UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 15, 2004
________________
COMMERCIAL BANKSHARES, INC.
______________________________________________________
(Exact name of Registrant as specified in its charter)
FLORIDA 33-67254 65-0050176
_____________________________________________________________________
(State or other jurisdiction (Commission (IRS Employer)
of incorporation or organization) File Number) Identification No.)
1550 S.W. 57th Avenue, Miami, Florida 33144
__________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code (305) 267-1200
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On October 15, 2004 Commercial Bankshares, Inc., the parent holding company
of Commercial Bank of Florida, announced its unaudited earnings for the
three months ended September 30, 2004 pursuant to a press release.
Item 9.01 Financial Statements and Exhibits.
A copy of the press release announcing the unaudited third quarter earnings
is attached hereto as Exhibit 99.1.
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Commercial Bankshares, Inc.
/s/ Barbara E. Reed
________________________
Senior Vice President &
Chief Financial Officer
Date: October 20, 2004
________________
2
Exhibit 99.1 Press Release of Commercial Bankshares, Inc., dated October
15, 2004.
COMMERCIAL BANKSHARES, INC. REPORTS
THIRD QUARTER EARNINGS
Miami-based Commercial Bankshares, Inc., (Nasdaq: CLBK), parent of
Commercial Bank of Florida, today reported record third quarter 2004
earnings of $2.86 million, a 10% increase over third quarter 2003
earnings of $2.61 million. Diluted earnings per share were $.46 for the
third quarter of 2004, as compared to $.43 for the same period in 2003.
The third quarter 2004 earnings represent a 1.34% annualized return on
average assets and a 15.99% annualized return on average equity.
Results for the nine months ended September 30, 2004 showed earnings of
$8.37 million, a 10% increase over earnings for the same nine-month period
in 2003 of $7.59 million. Diluted earnings per share were $1.35 for the
nine months ending September 30, 2004, as compared to $1.25 for the same
period one year ago. Nine month 2004 earnings represent a 1.35% annualized
return on average assets and a 16.16% annualized return on average equity.
Total deposits increased 9%, closing the quarter at $710 million, as
compared to $654 million one year ago. Total assets increased by 12% to
$870 million, from $778 million as of September 30, 2003. Capital remains
strong, with leverage capital, tier 1 risk-based capital and total risk-
based capital ratios of 7.82%, 12.83% and 14.22%, respectively, at
September 30, 2004.
The loan portfolio showed strong growth, closing the quarter with a net
balance of $435 million. This is an increase of 11% from the third quarter
2003 closing balance of $393 million. The allowance for loan losses closed
the quarter at $5.26 million, or 1.19% of total loans. There were no non-
performing assets as of September 30, 2004.
"We are pleased with the continued growth in deposits, loans and earnings,"
said Joseph W. Armaly, Chairman and Chief Executive Officer. "This level
of consistent growth and performance is an achievement which emphasizes
the strength and depth of our Company. "
Tax-equivalent net interest income for the third quarter of 2004 increased
11% to $8.2 million, from $7.4 million in the third quarter of 2003. The
increase is the result of growth in average earning assets, which have
increased 11% to $791 million for the third quarter of 2004 as compared
to $715 million for the third quarter of 2003 and a slightly higher net
interest yield. The tax-equivalent net interest yield was 4.13% for the
quarter ended September 30, 2004, compared to 4.10% for the same period
in 2003. For the nine months ended September 30, 2004, tax-equivalent
net interest income increased 15% to $23.9 million from $20.8 million in
the same nine-month period one year ago, and the tax-equivalent net
interest margin increased to 4.13% from 4.01% one year ago. The increase
in yield is the result of a shifting of assets into higher yielding
products and a decrease in the cost of funds as compared to the same
period in 2003.
COMMERCIAL BANKSHARES, INC.
Selected Financial Data
(Dollars in thousands except share information)
For the Quarter For the Nine Months
Ended September 30, Ended September 30,
___________________ ____________________
Financial Highlights: 2004 2003 2004 2003
____ ____ ____ ____
Net income $2,858 $2,614 $ 8,369 $ 7,586
Net interest income $7,890 $7,150 $23,031 $20,098
Net interest income (FTE)(1) $8,216 $7,392 $23,899 $20,834
Earnings per common share:
Basic $ .48 $ .45 $ 1.42 $ 1.32
Diluted $ .46 $ .43 $ 1.35 $ 1.25
Return on average assets 1.34% 1.34% 1.35% 1.37%
Return on average equity 15.99% 16.66% 16.16% 16.64%
Net interest yield (FTE)(1) 4.13% 4.10% 4.13% 4.01%
Non-interest income $ 715 $ 772 $ 2,148 $ 2,480
Non-interest expense $4,202 $4,065 $12,437 $11,397
Provision for loan losses $ 110 $ 0 $ 250 $ 135
Net charge-offs (recoveries) $ (3) $ (1) $ (140) $ 90
Weighted average shares:
Basic 5,933 5,765 5,908 5,738
Diluted 6,239 6,107 6,201 6,082
(1) Calculated on a fully tax-equivalent basis.
9/30/2004 9/30/2003
_________ _________
Selected Balance Sheet Data:
Assets $869,880 $778,499
Loans, net $434,956 $393,031
Deposits $709,985 $653,899
Stockholders' equity $ 73,400 $ 64,156
Capital ratios:
Leverage 7.82% 7.63%
Tier 1 12.83% 12.46%
Tier 2 14.22% 13.78%
Book value per common share $ 12.37 $ 11.10
Shares outstanding 5,933 5,782
Asset Quality:
Allowance for loan losses $ 5,263 $ 4,796
Non-performing assets $ 0 $ 0
Allowance/total loans 1.19% 1.20%
Allowance/non-performing assets n/a n/a
Non-performing assets/assets 0% 0%
Quarterly Averages:
Earning assets $790,514 $714,646
Loans $438,330 $381,740
Deposits $704,776 $648,463
Stockholders' equity $ 71,106 $ 62,264
Commercial Bankshares, Inc. is the parent company of Commercial Bank
of Florida, a state-chartered, FDIC-insured Federal Reserve member
bank with $865 million in assets. The Bank operates 14 branches in
Miami-Dade and Broward Counties, Florida. The Company's stock is
traded on NASDAQ under the symbol CLBK. The Bank's web site is
www.commercialbankfl.com
Statements contained in this release, which are not historical facts,
may be considered forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
are subject to risks and uncertainties which could cause actual results to
differ materially from those currently anticipated due to a number of
factors which include without limitation the effects of future economic
conditions, governmental fiscal and monetary policies, legislative and
regulatory changes, changes in the interest rates, the effects of
competition, and other factors that could cause actual results to differ
materially as discussed further in documents filed by the Company with
the Securities and Exchange Commission from time to time.
Contact: Barbara E. Reed, Senior Vice President and CFO
Commercial Bankshares, Inc. (305) 267-1200