Commerce Bancshares (CBSH) in Kansas City, Mo., reported higher quarterly earnings because of a slight increase in revenue.

The $23 billion-asset company said in a press release Tuesday that its second-quarter profit rose 1.1% from a year earlier, $66.5 million. Earnings per share of 70 cents beat analyst estimates by 2 cents.

Net interest income rose by 0.6%, to $160 million. Total loans rose by 9%, to $11.3 billion. The net interest margin compressed by 8 basis points, to 3.13%.

Noninterest income increased 6%, to $108.7 million, because of corporate card, trust and deposit fees. Noninterest expenses rose 4%, to $162.9 million, on higher costs tied to salaries and employee benefits.

Net chargeoffs fell 19%, to $7.6 million, because of increased recoveries on commercial loans and a lower number of consumer-related chargeoffs. The loan-loss provision rose by 2%, to $7.6 million.

Commerce repurchased 1.1 million shares of common stock for $47.9 million during the second quarter. The company in May sold three branches in rural southeastern Missouri to New Era Bank. 

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