - | 6.0 | 5.2 | |||||||||||||||||
Mortgage loan commitments | Discounted cash flow | Probability of funding | 62.6% | - | 100.0% | 78.3% | |||||||||||||||||
Embedded servicing value | .7% | - | 1.6% | 1.2% |
Fair Value Measurements Using | |||||||||||||||||
(In thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) Recognized During the Three Months Ended March 31 | ||||||||||||
March 31, 2023 | |||||||||||||||||
Collateral dependent loans | $ | 1,819 | $ | — | $ | — | $ | 1,819 | $ | 425 | |||||||
March 31, 2022 | |||||||||||||||||
Mortgage servicing rights | $ | 11,360 | $ | — | $ | — | $ | 11,360 | $ | 304 | |||||||
Long- lived assets | 497 | — | — | 497 | (965) | ||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | Weighted | ||||||||||||||||||||||
Valuation Technique | Unobservable Input | Range | Average* | ||||||||||||||||||||
Mortgage servicing rights | Discounted cash flow | Discount rate | 9.51 | % | - | 9.71 | % | 9.58 | % | ||||||||||||||
Prepayment speeds (CPR)* | 6.33 | % | - | 7.47 | % | 6.53 | % | ||||||||||||||||
Loan servicing costs - annually per loan | |||||||||||||||||||||||
Performing loans | $ | 70 | - | $ | 72 | $ | 71 | ||||||||||||||||
Delinquent loans | $ | 200 | - | $ | 750 | ||||||||||||||||||
Loans in foreclosure | $ | 1,000 |
Carrying Amount | Estimated Fair Value at March 31, 2023 | |||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial Assets | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Business | $ | 5,704,467 | $ | — | $ | — | $ | 5,577,723 | $ | 5,577,723 | ||||||||||
Real estate - construction and land | 1,437,419 | — | — | 1,407,614 | 1,407,614 | |||||||||||||||
Real estate - business | 3,486,543 | — | — | 3,383,813 | 3,383,813 | |||||||||||||||
Real estate - personal | 2,952,042 | — | — | 2,700,721 | 2,700,721 | |||||||||||||||
Consumer | 2,094,389 | — | — | 2,033,884 | 2,033,884 | |||||||||||||||
Revolving home equity | 295,478 | — | — | 296,436 | 296,436 | |||||||||||||||
Consumer credit card | 558,669 | — | — | 530,987 | 530,987 | |||||||||||||||
Overdrafts | 6,515 | — | — | 6,372 | 6,372 | |||||||||||||||
Total loans | 16,535,522 | — | — | 15,937,550 | 15,937,550 | |||||||||||||||
Loans held for sale | 6,162 | — | 6,162 | — | 6,162 | |||||||||||||||
Investment securities | 11,544,700 | 1,026,806 | 10,248,563 | 269,331 | 11,544,700 | |||||||||||||||
Federal funds sold | 27,060 | 27,060 | — | — | 27,060 | |||||||||||||||
Securities purchased under agreements to resell | 825,000 | — | — | 804,959 | 804,959 | |||||||||||||||
Interest earning deposits with banks | 1,341,854 | 1,341,854 | — | — | 1,341,854 | |||||||||||||||
Cash and due from banks | 351,210 | 351,210 | — | — | 351,210 | |||||||||||||||
Derivative instruments | 100,157 | — | 100,036 | 121 | 100,157 | |||||||||||||||
Assets held in trust for deferred compensation plan | 18,656 | 18,656 | — | — | 18,656 | |||||||||||||||
Total | $ | 30,750,321 | $ | 2,765,586 | $ | 10,354,761 | $ | 17,011,961 | $ | 30,132,308 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Non-interest bearing deposits | $ | 8,685,234 | $ | 8,685,234 | $ | — | $ | — | $ | 8,685,234 | ||||||||||
Savings, interest checking and money market deposits | 14,419,741 | 14,419,741 | — | — | 14,419,741 | |||||||||||||||
Certificates of deposit | 1,578,485 | — | — | 1,577,207 | 1,577,207 | |||||||||||||||
Federal funds purchased | 756,470 | 756,470 | — | — | 756,470 | |||||||||||||||
Securities sold under agreements to repurchase | 2,028,089 | — | — | 2,030,615 | 2,030,615 | |||||||||||||||
Other borrowings | 1,506,817 | 2,930 | 3,887 | 1,500,000 | 1,506,817 | |||||||||||||||
Derivative instruments | 43,068 | — | 42,920 | 148 | 43,068 | |||||||||||||||
Liabilities held in trust for deferred compensation plan | 18,656 | 18,656 | — | — | 18,656 | |||||||||||||||
Total | $ | 29,036,560 | $ | 23,883,031 | $ | 46,807 | $ | 5,107,970 | $ | 29,037,808 |
Carrying Amount | Estimated Fair Value at December 31, 2022 | |||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial Assets | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Business | $ | 5,661,725 | $ | — | $ | — | $ | 5,506,128 | $ | 5,506,128 | ||||||||||
Real estate - construction and land | 1,361,095 | — | — | 1,347,328 | 1,347,328 | |||||||||||||||
Real estate - business | 3,406,981 | — | — | 3,289,655 | 3,289,655 | |||||||||||||||
Real estate - personal | 2,918,078 | — | — | 2,654,423 | 2,654,423 | |||||||||||||||
Consumer | 2,059,088 | — | — | 1,999,788 | 1,999,788 | |||||||||||||||
Revolving home equity | 297,207 | — | — | 295,005 | 295,005 | |||||||||||||||
Consumer credit card | 584,000 | — | — | 538,268 | 538,268 | |||||||||||||||
Overdrafts | 14,957 | — | — | 14,666 | 14,666 | |||||||||||||||
Total loans | 16,303,131 | — | — | 15,645,261 | 15,645,261 | |||||||||||||||
Loans held for sale | 4,964 | — | 4,964 | — | 4,964 | |||||||||||||||
Investment securities | 12,511,649 | 1,041,616 | 11,244,592 | 225,441 | 12,511,649 | |||||||||||||||
Federal funds sold | 49,505 | 49,505 | — | — | 49,505 | |||||||||||||||
Securities purchased under agreements to resell | 825,000 | — | — | 795,574 | 795,574 | |||||||||||||||
Interest earning deposits with banks | 389,140 | 389,140 | — | — | 389,140 | |||||||||||||||
Cash and due from banks | 452,496 | 452,496 | — | — | 452,496 | |||||||||||||||
Derivative instruments | 60,492 | — | 60,458 | 34 | 60,492 | |||||||||||||||
Assets held in trust for deferred compensation plan | 17,856 | 17,856 | — | — | 17,856 | |||||||||||||||
Total | $ | 30,614,233 | $ | 1,950,613 | $ | 11,310,014 | $ | 16,666,310 | $ | 29,926,937 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Non-interest bearing deposits | $ | 10,066,356 | $ | 10,066,356 | $ | — | $ | — | $ | 10,066,356 | ||||||||||
Savings, interest checking and money market deposits | 15,126,981 | 15,126,981 | — | — | 15,126,981 | |||||||||||||||
Certificates of deposit | 994,103 | — | — | 982,613 | 982,613 | |||||||||||||||
Federal funds purchased | 159,860 | 159,860 | — | — | 159,860 | |||||||||||||||
Securities sold under agreements to repurchase | 2,681,874 | — | — | 2,684,471 | 2,684,471 | |||||||||||||||
Other borrowings | 8,831 | — | 8,831 | — | 8,831 | |||||||||||||||
Derivative instruments | 54,984 | — | 54,865 | 119 | 54,984 | |||||||||||||||
Liabilities held in trust for deferred compensation plan | 17,856 | 17,856 | — | — | 17,856 | |||||||||||||||
Total | $ | 29,110,845 | $ | 25,371,053 | $ | 63,696 | $ | 3,667,203 | $ | 29,101,952 |
Three Months Ended March 31 | ||||||||
2023 | 2022 | |||||||
Per Share Data | ||||||||
Net income per common share — basic | $ | .95 | $ | .92 | * | |||
Net income per common share — diluted | .95 | .92 | * | |||||
Cash dividends on common stock | .270 | .252 | * | |||||
Book value per common share | 21.51 | 23.43 | * | |||||
Market price | 58.35 | 68.18 | * | |||||
Selected Ratios | ||||||||
(Based on average balance sheets) | ||||||||
Loans to deposits (1) | 64.99 | % | 51.90 | % | ||||
Non-interest bearing deposits to total deposits | 36.10 | 39.34 | ||||||
Equity to loans (1) | 15.74 | 21.83 | ||||||
Equity to deposits | 10.23 | 11.33 | ||||||
Equity to total assets | 8.22 | 9.26 | ||||||
Return on total assets | 1.54 | 1.33 | ||||||
Return on equity | 18.75 | 14.41 | ||||||
(Based on end-of-period data) | ||||||||
Non-interest income to revenue (2) | 35.35 | 38.69 | ||||||
Efficiency ratio (3) | 57.49 | 60.29 | ||||||
Tier I common risk-based capital ratio | 14.47 | 13.92 | ||||||
Tier I risk-based capital ratio | 14.47 | 13.92 | ||||||
Total risk-based capital ratio | 15.26 | 14.61 | ||||||
Tangible common equity to tangible assets ratio (4) | 7.92 | 8.09 | ||||||
Tier I leverage ratio | 10.61 | 9.07 |
March 31 | ||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||
Total equity | $ | 2,682,412 | $ | 2,973,402 | ||||
Less non-controlling interest | 16,888 | 12,762 | ||||||
Less goodwill | 138,921 | 138,921 | ||||||
Less intangible assets* | 4,239 | 4,525 | ||||||
Total tangible common equity (a) | $ | 2,522,364 | $ | 2,817,194 | ||||
Total assets | $ | 32,004,856 | $ | 34,986,793 | ||||
Less goodwill | 138,921 | 138,921 | ||||||
Less intangible assets* | 4,239 | 4,525 | ||||||
Total tangible assets (b) | $ | 31,861,696 | $ | 34,843,347 | ||||
Tangible common equity to tangible assets ratio (a)/(b) | 7.92 | % | 8.09 | % |
Three Months Ended March 31 | Increase (Decrease) | |||||||||||||
(Dollars in thousands) | 2023 | 2022 | Amount | % change | ||||||||||
Net interest income | $ | 251,623 | $ | 208,786 | $ | 42,837 | 20.5 | % | ||||||
Provision for credit losses | (11,456) | 9,858 | 21,314 | (216.2) | ||||||||||
Non-interest income | 137,612 | 131,769 | 5,843 | 4.4 | ||||||||||
Investment securities gains (losses), net | (306) | 7,163 | (7,469) | (104.3) | ||||||||||
Non-interest expense | (224,107) | (205,648) | 18,459 | 9.0 | ||||||||||
Income taxes | (32,813) | (31,902) | 911 | 2.9 | ||||||||||
Non-controlling interest income (expense) | (1,101) | (1,872) | (771) | (41.2) | ||||||||||
Net income attributable to Commerce Bancshares, Inc. | $ | 119,452 | $ | 118,154 | 1,298 | 1.1 | % | |||||||
Three Months Ended March 31, 2023 vs. 2022 | |||||||||||
Change due to | |||||||||||
(In thousands) | Average Volume | Average Rate | Total | ||||||||
Interest income, fully taxable equivalent basis: | |||||||||||
Loans: | |||||||||||
Business | $ | 2,575 | $ | 33,046 | $ | 35,621 | |||||
Real estate - construction and land | 2,558 | 12,402 | 14,960 | ||||||||
Real estate - business | 3,195 | 19,448 | 22,643 | ||||||||
Real estate - personal | 1,009 | 2,381 | 3,390 | ||||||||
Consumer | 241 | 8,735 | 8,976 | ||||||||
Revolving home equity | 196 | 2,603 | 2,799 | ||||||||
Consumer credit card | 430 | 3,197 | 3,627 | ||||||||
Overdrafts | — | — | — | ||||||||
Total interest on loans | 10,204 | 81,812 | 92,016 | ||||||||
Loans held for sale | (26) | 21 | (5) | ||||||||
Investment securities: | |||||||||||
U.S. government and federal agency securities | (39) | (4,140) | (4,179) | ||||||||
Government-sponsored enterprise obligations | 204 | 188 | 392 | ||||||||
State and municipal obligations | (1,600) | (114) | (1,714) | ||||||||
Mortgage-backed securities | (4,209) | 1,269 | (2,940) | ||||||||
Asset-backed securities | (1,948) | 7,005 | 5,057 | ||||||||
Other securities | 231 | 823 | 1,054 | ||||||||
Total interest on investment securities | (7,361) | 5,031 | (2,330) | ||||||||
Federal funds sold | 51 | 437 | 488 | ||||||||
Securities purchased under agreements to resell | (2,779) | 1,431 | (1,348) | ||||||||
Interest earning deposits with banks | (798) | 8,983 | 8,185 | ||||||||
Total interest income | (709) | 97,715 | 97,006 | ||||||||
Interest expense: | |||||||||||
Deposits: | |||||||||||
Savings | (2) | 17 | 15 | ||||||||
Interest checking and money market | (98) | 18,474 | 18,376 | ||||||||
Certificates of deposit of less than $100,000 | (7) | 1,293 | 1,286 | ||||||||
Certificates of deposit of $100,000 and over | (37) | 6,237 | 6,200 | ||||||||
Total interest on deposits | (144) | 26,021 | 25,877 | ||||||||
Federal funds purchased | 151 | 5428 | 5579 | ||||||||
Securities sold under agreements to repurchase | (72) | 16,885 | 16,813 | ||||||||
Other borrowings | 6,713 | 6 | 6,719 | ||||||||
Total interest expense | 6,648 | 48,340 | 54,988 | ||||||||
Net interest income, tax equivalent basis | $ | (7,357) | $ | 49,375 | $ | 42,018 |
Three Months Ended March 31 | Increase (Decrease) | |||||||||||||
(Dollars in thousands) | 2023 | 2022 | Amount | % change | ||||||||||
Trust fees | $ | 45,328 | $ | 47,811 | $ | (2,483) | (5.2) | % | ||||||
Bank card transaction fees | 46,654 | 42,045 | 4,609 | 11.0 | ||||||||||
Deposit account charges and other fees | 21,752 | 22,307 | (555) | (2.5) | ||||||||||
Consumer brokerage services | 5,085 | 4,446 | 639 | 14.4 | ||||||||||
Capital market fees | 3,362 | 4,125 | (763) | (18.5) | ||||||||||
Loan fees and sales | 2,589 | 4,235 | (1,646) | (38.9) | ||||||||||
Other | 12,842 | 6,800 | 6,042 | 88.9 | ||||||||||
Total non-interest income | $ | 137,612 | $ | 131,769 | $ | 5,843 | 4.4 | % | ||||||
Non-interest income as a % of total revenue* | 35.4 | % | 38.7 | % |
Three Months Ended March 31 | ||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ change | % change | ||||||||||
Net debit card fees | $ | 10,287 | $ | 9,552 | $ | 735 | 7.7 | % | ||||||
Net credit card fees | 3,674 | 3,722 | (48) | (1.3) | ||||||||||
Net merchant fees | 5,351 | 4,980 | 371 | 7.4 | ||||||||||
Net corporate card fees | 27,342 | 23,791 | 3,551 | 14.9 | ||||||||||
Total bank card transaction fees | $ | 46,654 | $ | 42,045 | $ | 4,609 | 11.0 | % |
Three Months Ended March 31 | ||||||||
(In thousands) | 2023 | 2022 | ||||||
Net gains (losses) on sales of available for sale debt securities | $ | (3,088) | $ | — | ||||
Fair value adjustments on equity securities, net | (127) | (287) | ||||||
Net gains (losses) on sales of private equity investments | 658 | — | ||||||
Fair value adjustments on private equity investments | 2,251 | 7,450 | ||||||
Total investment securities gains (losses), net | $ | (306) | $ | 7,163 |
Three Months Ended March 31 | Increase (Decrease) | |||||||||||||
(Dollars in thousands) | 2023 | 2022 | Amount | % change | ||||||||||
Salaries and employee benefits | $ | 144,373 | $ | 135,953 | $ | 8,420 | 6.2 | % | ||||||
Data processing and software | 28,154 | 27,016 | 1,138 | 4.2 | ||||||||||
Net occupancy | 12,759 | 12,296 | 463 | 3.8 | ||||||||||
Equipment | 4,850 | 4,568 | 282 | 6.2 | ||||||||||
Supplies and communication | 4,590 | 4,713 | (123) | (2.6) | ||||||||||
Marketing | 5,471 | 6,344 | (873) | (13.8) | ||||||||||
Other | 23,910 | 14,758 | 9,152 | 62.0 | ||||||||||
Total non-interest expense | $ | 224,107 | $ | 205,648 | $ | 18,459 | 9.0 | % |
Three Months Ended | |||||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |||||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS | |||||||||||
Balance at beginning of period | $ | 150,136 | $ | 143,377 | $ | 150,044 | |||||
Provision for credit losses on loans | 15,948 | 12,404 | (10,686) | ||||||||
Net loan charge-offs (recoveries): | |||||||||||
Commercial: | |||||||||||
Business | 230 | 496 | 77 | ||||||||
Real estate-construction and land | — | — | — | ||||||||
Real estate-business | (4) | (4) | (7) | ||||||||
Commercial net loan charge-offs (recoveries) | 226 | 492 | 70 | ||||||||
Personal Banking: | |||||||||||
Real estate-personal | (11) | (40) | 22 | ||||||||
Consumer | 1,275 | 1,522 | 808 | ||||||||
Revolving home equity | (26) | (26) | 18 | ||||||||
Consumer credit card | 4,325 | 3,467 | 3,372 | ||||||||
Overdrafts | 978 | 230 | 358 | ||||||||
Personal banking net loan charge-offs (recoveries) | 6,541 | 5,153 | 4,578 | ||||||||
Total net loan charge-offs (recoveries) | 6,767 | 5,645 | 4,648 | ||||||||
Balance at end of period | $ | 159,317 | $ | 150,136 | $ | 134,710 | |||||
LIABILITY FOR UNFUNDED LENDING COMMITMENTS | |||||||||||
Balance at beginning of period | 33,120 | 30,047 | 24,204 | ||||||||
Provision for credit losses on unfunded lending commitments | (4,492) | 3,073 | 828 | ||||||||
Balance at end of period | 28,628 | 33,120 | 25,032 | ||||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS | $ | 187,945 | $ | 183,256 | $ | 159,742 |
Three Months Ended | |||||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |||||||||
Annualized net loan charge-offs (recoveries)*: | |||||||||||
Commercial: | |||||||||||
Business | .02 | % | .04 | % | .01 | % | |||||
Real estate-construction and land | — | — | — | ||||||||
Real estate-business | — | — | — | ||||||||
Commercial net loan charge-offs (recoveries) | .01 | .02 | — | ||||||||
Personal Banking: | |||||||||||
Real estate-personal | — | (.01) | — | ||||||||
Consumer | .25 | .29 | .16 | ||||||||
Revolving home equity | (.04) | (.04) | .03 | ||||||||
Consumer credit card | 3.15 | 2.46 | 2.53 | ||||||||
Overdrafts | 89.15 | 12.28 | 28.04 | ||||||||
Personal banking net loan charge-offs (recoveries) | .45 | .35 | .33 | ||||||||
Total annualized net loan charge-offs (recoveries) | .17 | % | .14 | % | .12 | % |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||
Non-accrual loans | $ | 7,801 | $ | 8,306 | ||||
Foreclosed real estate | 167 | 96 | ||||||
Total non-performing assets | $ | 7,968 | $ | 8,402 | ||||
Non-performing assets as a percentage of total loans | .05 | % | .05 | % | ||||
Non-performing assets as a percentage of total assets | .02 | % | .03 | % | ||||
Total loans past due 90 days and still accruing interest | $ | 14,800 | $ | 15,830 |
(In thousands) | March 31, 2023 | December 31, 2022 | ||||||
Potential problem loans: | ||||||||
Business | $ | 67,828 | $ | 29,455 | ||||
Real estate – construction and land | 29,849 | 47,493 | ||||||
Real estate – business | 136,878 | 182,526 | ||||||
Real estate – personal | 247 | 250 | ||||||
Total potential problem loans | $ | 234,802 | $ | 259,724 |
(Dollars in thousands) | March 31, 2023 | % of Total | % of Total Loans | December 31, 2022 | % of Total | % of Total Loans | ||||||||||||||
Commercial construction | $ | 1,203,399 | 83.7 | % | 7.3 | % | $ | 1,122,105 | 82.4 | % | 6.9 | % | ||||||||
Residential construction | 130,136 | 9.1 | .8 | 138,311 | 10.2 | .8 | ||||||||||||||
Residential land and land development | 52,595 | 3.6 | .3 | 50,012 | 3.7 | .3 | ||||||||||||||
Commercial land and land development | 51,289 | 3.6 | .3 | 50,667 | 3.7 | .3 | ||||||||||||||
Total real estate - construction and land loans | $ | 1,437,419 | 100.0 | % | 8.7 | % | $ | 1,361,095 | 100.0 | % | 8.3 | % |
(Dollars in thousands) | March 31, 2023 | % of Total | % of Total Loans | December 31, 2022 | % of Total | % of Total Loans | ||||||||||||||
Owner-occupied | $ | 1,156,873 | 33.2 | % | 7.0 | % | $ | 1,136,189 | 33.3 | % | 7.0 | % | ||||||||
Office | 500,524 | 14.4 | 3.0 | 497,601 | 14.6 | 3.1 | ||||||||||||||
Industrial | 482,093 | 13.8 | 2.9 | 478,534 | 14.0 | 2.9 | ||||||||||||||
Retail | 354,592 | 10.2 | 2.1 | 322,971 | 9.5 | 2.0 | ||||||||||||||
Multi-family | 289,700 | 8.3 | 1.8 | 308,156 | 9.0 | 1.9 | ||||||||||||||
Hotels | 252,463 | 7.2 | 1.5 | 230,972 | 6.8 | 1.4 | ||||||||||||||
Farm | 194,723 | 5.6 | 1.2 | 195,920 | 5.8 | 1.2 | ||||||||||||||
Senior living | 144,273 | 4.1 | .9 | 131,217 | 3.9 | .8 | ||||||||||||||
Other | 111,302 | 3.2 | .7 | 105,421 | 3.1 | .6 | ||||||||||||||
Total real estate - business loans | $ | 3,486,543 | 100.0 | % | 21.1 | % | $ | 3,406,981 | 100.0 | % | 20.9 | % |
(Dollars in thousands) | Pass | Special Mention | Substandard | Non-Accrual | Total | ||||||||||||
March 31, 2023 | |||||||||||||||||
Owner-occupied | $ | 1,148,677 | $ | 615 | $ | 7,469 | $ | 112 | $ | 1,156,873 | |||||||
Office | 497,137 | 3,387 | — | — | 500,524 | ||||||||||||
Industrial | 482,093 | — | — | — | 482,093 | ||||||||||||
Retail | 352,694 | — | 1,898 | — | 354,592 | ||||||||||||
Multi-family | 283,119 | 1,958 | 4,623 | — | 289,700 | ||||||||||||
Hotels | 241,194 | 9,606 | 1,663 | — | 252,463 | ||||||||||||
Farm | 194,488 | 177 | — | 58 | 194,723 | ||||||||||||
Senior living | 23,212 | — | 121,060 | 1 | 144,273 | ||||||||||||
Other | 111,034 | 268 | — | — | 111,302 | ||||||||||||
Total | $ | 3,333,648 | $ | 16,011 | $ | 136,713 | $ | 171 | $ | 3,486,543 | |||||||
December 31, 2022 | |||||||||||||||||
Owner-occupied | $ | 1,129,343 | $ | 632 | $ | 6,084 | $ | 130 | $ | 1,136,189 | |||||||
Office | 494,169 | 3,432 | — | — | 497,601 | ||||||||||||
Industrial | 478,534 | — | — | — | 478,534 | ||||||||||||
Retail | 321,041 | — | 1,930 | — | 322,971 | ||||||||||||
Multi-family | 286,202 | 1,975 | 19,979 | — | 308,156 | ||||||||||||
Hotels | 174,558 | 9,725 | 46,689 | — | 230,972 | ||||||||||||
Farm | 195,685 | 177 | — | 58 | 195,920 | ||||||||||||
Senior living | 23,514 | — | 107,702 | 1 | 131,217 | ||||||||||||
Other | 105,144 | 277 | — | — | 105,421 | ||||||||||||
Total | $ | 3,208,190 | $ | 16,218 | $ | 182,384 | $ | 189 | $ | 3,406,981 |
(In thousands) | March 31, 2023 | December 31, 2022 | Unfunded commitments at March 31, 2023 | |||||||||||
Extraction | $ | 233,670 | $ | 235,933 | $ | 150,203 | ||||||||
Mid-stream shipping and storage | 27,520 | 43,432 | 107,637 | |||||||||||
Downstream distribution and refining | 14,934 | 7,675 | 8,433 | |||||||||||
Support activities | 9,017 | 9,387 | 7,532 | |||||||||||
Total energy lending portfolio | $ | 285,141 | $ | 296,427 | $ | 273,805 |
(In thousands) | March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||||||||||||
Liquid assets: | ||||||||||||||||||||
Available for sale debt securities | $ | 11,228,616 | $ | 14,780,494 | $ | 12,238,316 | ||||||||||||||
Federal funds sold | 27,060 | — | 49,505 | |||||||||||||||||
Securities purchased under agreements to resell | 825,000 | 1,825,000 | 825,000 | |||||||||||||||||
Balances at the Federal Reserve Bank | 1,341,854 | 1,260,813 | 389,140 | |||||||||||||||||
Total | $ | 13,422,530 | $ | 17,866,307 | $ | 13,501,961 |
(In thousands) | March 31, 2023 | March 31, 2022 | December 31, 2022 | ||||||||
Investment securities pledged for the purpose of securing: | |||||||||||
Federal Reserve Bank borrowings | $ | 3,145,959 | $ | 16,260 | $ | 11,469 | |||||
FHLB borrowings and letters of credit | 294,025 | 2,798 | 1,817 | ||||||||
Securities sold under agreements to repurchase * | 2,290,546 | 2,575,444 | 2,950,240 | ||||||||
Other deposits and swaps | 2,409,058 | 2,606,141 | 1,772,974 | ||||||||
Total pledged securities | 8,139,588 | 5,200,643 | 4,736,500 | ||||||||
Unpledged and available for pledging | 3,070,590 | 8,426,648 | 6,545,695 | ||||||||
Ineligible for pledging | 18,438 | 1,153,203 | 956,121 | ||||||||
Total available for sale debt securities, at fair value | $ | 11,228,616 | $ | 14,780,494 | $ | 12,238,316 |
(In thousands) | March 31, 2023 | March 31, 2022 | December 31, 2022 | ||||||||
Core deposit base: | |||||||||||
Non-interest bearing | $ | 8,685,234 | $ | 11,428,372 | $ | 10,066,356 | |||||
Interest checking | 6,464,948 | 3,301,315 | 1,854,336 | ||||||||
Savings and money market | 7,954,793 | 13,450,317 | 13,272,645 | ||||||||
Total | $ | 23,104,975 | $ | 28,180,004 | $ | 25,193,337 |
(In thousands) | March 31, 2023 | March 31, 2022 | December 31, 2022 | ||||||||
Borrowings: | |||||||||||
Federal funds purchased | $ | 756,470 | $ | 17,315 | $ | 159,860 | |||||
Securities sold under agreements to repurchase | 2,028,089 | 2,300,146 | 2,681,874 | ||||||||
FHLB advances | 1,500,000 | — | — | ||||||||
Other debt | 7,776 | 9,057 | 9,672 | ||||||||
Total | $ | 4,292,335 | $ | 2,326,518 | $ | 2,851,406 |
March 31, 2023 | |||||||||||
(In thousands) | FHLB | Federal Reserve | Total | ||||||||
Total collateral value established by FHLB and FRB | $ | 2,165,815 | $ | 3,829,015 | $ | 5,994,830 | |||||
Advances outstanding | (1,500,000) | — | (1,500,000) | ||||||||
Letters of credit issued | (111,515) | — | (111,515) | ||||||||
Available for future advances | $ | 554,300 | $ | 3,829,015 | $ | 4,383,315 |
Standard & Poor’s | Moody’s | |||||||
Commerce Bancshares, Inc. | ||||||||
Issuer rating | A- | |||||||
Rating outlook | Stable | |||||||
Commerce Bank | ||||||||
Issuer rating | A | A2 | ||||||
Baseline credit assessment | a1 | |||||||
Short-term rating | A-1 | P-1 | ||||||
Rating outlook | Stable | Stable |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | Minimum Ratios under Capital Adequacy Guidelines | Minimum Ratios for Well-Capitalized Banks * | ||||||||||
Risk-adjusted assets | $ | 23,928,212 | $ | 24,178,423 | ||||||||||
Tier I common risk-based capital | 3,463,319 | 3,417,223 | ||||||||||||
Tier I risk-based capital | 3,463,319 | 3,417,223 | ||||||||||||
Total risk-based capital | 3,651,557 | 3,600,920 | ||||||||||||
Tier I common risk-based capital ratio | 14.47 | % | 14.13 | % | 7.00 | % | 6.50 | % | ||||||
Tier I risk-based capital ratio | 14.47 | 14.13 | 8.50 | 8.00 | ||||||||||
Total risk-based capital ratio | 15.26 | 14.89 | 10.50 | 10.00 | ||||||||||
Tier I leverage ratio | 10.61 | 10.34 | 4.00 | 5.00 |
(Dollars in thousands) | Consumer | Commercial | Wealth | Segment Totals | Other/ Elimination | Consolidated Totals | ||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Net interest income | $ | 96,854 | $ | 116,166 | $ | 17,540 | $ | 230,560 | $ | 21,063 | $ | 251,623 | ||||||||
Provision for credit losses | (6,306) | (393) | (13) | (6,712) | (4,744) | (11,456) | ||||||||||||||
Non-interest income | 24,303 | 58,324 | 52,944 | 135,571 | 2,041 | 137,612 | ||||||||||||||
Investment securities gains (losses), net | — | — | — | — | (306) | (306) | ||||||||||||||
Non-interest expense | (77,326) | (93,623) | (39,636) | (210,585) | (13,522) | (224,107) | ||||||||||||||
Income before income taxes | $ | 37,525 | $ | 80,474 | $ | 30,835 | $ | 148,834 | $ | 4,532 | $ | 153,366 | ||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Net interest income | $ | 86,818 | $ | 108,953 | $ | 18,869 | $ | 214,640 | $ | (5,854) | $ | 208,786 | ||||||||
Provision for credit losses | (4,504) | (82) | (26) | (4,612) | 14,470 | 9,858 | ||||||||||||||
Non-interest income | 26,415 | 53,651 | 53,206 | 133,272 | (1,503) | 131,769 | ||||||||||||||
Investment securities gains (losses), net | — | — | — | — | 7,163 | 7,163 | ||||||||||||||
Non-interest expense | (74,823) | (89,506) | (36,288) | (200,617) | (5,031) | (205,648) | ||||||||||||||
Income before income taxes | $ | 33,906 | $ | 73,016 | $ | 35,761 | $ | 142,683 | $ | 9,245 | $ | 151,928 | ||||||||
Increase (decrease) in income before income taxes: | ||||||||||||||||||||
Amount | $ | 3,619 | $ | 7,458 | $ | (4,926) | $ | 6,151 | $ | (4,713) | $ | 1,438 | ||||||||
Percent | 10.7 | % | 10.2 | % | (13.8 | %) | 4.3 | % | (51.0) | % | .9 | % |
First Quarter 2023 | First Quarter 2022 | ||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income/Expense | Avg. Rates Earned/Paid | Average Balance | Interest Income/Expense | Avg. Rates Earned/Paid | |||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||
Business(A) | $ | 5,656,104 | $ | 74,037 | 5.31 | % | $ | 5,324,172 | $ | 38,416 | 2.93 | % | |||||||||||
Real estate — construction and land | 1,410,835 | 25,486 | 7.33 | 1,134,902 | 10,526 | 3.76 | |||||||||||||||||
Real estate — business | 3,478,382 | 48,444 | 5.65 | 3,095,068 | 25,801 | 3.38 | |||||||||||||||||
Real estate — personal | 2,933,750 | 26,086 | 3.61 | 2,808,980 | 22,696 | 3.28 | |||||||||||||||||
Consumer | 2,067,385 | 27,060 | 5.31 | 2,040,200 | 18,084 | 3.59 | |||||||||||||||||
Revolving home equity | 296,748 | 5,146 | 7.03 | 273,859 | 2,347 | 3.48 | |||||||||||||||||
Consumer credit card | 556,223 | 18,757 | 13.68 | 540,844 | 15,130 | 11.35 | |||||||||||||||||
Overdrafts | 4,449 | — | — | 5,178 | — | — | |||||||||||||||||
Total loans | 16,403,876 | 225,016 | 5.56 | 15,223,203 | 133,000 | 3.54 | |||||||||||||||||
Loans held for sale | 5,708 | 145 | 10.30 | 9,383 | 150 | 6.48 | |||||||||||||||||
Investment securities: | |||||||||||||||||||||||
U.S. government and federal agency obligations | 1,099,067 | 5,138 | 1.90 | 1,103,749 | 9,317 | 3.42 | |||||||||||||||||
Government-sponsored enterprise obligations | 87,086 | 690 | 3.21 | 51,770 | 298 | 2.33 | |||||||||||||||||
State and municipal obligations(A) | 1,793,756 | 9,994 | 2.26 | 2,077,600 | 11,708 | 2.29 | |||||||||||||||||
Mortgage-backed securities | 6,454,408 | 32,830 | 2.06 | 7,316,609 | 35,770 | 1.98 | |||||||||||||||||
Asset-backed securities | 3,233,757 | 16,041 | 2.01 | 3,933,061 | 10,984 | 1.13 | |||||||||||||||||
Other debt securities | 528,941 | 2,523 | 1.93 | 636,247 | 3,134 | 2.00 | |||||||||||||||||
Trading debt securities(A) | 45,757 | 518 | 4.59 | 40,686 | 185 | 1.84 | |||||||||||||||||
Equity securities(A) | 12,458 | 714 | 23.24 | 9,498 | 609 | 26.00 | |||||||||||||||||
Other securities(A) | 229,867 | 4,029 | 7.11 | 192,311 | 2,802 | 5.91 | |||||||||||||||||
Total investment securities | 13,485,097 | 72,477 | 2.18 | 15,361,531 | 74,807 | 1.97 | |||||||||||||||||
Federal funds sold | 38,978 | 489 | 5.09 | 1,053 | 1 | .39 | |||||||||||||||||
Securities purchased under agreements to resell | 825,000 | 3,952 | 1.94 | 1,733,887 | 5,300 | 1.24 | |||||||||||||||||
Interest earning deposits with banks | 809,935 | 9,336 | 4.67 | 2,608,029 | 1,151 | .18 | |||||||||||||||||
Total interest earning assets | 31,568,594 | 311,415 | 4.00 | 34,937,086 | 214,409 | 2.49 | |||||||||||||||||
Allowance for credit losses on loans | (150,117) | (149,685) | |||||||||||||||||||||
Unrealized loss on debt securities | (1,387,196) | (174,297) | |||||||||||||||||||||
Cash and due from banks | 314,024 | 340,242 | |||||||||||||||||||||
Premises and equipment, net | 431,288 | 407,000 | |||||||||||||||||||||
Other assets | 631,239 | 557,158 | |||||||||||||||||||||
Total assets | $ | 31,407,832 | $ | 35,917,504 | |||||||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||||
Interest bearing deposits: | |||||||||||||||||||||||
Savings | $ | 1,550,215 | 193 | .05 | $ | 1,563,093 | 178 | .05 | |||||||||||||||
Interest checking and money market | 13,265,485 | 19,958 | .61 | 14,949,727 | 1,582 | .04 | |||||||||||||||||
Certificates of deposit of less than $100,000 | 415,367 | 1,425 | 1.39 | 429,852 | 139 | .13 | |||||||||||||||||
Certificates of deposit of $100,000 and over | 903,393 | 6,627 | 2.98 | 862,232 | 427 | .20 | |||||||||||||||||
Total interest bearing deposits | 16,134,460 | 28,203 | .71 | 17,804,904 | 2,326 | .05 | |||||||||||||||||
Borrowings: | |||||||||||||||||||||||
Federal funds purchased | $ | 493,721 | $ | 5,586 | 4.59 | 23,356 | $ | 7 | .12 | ||||||||||||||
Securities sold under agreements to repurchase | 2,418,726 | 17,495 | 2.93 | 2,712,468 | 682 | .10 | |||||||||||||||||
Other borrowings(B) | 551,267 | 6,720 | 4.94 | 768 | 1 | .53 | |||||||||||||||||
Total borrowings | 3,463,714 | 29,801 | 3.49 | 2,736,592 | 690 | .10 | |||||||||||||||||
Total interest bearing liabilities | 19,598,174 | 58,004 | 1.20 | % | 20,541,496 | 3,016 | .06 | % | |||||||||||||||
Non-interest bearing deposits | 9,114,512 | 11,544,701 | |||||||||||||||||||||
Other liabilities | 112,052 | 505,644 | |||||||||||||||||||||
Equity | 2,583,094 | 3,325,663 | |||||||||||||||||||||
Total liabilities and equity | $ | 31,407,832 | $ | 35,917,504 | |||||||||||||||||||
Net interest margin (FTE) | $ | 253,411 | $ | 211,393 | |||||||||||||||||||
Net yield on interest earning assets | 3.26 | % | 2.45 | % |
Simulation A | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
(Dollars in millions) | $ Change in Net Interest Income | % Change in Net Interest Income | Assumed Deposit (Attrition)/Growth | $ Change in Net Interest Income | % Change in Net Interest Income | Assumed Deposit (Attrition)/Growth | |||||||||||||||||||||||
300 basis points rising | $ | (7.6) | (.75) | % | $ | — | $ | (.5) | (.05) | % | $ | — | |||||||||||||||||
200 basis points rising | (6.5) | (.63) | — | 2.0 | .19 | — | |||||||||||||||||||||||
100 basis points rising | (1.3) | (.13) | — | 4.1 | .38 | — | |||||||||||||||||||||||
100 basis points falling | (16.0) | (1.56) | — | (24.0) | (2.20) | — | |||||||||||||||||||||||
200 basis points falling | (40.1) | (3.92) | — | (52.6) | (4.82) | — | |||||||||||||||||||||||
300 basis points falling | (66.5) | (6.49) | — | (84.9) | (7.78) | — | |||||||||||||||||||||||
Simulation B | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
(Dollars in millions) | $ Change in Net Interest Income | % Change in Net Interest Income | Assumed Deposit (Attrition)/Growth | $ Change in Net Interest Income | % Change in Net Interest Income | Assumed Deposit (Attrition)/Growth | |||||||||||||||||||||||
300 basis points rising | $ | (15.1) | (1.50) | % | $ | (49.4) | $ | (17.9) | (1.71) | % | $ | (216.7) | |||||||||||||||||
200 basis points rising | (11.5) | (1.14) | (36.2) | (11.4) | (1.09) | (180.4) | |||||||||||||||||||||||
100 basis points rising | (3.9) | (.39) | (20.0) | (5.0) | (.48) | (136.6) | |||||||||||||||||||||||
100 basis points falling | $ | (10.9) | (1.08) | $ | 74.7 | 3.6 | .34 | 539.3 | |||||||||||||||||||||
200 basis points falling | (29.1) | (2.89) | 189.6 | (15.2) | (1.45) | 761.0 | |||||||||||||||||||||||
300 basis points falling | (52.4) | (5.21) | 257.1 | (45.6) | (4.36) | 792.0 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as part of Publicly Announced Program | Maximum Number that May Yet Be Purchased Under the Program | |||||||||||||
January 1 - 31, 2023 | 124,045 | $ | 65.85 | 124,045 | 2,988,013 | ||||||||||||
February 1 - 28, 2023 | 270,152 | $ | 66.76 | 270,152 | 2,717,861 | ||||||||||||
March 1 - 31, 2023 | 153,184 | $ | 64.51 | 153,184 | 2,564,677 | ||||||||||||
Total | 547,381 | $ | 65.93 | 547,381 | 2,564,677 |
COMMERCE BANCSHARES, INC. | |||||||||||
By | /s/ MARGARET M. ROWE | ||||||||||
Margaret M. Rowe | |||||||||||
Date: May 4, 2023 | Vice President & Secretary |
By | /s/ PAUL A. STEINER | ||||||||||
Paul A. Steiner | |||||||||||
Controller | |||||||||||
Date: May 4, 2023 | (Chief Accounting Officer) |
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