Commerce Bancshares Inc. of Kansas City, Mo., reported Wednesday that its first-quarter earnings fell 3% from a year earlier, to $49.8 million.
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Diluted earnings per share rose 3%, to 73 cents, which beat analysts' average expectations by 2 cents.
Net interest income fell 1%, to $121 million. The $14.1 billion-asset company attributed the drop to the higher rates it is paying on deposits and short-term borrowings and a reduction in its securities portfolio.
Noninterest income declined 6%, to $80.7 million, led by a 5% drop in deposit account fees. Rising interest rates led to larger account balances and thus fewer fees, particularly on commercial cash management accounts, Commerce said.
