Commerce Bancshares, Inc. announced earnings of $.68 per common share for the three months ended September 30, 2016, compared to $.70 per share in the prior quarter and $.63 per share in the third quarter of 2015. Net income attributable to Commerce Bancshares, Inc. for the third quarter amounted to $68.5 million, compared to $69.9 million in the prior quarter and $64.6 million in the same quarter last year. For the quarter, the return on average assets was 1.12%, the return on average common equity was 11.0%, and the efficiency ratio was 62.3%.
For the nine months ended September 30, 2016, earnings per common share totaled $2.03, compared to $1.93 in 2015, or an increase of 5.2%. Net income attributable to Commerce Bancshares, Inc. amounted to $203.8 million for the nine months ended September 30, 2016, compared to $200.0 million during the same period last year. For the first nine months of 2016, the return on average assets was 1.11%, and the return on average common equity was 11.3%.
In announcing these results, David W. Kemper, Chairman and CEO, said, “This quarter top line revenue grew 6% compared to the same period last year, with this growth coming from both net interest income and fees. The increase in fees resulted mainly from higher commercial card, deposit, and trust fee income, while loan and sweep fees also showed good growth. The increase in net interest income continues to be driven by overall growth in average loans and higher overall earning assets. Average loans increased $118.1 million this quarter mainly from higher commercial real estate and construction lending and growth in consumer loan balances. Average deposits declined slightly this quarter, and funding costs remained low. Non-interest expense for the quarter totaled $181.2 million, up $4.2 million compared to the previous quarter, mainly reflecting additional investments in staffing, occupancy, and information technology costs.”
Mr. Kemper continued, “The current credit environment remains excellent as net loan charge-offs totaled $6.6 million this quarter, compared to $7.5 million in the previous quarter and $8.4 million in the third quarter of 2015. The decrease in net loan charge-offs compared to the previous quarter was largely due to continued commercial loan recoveries, which totaled $2.5 million compared to $1.6 million in the prior quarter. During the current quarter, the provision for loan losses totaled $7.3 million, or $700 thousand higher than net loan charge-offs, but was $2.0 million less than in the prior quarter. The allowance for loan losses increased to $154.5 million at September 30, 2016, or 1.17% of period end loans. Total non-performing assets decreased $9.5 million from the previous quarter to $16.6 million this quarter.”
Total assets at September 30, 2016 were $24.7 billion, total loans were $13.2 billion, and total deposits were $20.2 billion. During the quarter, the Company paid a common cash dividend of $.225 per share and also paid a 6% cash dividend on its preferred stock.
Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The Company currently operates in approximately 350 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in credit related insurance and private equity activities.
This financial news release, including management's discussion of third quarter results, is posted to the Company's web site at www.commercebank.com.
COMMERCE BANCSHARES, INC. and SUBSIDIARIES FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||
(Unaudited) | September 30, 2016 |
June 30, 2016 |
September 30, 2015 | September 30, 2016 |
September 30, 2015 | ||||||||||||||||||||
| FINANCIAL SUMMARY | |||||||||||||||||||||||||
| Net interest income | $171,243 | $171,829 | $162,038 | $506,847 | $471,833 | ||||||||||||||||||||
| Non-interest income | 119,319 | 116,570 | 111,288 | 354,913 | 332,097 | ||||||||||||||||||||
| Total revenue | 290,562 | 288,399 | 273,326 | 861,760 | 803,930 | ||||||||||||||||||||
| Investment securities gains (losses), net | (1,965 | ) | (744 | ) | (378 | ) | (3,704 | ) | 7,800 | ||||||||||||||||
| Provision for loan losses | 7,263 | 9,216 | 8,364 | 25,918 | 19,541 | ||||||||||||||||||||
| Non-interest expense | 181,242 | 177,089 | 171,402 | 535,804 | 500,710 | ||||||||||||||||||||
| Income before taxes | 100,092 | 101,350 | 93,182 | 296,334 | 291,479 | ||||||||||||||||||||
| Income taxes | 30,942 | 31,542 | 27,969 | 91,854 | 88,929 | ||||||||||||||||||||
| Non-controlling interest expense (income) | 605 | (85 | ) | 601 | 668 | 2,530 | |||||||||||||||||||
| Net income attributable to Commerce Bancshares, Inc. | 68,545 | 69,893 | 64,612 | 203,812 | 200,020 | ||||||||||||||||||||
| Preferred stock dividends | 2,250 | 2,250 | 2,250 | 6,750 | 6,750 | ||||||||||||||||||||
| Net income available to common shareholders | $66,295 | $67,643 | $62,362 | $197,062 | $193,270 | ||||||||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||||
| Net income — basic | $.69 | $.70 | $.63 | $2.04 | $1.93 | ||||||||||||||||||||
| Net income — diluted | $.68 | $.70 | $.63 | $2.03 | $1.93 | ||||||||||||||||||||
| Effective tax rate | 31.10 | % | 31.10 | % | 30.21 | % | 31.07 | % | 30.78 | % | |||||||||||||||
| Tax equivalent net interest income | $179,115 | $179,592 | $169,512 | $530,132 | $493,897 | ||||||||||||||||||||
| Average total interest earning assets (1) | $ | 23,150,832 | $ | 23,252,289 | $ | 22,434,664 | $ | 23,244,807 | $ | 22,510,617 | |||||||||||||||
| Diluted wtd. average shares outstanding | 95,669,439 | 95,630,629 | 96,882,333 | 95,693,969 | 98,882,951 | ||||||||||||||||||||
| RATIOS | |||||||||||||||||||||||||
| Average loans to deposits (2) | 64.33 | % | 63.45 | % | 62.44 | % | 63.53 | % | 60.97 | % | |||||||||||||||
| Return on total average assets | 1.12 | 1.15 | 1.09 | 1.11 | 1.13 | ||||||||||||||||||||
| Return on average common equity (3) | 10.97 | 11.69 | 11.25 | 11.28 | 11.62 | ||||||||||||||||||||
| Non-interest income to total revenue | 41.06 | 40.42 | 40.72 | 41.18 | 41.31 | ||||||||||||||||||||
| Efficiency ratio (4) | 62.25 | 61.27 | 62.55 | 62.04 | 62.12 | ||||||||||||||||||||
| Net yield on interest earning assets | 3.08 | 3.11 | 3.00 | 3.05 | 2.93 | ||||||||||||||||||||
| EQUITY SUMMARY | |||||||||||||||||||||||||
| Cash dividends per common share | $.225 | $.225 | $.214 | $.675 | $.643 | ||||||||||||||||||||
| Cash dividends on common stock | $21,772 | $21,762 | $20,936 | $65,294 | $64,041 | ||||||||||||||||||||
| Cash dividends on preferred stock | $2,250 | $2,250 | $2,250 | $6,750 | $6,750 | ||||||||||||||||||||
| Book value per common share (5) | $25.01 | $24.67 | $22.83 | ||||||||||||||||||||||
| Market value per common share (5) | $49.26 | $47.90 | $43.39 | ||||||||||||||||||||||
| High market value per common share | $51.30 | $49.41 | $46.38 | ||||||||||||||||||||||
| Low market value per common share | $45.74 | $42.98 | $40.43 | ||||||||||||||||||||||
| Common shares outstanding (5) | 96,591,285 | 96,560,828 | 97,511,328 | ||||||||||||||||||||||
| Tangible common equity to tangible assets (6) | 9.22 | % | 9.09 | % | 8.72 | % | |||||||||||||||||||
| Tier I leverage ratio | 9.58 | % | 9.36 | % | 9.31 | % | |||||||||||||||||||
| OTHER QTD INFORMATION | |||||||||||||||||||||||||
| Number of bank/ATM locations | 340 | 346 | 347 | ||||||||||||||||||||||
| Full-time equivalent employees | 4,778 | 4,779 | 4,770 | ||||||||||||||||||||||
(1) | Excludes allowance for loan losses and unrealized gains/(losses) on available for sale securities. | |
(2) | Includes loans held for sale. | |
(3) | Annualized net income available to common shareholders divided by average total equity less preferred stock. | |
(4) | The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue. | |
(5) | As of period end. | |
(6) | The tangible common equity ratio is calculated as stockholders’ equity reduced by preferred stock, goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights). | |
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| (Unaudited) (In thousands, except per share data) | September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 | September 30, 2016 |
September 30, 2015 | |||||||||||||||||||||
| Interest income | $179,361 | $180,065 | $172,128 | $169,742 | $169,115 | $531,554 | $492,674 | |||||||||||||||||||||
| Interest expense | 8,118 | 8,236 | 8,353 | 7,255 | 7,077 | 24,707 | 20,841 | |||||||||||||||||||||
| Net interest income | 171,243 | 171,829 | 163,775 | 162,487 | 162,038 | 506,847 | 471,833 | |||||||||||||||||||||
| Provision for loan losses | 7,263 | 9,216 | 9,439 | 9,186 | 8,364 | 25,918 | 19,541 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 163,980 | 162,613 | 154,336 | 153,301 | 153,674 | 480,929 | 452,292 | |||||||||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||||||||||
| Bank card transaction fees | 47,006 | 45,065 | 44,470 | 46,320 | 44,635 | 136,541 | 132,606 | |||||||||||||||||||||
| Trust fees | 30,951 | 30,241 | 29,243 | 29,622 | 29,302 | 90,435 | 88,815 | |||||||||||||||||||||
| Deposit account charges and other fees | 22,241 | 21,328 | 20,691 | 21,606 | 20,674 | 64,260 | 58,810 | |||||||||||||||||||||
| Capital market fees | 2,751 | 2,500 | 2,725 | 3,116 | 2,620 | 7,976 | 8,360 | |||||||||||||||||||||
| Consumer brokerage services | 3,375 | 3,491 | 3,509 | 3,254 | 3,687 | 10,375 | 10,530 | |||||||||||||||||||||
| Loan fees and sales | 3,123 | 3,196 | 2,510 | 2,101 | 1,855 | 8,829 | 6,127 | |||||||||||||||||||||
| Other | 9,872 | 10,749 | 15,876 | 10,023 | 8,515 | 36,497 | 26,849 | |||||||||||||||||||||
| Total non-interest income | 119,319 | 116,570 | 119,024 | 116,042 | 111,288 | 354,913 | 332,097 | |||||||||||||||||||||
| INVESTMENT SECURITIES GAINS (LOSSES), NET | (1,965 | ) | (744 | ) | (995 | ) | (1,480 | ) | (378 | ) | (3,704 | ) | 7,800 | |||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 107,004 | 104,808 | 106,859 | 102,098 | 100,874 | 318,671 | 298,603 | |||||||||||||||||||||
| Net occupancy | 12,366 | 11,092 | 11,303 | 10,981 | 11,247 | 34,761 | 33,807 | |||||||||||||||||||||
| Equipment | 4,842 | 4,781 | 4,634 | 4,915 | 4,789 | 14,257 | 14,171 | |||||||||||||||||||||
| Supplies and communication | 5,968 | 5,693 | 6,829 | 6,554 | 5,609 | 18,490 | 16,416 | |||||||||||||||||||||
| Data processing and software | 23,663 | 22,770 | 22,899 | 22,274 | 21,119 | 69,332 | 61,670 | |||||||||||||||||||||
| Marketing | 4,399 | 4,389 | 3,813 | 3,539 | 4,343 | 12,601 | 12,568 | |||||||||||||||||||||
| Deposit insurance | 3,576 | 3,143 | 3,165 | 3,145 | 2,981 | 9,884 | 9,001 | |||||||||||||||||||||
| Other | 19,424 | 20,413 | 17,971 | 22,271 | 20,440 | 57,808 | 54,474 | |||||||||||||||||||||
| Total non-interest expense | 181,242 | 177,089 | 177,473 | 175,777 | 171,402 | 535,804 | 500,710 | |||||||||||||||||||||
| Income before income taxes | 100,092 | 101,350 | 94,892 | 92,086 | 93,182 | 296,334 | 291,479 | |||||||||||||||||||||
| Less income taxes | 30,942 | 31,542 | 29,370 | 27,661 | 27,969 | 91,854 | 88,929 | |||||||||||||||||||||
| Net income | 69,150 | 69,808 | 65,522 | 64,425 | 65,213 | 204,480 | 202,550 | |||||||||||||||||||||
| Less non-controlling interest expense (income) | 605 | (85 | ) | 148 | 715 | 601 | 668 | 2,530 | ||||||||||||||||||||
| Net income attributable to Commerce Bancshares, Inc. | 68,545 | 69,893 | 65,374 | 63,710 | 64,612 | 203,812 | 200,020 | |||||||||||||||||||||
| Less preferred stock dividends | 2,250 | 2,250 | 2,250 | 2,250 | 2,250 | 6,750 | 6,750 | |||||||||||||||||||||
| Net income available to common shareholders | $66,295 | $67,643 | $63,124 | $61,460 | $62,362 | $197,062 | $193,270 | |||||||||||||||||||||
| Net income per common share — basic | $.69 | $.70 | $.65 | $.63 | $.63 | $2.04 | $1.93 | |||||||||||||||||||||
| Net income per common share — diluted | $.68 | $.70 | $.65 | $.63 | $.63 | $2.03 | $1.93 | |||||||||||||||||||||
| OTHER INFORMATION | ||||||||||||||||||||||||||||
| Return on total average assets | 1.12 | % | 1.15 | % | 1.07 | % | 1.05 | % | 1.09 | % | 1.11 | % | 1.13 | % | ||||||||||||||
| Return on average common equity (1) | 10.97 | 11.69 | 11.20 | 10.88 | 11.25 | 11.28 | 11.62 | |||||||||||||||||||||
| Efficiency ratio (2) | 62.25 | 61.27 | 62.62 | 62.97 | 62.55 | 62.04 | 62.12 | |||||||||||||||||||||
| Effective tax rate | 31.10 | 31.10 | 31.00 | 30.27 | 30.21 | 31.07 | 30.78 | |||||||||||||||||||||
| Net yield on interest earning assets | 3.08 | 3.11 | 2.95 | 2.94 | 3.00 | 3.05 | 2.93 | |||||||||||||||||||||
| Tax equivalent net interest income | $179,115 | $179,592 | $171,425 | $170,141 | $169,512 | $530,132 | $493,897 | |||||||||||||||||||||
(1) Annualized net income available to common shareholders
divided by average total equity less preferred stock.
(2)The efficiency ratio is calculated as non-interest expense (excluding
intangibles amortization) as a percent of revenue.
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - PERIOD END | |||||||||||||||
| (Unaudited) (In thousands) | September 30, 2016 |
June 30, 2016 |
September 30, 2015 | ||||||||||||
| ASSETS | |||||||||||||||
| Loans | |||||||||||||||
| Business | $ | 4,770,883 | $ | 4,840,248 | $ | 4,406,854 | |||||||||
| Real estate — construction and land | 800,545 | 819,896 | 534,425 | ||||||||||||
| Real estate — business | 2,520,528 | 2,399,271 | 2,286,013 | ||||||||||||
| Real estate — personal | 1,968,005 | 1,927,340 | 1,920,650 | ||||||||||||
| Consumer | 1,972,969 | 1,939,486 | 1,886,806 | ||||||||||||
| Revolving home equity | 417,591 | 408,301 | 428,940 | ||||||||||||
| Consumer credit card | 760,022 | 753,166 | 756,093 | ||||||||||||
| Overdrafts | 19,698 | 4,180 | 4,493 | ||||||||||||
| Total loans | 13,230,241 | 13,091,888 | 12,224,274 | ||||||||||||
| Allowance for loan losses | (154,532 | ) | (153,832 | ) | (151,532 | ) | |||||||||
| Net loans | 13,075,709 | 12,938,056 | 12,072,742 | ||||||||||||
| Loans held for sale | 9,511 | 33,254 | 4,143 | ||||||||||||
| Investment securities: | |||||||||||||||
| Available for sale | 9,438,871 | 9,221,346 | 9,472,959 | ||||||||||||
| Trading | 28,586 | 30,512 | 14,463 | ||||||||||||
| Non-marketable | 108,224 | 111,931 | 116,634 | ||||||||||||
| Total investment securities | 9,575,681 | 9,363,789 | 9,604,056 | ||||||||||||
| Federal funds sold and short-term securities purchased under agreements to resell | 13,415 | 13,725 | 32,550 | ||||||||||||
| Long-term securities purchased under agreements to resell | 725,000 | 825,000 | 975,000 | ||||||||||||
| Interest earning deposits with banks | 56,767 | 183,223 | 42,078 | ||||||||||||
| Cash and due from banks | 396,938 | 428,300 | 384,122 | ||||||||||||
| Land, buildings and equipment — net | 339,196 | 342,237 | 351,946 | ||||||||||||
| Goodwill | 138,921 | 138,921 | 138,921 | ||||||||||||
| Other intangible assets — net | 6,621 | 6,561 | 6,826 | ||||||||||||
| Other assets | 396,709 | 436,627 | 355,264 | ||||||||||||
| Total assets | $ | 24,734,468 | $ | 24,709,693 | $ | 23,967,648 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest bearing | $ | 7,130,415 | $ | 6,906,265 | $ | 6,699,873 | |||||||||
| Savings, interest checking and money market | 11,023,526 | 10,978,734 | 10,295,260 | ||||||||||||
| Time open and C.D.’s of less than $100,000 | 732,575 | 749,160 | 808,210 | ||||||||||||
| Time open and C.D.’s of $100,000 and over | 1,279,644 | 1,515,888 | 1,183,417 | ||||||||||||
| Total deposits | 20,166,160 | 20,150,047 | 18,986,760 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 1,489,891 | 1,632,272 | 2,193,197 | ||||||||||||
| Other borrowings | 101,415 | 103,878 | 103,831 | ||||||||||||
| Other liabilities | 416,189 | 296,675 | 312,817 | ||||||||||||
| Total liabilities | 22,173,655 | 22,182,872 | 21,596,605 | ||||||||||||
| Stockholders’ equity: | |||||||||||||||
| Preferred stock | 144,784 | 144,784 | 144,784 | ||||||||||||
| Common stock | 489,862 | 489,862 | 484,155 | ||||||||||||
| Capital surplus | 1,335,150 | 1,333,995 | 1,283,346 | ||||||||||||
| Retained earnings | 515,081 | 470,558 | 555,877 | ||||||||||||
| Treasury stock | (50,538 | ) | (51,707 | ) | (168,493 | ) | |||||||||
| Accumulated other comprehensive income | 121,082 | 134,424 | 65,636 | ||||||||||||
| Total stockholders’ equity | 2,555,421 | 2,521,916 | 2,365,305 | ||||||||||||
| Non-controlling interest | 5,392 | 4,905 | 5,738 | ||||||||||||
| Total equity | 2,560,813 | 2,526,821 | 2,371,043 | ||||||||||||
| Total liabilities and equity | $ | 24,734,468 | $ | 24,709,693 | $ | 23,967,648 | |||||||||
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS | |||||||||||||||||||||||||
| (Unaudited) (In thousands) | For the Three Months Ended | ||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | |||||||||||||||||||||
| ASSETS: | |||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||
| Business | $ | 4,694,340 | $ | 4,691,476 | $ | 4,491,556 | $ | 4,351,756 | $ | 4,221,478 | |||||||||||||||
| Real estate — construction and land | 821,422 | 789,329 | 682,557 | 584,185 | 476,331 | ||||||||||||||||||||
| Real estate — business | 2,432,325 | 2,389,170 | 2,382,094 | 2,320,439 | 2,284,928 | ||||||||||||||||||||
| Real estate — personal | 1,943,951 | 1,905,968 | 1,909,532 | 1,916,219 | 1,911,469 | ||||||||||||||||||||
| Consumer | 1,947,956 | 1,927,925 | 1,934,577 | 1,908,540 | 1,861,636 | ||||||||||||||||||||
| Revolving home equity | 411,832 | 413,198 | 429,682 | 429,582 | 434,355 | ||||||||||||||||||||
| Consumer credit card | 750,412 | 738,130 | 752,098 | 756,743 | 746,066 | ||||||||||||||||||||
| Overdrafts | 4,652 | 3,916 | 4,772 | 6,303 | 5,233 | ||||||||||||||||||||
| Total loans | 13,006,890 | 12,859,112 | 12,586,868 | 12,273,767 | 11,941,496 | ||||||||||||||||||||
| Allowance for loan losses | (153,517 | ) | (151,622 | ) | (151,308 | ) | (150,856 | ) | (150,890 | ) | |||||||||||||||
| Net loans | 12,853,373 | 12,707,490 | 12,435,560 | 12,122,911 | 11,790,606 | ||||||||||||||||||||
| Loans held for sale | 26,597 | 56,272 | 9,360 | 6,118 | 4,471 | ||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||
| U.S. government and federal agency obligations | 726,469 | 698,374 | 703,212 | 580,816 | 402,591 | ||||||||||||||||||||
| Government-sponsored enterprise obligations | 481,573 | 666,354 | 776,488 | 824,066 | 887,631 | ||||||||||||||||||||
| State and municipal obligations | 1,747,794 | 1,763,849 | 1,718,587 | 1,779,704 | 1,805,931 | ||||||||||||||||||||
| Mortgage-backed securities | 3,366,292 | 3,394,466 | 3,424,716 | 3,335,627 | 3,217,589 | ||||||||||||||||||||
| Asset-backed securities | 2,340,783 | 2,377,708 | 2,537,472 | 2,574,426 | 2,546,982 | ||||||||||||||||||||
| Other marketable securities | 334,747 | 337,572 | 342,382 | 337,340 | 302,323 | ||||||||||||||||||||
| Unrealized gain on investment securities | 235,169 | 191,565 | 149,319 | 130,231 | 118,404 | ||||||||||||||||||||
| Total available for sale securities | 9,232,827 | 9,429,888 | 9,652,176 | 9,562,210 | 9,281,451 | ||||||||||||||||||||
| Trading securities | 18,433 | 20,540 | 18,190 | 23,217 | 22,283 | ||||||||||||||||||||
| Non-marketable securities | 113,954 | 116,103 | 127,769 | 114,321 | 114,062 | ||||||||||||||||||||
| Total investment securities | 9,365,214 | 9,566,531 | 9,798,135 | 9,699,748 | 9,417,796 | ||||||||||||||||||||
| Federal funds sold and short-term securities purchased under agreements to resell | 13,054 | 11,916 | 17,378 | 18,694 | 21,012 | ||||||||||||||||||||
| Long-term securities purchased under agreements to resell | 766,302 | 824,999 | 850,275 | 902,174 | 1,007,606 | ||||||||||||||||||||
| Interest earning deposits with banks | 207,944 | 125,024 | 219,636 | 178,486 | 160,687 | ||||||||||||||||||||
| Other assets | 1,151,549 | 1,113,214 | 1,172,916 | 1,119,602 | 1,106,739 | ||||||||||||||||||||
| Total assets | $ | 24,384,033 | $ | 24,405,446 | $ | 24,503,260 | $ | 24,047,733 | $ | 23,508,917 | |||||||||||||||
| LIABILITIES AND EQUITY: | |||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 7,096,218 | $ | 6,885,889 | $ | 6,905,673 | $ | 6,995,666 | $ | 6,781,592 | |||||||||||||||
| Savings | 778,663 | 787,478 | 761,020 | 736,824 | 739,172 | ||||||||||||||||||||
| Interest checking and money market | 10,210,744 | 10,287,923 | 10,128,543 | 9,805,457 | 9,619,621 | ||||||||||||||||||||
| Time open & C.D.’s of less than $100,000 | 740,729 | 758,703 | 775,221 | 796,639 | 820,792 | ||||||||||||||||||||
| Time open & C.D.’s of $100,000 and over | 1,435,001 | 1,635,892 | 1,483,700 | 1,219,803 | 1,171,617 | ||||||||||||||||||||
| Total deposits | 20,261,355 | 20,355,885 | 20,054,157 | 19,554,389 | 19,132,794 | ||||||||||||||||||||
| Borrowings: | |||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 1,163,728 | 1,211,892 | 1,404,754 | 1,707,430 | 1,677,322 | ||||||||||||||||||||
| Other borrowings | 102,769 | 104,649 | 377,711 | 103,819 | 103,875 | ||||||||||||||||||||
| Total borrowings | 1,266,497 | 1,316,541 | 1,782,465 | 1,811,249 | 1,781,197 | ||||||||||||||||||||
| Other liabilities | 306,306 | 260,179 | 254,437 | 295,718 | 250,626 | ||||||||||||||||||||
| Total liabilities | 21,834,158 | 21,932,605 | 22,091,059 | 21,661,356 | 21,164,617 | ||||||||||||||||||||
| Equity | 2,549,875 | 2,472,841 | 2,412,201 | 2,386,377 | 2,344,300 | ||||||||||||||||||||
| Total liabilities and equity | $ | 24,384,033 | $ | 24,405,446 | $ | 24,503,260 | $ | 24,047,733 | $ | 23,508,917 | |||||||||||||||
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES | ||||||||||||||||||||
| (Unaudited) | For the Three Months Ended | |||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | ||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| Business (1) | 2.87 | % | 2.90 | % | 2.87 | % | 2.78 | % | 2.73 | % | ||||||||||
| Real estate — construction and land | 3.48 | 3.46 | 3.51 | 3.41 | 3.52 | |||||||||||||||
| Real estate — business | 3.63 | 3.69 | 3.70 | 3.68 | 3.71 | |||||||||||||||
| Real estate — personal | 3.73 | 3.76 | 3.77 | 3.76 | 3.73 | |||||||||||||||
| Consumer | 3.91 | 3.80 | 3.87 | 3.91 | 4.00 | |||||||||||||||
| Revolving home equity | 3.56 | 3.59 | 3.52 | 3.44 | 3.50 | |||||||||||||||
| Consumer credit card | 11.56 | 11.54 | 11.42 | 11.23 | 11.59 | |||||||||||||||
| Overdrafts | — | — | — | — | — | |||||||||||||||
| Total loans | 3.86 | 3.86 | 3.89 | 3.85 | 3.89 | |||||||||||||||
| Loans held for sale | 5.00 | 4.95 | 5.80 | 5.40 | 4.26 | |||||||||||||||
| Investment securities: | ||||||||||||||||||||
| U.S. government and federal agency obligations | 2.43 | 3.48 | .40 | .17 | 4.39 | |||||||||||||||
| Government-sponsored enterprise obligations | 2.24 | 3.03 | 1.93 | 1.89 | 1.77 | |||||||||||||||
| State and municipal obligations (1) | 3.60 | 3.60 | 3.66 | 3.64 | 3.44 | |||||||||||||||
| Mortgage-backed securities | 2.38 | 2.36 | 2.45 | 2.54 | 2.47 | |||||||||||||||
| Asset-backed securities | 1.48 | 1.45 | 1.39 | 1.25 | 1.15 | |||||||||||||||
| Other marketable securities (1) | 2.74 | 2.77 | 2.79 | 2.83 | 2.65 | |||||||||||||||
| Total available for sale securities | 2.39 | 2.51 | 2.20 | 2.20 | 2.32 | |||||||||||||||
| Trading securities (1) | 2.42 | 2.27 | 2.87 | 2.65 | 2.72 | |||||||||||||||
| Non-marketable securities (1) | 10.24 | 8.03 | 6.54 | 8.19 | 8.28 | |||||||||||||||
| Total investment securities | 2.49 | 2.58 | 2.26 | 2.27 | 2.39 | |||||||||||||||
| Federal funds sold and short-term securities purchased under agreements to resell | .61 | .64 | .56 | .32 | .40 | |||||||||||||||
| Long-term securities purchased under agreements to resell | 1.73 | 1.64 | 1.64 | 1.40 | 1.29 | |||||||||||||||
| Interest earning deposits with banks | .51 | .49 | .49 | .28 | .25 | |||||||||||||||
| Total interest earning assets | 3.22 | 3.25 | 3.10 | 3.07 | 3.12 | |||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||
| Savings | .12 | .11 | .12 | .12 | .13 | |||||||||||||||
| Interest checking and money market | .13 | .13 | .13 | .13 | .13 | |||||||||||||||
| Time open & C.D.’s of less than $100,000 | .37 | .38 | .38 | .37 | .38 | |||||||||||||||
| Time open & C.D.’s of $100,000 and over | .61 | .58 | .54 | .51 | .53 | |||||||||||||||
| Total interest bearing deposits | .20 | .20 | .19 | .18 | .18 | |||||||||||||||
| Borrowings: | ||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | .25 | .24 | .25 | .14 | .11 | |||||||||||||||
| Other borrowings | 3.51 | 3.49 | 1.33 | 3.47 | 3.43 | |||||||||||||||
| Total borrowings | .51 | .50 | .48 | .33 | .31 | |||||||||||||||
| Total interest bearing liabilities | .22 | % | .22 | % | .23 | % | .20 | % | .20 | % | ||||||||||
| Net yield on interest earning assets | 3.08 | % | 3.11 | % | 2.95 | % | 2.94 | % | 3.00 | % | ||||||||||
(1) Stated on a tax equivalent basis using a federal income tax rate of 35%.
| COMMERCE BANCSHARES, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| CREDIT QUALITY | |||||||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||
| (Unaudited) (In thousands, except per share data) | September 30, |
June 30, |
March 31, |
December 31, |
September 30, | September 30, |
September 30, | ||||||||||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 153,832 | $ | 152,132 | $ | 151,532 | $ | 151,532 | $ | 151,532 | $ | 151,532 | $ | 156,532 | |||||||||||||||||||||
| Provision for losses | 7,263 | 9,216 | 9,439 | 9,186 | 8,364 | 25,918 | 19,541 | ||||||||||||||||||||||||||||
| Net charge-offs (recoveries): | |||||||||||||||||||||||||||||||||||
| Commercial portfolio: | |||||||||||||||||||||||||||||||||||
| Business | (50 | ) | (65 | ) | 463 | (133 | ) | (175 | ) | 348 | (255 | ) | |||||||||||||||||||||||
| Real estate — construction and land | (2,312 | ) | (507 | ) | (11 | ) | 60 | (67 | ) | (2,830 | ) | (1,322 | ) | ||||||||||||||||||||||
| Real estate — business | (106 | ) | (1,030 | ) | (242 | ) | (626 | ) | (22 | ) | (1,378 | ) | 493 | ||||||||||||||||||||||
| (2,468 | ) | (1,602 | ) | 210 | (699 | ) | (264 | ) | (3,860 | ) | (1,084 | ) | |||||||||||||||||||||||
| Personal banking portfolio: | |||||||||||||||||||||||||||||||||||
| Consumer credit card | 6,356 | 6,650 | 5,918 | 6,479 | 5,784 | 18,924 | 18,560 | ||||||||||||||||||||||||||||
| Consumer | 2,240 | 1,781 | 2,599 | 2,251 | 2,435 | 6,620 | 6,027 | ||||||||||||||||||||||||||||
| Overdraft | 434 | 307 | 219 | 487 | 429 | 960 | 863 | ||||||||||||||||||||||||||||
| Real estate — personal | (78 | ) | 305 | (195 | ) | 458 | (69 | ) | 32 | (17 | ) | ||||||||||||||||||||||||
| Revolving home equity | 79 | 75 | 88 | 210 | 49 | 242 | 192 | ||||||||||||||||||||||||||||
| 9,031 | 9,118 | 8,629 | 9,885 | 8,628 | 26,778 | 25,625 | |||||||||||||||||||||||||||||
| Total net loan charge-offs | 6,563 | 7,516 | 8,839 | 9,186 | 8,364 | 22,918 | 24,541 | ||||||||||||||||||||||||||||
| Balance at end of period | $ | 154,532 | $ | 153,832 | $ | 152,132 | $ | 151,532 | $ | 151,532 | $ | 154,532 | $ | 151,532 | |||||||||||||||||||||
| NET CHARGE-OFF RATIOS* | |||||||||||||||||||||||||||||||||||
| Commercial portfolio: | |||||||||||||||||||||||||||||||||||
| Business | — | % | (.01 | )% | .04 | % | (.01 | )% | (.02 | )% | .01 | % | (0.01 | )% | |||||||||||||||||||||
| Real estate — construction and land | (1.12 | ) | (.26 | ) | (.01 | ) | .04 | (.06 | ) | (.49 | ) | (.40 | ) | ||||||||||||||||||||||
| Real estate — business | (.02 | ) | (.17 | ) | (.04 | ) | (.11 | ) | — | (.08 | ) | .03 | |||||||||||||||||||||||
| (.12 | ) | (.08 | ) | .01 | (.04 | ) | (.01 | ) | (.07 | ) | (.02 | ) | |||||||||||||||||||||||
| Personal banking portfolio: | |||||||||||||||||||||||||||||||||||
| Consumer credit card | 3.37 | 3.62 | 3.16 | 3.40 | 3.08 | 3.38 | 3.34 | ||||||||||||||||||||||||||||
| Consumer | .46 | .37 | .54 | .47 | .52 | .46 | .45 | ||||||||||||||||||||||||||||
| Overdraft | 37.11 | 31.53 | 18.46 | 30.65 | 32.52 | 28.84 | 22.55 | ||||||||||||||||||||||||||||
| Real estate — personal | (.02 | ) | .06 | (.04 | ) | .09 | (.01 | ) | — | — | |||||||||||||||||||||||||
| Revolving home equity | .08 | .07 | .08 | .19 | .04 | .08 | .06 | ||||||||||||||||||||||||||||
| .71 | .74 | .69 | .78 | .69 | .71 | .70 | |||||||||||||||||||||||||||||
| Total | .20 | % | .24 | % | .28 | % | .30 | % | .28 | % | .24 | % | .28 | % | |||||||||||||||||||||
| CREDIT QUALITY RATIOS | |||||||||||||||||||||||||||||||||||
| Non-performing assets to total loans | .13 | % | .20 | % | .25 | % | .24 | % | .24 | % | |||||||||||||||||||||||||
| Non-performing assets to total assets | .07 | .11 | .13 | .12 | .12 | ||||||||||||||||||||||||||||||
| Allowance for loan losses to total loans | 1.17 | 1.18 | 1.20 | 1.22 | 1.24 | ||||||||||||||||||||||||||||||
| NON-PERFORMING ASSETS | |||||||||||||||||||||||||||||||||||
| Non-accrual loans: | |||||||||||||||||||||||||||||||||||
| Business | $ | 8,758 | $ | 12,716 | $ | 16,098 | $ | 10,874 | $ | 11,699 | |||||||||||||||||||||||||
| Real estate — construction and land | 1,310 | 2,170 | 2,710 | 3,090 | 4,046 | ||||||||||||||||||||||||||||||
| Real estate — business | 1,920 | 5,236 | 6,234 | 7,863 | 5,054 | ||||||||||||||||||||||||||||||
| Real estate — personal | 3,634 | 4,293 | 4,205 | 4,425 | 4,980 | ||||||||||||||||||||||||||||||
| Revolving home equity | 23 | 109 | 120 | 323 | — | ||||||||||||||||||||||||||||||
| Total | 15,645 | 24,524 | 29,367 | 26,575 | 25,779 | ||||||||||||||||||||||||||||||
| Foreclosed real estate | 950 | 1,609 | 1,997 | 2,819 | 3,053 | ||||||||||||||||||||||||||||||
| Total non-performing assets | $ | 16,595 | $ | 26,133 | $ | 31,364 | $ | 29,394 | $ | 28,832 | |||||||||||||||||||||||||
| Loans past due 90 days and still accruing interest | $ | 16,916 | $ | 15,892 | $ | 15,360 | $ | 16,467 | $ | 14,707 | |||||||||||||||||||||||||
*as a percentage of average loans (excluding loans held for sale)
COMMERCE BANCSHARES, INC.
Management Discussion of Third
Quarter Results
September 30, 2016
For the quarter ended September 30, 2016, net income attributable to Commerce Bancshares, Inc. (net income) amounted to $68.5 million, compared to $69.9 million in the previous quarter and $64.6 million in the same quarter last year. The decrease in net income from the previous quarter resulted mainly from an increase in non-interest expense of $4.2 million, coupled with lower net interest income and higher investment securities losses of $1.2 million. However, non-interest income grew by $2.7 million over the previous quarter, and the provision for loan losses declined by $2.0 million. For the current quarter, the return on total average assets was 1.12%, the return on average common equity was 11.0%, and the efficiency ratio was 62.3%.
Balance Sheet Review
During the 3rd quarter of 2016, average total loans increased $118.1 million, or 3.7% annualized, compared to the previous quarter, and increased $1.1 billion, or 9.1%, compared to the same period last year. Compared to the previous quarter, the increase in average loans resulted mainly from growth in business real estate (up $43.2 million) and construction loans (up $32.1 million). Commercial construction projects continued to drive growth in construction loans, while demand for commercial real estate loans increased this quarter. Business loans declined slightly due partly to seasonal reductions in lines of credit usage; however, leasing and tax-free lending activities continued to show good growth. Average consumer loans, including held for sale auto loans, declined slightly partly due to the sale of certain auto loans in both the 2nd and 3rd quarters of 2016, coupled with continued pay-downs of marine and recreation vehicle loans. In March 2016, automobile loans totaling $50.4 million were reclassified as held for sale, and in the 2nd quarter of 2016, $21.8 million were sold. The remaining held for sale automobile loans were sold in the 3rd quarter of 2016. Average personal real estate loans, including loans held for sale, increased by $36.2 million this quarter, and the Company also sold certain fixed rate loans totaling $43.4 million during the quarter, as part of an origination initiative that began in 2015.
During the 3rd quarter of 2016, total average available for sale investment securities at fair value declined $197.1 million to $9.2 billion. Purchases of new securities totaled $817.4 million in the 3rd quarter of 2016 and were offset by sales, maturities and pay downs of $570.5 million. Government-sponsored agency securities decreased on average by $184.8 million, while average mortgage-backed and asset-backed securities declined $65.1 million. At September 30, 2016, the duration of the investment portfolio was 2.7 years, and maturities and pay downs of approximately $1.6 billion are expected to occur during the next 12 months.
Total average deposits decreased $94.5 million, or .5%, this quarter compared to the previous quarter. The decrease in average deposits resulted mainly from a decline in certificates of deposit of $218.9 million coupled with lower money market (decline of $45.3 million) and interest checking (decline of $31.8 million) balances. Demand deposit balances, however, grew by $210.3 million, mostly related to business and government customer activity. Compared to the previous quarter, total average consumer and private banking deposits decreased $102.2 million and $85.5 million, respectively, while commercial deposits increased $92.2 million. The average loans to deposits ratio was 64.3% in the current quarter and 63.5% in the prior quarter.
Compared to the previous quarter, the Company’s average borrowings declined $50.0 million to $1.3 billion in the current quarter, mostly due to lower federal funds purchased balances.
Net Interest Income
Net interest income (tax equivalent) in the 3rd quarter of 2016 amounted to $179.1 million, compared with $179.6 million in the previous quarter. Net interest income (tax equivalent) for the current quarter increased $9.6 million compared to the 3rd quarter of last year. During the 3rd quarter of 2016, the net yield on earning assets (tax equivalent) was 3.08%, compared with 3.11% in the previous quarter and 3.00% in the same period last year.
The slight decrease in net interest income (tax equivalent) in the current quarter compared to the prior quarter was due mainly to lower interest on investment securities of $3.0 million, which includes a decline in inflation income of $1.5 million on the Company’s treasury inflation-protected securities (TIPS). Also, lower balances of government sponsored securities, mortgage-backed securities and asset-backed securities resulted in a decline in interest income of $1.7 million. However, interest income of $938 thousand was received this quarter on a private equity debt investment which had previously been on non-accrual status. Total inflation income on TIPS for the quarter totaled $2.2 million, compared to $3.7 million in the previous quarter. The yield on investment securities totaled 2.49% in the current quarter, compared to 2.58% in the prior quarter.
As compared to the previous quarter, interest on loans increased by $2.7 million as a result of higher average balances, mostly in consumer loans, coupled with higher rates earned on consumer loans. Overall, the average yield on the loan portfolio increased 6 basis points this quarter to 3.86%.
Excluding the effects of inflation income and the additional interest on a private equity debt investment noted above, the net yield on earning assets would have been 3.02% in the current quarter, 3.01% in the prior quarter, and 2.94% in the same period last year. During the current quarter, adjustments to premium amortization expense on certain mortgage-backed and asset-backed securities, due to slowing prepayment speed assumptions, increased interest income by $746 thousand.
Interest expense on deposits decreased $116 thousand this quarter compared with the previous quarter due mainly to lower certificate of deposit balances. Borrowing costs remained relatively consistent this quarter.
Non-Interest Income
In the 3rd quarter of 2016, total non-interest income amounted to $119.3 million, an increase of $8.0 million, or 7.2%, compared to the same period last year. Also, current quarter non-interest income increased $2.7 million, or 2.4%, when compared to amounts recorded in the previous quarter. The increase in non-interest income over the same period last year was due to growth in bank card, deposit, trust, sweep, tax credit sales, and loan fees and sales income, partly offset by lower swap fees.
Total bank card fees in the current quarter increased $2.4 million, or 5.3%, over the same period last year. The increase was mainly the result of growth in commercial card fees of $2.0 million, or 9.2%, as a result of a higher volume of transactions this quarter. Total bank card fees this quarter were comprised of fees on corporate card ($24.0 million), debit card ($9.9 million), merchant ($6.8 million), and credit card ($6.2 million) transactions.
In the current quarter, trust fees increased $1.6 million, or 5.6%, compared to the same period last year, with growth coming from both private client and institutional customers. Compared to the same period last year, deposit account fees also increased $1.6 million, or 7.6%, as a result of 6.0% growth in corporate cash management fees coupled with higher deposit account service fees, which grew $1.2 million, or 28.6%.
Capital market fees increased 5.0% over the same quarter last year on higher sales volumes, while loan fees and sales grew by $1.3 million due to higher mortgage banking revenue from sales of newly-originated fixed rate residential mortgages. Included in other non-interest income are sweep fees, which increased $1.3 million in the current quarter over the same period last year, and sales of tax credits, which increased by $358 thousand this quarter compared to the same period last year. Fees from sales of interest rate swaps declined by $432 thousand this quarter, offsetting the increases in sweep fees and sales of tax credits. Non-interest income comprised 41.1% of the Company’s total revenue this quarter.
Investment Securities Gains and Losses
The Company recorded net securities losses of $2.0 million this quarter, compared with net losses of $744 thousand last quarter and net losses of $378 thousand in the same period last year. Net losses in the current quarter mainly resulted from unrealized fair value adjustments to the Company’s private equity investment portfolio, partly offset by realized gains on these investments.
Non-Interest Expense
Non-interest expense for the current quarter amounted to $181.2 million, an increase of $4.2 million over the previous quarter and $9.8 million, or 5.7%, higher than the same period last year. The increase over the same period in the previous year was mainly due to higher costs for salaries and benefits, occupancy, data processing costs, and FDIC insurance expense.
Compared to the 3rd quarter of last year, salaries and benefits expense increased $6.1 million. Growth in salaries expense of $4.4 million, or 5.1%, was mainly due to higher full-time salaries and incentive compensation costs. Benefits expense increased $1.7 million, or 11.6%, mostly due to higher medical costs. Growth in salaries expense compared to the previous year resulted mainly from higher staffing costs in commercial card, residential mortgage, trust, information technology and other support units. Full-time equivalent employees totaled 4,778 and 4,770 at September 30, 2016 and 2015, respectively.
Compared to the 3rd quarter of last year, data processing and software costs and occupancy costs grew $2.5 million and $1.1 million, respectively, while costs for marketing and equipment remained relatively flat. The increase in data processing and software costs resulted from higher bank card processing costs of $1.1 million, coupled with higher software and 3rd party information technology services. Higher occupancy costs were the result of increased rental of disaster recovery facilities and demolition costs of a branch location being replaced. FDIC insurance costs have also increased by $595 thousand compared to the same quarter last year due to higher deposit balances and insurance rates. Costs for supplies and communication increased $359 thousand, or 6.4%, mainly on higher costs related to reissuance of EMV chip cards and increased data network expense. Operating losses totaled $1.9 million this quarter and declined $1.1 million compared to the 3rd quarter of 2015, mainly due to lower bank card related fraud losses.
Income Taxes
The effective tax rate for the Company was 31.1% in both the current quarter and the previous quarter, and was 30.2% in the 3rd quarter of 2015.
Credit Quality
Net loan charge-offs in the 3rd quarter of 2016 amounted to $6.6 million, compared to $7.5 million in the prior quarter and $8.4 million in the same period last year. The ratio of annualized net loan charge-offs to total average loans was .20% in the current quarter compared to .24% in the previous quarter and .28% in the 3rd quarter of last year. During the 3rd quarter of 2016, the Company recorded net recoveries on commercial loans of $2.5 million, compared to net recoveries of $1.6 million in the prior quarter.
In the 3rd quarter of 2016, annualized net loan charge-offs on average consumer credit card loans were 3.37%, compared with 3.62% in the previous quarter and 3.08% in the same period last year. Consumer loan net charge-offs were .46% of average consumer loans in the current quarter, .37% in the prior quarter and .52% in the same quarter last year. The provision for loan losses in the current quarter totaled $7.3 million, compared to $9.2 million in the prior quarter and $8.4 million in the 3rd quarter of last year. This quarter, the provision for loan losses exceeded net loan charge-offs by $700 thousand. At September 30, 2016, the allowance totaled $154.5 million, which was 1.17% of total loans.
At September 30, 2016, total non-performing assets amounted to $16.6 million, a decrease of $9.5 million from the previous quarter. Non-performing assets are comprised of non-accrual loans and foreclosed real estate ($15.6 million and $950 thousand, respectively, at September 30, 2016). At September 30, 2016, the balance of non-accrual loans, which represented .12% of loans outstanding, included business loans of $8.8 million, business real estate loans of $1.9 million, personal real estate loans of $3.6 million and construction and land loans of $1.3 million. Loans more than 90 days past due and still accruing interest totaled $16.9 million at September 30, 2016.
Other
During the 3rd quarter of 2016, the Company paid a cash dividend of $.225 per common share, representing an increase of 5% over the rate paid in 2015. Also, a cash dividend of $2.3 million was paid on its preferred stock. Additionally, the Company purchased 20,730 shares of treasury stock this quarter at an average price of $48.90.
Forward Looking Information
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161014005071/en/
Contacts:
Jeffery Aberdeen, 816-234-2081
Controller
http://www.commercebank.com
mymoney@commercebank.com
