Commerce Bancshares 2Q Earnings Top Estimations, Revenue Miss

Commerce Bancshares, Inc. CBSH announced six percent drop in profit for the first quarter as provision for loan lease losses jumped 37 percent. However, its earnings per share topped the Street estimations by $0.02 a share. But revenue, which grew 3.8 percent, fell shy of the expectations. Commerce Bancshares said that its net income was $69.9 million for the second quarter, which was 6 percent lower than $74.4 million recorded in the year-ago quarter. On a per share basis, earnings slipped 2.8 percent to $0.70 from $0.72 in the corresponding period of the last year. Street analysts expected $0.68 a share. The company's total revenue advanced 3.8 percent to $288.4 million from $277.9 million in the previous year quarter. This was lower than the Street analysts' predictions of $293.38 million. Commerce Bancshares Chairman and CEO, David Kemper, commented, "This quarter we continued to experience strong loan growth, improved net interest income, low credit losses and stable expenses. Average loans have grown over $300 million in each of the last three quarters, and growth in these higher earning assets has helped us manage the effects of continued low interest rates. Average deposits also grew $301.7 million this quarter, or 6% annualized, and funding costs remained low." He added, "Net interest income grew $8.1 million this quarter compared to the prior quarter, helped by higher loan interest and an increase in interest on inflation-protected securities.Core fee income continued to show good growth from deposit, trust, and mortgage banking activities. Non-interest expense totaled $177.1 million and reflected a slight decline from the previous quarter." On Tuesday, the stock advanced 1.55 percent.