Commerce Bancshares Inc. in Kansas City reported a modest increase in third-quarter net income, which it credited largely to a 10% increase in fee income, to $86.9 million.
The $13.9 billion-asset company said Wednesday that its net income rose 0.5% from the same quarter last year, to $62.8 million.
In the first three quarters of the year, Commerce's earnings fell 0.4% from a year earlier, to $167 million.
Though it held its expenses in check, and its third-quarter net interest margin expanded by 4 basis points, to 3.86%, Commerce said its results were hurt by an increase in consumer-loan chargeoffs. The company wrote off $5.9 million of credit card debt, 27% more than it did in the third quarter of last year. Overdraft loan chargeoffs nearly tripled, to $715,000.
Commerce added $8.9 million to its loan-loss reserves in the quarter, compared with $6.6 million a year earlier.
Over all, Commerce's asset quality remained solid. Nonaccrual loans, foreclosed real estate, and loans past due by at least 90 days totaled just $36.4 million, or 0.42% of net loans.
