Commerce Bancshares Q2 Profit Up 8%, Beats View

(RTTNews) - Commerce Bancshares, Inc. (CBSH), the holding company for Commerce Bank, reported an 8 percent increase in profit for the second quarter from last year on higher revenues and a decline in provision for loan losses. Earnings per share for the quarter beat analysts' expectations.

The Kansas City, Missouri-based company reported net income available to common stockholders for the second quarter of $72.10 million or $0.75 per share, up from $66.53 million or $0.66 per share in the prior-year quarter.

On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income for the quarter rose 2 percent to $163.66 million from $160.49 million in the year-ago period.

Meanwhile, total non-interest income grew 5 percent to $114.09 million from $108.76 million in the prior-year quarter, mainly due to growth in trust fees as well as higher fees earned on interest rate swap, bank card, mortgage banking, and brokerage transactions.

Analysts had a consensus revenue estimate of $275.32 million for the quarter.

Provision for loan losses for the quarter decreased 11 percent to $6.76 million from $7.56 million a year ago. Total non-interest expense rose 2 percent to $165.32 million, mainly due to higher salaries and benefits expense as well as higher data processing costs.

Net loan charge-offs for the quarter totaled $8.76 million, up from $7.56 million in the prior-year quarter. The ratio of annualized net loan charge-offs to total average loans was 0.30 percent.

For the quarter, the return on average assets totaled 1.26 percent, the return on average equity was 12.9 percent and the efficiency ratio was 59.4 percent.

At the end of the quarter, total non-performing assets amounted to $30.83 million, down from $51.71 million at the end of the year-ago quarter.

Total loans at the end of the quarter were $11.93 billion, up from $11.46 billion a year ago. Total deposits also increased to $19.30 billion from $18.94 billion in the previous year.

Total assets at the end of the second quarter were $23.71 billion, compared to $23.01 billion last year.

CBSH is currently trading at $47.02, down $0.06 or 0.13 percent on a volume of 65,834 shares.