(Mark One) | |||||
☑ | ANNUAL 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 |
Missouri
|
43-0889454
|
|||||||
(State of Incorporation) | (IRS Employer Identification No.) |
1000 Walnut | |||||||||||
Kansas City, | MO |
64106
|
|||||||||
(Address of principal executive offices) | (Zip Code) |
Commerce Bancshares, Inc. | |||||||||||
Form 10-K | |||||||||||
INDEX | Page | ||||||||||
Page | |||||||||||
I. | Distribution of Assets, Liabilities and Stockholders’ Equity; Interest Rates and Interest Differential | ||||||||||
II. | Investment Portfolio | ||||||||||
III. | Loan Portfolio | ||||||||||
Types of Loans | |||||||||||
Maturities and Sensitivities of Loans to Changes in Interest Rates | 30-31 | ||||||||||
Risk Elements |
37-42
|
||||||||||
IV. | Summary of Credit Loss Experience |
33-37
|
|||||||||
V. | Deposits |
58, 98
|
|||||||||
VI. | Return on Equity and Assets | 19 | |||||||||
VII. | Short-Term Borrowings | 99 |
Building
|
Net rentable square footage
|
% occupied in total
|
% occupied by Bank
|
||||||||
1000 Walnut
Kansas City, MO
|
391,000 | 98 | % | 52 | % | ||||||
922 Walnut
Kansas City, MO
|
256,000 | 95 | 91 | ||||||||
811 Main
Kansas City, MO
|
237,000 | 100 | 100 | ||||||||
8000 Forsyth
Clayton, MO
|
178,000 | 100 | 100 |
The information required by this item is set forth in Item 8 under Note 21, Commitments, Contingencies and Guarantees on page 133.
|
Name and Age | Positions with Registrant | ||||
Kevin G. Barth, 60 | Executive Vice President of the Company since April 2005, and Community President and Chief Executive Officer of Commerce Bank since October 1998. Senior Vice President of the Company and Officer of Commerce Bank prior thereto. | ||||
Derrick R. Brooks, 44 | Senior Vice President of the Company and Executive Vice President of Commerce Bank since January 2021. Senior Vice President of Commerce Bank prior thereto. | ||||
Jeffrey M. Burik, 62 | Senior Vice President of the Company since February 2013. Executive Vice President of Commerce Bank since November 2007. | ||||
Sara E. Foster, 60 |
Executive Vice President of the Company since February 2012 and Senior Vice President of the Company prior thereto. Executive Vice President of Commerce Bank since January 2016 and Senior Vice President of Commerce Bank prior thereto.
|
||||
John K. Handy, 57 | Executive Vice President of the Company since January 2018 and Senior Vice President of the Company prior thereto. Community President and Chief Executive Officer of Commerce Bank since January 2018 and Senior Vice President of Commerce Bank prior thereto. | ||||
Robert S. Holmes, 57 |
Executive Vice President of the Company since April 2015, and Community President and Chief Executive Officer of Commerce Bank since January 2016. Prior to his employment with Commerce Bank in March 2015, he was employed at a Midwest regional bank where he served as managing director and head of Regional Banking.
|
||||
Patricia R. Kellerhals, 63 |
Senior Vice President of the Company since February 2016 and Vice President of the Company prior thereto. Executive Vice President of Commerce Bank since 2005.
|
||||
David W. Kemper, 70 |
Executive Chairman of the Company and of the Board of Directors of the Company since August 2018. Prior thereto, he was Chief Executive Officer of the Company and Chairman of the Board of Directors of the Company. He was President of the Company from April 1982 until February 2013. He is the brother of Jonathan M. Kemper (a former Vice Chairman of the Company), and father of John W. Kemper, President and Chief Executive Officer of the Company.
|
||||
John W. Kemper, 43 | Chief Executive Officer of the Company and Chairman and Chief Executive Officer of Commerce Bank since August 2018. Prior thereto, he was Chief Operating Officer of the Company. President of the Company since February 2013 and President of Commerce Bank since March 2013. Member of Board of Directors since September 2015. He is the son of David W. Kemper (Executive Chairman of the Company) and nephew of Jonathan M. Kemper (a former Vice Chairman of the Company). | ||||
Charles G. Kim, 60 |
Chief Financial Officer of the Company since July 2009. Executive Vice President of the Company since April 1995 and Executive Vice President of Commerce Bank since January 2004. Prior thereto, he was Senior Vice President of Commerce Bank.
|
||||
Douglas D. Neff, 52 |
Senior Vice President of the Company since January 2019 and Chairman and Chief Executive Officer of Commerce Bank Southwest Region since 2013.
|
||||
David L. Orf, 54 | Executive Vice President of the Company since October 2020 and Chief Credit Officer of the Company since January 2021. Executive Vice President of Commerce Bank since January 2014 and Senior Vice President of Commerce Bank prior thereto. | ||||
Paula S. Petersen, 54 |
Senior Vice President of the Company since July 2016 and Executive Vice President of Commerce Bank since March 2012.
|
||||
David L. Roller, 50 |
Senior Vice President of the Company since July 2016 and Senior Vice President of Commerce Bank since September 2010.
|
||||
Paul A. Steiner, 49 | Controller of the Company since April 2019. He is also Controller of the Company's subsidiary bank, Commerce Bank. Assistant Controller and Director of Tax of the Company prior thereto. | ||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Commerce (CBSH) | 100.00 | 145.31 | 149.71 | 161.03 | 207.25 | 214.48 | ||||||||||||||
NASDAQ OMX Global-Bank | 100.00 | 126.54 | 149.82 | 125.25 | 171.82 | 149.83 | ||||||||||||||
S&P 500 | 100.00 | 111.92 | 136.34 | 130.35 | 171.39 | 202.81 |
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 | ||||||||||
October 1 - 31, 2020 | 773 | $59.81 | 773 | 3,549,766 | ||||||||||
November 1 - 30, 2020 | 4,650 | $69.15 | 4,650 | 3,545,116 | ||||||||||
December 1 - 31, 2020 | 537 | $65.30 | 537 | 3,544,579 | ||||||||||
Total
|
5,960 | $67.59 | 5,960 | 3,544,579 |
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||
(Based on average balances)
|
|||||||||||||||||
Return on total assets
|
1.20 | % | 1.67 | % | 1.76 | % | 1.28 | % | 1.12 | % | |||||||
Return on common equity
|
10.64 | 14.06 | 16.16 | 12.46 | 11.33 | ||||||||||||
Equity to total assets
|
11.18 | 12.20 | 11.24 | 10.53 | 10.16 | ||||||||||||
Loans to deposits (1)
|
67.73 | 71.54 | 69.27 | 66.18 | 63.71 | ||||||||||||
Non-interest bearing deposits to total deposits
|
37.83 | 32.03 | 33.43 | 34.85 | 34.67 | ||||||||||||
Net yield on interest earning assets (tax equivalent basis)
|
2.99 | 3.48 | 3.53 | 3.20 | 3.04 | ||||||||||||
(Based on end of period data) | |||||||||||||||||
Non-interest income to revenue (2)
|
37.87 | 38.98 | 37.83 | 39.88 | 41.09 | ||||||||||||
Efficiency ratio (3)
|
57.19 | 56.87 | 55.58 | 62.18 | 61.04 | ||||||||||||
Tier I common risk-based capital ratio
|
13.71 | 13.93 | 14.22 | 12.65 | 11.62 | ||||||||||||
Tier I risk-based capital ratio
|
13.71 | 14.66 | 14.98 | 13.41 | 12.38 | ||||||||||||
Total risk-based capital ratio
|
14.82 | 15.48 | 15.82 | 14.35 | 13.32 | ||||||||||||
Tier I leverage ratio
|
9.45 | 11.38 | 11.52 | 10.39 | 9.55 | ||||||||||||
Tangible common equity to tangible assets ratio (4)
|
9.92 | 10.99 | 10.45 | 9.84 | 8.66 | ||||||||||||
Common cash dividend payout ratio
|
35.32 | 27.52 | 23.61 | 29.52 | 32.69 |
(Dollars in thousands)
|
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Total equity | $ | 3,399,972 | $ | 3,138,472 | $ | 2,937,149 | $ | 2,718,184 | $ | 2,501,132 | |||||||
Less non-controlling interest | 2,925 | 3,788 | 5,851 | 1,624 | 5,349 | ||||||||||||
Less preferred stock | — | 144,784 | 144,784 | 144,784 | 144,784 | ||||||||||||
Less goodwill | 138,921 | 138,921 | 138,921 | 138,921 | 138,921 | ||||||||||||
Less intangible assets* | 4,958 | 1,785 | 2,316 | 2,965 | 3,841 | ||||||||||||
Total tangible common equity (a) | $ | 3,253,168 | $ | 2,849,194 | $ | 2,645,277 | $ | 2,429,890 | $ | 2,208,237 | |||||||
Total assets | $ | 32,922,974 | $ | 26,065,789 | $ | 25,463,842 | $ | 24,833,415 | $ | 25,641,424 | |||||||
Less goodwill | 138,921 | 138,921 | 138,921 | 138,921 | 138,921 | ||||||||||||
Less intangible assets* | 4,958 | 1,785 | 2,316 | 2,965 | 3,841 | ||||||||||||
Total tangible assets (b) | $ | 32,779,095 | $ | 25,925,083 | $ | 25,322,605 | $ | 24,691,529 | $ | 25,498,662 | |||||||
Tangible common equity to tangible assets ratio (a)/(b) | 9.92 | % | 10.99 | % | 10.45 | % | 9.84 | % | 8.66 | % |
(In thousands, except per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Net interest income | $ | 829,847 | $ | 821,293 | $ | 823,825 | $ | 733,679 | $ | 680,049 | |||||||
Provision for credit losses | 137,190 | 50,438 | 42,694 | 45,244 | 36,318 | ||||||||||||
Non-interest income | 505,867 | 524,703 | 501,341 | 461,263 | 446,556 | ||||||||||||
Investment securities gains (losses), net | 11,032 | 3,626 | (488) | 25,051 | (53) | ||||||||||||
Non-interest expense | 768,378 | 767,398 | 737,821 | 744,343 | 689,229 | ||||||||||||
Net income attributable to Commerce Bancshares, Inc.
|
354,057 | 421,231 | 433,542 | 319,383 | 275,391 | ||||||||||||
Net income available to common shareholders
|
342,091 | 412,231 | 424,542 | 310,383 | 266,391 | ||||||||||||
Net income per common share-basic* | 2.91 | 3.42 | 3.44 | 2.51 | 2.16 | ||||||||||||
Net income per common share-diluted* | 2.91 | 3.41 | 3.43 | 2.50 | 2.15 | ||||||||||||
Cash dividends on common stock | 120,818 | 113,466 | 100,238 | 91,619 | 87,070 | ||||||||||||
Cash dividends per common share* | 1.029 | .943 | .812 | .740 | .705 | ||||||||||||
Market price per common share* | 65.70 | 64.70 | 51.13 | 48.24 | 47.56 | ||||||||||||
Book value per common share* | 29.03 | 25.43 | 22.79 | 20.85 | 19.11 | ||||||||||||
Common shares outstanding* | 117,138 | 117,738 | 122,519 | 123,420 | 123,326 | ||||||||||||
Total assets | 32,922,974 | 26,065,789 | 25,463,842 | 24,833,415 | 25,641,424 | ||||||||||||
Loans, including held for sale | 16,374,730 | 14,751,626 | 14,160,992 | 14,005,072 | 13,427,192 | ||||||||||||
Investment securities | 12,645,693 | 8,741,888 | 8,698,666 | 8,893,307 | 9,770,986 | ||||||||||||
Deposits | 26,946,745 | 20,520,415 | 20,323,659 | 20,425,446 | 21,101,095 | ||||||||||||
Long-term debt | — | — | 951 | 1,758 | 102,049 | ||||||||||||
Equity | 3,399,972 | 3,138,472 | 2,937,149 | 2,718,184 | 2,501,132 | ||||||||||||
Non-performing assets | 26,633 | 10,585 | 13,949 | 12,664 | 14,649 |
$ Change | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | '20-'19 | '19-'18 | '20-'19 | '19-'18 | |||||||||||||||||||
Net interest income | $ | 829,847 | $ | 821,293 | $ | 823,825 | $ | 8,554 | $ | (2,532) | 1.0 | % | (.3 | %) | ||||||||||||
Provision for credit losses | (137,190) | (50,438) | (42,694) | 86,752 | 7,744 | 172.0 | 18.1 | |||||||||||||||||||
Non-interest income | 505,867 | 524,703 | 501,341 | (18,836) | 23,362 | (3.6) | 4.7 | |||||||||||||||||||
Investment securities gains (losses), net | 11,032 | 3,626 | (488) | 7,406 | 4,114 | N.M. | N.M. | |||||||||||||||||||
Non-interest expense | (768,378) | (767,398) | (737,821) | 980 | 29,577 | .1 | 4.0 | |||||||||||||||||||
Income taxes | (87,293) | (109,074) | (105,949) | (21,781) | 3,125 | (20.0) | 2.9 | |||||||||||||||||||
Non-controlling interest income (expense) | 172 | (1,481) | (4,672) | (1,653) | (3,191) | N.M. | (68.3) | |||||||||||||||||||
Net income attributable to Commerce
Bancshares, Inc. |
354,057 | 421,231 | 433,542 | (67,174) | (12,311) | (15.9) | (2.8) | |||||||||||||||||||
Preferred stock dividends | (11,966) | (9,000) | (9,000) | 2,966 | — | 33.0 | N.M. | |||||||||||||||||||
Net income available to common
shareholders |
$ | 342,091 | $ | 412,231 | $ | 424,542 | $ | (70,140) | $ | (12,311) | (17.0) | % | (2.9) | % |
2020 | 2019 | |||||||||||||||||||
Change due to | Change due to | |||||||||||||||||||
(In thousands)
|
Average Volume | Average Rate | Total | Average Volume | Average Rate | Total | ||||||||||||||
Interest income, fully taxable equivalent basis
|
||||||||||||||||||||
Loans:
|
||||||||||||||||||||
Business
|
$ | 48,234 | $ | (54,293) | $ | (6,059) | $ | 9,730 | $ | 7,741 | $ | 17,471 | ||||||||
Real estate- construction and land
|
2,605 | (13,688) | (11,083) | (2,961) | 3,223 | 262 | ||||||||||||||
Real estate - business
|
4,463 | (22,018) | (17,555) | 5,199 | 4,920 | 10,119 | ||||||||||||||
Real estate - personal
|
17,311 | (8,080) | 9,231 | 3,261 | 1,978 | 5,239 | ||||||||||||||
Consumer
|
1,736 | (8,054) | (6,318) | (3,541) | 6,881 | 3,340 | ||||||||||||||
Revolving home equity
|
(1,199) | (4,600) | (5,799) | (979) | 1,670 | 691 | ||||||||||||||
Consumer credit card
|
(11,772) | (3,278) | (15,050) | (475) | 1,960 | 1,485 | ||||||||||||||
Total interest on loans
|
61,378 | (114,011) | (52,633) | 10,234 | 28,373 | 38,607 | ||||||||||||||
Loans held for sale
|
(144) | (205) | (349) | (33) | (56) | (89) | ||||||||||||||
Investment securities:
|
||||||||||||||||||||
U.S. government and federal agency obligations | (1,727) | (1,872) | (3,599) | (1,667) | 915 | (752) | ||||||||||||||
Government-sponsored enterprise obligations | (2,055) | 844 | (1,211) | (2,319) | 778 | (1,541) | ||||||||||||||
State and municipal obligations | 10,728 | (6,830) | 3,898 | (5,766) | 1,261 | (4,505) | ||||||||||||||
Mortgage-backed securities | 30,634 | (44,606) | (13,972) | 10,400 | 1,720 | 12,120 | ||||||||||||||
Asset-backed securities | 2,591 | (10,310) | (7,719) | (1,953) | 5,208 | 3,255 | ||||||||||||||
Other securities | 2,855 | (749) | 2,106 | (7,684) | (6,054) | (13,738) | ||||||||||||||
Total interest on investment securities
|
43,026 | (63,523) | (20,497) | (8,989) | 3,828 | (5,161) | ||||||||||||||
Federal funds sold and short-term securities purchased
under agreements to resell |
(48) | (4) | (52) | (480) | 16 | (464) | ||||||||||||||
Long-term securities purchased under agreements to
resell
|
2,342 | 22,407 | 24,749 | 1,018 | (1,001) | 17 | ||||||||||||||
Interest earning deposits with banks
|
16,944 | (21,369) | (4,425) | (71) | 536 | 465 | ||||||||||||||
Total interest income
|
123,498 | (176,705) | (53,207) | 1,679 | 31,696 | 33,375 | ||||||||||||||
Interest expense
|
||||||||||||||||||||
Interest bearing deposits:
|
||||||||||||||||||||
Savings | 225 | (193) | 32 | 57 | (9) | 48 | ||||||||||||||
Interest checking and money market | 3,360 | (25,253) | (21,893) | (369) | 12,230 | 11,861 | ||||||||||||||
Certificates of deposit of less than $100,000 | (314) | (1,157) | (1,471) | (16) | 3,169 | 3,153 | ||||||||||||||
Certificates of deposit of $100,000 and over | (617) | (13,380) | (13,997) | 4,336 | 7,951 | 12,287 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
1,447 | (24,771) | (23,324) | 4,985 | 4,775 | 9,760 | ||||||||||||||
Other borrowings
|
1,806 | (1,729) | 77 | 920 | (13) | 907 | ||||||||||||||
Total interest expense
|
5,907 | (66,483) | (60,576) | 9,913 | 28,103 | 38,016 | ||||||||||||||
Net interest income, fully taxable equivalent basis
|
$ | 117,591 | $ | (110,222) | $ | 7,369 | $ | (8,234) | $ | 3,593 | $ | (4,641) |
% Change
|
|||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | '20-'19 | '19-'18 | ||||||||||||
Bank card transaction fees
|
$ | 151,797 | $ | 167,879 | $ | 171,576 | (9.6 | %) | (2.2 | %) | |||||||
Trust fees
|
160,637 | 155,628 | 147,964 | 3.2 | 5.2 | ||||||||||||
Deposit account charges and other fees
|
93,227 | 95,983 | 94,517 | (2.9) | 1.6 | ||||||||||||
Capital market fees
|
14,582 | 8,146 | 7,721 | 79.0 | 5.5 | ||||||||||||
Consumer brokerage services
|
15,095 | 15,804 | 15,807 | (4.5) | — | ||||||||||||
Loan fees and sales
|
26,684 | 15,767 | 12,723 | 69.2 | 23.9 | ||||||||||||
Other
|
43,845 | 65,496 | 51,033 | (33.1) | 28.3 | ||||||||||||
Total non-interest income
|
$ | 505,867 | $ | 524,703 | $ | 501,341 | (3.6 | %) | 4.7 | % | |||||||
Non-interest income as a % of total revenue*
|
37.9 | % | 39.0 | % | 37.8 | % | |||||||||||
Total revenue per full-time equivalent employee
|
$ | 280.3 | $ | 277.1 | $ | 276.4 |
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net gains (losses) on sales of available for sale debt securities | $ | 21,096 | $ | (214) | $ | (9,653) | |||||||||||
Net gains on sales and fair value adjustments of equity securities | 39 | 3,606 | 4,301 | ||||||||||||||
Adjustment for dividend income on a liquidated equity investment | — | — | (8,917) | ||||||||||||||
Net gains (losses) on sales and fair value adjustments of private equity investments | (10,103) | 367 | 13,849 | ||||||||||||||
Other | — | (133) | (68) | ||||||||||||||
Total investment securities gains (losses), net
|
$ | 11,032 | $ | 3,626 | $ | (488) |
% Change | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | '20-'19 | '19-'18 | ||||||||||||
Salaries
|
$ | 436,087 | $ | 416,869 | $ | 396,897 | 4.6 | % | 5.0 | % | |||||||
Employee benefits
|
76,900 | 76,058 | 71,297 | 1.1 | 6.7 | ||||||||||||
Net occupancy
|
46,645 | 47,157 | 46,044 | (1.1) | 2.4 | ||||||||||||
Equipment
|
18,839 | 19,061 | 18,125 | (1.2) | 5.2 | ||||||||||||
Supplies and communication
|
17,419 | 20,394 | 20,637 | (14.6) | (1.2) | ||||||||||||
Data processing and software
|
95,325 | 92,899 | 85,978 | 2.6 | 8.0 | ||||||||||||
Marketing
|
19,734 | 21,914 | 20,548 | (9.9) | 6.6 | ||||||||||||
Other
|
57,429 | 73,046 | 78,295 | (21.4) | (6.7) | ||||||||||||
Total non-interest expense
|
$ | 768,378 | $ | 767,398 | $ | 737,821 | 0.1 | % | 4.0 | % | |||||||
Efficiency ratio
|
57.2 | % | 56.9 | % | 55.6 | % | |||||||||||
Salaries and benefits as a % of total non-interest expense
|
66.8 | % | 64.2 | % | 63.5 | % | |||||||||||
Number of full-time equivalent employees
|
4,766 | 4,858 | 4,795 |
Balance at December 31 | |||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Commercial:
|
|||||||||||||||||
Business
|
$ | 6,546,087 | $ | 5,565,449 | $ | 5,106,427 | $ | 4,958,554 | $ | 4,776,365 | |||||||
Real estate — construction and land
|
1,021,595 | 899,377 | 869,659 | 968,820 | 791,236 | ||||||||||||
Real estate — business
|
3,026,117 | 2,833,554 | 2,875,788 | 2,697,452 | 2,643,374 | ||||||||||||
Personal banking:
|
|||||||||||||||||
Real estate — personal
|
2,820,030 | 2,354,760 | 2,127,083 | 2,062,787 | 2,010,397 | ||||||||||||
Consumer
|
1,950,502 | 1,964,145 | 1,955,572 | 2,104,487 | 1,990,801 | ||||||||||||
Revolving home equity
|
307,083 | 349,251 | 376,399 | 400,587 | 413,634 | ||||||||||||
Consumer credit card
|
655,078 | 764,977 | 814,134 | 783,864 | 776,465 | ||||||||||||
Overdrafts
|
3,149 | 6,304 | 15,236 | 7,123 | 10,464 | ||||||||||||
Total loans
|
$ | 16,329,641 | $ | 14,737,817 | $ | 14,140,298 | $ | 13,983,674 | $ | 13,412,736 |
Principal Payments Due | ||||||||||||||
(In thousands) |
In
One Year or Less |
After One
Year Through Five Years |
After
Five Years |
Total | ||||||||||
Business | $ | 3,034,763 | $ | 3,087,617 | $ | 423,707 | $ | 6,546,087 | ||||||
Real estate — construction and land | 571,846 | 428,940 | 20,809 | 1,021,595 | ||||||||||
Real estate — business | 696,281 | 1,789,893 | 539,943 | 3,026,117 | ||||||||||
Real estate — personal | 185,038 | 603,972 | 2,031,020 | 2,820,030 | ||||||||||
Total business and real estate loans
|
$ | 4,487,928 | $ | 5,910,422 | $ | 3,015,479 | $ | 13,413,829 | ||||||
Business and real estate loans:
|
||||||||||||||
Loans with fixed rates
|
32.0 | % | 58.6 | % | 66.1 | % | 51.4 | % | ||||||
Loans with floating rates
|
68.0 | % | 41.4 | % | 33.9 | % | 48.6 | % | ||||||
Total business and real estate loans
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(In thousands) | Fixed Rate Loans | Variable Rate Loans | Total | % Variable Rate Loans | ||||||||||
Business | $ | 3,445,886 | $ | 3,100,201 | $ | 6,546,087 | 47.4 | % | ||||||
Real estate — construction and land | 27,673 | 993,922 | 1,021,595 | 97.3 | ||||||||||
Real estate — business | 1,366,653 | 1,659,464 | 3,026,117 | 54.8 | ||||||||||
Real estate — personal
|
2,053,807 | 766,223 | 2,820,030 | 27.2 | ||||||||||
Consumer
|
1,282,923 | 667,579 | 1,950,502 | 34.2 | ||||||||||
Revolving home equity
|
3,693 | 303,390 | 307,083 | 98.8 | ||||||||||
Consumer credit card
|
33,585 | 621,493 | 655,078 | 94.9 | ||||||||||
Overdrafts
|
3,149 | — | 3,149 | — | ||||||||||
Total loans
|
$ | 8,217,369 | $ | 8,112,272 | $ | 16,329,641 | 49.7 | % |
December 31, 2019 | January 1, 2020 (Implementation) | December 31, 2020 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Allowance for Loan Losses | ALL as a % of Loans | Allowance for Credit Losses | ACL as a % of Loans | Allowance for Credit Losses | ACL as a % of Loans | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||
Business | $ | 44,268 | .80 | % | $ | 37,940 | .68 | % | $ | 63,660 | .97 | % | |||||||||||||||||||||||
RE - construction and land | 21,589 | 2.40 | 9,204 | 1.02 | 27,836 | 2.72 | |||||||||||||||||||||||||||||
RE - business | 25,903 | .91 | 14,905 | .53 | 30,053 | .99 | |||||||||||||||||||||||||||||
91,760 | .99 | 62,049 | .67 | 121,549 | 1.15 | ||||||||||||||||||||||||||||||
Personal Banking: | |||||||||||||||||||||||||||||||||||
RE - personal | 3,125 | .13 | 4,855 | .21 | 8,304 | .29 | |||||||||||||||||||||||||||||
Consumer | 15,932 | .81 | 14,518 | .74 | 15,244 | .78 | |||||||||||||||||||||||||||||
Revolving home equity | 638 | .18 | 1,624 | .46 | 1,475 | .48 | |||||||||||||||||||||||||||||
Consumer credit card | 47,997 | 6.27 | 56,495 | 7.39 | 74,001 | 11.30 | |||||||||||||||||||||||||||||
Overdrafts | 1,230 | 19.51 | 102 | 1.62 | 261 | 8.29 | |||||||||||||||||||||||||||||
68,922 | 1.27 | 77,594 | 1.43 | 99,285 | 1.73 | ||||||||||||||||||||||||||||||
Total | $ | 160,682 | 1.09 | % | $ | 139,643 | .95 | % | $ | 220,834 | 1.35 | % |
Years Ended December 31 | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Loans outstanding at end of year(A)
|
$ | 16,329,641 | $ | 14,737,817 | $ | 14,140,298 | $ | 13,983,674 | $ | 13,412,736 | |||||||
Average loans outstanding(A)
|
$ | 15,896,848 | $ | 14,224,637 | $ | 13,926,079 | $ | 13,611,699 | $ | 12,927,778 | |||||||
Allowance for credit losses:
|
|||||||||||||||||
Balance at end of prior year | $ | 160,682 | $ | 159,932 | $ | 159,532 | $ | 155,932 | $ | 151,532 | |||||||
Adoption of ASU 2016-13 | (21,039) | — | — | — | — | ||||||||||||
Balance at beginning of year | 139,643 | 159,932 | 159,532 | 155,932 | 151,532 | ||||||||||||
Provision for credit losses on loans | 116,049 | 50,438 | 42,694 | 45,244 | 36,318 | ||||||||||||
Loans charged off: | |||||||||||||||||
Business | 7,862 | 4,622 | 3,144 | 2,410 | 2,549 | ||||||||||||
Real estate — construction and land | — | 7 | — | 1 | 515 | ||||||||||||
Real estate — business | — | 82 | 20 | 127 | 194 | ||||||||||||
Real estate — personal | 42 | 294 | 176 | 417 | 556 | ||||||||||||
Consumer | 7,769 | 12,048 | 12,897 | 13,415 | 12,711 | ||||||||||||
Revolving home equity | 79 | 487 | 357 | 488 | 860 | ||||||||||||
Consumer credit card | 32,541 | 42,254 | 36,931 | 36,114 | 31,616 | ||||||||||||
Overdrafts | 1,754 | 2,086 | 2,296 | 2,207 | 1,977 | ||||||||||||
Total loans charged off | 50,047 | 61,880 | 55,821 | 55,179 | 50,978 | ||||||||||||
Recoveries of loans previously charged off: | |||||||||||||||||
Business | 4,197 | 520 | 1,042 | 1,032 | 1,933 | ||||||||||||
Real estate — construction and land | 3 | 124 | 635 | 1,192 | 4,227 | ||||||||||||
Real estate — business | 47 | 142 | 398 | 330 | 1,475 | ||||||||||||
Real estate — personal | 333 | 238 | 511 | 722 | 562 | ||||||||||||
Consumer | 3,325 | 3,494 | 3,611 | 3,436 | 3,664 | ||||||||||||
Revolving home equity | 245 | 278 | 302 | 303 | 375 | ||||||||||||
Consumer credit card | 6,562 | 6,833 | 6,353 | 5,861 | 6,186 | ||||||||||||
Overdrafts | 477 | 563 | 675 | 659 | 638 | ||||||||||||
Total recoveries
|
15,189 | 12,192 | 13,527 | 13,535 | 19,060 | ||||||||||||
Net loans charged off | 34,858 | 49,688 | 42,294 | 41,644 | 31,918 | ||||||||||||
Balance at end of year | $ | 220,834 | $ | 160,682 | $ | 159,932 | $ | 159,532 | $ | 155,932 | |||||||
Ratio of allowance to loans at end of year
|
1.35 | % | 1.09 | % | 1.13 | % | 1.14 | % | 1.16 | % | |||||||
Ratio of provision to average loans outstanding
|
.73 | % | .35 | % | .31 | % | .33 | % | 0.28 | % |
Years Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||
Ratio of net charge-offs (recoveries) to average loans outstanding, by loan category:
|
|||||||||||||||||
Business | .06 | % | .08 | % | .04 | % | .03 | % | .01 | % | |||||||
Real estate — construction and land | — | (.01) | (.07) | (.14) | (.48) | ||||||||||||
Real estate — business | — | — | (.01) | (.01) | (.05) | ||||||||||||
Real estate — personal | (.01) | — | (.02) | (.02) | — | ||||||||||||
Consumer | .23 | .44 | .46 | .49 | .46 | ||||||||||||
Revolving home equity | (.05) | .06 | .01 | .05 | .12 | ||||||||||||
Consumer credit card | 3.88 | 4.63 | 3.98 | 4.07 | 3.39 | ||||||||||||
Overdrafts | 38.11 | 16.55 | 33.93 | 33.71 | 28.42 | ||||||||||||
Ratio of total net charge-offs to total average loans outstanding
|
.22 | % | .35 | % | .30 | % | .31 | % | .25 | % |
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
|
Credit Loss Allowance Allocation | % of Loans to Total Loans | Credit Loss Allowance Allocation | % of Loans to Total Loans | Credit Loss Allowance Allocation | % of Loans to Total Loans | Credit Loss Allowance Allocation | % of Loans to Total Loans | Credit Loss Allowance Allocation | % of Loans to Total Loans | ||||||||||||||||||||||
Business | $ | 63,660 | 40.1 | % | $ | 44,268 | 37.8 | % | $ | 42,890 | 36.1 | % | $ | 44,462 | 35.4 | % | $ | 43,910 | 35.6 | % | ||||||||||||
RE — construction and land
|
27,836 | 6.3 | 21,589 | 6.1 | 22,515 | 6.2 | 24,432 | 6.9 | 21,841 | 5.9 | ||||||||||||||||||||||
RE — business | 30,053 | 18.5 | 25,903 | 19.2 | 27,717 | 20.3 | 24,810 | 19.3 | 25,610 | 19.7 | ||||||||||||||||||||||
RE — personal | 8,304 | 17.3 | 3,125 | 16.0 | 3,250 | 15.0 | 4,201 | 14.8 | 4,110 | 15.0 | ||||||||||||||||||||||
Consumer | 15,244 | 11.9 | 15,932 | 13.3 | 18,007 | 13.8 | 19,509 | 15.0 | 18,935 | 14.8 | ||||||||||||||||||||||
Revolving home equity | 1,475 | 1.9 | 638 | 2.4 | 825 | 2.7 | 1,189 | 2.9 | 1,164 | 3.1 | ||||||||||||||||||||||
Consumer credit card | 74,001 | 4.0 | 47,997 | 5.2 | 43,755 | 5.8 | 40,052 | 5.6 | 39,530 | 5.8 | ||||||||||||||||||||||
Overdrafts | 261 | — | 1,230 | — | 973 | .1 | 877 | .1 | 832 | .1 | ||||||||||||||||||||||
Total | $ | 220,834 | 100.0 | % | $ | 160,682 | 100.0 | % | $ | 159,932 | 100.0 | % | $ | 159,532 | 100.0 | % | $ | 155,932 | 100.0 | % |
December 31 | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Total non-accrual loans
|
$ | 26,540 | $ | 10,220 | $ | 12,536 | $ | 11,983 | $ | 14,283 | |||||||
Real estate acquired in foreclosure
|
93 | 365 | 1,413 | 681 | 366 | ||||||||||||
Total non-performing assets | $ | 26,633 | $ | 10,585 | $ | 13,949 | $ | 12,664 | $ | 14,649 | |||||||
Non-performing assets as a percentage of total loans
|
.16 | % | .07 | % | .10 | % | .09 | % | .11 | % | |||||||
Non-performing assets as a percentage of total assets
|
.08 | % | .04 | % | .05 | % | .05 | % | .06 | % | |||||||
Loans past due 90 days and still accruing interest
|
$ | 22,190 | $ | 19,859 | $ | 16,658 | $ | 18,127 | $ | 16,396 |
(In thousands) | |||||
Gross amount of interest that would have been recorded at original rate
|
$ | 1,820 | |||
Interest that was reflected in income
|
522 | ||||
Interest income not recognized
|
$ | 1,298 |
December 31 | ||||||||
(In thousands)
|
2020 | 2019 | ||||||
Potential problem loans: | ||||||||
Business | $ | 133,039 | $ | 83,943 | ||||
Real estate – construction and land | 29,378 | 470 | ||||||
Real estate – business | 198,666 | 80,071 | ||||||
Real estate – personal | 670 | 283 | ||||||
Total potential problem loans | $ | 361,753 | $ | 164,767 |
(Dollars in thousands)
|
December 31, 2020 | % of Total | % of Total Loans | December 31, 2019 | % of Total | % of Total Loans | ||||||||||||||
Commercial construction | $ | 827,546 | 81.0 | % | 5.1 | % | $ | 670,590 | 74.6 | % | 4.6 | % | ||||||||
Residential construction | 94,729 | 9.3 | .6 | 128,575 | 14.3 | .9 | ||||||||||||||
Residential land
and land development |
59,299 | 5.8 | .4 | 65,687 | 7.3 | .4 | ||||||||||||||
Commercial land
and land development |
40,021 | 3.9 | .2 | 34,525 | 3.8 | .2 | ||||||||||||||
Total real estate – construction and land loans
|
$ | 1,021,595 | 100.0 | % | 6.3 | % | $ | 899,377 | 100.0 | % | 6.1 | % |
(Dollars in thousands)
|
December 31, 2020 | % of Total | % of Total Loans | December 31, 2019 | % of Total | % of Total Loans | ||||||||||||||
Owner-occupied | $ | 1,145,862 | 37.9 | % | 7.0 | % | $ | 1,048,716 | 37.0 | % | 7.1 | % | ||||||||
Office | 385,392 | 12.7 | 2.4 | 297,278 | 10.5 | 2.0 | ||||||||||||||
Retail | 349,461 | 11.5 | 2.1 | 383,234 | 13.5 | 2.6 | ||||||||||||||
Multi-family | 301,161 | 10.0 | 1.8 | 306,577 | 10.8 | 2.1 | ||||||||||||||
Hotels | 271,189 | 9.0 | 1.7 | 210,557 | 7.4 | 1.4 | ||||||||||||||
Senior living | 195,800 | 6.5 | 1.2 | 164,000 | 5.8 | 1.1 | ||||||||||||||
Farm | 169,692 | 5.6 | 1.0 | 177,669 | 6.3 | 1.2 | ||||||||||||||
Industrial | 78,341 | 2.6 | .5 | 108,285 | 3.8 | .7 | ||||||||||||||
Other | 129,219 | 4.2 | .8 | 137,238 | 4.9 | 1.0 | ||||||||||||||
Total real estate - business loans | $ | 3,026,117 | 100.0 | % | 18.5 | % | $ | 2,833,554 | 100.0 | % | 19.2 | % |
(Dollars in thousands)
|
Principal Outstanding at December 31, 2020 | * | New Lines Originated During 2020 | * | Unused Portion of Available Lines at December 31, 2020 | * | Balances Over 30 Days Past Due | * | ||||||||||||||||||
Loans with interest-only payments | $ | 286,126 | 93.2 | % | $154,032 | 50.2 | % | $752,180 | 244.9 | % | $1,046 | .3 | % | |||||||||||||
Loans with LTV:
|
||||||||||||||||||||||||||
Between 80% and 90% | 29,318 | 9.5 | 20,707 | 6.7 | 47,588 | 15.5 | 403 | .1 | ||||||||||||||||||
Over 90% | 2,784 | 1.0 | 1,834 | .6 | 2,895 | 0.9 | — | — | ||||||||||||||||||
Over 80% LTV | 32,102 | 10.5 | 22,541 | 7.3 | 50,483 | 16.4 | 403 | .1 | ||||||||||||||||||
Total loan portfolio from which above loans were identified
|
307,083 | 161,260 | 773,462 |
(Dollars in thousands)
|
Principal Outstanding at December 31, 2019 |
* |
New Lines Originated During 2019 | * | Unused Portion of Available Lines at December 31, 2019 | * | Balances Over 30 Days Past Due | * | ||||||||||||||||||
Loans with interest-only payments
|
$ | 321,126 | 91.9 | % | $173,969 | 49.8 | % | $725,187 | 207.6 | % | $1,422 | .4 | % | |||||||||||||
Loans with LTV:
|
||||||||||||||||||||||||||
Between 80% and 90%
|
37,347 | 10.7 | 22,603 | 6.5 | 43,313 | 12.4 | 213 | .1 | ||||||||||||||||||
Over 90%
|
3,775 | 1.1 | 1,643 | .4 | 4,969 | 1.4 | 23 | — | ||||||||||||||||||
Over 80% LTV
|
41,122 | 11.8 | 24,246 | 6.9 | 48,282 | 13.8 | 236 | .1 | ||||||||||||||||||
Total loan portfolio from which above loans were identified
|
349,251 | 184,085 | 751,283 |
(In thousands)
|
December 31, 2020 | December 31, 2019 |
Unfunded commitments at December 31, 2020
|
|||||||||||
Extraction | $ | 133,866 | $ | 177,903 | $ | 43,507 | ||||||||
Downstream distribution and refining | 18,365 | 7,168 | 24,263 | |||||||||||
Mid-stream shipping and storage | 15,634 | 4,763 | 81,851 | |||||||||||
Support activities | 10,864 | 7,598 | 11,907 | |||||||||||
Total energy lending portfolio | $ | 178,729 | $ | 197,432 | $ | 161,528 |
(Dollars in thousands) | December 31, 2020 | % of Energy Lending | December 31, 2019 | % of Energy Lending | ||||||||||
Pass | $ | 126,380 | 70.7 | % | $ | 170,938 | 86.6 | % | ||||||
Special mention | 17,978 | 10.1 | 6,961 | 3.5 | ||||||||||
Substandard | 31,676 | 17.7 | 16,600 | 8.4 | ||||||||||
Non-accrual | 2,695 | 1.5 | 2,933 | 1.5 | ||||||||||
Total | $ | 178,729 | 100.0 | % | $ | 197,432 | 100.0 | % |
(In thousands) | December 31, 2020 | % of Loan Portfolio at December 31, 2020 | December 31, 2019 | Unfunded commitments at December 31, 2020 | ||||||||||
Hospitals | $ | 729,184 | 4.9 | % | $ | 678,466 | $ | 1,723,537 | ||||||
Multifamily and student housing | 550,345 | 3.7 | 528,280 | 301,464 | ||||||||||
Commercial real estate - retail | 386,939 | 2.6 | 405,795 | 18,148 | ||||||||||
Senior living | 310,771 | 2.1 | 301,441 | 81,866 | ||||||||||
Hotels | 302,606 | 2.0 | 256,512 | 31,892 | ||||||||||
Energy | 172,533 | 1.1 | 198,162 | 161,528 | ||||||||||
Retail stores | 111,126 | .7 | 147,223 | 176,298 | ||||||||||
Restaurants | 67,247 | .4 | 82,398 | 21,807 | ||||||||||
Total | $ | 2,630,751 | 17.5 | % | $ | 2,598,277 | $ | 2,516,540 |
(Dollars in thousands) |
Number of Payment Deferral Requests (1)
|
Loan Balance Outstanding at December 31, 2020 | % of Loan Class - based on December 31, 2020 Loan Balance | ||||||||
Commercial (2)
|
8 | $ | 56,597 | .5 | % | ||||||
Real estate - personal | 86 | $ | 18,098 | .6 | % | ||||||
Consumer credit card | 93 | $ | 610 | .1 | % | ||||||
Consumer | 609 | $ | 8,414 | .4 | % | ||||||
Total | 796 | $ | 83,719 | .5 | % |
(Dollars in thousands) | Number of Payment Deferral Requests | Loan Balance Outstanding at December 31, 2020 | ||||||
Credit intermediation | 1 | $ | 40,789 | |||||
Nursing and residential care facilities | 1 | 15,130 | ||||||
Building materials | 1 | 309 | ||||||
Real estate developer/owner | 2 | 301 | ||||||
Animal production | 1 | 31 | ||||||
Social assistance | 1 | 21 | ||||||
Restaurants and dining | 1 | 16 | ||||||
Total (1)
|
8 | $ | 56,597 |
December 31 | ||||||||
(In thousands) | 2020 | 2019 | ||||||
Amortized Cost
|
||||||||
U.S. government and federal agency obligations | $ | 775,592 | $ | 827,861 | ||||
Government-sponsored enterprise obligations | 50,803 | 138,734 | ||||||
State and municipal obligations | 1,968,006 | 1,225,532 | ||||||
Agency mortgage-backed securities | 6,557,098 | 3,893,247 | ||||||
Non-agency mortgage-backed securities | 358,074 | 796,451 | ||||||
Asset-backed securities | 1,853,791 | 1,228,151 | ||||||
Other debt securities | 534,169 | 325,555 | ||||||
Total available for sale debt securities
|
$ | 12,097,533 | $ | 8,435,531 | ||||
Fair Value
|
||||||||
U.S. government and federal agency obligations | $ | 838,059 | $ | 851,776 | ||||
Government-sponsored enterprise obligations | 54,485 | 139,277 | ||||||
State and municipal obligations | 2,045,099 | 1,267,927 | ||||||
Agency mortgage-backed securities | 6,712,085 | 3,937,964 | ||||||
Non-agency mortgage-backed securities | 361,074 | 809,782 | ||||||
Asset-backed securities | 1,882,243 | 1,233,489 | ||||||
Other debt securities | 556,219 | 331,411 | ||||||
Total available for sale debt securities
|
$ | 12,449,264 | $ | 8,571,626 |
December 31, 2020 | ||||||||||||||
|
Percent of Total Debt Securities
|
Weighted Average Yield
|
Estimated Average Maturity*
|
|||||||||||
Available for sale debt securities: | ||||||||||||||
U.S. government and federal agency obligations | 6.7 | % | 1.66 | % | 3.5 | years | ||||||||
Government-sponsored enterprise obligations | 0.4 | 2.32 | 10.3 | |||||||||||
State and municipal obligations | 16.5 | 2.06 | 6.4 | |||||||||||
Agency mortgage-backed securities | 53.9 | 2.00 | 4.1 | |||||||||||
Non-agency mortgage-backed securities | 2.9 | 2.39 | 2.9 | |||||||||||
Asset-backed securities | 15.1 | 1.53 | 2.7 | |||||||||||
Other debt securities | 4.5 | 2.21 | 5.6 |
December 31 | ||||||||
(In thousands) | 2020 | 2019 | ||||||
Federal Reserve Bank stock
|
$ | 34,070 | $ | 33,770 | ||||
Federal Home Loan Bank stock
|
10,307 | 10,000 | ||||||
Equity method investments | 18,000 | — | ||||||
Private equity investments in debt securities
|
43,609 | 44,635 | ||||||
Private equity investments in equity securities
|
50,759 | 49,487 | ||||||
Total other securities
|
$ | 156,745 | $ | 137,892 |
December 31 | ||||||||
2020 | 2019 | |||||||
Non-interest bearing
|
38.9 | % | 33.6 | % | ||||
Savings, interest checking and money market
|
54.2 | 56.6 | ||||||
Certificates of deposit of less than $100,000
|
2.0 | 3.1 | ||||||
Certificates of deposit of $100,000 and over
|
4.9 | 6.7 | ||||||
Total deposits
|
100.0 | % | 100.0 | % |
(In thousands) | 2020 | 2019 | ||||||
Available for sale debt securities
|
$ | 12,449,264 | $ | 8,571,626 | ||||
Long-term securities purchased under agreements to resell
|
850,000 | 850,000 | ||||||
Balances at the Federal Reserve Bank
|
1,747,363 | 395,850 | ||||||
Total | $ | 15,046,627 | $ | 9,817,476 |
(In thousands) | 2020 | 2019 | ||||||
Investment securities pledged for the purpose of securing: | ||||||||
Federal Reserve Bank borrowings | $ | 40,792 | $ | 48,304 | ||||
FHLB borrowings and letters of credit | 5,376 | 7,637 | ||||||
Repurchase agreements * | 2,322,941 | 2,083,716 | ||||||
Other deposits | 2,438,628 | 2,149,575 | ||||||
Total pledged securities | 4,807,737 | 4,289,232 | ||||||
Unpledged and available for pledging | 6,310,907 | 3,029,268 | ||||||
Ineligible for pledging | 1,330,620 | 1,253,126 | ||||||
Total available for sale debt securities, at fair value
|
$ | 12,449,264 | $ | 8,571,626 |
(In thousands) | 2020 | 2019 | ||||||
Core deposit base: | ||||||||
Non-interest bearing | $ | 10,497,598 | $ | 6,890,687 | ||||
Interest checking | 2,402,272 | 2,130,591 | ||||||
Savings and money market | 12,202,184 | 9,491,125 | ||||||
Total | $ | 25,102,054 | $ | 18,512,403 |
(In thousands) | 2020 | 2019 | ||||||
Borrowings:
|
||||||||
Federal funds purchased | $ | 42,270 | $ | 20,035 | ||||
Securities sold under agreements to repurchase | 2,056,113 | 1,830,737 | ||||||
Other debt | 802 | 2,418 | ||||||
Total | $ | 2,099,185 | $ | 1,853,190 |
December 31, 2020 | |||||||||||
(In thousands)
|
FHLB
|
Federal Reserve |
Total
|
||||||||
Total collateral value pledged | $ | 2,343,020 | $ | 1,163,354 | $ | 3,506,374 | |||||
Letters of credit issued | (325,490) | — | (325,490) | ||||||||
Available for future advances | $ | 2,017,530 | $ | 1,163,354 | $ | 3,180,884 |
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 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Purchases of treasury stock
|
$ | 54.2 | $ | 134.9 | $ | 75.2 | |||||
Accelerated share repurchase agreements
|
— | 150.0 | — | ||||||||
Common cash dividends paid
|
120.8 | 113.5 | 100.2 | ||||||||
Preferred stock redemption*
|
150.0 | — | — | ||||||||
Preferred cash dividends paid
|
6.8 | 9.0 | 9.0 | ||||||||
Cash used
|
$ | 331.8 | $ | 407.4 | $ | 184.4 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Dividends received from subsidiaries
|
$ | 210.0 | $ | 500.0 | $ | 200.0 | |||||
Management fees
|
33.5 | 36.8 | 37.7 | ||||||||
Total
|
$ | 243.5 | $ | 536.8 | $ | 237.7 |
(Dollars in thousands)
|
2020 | 2019 | Minimum Ratios under Capital Adequacy Guidelines | Minimum Ratios for Well-Capitalized Banks* | ||||||||||
Risk-adjusted assets | $ | 21,516,461 | $ | 19,713,813 | ||||||||||
Tier I common risk-based capital | 2,950,926 | 2,745,538 | ||||||||||||
Tier I risk-based capital | 2,950,926 | 2,890,322 | ||||||||||||
Total risk-based capital | 3,189,432 | 3,052,079 | ||||||||||||
Tier I common risk-based capital ratio | 13.71 | % | 13.93 | % | 7.00 | % | 6.50 | % | ||||||
Tier I risk-based capital ratio | 13.71 | 14.66 | 8.50 | 8.00 | ||||||||||
Total risk-based capital ratio | 14.82 | 15.48 | 10.50 | 10.00 | ||||||||||
Tier I leverage ratio | 9.45 | 11.38 | 4.00 | 5.00 | ||||||||||
Tangible common equity to tangible assets | 9.92 | 10.99 | ||||||||||||
Dividend payout ratio | 35.32 | 27.52 |
Payments Due by Period | ||||||||||||||||||||
(In thousands) | In One Year or Less | After One Year Through Three Years | After Three Years Through Five Years | After Five Years | Total | |||||||||||||||
Operating lease obligations* | $ | 6,406 | $ | 10,737 | $ | 6,206 | $ | 15,538 | $ | 38,887 | ||||||||||
Purchase obligations | 263,553 | 390,802 | 69,117 | 74,734 | 798,206 | |||||||||||||||
Certificates of Deposit** | 1,627,852 | 193,342 | 23,440 | 57 | 1,844,691 | |||||||||||||||
Total | $ | 1,897,811 | $ | 594,881 | $ | 98,763 | $ | 90,329 | $ | 2,681,784 |
Simulation A | December 31, 2020 | September 30, 2020 | |||||||||||||||||||||||||||
(Dollars in millions)
|
$ Change in
Net Interest
Income
|
% Change in
Net Interest
Income
|
Assumed Deposit Attrition
|
$ Change in
Net Interest
Income
|
% Change in
Net Interest
Income
|
Assumed Deposit Attrition
|
|||||||||||||||||||||||
300 basis points rising | $ | 85.4 | 11.47 | % | $ | (560.6) | $ | 53.8 | 7.03 | % | $ | (513.5) | |||||||||||||||||
200 basis points rising | 69.5 | 9.33 | (392.5) | 47.3 | 6.18 | (360.4) | |||||||||||||||||||||||
100 basis points rising | 38.9 | 5.23 | (204.7) | 29.3 | 3.83 | (188.4) | |||||||||||||||||||||||
Simulation B | December 31, 2020 | September 30, 2020 | |||||||||||||||||||||||||||
(Dollars in millions)
|
$ Change in
Net Interest
Income
|
% Change in
Net Interest
Income
|
Assumed Deposit Attrition
|
$ Change in
Net Interest
Income
|
% Change in
Net Interest
Income
|
Assumed Deposit Attrition
|
|||||||||||||||||||||||
300 basis points rising | $ | 57.5 | 7.73 | % | $ | (1,940.3) | $ | 39.4 | 5.15 | % | $ | (1,214.8) | |||||||||||||||||
200 basis points rising | 45.3 | 6.09 | (1,782.8) | 34.6 | 4.53 | (1,069.6) | |||||||||||||||||||||||
100 basis points rising | 18.9 | 2.54 | (1,614.7) | 18.6 | 2.44 | (911.8) |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
(In thousands) | Notional Amount | Positive Fair Value | Negative Fair Value | Notional Amount | Positive Fair Value | Negative Fair Value | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 2,367,017 | $ | 86,389 | $ | (17,199) | $ | 2,606,181 | $ | 37,774 | $ | (9,916) | |||||||||||||||||||||||
Interest rate floors | — | — | — | 1,500,000 | 67,192 | — | |||||||||||||||||||||||||||||
Interest rate caps | 103,028 | 1 | (1) | 59,316 | 4 | (4) | |||||||||||||||||||||||||||||
Credit risk participation agreements | 381,170 | 216 | (701) | 316,225 | 140 | (230) | |||||||||||||||||||||||||||||
Foreign exchange contracts | 7,431 | 57 | (103) | 10,936 | 97 | (32) | |||||||||||||||||||||||||||||
Mortgage loan commitments | 67,543 | 3,226 | — | 13,755 | 459 | — | |||||||||||||||||||||||||||||
Mortgage loan forward sale contracts | — | — | — | 1,943 | 6 | (2) | |||||||||||||||||||||||||||||
Forward TBA contracts | 89,000 | — | (671) | 17,500 | 2 | (35) | |||||||||||||||||||||||||||||
Total at December 31
|
$ | 3,015,189 | $ | 89,889 | $ | (18,675) | $ | 4,525,856 | $ | 105,674 | $ | (10,219) |
(Dollars in thousands)
|
Consumer
|
Commercial
|
Wealth
|
Segment Totals
|
Other/Elimination
|
Consolidated Totals
|
||||||||||||||
Year ended December 31, 2020: | ||||||||||||||||||||
Net interest income
|
$ | 321,040 | $ | 414,724 | $ | 57,925 | $ | 793,689 | $ | 36,158 | $ | 829,847 | ||||||||
Provision for credit losses
|
(31,220) | (3,724) | 12 | (34,932) | (102,258) | (137,190) | ||||||||||||||
Non-interest income
|
148,568 | 194,517 | 188,948 | 532,033 | (26,166) | 505,867 | ||||||||||||||
Investment securities gains, net
|
— | — | — | — | 11,032 | 11,032 | ||||||||||||||
Non-interest expense
|
(297,724) | (316,074) | (124,964) | (738,762) | (29,616) | (768,378) | ||||||||||||||
Income before income taxes
|
$ | 140,664 | $ | 289,443 | $ | 121,921 | $ | 552,028 | $ | (110,850) | $ | 441,178 | ||||||||
Year ended December 31, 2019: | ||||||||||||||||||||
Net interest income
|
$ | 315,782 | $ | 343,233 | $ | 47,863 | $ | 706,878 | $ | 114,415 | $ | 821,293 | ||||||||
Provision for loan losses
|
(44,987) | (4,204) | (174) | (49,365) | (1,073) | (50,438) | ||||||||||||||
Non-interest income
|
135,257 | 203,952 | 180,836 | 520,045 | 4,658 | 524,703 | ||||||||||||||
Investment securities gains, net
|
— | — | — | — | 3,626 | 3,626 | ||||||||||||||
Non-interest expense
|
(297,398) | (309,163) | (122,784) | (729,345) | (38,053) | (767,398) | ||||||||||||||
Income before income taxes
|
$ | 108,654 | $ | 233,818 | $ | 105,741 | $ | 448,213 | $ | 83,573 | $ | 531,786 | ||||||||
2020 vs 2019 | ||||||||||||||||||||
Increase (decrease) in income before income taxes: | ||||||||||||||||||||
Amount | $ | 32,010 | $ | 55,625 | $ | 16,180 | $ | 103,815 | $ | (194,423) | $ | (90,608) | ||||||||
Percent | 29.5 | % | 23.8 | % | 15.3 | % | 23.2 | % | N.M. | (17.0 | %) | |||||||||
Year ended December 31, 2018: | ||||||||||||||||||||
Net interest income
|
$ | 294,798 | $ | 344,972 | $ | 46,990 | $ | 686,760 | $ | 137,065 | $ | 823,825 | ||||||||
Provision for loan losses
|
(40,571) | (1,134) | 32 | (41,673) | (1,021) | (42,694) | ||||||||||||||
Non-interest income
|
126,253 | 202,527 | 169,844 | 498,624 | 2,717 | 501,341 | ||||||||||||||
Investment securities losses, net
|
— | — | — | — | (488) | (488) | ||||||||||||||
Non-interest expense
|
(286,181) | (297,847) | (122,247) | (706,275) | (31,546) | (737,821) | ||||||||||||||
Income before income taxes
|
$ | 94,299 | $ | 248,518 | $ | 94,619 | $ | 437,436 | $ | 106,727 | $ | 544,163 | ||||||||
2019 vs 2018 | ||||||||||||||||||||
Increase (decrease) in income before income taxes: | ||||||||||||||||||||
Amount | $ | 14,355 | $ | (14,700) | $ | 11,122 | $ | 10,777 | $ | (23,154) | $ | (12,377) | ||||||||
Percent | 15.2 | % | (5.9 | %) | 11.8 | % | 2.5 | % | (21.7 | %) | (2.3 | %) |
Years Ended December 31 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
Income/ Expense |
Average
Rates Earned/Paid |
Average
Balance |
Interest
Income/ Expense |
Average
Rates Earned/Paid |
Average
Balance |
Interest
Income/ Expense |
Average
Rates Earned/Paid |
||||||||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||||||||||||||||
Loans:(A)
|
|||||||||||||||||||||||||||||||||||
Business(B)
|
$ | 6,387,410 | $ | 196,249 | 3.07 | % | $ | 5,214,158 | $ | 202,308 | 3.88 | % | $ | 4,963,029 | $ | 184,837 | 3.72 | % | |||||||||||||||||
Real estate – construction and land
|
956,999 | 38,619 | 4.04 | 909,367 | 49,702 | 5.47 | 967,320 | 49,440 | 5.11 | ||||||||||||||||||||||||||
Real estate – business
|
2,959,068 | 110,080 | 3.72 | 2,859,008 | 127,635 | 4.46 | 2,737,820 | 117,516 | 4.29 | ||||||||||||||||||||||||||
Real estate – personal
|
2,619,211 | 94,835 | 3.62 | 2,178,716 | 85,604 | 3.93 | 2,093,802 | 80,365 | 3.84 | ||||||||||||||||||||||||||
Consumer
|
1,967,133 | 86,096 | 4.38 | 1,930,883 | 92,414 | 4.79 | 2,010,826 | 89,074 | 4.43 | ||||||||||||||||||||||||||
Revolving home equity
|
334,866 | 12,405 | 3.70 | 358,474 | 18,204 | 5.08 | 379,715 | 17,513 | 4.61 | ||||||||||||||||||||||||||
Consumer credit card
|
668,810 | 78,704 | 11.77 | 764,828 | 93,754 | 12.26 | 768,789 | 92,269 | 12.00 | ||||||||||||||||||||||||||
Overdrafts
|
3,351 | — | — | 9,203 | — | — | 4,778 | — | — | ||||||||||||||||||||||||||
Total loans
|
15,896,848 | 616,988 | 3.88 | 14,224,637 | 669,621 | 4.71 | 13,926,079 | 631,014 | 4.53 | ||||||||||||||||||||||||||
Loans held for sale
|
18,685 | 860 | 4.60 | 18,577 | 1,209 | 6.51 | 19,493 | 1,298 | 6.66 | ||||||||||||||||||||||||||
Investment securities:
|
|||||||||||||||||||||||||||||||||||
U.S. government & federal agency obligations
|
780,903 | 17,369 | 2.22 | 851,124 | 20,968 | 2.46 | 921,759 | 21,720 | 2.36 | ||||||||||||||||||||||||||
Government-sponsored enterprise obligations
|
105,069 | 3,346 | 3.18 | 191,406 | 4,557 | 2.38 | 308,520 | 6,098 | 1.98 | ||||||||||||||||||||||||||
State & municipal obligations(B)
|
1,562,415 | 42,260 | 2.70 | 1,220,958 | 38,362 | 3.14 | 1,410,700 | 42,867 | 3.04 | ||||||||||||||||||||||||||
Mortgage-backed securities
|
5,733,398 | 109,834 | 1.92 | 4,594,576 | 123,806 | 2.69 | 4,203,625 | 111,686 | 2.66 | ||||||||||||||||||||||||||
Asset-backed securities
|
1,467,496 | 29,759 | 2.03 | 1,372,574 | 37,478 | 2.73 | 1,455,690 | 34,223 | 2.35 | ||||||||||||||||||||||||||
Other debt securities
|
444,489 | 10,846 | 2.44 | 333,105 | 9,017 | 2.71 | 340,458 | 8,912 | 2.62 | ||||||||||||||||||||||||||
Trading debt securities(B)
|
30,321 | 659 | 2.17 | 29,450 | 886 | 3.01 | 24,731 | 759 | 3.07 | ||||||||||||||||||||||||||
Equity securities(B)
|
4,206 | 2,030 | 48.26 | 4,547 | 1,792 | 39.41 | 26,459 | 11,816 | 44.66 | ||||||||||||||||||||||||||
Other securities(B)
|
133,391 | 8,732 | 6.55 | 134,255 | 8,466 | 6.31 | 114,438 | 12,412 | 10.85 | ||||||||||||||||||||||||||
Total investment securities
|
10,261,688 | 224,835 | 2.19 | 8,731,995 | 245,332 | 2.81 | 8,806,380 | 250,493 | 2.84 | ||||||||||||||||||||||||||
Federal funds sold and short-term securities purchased under agreements to resell
|
278 | 3 | 1.08 | 2,034 | 55 | 2.70 | 27,026 | 519 | 1.92 | ||||||||||||||||||||||||||
Long-term securities purchased under agreements to resell
|
849,998 | 40,647 | 4.78 | 741,089 | 15,898 | 2.15 | 696,438 | 15,881 | 2.28 | ||||||||||||||||||||||||||
Interest earning deposits with banks
|
1,115,551 | 2,273 | .20 | 316,299 | 6,698 | 2.12 | 319,948 | 6,233 | 1.95 | ||||||||||||||||||||||||||
Total interest earning assets
|
28,143,048 | 885,606 | 3.15 | 24,034,631 | 938,813 | 3.91 | 23,795,364 | 905,438 | 3.81 | ||||||||||||||||||||||||||
Allowance for credit losses on loans
|
(196,942) | (160,212) | (158,791) | ||||||||||||||||||||||||||||||||
Unrealized gain (loss) on debt securities
|
292,898 | 74,605 | (113,068) | ||||||||||||||||||||||||||||||||
Cash and due from banks
|
343,516 | 370,709 | 360,732 | ||||||||||||||||||||||||||||||||
Premises and equipment - net
|
399,228 | 380,350 | 343,636 | ||||||||||||||||||||||||||||||||
Other assets
|
634,949 | 513,442 | 438,362 | ||||||||||||||||||||||||||||||||
Total assets
|
$ | 29,616,697 | $ | 25,213,525 | $ | 24,666,235 | |||||||||||||||||||||||||||||
LIABILITIES AND EQUITY
|
|||||||||||||||||||||||||||||||||||
Interest bearing deposits:
|
|||||||||||||||||||||||||||||||||||
Savings
|
$ | 1,123,413 | 1,053 | .09 | $ | 918,896 | 1,021 | .11 | $ | 867,150 | 973 | .11 | |||||||||||||||||||||||
Interest checking and money market
|
11,539,717 | 16,798 | .15 | 10,607,224 | 38,691 | .36 | 10,817,169 | 26,830 | .25 | ||||||||||||||||||||||||||
Certificates of deposit of less than $100,000
|
585,695 | 4,897 | .84 | 610,807 | 6,368 | 1.04 | 603,137 | 3,215 | .53 | ||||||||||||||||||||||||||
Certificates of deposit of $100,000 and over
|
1,358,389 | 12,948 | .95 | 1,396,760 | 26,945 | 1.93 | 1,114,825 | 14,658 | 1.31 | ||||||||||||||||||||||||||
Total interest bearing deposits
|
14,607,214 | 35,696 | .24 | 13,533,687 | 73,025 | .54 | 13,402,281 | 45,676 | .34 | ||||||||||||||||||||||||||
Borrowings:
|
|||||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
1,966,479 | 6,091 | .31 | 1,822,098 | 29,415 | 1.61 | 1,514,144 | 19,655 | 1.30 | ||||||||||||||||||||||||||
Other borrowings(C)
|
126,585 | 1,029 | .81 | 43,919 | 952 | 2.17 | 1,747 | 45 | 2.58 | ||||||||||||||||||||||||||
Total borrowings
|
2,093,064 | 7,120 | .34 | 1,866,017 | 30,367 | 1.63 | 1,515,891 | 19,700 | 1.30 | ||||||||||||||||||||||||||
Total interest bearing liabilities
|
16,700,278 | 42,816 | .26 | % | 15,399,704 | 103,392 | .67 | % | 14,918,172 | 65,376 | .44 | % | |||||||||||||||||||||||
Non-interest bearing deposits
|
8,890,263 | 6,376,204 | 6,728,971 | ||||||||||||||||||||||||||||||||
Other liabilities
|
715,033 | 360,587 | 247,520 | ||||||||||||||||||||||||||||||||
Equity
|
3,311,123 | 3,077,030 | 2,771,572 | ||||||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 29,616,697 | $ | 25,213,525 | $ | 24,666,235 | |||||||||||||||||||||||||||||
Net interest margin (T/E)
|
$ | 842,790 | $ | 835,421 | $ | 840,062 | |||||||||||||||||||||||||||||
Net yield on interest earning assets
|
2.99 | % | 3.48 | % | 3.53 | % | |||||||||||||||||||||||||||||
Percentage increase (decrease) in net interest margin (T/E) compared to the prior year
|
.88 | % | (.55 | %) | 9.58 | % |
Years Ended December 31 | ||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Rates Earned/Paid | Average Balance | Interest Income/Expense | Average Rates Earned/Paid | Average Balance | Interest Income/Expense | Average Rates Earned/Paid | Average Balance Five Year Compound Growth Rate | |||||||||||||||||||||||||||||
$ | 4,832,045 | $ | 154,681 | 3.20 | % | $ | 4,652,526 | $ | 134,438 | 2.89 | % | $ | 4,186,101 | $ | 116,455 | 2.78 | % | 8.82 | % | |||||||||||||||||||
881,879 | 37,315 | 4.23 | 778,822 | 27,452 | 3.52 | 477,320 | 17,075 | 3.58 | 14.93 | |||||||||||||||||||||||||||||
2,694,620 | 102,009 | 3.79 | 2,440,955 | 89,305 | 3.66 | 2,293,839 | 85,751 | 3.74 | 5.22 | |||||||||||||||||||||||||||||
2,019,674 | 75,267 | 3.73 | 1,936,420 | 72,417 | 3.74 | 1,899,234 | 71,666 | 3.77 | 6.64 | |||||||||||||||||||||||||||||
2,036,393 | 81,065 | 3.98 | 1,947,240 | 75,076 | 3.86 | 1,829,830 | 72,625 | 3.97 | 1.46 | |||||||||||||||||||||||||||||
398,611 | 15,516 | 3.89 | 417,514 | 14,797 | 3.54 | 431,033 | 15,262 | 3.54 | (4.92) | |||||||||||||||||||||||||||||
743,885 | 88,329 | 11.87 | 749,589 | 86,008 | 11.47 | 746,503 | 86,162 | 11.54 | (2.17) | |||||||||||||||||||||||||||||
4,592 | — | — | 4,712 | — | — | 5,416 | — | — | (9.16) | |||||||||||||||||||||||||||||
13,611,699 | 554,182 | 4.07 | 12,927,778 | 499,493 | 3.86 | 11,869,276 | 464,996 | 3.92 | 6.02 | |||||||||||||||||||||||||||||
17,452 | 1,000 | 5.73 | 25,710 | 1,317 | 5.12 | 4,115 | 191 | 4.64 | 35.34 | |||||||||||||||||||||||||||||
914,961 | 19,697 | 2.15 | 735,081 | 15,628 | 2.13 | 466,135 | 5,180 | 1.11 | 10.87 | |||||||||||||||||||||||||||||
452,422 | 7,321 | 1.62 | 591,785 | 13,173 | 2.23 | 938,589 | 17,319 | 1.85 | (35.46) | |||||||||||||||||||||||||||||
1,720,723 | 62,073 | 3.61 | 1,753,727 | 63,261 | 3.61 | 1,786,235 | 63,054 | 3.53 | (2.64) | |||||||||||||||||||||||||||||
3,784,602 | 89,623 | 2.37 | 3,460,821 | 82,888 | 2.40 | 3,164,447 | 80,936 | 2.56 | 12.62 | |||||||||||||||||||||||||||||
2,083,611 | 36,757 | 1.76 | 2,418,118 | 35,346 | 1.46 | 2,773,069 | 29,558 | 1.07 | (11.95) | |||||||||||||||||||||||||||||
330,365 | 8,410 | 2.55 | 331,289 | 8,382 | 2.53 | 255,558 | 6,191 | 2.42 | 11.71 | |||||||||||||||||||||||||||||
21,929 | 583 | 2.66 | 19,722 | 489 | 2.48 | 20,517 | 562 | 2.74 | 8.12 | |||||||||||||||||||||||||||||
60,772 | 2,283 | 3.76 | 47,763 | 2,208 | 4.62 | 45,200 | 1,805 | 3.99 | (37.81) | |||||||||||||||||||||||||||||
98,564 | 10,507 | 10.66 | 112,888 | 7,656 | 6.78 | 108,061 | 8,582 | 7.94 | 4.30 | |||||||||||||||||||||||||||||
9,467,949 | 237,254 | 2.51 | 9,471,194 | 229,031 | 2.42 | 9,557,811 | 213,187 | 2.23 | 1.43 | |||||||||||||||||||||||||||||
18,518 | 230 | 1.24 | 12,660 | 78 | .62 | 16,184 | 60 | .37 | (55.64) | |||||||||||||||||||||||||||||
688,147 | 15,440 | 2.24 | 791,392 | 13,544 | 1.71 | 1,002,053 | 13,172 | 1.31 | (3.24) | |||||||||||||||||||||||||||||
207,269 | 2,223 | 1.07 | 188,581 | 973 | .52 | 206,115 | 528 | .26 | 40.18 | |||||||||||||||||||||||||||||
24,011,034 | 810,329 | 3.37 | 23,417,315 | 744,436 | 3.18 | 22,655,554 | 692,134 | 3.06 | 4.43 | |||||||||||||||||||||||||||||
(156,572) | (152,628) | (152,690) | 5.22 | |||||||||||||||||||||||||||||||||||
45,760 | 143,842 | 112,352 | 21.12 | |||||||||||||||||||||||||||||||||||
361,414 | 381,822 | 378,803 | (1.94) | |||||||||||||||||||||||||||||||||||
345,639 | 350,443 | 359,773 | 2.10 | |||||||||||||||||||||||||||||||||||
424,333 | 415,677 | 383,810 | 10.59 | |||||||||||||||||||||||||||||||||||
$ | 25,031,608 | $ | 24,556,471 | $ | 23,737,602 | 4.52 | ||||||||||||||||||||||||||||||||
$ | 819,558 | 981 | .12 | $ | 775,121 | 923 | .12 | $ | 729,311 | 876 | .12 | 9.02 | ||||||||||||||||||||||||||
10,517,741 | 16,328 | .16 | 10,285,288 | 13,443 | .13 | 9,752,794 | 12,498 | .13 | 3.42 | |||||||||||||||||||||||||||||
676,272 | 2,645 | .39 | 749,261 | 2,809 | .37 | 832,343 | 3,236 | .39 | (6.79) | |||||||||||||||||||||||||||||
1,404,960 | 10,859 | .77 | 1,471,610 | 8,545 | .58 | 1,224,402 | 6,051 | .49 | 2.10 | |||||||||||||||||||||||||||||
13,418,531 | 30,813 | .23 | 13,281,280 | 25,720 | .19 | 12,538,850 | 22,661 | .18 | 3.10 | |||||||||||||||||||||||||||||
1,462,387 | 9,829 | .67 | 1,266,093 | 3,315 | .26 | 1,654,860 | 1,861 | .11 | 3.51 | |||||||||||||||||||||||||||||
87,696 | 3,086 | 3.52 | 171,255 | 3,968 | 2.32 | 103,884 | 3,574 | 3.44 | 4.03 | |||||||||||||||||||||||||||||
1,550,083 | 12,915 | .83 | 1,437,348 | 7,283 | .51 | 1,758,744 | 5,435 | .31 | 3.54 | |||||||||||||||||||||||||||||
14,968,614 | 43,728 | .29 | % | 14,718,628 | 33,003 | .22 | % | 14,297,594 | 28,096 | .20 | % | 3.16 | ||||||||||||||||||||||||||
7,176,255 | 7,049,633 | 6,786,741 | 5.55 | |||||||||||||||||||||||||||||||||||
250,510 | 292,145 | 280,231 | 20.60 | |||||||||||||||||||||||||||||||||||
2,636,229 | 2,496,065 | 2,373,036 | 6.89 | |||||||||||||||||||||||||||||||||||
$ | 25,031,608 | $ | 24,556,471 | $ | 23,737,602 | 4.52 | % | |||||||||||||||||||||||||||||||
$ | 766,601 | $ | 711,433 | $ | 664,038 | |||||||||||||||||||||||||||||||||
3.19 | % | 3.04 | % | 2.93 | % | |||||||||||||||||||||||||||||||||
7.75 | % | 7.14 | % | 2.38 | % |
Year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Average Balance | Average Rates Earned/Paid | Average Balance | Average Rates Earned/Paid | Average Balance | Average Rates Earned/Paid | Average Balance | Average Rates Earned/Paid | |||||||||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||||||||||||||||
Loans:
|
|||||||||||||||||||||||||||||||||||
Business(A)
|
$ | 6,580 | 3.01 | % | $ | 6,710 | 2.95 | % | $ | 6,761 | 2.91 | % | $ | 5,493 | 3.50 | % | |||||||||||||||||||
Real estate – construction and land | 1,033 | 3.72 | 974 | 3.74 | 896 | 3.95 | 924 | 4.78 | |||||||||||||||||||||||||||
Real estate – business | 3,030 | 3.51 | 2,990 | 3.53 | 2,962 | 3.71 | 2,854 | 4.16 | |||||||||||||||||||||||||||
Real estate – personal | 2,778 | 3.44 | 2,722 | 3.56 | 2,582 | 3.69 | 2,391 | 3.83 | |||||||||||||||||||||||||||
Consumer | 1,981 | 4.07 | 1,992 | 4.19 | 1,944 | 4.48 | 1,950 | 4.78 | |||||||||||||||||||||||||||
Revolving home equity | 317 | 3.37 | 329 | 3.29 | 343 | 3.50 | 350 | 4.61 | |||||||||||||||||||||||||||
Consumer credit card | 638 | 11.60 | 646 | 11.40 | 664 | 11.76 | 728 | 12.26 | |||||||||||||||||||||||||||
Overdrafts | 4 | — | 3 | — | 3 | — | 4 | — | |||||||||||||||||||||||||||
Total loans
|
16,361 | 3.69 | 16,366 | 3.69 | 16,155 | 3.80 | 14,694 | 4.39 | |||||||||||||||||||||||||||
Loans held for sale
|
31 | 3.54 | 25 | 4.25 | 6 | 8.03 | 13 | 6.15 | |||||||||||||||||||||||||||
Investment securities:
|
|||||||||||||||||||||||||||||||||||
U.S. government & federal agency obligations
|
775 | 2.63 | 770 | 3.71 | 776 | .46 | 803 | 2.09 | |||||||||||||||||||||||||||
Government-sponsored enterprise obligations
|
69 | 2.23 | 103 | 2.17 | 115 | 3.51 | 134 | 4.19 | |||||||||||||||||||||||||||
State & municipal obligations(A)
|
1,967 | 2.44 | 1,768 | 2.53 | 1,285 | 2.97 | 1,223 | 3.11 | |||||||||||||||||||||||||||
Mortgage-backed securities
|
6,646 | 1.37 | 6,260 | 1.95 | 5,326 | 2.17 | 4,686 | 2.37 | |||||||||||||||||||||||||||
Asset-backed securities
|
1,820 | 1.59 | 1,521 | 1.90 | 1,343 | 2.25 | 1,183 | 2.63 | |||||||||||||||||||||||||||
Other debt securities
|
534 | 2.19 | 514 | 2.35 | 407 | 2.49 | 322 | 2.94 | |||||||||||||||||||||||||||
Trading debt securities(A)
|
28 | 1.40 | 27 | 1.66 | 32 | 2.93 | 34 | 2.52 | |||||||||||||||||||||||||||
Equity securities(A)
|
4 | 50.71 | 4 | 47.15 | 4 | 48.42 | 4 | 46.78 | |||||||||||||||||||||||||||
Other securities(A)
|
130 | 10.03 | 120 | 6.74 | 139 | 4.36 | 144 | 5.31 | |||||||||||||||||||||||||||
Total investment securities
|
11,973 | 1.81 | 11,087 | 2.24 | 9,427 | 2.24 | 8,533 | 2.61 | |||||||||||||||||||||||||||
Federal funds sold and short-term securities purchased under agreements to resell
|
— | 1.12 | — | — | — | — | — | 2.47 | |||||||||||||||||||||||||||
Long-term securities purchased under agreements to resell
|
850 | 5.24 | 850 | 5.26 | 850 | 5.08 | 850 | 3.53 | |||||||||||||||||||||||||||
Interest earning deposits with banks | 1,083 | .10 | 1,025 | .10 | 1,755 | .10 | 601 | .86 | |||||||||||||||||||||||||||
Total interest earning assets
|
30,298 | 2.86 | 29,353 | 3.07 | 28,193 | 3.09 | 24,691 | 3.66 | |||||||||||||||||||||||||||
Allowance for credit losses on loans
|
(235) | (240) | (172) | (139) | |||||||||||||||||||||||||||||||
Unrealized gain on debt securities | 329 | 368 | 281 | 191 | |||||||||||||||||||||||||||||||
Cash and due from banks
|
320 | 326 | 358 | 370 | |||||||||||||||||||||||||||||||
Premises and equipment – net
|
406 | 404 | 395 | 392 | |||||||||||||||||||||||||||||||
Other assets
|
566 | 660 | 710 | 606 | |||||||||||||||||||||||||||||||
Total assets
|
$ | 31,684 | $ | 30,871 | $ | 29,765 | $ | 26,111 | |||||||||||||||||||||||||||
LIABILITIES AND EQUITY
|
|||||||||||||||||||||||||||||||||||
Interest bearing deposits:
|
|||||||||||||||||||||||||||||||||||
Savings | $ | 1,234 | .09 | $ | 1,193 | .09 | $ | 1,111 | .09 | $ | 953 | .11 | |||||||||||||||||||||||
Interest checking and money market | 12,200 | .07 | 11,732 | .10 | 11,442 | .13 | 10,777 | .30 | |||||||||||||||||||||||||||
Certificates of deposit under $100,000 | 542 | .51 | 573 | .71 | 605 | .93 | 623 | 1.15 | |||||||||||||||||||||||||||
Certificates of deposit $100,000 & over | 1,339 | .47 | 1,448 | .69 | 1,346 | 1.08 | 1,299 | 1.62 | |||||||||||||||||||||||||||
Total interest bearing deposits
|
15,315 | .12 | 14,946 | .18 | 14,504 | .25 | 13,652 | .45 | |||||||||||||||||||||||||||
Borrowings:
|
|||||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
2,028 | .06 | 1,856 | .09 | 1,992 | .12 | 1,990 | .96 | |||||||||||||||||||||||||||
Other borrowings | 1 | — | 1 | — | 345 | .82 | 162 | .82 | |||||||||||||||||||||||||||
Total borrowings
|
2,029 | .06 | 1,857 | .09 | 2,337 | .22 | 2,152 | .95 | |||||||||||||||||||||||||||
Total interest bearing liabilities
|
17,344 | .11 | % | 16,803 | .17 | % | 16,841 | .25 | % | 15,804 | .52 | % | |||||||||||||||||||||||
Non-interest bearing deposits
|
10,276 | 9,802 | 8,843 | 6,615 | |||||||||||||||||||||||||||||||
Other liabilities
|
728 | 900 | 765 | 467 | |||||||||||||||||||||||||||||||
Equity
|
3,336 | 3,366 | 3,316 | 3,225 | |||||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 31,684 | $ | 30,871 | $ | 29,765 | $ | 26,111 | |||||||||||||||||||||||||||
Net interest margin (T/E)
|
$ | 213 | $ | 219 | $ | 206 | $ | 204 | |||||||||||||||||||||||||||
Net yield on interest earning assets
|
2.80 | % | 2.97 | % | 2.94 | % | 3.33 | % |
Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Average Balance | Average Rates Earned/Paid | Average Balance | Average Rates Earned/Paid | Average Balance | Average Rates Earned/Paid | Average Balance | Average Rates Earned/Paid | |||||||||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||||||||||||||||
Loans:
|
|||||||||||||||||||||||||||||||||||
Business(A)
|
$ | 5,362 | 3.59 | % | $ | 5,265 | 3.85 | % | $ | 5,142 | 4.02 | % | $ | 5,086 | 4.07 | % | |||||||||||||||||||
Real estate – construction and land | 901 | 5.05 | 920 | 5.46 | 909 | 5.63 | 907 | 5.73 | |||||||||||||||||||||||||||
Real estate – business | 2,820 | 4.22 | 2,883 | 4.42 | 2,869 | 4.60 | 2,864 | 4.61 | |||||||||||||||||||||||||||
Real estate – personal | 2,284 | 3.85 | 2,175 | 3.91 | 2,135 | 3.97 | 2,119 | 4.00 | |||||||||||||||||||||||||||
Consumer | 1,962 | 4.76 | 1,924 | 4.88 | 1,908 | 4.77 | 1,929 | 4.73 | |||||||||||||||||||||||||||
Revolving home equity | 348 | 4.76 | 354 | 5.17 | 362 | 5.20 | 371 | 5.17 | |||||||||||||||||||||||||||
Consumer credit card | 749 | 12.11 | 763 | 12.42 | 766 | 12.33 | 781 | 12.18 | |||||||||||||||||||||||||||
Overdrafts | 18 | — | 9 | — | 5 | — | 4 | — | |||||||||||||||||||||||||||
Total loans
|
14,444 | 4.47 | 14,293 | 4.71 | 14,096 | 4.82 | 14,061 | 4.85 | |||||||||||||||||||||||||||
Loans held for sale
|
15 | 5.32 | 20 | 6.15 | 21 | 6.98 | 18 | 7.38 | |||||||||||||||||||||||||||
Investment securities:
|
|||||||||||||||||||||||||||||||||||
U.S. government & federal agency obligations
|
826 | 2.16 | 824 | 2.36 | 844 | 4.66 | 910 | .78 | |||||||||||||||||||||||||||
Government-sponsored enterprise obligations
|
185 | 2.17 | 182 | 2.69 | 200 | 2.32 | 199 | 2.35 | |||||||||||||||||||||||||||
State & municipal obligations(A)
|
1,208 | 3.05 | 1,172 | 3.14 | 1,222 | 3.18 | 1,283 | 3.19 | |||||||||||||||||||||||||||
Mortgage-backed securities
|
4,686 | 2.72 | 4,713 | 2.61 | 4,615 | 2.70 | 4,360 | 2.76 | |||||||||||||||||||||||||||
Asset-backed securities | 1,258 | 2.62 | 1,298 | 2.80 | 1,412 | 2.79 | 1,526 | 2.70 | |||||||||||||||||||||||||||
Other debt securities | 331 | 2.82 | 334 | 2.63 | 331 | 2.68 | 336 | 2.69 | |||||||||||||||||||||||||||
Trading debt securities(A)
|
33 | 2.81 | 30 | 2.91 | 30 | 3.14 | 25 | 3.24 | |||||||||||||||||||||||||||
Equity securities(A)
|
4 | 49.40 | 5 | 35.67 | 5 | 35.97 | 5 | 37.55 | |||||||||||||||||||||||||||
Other securities(A)
|
142 | 6.58 | 135 | 6.19 | 130 | 6.69 | 130 | 5.73 | |||||||||||||||||||||||||||
Total investment securities | 8,673 | 2.78 | 8,693 | 2.76 | 8,789 | 3.04 | 8,774 | 2.66 | |||||||||||||||||||||||||||
Federal funds sold and short-term securities purchased under agreements to resell
|
1 | 2.22 | 1 | 2.57 | 2 | 2.76 | 5 | 2.79 | |||||||||||||||||||||||||||
Long-term securities purchased under agreements to resell
|
850 | 2.26 | 713 | 2.01 | 700 | 2.11 | 700 | 2.18 | |||||||||||||||||||||||||||
Interest earning deposits with banks | 390 | 1.61 | 227 | 2.17 | 332 | 2.40 | 317 | 2.42 | |||||||||||||||||||||||||||
Total interest earning assets | 24,373 | 3.75 | 23,947 | 3.90 | 23,940 | 4.05 | 23,875 | 3.93 | |||||||||||||||||||||||||||
Allowance for credit losses on loans | (160) | (160) | (161) | (159) | |||||||||||||||||||||||||||||||
Unrealized gain (loss) on debt securities | 150 | 153 | 42 | (49) | |||||||||||||||||||||||||||||||
Cash and due from banks | 379 | 367 | 369 | 367 | |||||||||||||||||||||||||||||||
Premises and equipment – net | 387 | 380 | 378 | 376 | |||||||||||||||||||||||||||||||
Other assets | 549 | 545 | 504 | 454 | |||||||||||||||||||||||||||||||
Total assets | $ | 25,678 | $ | 25,232 | $ | 25,072 | $ | 24,864 | |||||||||||||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||
Interest bearing deposits: | |||||||||||||||||||||||||||||||||||
Savings | $ | 924 | .11 | $ | 925 | .11 | $ | 930 | .11 | $ | 896 | .11 | |||||||||||||||||||||||
Interest checking and money market
|
10,619 | .35 | 10,409 | .38 | 10,643 | .38 | 10,763 | .35 | |||||||||||||||||||||||||||
Certificates of deposit under $100,000
|
627 | 1.16 | 620 | 1.11 | 605 | 1.01 | 590 | .87 | |||||||||||||||||||||||||||
Certificates of deposit $100,000 & over
|
1,434 | 1.79 | 1,504 | 1.99 | 1,378 | 2.02 | 1,268 | 1.92 | |||||||||||||||||||||||||||
Total interest bearing deposits
|
13,604 | .52 | 13,458 | .58 | 13,556 | .55 | 13,517 | .51 | |||||||||||||||||||||||||||
Borrowings:
|
|||||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
1,837 | 1.20 | 1,885 | 1.74 | 1,794 | 1.80 | 1,772 | 1.72 | |||||||||||||||||||||||||||
Other borrowings | 94 | 2.05 | 77 | 2.33 | 2 | 1.52 | 1 | 1.62 | |||||||||||||||||||||||||||
Total borrowings
|
1,931 | 1.25 | 1,962 | 1.76 | 1,796 | 1.80 | 1,773 | 1.72 | |||||||||||||||||||||||||||
Total interest bearing liabilities
|
15,535 | .61 | % | 15,420 | .73 | % | 15,352 | .70 | % | 15,290 | .65 | % | |||||||||||||||||||||||
Non-interest bearing deposits
|
6,553 | 6,290 | 6,336 | 6,325 | |||||||||||||||||||||||||||||||
Other liabilities
|
459 | 391 | 307 | 283 | |||||||||||||||||||||||||||||||
Equity
|
3,131 | 3,131 | 3,077 | 2,966 | |||||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 25,678 | $ | 25,232 | $ | 25,072 | $ | 24,864 | |||||||||||||||||||||||||||
Net interest margin (T/E)
|
$ | 206 | $ | 207 | $ | 215 | $ | 207 | |||||||||||||||||||||||||||
Net yield on interest earning assets
|
3.36 | % | 3.43 | % | 3.61 | % | 3.52 | % |
Year ended December 31, 2020 | For the Quarter Ended | |||||||||||||
(In thousands, except per share data) | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | ||||||||||
Interest income
|
$ | 214,726 | $ | 223,114 | $ | 213,323 | $ | 221,485 | ||||||
Interest expense
|
(4,963) | (7,152) | (10,266) | (20,420) | ||||||||||
Net interest income
|
209,763 | 215,962 | 203,057 | 201,065 | ||||||||||
Non-interest income
|
135,117 | 129,572 | 117,515 | 123,663 | ||||||||||
Investment securities gains (losses), net
|
12,307 | 16,155 | (4,129) | (13,301) | ||||||||||
Salaries and employee benefits
|
(129,983) | (127,308) | (126,759) | (128,937) | ||||||||||
Other expense
|
(66,327) | (63,550) | (60,753) | (64,761) | ||||||||||
Provision for credit losses
|
4,403 | (3,101) | (80,539) | (57,953) | ||||||||||
Income before income taxes
|
165,280 | 167,730 | 48,392 | 59,776 | ||||||||||
Income taxes
|
(33,084) | (34,375) | (9,661) | (10,173) | ||||||||||
Non-controlling interest
|
(2,307) | (907) | 1,132 | 2,254 | ||||||||||
Net income attributable to Commerce Bancshares, Inc. | $ | 129,889 | $ | 132,448 | $ | 39,863 | $ | 51,857 | ||||||
Net income per common share — basic*
|
$ | 1.11 | $ | 1.06 | $ | .32 | $ | .42 | ||||||
Net income per common share — diluted*
|
$ | 1.11 | $ | 1.06 | $ | .32 | $ | .42 | ||||||
Weighted average shares — basic*
|
116,267 | 116,256 | 116,242 | 116,674 | ||||||||||
Weighted average shares — diluted*
|
116,508 | 116,444 | 116,442 | 116,945 |
Year ended December 31, 2019 | For the Quarter Ended | |||||||||||||
(In thousands, except per share data) | 12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | ||||||||||
Interest income
|
$ | 226,665 | $ | 231,743 | $ | 238,412 | $ | 227,865 | ||||||
Interest expense
|
(24,006) | (28,231) | (26,778) | (24,377) | ||||||||||
Net interest income
|
202,659 | 203,512 | 211,634 | 203,488 | ||||||||||
Non-interest income
|
143,461 | 132,743 | 127,259 | 121,240 | ||||||||||
Investment securities gains (losses), net
|
(248) | 4,909 | (110) | (925) | ||||||||||
Salaries and employee benefits
|
(126,901) | (123,836) | (120,062) | (122,128) | ||||||||||
Other expense
|
(68,273) | (67,184) | (69,717) | (69,297) | ||||||||||
Provision for credit losses
|
(15,206) | (10,963) | (11,806) | (12,463) | ||||||||||
Income before income taxes
|
135,492 | 139,181 | 137,198 | 119,915 | ||||||||||
Income taxes
|
(28,214) | (29,101) | (28,899) | (22,860) | ||||||||||
Non-controlling interest
|
(398) | (838) | (328) | 83 | ||||||||||
Net income attributable to Commerce Bancshares, Inc.
|
$ | 106,880 | $ | 109,242 | $ | 107,971 | $ | 97,138 | ||||||
Net income per common share — basic*
|
$ | .89 | $ | .89 | $ | .87 | $ | .77 | ||||||
Net income per common share — diluted*
|
$ | .88 | $ | .89 | $ | .87 | $ | .77 | ||||||
Weighted average shares — basic* | 117,317 | 118,631 | 120,709 | 121,287 | ||||||||||
Weighted average shares — diluted* | 117,612 | 118,912 | 121,002 | 121,607 |
Year ended December 31, 2018 | For the Quarter Ended | |||||||||||||
(In thousands, except per share data) | 12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | ||||||||||
Interest income
|
$ | 232,832 | $ | 224,751 | $ | 225,623 | $ | 205,995 | ||||||
Interest expense
|
(20,612) | (16,997) | (14,664) | (13,103) | ||||||||||
Net interest income
|
212,220 | 207,754 | 210,959 | 192,892 | ||||||||||
Non-interest income
|
133,087 | 123,714 | 124,850 | 119,690 | ||||||||||
Investment securities gains (losses), net
|
(7,129) | 4,306 | (3,075) | 5,410 | ||||||||||
Salaries and employee benefits
|
(120,517) | (116,194) | (115,589) | (115,894) | ||||||||||
Other expense
|
(68,108) | (68,865) | (66,271) | (66,383) | ||||||||||
Provision for credit losses
|
(12,256) | (9,999) | (10,043) | (10,396) | ||||||||||
Income before income taxes
|
137,297 | 140,716 | 140,831 | 125,319 | ||||||||||
Income taxes
|
(26,537) | (26,647) | (29,507) | (23,258) | ||||||||||
Non-controlling interest
|
(1,108) | (1,493) | (994) | (1,077) | ||||||||||
Net income attributable to Commerce Bancshares, Inc.
|
$ | 109,652 | $ | 112,576 | $ | 110,330 | $ | 100,984 | ||||||
Net income per common share — basic*
|
$ | .87 | $ | .90 | $ | .87 | $ | .80 | ||||||
Net income per common share — diluted*
|
$ | .87 | $ | .89 | $ | .87 | $ | .80 | ||||||
Weighted average shares — basic*
|
121,800 | 122,255 | 122,345 | 122,285 | ||||||||||
Weighted average shares — diluted*
|
122,124 | 122,664 | 122,742 | 122,669 |
December 31 | ||||||||
2020 | 2019 | |||||||
(In thousands) | ||||||||
ASSETS
|
||||||||
Loans | $ | 16,329,641 | $ | 14,737,817 | ||||
Allowance for credit losses on loans
|
(220,834) | (160,682) | ||||||
Net loans
|
16,108,807 | 14,577,135 | ||||||
Loans held for sale (including $39,396,000 and $9,181,000 of residential mortgage loans carried at fair value at December 31, 2020 and 2019, respectively)
|
45,089 | 13,809 | ||||||
Investment securities:
|
||||||||
Available for sale debt, at fair value (amortized cost of $12,097,533,000 and allowance for credit losses of $— at December 31, 2020)
|
12,449,264 | 8,571,626 | ||||||
Trading debt
|
35,321 | 28,161 | ||||||
Equity
|
4,363 | 4,209 | ||||||
Other
|
156,745 | 137,892 | ||||||
Total investment securities
|
12,645,693 | 8,741,888 | ||||||
Long-term securities purchased under agreements to resell
|
850,000 | 850,000 | ||||||
Interest earning deposits with banks
|
1,747,363 | 395,850 | ||||||
Cash and due from banks
|
437,563 | 491,615 | ||||||
Premises and equipment – net
|
371,083 | 370,637 | ||||||
Goodwill
|
138,921 | 138,921 | ||||||
Other intangible assets – net
|
11,207 | 9,534 | ||||||
Other assets
|
567,248 | 476,400 | ||||||
Total assets
|
$ | 32,922,974 | $ | 26,065,789 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
|
$ | 10,497,598 | $ | 6,890,687 | ||||
Savings, interest checking and money market
|
14,604,456 | 11,621,716 | ||||||
Certificates of deposit of less than $100,000 | 529,802 | 626,157 | ||||||
Certificates of deposit of $100,000 and over | 1,314,889 | 1,381,855 | ||||||
Total deposits
|
26,946,745 | 20,520,415 | ||||||
Federal funds purchased and securities sold under agreements to repurchase
|
2,098,383 | 1,850,772 | ||||||
Other borrowings
|
802 | 2,418 | ||||||
Other liabilities
|
477,072 | 553,712 | ||||||
Total liabilities
|
29,523,002 | 22,927,317 | ||||||
Commerce Bancshares, Inc. stockholders’ equity: | ||||||||
Preferred stock, $1 par value
Authorized 2,000,000 shares; issued none at December 31, 2020 and 6,000 shares at December 31, 2019
|
— | 144,784 | ||||||
Common stock, $5 par value
Authorized 140,000,000; issued 117,870,372 shares at December 31, 2020 and 112,795,605 shares at December 31, 2019
|
589,352 | 563,978 | ||||||
Capital surplus | 2,436,288 | 2,151,464 | ||||||
Retained earnings | 73,000 | 201,562 | ||||||
Treasury stock of 497,413 shares at December 31, 2020 and 445,952 shares at December 31, 2019, at cost
|
(32,970) | (37,548) | ||||||
Accumulated other comprehensive income | 331,377 | 110,444 | ||||||
Total Commerce Bancshares, Inc. stockholders’ equity | 3,397,047 | 3,134,684 | ||||||
Non-controlling interest | 2,925 | 3,788 | ||||||
Total equity
|
3,399,972 | 3,138,472 | ||||||
Total liabilities and equity
|
$ | 32,922,974 | $ | 26,065,789 |
For the Years Ended December 31 | |||||||||||
(In thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||
INTEREST INCOME
|
|||||||||||
Interest and fees on loans
|
$ | 612,072 | $ | 663,338 | $ | 625,083 | |||||
Interest on loans held for sale
|
860 | 1,209 | 1,298 | ||||||||
Interest on investment securities
|
216,793 | 237,487 | 240,187 | ||||||||
Interest on federal funds sold and short-term securities purchased under agreements to resell
|
3 | 55 | 519 | ||||||||
Interest on long-term securities purchased under agreements to resell
|
40,647 | 15,898 | 15,881 | ||||||||
Interest on deposits with banks
|
2,273 | 6,698 | 6,233 | ||||||||
Total interest income
|
872,648 | 924,685 | 889,201 | ||||||||
INTEREST EXPENSE
|
|||||||||||
Interest on deposits:
|
|||||||||||
Savings, interest checking and money market | 17,851 | 39,712 | 27,803 | ||||||||
Certificates of deposit of less than $100,000 | 4,897 | 6,368 | 3,215 | ||||||||
Certificates of deposit of $100,000 and over | 12,948 | 26,945 | 14,658 | ||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase
|
6,091 | 29,415 | 19,655 | ||||||||
Interest on other borrowings
|
1,014 | 952 | 45 | ||||||||
Total interest expense
|
42,801 | 103,392 | 65,376 | ||||||||
Net interest income
|
829,847 | 821,293 | 823,825 | ||||||||
Provision for credit losses
|
137,190 | 50,438 | 42,694 | ||||||||
Net interest income after credit losses
|
692,657 | 770,855 | 781,131 | ||||||||
NON-INTEREST INCOME
|
|||||||||||
Bank card transaction fees
|
151,797 | 167,879 | 171,576 | ||||||||
Trust fees
|
160,637 | 155,628 | 147,964 | ||||||||
Deposit account charges and other fees
|
93,227 | 95,983 | 94,517 | ||||||||
Capital market fees
|
14,582 | 8,146 | 7,721 | ||||||||
Consumer brokerage services
|
15,095 | 15,804 | 15,807 | ||||||||
Loan fees and sales
|
26,684 | 15,767 | 12,723 | ||||||||
Other
|
43,845 | 65,496 | 51,033 | ||||||||
Total non-interest income
|
505,867 | 524,703 | 501,341 | ||||||||
INVESTMENT SECURITIES GAINS (LOSSES), NET
|
11,032 | 3,626 | (488) | ||||||||
NON-INTEREST EXPENSE
|
|||||||||||
Salaries and employee benefits
|
512,987 | 492,927 | 468,194 | ||||||||
Net occupancy
|
46,645 | 47,157 | 46,044 | ||||||||
Equipment
|
18,839 | 19,061 | 18,125 | ||||||||
Supplies and communication
|
17,419 | 20,394 | 20,637 | ||||||||
Data processing and software
|
95,325 | 92,899 | 85,978 | ||||||||
Marketing
|
19,734 | 21,914 | 20,548 | ||||||||
Other
|
57,429 | 73,046 | 78,295 | ||||||||
Total non-interest expense
|
768,378 | 767,398 | 737,821 | ||||||||
Income before income taxes
|
441,178 | 531,786 | 544,163 | ||||||||
Less income taxes
|
87,293 | 109,074 | 105,949 | ||||||||
Net income
|
353,885 | 422,712 | 438,214 | ||||||||
Less non-controlling interest expense (income)
|
(172) | 1,481 | 4,672 | ||||||||
Net income attributable to Commerce Bancshares, Inc.
|
354,057 | 421,231 | 433,542 | ||||||||
Less preferred stock dividends
|
11,966 | 9,000 | 9,000 | ||||||||
Net income available to common shareholders
|
$ | 342,091 | $ | 412,231 | $ | 424,542 | |||||
Net income per common share - basic
|
$ | 2.91 | $ | 3.42 | $ | 3.44 | |||||
Net income per common share - diluted
|
$ | 2.91 | $ | 3.41 | $ | 3.43 |
For the Years Ended December 31 | ||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | |||||||||||
Net income | $ | 353,885 | $ | 422,712 | $ | 438,214 | ||||||||
Other comprehensive income (loss):
|
||||||||||||||
Net unrealized losses on securities for which a portion of an other-than-temporary impairment has been recorded in earnings | — | (632) | (277) | |||||||||||
Net unrealized gains (losses) on other securities
|
161,728 | 151,122 | (55,631) | |||||||||||
Change in pension loss
|
(3,178) | 1,167 | 664 | |||||||||||
Unrealized gains on cash flow hedge derivatives
|
62,383 | 23,456 | 6,855 | |||||||||||
Other comprehensive income (loss)
|
220,933 | 175,113 | (48,389) | |||||||||||
Comprehensive income | 574,818 | 597,825 | 389,825 | |||||||||||
Less non-controlling interest expense (income) | (172) | 1,481 | 4,672 | |||||||||||
Comprehensive income attributable to Commerce Bancshares, Inc. | $ | 574,990 | $ | 596,344 | $ | 385,153 |
Commerce Bancshares, Inc. Shareholders | ||||||||||||||||||||||||||
(In thousands, except per share data)
|
Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest | Total | ||||||||||||||||||
Balance at December 31, 2017 | $ | 144,784 | $ | 535,407 | $ | 1,815,360 | $ | 221,374 | $ | (14,473) | $ | 14,108 | $ | 1,624 | $ | 2,718,184 | ||||||||||
Adoption of ASU 2018-02
|
(2,932) | 2,932 | — | |||||||||||||||||||||||
Adoption of ASU 2016-01
|
33,320 | (33,320) | — | |||||||||||||||||||||||
Balance December 31, 2017, adjusted | 144,784 | 535,407 | 1,815,360 | 251,762 | (14,473) | (16,280) | 1,624 | 2,718,184 | ||||||||||||||||||
Net income | 433,542 | 4,672 | 438,214 | |||||||||||||||||||||||
Other comprehensive loss | (48,389) | (48,389) | ||||||||||||||||||||||||
Distributions to non-controlling interest | (445) | (445) | ||||||||||||||||||||||||
Purchases of treasury stock | (75,231) | (75,231) | ||||||||||||||||||||||||
Cash dividends paid on common stock ($.812 per share)
|
(100,238) | (100,238) | ||||||||||||||||||||||||
Cash dividends paid on preferred stock
($1.500 per depositary share)
|
(9,000) | (9,000) | ||||||||||||||||||||||||
Stock-based compensation | 12,841 | 12,841 | ||||||||||||||||||||||||
Issuance under stock purchase and equity compensation plans | (21,632) | 23,424 | 1,792 | |||||||||||||||||||||||
5% stock dividend, net
|
24,025 | 278,255 | (334,903) | 32,044 | (579) | |||||||||||||||||||||
Balance at December 31, 2018 | 144,784 | 559,432 | 2,084,824 | 241,163 | (34,236) | (64,669) | 5,851 | 2,937,149 | ||||||||||||||||||
Net income
|
421,231 | 1,481 | 422,712 | |||||||||||||||||||||||
Other comprehensive income | 175,113 | 175,113 | ||||||||||||||||||||||||
Distributions to non-controlling interest | (3,544) | (3,544) | ||||||||||||||||||||||||
Purchases of treasury stock | (134,904) | (134,904) | ||||||||||||||||||||||||
Accelerated share repurchase agreement | (150,000) | (150,000) | ||||||||||||||||||||||||
Cash dividends paid on common stock ($.943 per share)
|
(113,466) | (113,466) | ||||||||||||||||||||||||
Cash dividends paid on preferred stock ($1.500 per depositary share)
|
(9,000) | (9,000) | ||||||||||||||||||||||||
Stock-based compensation | 13,854 | 13,854 | ||||||||||||||||||||||||
Issuance under stock purchase and equity compensation plans | (19,293) | 20,644 | 1,351 | |||||||||||||||||||||||
5% stock dividend, net
|
4,546 | 72,079 | (338,366) | 260,948 | (793) | |||||||||||||||||||||
Balance at December 31, 2019 | 144,784 | 563,978 | 2,151,464 | 201,562 | (37,548) | 110,444 | 3,788 | 3,138,472 | ||||||||||||||||||
Adoption of ASU 2016-13
|
3,766 | 3,766 | ||||||||||||||||||||||||
Balance December 31, 2019, adjusted | 144,784 | 563,978 | 2,151,464 | 205,328 | (37,548) | 110,444 | 3,788 | 3,142,238 | ||||||||||||||||||
Net income | 354,057 | (172) | 353,885 | |||||||||||||||||||||||
Other comprehensive income | 220,933 | 220,933 | ||||||||||||||||||||||||
Distributions to non-controlling interest | (691) | (691) | ||||||||||||||||||||||||
Purchases of treasury stock | (54,163) | (54,163) | ||||||||||||||||||||||||
Redemption of preferred stock | (144,784) | (5,216) | (150,000) | |||||||||||||||||||||||
Cash dividends paid on common stock ($1.029 per share)
|
(120,818) | (120,818) | ||||||||||||||||||||||||
Cash dividends paid on preferred stock ($1.125 per depositary share)
|
(6,750) | (6,750) | ||||||||||||||||||||||||
Stock-based compensation | 14,915 | 14,915 | ||||||||||||||||||||||||
Issuance under stock purchase and equity compensation plans | (24,271) | 25,580 | 1,309 | |||||||||||||||||||||||
5% stock dividend, net
|
25,374 | 294,180 | (353,601) | 33,161 | (886) | |||||||||||||||||||||
Balance at December 31, 2020 | $ | — | $ | 589,352 | $ | 2,436,288 | $ | 73,000 | $ | (32,970) | $ | 331,377 | $ | 2,925 | $ | 3,399,972 |
For the Years Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
OPERATING ACTIVITIES
|
|||||||||||
Net income
|
$ | 353,885 | $ | 422,712 | $ | 438,214 | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||
Provision for credit losses | 137,190 | 50,438 | 42,694 | ||||||||
Provision for depreciation and amortization | 43,769 | 41,145 | 38,679 | ||||||||
Amortization of investment security premiums, net | 59,863 | 27,631 | 26,224 | ||||||||
Deferred income tax (benefit) expense | (19,540) | 14,195 | 5,336 | ||||||||
Investment securities (gains) losses, net (A) | (11,032) | (3,626) | 488 | ||||||||
Net gains on sales of loans held for sale | (16,406) | (10,127) | (6,370) | ||||||||
Proceeds from sales of loans held for sale | 297,267 | 259,153 | 208,431 | ||||||||
Originations of loans held for sale | (313,329) | (244,976) | (203,775) | ||||||||
Net (increase) decrease in trading securities, excluding unsettled transactions | (770) | 3,863 | (14,277) | ||||||||
Stock-based compensation | 14,915 | 13,854 | 12,841 | ||||||||
(Increase) decrease in interest receivable | (13,399) | 3,316 | (4,258) | ||||||||
Increase (decrease) in interest payable | (9,444) | 5,586 | 2,137 | ||||||||
Increase in income taxes payable | 12,345 | 14,465 | 12,288 | ||||||||
Gain on sale of Corporate Trust business | — | (11,472) | — | ||||||||
Proceeds from terminated interest rate floors | 156,740 | — | — | ||||||||
Other changes, net | (68,062) | (73,363) | (5,992) | ||||||||
Net cash provided by operating activities
|
623,992 | 512,794 | 552,660 | ||||||||
INVESTING ACTIVITIES
|
|||||||||||
Proceeds from sales of investment securities (A)
|
602,477 | 413,203 | 708,864 | ||||||||
Proceeds from maturities/pay downs of investment securities (A)
|
2,673,510 | 1,558,244 | 1,510,985 | ||||||||
Purchases of investment securities (A)
|
(6,991,460) | (1,863,180) | (2,090,333) | ||||||||
Net increase in loans
|
(1,643,775) | (647,890) | (200,673) | ||||||||
Long-term securities purchased under agreements to resell
|
— | (150,000) | (100,000) | ||||||||
Repayments of long-term securities purchased under agreements to resell
|
— | — | 100,000 | ||||||||
Purchases of premises and equipment
|
(33,134) | (42,575) | (33,294) | ||||||||
Sales of premises and equipment
|
1,878 | 2,033 | 13,427 | ||||||||
Net cash used in investing activities
|
(5,390,504) | (730,165) | (91,024) | ||||||||
FINANCING ACTIVITIES
|
|||||||||||
Net increase in non-interest bearing, savings, interest checking and money market deposits
|
6,316,100 | 85,438 | 60,278 | ||||||||
Net increase (decrease) in certificates of deposit
|
(163,321) | 349,890 | (108,742) | ||||||||
Net increase (decrease) in federal funds purchased and short-term securities sold under agreements to repurchase
|
247,611 | (105,617) | 449,251 | ||||||||
Net increase (decrease) in other borrowings
|
(1,616) | (6,394) | 6,944 | ||||||||
Preferred stock redemption
|
(150,000) | — | — | ||||||||
Purchases of treasury stock
|
(54,163) | (134,904) | (75,231) | ||||||||
Accelerated share repurchase agreement
|
— | (150,000) | — | ||||||||
Issuance of stock under equity compensation plans
|
(11) | (8) | (10) | ||||||||
Cash dividends paid on common stock
|
(120,818) | (113,466) | (100,238) | ||||||||
Cash dividends paid on preferred stock
|
(6,750) | (9,000) | (9,000) | ||||||||
Net cash provided by (used in) financing activities
|
6,067,032 | (84,061) | 223,252 | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
1,300,520 | (301,432) | 684,888 | ||||||||
Cash, cash equivalents and restricted cash at beginning of year
|
907,808 | 1,209,240 | 524,352 | ||||||||
Cash, cash equivalents and restricted cash at end of year
|
$ | 2,208,328 | $ | 907,808 | $ | 1,209,240 | |||||
Income tax payments, net
|
$ | 90,066 | $ | 76,168 | $ | 84,172 | |||||
Interest paid on deposits and borrowings
|
52,245 | 97,806 | 63,239 | ||||||||
Loans transferred to foreclosed real estate
|
93 | 581 | 1,551 | ||||||||
December 31, 2019 | January 1, 2020 | ||||||||||||||||
(In thousands) | Allowance for loan losses ending balance | CECL Adjustment | Allowance for credit losses beginning balance | ||||||||||||||
Commercial: | |||||||||||||||||
Business | $ | 44,268 | $ | (6,328) | $ | 37,940 | |||||||||||
Real estate - construction and land | 21,589 | (12,385) | 9,204 | ||||||||||||||
Real estate - business | 25,903 | (10,998) | 14,905 | ||||||||||||||
Total Commercial: | 91,760 | (29,711) | 62,049 | ||||||||||||||
Personal Banking: | |||||||||||||||||
Real estate - personal | 3,125 | 1,730 | 4,855 | ||||||||||||||
Consumer | 15,932 | (1,414) | 14,518 | ||||||||||||||
Revolving home equity | 638 | 986 | 1,624 | ||||||||||||||
Consumer credit card | 47,997 | 8,498 | 56,495 | ||||||||||||||
Overdrafts | 1,230 | (1,128) | 102 | ||||||||||||||
Total Personal Banking: | 68,922 | 8,672 | 77,594 | ||||||||||||||
Allowance for credit losses on loans | 160,682 | (21,039) | 139,643 | ||||||||||||||
Liability for unfunded lending commitments | 1,075 | 16,090 | 17,165 | ||||||||||||||
Total allowance for credit losses | $ | 161,757 | $ | (4,949) | $ | 156,808 |
(In thousands) | 2020 | 2019 | ||||||
Commercial: | ||||||||
Business
|
$ | 6,546,087 | $ | 5,565,449 | ||||
Real estate — construction and land
|
1,021,595 | 899,377 | ||||||
Real estate — business
|
3,026,117 | 2,833,554 | ||||||
Personal Banking:
|
||||||||
Real estate — personal
|
2,820,030 | 2,354,760 | ||||||
Consumer
|
1,950,502 | 1,964,145 | ||||||
Revolving home equity
|
307,083 | 349,251 | ||||||
Consumer credit card
|
655,078 | 764,977 | ||||||
Overdrafts
|
3,149 | 6,304 | ||||||
Total loans (1)
|
$ | 16,329,641 | $ | 14,737,817 |
(In thousands) | |||||
Balance at January 1, 2020 | $ | 56,595 | |||
Additions | 102,182 | ||||
Amounts collected | (123,883) | ||||
Amounts written off | — | ||||
Balance, December 31, 2020 | $ | 34,894 |
Key Assumption | December 31, 2020 | January 1, 2020 (implementation) | ||||||
Overall economic forecast |
•The recovery from the Global Coronavirus Recession (GCR) continues to be gradual throughout 2021 and 2022
•Assumes no additional systemic lockdown measures
•Considers government stimulus in the beginning of 2021
•Continued uncertainty regarding the health crisis
|
Stable economic environment with slight positive growth projections in overall economic indicators, short-term and long-term, reflecting low unemployment in a late-stage economic cycle.
|
||||||
Reasonable and supportable period and related reversion period |
•Two years for both commercial and personal banking loans
•Reversion to historical average loss rates within two quarters using a straight-line method
|
•One year for commercial loans
•Two years for personal banking loans
•Reversion to historical average loss rates within two quarters using a straight-line method
|
||||||
Forecasted macro-economic variables |
•Unemployment rate ranging from 6.5% to 5.2% during the supportable forecast period
•Real GDP growth ranges from 3.7% to 2.2%
•Prime rate of 3.25%
|
•Unemployment rate ranging from 3.4% to 3.8% during the supportable forecast period
•Real GDP growth ranges from 1.2% to 1.8%
•Prime rate ranges of 4.6% to 4.8%
•See "Qualitative factors" below for qualitative adjustments made to the forecasted macro-economic variables stated herein
|
||||||
Prepayment assumptions |
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 23.1% to 23.3% for most loan pools
•58.0% for consumer credit cards
|
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 14.9% to 25.6% for most loan pools
•57.2% for consumer credit cards
|
||||||
Qualitative factors |
Added net reserves using qualitative processes related to:
•Loans originated in our expansion markets, loans that are designated as shared national credits, and certain portfolios considered to be COVID-19 impacted.
•Changes in the composition of the loan portfolios
•Loans downgraded to special mention, substandard, or non-accrual status
|
Added reserves using qualitative processes related to:
•Loans originated in our expansion markets
•Loans that are designated as shared national credits
•Loans downgraded to special mention, substandard, or non-accrual status
|
For the Year Ended December 31 | |||||||||||
(In thousands) | Commercial | Personal Banking |
Total
|
||||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS | |||||||||||
Balance at December 31, 2019 | $ | 91,760 | $ | 68,922 | $ | 160,682 | |||||
Adoption of ASU 2016-13 | (29,711) | 8,672 | (21,039) | ||||||||
Balance at December 31, 2019, adjusted | $ | 62,049 | $ | 77,594 | $ | 139,643 | |||||
Provision for credit losses on loans | 63,115 | 52,934 | 116,049 | ||||||||
Deductions: | |||||||||||
Loans charged off | 7,862 | 42,185 | 50,047 | ||||||||
Less recoveries on loans | 4,247 | 10,942 | 15,189 | ||||||||
Net loan charge-offs | 3,615 | 31,243 | 34,858 | ||||||||
Balance December 31, 2020 | $ | 121,549 | $ | 99,285 | $ | 220,834 | |||||
LIABILITY FOR UNFUNDED LENDING COMMITMENTS | |||||||||||
Balance at December 31, 2019 | $ | 399 | $ | 676 | $ | 1,075 | |||||
Adoption of ASU 2016-13 | 16,057 | 33 | 16,090 | ||||||||
Balance at December 31, 2019, adjusted | $ | 16,456 | $ | 709 | $ | 17,165 | |||||
Provision for credit losses on unfunded lending commitments | 20,803 | 339 | 21,142 | ||||||||
Balance December 31, 2020 | $ | 37,259 | $ | 1,048 | $ | 38,307 | |||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS | $ | 158,808 | $ | 100,333 | $ | 259,141 | |||||
(In thousands) |
Commercial
|
Personal Banking
|
Total
|
||||||||
Balance at December 31, 2017 | $ | 93,704 | $ | 65,828 | $ | 159,532 | |||||
Provision for loan losses | 254 | 42,440 | 42,694 | ||||||||
Deductions: | |||||||||||
Loans charged off | 3,164 | 52,657 | 55,821 | ||||||||
Less recoveries | 2,075 | 11,452 | 13,527 | ||||||||
Net loans charged off | 1,089 | 41,205 | 42,294 | ||||||||
Balance at December 31, 2018 | 92,869 | 67,063 | 159,932 | ||||||||
Provision for loan losses | 2,816 | 47,622 | 50,438 | ||||||||
Deductions: | |||||||||||
Loans charged off | 4,711 | 57,169 | 61,880 | ||||||||
Less recoveries | 786 | 11,406 | 12,192 | ||||||||
Net loans charged off | 3,925 | 45,763 | 49,688 | ||||||||
Balance at December 31, 2019 | 91,760 | 68,922 | 160,682 | ||||||||
(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 | ||||||||||||
December 31, 2020 | |||||||||||||||||
Commercial:
|
|||||||||||||||||
Business
|
$ | 6,517,838 | $ | 2,252 | $ | 3,473 | $ | 22,524 | $ | 6,546,087 | |||||||
Real estate – construction and land
|
1,021,592 | — | 3 | — | 1,021,595 | ||||||||||||
Real estate – business
|
3,016,215 | 7,666 | 6 | 2,230 | 3,026,117 | ||||||||||||
Personal Banking:
|
|||||||||||||||||
Real estate – personal
|
2,808,886 | 6,521 | 2,837 | 1,786 | 2,820,030 | ||||||||||||
Consumer
|
1,921,822 | 25,417 | 3,263 | — | 1,950,502 | ||||||||||||
Revolving home equity
|
305,037 | 1,656 | 390 | — | 307,083 | ||||||||||||
Consumer credit card
|
635,770 | 7,090 | 12,218 | — | 655,078 | ||||||||||||
Overdrafts
|
2,896 | 253 | — | — | 3,149 | ||||||||||||
Total
|
$ | 16,230,056 | $ | 50,855 | $ | 22,190 | $ | 26,540 | $ | 16,329,641 | |||||||
December 31, 2019 | |||||||||||||||||
Commercial:
|
|||||||||||||||||
Business
|
$ | 5,545,104 | $ | 12,064 | $ | 792 | $ | 7,489 | $ | 5,565,449 | |||||||
Real estate – construction and land
|
882,826 | 13,046 | 3,503 | 2 | 899,377 | ||||||||||||
Real estate – business
|
2,830,494 | 2,030 | — | 1,030 | 2,833,554 | ||||||||||||
Personal Banking:
|
|||||||||||||||||
Real estate – personal
|
2,345,243 | 6,129 | 1,689 | 1,699 | 2,354,760 | ||||||||||||
Consumer
|
1,928,082 | 34,053 | 2,010 | — | 1,964,145 | ||||||||||||
Revolving home equity
|
347,258 | 1,743 | 250 | — | 349,251 | ||||||||||||
Consumer credit card
|
742,659 | 10,703 | 11,615 | — | 764,977 | ||||||||||||
Overdrafts
|
5,972 | 332 | — | — | 6,304 | ||||||||||||
Total
|
$ | 14,627,638 | $ | 80,100 | $ | 19,859 | $ | 10,220 | $ | 14,737,817 |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
Business | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 2,472,419 | $ | 966,068 | $ | 438,557 | $ | 329,207 | $ | 163,357 | $ | 281,604 | $ | 1,619,680 | $ | 6,270,892 | ||||||||||
Special mention | 28,612 | 26,746 | 14,102 | 1,781 | 5,091 | 1,664 | 41,749 | 119,745 | ||||||||||||||||||
Substandard | 17,246 | 21,985 | 5,076 | 2,675 | 3,578 | 13,390 | 68,976 | 132,926 | ||||||||||||||||||
Non-accrual | 12,619 | 1 | 5,327 | 391 | 502 | 3,659 | 25 | 22,524 | ||||||||||||||||||
Total Business: | $ | 2,530,896 | $ | 1,014,800 | $ | 463,062 | $ | 334,054 | $ | 172,528 | $ | 300,317 | $ | 1,730,430 | $ | 6,546,087 | ||||||||||
Real estate-construction | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 483,302 | $ | 330,480 | $ | 56,747 | $ | 3,021 | $ | 24,426 | $ | 1,692 | $ | 27,356 | $ | 927,024 | ||||||||||
Special mention | 29,692 | — | 1,022 | 34,532 | — | — | — | 65,246 | ||||||||||||||||||
Substandard | 1,154 | — | 14,989 | 13,182 | — | — | — | 29,325 | ||||||||||||||||||
Total Real estate-construction: | $ | 514,148 | $ | 330,480 | $ | 72,758 | $ | 50,735 | $ | 24,426 | $ | 1,692 | $ | 27,356 | $ | 1,021,595 | ||||||||||
Real estate- business | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 890,740 | $ | 666,399 | $ | 336,850 | $ | 241,656 | $ | 313,691 | $ | 199,534 | $ | 67,796 | $ | 2,716,666 | ||||||||||
Special mention | 8,936 | 21,734 | 49,580 | 6,597 | 17,504 | 1,309 | 3,002 | 108,662 | ||||||||||||||||||
Substandard | 46,882 | 1,037 | 4,061 | 81,435 | 17,538 | 45,014 | 2,592 | 198,559 | ||||||||||||||||||
Non-accrual | 478 | 188 | 1,480 | — | — | 84 | — | 2,230 | ||||||||||||||||||
Total Real-estate business: | $ | 947,036 | $ | 689,358 | $ | 391,971 | $ | 329,688 | $ | 348,733 | $ | 245,941 | $ | 73,390 | $ | 3,026,117 | ||||||||||
Commercial loans | ||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||
Pass | $ | 3,846,461 | $ | 1,962,947 | $ | 832,154 | $ | 573,884 | $ | 501,474 | $ | 482,830 | $ | 1,714,832 | $ | 9,914,582 | ||||||||||
Special mention | 67,240 | 48,480 | 64,704 | 42,910 | 22,595 | 2,973 | 44,751 | 293,653 | ||||||||||||||||||
Substandard | 65,282 | 23,022 | 24,126 | 97,292 | 21,116 | 58,404 | 71,568 | 360,810 | ||||||||||||||||||
Non-accrual | 13,097 | 189 | 6,807 | 391 | 502 | 3,743 | 25 | 24,754 | ||||||||||||||||||
Total Commercial loans: | $ | 3,992,080 | $ | 2,034,638 | $ | 927,791 | $ | 714,477 | $ | 545,687 | $ | 547,950 | $ | 1,831,176 | $ | 10,593,799 |
Commercial Loans | ||||||||||||||
(In thousands) | Business | Real Estate -Construction | Real Estate - Business | Total | ||||||||||
December 31, 2019 | ||||||||||||||
Pass | $ | 5,393,928 | $ | 856,364 | $ | 2,659,827 | $ | 8,910,119 | ||||||
Special mention
|
80,089 | 42,541 | 92,626 | 215,256 | ||||||||||
Substandard
|
83,943 | 470 | 80,071 | 164,484 | ||||||||||
Non-accrual
|
7,489 | 2 | 1,030 | 8,521 | ||||||||||
Total
|
$ | 5,565,449 | $ | 899,377 | $ | 2,833,554 | $ | 9,298,380 |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||
Real estate-personal | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 1,123,918 | $ | 488,379 | $ | 218,390 | $ | 201,971 | $ | 227,265 | $ | 544,008 | $ | 11,476 | $ | 2,815,407 | ||||||||||
Over 90 days past due | 534 | 375 | 281 | 411 | 388 | 848 | — | 2,837 | ||||||||||||||||||
Non-accrual | 29 | 191 | 116 | 45 | 65 | 1,340 | — | 1,786 | ||||||||||||||||||
Total Real estate-personal: | $ | 1,124,481 | $ | 488,945 | $ | 218,787 | $ | 202,427 | $ | 227,718 | $ | 546,196 | $ | 11,476 | $ | 2,820,030 | ||||||||||
Consumer | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 536,799 | $ | 337,431 | $ | 161,337 | $ | 115,886 | $ | 75,769 | $ | 86,831 | $ | 633,186 | $ | 1,947,239 | ||||||||||
Over 90 days past due | 212 | 358 | 328 | 220 | 174 | 397 | 1,574 | 3,263 | ||||||||||||||||||
Total Consumer: | $ | 537,011 | $ | 337,789 | $ | 161,665 | $ | 116,106 | $ | 75,943 | $ | 87,228 | $ | 634,760 | $ | 1,950,502 | ||||||||||
Revolving home equity | ||||||||||||||||||||||||||
Current to 90 days past due | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 306,693 | $ | 306,693 | ||||||||||
Over 90 days past due | — | — | — | — | — | — | 390 | 390 | ||||||||||||||||||
Total Revolving home equity: | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 307,083 | $ | 307,083 | ||||||||||
Consumer credit card | ||||||||||||||||||||||||||
Current to 90 days past due | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 642,860 | $ | 642,860 | ||||||||||
Over 90 days past due | — | — | — | — | — | — | 12,218 | 12,218 | ||||||||||||||||||
Total Consumer credit card: | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 655,078 | $ | 655,078 | ||||||||||
Overdrafts | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 3,149 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,149 | ||||||||||
Total Overdrafts: | $ | 3,149 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,149 | ||||||||||
Personal banking loans | ||||||||||||||||||||||||||
Current to 90 days past due | $ | 1,663,866 | $ | 825,810 | $ | 379,727 | $ | 317,857 | $ | 303,034 | $ | 630,839 | $ | 1,594,215 | $ | 5,715,348 | ||||||||||
Over 90 days past due | 746 | 733 | 609 | 631 | 562 | 1,245 | 14,182 | 18,708 | ||||||||||||||||||
Non-accrual | 29 | 191 | 116 | 45 | 65 | 1,340 | — | 1,786 | ||||||||||||||||||
Total Personal banking loans: | $ | 1,664,641 | $ | 826,734 | $ | 380,452 | $ | 318,533 | $ | 303,661 | $ | 633,424 | $ | 1,608,397 | $ | 5,735,842 |
(In thousands) | Business Assets | Future Revenue Streams | Oil & Gas Assets | Total | |||||||||||||
Commercial: | |||||||||||||||||
Business | $ | 13,109 | $ | — | $ | 2,695 | $ | 15,804 | |||||||||
Real estate - business | — | 986 | — | 986 | |||||||||||||
Total | $ | 13,109 | $ | 986 | $ | 2,695 | $ | 16,790 |
Personal Banking Loans | ||||||||||||||
% of Loan Category | ||||||||||||||
|
Real Estate - Personal | Consumer | Revolving Home Equity | Consumer Credit Card | ||||||||||
December 31, 2020 | ||||||||||||||
FICO score:
|
||||||||||||||
Under 600
|
0.8 | % | 2.3 | % | 1.3 | % | 5.0 | % | ||||||
600 – 659
|
1.9 | 4.2 | 2.4 | 12.3 | ||||||||||
660 – 719
|
8.8 | 14.1 | 8.6 | 31.2 | ||||||||||
720 – 779
|
24.5 | 23.9 | 22.2 | 28.0 | ||||||||||
780 and over
|
64.0 | 55.5 | 65.5 | 23.5 | ||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
December 31, 2019 | ||||||||||||||
FICO score:
|
||||||||||||||
Under 600
|
1.0 | % | 3.0 | % | 1.7 | % | 5.6 | % | ||||||
600 – 659
|
1.9 | 5.2 | 1.9 | 14.3 | ||||||||||
660 – 719
|
9.2 | 15.4 | 9.0 | 32.2 | ||||||||||
720 – 779
|
25.7 | 27.0 | 21.5 | 26.6 | ||||||||||
780 and over
|
62.2 | 49.4 | 65.9 | 21.3 | ||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
December 31 | |||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Accruing loans: | |||||||||||
Commercial
|
$ | 117,740 | $ | 55,934 | |||||||
Assistance programs
|
7,804 | 8,365 | |||||||||
Consumer bankruptcy
|
2,841 | 3,592 | |||||||||
Other consumer
|
2,353 | 3,621 | |||||||||
Non-accrual loans
|
9,889 | 7,938 | |||||||||
Total troubled debt restructurings
|
$ | 140,627 | $ | 79,450 |
(In thousands) | December 31, 2020 | Balance 90 days past due at any time during previous 12 months | ||||||
Commercial:
|
||||||||
Business
|
$ | 71,088 | $ | 664 | ||||
Real estate – construction and land
|
40 | — | ||||||
Real estate – business
|
55,306 | — | ||||||
Personal Banking:
|
||||||||
Real estate – personal
|
3,222 | 242 | ||||||
Consumer
|
3,365 | 242 | ||||||
Revolving home equity
|
28 | — | ||||||
Consumer credit card
|
7,578 | 721 | ||||||
Total troubled debt restructurings
|
$ | 140,627 | $ | 1,869 |
(In thousands) | Dec. 31, 2019 | |||||||
Non-accrual loans
|
$ | 10,220 | ||||||
Restructured loans (accruing) | 71,512 | |||||||
Total impaired loans
|
$ | 81,732 |
Impaired Loans | All Other Loans | ||||||||||||||||
(In thousands)
|
Allowance for Loan Losses | Loans Outstanding | Allowance for Loan Losses | Loans Outstanding | |||||||||||||
December 31, 2019 | |||||||||||||||||
Commercial | $ | 1,629 | $ | 64,500 | $ | 90,131 | $ | 9,233,880 | |||||||||
Personal Banking | 1,117 | 17,232 | 67,805 | 5,422,205 | |||||||||||||
Total | $ | 2,746 | $ | 81,732 | $ | 157,936 | $ | 14,656,085 |
(In thousands)
|
Recorded Investment |
Unpaid Principal Balance
|
Related Allowance
|
||||||||
December 31, 2019 | |||||||||||
With no related allowance recorded:
|
|||||||||||
Business
|
$ | 7,054 | $ | 13,738 | $ | — | |||||
$ | 7,054 | $ | 13,738 | $ | — | ||||||
With an allowance recorded: | |||||||||||
Business
|
$ | 30,437 | $ | 30,487 | $ | 837 | |||||
Real estate – construction and land
|
46 | 51 | 1 | ||||||||
Real estate – business
|
26,963 | 27,643 | 791 | ||||||||
Real estate – personal
|
4,729 | 5,968 | 258 | ||||||||
Consumer
|
4,421 | 4,421 | 35 | ||||||||
Revolving home equity
|
35 | 35 | 1 | ||||||||
Consumer credit card
|
8,047 | 8,047 | 823 | ||||||||
$ | 74,678 | $ | 76,652 | $ | 2,746 | ||||||
Total
|
$ | 81,732 | $ | 90,390 | $ | 2,746 |
2019 | |||||||||||||||||||||||
(In thousands)
|
Commercial | Personal Banking | Total | ||||||||||||||||||||
Average impaired loans: | |||||||||||||||||||||||
Non-accrual loans | $ | 9,892 | $ | 2,031 | $ | 11,923 | |||||||||||||||||
Restructured loans (accruing) | 49,544 | 15,667 | 65,211 | ||||||||||||||||||||
Total | $ | 59,436 | $ | 17,698 | $ | 77,134 |
Years Ended December 31 | |||||||||||
(In thousands) | 2019 | 2018 | |||||||||
Interest income recognized on impaired loans: | |||||||||||
Business | $ | 1,329 | $ | 2,219 | |||||||
Real estate – construction and land | 2 | 25 | |||||||||
Real estate – business | 1,456 | 558 | |||||||||
Real estate – personal | 136 | 139 | |||||||||
Consumer | 286 | 305 | |||||||||
Revolving home equity | 3 | 3 | |||||||||
Consumer credit card | 828 | 746 | |||||||||
Total | $ | 4,040 | $ | 3,995 |
(In thousands)
|
2020 | 2019 | ||||||
Available for sale debt securities | $ | 12,449,264 | $ | 8,571,626 | ||||
Trading debt securities | 35,321 | 28,161 | ||||||
Equity securities: | ||||||||
Readily determinable fair value | 2,966 | 2,929 | ||||||
No readily determinable fair value | 1,397 | 1,280 | ||||||
Other: | ||||||||
Federal Reserve Bank stock | 34,070 | 33,770 | ||||||
Federal Home Loan Bank stock | 10,307 | 10,000 | ||||||
Equity method investments | 18,000 | — | ||||||
Private equity investments | 94,368 | 94,122 | ||||||
Total investment securities (1)
|
$ | 12,645,693 | $ | 8,741,888 |
(Dollars in thousands)
|
Amortized Cost
|
Fair Value
|
Weighted Average Yield
|
||||||||
U.S. government and federal agency obligations: | |||||||||||
Within 1 year | $ | 59,627 | $ | 59,641 | .90 | *% | |||||
After 1 but within 5 years | 490,333 | 521,540 | 2.22 | * | |||||||
After 5 but within 10 years | 225,632 | 256,878 | .65 | * | |||||||
Total U.S. government and federal agency obligations
|
775,592 | 838,059 | 1.66 | * | |||||||
Government-sponsored enterprise obligations: | |||||||||||
Within 1 year | 14,993 | 14,916 | 2.15 | ||||||||
After 10 years | 35,810 | 39,569 | 2.39 | ||||||||
Total government-sponsored enterprise obligations
|
50,803 | 54,485 | 2.32 | ||||||||
State and municipal obligations: | |||||||||||
Within 1 year | 34,694 | 34,866 | 2.35 | ||||||||
After 1 but within 5 years | 865,165 | 901,201 | 2.20 | ||||||||
After 5 but within 10 years | 595,510 | 627,063 | 2.01 | ||||||||
After 10 years | 472,637 | 481,969 | 1.84 | ||||||||
Total state and municipal obligations
|
1,968,006 | 2,045,099 | 2.06 | ||||||||
Mortgage and asset-backed securities:
|
|||||||||||
Agency mortgage-backed securities | 6,557,098 | 6,712,085 | 2.00 | ||||||||
Non-agency mortgage-backed securities | 358,074 | 361,074 | 2.39 | ||||||||
Asset-backed securities | 1,853,791 | 1,882,243 | 1.53 | ||||||||
Total mortgage and asset-backed securities
|
8,768,963 | 8,955,402 | 1.92 | ||||||||
Other debt securities:
|
|||||||||||
Within 1 year | 8,041 | 8,118 | |||||||||
After 1 but within 5 years | 254,173 | 265,486 | |||||||||
After 5 but within 10 years | 240,759 | 250,036 | |||||||||
After 10 years | 31,196 | 32,579 | |||||||||
Total other debt securities
|
534,169 | 556,219 | |||||||||
Total available for sale debt securities
|
$ | 12,097,533 | $ | 12,449,264 |
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||
(In thousands)
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Government-sponsored enterprise obligations | $ | 19,720 | $ | 98 | $ | — | $ | — | $ | 19,720 | $ | 98 | ||||||||||||||
State and municipal obligations | 45,622 | 230 | — | — | 45,622 | 230 | ||||||||||||||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||||||||
Agency mortgage-backed securities | 470,373 | 2,802 | — | — | 470,373 | 2,802 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 112,861 | 380 | — | — | 112,861 | 380 | ||||||||||||||||||||
Asset-backed securities | 21,360 | 56 | 253,734 | 2,617 | 275,094 | 2,673 | ||||||||||||||||||||
Total mortgage and asset-backed securities
|
604,594 | 3,238 | 253,734 | 2,617 | 858,328 | 5,855 | ||||||||||||||||||||
Other debt securities
|
24,522 | 175 | — | — | 24,522 | 175 | ||||||||||||||||||||
Total
|
$ | 694,458 | $ | 3,741 | $ | 253,734 | $ | 2,617 | $ | 948,192 | $ | 6,358 | ||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||
(In thousands)
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
U.S. government and federal agency obligations | $ | 31,787 | $ | 21 | $ | 25,405 | $ | 21 | $ | 57,192 | $ | 42 | ||||||||||||||
Government-sponsored enterprise obligations | 6,155 | 187 | — | — | 6,155 | 187 | ||||||||||||||||||||
State and municipal obligations | 6,700 | 31 | 1,554 | 1 | 8,254 | 32 | ||||||||||||||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||||||||
Agency mortgage-backed securities | 652,352 | 5,306 | 147,653 | 867 | 800,005 | 6,173 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 102,931 | 254 | 189,747 | 451 | 292,678 | 705 | ||||||||||||||||||||
Asset-backed securities | 330,876 | 3,610 | 152,461 | 2,108 | 483,337 | 5,718 | ||||||||||||||||||||
Total mortgage and asset-backed securities | 1,086,159 | 9,170 | 489,861 | 3,426 | 1,576,020 | 12,596 | ||||||||||||||||||||
Other debt securities | 5,496 | 4 | 997 | 3 | 6,493 | 7 | ||||||||||||||||||||
Total | $ | 1,136,297 | $ | 9,413 | $ | 517,817 | $ | 3,451 | $ | 1,654,114 | $ | 12,864 |
(In thousands)
|
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||
December 31, 2020 | |||||||||||||||||
U.S. government and federal agency obligations | $ | 775,592 | $ | 62,467 | $ | — | $ | — | $ | 838,059 | |||||||
Government-sponsored enterprise obligations | 50,803 | 3,780 | (98) | — | 54,485 | ||||||||||||
State and municipal obligations | 1,968,006 | 77,323 | (230) | — | 2,045,099 | ||||||||||||
Mortgage and asset-backed securities: | |||||||||||||||||
Agency mortgage-backed securities | 6,557,098 | 157,789 | (2,802) | — | 6,712,085 | ||||||||||||
Non-agency mortgage-backed securities | 358,074 | 3,380 | (380) | — | 361,074 | ||||||||||||
Asset-backed securities | 1,853,791 | 31,125 | (2,673) | — | 1,882,243 | ||||||||||||
Total mortgage and asset-backed securities
|
8,768,963 | 192,294 | (5,855) | — | 8,955,402 | ||||||||||||
Other debt securities
|
534,169 | 22,225 | (175) | — | 556,219 | ||||||||||||
Total
|
$ | 12,097,533 | $ | 358,089 | $ | (6,358) | $ | — | $ | 12,449,264 | |||||||
(In thousands)
|
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
December 31, 2019 | ||||||||||||||
U.S. government and federal agency obligations | $ | 827,861 | $ | 23,957 | $ | (42) | $ | 851,776 | ||||||
Government-sponsored enterprise obligations | 138,734 | 730 | (187) | 139,277 | ||||||||||
State and municipal obligations | 1,225,532 | 42,427 | (32) | 1,267,927 | ||||||||||
Mortgage and asset-backed securities: | ||||||||||||||
Agency mortgage-backed securities | 3,893,247 | 50,890 | (6,173) | 3,937,964 | ||||||||||
Non-agency mortgage-backed securities | 796,451 | 14,036 | (705) | 809,782 | ||||||||||
Asset-backed securities | 1,228,151 | 11,056 | (5,718) | 1,233,489 | ||||||||||
Total mortgage and asset-backed securities
|
5,917,849 | 75,982 | (12,596) | 5,981,235 | ||||||||||
Other debt securities
|
325,555 | 5,863 | (7) | 331,411 | ||||||||||
Total
|
$ | 8,435,531 | $ | 148,959 | $ | (12,864) | $ | 8,571,626 |
For the Year Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Proceeds from sales of securities:
|
|||||||||||
Available for sale debt securities
|
$ | 602,475 | $ | 402,103 | $ | 667,227 | |||||
Equity securities
|
2 | 3,856 | 41,637 | ||||||||
Other
|
— | 7,244 | — | ||||||||
Total proceeds
|
$ | 602,477 | $ | 413,203 | $ | 708,864 | |||||
Investment securities gains (losses), net: | |||||||||||
Available for sale debt securities: | |||||||||||
Gains realized on sales | $ | 21,096 | $ | 2,354 | $ | 448 | |||||
Losses realized on sales | — | (2,568) | (10,101) | ||||||||
Other-than-temporary impairment recognized on debt securities | — | (133) | (68) | ||||||||
Equity securities:
|
|||||||||||
Gains realized on sales | 2 | 3,262 | 1,759 | ||||||||
Losses realized on sales
|
— | — | (8,917) | ||||||||
Fair value adjustments, net
|
37 | 344 | 2,542 | ||||||||
Other:
|
|||||||||||
Gains realized on sales
|
— | 1,094 | — | ||||||||
Fair value adjustments, net | (10,103) | (727) | 13,849 | ||||||||
Total investment securities gains (losses), net | $ | 11,032 | $ | 3,626 | $ | (488) |
(In thousands) | 2020 | 2019 | ||||||
Land | $ | 93,492 | $ | 91,678 | ||||
Buildings and improvements | 582,056 | 566,177 | ||||||
Equipment | 239,216 | 237,047 | ||||||
Right of use leased assets | 29,589 | 28,195 | ||||||
Total | 944,353 | 923,097 | ||||||
Less accumulated depreciation
|
573,270 | 552,460 | ||||||
Net premises and equipment
|
$ | 371,083 | $ | 370,637 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
(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
|
$ | 31,270 | $ | (29,912) | $ | — | $ | 1,358 | $ | 31,270 | $ | (29,485) | $ | — | $ | 1,785 | ||||||||||||||||||||||||||||||||||
Mortgage servicing rights
|
15,238 | (6,886) | (2,103) | 6,249 | 12,942 | (4,866) | (327) | 7,749 | ||||||||||||||||||||||||||||||||||||||||||
Total
|
$ | 46,508 | $ | (36,798) | $ | (2,103) | $ | 7,607 | $ | 44,212 | $ | (34,351) | $ | (327) | $ | 9,534 |
(In thousands) | December 31, 2020 | December 31, 2019 | ||||||
Consumer segment | $ | 70,721 | $ | 70,721 | ||||
Commercial segment | 67,454 | 67,454 | ||||||
Wealth segment | 746 | 746 | ||||||
Total goodwill | $ | 138,921 | $ | 138,921 |
(In thousands)
|
Goodwill
|
Easement |
Core Deposit Premium
|
Mortgage Servicing Rights
|
||||||||||
Balance at December 31, 2018 | $ | 138,921 | $ | — | $ | 2,316 | $ | 6,478 | ||||||
Originations | — | — | — | 2,603 | ||||||||||
Amortization | — | — | (531) | (1,005) | ||||||||||
Impairment | — | — | — | (327) | ||||||||||
Balance at December 31, 2019 | 138,921 | — | 1,785 | 7,749 | ||||||||||
Originations | — | 3,600 | — | 2,296 | ||||||||||
Amortization | — | — | (427) | (2,020) | ||||||||||
Impairment | — | — | — | (1,776) | ||||||||||
Balance at December 31, 2020 | $ | 138,921 | $ | 3,600 | $ | 1,358 | $ | 6,249 |
December 31, 2020 | December 31, 2019 | |||||||
Weighted-average remaining lease term | 11.3 years | 11.7 years | ||||||
Weighted-average discount rate | 3.29 | % | 3.67 | % |
For the Year Ended December 31 | ||||||||
(in thousands) | 2020 | 2019 | ||||||
Operating cash paid toward lease liabilities | $ | 6,213 | 5,989 | |||||
Leased assets obtained in exchange for new lease liabilities | $ | 7,482 | 3,958 |
(in thousands) | |||||
Year Ended December 31 | Total | ||||
2019 | $ | 5,763 | |||
2020 | 4,817 | ||||
2021 | 4,055 | ||||
2022 | 3,598 | ||||
2023 | 3,273 | ||||
After | 15,161 | ||||
Total minimum lease payments | $ | 36,667 |
For the Year Ended December 31 | ||||||||
(in thousands) | 2020 | 2019 | ||||||
Direct financing and sales-type leases | 25,380 | 24,062 | ||||||
Operating leases(1)
|
8,589 | 7,951 | ||||||
Total lease income | $ | 33,969 | $ | 32,013 |
(in thousands) | December 31, 2020 | December 31, 2019 | |||||||||
Lease payment receivable | $ | 729,649 | $ | 738,809 | |||||||
Unguaranteed residual assets | 64,211 | 53,408 | |||||||||
Total net investments in direct financing and sales-type leases | $ | 793,860 | $ | 792,217 | |||||||
Deferred origination cost | 3,581 | 3,609 | |||||||||
Total net investment included within business loans | $ | 797,441 | $ | 795,826 |
(in thousands) | Direct Financing and Sale-Type Leases | Operating Leases | Total | ||||||||
2021 | $ | 229,175 | $ | 7,729 | $ | 236,904 | |||||
2022 | 187,212 | 14,148 | 201,360 | ||||||||
2023 | 119,628 | 5,845 | 125,473 | ||||||||
2024 | 87,937 | 5,113 | 93,050 | ||||||||
2025 | 56,777 | 3,168 | 59,945 | ||||||||
After 2025 | 106,940 | 6,055 | 112,995 | ||||||||
Total lease receipts | 787,669 | $ | 42,058 | $ | 829,727 | ||||||
Less: Net present value adjustment | 58,020 | ||||||||||
Present value of lease receipts | $ | 729,649 |
(In thousands) | |||||
Due in 2021 | $ | 1,627,852 | |||
Due in 2022 | 168,882 | ||||
Due in 2023 | 24,460 | ||||
Due in 2024 | 9,008 | ||||
Due in 2025 | 14,432 | ||||
Thereafter | 57 | ||||
Total | $ | 1,844,691 |
(In thousands)
|
Certificates of Deposit under $100,000 | Certificates of Deposit over $100,000 | Total | ||||||||
Due in 3 months or less | $ | 118,161 | $ | 638,346 | $ | 756,507 | |||||
Due in over 3 through 6 months | 118,141 | 381,740 | 499,881 | ||||||||
Due in over 6 through 12 months | 166,576 | 204,888 | 371,464 | ||||||||
Due in over 12 months | 126,924 | 89,915 | 216,839 | ||||||||
Total | $ | 529,802 | $ | 1,314,889 | $ | 1,844,691 |
(Dollars in thousands)
|
Year End Weighted Rate | Average Weighted Rate | Average Balance Outstanding | Maximum Outstanding at any Month End | Balance at December 31 | ||||||||||||
Federal funds purchased and repurchase agreements: | |||||||||||||||||
2020 | .04 | % | .3 | % | $ | 1,966,479 | $ | 2,314,756 | $ | 2,098,383 | |||||||
2019 | .8 | 1.6 | 1,822,098 | 2,394,294 | 1,850,772 | ||||||||||||
2018 | .9 | 1.3 | 1,514,144 | 1,981,761 | 1,956,389 |
(In thousands) | Current | Deferred | Total | ||||||||
Year ended December 31, 2020: | |||||||||||
U.S. federal | $ | 92,035 | $ | (14,055) | $ | 77,980 | |||||
State and local | 14,798 | (5,485) | 9,313 | ||||||||
Total | $ | 106,833 | $ | (19,540) | $ | 87,293 | |||||
Year ended December 31, 2019: | |||||||||||
U.S. federal | $ | 82,556 | $ | 11,388 | $ | 93,944 | |||||
State and local | 12,323 | 2,807 | 15,130 | ||||||||
Total | $ | 94,879 | $ | 14,195 | $ | 109,074 | |||||
Year ended December 31, 2018: | |||||||||||
U.S. federal | $ | 90,390 | $ | 3,220 | $ | 93,610 | |||||
State and local | 10,223 | 2,116 | 12,339 | ||||||||
Total | $ | 100,613 | $ | 5,336 | $ | 105,949 |
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Unrealized gain (loss) on available for sale debt securities
|
$ | 53,909 | $ | 50,163 | $ | (18,634) | |||||
Change in fair value on cash flow hedges
|
20,795 | 7,818 | 2,286 | ||||||||
Accumulated pension (benefit) loss
|
(1,059) | 389 | 222 | ||||||||
Adoption of ASU 2016-13
|
$ | 1,183 | $ | — | $ | — | |||||
Income tax (benefit) expense allocated to stockholders’ equity
|
$ | 74,828 | $ | 58,370 | $ | (16,126) |
(In thousands) | 2020 | 2019 | ||||||
Deferred tax assets:
|
||||||||
Loans, principally due to allowance for credit losses | $ | 62,849 | $ | 39,387 | ||||
Equity-based compensation | 7,870 | 7,554 | ||||||
Deferred compensation | 7,173 | 6,662 | ||||||
Accrued Expenses | 5,569 | 4,013 | ||||||
Unearned fee income | 5,329 | 5,053 | ||||||
Other | 6,648 | 4,057 | ||||||
Total deferred tax assets
|
95,438 | 66,726 | ||||||
Deferred tax liabilities:
|
||||||||
Unrealized gain on securities available for sale | 87,933 | 34,024 | ||||||
Equipment lease financing | 74,538 | 68,814 | ||||||
Cash flow hedges | 29,382 | 9,015 | ||||||
Land, buildings and equipment | 20,114 | 17,202 | ||||||
Intangibles | 7,015 | 6,491 | ||||||
Other | 7,895 | 7,331 | ||||||
Total deferred tax liabilities
|
226,877 | 142,877 | ||||||
Net deferred tax liabilities
|
$ | (131,439) | $ | (76,151) |
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Computed “expected” tax expense
|
$ | 92,683 | $ | 111,364 | $ | 113,293 | |||||
Increase (decrease) in income taxes resulting from:
|
|||||||||||
Tax-exempt interest, net of cost to carry | (10,013) | (10,973) | (11,502) | ||||||||
State and local income taxes, net of federal tax benefit | 7,357 | 11,953 | 9,748 | ||||||||
Share-based award payments | (3,090) | (3,337) | (3,928) | ||||||||
Other | 356 | 67 | (1,662) | ||||||||
Total income tax expense
|
$ | 87,293 | $ | 109,074 | $ | 105,949 |
(In thousands) | 2020 | 2019 | ||||||
Unrecognized tax benefits at beginning of year | $ | 1,372 | $ | 1,257 | ||||
Gross increases – tax positions in prior period | 3 | 18 | ||||||
Gross decreases – tax positions in prior period | (51) | (4) | ||||||
Gross increases – current-period tax positions | 266 | 361 | ||||||
Lapse of statute of limitations | (259) | (260) | ||||||
Unrecognized tax benefits at end of year | $ | 1,331 | $ | 1,372 |
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Payroll taxes | $ | 27,664 | $ | 26,959 | $ | 25,712 | |||||
Medical plans | 30,002 | 29,635 | 27,030 | ||||||||
401(k) plan | 16,834 | 15,810 | 14,986 | ||||||||
Pension plans | 410 | 605 | 651 | ||||||||
Other | 1,990 | 3,049 | 2,918 | ||||||||
Total employee benefits
|
$ | 76,900 | $ | 76,058 | $ | 71,297 |
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Service cost-benefits earned during the year | $ | 410 | $ | 607 | $ | 651 | |||||
Interest cost on projected benefit obligation | 3,282 | 4,198 | 3,756 | ||||||||
Expected return on plan assets | (5,214) | (4,842) | (5,255) | ||||||||
Amortization of prior service cost | (271) | (271) | (271) | ||||||||
Amortization of unrecognized net loss | 2,138 | 2,288 | 2,267 | ||||||||
Net periodic pension cost | $ | 345 | $ | 1,980 | $ | 1,148 |
(In thousands)
|
2020 | 2019 | ||||||
Change in projected benefit obligation | ||||||||
Projected benefit obligation at prior valuation date
|
$ | 120,602 | $ | 112,063 | ||||
Service cost
|
410 | 607 | ||||||
Interest cost
|
3,282 | 4,198 | ||||||
Benefits paid
|
(6,765) | (7,016) | ||||||
Actuarial (gain) loss
|
9,634 | 10,750 | ||||||
Projected benefit obligation at valuation date
|
127,163 | 120,602 | ||||||
Change in plan assets | ||||||||
Fair value of plan assets at prior valuation date
|
107,556 | 99,418 | ||||||
Actual return on plan assets
|
8,744 | 15,129 | ||||||
Employer contributions
|
80 | 25 | ||||||
Benefits paid
|
(6,765) | (7,016) | ||||||
Fair value of plan assets at valuation date
|
109,615 | 107,556 | ||||||
Funded status and net amount recognized at valuation date
|
$ | (17,548) | $ | (13,046) |
(In thousands) | 2020 | 2019 | ||||||
Prior service cost | $ | 994 | $ | 1,265 | ||||
Accumulated loss | (34,482) | (30,516) | ||||||
Accumulated other comprehensive loss
|
(33,488) | (29,251) | ||||||
Cumulative employer contributions in excess of net periodic benefit cost | 15,940 | 16,205 | ||||||
Net amount recognized as an accrued benefit liability on the December 31 balance sheet
|
$ | (17,548) | $ | (13,046) | ||||
Net loss arising during period
|
(6,104) | (461) | ||||||
Amortization of net loss
|
2,138 | 2,288 | ||||||
Amortization of prior service cost
|
(271) | (271) | ||||||
Total recognized in other comprehensive income
|
$ | (4,237) | $ | 1,556 | ||||
Total expense recognized in net periodic pension cost and other comprehensive income
|
$ | (4,582) | $ | (424) |
2020 | 2019 | 2018 | |||||||||
Determination of benefit obligation at year end:
|
|||||||||||
Effective discount rate for benefit obligations | 2.25 | % | 3.07 | % | 4.14 | % | |||||
Assumed credit on cash balance accounts | 5.00 | % | 5.00 | % | 5.00 | % | |||||
Determination of net periodic benefit cost for year ended:
|
|||||||||||
Effective discount rate for benefit obligations | 3.08 | % | 4.13 | % | 3.57 | % | |||||
Effective rate for interest on benefit obligations | 2.69 | % | 3.81 | % | 3.28 | % | |||||
Long-term rate of return on assets | 5.00 | % | 5.00 | % | 5.00 | % | |||||
Assumed credit on cash balance accounts | 5.00 | % | 5.00 | % | 5.00 | % |
Fair Value Measurements | ||||||||||||||
(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)
|
||||||||||
December 31, 2020 | ||||||||||||||
Assets:
|
||||||||||||||
U.S. government obligations | $ | 5,306 | $ | 5,306 | $ | — | $ | — | ||||||
Government-sponsored enterprise obligations (a)
|
2,142 | — | 2,142 | — | ||||||||||
State and municipal obligations | 9,471 | — | 9,471 | — | ||||||||||
Agency mortgage-backed securities (b)
|
6,984 | — | 6,984 | — | ||||||||||
Non-agency mortgage-backed securities | 2,225 | — | 2,225 | — | ||||||||||
Asset-backed securities | 6,090 | — | 6,090 | — | ||||||||||
Corporate bonds (c)
|
41,278 | — | 41,278 | — | ||||||||||
Equity securities and mutual funds: (d)
|
||||||||||||||
Mutual funds | 5,584 | 5,584 | — | — | ||||||||||
Common stocks | 24,991 | 24,991 | — | — | ||||||||||
International developed markets funds | 1,976 | 1,976 | — | — | ||||||||||
Emerging markets funds | 3,568 | 3,568 | — | — | ||||||||||
Total
|
$ | 109,615 | $ | 41,425 | $ | 68,190 | $ | — | ||||||
December 31, 2019 | ||||||||||||||
Assets:
|
||||||||||||||
U.S. government obligations
|
$ | 4,746 | $ | 4,746 | $ | — | $ | — | ||||||
Government-sponsored enterprise obligations (a)
|
1,302 | — | 1,302 | — | ||||||||||
State and municipal obligations
|
8,612 | — | 8,612 | — | ||||||||||
Agency mortgage-backed securities (b)
|
8,892 | — | 8,892 | — | ||||||||||
Non-agency mortgage-backed securities
|
3,919 | — | 3,919 | — | ||||||||||
Asset-backed securities
|
5,093 | — | 5,093 | — | ||||||||||
Corporate bonds (c)
|
39,663 | — | 39,663 | — | ||||||||||
Equity securities and mutual funds: (d)
|
||||||||||||||
Mutual funds | 6,315 | 6,315 | — | — | ||||||||||
Common stocks | 22,552 | 22,552 | — | — | ||||||||||
International developed markets funds | 4,674 | 4,674 | — | — | ||||||||||
Emerging markets funds | 1,788 | 1,788 | — | — | ||||||||||
Total
|
$ | 107,556 | $ | 40,075 | $ | 67,481 | $ | — |
|
Shares
|
Weighted Average Grant Date Fair Value | ||||||
Nonvested at January 1, 2020 | 1,159,180 | $ | 45.30 | |||||
Granted | 244,468 | 60.90 | ||||||
Vested | (292,100) | 32.40 | ||||||
Forfeited | (11,682) | 51.77 | ||||||
Nonvested at December 31, 2020 | 1,099,866 | $ | 52.11 |
(Dollars in thousands, except per share data)
|
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
Outstanding at January 1, 2020 | 1,101,905 | $ | 41.48 | ||||||||||||||
Granted
|
108,262 | 60.17 | |||||||||||||||
Forfeited
|
(7,717) | 55.27 | |||||||||||||||
Expired
|
(576) | 51.70 | |||||||||||||||
Exercised
|
(195,978) | 33.43 | |||||||||||||||
Outstanding at December 31, 2020 | 1,005,896 | $ | 44.95 | 6.2 | years | $ | 20,875 | ||||||||||
Exercisable at December 31, 2020 | 600,469 | $ | 38.30 | 5.0 | years | $ | 16,452 | ||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Intrinsic value of options and SARs exercised
|
$ | 6,278 | $ | 7,109 | $ | 9,632 | |||||
Tax benefit realized from options and SARs exercised
|
$ | 1,252 | $ | 1,385 | $ | 1,928 |
Unrealized Gains (Losses) on Securities (1) | Pension Loss | Unrealized Gains on Cash Flow Hedge Derivatives (2) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
(In thousands) | OTTI | Other | ||||||||||||||||||||||||
Balance January 1, 2020 | $ | 3,264 | $ | 98,809 | $ | (21,940) | $ | 30,311 | $ | 110,444 | ||||||||||||||||
Adoption of ASU 2016-13 | (3,264) | 3,264 | — | — | — | |||||||||||||||||||||
Balance January 1, 2020, adjusted | $ | — | $ | 102,073 | $ | (21,940) | $ | 30,311 | $ | 110,444 | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | — | 236,733 | (6,104) | 93,497 | 324,126 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (21,096) | 1,867 | (10,319) | (29,548) | |||||||||||||||||||||
Current period other comprehensive income (loss), before tax
|
— | 215,637 | (4,237) | 83,178 | 294,578 | |||||||||||||||||||||
Income tax (expense) benefit | — | (53,909) | 1,059 | (20,795) | (73,645) | |||||||||||||||||||||
Current period other comprehensive income (loss), net of tax
|
— | 161,728 | (3,178) | 62,383 | 220,933 | |||||||||||||||||||||
Balance December 31, 2020 | $ | — | $ | 263,801 | $ | (25,118) | $ | 92,694 | $ | 331,377 | ||||||||||||||||
Balance January 1, 2019 | $ | 3,861 | $ | (52,278) | $ | (23,107) | $ | 6,855 | $ | (64,669) | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | (975) | 201,280 | (461) | 27,481 | 227,325 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 133 | 215 | 2,017 | 3,793 | 6,158 | |||||||||||||||||||||
Current period other comprehensive income (loss), before tax
|
(842) | 201,495 | 1,556 | 31,274 | 233,483 | |||||||||||||||||||||
Income tax (expense) benefit | 210 | (50,373) | (389) | (7,818) | (58,370) | |||||||||||||||||||||
Current period other comprehensive income (loss), net of tax
|
(632) | 151,122 | 1,167 | 23,456 | 175,113 | |||||||||||||||||||||
Transfer of unrealized gain on securities for which impairment was not previously recognized
|
35 | (35) | — | — | — | |||||||||||||||||||||
Balance December 31, 2019 | $ | 3,264 | $ | 98,809 | $ | (21,940) | $ | 30,311 | $ | 110,444 |
(In thousands)
|
Consumer
|
Commercial
|
Wealth
|
Segment Totals
|
Other/Elimination
|
Consolidated Totals
|
||||||||||||||
Year ended December 31, 2020: | ||||||||||||||||||||
Net interest income
|
$ | 321,040 | $ | 414,724 | $ | 57,925 | $ | 793,689 | $ | 36,158 | $ | 829,847 | ||||||||
Provision for credit losses
|
(31,220) | (3,724) | 12 | (34,932) | (102,258) | (137,190) | ||||||||||||||
Non-interest income
|
148,568 | 194,517 | 188,948 | 532,033 | (26,166) | 505,867 | ||||||||||||||
Investment securities gains, net
|
— | — | — | — | 11,032 | 11,032 | ||||||||||||||
Non-interest expense
|
(297,724) | (316,074) | (124,964) | (738,762) | (29,616) | (768,378) | ||||||||||||||
Income before income taxes
|
$ | 140,664 | $ | 289,443 | $ | 121,921 | $ | 552,028 | $ | (110,850) | $ | 441,178 | ||||||||
Year ended December 31, 2019: | ||||||||||||||||||||
Net interest income
|
$ | 315,782 | $ | 343,233 | $ | 47,863 | $ | 706,878 | $ | 114,415 | $ | 821,293 | ||||||||
Provision for loan losses
|
(44,987) | (4,204) | (174) | (49,365) | (1,073) | (50,438) | ||||||||||||||
Non-interest income
|
135,257 | 203,952 | 180,836 | 520,045 | 4,658 | 524,703 | ||||||||||||||
Investment securities gains, net
|
— | — | — | — | 3,626 | 3,626 | ||||||||||||||
Non-interest expense
|
(297,398) | (309,163) | (122,784) | (729,345) | (38,053) | (767,398) | ||||||||||||||
Income before income taxes
|
$ | 108,654 | $ | 233,818 | $ | 105,741 | $ | 448,213 | $ | 83,573 | $ | 531,786 | ||||||||
Year ended December 31, 2018: | ||||||||||||||||||||
Net interest income
|
$ | 294,798 | $ | 344,972 | $ | 46,990 | $ | 686,760 | $ | 137,065 | $ | 823,825 | ||||||||
Provision for loan losses
|
(40,571) | (1,134) | 32 | (41,673) | (1,021) | (42,694) | ||||||||||||||
Non-interest income
|
126,253 | 202,527 | 169,844 | 498,624 | 2,717 | 501,341 | ||||||||||||||
Investment securities losses, net
|
— | — | — | — | (488) | (488) | ||||||||||||||
Non-interest expense
|
(286,181) | (297,847) | (122,247) | (706,275) | (31,546) | (737,821) | ||||||||||||||
Income before income taxes
|
$ | 94,299 | $ | 248,518 | $ | 94,619 | $ | 437,436 | $ | 106,727 | $ | 544,163 |
(In thousands) | Consumer | Commercial | Wealth | Segment Totals | Other/Elimination | Consolidated Totals | ||||||||||||||
Average balances for 2020: | ||||||||||||||||||||
Assets
|
$ | 2,238,473 | $ | 10,937,391 | $ | 1,406,416 | $ | 14,582,280 | $ | 15,034,417 | $ | 29,616,697 | ||||||||
Loans, including held for sale
|
2,099,784 | 10,565,800 | 1,395,766 | 14,061,350 | 1,854,183 | 15,915,533 | ||||||||||||||
Goodwill and other intangible assets
|
78,353 | 67,956 | 746 | 147,055 | 315 | 147,370 | ||||||||||||||
Deposits
|
11,282,164 | 9,937,985 | 2,271,166 | 23,491,315 | 6,162 | 23,497,477 | ||||||||||||||
Average balances for 2019: | ||||||||||||||||||||
Assets
|
$ | 2,375,326 | $ | 9,486,074 | $ | 1,288,387 | $ | 13,149,787 | $ | 12,063,738 | $ | 25,213,525 | ||||||||
Loans, including held for sale
|
2,239,100 | 9,250,645 | 1,276,839 | 12,766,584 | 1,476,630 | 14,243,214 | ||||||||||||||
Goodwill and other intangible assets
|
79,055 | 68,109 | 746 | 147,910 | — | 147,910 | ||||||||||||||
Deposits
|
10,236,257 | 7,848,367 | 1,832,418 | 19,917,042 | (7,151) | 19,909,891 |
(In thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||
Basic income per common share: | |||||||||||
Net income attributable to Commerce Bancshares, Inc. | $ | 354,057 | $ | 421,231 | $ | 433,542 | |||||
Less preferred stock dividends | 11,966 | 9,000 | 9,000 | ||||||||
Net income available to common shareholders | 342,091 | 412,231 | 424,542 | ||||||||
Less income allocated to nonvested restricted stock | 3,215 | 4,019 | 4,558 | ||||||||
Net income allocated to common stock | $ | 338,876 | $ | 408,212 | $ | 419,984 | |||||
Weighted average common shares outstanding
|
116,360 | 119,473 | 122,170 | ||||||||
Basic income per common share
|
$ | 2.91 | $ | 3.42 | $ | 3.44 | |||||
Diluted income per common share: | |||||||||||
Net income available to common shareholders | $ | 342,091 | $ | 412,231 | $ | 424,542 | |||||
Less income allocated to nonvested restricted stock | 3,211 | 4,012 | 4,547 | ||||||||
Net income allocated to common stock
|
$ | 338,880 | $ | 408,219 | $ | 419,995 | |||||
Weighted average common shares outstanding
|
116,360 | 119,473 | 122,170 | ||||||||
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
|
224 | 297 | 379 | ||||||||
Weighted average diluted common shares outstanding
|
116,584 | 119,770 | 122,549 | ||||||||
Diluted income per common share
|
$ | 2.91 | $ | 3.41 | $ | 3.43 |
Years Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Shares outstanding at January 1 | 112,132 | 111,129 | 106,615 | ||||||||
Issuance of stock:
|
|||||||||||
Awards and sales under employee and director plans | 335 | 329 | 416 | ||||||||
5% stock dividend | 5,574 | 5,359 | 5,305 | ||||||||
Other purchases of treasury stock
|
(887) | (4,670) | (1,194) | ||||||||
Other
|
(16) | (15) | (13) | ||||||||
Shares outstanding at December 31
|
117,138 | 112,132 | 111,129 |
Actual
|
Minimum Capital Adequacy Requirement
|
Well-Capitalized Capital Requirement
|
||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Total Capital (to risk-weighted assets):
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 3,189,432 | 14.82 | % | $ | 1,721,317 | 8.00 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,844,675 | 13.30 | 1,710,778 | 8.00 | $ | 2,138,472 | 10.00 | % | ||||||||||||||||||
Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 2,950,926 | 13.71 | % | $ | 1,290,988 | 6.00 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,606,169 | 12.19 | 1,283,083 | 6.00 | $ | 1,710,778 | 8.00 | % | ||||||||||||||||||
Tier I Common Capital (to risk-weighted assets):
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 2,950,926 | 13.71 | % | $ | 968,241 | 4.50 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,606,169 | 12.19 | 962,312 | 4.50 | $ | 1,390,007 | 6.50 | % | ||||||||||||||||||
Tier I Capital (to adjusted quarterly average assets):
|
||||||||||||||||||||||||||
(Leverage Ratio)
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 2,950,926 | 9.45 | % | $ | 1,249,584 | 4.00 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,606,169 | 8.36 | 1,246,470 | 4.00 | $ | 1,558,087 | 5.00 | % | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Total Capital (to risk-weighted assets):
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 3,052,079 | 15.48 | % | $ | 1,577,105 | 8.00 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,583,676 | 13.19 | 1,566,866 | 8.00 | $ | 1,958,583 | 10.00 | % | ||||||||||||||||||
Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 2,890,322 | 14.66 | % | $ | 1,182,829 | 6.00 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,421,919 | 12.37 | 1,175,150 | 6.00 | $ | 1,566,866 | 8.00 | % | ||||||||||||||||||
Tier I Common Capital (to risk-weighted assets):
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 2,745,538 | 13.93 | % | $ | 887,122 | 4.50 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,421,919 | 12.37 | 881,362 | 4.50 | $ | 1,273,079 | 6.50 | % | ||||||||||||||||||
Tier I Capital (to adjusted quarterly average assets):
|
||||||||||||||||||||||||||
(Leverage Ratio)
|
||||||||||||||||||||||||||
Commerce Bancshares, Inc. (consolidated)
|
$ | 2,890,322 | 11.38 | % | $ | 1,015,771 | 4.00 | % |
N.A.
|
N.A.
|
||||||||||||||||
Commerce Bank
|
2,421,919 | 9.57 | 1,012,232 | 4.00 | $ | 1,265,290 | 5.00 | % |
For the Years Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Bank card transaction fees | $ | 151,797 | $ | 167,879 | $ | 171,576 | |||||
Trust fees | 160,637 | 155,628 | 147,964 | ||||||||
Deposit account charges and other fees | 93,227 | 95,983 | 94,517 | ||||||||
Consumer brokerage services | 15,095 | 15,804 | 15,807 | ||||||||
Other non-interest income | 31,040 | 48,597 | 37,440 | ||||||||
Total non-interest income from contracts with customers | 451,796 | 483,891 | 467,304 | ||||||||
Other non-interest income (1)
|
54,071 | 40,812 | 34,037 | ||||||||
Total non-interest income | $ | 505,867 | $ | 524,703 | $ | 501,341 |
(In thousands) | December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||
Bank card transaction fees | $ | 14,199 | $ | 13,915 | $ | 13,035 | |||||
Trust fees | 2,071 | 2,093 | 2,721 | ||||||||
Deposit account charges and other fees | 6,933 | 6,523 | 6,107 | ||||||||
Consumer brokerage services | 432 | 596 | 559 |
For the Years Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Debit card: | |||||||||||
Fee income | $ | 39,862 | $ | 42,106 | $ | 41,522 | |||||
Expense for network charges | (2,218) | (2,081) | (1,784) | ||||||||
Net debit card fees | 37,644 | 40,025 | 39,738 | ||||||||
Credit card: | |||||||||||
Fee income | 24,921 | 27,416 | 26,799 | ||||||||
Expense for network charges and rewards | (11,528) | (13,239) | (13,834) | ||||||||
Net credit card fees | 13,393 | 14,177 | 12,965 | ||||||||
Corporate card: | |||||||||||
Fee income | 179,251 | 196,984 | 199,651 | ||||||||
Expense for network charges and rewards | (96,877) | (102,596) | (100,011) | ||||||||
Net corporate card fees | 82,374 | 94,388 | 99,640 | ||||||||
Merchant: | |||||||||||
Fee income | 29,660 | 31,517 | 30,241 | ||||||||
Fees to cardholder banks | (8,115) | (8,779) | (7,831) | ||||||||
Expense for network charges | (3,159) | (3,449) | (3,177) | ||||||||
Net merchant fees | 18,386 | 19,289 | 19,233 | ||||||||
Total bank card transaction fees | $ | 151,797 | $ | 167,879 | $ | 171,576 |
For the Years Ended December 31
|
|||||||||||
(In thousands)
|
2020 | 2019 | 2018 | ||||||||
Private client
|
$ | 123,941 | $ | 118,832 | $ | 111,533 | |||||
Institutional
|
30,544 | 29,468 | 29,241 | ||||||||
Other
|
6,152 | 7,328 | 7,190 | ||||||||
Total trust fees
|
$ | 160,637 | $ | 155,628 | $ | 147,964 |
For the Years Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Corporate cash management fees | $ | 46,762 | $ | 41,442 | $ | 38,468 | |||||
Overdraft and return item fees | 22,951 | 30,596 | 31,468 | ||||||||
Other service charges on deposit accounts | 23,514 | 23,945 | 24,581 | ||||||||
Total deposit account charges and other fees | $ | 93,227 | $ | 95,983 | $ | 94,517 |
For the Years Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Commission income | $ | 8,002 | $ | 9,071 | $ | 8,956 | |||||
Managed account services | 7,093 | 6,733 | 6,851 | ||||||||
Total consumer brokerage services | $ | 15,095 | $ | 15,804 | $ | 15,807 |
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)
|
||||||||||
December 31, 2020 | ||||||||||||||
Assets:
|
||||||||||||||
Residential mortgage loans held for sale | $ | 39,396 | $ | — | $ | 39,396 | $ | — | ||||||
Available for sale debt securities: | ||||||||||||||
U.S. government and federal agency obligations | 838,059 | 838,059 | — | — | ||||||||||
Government-sponsored enterprise obligations | 54,485 | — | 54,485 | — | ||||||||||
State and municipal obligations | 2,045,099 | — | 2,037,131 | 7,968 | ||||||||||
Agency mortgage-backed securities | 6,712,085 | — | 6,712,085 | — | ||||||||||
Non-agency mortgage-backed securities | 361,074 | — | 361,074 | — | ||||||||||
Asset-backed securities | 1,882,243 | — | 1,882,243 | — | ||||||||||
Other debt securities | 556,219 | — | 556,219 | — | ||||||||||
Trading debt securities | 35,321 | — | 35,321 | — | ||||||||||
Equity securities | 2,966 | 2,966 | — | — | ||||||||||
Private equity investments | 94,368 | — | — | 94,368 | ||||||||||
Derivatives * | 89,889 | — | 86,447 | 3,442 | ||||||||||
Assets held in trust for deferred compensation plan | 19,278 | 19,278 | — | — | ||||||||||
Total assets | 12,730,482 | 860,303 | 11,764,401 | 105,778 | ||||||||||
Liabilities:
|
||||||||||||||
Derivatives * | 18,675 | — | 17,974 | 701 | ||||||||||
Liabilities held in trust for deferred compensation plan | 19,278 | 19,278 | — | — | ||||||||||
Total liabilities | $ | 37,953 | $ | 19,278 | $ | 17,974 | $ | 701 | ||||||
December 31, 2019 | ||||||||||||||
Assets: | ||||||||||||||
Residential mortgage loans held for sale | $ | 9,181 | $ | — | $ | 9,181 | $ | — | ||||||
Available for sale debt securities: | ||||||||||||||
U.S. government and federal agency obligations | 851,776 | 851,776 | — | — | ||||||||||
Government-sponsored enterprise obligations | 139,277 | — | 139,277 | — | ||||||||||
State and municipal obligations | 1,267,927 | — | 1,258,074 | 9,853 | ||||||||||
Agency mortgage-backed securities | 3,937,964 | — | 3,937,964 | — | ||||||||||
Non-agency mortgage-backed securities | 809,782 | — | 809,782 | — | ||||||||||
Asset-backed securities | 1,233,489 | — | 1,233,489 | — | ||||||||||
Other debt securities | 331,411 | — | 331,411 | — | ||||||||||
Trading debt securities | 28,161 | — | 28,161 | — | ||||||||||
Equity securities | 2,929 | 2,929 | — | — | ||||||||||
Private equity investments | 94,122 | — | — | 94,122 | ||||||||||
Derivatives * | 105,674 | — | 105,075 | 599 | ||||||||||
Assets held in trust for deferred compensation plan | 16,518 | 16,518 | — | — | ||||||||||
Total assets | 8,828,211 | 871,223 | 7,852,414 | 104,574 | ||||||||||
Liabilities:
|
||||||||||||||
Derivatives * | 10,219 | — | 9,989 | 230 | ||||||||||
Liabilities held in trust for deferred compensation plan | 16,518 | 16,518 | — | — | ||||||||||
Total liabilities | $ | 26,737 | $ | 16,518 | $ | 9,989 | $ | 230 |
|
Fair Value Measurements Using Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
(In thousands)
|
State and Municipal Obligations |
Private Equity
Investments
|
Derivatives | Total | ||||||||||
Year ended December 31, 2020: | ||||||||||||||
Balance at January 1, 2020 | $ | 9,853 | $ | 94,122 | $ | 369 | $ | 104,344 | ||||||
Total gains or losses (realized/unrealized):
|
||||||||||||||
Included in earnings | — | (10,103) | 3,181 | (6,922) | ||||||||||
Included in other comprehensive income | (2) | — | — | (2) | ||||||||||
Investment securities called
|
(2,000) | — | — | (2,000) | ||||||||||
Discount accretion
|
117 | — | — | 117 | ||||||||||
Purchases of private equity securities
|
— | 10,684 | — | 10,684 | ||||||||||
Sale / pay down of private equity securities
|
— | (364) | — | (364) | ||||||||||
Capitalized interest/dividends
|
— | 29 | — | 29 | ||||||||||
Purchase of risk participation agreement
|
— | — | — | — | ||||||||||
Sale of risk participation agreement
|
— | — | (809) | (809) | ||||||||||
Balance at December 31, 2020 | $ | 7,968 | $ | 94,368 | $ | 2,741 | $ | 105,077 | ||||||
Total gains or losses for the year included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2020 | $ | — | $ | (10,083) | $ | 3,611 | $ | (6,472) | ||||||
Total gains or losses for the year included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2020 | $ | 44 | $ | — | $ | — | $ | 44 | ||||||
Year ended December 31, 2019: | ||||||||||||||
Balance at January 1, 2019 | $ | 14,158 | $ | 85,659 | $ | 490 | $ | 100,307 | ||||||
Total gains or losses (realized/unrealized): | ||||||||||||||
Included in earnings | — | (727) | (93) | (820) | ||||||||||
Included in other comprehensive income | 246 | — | — | 246 | ||||||||||
Investment securities called | (4,635) | — | — | (4,635) | ||||||||||
Discount accretion | 84 | — | — | 84 | ||||||||||
Purchases of private equity securities | — | 15,706 | — | 15,706 | ||||||||||
Sale / pay down of private equity securities | — | (6,548) | — | (6,548) | ||||||||||
Capitalized interest/dividends | — | 32 | — | 32 | ||||||||||
Purchase of risk participation agreement | — | — | 439 | 439 | ||||||||||
Sale of risk participation agreement | — | — | (467) | (467) | ||||||||||
Balance at December 31, 2019 | $ | 9,853 | $ | 94,122 | $ | 369 | $ | 104,344 | ||||||
Total gains or losses for the year included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2019 | $ | — | $ | (2,177) | $ | 457 | $ | (1,720) |
(In thousands)
|
Loan Fees and Sales | Other Non-Interest Income | Investment Securities Gains (Losses), Net |
Total
|
||||||||||
Year ended December 31, 2020: | ||||||||||||||
Total gains or losses included in earnings | $ | 2,768 | $ | 413 | $ | (10,103) | $ | (6,922) | ||||||
Change in unrealized gains or losses relating to assets still held at December 31, 2020 | $ | 3,226 | $ | 385 | $ | (10,083) | $ | (6,472) | ||||||
Year ended December 31, 2019: | ||||||||||||||
Total gains or losses included in earnings | $ | (77) | $ | (16) | $ | (727) | $ | (820) | ||||||
Change in unrealized gains or losses relating to assets still held at December 31, 2019 | $ | 458 | $ | (1) | $ | (2,177) | $ | (1,720) |
Quantitative Information about Level 3 Fair Value Measurements | Weighted | |||||||||||||||||||
Valuation Technique | Unobservable Input | Range | Average* | |||||||||||||||||
Auction rate securities | Discounted cash flow | Estimated market recovery period | 5 years | 5 years | ||||||||||||||||
Estimated market rate | 1.5% | - | 1.7% | 1.5% | ||||||||||||||||
Private equity investments | Market comparable companies | EBITDA multiple | 4.0 | - | 6.0 | 5.4 | ||||||||||||||
Mortgage loan commitments | Discounted cash flow | Probability of funding | 56.7% | - | 98.8% | 85.7% | ||||||||||||||
Embedded servicing value | 0.5% | - | 1.0% | 0.9% |
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)
|
||||||||||||
Balance at December 31, 2020 | |||||||||||||||||
Collateral dependent loans
|
$ | 12,961 | $ | — | $ | — | $ | 12,961 | $ | (7,763) | |||||||
Mortgage servicing rights
|
6,249 | — | — | 6,249 | (1,776) | ||||||||||||
Long-lived assets
|
811 | — | — | 811 | (9) | ||||||||||||
Balance at December 31, 2019 | |||||||||||||||||
Collateral dependent loans
|
$ | 422 | $ | — | $ | — | $ | 422 | $ | (263) | |||||||
Mortgage servicing rights
|
7,749 | — | — | 7,749 | (327) | ||||||||||||
Long-lived assets
|
1,098 | — | — | 1,098 | (362) |
Quantitative Information about Level 3 Fair Value Measurements | Weighted | ||||||||||||||||||||||
Valuation Technique | Unobservable Input | Range | Average* | ||||||||||||||||||||
Mortgage servicing rights | Discounted cash flow | Discount rate | 9.15 | % | - | 9.27 | % | 9.23 | % | ||||||||||||||
Prepayment speeds (CPR)* | 13.25 | % | - | 14.85 | % | 14.58 | % | ||||||||||||||||
Loan servicing costs - annually per loan | |||||||||||||||||||||||
Performing loans | $ | 71 | - | $ | 72 | $ | 72 | ||||||||||||||||
Delinquent loans | $ | 200 | - | $ | 750 | ||||||||||||||||||
Loans in foreclosure | $ | 1,000 |
Carrying Amount | Estimated Fair Value at December 31, 2020 | |||||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial Assets | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Business | $ | 6,546,087 | $ | — | $ | — | $ | 6,467,572 | $ | 6,467,572 | ||||||||||
Real estate - construction and land
|
1,021,595 | — | — | 995,873 | 995,873 | |||||||||||||||
Real estate - business
|
3,026,117 | — | — | 3,016,576 | 3,016,576 | |||||||||||||||
Real estate - personal
|
2,820,030 | — | — | 2,830,521 | 2,830,521 | |||||||||||||||
Consumer
|
1,950,502 | — | — | 1,953,217 | 1,953,217 | |||||||||||||||
Revolving home equity | 307,083 | — | — | 304,434 | 304,434 | |||||||||||||||
Consumer credit card | 655,078 | — | — | 576,320 | 576,320 | |||||||||||||||
Overdrafts
|
3,149 | — | — | 3,068 | 3,068 | |||||||||||||||
Total loans | 16,329,641 | — | — | 16,147,581 | 16,147,581 | |||||||||||||||
Loans held for sale | 45,089 | — | 45,089 | — | 45,089 | |||||||||||||||
Investment securities | 12,626,296 | 841,025 | 11,638,558 | 146,713 | 12,626,296 | |||||||||||||||
Securities purchased under agreements to resell | 850,000 | — | — | 894,338 | 894,338 | |||||||||||||||
Interest earning deposits with banks | 1,747,363 | 1,747,363 | — | — | 1,747,363 | |||||||||||||||
Cash and due from banks | 437,563 | 437,563 | — | — | 437,563 | |||||||||||||||
Derivative instruments | 89,889 | — | 86,447 | 3,442 | 89,889 | |||||||||||||||
Assets held in trust for deferred compensation plan | 19,278 | 19,278 | — | — | 19,278 | |||||||||||||||
Total | $ | 32,145,119 | $ | 3,045,229 | $ | 11,770,094 | $ | 17,192,074 | $ | 32,007,397 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Non-interest bearing deposits | $ | 10,497,598 | $ | 10,497,598 | $ | — | $ | — | $ | 10,497,598 | ||||||||||
Savings, interest checking and money market deposits | 14,604,456 | 14,604,456 | — | — | 14,604,456 | |||||||||||||||
Certificates of deposit | 1,844,691 | — | — | 1,847,277 | 1,847,277 | |||||||||||||||
Federal funds purchased | 42,270 | 42,270 | — | — | 42,270 | |||||||||||||||
Securities sold under agreements to repurchase | 2,056,113 | — | — | 2,056,173 | 2,056,173 | |||||||||||||||
Derivative instruments | 18,675 | — | 17,974 | 701 | 18,675 | |||||||||||||||
Liabilities held in trust for deferred compensation plan | 19,278 | 19,278 | — | — | 19,278 | |||||||||||||||
Total | $ | 29,083,081 | $ | 25,163,602 | $ | 17,974 | $ | 3,904,151 | $ | 29,085,727 |
Carrying Amount | Estimated Fair Value at December 31, 2019 | |||||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial Assets | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Business | $ | 5,565,449 | $ | — | $ | — | $ | 5,526,303 | $ | 5,526,303 | ||||||||||
Real estate - construction and land
|
899,377 | — | — | 898,152 | 898,152 | |||||||||||||||
Real estate - business
|
2,833,554 | — | — | 2,849,213 | 2,849,213 | |||||||||||||||
Real estate - personal
|
2,354,760 | — | — | 2,333,002 | 2,333,002 | |||||||||||||||
Consumer
|
1,964,145 | — | — | 1,938,505 | 1,938,505 | |||||||||||||||
Revolving home equity | 349,251 | — | — | 344,424 | 344,424 | |||||||||||||||
Consumer credit card | 764,977 | — | — | 708,209 | 708,209 | |||||||||||||||
Overdrafts
|
6,304 | — | — | 4,478 | 4,478 | |||||||||||||||
Total loans | 14,737,817 | — | — | 14,602,286 | 14,602,286 | |||||||||||||||
Loans held for sale | 13,809 | — | 13,809 | — | 13,809 | |||||||||||||||
Investment securities | 8,740,608 | 854,705 | 7,738,158 | 147,745 | 8,740,608 | |||||||||||||||
Securities purchased under agreements to resell | 850,000 | — | — | 869,592 | 869,592 | |||||||||||||||
Interest earning deposits with banks | 395,850 | 395,850 | — | — | 395,850 | |||||||||||||||
Cash and due from banks | 491,615 | 491,615 | — | — | 491,615 | |||||||||||||||
Derivative instruments | 105,674 | — | 105,075 | 599 | 105,674 | |||||||||||||||
Assets held in trust for deferred compensation plan | 16,518 | 16,518 | — | — | 16,518 | |||||||||||||||
Total | $ | 25,351,891 | $ | 1,758,688 | $ | 7,857,042 | $ | 15,620,222 | $ | 25,235,952 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Non-interest bearing deposits | $ | 6,890,687 | $ | 6,890,687 | $ | — | $ | — | $ | 6,890,687 | ||||||||||
Savings, interest checking and money market deposits | 11,621,716 | 11,621,716 | — | — | 11,621,716 | |||||||||||||||
Certificates of deposit | 2,008,012 | — | — | 2,022,629 | 2,022,629 | |||||||||||||||
Federal funds purchased | 20,035 | 20,035 | — | — | 20,035 | |||||||||||||||
Securities sold under agreements to repurchase | 1,830,737 | — | — | 1,831,518 | 1,831,518 | |||||||||||||||
Other borrowings | 988 | — | 988 | — | 988 | |||||||||||||||
Derivative instruments | 10,219 | — | 9,989 | 230 | 10,219 | |||||||||||||||
Liabilities held in trust for deferred compensation plan | 16,518 | 16,518 | — | — | 16,518 | |||||||||||||||
Total | $ | 22,398,912 | $ | 18,548,956 | $ | 10,977 | $ | 3,854,377 | $ | 22,414,310 |
December 31
|
|||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Interest rate swaps | $ | 2,367,017 | $ | 2,606,181 | |||||||
Interest rate floors | — | 1,500,000 | |||||||||
Interest rate caps | 103,028 | 59,316 | |||||||||
Credit risk participation agreements | 381,170 | 316,225 | |||||||||
Foreign exchange contracts | 7,431 | 10,936 | |||||||||
Mortgage loan commitments | 67,543 | 13,755 | |||||||||
Mortgage loan forward sale contracts | — | 1,943 | |||||||||
Forward TBA contracts | 89,000 | 17,500 | |||||||||
Total notional amount | $ | 3,015,189 | $ | 4,525,856 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
December 31 | December 31 | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(In thousands)
|
Fair Value
|
Fair Value
|
||||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
||||||||||||||||||||||||||
Interest rate floors | $ | — | $ | 67,192 | $ | — | $ | — | ||||||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | 67,192 | $ | — | $ | — | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate swaps | $ | 86,389 | $ | 37,774 | $ | (17,199) | $ | (9,916) | ||||||||||||||||||
Interest rate caps | 1 | 4 | (1) | (4) | ||||||||||||||||||||||
Credit risk participation agreements | 216 | 140 | (701) | (230) | ||||||||||||||||||||||
Foreign exchange contracts | 57 | 97 | (103) | (32) | ||||||||||||||||||||||
Mortgage loan commitments | 3,226 | 459 | — | — | ||||||||||||||||||||||
Mortgage loan forward sale contracts | — | 6 | — | (2) | ||||||||||||||||||||||
Forward TBA contracts | — | 2 | (671) | (35) | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 89,889 | $ | 38,482 | $ | (18,675) | $ | (10,219) | ||||||||||||||||||
Total | $ | 89,889 | $ | 105,674 | $ | (18,675) | $ | (10,219) |
Location of Gain or (Loss) Recognized in Income on Derivative | Amount of Gain or (Loss) Recognized in Income on Derivative | |||||||||||||||||||
|
For the Years
Ended December 31
|
|||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Derivative instruments:
|
||||||||||||||||||||
Interest rate swaps | Other non-interest income | $ | 317 | $ | 4,732 | $ | 3,914 | |||||||||||||
Interest rate caps | Other non-interest income | 20 | — | 11 | ||||||||||||||||
Credit risk participation agreements | Other non-interest income | 413 | (16) | 150 | ||||||||||||||||
Foreign exchange contracts: | Other non-interest income | (111) | 53 | 31 | ||||||||||||||||
Mortgage loan commitments | Loan fees and sales | 2,768 | (77) | (45) | ||||||||||||||||
Mortgage loan forward sale contracts | Loan fees and sales | (4) | (3) | 5 | ||||||||||||||||
Forward TBA contracts | Loan fees and sales | (1,440) | (837) | 414 | ||||||||||||||||
Total | $ | 1,963 | $ | 3,852 | $ | 4,480 |
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 | ||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 86,497 | $ | — | $ | 86,497 | $ | (108) | $ | — | $ | 86,389 | ||||||||
Derivatives not subject to master netting agreements | 3,392 | — | 3,392 | |||||||||||||||||
Total derivatives | $ | 89,889 | $ | — | $ | 89,889 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 18,420 | $ | — | $ | 18,420 | $ | (108) | $ | (16,738) | $ | 1,574 | ||||||||
Derivatives not subject to master netting agreements | 255 | — | 255 | |||||||||||||||||
Total derivatives | $ | 18,675 | $ | — | $ | 18,675 | ||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 105,147 | $ | — | $ | 105,147 | $ | (8,104) | $ | (59,525) | $ | 37,518 | ||||||||
Derivatives not subject to master netting agreements | 527 | — | 527 | |||||||||||||||||
Total derivatives | $ | 105,674 | $ | — | $ | 105,674 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 10,083 | $ | — | $ | 10,083 | $ | (8,104) | $ | (437) | $ | 1,542 | ||||||||
Derivatives not subject to master netting agreements | 136 | — | 136 | |||||||||||||||||
Total derivatives | $ | 10,219 | $ | — | $ | 10,219 |
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 | Net Amount | ||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Total resale agreements, subject to master netting arrangements | $ | 1,050,000 | $ | (200,000) | $ | 850,000 | $ | — | $ | (850,000) | $ | — | ||||||||
Total repurchase agreements, subject to master netting arrangements | 2,256,113 | (200,000) | 2,056,113 | — | (2,056,113) | — | ||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Total resale agreements, subject to master netting arrangements | $ | 1,050,000 | $ | (200,000) | $ | 850,000 | $ | — | $ | (850,000) | $ | — | ||||||||
Total repurchase agreements, subject to master netting arrangements | 2,030,737 | (200,000) | 1,830,737 | — | (1,830,737) | — |
Remaining Contractual Maturity of the Agreements | ||||||||||||||
(In thousands)
|
Overnight and continuous | Up to 90 days | Greater than 90 days | Total | ||||||||||
December 31, 2020 | ||||||||||||||
Repurchase agreements, secured by: | ||||||||||||||
U.S. government and federal agency obligations | $ | 150,305 | $ | — | $ | — | $ | 150,305 | ||||||
Agency mortgage-backed securities | 1,598,614 | 34,018 | 220,849 | 1,853,481 | ||||||||||
Non-agency mortgage-backed securities | 62,742 | — | — | 62,742 | ||||||||||
Asset-backed securities | 155,917 | — | — | 155,917 | ||||||||||
Other debt securities | 33,668 | — | — | 33,668 | ||||||||||
Total repurchase agreements, gross amount recognized | $ | 2,001,246 | $ | 34,018 | $ | 220,849 | $ | 2,256,113 | ||||||
December 31, 2019 | ||||||||||||||
Repurchase agreements, secured by: | ||||||||||||||
U.S. government and federal agency obligations | $ | 526,283 | $ | — | $ | — | $ | 526,283 | ||||||
Government-sponsored enterprise obligations | 32,575 | — | — | 32,575 | ||||||||||
Agency mortgage-backed securities | 973,774 | 48,517 | 227,802 | 1,250,093 | ||||||||||
Non-agency mortgage-backed securities | 71,399 | — | — | 71,399 | ||||||||||
Asset-backed securities | 60,012 | 40,000 | — | 100,012 | ||||||||||
Other debt securities | 50,375 | — | — | 50,375 | ||||||||||
Total repurchase agreements, gross amount recognized | $ | 1,714,418 | $ | 88,517 | $ | 227,802 | $ | 2,030,737 |
(In thousands) | 2020 | 2019 | ||||||
Commitments to extend credit: | ||||||||
Credit card | $ | 4,972,104 | $ | 5,063,166 | ||||
Other | 8,033,222 | 6,123,264 | ||||||
Standby letters of credit, net of participations | 357,087 | 377,338 | ||||||
Commercial letters of credit | 3,117 | 7,050 |
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Leasing agent fees | $ | — | $ | 154 | $ | 133 | |||||
Operation of parking garages | 81 | 118 | 95 | ||||||||
Building management fees | 2,110 | 2,001 | 1,935 | ||||||||
Property construction management fees | 251 | 250 | 136 | ||||||||
Project consulting fees | 335 | — | — | ||||||||
Dividends paid on Company stock held by Tower | 229 | 210 | 181 | ||||||||
Total
|
$ | 3,006 | $ | 2,733 | $ | 2,480 |
Condensed Balance Sheets | ||||||||
December 31 | ||||||||
(In thousands) | 2020 | 2019 | ||||||
Assets | ||||||||
Investment in consolidated subsidiaries: | ||||||||
Bank | $ | 3,077,713 | $ | 2,687,692 | ||||
Non-banks | 67,710 | 71,290 | ||||||
Cash | 171,943 | 301,913 | ||||||
Investment securities: | ||||||||
Available for sale debt | 4,795 | 1,399 | ||||||
Equity | 3,135 | 2,969 | ||||||
Note receivable due from bank subsidiary | 50,000 | 50,000 | ||||||
Advances to subsidiaries, net of borrowings | 31,907 | 26,097 | ||||||
Deferred tax assets | 10,990 | 9,973 | ||||||
Other assets
|
26,222 | 23,528 | ||||||
Total assets
|
$ | 3,444,415 | $ | 3,174,861 | ||||
Liabilities and stockholders’ equity
|
||||||||
Pension obligation | $ | 17,548 | $ | 13,028 | ||||
Other liabilities | 29,820 | 27,149 | ||||||
Total liabilities
|
47,368 | 40,177 | ||||||
Stockholders’ equity
|
3,397,047 | 3,134,684 | ||||||
Total liabilities and stockholders’ equity
|
$ | 3,444,415 | $ | 3,174,861 |
Condensed Statements of Income | |||||||||||
For the Years Ended December 31 | |||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||
Income
|
|||||||||||
Dividends received from consolidated bank subsidiary
|
$ | 210,001 | $ | 500,000 | $ | 200,000 | |||||
Earnings of consolidated subsidiaries, net of dividends
|
148,435 | (79,641) | 233,785 | ||||||||
Interest and dividends on investment securities
|
1,802 | 1,698 | 10,698 | ||||||||
Management fees charged to subsidiaries
|
33,472 | 36,776 | 37,688 | ||||||||
Investment securities gains (losses)
|
53 | 3,572 | (4,581) | ||||||||
Net interest income on advances and note to subsidiaries
|
233 | 1,208 | 1,299 | ||||||||
Other
|
4,282 | 4,700 | 2,390 | ||||||||
Total income
|
398,278 | 468,313 | 481,279 | ||||||||
Expense
|
|||||||||||
Salaries and employee benefits
|
31,277 | 32,882 | 33,588 | ||||||||
Professional fees
|
1,977 | 2,050 | 2,383 | ||||||||
Data processing fees paid to affiliates
|
2,765 | 3,142 | 3,341 | ||||||||
Other
|
11,850 | 13,106 | 10,881 | ||||||||
Total expense
|
47,869 | 51,180 | 50,193 | ||||||||
Income tax benefit
|
(3,648) | (4,098) | (2,456) | ||||||||
Net income
|
$ | 354,057 | $ | 421,231 | $ | 433,542 |
Condensed Statements of Cash Flows | |||||||||||
For the Years Ended December 31 | |||||||||||
(In thousands)
|
2020 | 2019 | 2018 | ||||||||
Operating Activities
|
|||||||||||
Net income
|
$ | 354,057 | $ | 421,231 | $ | 433,542 | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||
Earnings of consolidated subsidiaries, net of dividends | (148,435) | 79,641 | (233,785) | ||||||||
Other adjustments, net | 5,504 | 2,491 | 2,505 | ||||||||
Net cash provided by operating activities
|
211,126 | 503,363 | 202,262 | ||||||||
Investing Activities
|
|||||||||||
(Increase) decrease in investment in subsidiaries, net
|
3 | (12) | — | ||||||||
Proceeds from sales of investment securities
|
— | 3,856 | 41,638 | ||||||||
Proceeds from maturities/pay downs of investment securities
|
1,410 | 1,150 | 1,988 | ||||||||
Purchases of investment securities
|
(4,863) | (63) | (125) | ||||||||
Increase in advances to subsidiaries, net
|
(5,810) | (6,230) | (5,296) | ||||||||
Net purchases of building improvements and equipment
|
(94) | (235) | (133) | ||||||||
Net cash provided by (used in) investing activities
|
(9,354) | (1,534) | 38,072 | ||||||||
Financing Activities
|
|||||||||||
Preferred stock redemption
|
(150,000) | — | — | ||||||||
Purchases of treasury stock
|
(54,163) | (134,904) | (75,231) | ||||||||
Accelerated share repurchase agreements
|
— | (150,000) | — | ||||||||
Issuance of stock under equity compensation plans
|
(11) | (8) | (10) | ||||||||
Cash dividends paid on common stock
|
(120,818) | (113,466) | (100,238) | ||||||||
Cash dividends paid on preferred stock
|
(6,750) | (9,000) | (9,000) | ||||||||
Net cash used in financing activities
|
(331,742) | (407,378) | (184,479) | ||||||||
Increase (decrease) in cash
|
(129,970) | 94,451 | 55,855 | ||||||||
Cash at beginning of year
|
301,913 | 207,462 | 151,607 | ||||||||
Cash at end of year
|
$ | 171,943 | $ | 301,913 | $ | 207,462 | |||||
Income tax receipts, net
|
$ | (3,663) | $ | (2,337) | $ | (1,965) |
(a) The following documents are filed as a part of this report: | ||||||||||||||
Page | ||||||||||||||
(1) | Financial Statements: | |||||||||||||
(2) | Financial Statement Schedules: | |||||||||||||
All schedules are omitted as such information is inapplicable or is included in the financial statements. | ||||||||||||||
(b) The exhibits filed as part of this report and exhibits incorporated herein by reference to other documents are listed below. |
3 —Articles of Incorporation and By-Laws: | |||||
4 — Instruments defining the rights of security holders, including indentures: | |||||
(1) Pursuant to paragraph (b)(4)(iii) of Item 601 Regulation S-K, Registrant will furnish to the Commission upon request copies of long-term debt instruments. | |||||
10 — Material Contracts (Except for the Development Services Agreement and associated Amendments to the Development Service Agreement listed below, each of the following is a management contract or compensatory plan arrangement): | |||||
(10) Commerce Bancshares, Inc. Stock Appreciation Rights Agreement and Commerce Bancshares, Inc. Restricted Stock Award Agreement, pursuant to the 2005 Equity Incentive Plan, were filed in current report on Form 8-K (Commission file number 0-2989) dated February 23, 2006, and the same are hereby incorporated by reference.
|
|||||
(11) Commerce Bancshares, Inc. Stock Appreciation Rights Agreement, Commerce Bancshares, Inc. Restricted Stock Award Agreements for Executive Officers, and Commerce Bancshares, Inc. Restricted Stock Award Agreements for Employees other than Executive Officers, pursuant to the 2005 Equity Incentive Plan, were filed in quarterly report on Form 10-Q (Commission file number 0-2989) dated May 6, 2013, and the same are hereby incorporated by reference.
|
|||||
101 — Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text and in detail. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||
104 — Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||
* In accordance with Item 601(a)(5) of Regulation S-K, certain schedules and exhibits to this exhibit have been omitted from this filing. The Company will furnish a copy of any omitted schedule or exhibit to the Securities and Exchange Commission or its staff upon request. In accordance with Item 601(b)(10)(iv) of Regulation S-K, certain portions of this exhibit have been redacted because they are both (i) not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. The Company will provide an unredacted copy of the exhibit on a supplementary basis to the Securities and Exchange Commission or its staff upon request.
|
|||||
COMMERCE BANCSHARES, INC.
|
||||||||
By: |
/s/ THOMAS J. NOACK
|
|||||||
Thomas J. Noack | ||||||||
Senior Vice President & Secretary |
By: |
/s/ JOHN W. KEMPER
|
|||||||
John W. Kemper | ||||||||
Chief Executive Officer | ||||||||
By: |
/s/ CHARLES G. KIM
|
|||||||
Charles G. Kim | ||||||||
Chief Financial Officer | ||||||||
By: |
/s/ PAUL A. STEINER
|
|||||||
Paul A. Steiner | ||||||||
Controller | ||||||||
(Chief Accounting Officer) |
|
||||||||
David W. Kemper
|
||||||||
Terry D. Bassham
|
||||||||
John R. Capps
|
||||||||
Earl H. Devanny, III
|
||||||||
W. Thomas Grant, II
|
||||||||
Karen L. Daniel
|
||||||||
John W. Kemper
|
All the Directors on the Board of Directors* | |||||||
Jonathan M. Kemper
|
||||||||
Benjamin F. Rassieur, III
|
||||||||
Todd R. Schnuck
|
||||||||
Andrew C. Taylor
|
||||||||
Kimberly G. Walker
|
||||||||
By: |
/s/ THOMAS J. NOACK
|
|||||||
Thomas J. Noack | ||||||||
Attorney-in-Fact |