Commerce Bank reports 9% 1Q earnings increase

Kansas City-based Commerce Bancshares Inc. (Nasdaq: CBSH) today reported first-quarter earnings of $65.8 million, an 8.8 percent increase compared to net income of $60.45 million in the same quarter last year.

The holding company for seven Commerce Bank branches in Springfield reported earnings per diluted share of 74 cents during the quarter ended March 31, an 8-cent uptick from first-quarter 2011, according to a news release.

"The growth over last year resulted mainly from a decline in our provision for loan losses of $7.6 million coupled with revenue growth in our corporate card, capital markets and money management businesses of 17 percent, 46 percent and 6 percent, respectively," Commerce Chairman and CEO David Kemper said in the release.

First-quarter highlights:

• The company's return on average assets was 1.29 percent, return on average equity was 12 percent and efficiency ratio was 58.9 percent.
• Noninterest income was $94.58 million, down from $85.9 million in the same quarter of 2011, while noninterest expense decreased to $150.46 million from $153.96 million.
• Average loans grew $70.8 million, or 1 percent, due to growth in business, business real estate and personal real estate loans. As of March 31, total loans were $9.3 billion.
• Provision for loan losses totaled $150.46 million, down from $153.96 million the prior quarter.
• Salaries and benefits increased by $2.2 million, or 2.5 percent, compared to the same quarter last year, due to higher incentive compensation, higher medical costs, payroll taxes and 401(k) expenses, the release said.

As of March 31, Commerce had total assets of $20.5 billion and total deposits of $16.8 billion. The company operates approximately 360 branches in Missouri, Illinois, Kansas, Oklahoma and Colorado.

The company's shares were trading at $39.98 as of 11:39 a.m., compared to a 52-week range of $31.49 to $41.90.