Commerce Bancshares in Kansas City, Mo., reported higher second-quarter profit, citing the appreciation of inflation-protected securities and higher loan interest.
The $23.7 billion-asset company's profit rose 8.4% to $72.1 million, from a year earlier. Earnings per share of 75 cents beat the average estimate of analysts polled by Bloomberg by eight cents.
Net interest income rose 2% to $163.7 million, primarily due to a $12.1 million increase in the value of U.S. Treasury inflation-protected securities.
Noninterest income rose 4.9% to $114.1 million on higher fees from trust services, bank cards, brokerage services, interest-rate swaps and mortgage banking.
Noninterest expense rose 1.7% to $165.3 million on higher salaries and employee benefits and costs for data processing and software. Commerce's efficiency ratio improved 80 basis points to 59.36%.