Commerce Bancshares in Kansas City reported lower quarterly profit on higher expenses.
The $22.7 billion-asset company reported on Tuesday that its net income fell 5% from a year earlier, to $62.7 million, or 62 cents a share.
Noninterest expenses rose 6%, to $170.3 million. The company spent $1 million more in marketing costs, while salary and employee benefits increased by 5%.
Net interest income fell by 2%, to $152 million. Total loans rose by 4.5%, to $11.4 billion, while the net interest margin compressed by 18 basis points, to 2.88%.
Noninterest income rose 3%, to $112.3 million, as higher trust fees and consumer brokerage services were offset by fewer loan sales and lower capital market fees.
The company also recorded a $3.7 million security gain in the fourth quarter, compared to a $1.3 million loss a year earlier. The gains this quarter were comprised of fair-value adjustments on the company's private equity portfolio.
Net chargeoffs more than quadrupled, to $9.7 million. The loan-loss provision fell 16%, to $4.7 million.
