Commerce Bancshares' 1Q profit slides 50%

Profit at Kansas City-based Commerce Bancshares Inc. slid in the first quarter to less than half of what it was in the same quarter last year, the holding company for Commerce Bank reported Tuesday.

Net income for the quarter ended March 31 was $30.8 million, down 52 percent from $64.2 million in first-quarter 2008. It also represents a 30 percent decline since the fourth quarter of 2008.

Earnings were 40 cents per share, down from 57 cents in the fourth quarter and 84 cents per share a year ago.

The declines were due primarily to an increase in loan-loss provisions in the first quarter. Provisions for loan-losses were $43.2 million in the first quarter, up from $41.3 million in the fourth quarter and $20 million in first-quarter 2008.

As of March 31, Commerce's allowance for loan losses was $180.9 million, an $8.2 million increase from Dec. 31. They represent 164 percent of total nonaccrual loans and 1.65 percent of outstanding loans.

Average deposits grew 6.5 percent in the first quarter, and net interest income grew 7 percent. Total assets as of March 31 were $17.9 billion; total loans were $11.4 billion; and total deposits were $14 billion.

Shares (Nasdaq: CBSH) closed Tuesday at $33.30, compared to a 52-week range of $27.80 to $52.86.[[In-content Ad]]