Commerce Bank increases 2Q profits by 8%

Kansas City-based Commerce Bancshares Inc. (Nasdaq: CBSH) posted second-quarter earnings of $74.3 million, increasing its bottom line by 7.6 percent compared to net income of $69 million in the same quarter last year.

In its second-quarter earnings release posted today, Commerce reported earnings per diluted share of 84 cents for the three months that ended June 30, compared to 75 cents per share in second-quarter 2011.

"We were pleased to report record second-quarter earnings, which, compared to the previous quarter, was driven by 4.6 percent growth in top-line revenue, continued improving credit quality and solid expense control,"

In the release, Commerce Chairman and CEO David Kemper attributed the record second-quarter earnings to 4.6 percent top-line revenue growth, continued improving credit quality and expense control.

Second-quarter financial notes:

• Net interest income grew to $165.1 million from $164.7 million in the same quarter of 2011.
• Noninterest income dropped slightly to $100.8 million from $101.3 million, while noninterest expense fell to $150.7 million from $153.5 million.
• The company realized loan growth of $165.1 million in business, personal real estate and consumer loans.

As of June 30, Commerce reported total assets of $20.7 billion, deposits of $16.8 billion and loans of $9.4 billion. The company operates approximately 360 branches in Missouri, Illinois, Kansas, Oklahoma and Colorado. The holding company for Commerce Bank operates seven branches in Springfield.

During the second quarter, the company repurchased more than 1 million shares of its stock at an average price of $38.76 per share. The company's shares were trading at $39.24 as of 10:29 a.m., compared to a 52-week range of $31.49 to $41.90.