Commerce shares reach 52-week high despite 2Q profit drop

Though Kansas City-based Commerce Bancshares Inc. (Nasdaq: CBSH) posted a decrease in second-quarter net income, its shares reached a 52-week high of $46.97 this morning.

By 11 a.m., prices had calmed to $45.36. The company's 52-week low is $34.69.

The company, which operates seven Commerce Bank branches in Springfield, posted second-quarter profits of $65.8 million, a 7 percent decrease compared to $70.7 million in the same quarter a year ago, according to a July 11 news release.

The bank holding company reported earnings per diluted share of 72 cents for the quarter that ended June 30, a 4-cent drop from second-quarter 2012, according to a news release.

"Our second quarter was highlighted by continued strong growth in loans, improved net interest income and continued fee income growth," Commerce Chairman and CEO David Kemper said in the release. "Compared to the previous quarter, average loans increased $242 million, or 10 percent annualized, with growth coming from both commercial and consumer lending activities."

Second-quarter financial notes:

• Commerce posted net interest income of $159.5 million, a 6.1 percent increase from $150.3 million in the first quarter, but a 3.4 percent decrease compared to $165.1 million in second-quarter 2012.
• Provision for loan losses jumped 41 percent to $7.4 million from $5.2 million in the same quarter last year.
• Salaries and employee benefits increased to $89.6 million from $87.5 million.

As of June 30, Commerce's assets were $21.9 billion, total loans were $10.4 billion and deposits were $17.9 billion. The company operates 360 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado, according to the release.