Commerce Bancshares, Inc. announced earnings of $1.01 per share for the three months ended December 31, 2024, compared to $.79 per share in the same quarter last year and $1.01 per share in the third quarter of 2024. Net income for the fourth quarter of 2024 amounted to $136.1 million, compared to $109.2 million in the fourth quarter of 2023 and $138.0 million in the prior quarter.
In announcing these results, John Kemper, President and Chief Executive Officer, said, “Our fourth quarter earnings were strong, reflecting our resilient balance sheet, diversified operating model, and well-controlled expenses.
“Net interest margin declined only one basis point to 3.49% in light of a declining rate environment. The repricing of our fixed-rate earning assets, coupled with lower deposit costs, largely offset lower variable rate loan yields. Additionally, growth in deposits and investment securities contributed to quarterly net interest income growth.
“Total non-interest income was 36.8% of total revenue. Trust fees were strong and experienced continued growth, up 14.6% over the same period last year.
“We continue to maintain ample levels of liquidity and capital, which positions us well moving into 2025. Book value per share increased 14.5% compared to the same period last year and our tangible common equity to tangible assets ratio grew 107 basis points to 9.92%.
“Credit quality remains excellent with non-accrual loans at .11% of total loans, flat when compared to the last two quarters.”
Fourth Quarter 2024 Financial Highlights:
- Net interest income was $266.6 million, a $4.3 million increase over the prior quarter. The net yield on interest earning assets decreased one basis point to 3.49%.
- Non-interest income totaled $155.4 million, an increase of $10.6 million over the same quarter last year.
- Trust fees grew $7.2 million, or 14.6%, compared to the same period last year, mostly due to higher private client fees.
- Non-interest expense totaled $235.7 million, a decrease of $15.5 million, or 6.2%, compared to the same quarter last year.
- Average loan balances totaled $17.1 billion, an increase of .3% compared to the prior quarter.
- Total average available for sale debt securities increased $475.7 million from the prior quarter to $9.1 billion, at fair value. During the fourth quarter of 2024, the unrealized loss on available for sale debt securities increased $204.2 million to $990.6 million, at period end.
- Total average deposits increased $588.1 million, or 2.4%, compared to the prior quarter. The average rate paid on interest bearing deposits in the current quarter was 1.87%.
- The ratio of annualized net loan charge-offs to average loans was .25% compared to .22% in the prior quarter.
- The allowance for credit losses on loans increased $1.9 million during the fourth quarter of 2024 to $162.7 million, and the ratio of the allowance for credit losses on loans to total loans was .95%, at December 31, 2024, compared to .94% at September 30, 2024.
- Total assets at December 31, 2024 were $32.0 billion, an increase of $503.0 million, or 1.6%, over the prior quarter.
- For the quarter, the return on average assets was 1.73%, the return on average equity was 15.97%, and the efficiency ratio was 55.8%.
Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, investment management and securities brokerage. One of its subsidiaries, Commerce Bank, leverages nearly 160 years of proven strength and experience to help individuals and businesses solve financial challenges. In addition to offering payment solutions across the U.S., Commerce Bank currently operates full-service banking facilities across the Midwest including the St. Louis and Kansas City metropolitan areas, Springfield, Central Missouri, Central Illinois, Wichita, Tulsa, Oklahoma City, and Denver. Beyond the Midwest, Commerce also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids and wealth offices in Dallas, Houston, and Naples. Commerce delivers high-touch service and sophisticated financial solutions at regional branches, commercial and wealth offices, ATMs, online, mobile and through a 24/7 customer service line.
This financial news release and the supplementary Earnings Highlights presentation are available on the Company’s website at https://investor.commercebank.com/news-info/financial-news-releases/default.aspx.
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
For the Three Months Ended
|
For the Year Ended
|
|
(Unaudited)
(Dollars in thousands, except per share data)
|
|
Dec. 31,
2024
|
Sep. 30,
2024
|
Dec. 31,
2023
|
Dec. 31,
2024
|
Dec. 31,
2023
|
|
FINANCIAL SUMMARY
|
|
|
|
|
|
|
|
Net interest income
|
|
$266,647
|
|
$262,351
|
|
$248,421
|
|
$1,040,246
|
|
$998,129
|
|
|
Non-interest income
|
|
155,436
|
|
159,025
|
|
144,879
|
|
615,553
|
|
573,045
|
|
|
Total revenue
|
|
422,083
|
|
421,376
|
|
393,300
|
|
1,655,799
|
|
1,571,174
|
|
|
Investment securities gains (losses)
|
|
977
|
|
3,872
|
|
7,601
|
|
7,823
|
|
14,985
|
|
|
Provision for credit losses
|
|
13,508
|
|
9,140
|
|
5,879
|
|
32,903
|
|
35,451
|
|
|
Non-interest expense
|
|
235,718
|
|
237,600
|
|
251,254
|
|
951,229
|
|
930,982
|
|
|
Income before taxes
|
|
173,834
|
|
178,508
|
|
143,768
|
|
679,490
|
|
619,726
|
|
|
Income taxes
|
|
36,590
|
|
38,245
|
|
32,307
|
|
145,089
|
|
134,549
|
|
|
Non-controlling interest expense (income)
|
|
1,136
|
|
2,256
|
|
2,238
|
|
8,070
|
|
8,117
|
|
|
Net income attributable to Commerce Bancshares, Inc.
|
|
$136,108
|
|
$138,007
|
|
$109,223
|
|
$526,331
|
|
$477,060
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
Net income — basic
|
|
$1.01
|
|
$1.02
|
|
$0.80
|
|
$3.88
|
|
$3.47
|
|
|
Net income — diluted
|
|
$1.01
|
|
$1.01
|
|
$0.79
|
|
$3.87
|
|
$3.46
|
|
|
Effective tax rate
|
|
21.19
|
%
|
21.70
|
%
|
22.83
|
%
|
21.61
|
%
|
22.00
|
%
|
|
Fully-taxable equivalent net interest income
|
|
$268,935
|
|
$264,638
|
|
$250,547
|
|
$1,049,463
|
|
$1,006,677
|
|
|
Average total interest earning assets (1)
|
|
$30,628,722
|
|
$30,051,845
|
|
$31,340,958
|
|
$30,266,008
|
|
$31,823,935
|
|
|
Diluted wtd. average shares outstanding
|
|
133,686,588
|
|
134,394,825
|
|
136,088,738
|
|
134,688,401
|
|
136,575,226
|
|
|
|
|
|
|
|
|
|
|
RATIOS
|
|
|
|
|
|
|
|
Average loans to deposits (2)
|
|
68.45
|
%
|
69.93
|
%
|
67.69
|
%
|
69.73
|
%
|
66.31
|
%
|
|
Return on total average assets
|
|
1.73
|
|
1.80
|
|
1.38
|
|
1.72
|
|
1.49
|
|
|
Return on average equity(3)
|
|
15.97
|
|
16.81
|
|
16.48
|
|
16.66
|
|
17.94
|
|
|
Non-interest income to total revenue
|
|
36.83
|
|
37.74
|
|
36.84
|
|
37.18
|
|
36.47
|
|
|
Efficiency ratio (4)
|
|
55.77
|
|
56.31
|
|
63.80
|
|
57.37
|
|
59.17
|
|
|
Net yield on interest earning assets
|
|
3.49
|
|
3.50
|
|
3.17
|
|
3.47
|
|
3.16
|
|
|
|
|
|
|
|
|
|
|
EQUITY SUMMARY
|
|
|
|
|
|
|
|
Cash dividends per share
|
|
$.257
|
|
$.257
|
|
$.245
|
|
$1.029
|
|
$.980
|
|
|
Cash dividends on common stock
|
|
$34,609
|
|
$34,794
|
|
$33,574
|
|
$139,503
|
|
$134,734
|
|
|
Book value per share (5)
|
|
$24.84
|
|
$25.62
|
|
$21.69
|
|
|
|
|
Market value per share (5)
|
|
$62.31
|
|
$56.57
|
|
$50.87
|
|
|
|
|
High market value per share
|
|
$72.75
|
|
$62.72
|
|
$54.05
|
|
|
|
|
Low market value per share
|
|
$54.01
|
|
$52.27
|
|
$38.96
|
|
|
|
|
Common shares outstanding (5)
|
|
134,152,172
|
|
134,797,835
|
|
136,684,850
|
|
|
|
|
Tangible common equity to tangible assets (6)
|
|
9.92
|
%
|
10.47
|
%
|
8.85
|
%
|
|
|
|
Tier I leverage ratio
|
|
12.26
|
%
|
12.31
|
%
|
11.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
OTHER QTD INFORMATION
|
|
|
|
|
|
|
|
Number of bank/ATM locations
|
|
243
|
|
244
|
|
257
|
|
|
|
|
Full-time equivalent employees
|
|
4,693
|
|
4,711
|
|
4,718
|
|
|
|
|
(1) Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities.
|
|
(2) Includes loans held for sale.
|
|
(3) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.
|
|
(4) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.
|
|
(5) As of period end.
|
|
(6) The tangible common equity ratio is a non-gaap ratio and is calculated as stockholders’ equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).
|
|
All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2024.
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
(Unaudited)
(In thousands, except per share data)
|
|
For the Three Months Ended
|
For the Year Ended
|
|
|
Dec. 31,
2024
|
Sep. 30,
2024
|
Jun. 30,
2024
|
Mar. 31,
2024
|
Dec. 31,
2023
|
Dec. 31,
2024
|
Dec. 31,
2023
|
|
Interest income
|
|
$369,405
|
|
$372,068
|
|
$369,363
|
|
$358,721
|
|
$362,609
|
|
$1,469,557
|
|
$1,381,291
|
|
|
Interest expense
|
|
102,758
|
|
109,717
|
|
107,114
|
|
109,722
|
|
114,188
|
|
429,311
|
|
383,162
|
|
|
Net interest income
|
|
266,647
|
|
262,351
|
|
262,249
|
|
248,999
|
|
248,421
|
|
1,040,246
|
|
998,129
|
|
|
Provision for credit losses
|
|
13,508
|
|
9,140
|
|
5,468
|
|
4,787
|
|
5,879
|
|
32,903
|
|
35,451
|
|
|
Net interest income after credit losses
|
|
253,139
|
|
253,211
|
|
256,781
|
|
244,212
|
|
242,542
|
|
1,007,343
|
|
962,678
|
|
|
NON-INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
56,345
|
|
54,689
|
|
52,291
|
|
51,105
|
|
49,154
|
|
214,430
|
|
190,954
|
|
|
Bank card transaction fees
|
|
47,807
|
|
47,570
|
|
47,477
|
|
46,930
|
|
47,878
|
|
189,784
|
|
191,156
|
|
|
Deposit account charges and other fees
|
|
25,480
|
|
25,380
|
|
25,325
|
|
24,151
|
|
23,517
|
|
100,336
|
|
90,992
|
|
|
Capital market fees
|
|
5,129
|
|
5,995
|
|
4,760
|
|
3,892
|
|
4,269
|
|
19,776
|
|
14,100
|
|
|
Consumer brokerage services
|
|
4,636
|
|
4,619
|
|
4,478
|
|
4,408
|
|
3,641
|
|
18,141
|
|
17,223
|
|
|
Loan fees and sales
|
|
2,874
|
|
3,444
|
|
3,431
|
|
3,141
|
|
2,875
|
|
12,890
|
|
11,165
|
|
|
Other
|
|
13,165
|
|
17,328
|
|
14,482
|
|
15,221
|
|
13,545
|
|
60,196
|
|
57,455
|
|
|
Total non-interest income
|
|
155,436
|
|
159,025
|
|
152,244
|
|
148,848
|
|
144,879
|
|
615,553
|
|
573,045
|
|
|
INVESTMENT SECURITIES GAINS (LOSSES), NET
|
|
977
|
|
3,872
|
|
3,233
|
|
(259
|
)
|
7,601
|
|
7,823
|
|
14,985
|
|
|
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
153,819
|
|
153,122
|
|
149,120
|
|
151,801
|
|
147,456
|
|
607,862
|
|
584,063
|
|
|
Data processing and software
|
|
32,514
|
|
32,194
|
|
31,529
|
|
31,153
|
|
31,141
|
|
127,390
|
|
118,758
|
|
|
Net occupancy
|
|
13,694
|
|
13,411
|
|
12,544
|
|
13,574
|
|
13,927
|
|
53,223
|
|
53,629
|
|
|
Professional and other services
|
|
8,982
|
|
8,830
|
|
8,617
|
|
8,648
|
|
9,219
|
|
35,077
|
|
36,198
|
|
|
Marketing
|
|
5,683
|
|
7,278
|
|
5,356
|
|
4,036
|
|
6,505
|
|
22,353
|
|
24,511
|
|
|
Equipment
|
|
5,232
|
|
5,286
|
|
5,091
|
|
5,010
|
|
5,137
|
|
20,619
|
|
19,548
|
|
|
Supplies and communication
|
|
4,948
|
|
4,963
|
|
4,636
|
|
4,744
|
|
5,242
|
|
19,291
|
|
19,420
|
|
|
Deposit Insurance
|
|
3,181
|
|
2,930
|
|
2,354
|
|
8,017
|
|
20,304
|
|
16,482
|
|
33,163
|
|
|
Other
|
|
7,665
|
|
9,586
|
|
12,967
|
|
18,714
|
|
12,323
|
|
48,932
|
|
41,692
|
|
|
Total non-interest expense
|
|
235,718
|
|
237,600
|
|
232,214
|
|
245,697
|
|
251,254
|
|
951,229
|
|
930,982
|
|
|
Income before income taxes
|
|
173,834
|
|
178,508
|
|
180,044
|
|
147,104
|
|
143,768
|
|
679,490
|
|
619,726
|
|
|
Less income taxes
|
|
36,590
|
|
38,245
|
|
38,602
|
|
31,652
|
|
32,307
|
|
145,089
|
|
134,549
|
|
|
Net income
|
|
137,244
|
|
140,263
|
|
141,442
|
|
115,452
|
|
111,461
|
|
534,401
|
|
485,177
|
|
|
Less non-controlling interest expense (income)
|
|
1,136
|
|
2,256
|
|
1,889
|
|
2,789
|
|
2,238
|
|
8,070
|
|
8,117
|
|
|
Net income attributable to Commerce Bancshares, Inc.
|
|
$136,108
|
|
$138,007
|
|
$139,553
|
|
$112,663
|
|
$109,223
|
|
$526,331
|
|
$477,060
|
|
|
Net income per common share — basic
|
|
$1.01
|
|
$1.02
|
|
$1.03
|
|
$0.82
|
|
$0.80
|
|
$3.88
|
|
$3.47
|
|
|
Net income per common share — diluted
|
|
$1.01
|
|
$1.01
|
|
$1.03
|
|
$0.82
|
|
$0.79
|
|
$3.87
|
|
$3.46
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INFORMATION
|
|
|
|
|
|
|
|
|
|
Return on total average assets
|
|
1.73
|
%
|
1.80
|
%
|
1.86
|
%
|
1.48
|
%
|
1.38
|
%
|
1.72
|
%
|
1.49
|
%
|
|
Return on average equity (1)
|
|
15.97
|
|
16.81
|
|
18.52
|
|
15.39
|
|
16.48
|
|
16.66
|
|
17.94
|
|
|
Efficiency ratio (2)
|
|
55.77
|
|
56.31
|
|
55.95
|
|
61.67
|
|
63.80
|
|
57.37
|
|
59.17
|
|
|
Effective tax rate
|
|
21.19
|
|
21.70
|
|
21.67
|
|
21.93
|
|
22.83
|
|
21.61
|
|
22.00
|
|
|
Net yield on interest earning assets
|
|
3.49
|
|
3.50
|
|
3.55
|
|
3.33
|
|
3.17
|
|
3.47
|
|
3.16
|
|
|
Fully-taxable equivalent net interest income
|
|
$268,935
|
|
$264,638
|
|
$264,578
|
|
$251,312
|
|
$250,547
|
|
$1,049,463
|
|
$1,006,677
|
|
|
(1) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.
|
|
(2) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - PERIOD END
|
|
|
|
|
|
|
(Unaudited)
(In thousands)
|
|
Dec. 31,
2024
|
Sep. 30,
2024
|
Dec. 31,
2023
|
|
ASSETS
|
|
|
|
|
|
Loans
|
|
|
|
|
|
Business
|
|
$6,053,820
|
|
$6,048,328
|
|
$6,019,036
|
|
|
Real estate — construction and land
|
|
1,409,901
|
|
1,381,607
|
|
1,446,764
|
|
|
Real estate — business
|
|
3,661,218
|
|
3,586,999
|
|
3,719,306
|
|
|
Real estate — personal
|
|
3,058,195
|
|
3,043,391
|
|
3,026,041
|
|
|
Consumer
|
|
2,073,123
|
|
2,108,281
|
|
2,077,723
|
|
|
Revolving home equity
|
|
356,650
|
|
342,376
|
|
319,894
|
|
|
Consumer credit card
|
|
595,930
|
|
574,746
|
|
589,913
|
|
|
Overdrafts
|
|
11,266
|
|
4,272
|
|
6,802
|
|
|
Total loans
|
|
17,220,103
|
|
17,090,000
|
|
17,205,479
|
|
|
Allowance for credit losses on loans
|
|
(162,742
|
)
|
(160,839
|
)
|
(162,395
|
)
|
|
Net loans
|
|
17,057,361
|
|
16,929,161
|
|
17,043,084
|
|
|
Loans held for sale
|
|
3,242
|
|
1,707
|
|
4,177
|
|
|
Investment securities:
|
|
|
|
|
|
Available for sale debt securities
|
|
9,136,853
|
|
9,167,681
|
|
9,684,760
|
|
|
Trading debt securities
|
|
38,034
|
|
42,645
|
|
28,830
|
|
|
Equity securities
|
|
57,442
|
|
57,115
|
|
12,701
|
|
|
Other securities
|
|
230,051
|
|
216,543
|
|
222,473
|
|
|
Total investment securities
|
|
9,462,380
|
|
9,483,984
|
|
9,948,764
|
|
|
Federal funds sold
|
|
3,000
|
|
10
|
|
5,025
|
|
|
Securities purchased under agreements to resell
|
|
625,000
|
|
475,000
|
|
450,000
|
|
|
Interest earning deposits with banks
|
|
2,624,553
|
|
2,642,048
|
|
2,239,010
|
|
|
Cash and due from banks
|
|
748,357
|
|
507,941
|
|
443,147
|
|
|
Premises and equipment — net
|
|
475,275
|
|
469,986
|
|
469,059
|
|
|
Goodwill
|
|
146,539
|
|
146,539
|
|
146,539
|
|
|
Other intangible assets — net
|
|
13,632
|
|
13,722
|
|
14,179
|
|
|
Other assets
|
|
837,288
|
|
823,494
|
|
938,077
|
|
|
Total assets
|
|
$31,996,627
|
|
$31,493,592
|
|
$31,701,061
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Non-interest bearing
|
|
$8,150,669
|
|
$7,396,153
|
|
$7,975,935
|
|
|
Savings, interest checking and money market
|
|
14,754,571
|
|
15,216,557
|
|
14,512,273
|
|
|
Certificates of deposit of less than $100,000
|
|
996,721
|
|
1,113,962
|
|
930,432
|
|
|
Certificates of deposit of $100,000 and over
|
|
1,391,683
|
|
1,511,120
|
|
1,945,258
|
|
|
Total deposits
|
|
25,293,644
|
|
25,237,792
|
|
25,363,898
|
|
|
Federal funds purchased and securities sold under agreements to repurchase
|
|
2,926,758
|
|
2,182,229
|
|
2,908,815
|
|
|
Other borrowings
|
|
56
|
|
10,201
|
|
1,404
|
|
|
Other liabilities
|
|
443,694
|
|
609,831
|
|
462,714
|
|
|
Total liabilities
|
|
28,664,152
|
|
28,040,053
|
|
28,736,831
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Common stock
|
|
676,054
|
|
655,322
|
|
655,322
|
|
|
Capital surplus
|
|
3,380,370
|
|
3,154,300
|
|
3,162,622
|
|
|
Retained earnings
|
|
60,769
|
|
338,512
|
|
53,183
|
|
|
Treasury stock
|
|
(48,401
|
)
|
(139,149
|
)
|
(35,599
|
)
|
|
Accumulated other comprehensive income (loss)
|
|
(758,911
|
)
|
(576,904
|
)
|
(891,412
|
)
|
|
Total stockholders’ equity
|
|
3,309,881
|
|
3,432,081
|
|
2,944,116
|
|
|
Non-controlling interest
|
|
22,594
|
|
21,458
|
|
20,114
|
|
|
Total equity
|
|
3,332,475
|
|
3,453,539
|
|
2,964,230
|
|
|
Total liabilities and equity
|
|
$31,996,627
|
|
$31,493,592
|
|
$31,701,061
|
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCE SHEETS
|
|
|
|
(Unaudited)
(In thousands)
|
For the Three Months Ended
|
|
Dec. 31,
2024
|
Sep. 30,
2024
|
Jun. 30,
2024
|
Mar. 31,
2024
|
Dec. 31,
2023
|
|
ASSETS:
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
Business
|
$5,963,217
|
|
$5,966,797
|
|
$5,980,364
|
|
$5,873,525
|
|
$5,861,229
|
|
|
Real estate — construction and land
|
1,411,437
|
|
1,400,563
|
|
1,471,504
|
|
1,472,554
|
|
1,523,682
|
|
|
Real estate — business
|
3,636,026
|
|
3,580,772
|
|
3,666,057
|
|
3,727,643
|
|
3,644,589
|
|
|
Real estate — personal
|
3,047,494
|
|
3,047,563
|
|
3,044,943
|
|
3,031,193
|
|
3,027,664
|
|
|
Consumer
|
2,087,237
|
|
2,129,483
|
|
2,127,650
|
|
2,082,490
|
|
2,117,268
|
|
|
Revolving home equity
|
350,541
|
|
335,817
|
|
326,204
|
|
322,074
|
|
310,282
|
|
|
Consumer credit card
|
568,138
|
|
559,410
|
|
552,896
|
|
562,892
|
|
568,112
|
|
|
Overdrafts
|
5,628
|
|
5,460
|
|
4,856
|
|
7,696
|
|
5,258
|
|
|
Total loans
|
17,069,718
|
|
17,025,865
|
|
17,174,474
|
|
17,080,067
|
|
17,058,084
|
|
|
Allowance for credit losses on loans
|
(160,286
|
)
|
(158,003
|
)
|
(159,791
|
)
|
(161,891
|
)
|
(161,932
|
)
|
|
Net loans
|
16,909,432
|
|
16,867,862
|
|
17,014,683
|
|
16,918,176
|
|
16,896,152
|
|
|
Loans held for sale
|
2,080
|
|
2,448
|
|
2,455
|
|
2,149
|
|
5,392
|
|
|
Investment securities:
|
|
|
|
|
|
|
U.S. government and federal agency obligations
|
2,459,485
|
|
1,888,985
|
|
1,201,954
|
|
851,656
|
|
889,390
|
|
|
Government-sponsored enterprise obligations
|
55,428
|
|
55,583
|
|
55,634
|
|
55,652
|
|
55,661
|
|
|
State and municipal obligations
|
831,695
|
|
856,620
|
|
1,069,934
|
|
1,330,808
|
|
1,363,649
|
|
|
Mortgage-backed securities
|
4,905,187
|
|
5,082,091
|
|
5,553,656
|
|
5,902,328
|
|
6,022,502
|
|
|
Asset-backed securities
|
1,570,878
|
|
1,525,593
|
|
1,785,598
|
|
2,085,050
|
|
2,325,089
|
|
|
Other debt securities
|
221,076
|
|
224,528
|
|
364,828
|
|
503,204
|
|
510,721
|
|
|
Unrealized gain (loss) on debt securities
|
(896,346
|
)
|
(961,695
|
)
|
(1,272,127
|
)
|
(1,274,125
|
)
|
(1,595,845
|
)
|
|
Total available for sale debt securities
|
9,147,403
|
|
8,671,705
|
|
8,759,477
|
|
9,454,573
|
|
9,571,167
|
|
|
Trading debt securities
|
56,440
|
|
47,440
|
|
46,565
|
|
40,483
|
|
37,234
|
|
|
Equity securities
|
56,758
|
|
85,118
|
|
127,584
|
|
12,768
|
|
12,249
|
|
|
Other securities
|
222,529
|
|
217,377
|
|
228,403
|
|
221,695
|
|
222,378
|
|
|
Total investment securities
|
9,483,130
|
|
9,021,640
|
|
9,162,029
|
|
9,729,519
|
|
9,843,028
|
|
|
Federal funds sold
|
826
|
|
12
|
|
1,612
|
|
599
|
|
1,194
|
|
|
Securities purchased under agreements to resell
|
566,307
|
|
474,997
|
|
303,586
|
|
340,934
|
|
450,000
|
|
|
Interest earning deposits with banks
|
2,610,315
|
|
2,565,188
|
|
2,099,777
|
|
1,938,381
|
|
2,387,415
|
|
|
Other assets
|
1,701,822
|
|
1,648,321
|
|
1,651,808
|
|
1,715,716
|
|
1,797,849
|
|
|
Total assets
|
$31,273,912
|
|
$30,580,468
|
|
$30,235,950
|
|
$30,645,474
|
|
$31,381,030
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY:
|
|
|
|
|
|
|
Non-interest bearing deposits
|
$7,464,255
|
|
$7,284,834
|
|
$7,297,955
|
|
$7,328,603
|
|
$7,748,654
|
|
|
Savings
|
1,281,291
|
|
1,303,675
|
|
1,328,989
|
|
1,333,983
|
|
1,357,733
|
|
|
Interest checking and money market
|
13,679,666
|
|
13,242,398
|
|
13,162,118
|
|
13,215,270
|
|
13,166,783
|
|
|
Certificates of deposit of less than $100,000
|
1,061,783
|
|
1,055,683
|
|
1,003,798
|
|
976,804
|
|
1,097,224
|
|
|
Certificates of deposit of $100,000 and over
|
1,451,851
|
|
1,464,143
|
|
1,492,592
|
|
1,595,310
|
|
1,839,057
|
|
|
Total deposits
|
24,938,846
|
|
24,350,733
|
|
24,285,452
|
|
24,449,970
|
|
25,209,451
|
|
|
Borrowings:
|
|
|
|
|
|
|
Federal funds purchased
|
121,781
|
|
206,644
|
|
265,042
|
|
328,216
|
|
473,534
|
|
|
Securities sold under agreements to repurchase
|
2,445,956
|
|
2,351,870
|
|
2,254,849
|
|
2,511,959
|
|
2,467,118
|
|
|
Other borrowings
|
1,067
|
|
496
|
|
838
|
|
76
|
|
179,587
|
|
|
Total borrowings
|
2,568,804
|
|
2,559,010
|
|
2,520,729
|
|
2,840,251
|
|
3,120,239
|
|
|
Other liabilities
|
375,463
|
|
405,490
|
|
399,080
|
|
410,310
|
|
421,402
|
|
|
Total liabilities
|
27,883,113
|
|
27,315,233
|
|
27,205,261
|
|
27,700,531
|
|
28,751,092
|
|
|
Equity
|
3,390,799
|
|
3,265,235
|
|
3,030,689
|
|
2,944,943
|
|
2,629,938
|
|
|
Total liabilities and equity
|
$31,273,912
|
|
$30,580,468
|
|
$30,235,950
|
|
$30,645,474
|
|
$31,381,030
|
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE RATES
|
|
|
|
(Unaudited)
|
For the Three Months Ended
|
|
Dec. 31,
2024
|
Sep. 30,
2024
|
Jun. 30,
2024
|
Mar. 31,
2024
|
Dec. 31,
2023
|
|
ASSETS:
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
Business(1)
|
5.86
|
%
|
6.17
|
%
|
6.11
|
%
|
6.07
|
%
|
5.91
|
%
|
|
Real estate — construction and land
|
7.75
|
|
8.44
|
|
8.36
|
|
8.40
|
|
8.34
|
|
|
Real estate — business
|
6.01
|
|
6.28
|
|
6.26
|
|
6.26
|
|
6.18
|
|
|
Real estate — personal
|
4.17
|
|
4.10
|
|
4.04
|
|
3.95
|
|
3.85
|
|
|
Consumer
|
6.52
|
|
6.64
|
|
6.56
|
|
6.40
|
|
6.21
|
|
|
Revolving home equity
|
7.28
|
|
7.69
|
|
7.68
|
|
7.70
|
|
7.70
|
|
|
Consumer credit card
|
13.60
|
|
14.01
|
|
13.96
|
|
14.11
|
|
13.83
|
|
|
Overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Total loans
|
6.11
|
|
6.35
|
|
6.30
|
|
6.27
|
|
6.15
|
|
|
Loans held for sale
|
7.65
|
|
6.34
|
|
7.54
|
|
7.49
|
|
9.93
|
|
|
Investment securities:
|
|
|
|
|
|
|
U.S. government and federal agency obligations
|
3.86
|
|
3.68
|
|
5.04
|
|
2.08
|
|
2.32
|
|
|
Government-sponsored enterprise obligations
|
2.36
|
|
2.37
|
|
2.39
|
|
2.39
|
|
2.36
|
|
|
State and municipal obligations(1)
|
2.01
|
|
2.00
|
|
2.00
|
|
1.97
|
|
1.94
|
|
|
Mortgage-backed securities
|
2.17
|
|
1.95
|
|
2.09
|
|
2.19
|
|
2.05
|
|
|
Asset-backed securities
|
2.99
|
|
2.66
|
|
2.50
|
|
2.39
|
|
2.30
|
|
|
Other debt securities
|
2.11
|
|
2.07
|
|
2.01
|
|
1.93
|
|
1.85
|
|
|
Total available for sale debt securities
|
2.70
|
|
2.41
|
|
2.50
|
|
2.18
|
|
2.10
|
|
|
Trading debt securities(1)
|
4.26
|
|
4.52
|
|
4.95
|
|
5.30
|
|
5.05
|
|
|
Equity securities (1)
|
6.58
|
|
4.44
|
|
2.82
|
|
25.64
|
|
27.47
|
|
|
Other securities (1)
|
5.75
|
|
6.09
|
|
13.20
|
|
13.04
|
|
8.60
|
|
|
Total investment securities
|
2.80
|
|
2.52
|
|
2.75
|
|
2.44
|
|
2.27
|
|
|
Federal funds sold
|
5.78
|
|
—
|
|
6.74
|
|
6.71
|
|
6.65
|
|
|
Securities purchased under agreements to resell
|
3.57
|
|
3.53
|
|
3.21
|
|
1.93
|
|
1.64
|
|
|
Interest earning deposits with banks
|
4.78
|
|
5.43
|
|
5.48
|
|
5.48
|
|
5.47
|
|
|
Total interest earning assets
|
4.83
|
|
4.96
|
|
4.98
|
|
4.78
|
|
4.62
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY:
|
|
|
|
|
|
|
Interest bearing deposits:
|
|
|
|
|
|
|
Savings
|
.05
|
|
.07
|
|
.06
|
|
.06
|
|
.05
|
|
|
Interest checking and money market
|
1.63
|
|
1.74
|
|
1.73
|
|
1.69
|
|
1.57
|
|
|
Certificates of deposit of less than $100,000
|
3.91
|
|
4.17
|
|
4.22
|
|
4.20
|
|
4.21
|
|
|
Certificates of deposit of $100,000 and over
|
4.24
|
|
4.51
|
|
4.55
|
|
4.56
|
|
4.55
|
|
|
Total interest bearing deposits
|
1.87
|
|
2.00
|
|
1.99
|
|
1.97
|
|
1.93
|
|
|
Borrowings:
|
|
|
|
|
|
|
Federal funds purchased
|
4.71
|
|
5.38
|
|
5.42
|
|
5.42
|
|
5.40
|
|
|
Securities sold under agreements to repurchase
|
3.11
|
|
3.56
|
|
3.44
|
|
3.43
|
|
3.25
|
|
|
Other borrowings
|
3.36
|
|
4.81
|
|
3.84
|
|
—
|
|
5.45
|
|
|
Total borrowings
|
3.18
|
|
3.71
|
|
3.65
|
|
3.66
|
|
3.71
|
|
|
Total interest bearing liabilities
|
2.04
|
%
|
2.22
|
%
|
2.21
|
%
|
2.21
|
%
|
2.20
|
%
|
|
|
|
|
|
|
|
|
Net yield on interest earning assets
|
3.49
|
%
|
3.50
|
%
|
3.55
|
%
|
3.33
|
%
|
3.17
|
%
|
|
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.
|
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CREDIT QUALITY
|
|
|
|
|
|
|
|
For the Three Months Ended
|
For the Year Ended
|
|
(Unaudited)
(In thousands, except ratios)
|
|
Dec. 31,
2024
|
Sep. 30,
2024
|
Jun. 30,
2024
|
Mar. 31,
2024
|
Dec. 31,
2023
|
Dec. 31,
2024
|
Dec. 31,
2023
|
|
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$160,839
|
|
$158,557
|
|
$160,465
|
|
$162,395
|
|
$162,244
|
|
$162,395
|
|
$150,136
|
|
|
Provision for credit losses on loans
|
|
12,557
|
|
11,861
|
|
7,849
|
|
6,947
|
|
8,170
|
|
39,214
|
|
43,325
|
|
|
Net charge-offs (recoveries):
|
|
|
|
|
|
|
|
|
|
Commercial portfolio:
|
|
|
|
|
|
|
|
|
|
Business
|
|
335
|
|
114
|
|
622
|
|
23
|
|
96
|
|
1,094
|
|
3,104
|
|
|
Real estate — construction and land
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(115
|
)
|
|
Real estate — business
|
|
50
|
|
(7
|
)
|
(8
|
)
|
(141
|
)
|
128
|
|
(106
|
)
|
104
|
|
|
|
|
385
|
|
107
|
|
614
|
|
(118
|
)
|
224
|
|
988
|
|
3,093
|
|
|
Personal banking portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer credit card
|
|
6,557
|
|
6,273
|
|
6,746
|
|
6,435
|
|
5,325
|
|
26,011
|
|
19,053
|
|
|
Consumer
|
|
3,237
|
|
2,759
|
|
1,804
|
|
1,983
|
|
1,903
|
|
9,783
|
|
6,248
|
|
|
Overdraft
|
|
470
|
|
464
|
|
521
|
|
557
|
|
588
|
|
2,012
|
|
2,766
|
|
|
Real estate — personal
|
|
8
|
|
128
|
|
79
|
|
24
|
|
(11
|
)
|
239
|
|
(37
|
)
|
|
Revolving home equity
|
|
(3
|
)
|
(152
|
)
|
(7
|
)
|
(4
|
)
|
(10
|
)
|
(166
|
)
|
(57
|
)
|
|
|
|
10,269
|
|
9,472
|
|
9,143
|
|
8,995
|
|
7,795
|
|
37,879
|
|
27,973
|
|
|
Total net loan charge-offs
|
|
10,654
|
|
9,579
|
|
9,757
|
|
8,877
|
|
8,019
|
|
38,867
|
|
31,066
|
|
|
Balance at end of period
|
|
$162,742
|
|
$160,839
|
|
$158,557
|
|
$160,465
|
|
$162,395
|
|
$162,742
|
|
$162,395
|
|
|
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
|
|
$18,935
|
|
$17,984
|
|
$20,705
|
|
$23,086
|
|
$25,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFF RATIOS (1)
|
|
|
|
|
|
|
|
|
|
Commercial portfolio:
|
|
|
|
|
|
|
|
|
|
Business
|
|
.02
|
%
|
.01
|
%
|
.04
|
%
|
—
|
%
|
.01
|
%
|
.02
|
%
|
.05
|
%
|
|
Real estate — construction and land
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(.01
|
)
|
|
Real estate — business
|
|
.01
|
|
—
|
|
—
|
|
(.02
|
)
|
.01
|
|
—
|
|
—
|
|
|
|
|
.01
|
|
—
|
|
.02
|
|
—
|
|
.01
|
|
.01
|
|
.03
|
|
|
Personal banking portfolio:
|
|
|
|
|
|
|
|
|
|
Consumer credit card
|
|
4.59
|
|
4.46
|
|
4.91
|
|
4.60
|
|
3.72
|
|
4.64
|
|
3.40
|
|
|
Consumer
|
|
.62
|
|
.52
|
|
.34
|
|
.38
|
|
.36
|
|
.46
|
|
.30
|
|
|
Overdraft
|
|
33.22
|
|
33.81
|
|
43.15
|
|
29.11
|
|
44.37
|
|
34.06
|
|
56.19
|
|
|
Real estate — personal
|
|
—
|
|
.02
|
|
.01
|
|
—
|
|
—
|
|
.01
|
|
—
|
|
|
Revolving home equity
|
|
—
|
|
(.18
|
)
|
(.01
|
)
|
—
|
|
(.01
|
)
|
(.05
|
)
|
(.02
|
)
|
|
|
|
.67
|
|
.62
|
|
.61
|
|
.60
|
|
.51
|
|
.63
|
|
.47
|
|
|
Total
|
|
.25
|
%
|
.22
|
%
|
.23
|
%
|
.21
|
%
|
.19
|
%
|
.23
|
%
|
.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
Non-accrual loans to total loans
|
|
.11
|
%
|
.11
|
%
|
.11
|
%
|
.03
|
%
|
.04
|
%
|
|
|
|
Allowance for credit losses on loans to total loans
|
|
.95
|
|
.94
|
|
.92
|
|
.93
|
|
.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-ACCRUAL AND PAST DUE LOANS
|
|
|
|
|
|
|
|
|
|
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
Business
|
|
$101
|
|
$354
|
|
$504
|
|
$1,038
|
|
$3,622
|
|
|
|
|
Real estate — construction and land
|
|
220
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
Real estate — business
|
|
14,954
|
|
14,944
|
|
15,050
|
|
1,246
|
|
60
|
|
|
|
|
Real estate — personal
|
|
1,026
|
|
1,144
|
|
1,772
|
|
1,523
|
|
1,653
|
|
|
|
|
Revolving home equity
|
|
1,977
|
|
1,977
|
|
1,977
|
|
1,977
|
|
1,977
|
|
|
|
|
Total
|
|
18,278
|
|
18,419
|
|
19,303
|
|
5,784
|
|
7,312
|
|
|
|
|
Loans past due 90 days and still accruing interest
|
$24,516
|
|
$21,986
|
|
$18,566
|
|
$20,281
|
|
$21,864
|
|
|
|
|
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).
|
COMMERCE BANCSHARES, INC.
Management Discussion of Fourth Quarter Results
December 31, 2024
For the quarter ended December 31, 2024, net income amounted to $136.1 million, compared to $138.0 million in the previous quarter and $109.2 million in the same quarter last year. The decrease in net income compared to the previous quarter was primarily the result of lower non-interest income and net investment securities gains coupled with higher provision expense, partly offset by higher net interest income and lower non-interest expense. The net yield on interest earning assets decreased one basis point compared to the previous quarter to 3.49%. Average available for sale debt securities, at fair value, increased $475.7 million, while deposits, and loans increased $588.1 million and $43.9 million, respectively, over the prior quarter. For the quarter, the return on average assets was 1.73%, the return on average equity was 15.97%, and the efficiency ratio was 55.8%.
Balance Sheet Review
During the 4th quarter of 2024, average loans totaled $17.1 billion, an increase of $43.9 million compared to the prior quarter, and flat compared to the same quarter last year. Compared to the previous quarter, average balances of business real estate grew $55.3 million, while average consumer loans declined $42.2 million. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $21.9 million, compared to $22.6 million in the prior quarter.
Total average available for sale debt securities increased $475.7 million over the previous quarter to $9.1 billion, at fair value. The increase in debt securities was mainly the result of higher average balances of U.S. government and federal agency obligations, partly offset by lower average balances of mortgage-backed securities. During the 4th quarter of 2024, the unrealized loss on available for sale debt securities increased $204.2 million to $990.6 million, at period end. Also, during the 4th quarter of 2024, purchases of available for sale debt securities totaled $573.1 million with a weighted average yield of approximately 4.45%, and sales, maturities and pay downs of available for sale debt securities were $405.0 million. At December 31, 2024, the duration of the available for sale investment portfolio was 4.0 years, and maturities and pay downs of approximately $1.6 billion are expected to occur during the next 12 months.
Total average deposits increased $588.1 million this quarter over the previous quarter. The increase in deposits mostly resulted from growth of $437.3 million and $179.4 million in interest checking and money market deposit average balances and demand deposit average balances, respectively. Compared to the previous quarter, total average commercial, trust, and consumer deposits grew $503.0 million, $60.0 million, and $21.5 million, respectively. The average loans to deposits ratio was 68.5% in the current quarter and 69.9% in the prior quarter. The Company’s average borrowings, which included average customer repurchase agreements of $2.4 billion, increased $9.8 million to $2.6 billion in the 4th quarter of 2024.
Net Interest Income
Net interest income in the 4th quarter of 2024 amounted to $266.6 million, an increase of $4.3 million over the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter increased $4.3 million over the previous quarter to $268.9 million. The increase in net interest income was mostly due to higher interest income on investment securities and lower interest expense on deposits and borrowings, partly offset by lower interest income on loans and deposits with banks. The net yield (FTE) on earning assets decreased to 3.49%, from 3.50% in the prior quarter.
Compared to the previous quarter, interest income on loans (FTE) decreased $9.5 million, mostly due to lower average rates earned on most loan categories. The average yield (FTE) on the loan portfolio decreased 24 basis points to 6.11% this quarter.
Interest income on investment securities (FTE) increased $9.7 million compared to the prior quarter, mostly due to higher average balances and rates earned on U.S. government and federal agency securities. Interest income earned on U.S. government and federal agency securities included the impact of $176 thousand in higher inflation income from Treasury inflation-protected securities compared to previous quarter. Additionally, the Company recorded a $2.3 million adjustment to premium amortization at December 31, 2024, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was higher than the $286 thousand adjustment decreasing interest income in the prior quarter. The average yield (FTE) on total investment securities was 2.80% in the current quarter, compared to 2.52% in the previous quarter.
Compared to the previous quarter, interest income on deposits with banks decreased $3.7 million, mainly due to lower average rates. Interest earned on securities purchased under agreements to resell increased $873 thousand mostly due to higher average balances.
Interest expense decreased $7.0 million compared to the previous quarter, mainly due to lower average rates on deposits and borrowings, partly offset by higher average deposit balances. Interest expense on borrowings decreased $3.3 million due to lower average rates. Interest expense on deposits decreased $3.7 million due to lower average rates, partly offset by higher average balances. The average rate paid on interest bearing deposits totaled 1.87% in the current quarter compared to 2.00% in the prior quarter. The overall rate paid on interest bearing liabilities was 2.04% in the current quarter and 2.22% in the prior quarter.
Non-Interest Income
In the 4th quarter of 2024, total non-interest income amounted to $155.4 million, an increase of $10.6 million, or 7.3%, over the same period last year and a decrease of $3.6 million compared to the prior quarter. The increase in non-interest income compared to the same period last year was mainly due to higher trust fees and deposit account fees. These increases were partly offset by a decrease of $1.8 million in fair value adjustments recorded on the company’s deferred compensation plan, which are held in a trust and recorded as both an asset and liability, affecting both other income and other expense. The decrease in non-interest income compared to the prior quarter was mainly due to lower gains on sales of real estate and lower deferred compensation adjustments, partly offset by higher trust fees and tax credit sales income.
Total net bank card fees in the current quarter decreased $71 thousand, or .1%, compared to the same period last year, and increased $237 thousand compared to the prior quarter. Net corporate card fees decreased $1.4 million, or 4.9%, compared to the same quarter of last year mainly due to lower fees, partly offset by lower rewards expense. Net merchant fees increased $383 thousand, or 6.8%, mainly due to higher fees. Net debit card fees increased $187 thousand, or 1.7%, while net credit card fees increased $718 thousand, or 20.3%, mostly due to higher interchange fees and lower rewards expense. Total net bank card fees this quarter were comprised of fees on corporate card ($26.2 million), debit card ($11.4 million), merchant ($6.0 million) and credit card ($4.3 million) transactions.
In the current quarter, trust fees increased $7.2 million, or 14.6%, over the same period last year, mostly resulting from higher private client fees. Compared to the same period last year, deposit account fees increased $2.0 million, or 8.3%, mostly due to higher corporate cash management fees, while capital market fees increased $860 thousand, or 20.1%, mostly due to higher trading securities income.
Other non-interest income decreased slightly compared to the same period last year primarily due to the deferred compensation adjustment previously mentioned, partly offset by higher tax credit sales income of $1.7 million. For the 4th quarter of 2024, non-interest income comprised 36.8% of the Company’s total revenue.
Investment Securities Gains and Losses
The Company recorded net securities gains of $977 thousand in the current quarter, compared to gains of $3.9 million in the prior quarter and gains of $7.6 million in the 4th quarter of 2023. Net securities gains in the current quarter resulted from net fair value adjustments of $3.9 million on the Company’s portfolio of private equity investments. These net gains were partly offset by losses of $3.3 million on sales of available for sale debt securities.
Non-Interest Expense
Non-interest expense for the current quarter amounted to $235.7 million, compared to $251.3 million in the same period last year and $237.6 million in the prior quarter. The decrease in non-interest expense compared to the same period last year was mainly due to lower deposit insurance expense, partly offset by higher salaries and employee benefits expense and higher data processing and software expense. The decrease in non-interest expense compared to the prior quarter was mainly due to lower marketing expense and a lower deferred compensation adjustment.
Compared to the 4th quarter of last year, salaries and employee benefits expense increased $6.4 million, or 4.3%, mostly due to higher full-time salaries expense of $3.0 million, incentive compensation of $2.7 million, and medical expense of $1.1 million. Full-time equivalent employees totaled 4,693 and 4,718 at December 31, 2024 and 2023, respectively.
Compared to the same period last year, deposit insurance expense decreased $17.1 million, mostly due to a $16.0 million accrual in the prior year of a one-time special assessment by the FDIC to replenish the Deposit Insurance Fund. Data processing and software expense increased $1.4 million compared to the same period last year due to higher costs for service providers.
Income Taxes
The effective tax rate for the Company was 21.2% in the current quarter, 21.7% in the prior quarter, and 22.8% in the 4th quarter of 2023. The decrease in the effective tax rate compared to the same quarter last year was mostly due to lower state and local income taxes.
Credit Quality
Net loan charge-offs in the 4th quarter of 2024 amounted to $10.7 million, compared to $9.6 million in the prior quarter, and $8.0 million in the same period last year. The ratio of annualized net loan charge-offs to total average loans was .25% in the current quarter, and .22% in the previous quarter, and .19% in the same quarter of last year. Compared to the prior quarter, net loan charge-offs on consumer credit card and consumer loans increased $284 thousand and $478 thousand, respectively.
In the 4th quarter of 2024, annualized net loan charge-offs on average consumer credit card loans were 4.59%, compared to 4.46% in the previous quarter and 3.72% in the same quarter last year. Consumer loan net charge-offs were .62% of average consumer loans in the current quarter, .52% in the prior quarter, and .36% in the same quarter last year.
At December 31, 2024, the allowance for credit losses on loans totaled $162.7 million, or .95% of total loans, and increased $1.9 million compared to the prior quarter. Additionally, the liability for unfunded lending commitments at December 31, 2024 was $18.9 million, an increase of $951 thousand compared to the liability at September 30, 2024.
At December 31, 2024, total non-accrual loans amounted to $18.3 million, a decrease of $141 thousand compared to the previous quarter. At December 31, 2024, the balance of non-accrual loans, which represented .11% of loans outstanding, included business loans of $101 thousand, revolving home equity loans of $2.0 million, personal real estate loans of $1.0 million, construction loans of $220 thousand, and business real estate loans of $15.0 million. Loans more than 90 days past due and still accruing interest totaled $24.5 million at December 31, 2024.
Other
During the 4th quarter of 2024, the Company distributed a 5% stock dividend on its common stock and paid a cash dividend of $.27 per common share, representing a 5.1% increase over the same period last year. The Company purchased 683,528 shares of treasury stock during the current quarter at an average price of $67.88.
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. Additional information about risks and uncertainties is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within the Company's Annual Report on Form 10-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122431173/en/