Commerce Bancshares Inc. 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) covers the period ending May 31, 1997. The filing discloses unaudited consolidated financial statements following the effective acquisition of Shawnee Bank Shares, Inc. on May 1, 1997. The transaction was accounted for as a pooling of interests. The registrant is Commerce Bancshares, Inc., incorporated in Missouri.
Key Financial Metrics
Balance Sheet (as of May 31, 1997, in thousands):
- Total Assets: $9,688,992
- Net Loans: $5,619,091 (Gross loans of $5,722,906 less allowance of $103,815)
- Total Deposits: $8,252,204
- Total Liabilities: $8,757,144
- Total Stockholders' Equity: $931,848
- Long-term Debt: $13,531
- Cash and Due from Banks: $742,346
Income Statement (Five Months Ended May 31, 1997, in thousands):
- Total Interest Income: $274,610
- Total Interest Expense: $115,792
- Net Interest Income: $158,818
- Provision for Loan Losses: $12,329
- Total Non-Interest Income: $69,496
- Total Non-Interest Expense: $137,911
- Net Income: $50,527
- Earnings Per Share: $1.34
Income Statement (Month Ended May 31, 1997, in thousands):
- Net Income: $11,801
- Earnings Per Share: $0.31
Material Changes and Acquisition Impact
The primary material event is the acquisition of Shawnee Bank Shares, Inc., effective May 1, 1997. The financial statements presented reflect the consolidated results of Commerce Bancshares and its subsidiaries, including the acquired entity. The filing explicitly states that prior period financial statements have not been restated due to the immateriality of the acquisition relative to the consolidated entity. No pro forma financial information was provided in this filing.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management discussion of future strategy, or specific risk factors beyond the standard disclosure of the acquisition. The financial data is unaudited. The filing notes that the acquisition was accounted for as a pooling of interests, which implies the combination of financial statements as if the entities had always been combined, though restatement was deemed unnecessary.
Investor Verification Checklist
- Verify the pooling of interests accounting treatment and confirm why restatement of prior periods was deemed immaterial.
- Review the allowance for loan losses ($103,815) relative to the new loan portfolio size to assess credit risk post-acquisition.
- Confirm the composition of non-interest income, specifically the $16,373 in "Other" income and $10,924 in credit card fees, to understand revenue diversification.
- Check subsequent filings for restated comparative data or updated pro forma information if the acquisition is later deemed material for historical comparison.
- Validate the liquidity position given the high level of cash and due from banks ($742,346) relative to total assets.