Commerce earnings hit $64M in 1Q

Kansas City-based Commerce Bancshares Inc. (Nasdaq: CBSH) increased first-quarter net income to $64.3 million, representing a 5.4 percent bump from earnings of $61 million in the first quarter of 2013.

Diluted earnings per share for the three months ended March 31 were 67 cents for the operator of seven Commerce Bank branches in Springfield. That's up from 63 cents in the same quarter a year ago, according to its earnings report.

Commerce Chairman and CEO David Kemper pointed to strong loan demand during the quarter, with loans increasing by $288 million. He also noted average deposits grew by $293 million.

"However, these gains were offset by securities losses of $5.2 million and write downs in fair value on certain bank-owned real estate totaling $1.4 million," Kemper said in the release.

First-quarter financial notes:

• The company's provision for loan losses increased 194 percent to $9.7 million from $3.3 million a year earlier.
• Interest income rose to $160 million from $158.7 million, and interest expense decreased to $6.9 million from $8.4 million.
• Net securities gains totaled $10 million during the first quarter, compared to losses of $2.2 million in first-quarter 2013.

Commerce's assets were $22.8 billion, loans were $11.2 billion, and deposits were $19.2 billion, as of March 31. The company operates approximately 360 branches in Missouri and four other states, a news release said.

CBSH shares were trading at $44.08 as of 10:23 a.m., compared to a 52-week range of $37.39 to $47.45.