Commerce in Missouri Reports Lower Profit on Declining Loan Yields

Commerce Bancshares (CBSH) in Kansas City, Mo., reported lower quarter earnings because of lower interest rates.

The $22.2 billion-asset company's first-quarter earnings fell 4% from a year earlier, to $61 million, or 67 cents a share.

Net interest income fell 6% from a year earlier, to $150.3 million, because of lower yields on loans and a $4.8 million decline in interest on government securities, Commerce said. Its loan-loss provision fell 60% from a year earlier, to $3.3 million.

An increase in fee income partially offset the decline in interest income. Noninterest income rose 6% from a year earlier, to $99.8 million, as bank-card transaction fees increased 11%, to $38.5 million, and trust fees rose 10%, to $25.1 million. Commerce reported $2.1 million on securities losses, compared to a $4 million gain a year earlier.

Commerce recently announced that John Kemper, son of Chairman and Chief Executive David Kemper, would become its president and chief operating officer.

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