Exhibit 99.1

FOR IMMEDIATE RELEASE:
Tuesday, July 15, 2008

COMMERCE BANCSHARES, INC. REPORTS SECOND QUARTER
EARNINGS PER SHARE OF $.77

     Commerce Bancshares, Inc. announced earnings of $.77 per share for the three months ended June 30, 2008, an increase of 2.7% compared to $.75 per share in the second quarter of 2007. Net income for the second quarter amounted to $56.0 million compared with $55.6 million in the same period last year. The return on average assets for the three months ended June 30, 2008 was 1.37%, and the return on average equity was 14.1%.

     For the six months ended June 30, 2008, earnings per share totaled $1.66 compared to $1.45 for the first six months of last year. Net income amounted to $120.1 million in 2008 compared with $107.1 million in 2007. For the six months of 2008, the return on average assets was 1.48%, and the return on average equity was 15.3%.

     In announcing these results, David W. Kemper, Chairman and CEO, said, “While economic conditions remain challenging, we are pleased to report solid revenue growth this quarter. Net interest income grew by 8% over the same quarter last year as a result of increases in both loans and deposits, and a stronger net interest margin. Additionally, during the second quarter bank card fees increased 14% with debit, merchant and corporate card fees each experiencing double-digit growth. Exclusive of the reversal of VISA litigation charges reported in the first quarter, non-interest expenses in the current quarter were down 1.4% compared to the prior quarter, and remain well controlled.”

     Mr. Kemper continued, “In this difficult economic environment, we have focused on maintaining adequate levels of liquidity and capital while closely monitoring and controlling credit costs. Compared to a year ago, shareholders’ equity has increased 10.1% resulting in a tangible equity to assets ratio of 8.7%; overall liquidity remains solid. Also, while net non-mortgage consumer loan losses have increased significantly over the same quarter last year, business, construction and business real estate loan losses have remained at relatively low levels. Non-accrual loans grew moderately this quarter to $29.2 million, but still represent only .26% of outstanding loans. During the quarter, we increased our allowance for loan losses to $145.2 million, which is 498% of total non-accrual loans. The allowance for loan losses has increased 9.2% compared to a year ago, and is now 1.31% of outstanding loans.”

     Total assets at June 30, 2008 were $17.0 billion, total loans were $11.4 billion, and total deposits were $12.5 billion. The current quarter included a $6.9 million pre-tax gain on the sale of a small branch in southeast Kansas.

1

     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 over 360 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, and private equity activities.

Summary of Non-Performing Assets and Past Due Loans

(Dollars in thousands)	3/31/08			6/30/08			6/30/07
Non-Accrual Loans	$	25,190		$	29,184		$	33,159
Foreclosed Real Estate	$	10,639		$	7,525		$	1,084
Total Non-Performing Assets	$	35,829		$	36,709		$	34,243
Non-Performing Assets to Loans		.33	%		.33	%		.33	%
Non-Performing Assets to Total Assets		.21	%		.22	%		.22	%
Loans 90 Days & Over Past Due — Still Accruing	$	25,759		$	26,293		$	21,929

     The financial news release, including management’s discussion of second quarter results, is posted to the Company’s web site at www.commercebank.com.

* * * * * * * * * * * * * * *

For additional information, contact
Jeffery Aberdeen, Controller
at PO Box 419248, Kansas City, MO
or by telephone at (816) 234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com

2

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS

(Unaudited)	For the Three Months Ended									For the Six Months Ended
	March 31			June 30			June 30			June 30			June 30
	2008			2008			2007			2008			2007
FINANCIAL SUMMARY (In thousands, except per share data)
Net interest income	$	140,107		$	144,779		$	133,864		$	284,886		$	265,343
Taxable equivalent net interest income		142,283			147,244			136,139			289,527			269,833
Non-interest income		92,160			102,733			94,059			194,893			178,343
Investment securities gains (losses), net		23,323			1,008			(493	)		24,331			3,402
Provision for loan losses		20,000			18,000			9,054			38,000			17,215
Non-interest expense		140,755			147,423			136,349			288,178			272,768
Net income		64,167			55,979			55,574			120,146			107,070
Cash dividends		17,985			18,000			17,319			35,985			34,678
Net total loan charge-offs		11,897			14,491			9,052			26,388			17,213
Business charge-offs (recoveries)		(509	)		1,049			(11	)		540			693
Consumer credit card charge-offs		6,593			7,935			5,948			14,528			11,761
Personal banking charge-offs (1)		3,950			4,666			1,823			8,616			3,788
Real estate — construction charge-offs		774			203			771			977			870
Real estate — business charge-offs (recov.)		902			39			179			941			(437	)
Real estate — personal charge-offs		101			73			38			174			54
Overdraft charge-offs		86			526			304			612			484
Per share:
Net income — basic	$	0.90		$	0.78		$	0.76		$	1.68		$	1.47
Net income — diluted	$	0.89		$	0.77		$	0.75		$	1.66		$	1.45
Cash dividends	$	0.250		$	0.250		$	0.238		$	0.500		$	0.476
Diluted wtd. average shares o/s		72,397			72,436			73,570			72,416			73,793
RATIOS
Average loans to deposits (2)		91.78	%		92.30	%		87.73	%		92.04	%		87.75	%
Return on total average assets		1.59	%		1.37	%		1.46	%		1.48	%		1.42	%
Return on total average stockholders’ equity		16.55	%		14.12	%		15.12	%		15.32	%		14.77	%
Non-interest income to revenue (3)		39.68	%		41.51	%		41.27	%		40.62	%		40.20	%
Efficiency ratio (4)		60.11	%		59.10	%		59.43	%		59.59	%		61.07	%
AT PERIOD END
Book value per share based on total stockholders’ equity	$	21.96		$	22.32		$	20.12
Market value per share	$	42.03		$	39.66		$	43.14
Allowance for loan losses as a percentage of loans		1.30	%		1.31	%		1.30	%
Tier I leverage ratio		8.88	%		9.03	%		8.94	%
Equity to assets		9.41	%		9.43	%		9.39	%
Tangible equity to assets (5)		8.61	%		8.66	%		8.63	%
Common shares outstanding		71,854,360			71,934,900			72,463,929
				June 30			June 30
OTHER YTD INFORMATION				2008			2007
High market value per share				$	45.66		$	48.35
Low market value per share				$	38.00		$	42.53

(1)	Includes net charge-offs on consumer and home equity loans.
(2)	Includes loans held for sale.
(3)	Revenue includes net interest income and non-interest income.
(4)	The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.
(5)	Tangible equity to assets is calculated as total equity reduced by goodwill and other intangible assets divided by total assets reduced by goodwill and other intangible assets.

3

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)	For the Three Months Ended							For the Six Months Ended
(In thousands, except per share data)	March 31		June 30		June 30			June 30		June 30
	2008		2008		2007			2008		2007
INTEREST INCOME
Interest and fees on loans	$	174,338	$	161,007	$	183,736		$	335,345	$	360,279
Interest and fees on loans held for sale		3,917		3,623		6,185			7,540		12,265
Interest on investment securities		40,897		41,310		36,370			82,207		74,789
Interest on federal funds sold and securities purchased under agreements to resell		3,401		2,264		6,517			5,665		13,742
Total interest income		222,553		208,204		232,808			430,757		461,075
INTEREST EXPENSE
Interest on deposits:
Savings, interest checking and money market		20,614		14,353		29,812			34,967		57,449
Time open and C.D.’s of less than $100,000		25,259		20,468		27,671			45,727		54,236
Time open and C.D.’s of $100,000 and over		17,300		13,886		19,566			31,186		36,479
Interest on other borrowings		19,273		14,718		21,895			33,991		47,568
Total interest expense		82,446		63,425		98,944			145,871		195,732
Net interest income		140,107		144,779		133,864			284,886		265,343
Provision for loan losses		20,000		18,000		9,054			38,000		17,215
Net interest income after provision for loan losses		120,107		126,779		124,810			246,886		248,128
NON-INTEREST INCOME
Deposit account charges and other fees		27,075		28,260		30,081			55,335		56,592
Bank card transaction fees		26,308		29,394		25,855			55,702		48,938
Trust fees		20,113		20,286		19,972			40,399		38,625
Consumer brokerage services		3,409		3,411		3,332			6,820		6,375
Trading account profits and commissions		4,164		3,183		1,440			7,347		3,301
Loan fees and sales		2,140		1,150		2,712			3,290		3,997
Other		8,951		17,049		10,667			26,000		20,515
Total non-interest income		92,160		102,733		94,059			194,893		178,343
INVESTMENT SECURITIES GAINS, NET		23,323		1,008		(493	)		24,331		3,402
NON-INTEREST EXPENSE
Salaries and employee benefits		83,010		83,247		76,123			166,257		153,023
Net occupancy		12,069		10,805		10,843			22,874		22,633
Equipment		5,907		6,244		5,681			12,151		12,114
Supplies and communication		8,724		8,545		8,586			17,269		17,092
Data processing and software		13,563		14,159		12,438			27,722		23,960
Marketing		5,287		5,447		4,859			10,734		9,177
Other		12,195		18,976		17,819			31,171		34,769
Total non-interest expense		140,755		147,423		136,349			288,178		272,768
Income before income taxes		94,835		83,097		82,027			177,932		157,105
Less income taxes		30,668		27,118		26,453			57,786		50,035
NET INCOME	$	64,167	$	55,979	$	55,574		$	120,146	$	107,070
Net income per share — basic	$	0.90	$	0.78	$	0.76		$	1.68	$	1.47
Net income per share — diluted	$	0.89	$	0.77	$	0.75		$	1.66	$	1.45
Cash dividends per common share	$	0.250	$	0.250	$	0.238		$	0.500	$	0.476

4

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Unaudited)	March 31			June 30			June 30
(In thousands)	2008			2008			2007
ASSETS
Loans	$	10,933,431		$	11,116,274		$	10,225,921
Allowance for loan losses		(141,689	)		(145,198	)		(132,960	)
Net loans		10,791,742			10,971,076			10,092,961
Loans held for sale		328,240			329,122			258,563
Investment securities:
Available for sale		3,413,816			3,628,061			3,129,310
Trading		16,337			21,923			19,600
Non-marketable		117,344			132,991			92,213
Total investment securities		3,547,497			3,782,975			3,241,123
Federal funds sold and securities purchased under agreements to resell		525,033			466,165			566,145
Cash and due from banks		684,798			620,472			497,909
Land, buildings and equipment — net		408,186			406,446			397,108
Goodwill		125,863			125,585			110,705
Other intangible assets — net		20,383			19,348			18,052
Other assets		336,058			297,274			336,805
Total assets	$	16,767,800		$	17,018,463		$	15,519,371
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing demand	$	1,442,782		$	1,398,766		$	1,271,730
Savings, interest checking and money market		7,288,768			7,481,065			6,910,086
Time open and C.D.’s of less than $100,000		2,249,289			2,104,566			2,363,580
Time open and C.D.’s of $100,000 and over		1,610,226			1,551,228			1,516,326
Total deposits		12,591,065			12,535,625			12,061,722
Federal funds purchased and securities sold under agreements to repurchase		1,457,236			1,613,801			1,494,604
Other borrowings		781,864			1,075,685			346,137
Other liabilities		359,514			187,812			159,221
Total liabilities		15,189,679			15,412,923			14,061,684
Stockholders’ equity:
Preferred stock		—			—			—
Common stock		359,782			360,125			352,330
Capital surplus		474,410			476,497			422,189
Retained earnings		715,511			753,490			756,014
Treasury stock		(673	)		(172	)		(65,904	)
Accumulated other comprehensive income (loss)		29,091			15,600			(6,942	)
Total stockholders’ equity		1,578,121			1,605,540			1,457,687
Total liabilities and stockholders’ equity	$	16,767,800		$	17,018,463		$	15,519,371

5

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCES

(Unaudited)	For the Three Months Ended									For the Six Months Ended
(Dollars in thousands)	March 31			June 30			June 30			June 30			June 30
	2008			2008			2007			2008			2007
Loans:
Business	$	3,503,869		$	3,549,811		$	3,134,650		$	3,526,840		$	3,061,808
Real estate — construction		684,388			699,502			657,956			691,945			652,208
Real estate — business		2,233,985			2,282,139			2,224,877			2,258,062			2,186,317
Real estate — personal		1,526,240			1,510,346			1,514,445			1,518,293			1,501,747
Consumer		1,635,503			1,675,389			1,518,855			1,655,446			1,491,272
Home equity		458,794			466,240			438,471			462,517			436,890
Consumer credit card		761,197			785,451			646,699			773,324			639,860
Overdrafts		14,118			10,662			11,311			12,390			11,803
Total loans		10,818,094			10,979,540			10,147,264			10,898,817			9,981,905
Loans held for sale		312,532			331,366			354,878			321,949			352,937
Investment securities (excluding unrealized gains and losses):
Available for sale		3,297,046			3,414,176			3,156,708			3,355,611			3,242,457
Trading		50,006			22,312			24,430			36,159			21,509
Non-marketable		111,429			129,495			90,018			120,462			83,800
Total investment securities		3,458,481			3,565,983			3,271,156			3,512,232			3,347,766
Federal funds sold and securities purchased under agreements to resell		491,227			421,539			503,526			456,383			529,802
Total interest earning assets		15,080,334			15,298,428			14,276,824			15,189,381			14,212,410
Total assets		16,228,334			16,404,444			15,315,984			16,316,389			15,245,301
Deposits:
Non-interest bearing deposits		660,951			660,063			650,119			660,507			635,072
Interest bearing deposits:
Savings		381,498			409,848			406,313			395,673			401,884
Interest checking		201,793			186,802			193,278			194,298			179,359
Money market		6,975,961			7,226,086			6,812,831			7,101,023			6,764,851
Time open & C.D.’s of less than $100,000		2,317,963			2,186,889			2,347,311			2,252,426			2,327,855
Time open & C.D.’s of $100,000 and over		1,589,816			1,585,354			1,561,463			1,587,585			1,468,871
Total interest bearing deposits		11,467,031			11,594,979			11,321,196			11,531,005			11,142,820
Total deposits		12,127,982			12,255,042			11,971,315			12,191,512			11,777,892
Borrowings:
Federal funds purchased and securities sold under agreements to repurchase		1,628,247			1,419,523			1,471,784			1,523,885			1,719,039
Long-term debt and other borrowings		730,074			998,506			275,618			864,290			163,647
Total borrowings		2,358,321			2,418,029			1,747,402			2,388,175			1,882,686
Total interest bearing liabilities		13,825,352			14,013,008			13,068,598			13,919,180			13,025,506
Total stockholders’ equity		1,559,800			1,594,110			1,473,999			1,576,955			1,461,840
Net yield on interest earning assets (tax-equivalent basis)		3.79	%		3.87	%		3.82	%		3.83	%		3.83	%

6

COMMERCE BANCSHARES, INC.
Management Discussion of Second Quarter Results
June 30, 2008

For the quarter ended June 30, 2008, net income amounted to $56.0 million, a slight increase over the same quarter last year but a decrease of $8.2 million from the previous quarter. The return on average assets was 1.4%, the return on average equity was 14.1% and the efficiency ratio was 59.1%. The current quarter included a pre-tax gain of $6.9 million on the sale of a small branch in southeast Kansas. The 1^st quarter of 2008 included both pre-tax cash gains of $22.2 million on sales of VISA, Inc. (VISA) stock and an $8.8 million reduction of an indemnification obligation related to VISA litigation costs.

Balance Sheet Review
During the 2^nd quarter of 2008, average loans, excluding loans held for sale, increased $161.4 million, or 1.5%, compared to the previous quarter, representing annualized growth of 6.0%. Also, average loans increased $832.3 million, or 8.2%, this quarter compared to the same period last year. Overall during the quarter, the increase in average loans compared with the previous quarter consisted mainly of growth in business real estate ($48.2 million), business ($45.9 million), consumer ($39.9 million) and consumer credit card loans ($24.3 million). These increases were partly offset by a decline of $15.9 million in personal real estate loans. The growth in both average business and business real estate loans this quarter was partly due to increased new and seasonal lending to a number of business loan customers coupled with seasonal reductions in loans to grain dealers. Growth in consumer credit cards was mainly due to new accounts resulting from increased marketing efforts over the last twelve months. Demand also remained solid for other consumer loans, mainly in marine and RV loans.

Available for sale investment securities (excluding fair value adjustments) increased on average by $117.1 million this quarter compared with the previous quarter. During the current quarter, sales, maturities and principal pay-downs of securities totaled $272.3 million, while the Company reinvested $117.1 million in mortgage-backed securities, $58.4 million in other asset-backed securities, and $30.1 million in municipal securities. At the end of the current quarter, investments of $312.0 million were made in short-term government mutual funds, resulting from a short-term increase in repurchase agreements at quarter end. These investments were sold and the related repurchase agreements repaid in July.

Total average deposits increased $127.1 million (4.2% annualized) during the 2^nd quarter of 2008 compared to the previous quarter, and $283.7 million, or 2.4%, compared to the 2^nd quarter of 2007. Compared to the previous quarter, growth in average deposits resulted from increases in savings accounts ($28.4 million) and money market accounts ($250.1 million), offset by a decline in certificates of deposit ($135.5 million). The average loans to deposits ratio in the current quarter was 92.3%, compared to 91.8% in the previous quarter.

During the current quarter, the Company’s average borrowings increased $59.7 million compared to the prior quarter. This overall increase was mainly due to increases in funding from the Federal Home Loan Bank ($180.5 million) and the Federal Reserve Bank ($88.0 million), but was partly offset by a $208.7 million reduction in federal funds purchased and repurchase agreements.

Net Interest Income
Net interest income in the 2^nd quarter of 2008 amounted to $144.8 million, an increase of $4.7 million, or 3.3%, compared with the previous quarter and an increase of $10.9 million, or 8.2%, compared to the 2^nd quarter of last year. During the 2^nd quarter of 2008, the net yield on earning assets (tax equivalent) was 3.87%, compared with 3.79% in the previous quarter and 3.82% in the same period last year.

The increase of $4.7 million in net interest income in the 2^nd quarter of 2008 over the previous quarter was primarily the result of lower rates paid on deposits and borrowings coupled with an increase in average loan and investment securities balances, but offset by lower rates earned on total earning assets. Interest income on loans (tax equivalent) decreased by $13.4 million this quarter, mainly due to lower rates earned on virtually all loan products. This decline was partly offset by higher average balances, mainly in business, business real estate, consumer banking and consumer credit card loans. Interest income on investment securities increased $732 thousand (tax equivalent) as a result of higher average balances, especially on municipal and mortgage-backed securities, which was partly offset by lower rates earned on most of the portfolio.

Interest expense on deposits declined $14.5 million in the 2^nd quarter of 2008 compared with the previous quarter as a result of lower rates paid on nearly all deposit products, especially on premium money market accounts and certificates of deposit. Interest expense on other borrowings decreased $4.6 million due to lower rates paid on federal funds purchased and repurchase agreements, but was offset by higher balances outstanding of Federal Home Loan Bank advances and other borrowings from the Federal Reserve.

The overall tax equivalent yield on interest earning assets in the 2^nd quarter declined 45 basis points from the previous quarter to 5.54%, while the overall cost of interest bearing liabilities also decreased 58 basis points to 1.82%.

Non-Interest Income
For the 2^nd quarter of 2008, total non-interest income amounted to $102.7 million, an increase of 9.2% compared to $94.1 million in the same period last year, and an increase of 11.5% compared to $92.2 million recorded in the previous quarter. The increase in non-interest income over the 2^nd quarter of last year resulted mainly from double-digit growth in bank card, corporate cash management and bond trading income. Bank card fees for the quarter increased 13.7% over the 2^nd quarter of last year, primarily due to growth in fees earned on debit, merchant and corporate card transactions, which grew by 12.4%, 14.7% and 31.8%, respectively. Trust fees for the quarter increased 1.6% over the same period last year as growth was somewhat restricted by lower fees earned on the

7

COMMERCE BANCSHARES, INC.
Management Discussion of Second Quarter Results

June 30, 2008

Company’s mutual funds and by non-recurring fees earned in previous periods. Deposit account fees declined 6.1% this quarter from the same period last year as a result of a 14.8% decline in overdraft fee income, offset by growth in corporate cash management fees of 24.1%. Bond trading income for the quarter totaled $3.2 million, an increase of $1.7 million over the same period last year due to continued higher corporate and correspondent bank sales. Gains on sales of student loans in the current quarter declined $1.4 million as fewer loans were sold this quarter.

Included in non-interest income was a pre-tax gain of $6.9 million on the sale of a bank branch in the 2^nd quarter of 2008. The branch in southeast Kansas had total loans and deposits of $23.2 million and $85.0 million, respectively. The ratio of non-interest income to total revenue was 41.5% in the 2^nd quarter of 2008.

Investment Securities Gains and Losses
Net securities gains amounted to $1.0 million in the 2^nd quarter of 2008, compared to net gains of $23.3 million in the previous quarter and net losses of $493 thousand in the same quarter last year. Net gains in the current quarter were mostly related to fair value adjustments made on certain of the Company’s private equity investments. Minority interest expense related to fair value adjustments on private equity investments totaled $220 thousand and was recorded in other non-interest expense. The large net gain in the previous quarter was mainly related to a gain of $22.2 million on the sale of VISA class B shares back to VISA.

Non-Interest Expense
Non-interest expense for the current quarter amounted to $147.4 million, an increase of $6.7 million, or 4.7%, compared with amounts recorded in the previous quarter, and was $11.1 million, or 8.1%, higher than amounts recorded in the same quarter last year. Exclusive of the reversal of certain VISA litigation charges in the previous quarter, non-interest expense in the current quarter was down 1.4% compared to the previous quarter. Compared to the 2^nd quarter of last year, salaries and benefits expense increased $7.1 million, or 9.4%, mainly as a result of higher incentives earned, increased medical costs, and the effects of several growth initiatives. Full-time equivalent employees totaled 5,181 and 5,051 at June 30, 2008 and 2007, respectively.

Compared with the 2^nd quarter of last year, occupancy and supplies and communication costs were down slightly in the current quarter, while equipment and data processing costs increased 9.9% and 13.8%, respectively. The increase in equipment costs reflects higher repair and maintenance costs, while the increase in data processing costs mainly reflects higher bank card processing costs which increased in relation to higher bank card revenues this quarter. Exclusive of bank card costs, core data processing expense increased 7.0% as a result of investments in new software systems.

Income Taxes
The effective tax rate for the Company was 32.6% for the current quarter, compared with 32.3% in the previous quarter and 32.2% in the 2^nd quarter of 2007.

Credit Quality
Net loan charge-offs for the 2^nd quarter of 2008 amounted to $14.5 million, compared with $11.9 million in the prior quarter and $9.1 million in the 2^nd quarter of last year. The increase in net charge-offs in the 2^nd quarter of 2008 compared to the previous quarter was mainly the result of an increase in both personal banking and consumer credit card loan losses totaling a combined $2.1 million, coupled with the effects of several larger business loan recoveries received in the previous quarter totaling $1.6 million. Combined net loan charge-offs for business, business real estate and construction loans totaled $1.3 million, and remained at lower levels. The ratio of annualized net loan charge-offs to total average loans was .53% in the current quarter compared to .44% in the previous quarter.

For the 2^nd quarter of 2008, annualized net charge-offs on average consumer credit card loans increased to 4.06%, compared with 3.48% in the previous quarter and 3.69% in the same period last year. Additionally, personal banking loan net charge-offs for the quarter amounted to .88% of average personal banking loans, compared to .76% in the previous quarter and .37% in the same quarter last year. The provision for loan losses for the quarter totaled $18.0 million, and was $2.0 million lower than the previous quarter and $8.9 million higher than the 2^nd quarter of 2007. The provision for loan losses exceeded net loan charge-offs by $3.5 million and increased the allowance for loan losses, reflecting greater risk in the broader economy and higher assumed incurred losses. The allowance for loan losses at June 30, 2008 amounted to $145.2 million, or 1.31% of total loans, excluding loans held for sale.

Total non-performing assets amounted to $36.7 million, an increase of $880 thousand over the previous quarter, and represented .33% of loans outstanding. Non-performing assets are comprised of non-accrual loans ($29.2 million) and foreclosed real estate ($7.5 million). Loans past due more than 90 days and still accruing interest totaled $26.3 million at June 30, 2008.

Other
The Company maintains a treasury stock buyback program. During the current quarter, the Company purchased 77 thousand shares of treasury stock at an average cost of $43.19 per share.

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 statement.

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