Commerce Bancshares Inc. in Kansas City, Mo., said Wednesday that its third-quarter profits declined 52% from a year earlier, to $26.5 million.
The $17 billion-asset company attributed the drop to its previously announced repurchase of $530 million of auction-rate securities from customers. The repurchase led to a $33 million noncash loss, Commerce said.
Asset quality also slipped in the quarter. Commerce's loan chargeoffs surged 62%, to $18.7 million, and nonperforming assets increased 12%, to $46.2 million. The chargeoff rate for its consumer credit cards rose 104 basis points from a year earlier, to 4.19%.