Commerce Bank posts 17% dip in annual earnings

Kansas City-based Commerce Bancshares Inc. (Nasdaq: CBSH) reported a decrease in 2020 earnings as the coronavirus pandemic impacted its bottom line.

The operator of six Commerce Bank branches in Springfield posted a 17% drop in full-year net income available to common shareholders, according to a news release. Profits were $342.1 million, or $2.91 per diluted share, compared with $412.2 million, or $3.41 per diluted share, in 2019.

However, fourth quarter profits were up 24% to roughly $130 million.

"While economic uncertainty remains top of mind, overall economic conditions, most notably unemployment, continued to improve in the fourth quarter at a pace that exceeded economic forecasts," Commerce CEO John Kemper said in the release. "These factors, coupled with a forecast projecting an economic recovery, resulted in a decrease in the allowance for credit losses."

Provision for credit losses for the year came to $137.2 million, a 172% increase over 2019.

As of Dec. 31, Commerce had $32.9 billion in assets, $26.9 billion in deposits and $16.3 billion in loans, according to the release.

CBSH shares were trading at $68.33 per share as of 11:02 a.m., compared with a 52-week range of $43.34 to $73.17.