FONT-SIZE Plus   Neg

Commerce Bancshares Profit Rises - Update

Commerce Bancshares Inc. (CBSH) Thursday reported a higher first-quarter profit on lower loan-loss provision and other costs. Meanwhile, a slide in revenue were offset by higher investment gains.

Results for the quarter were helped by a sharp decrease in loan-loss provision to $8 million from $15.8 million last year. Annualized net loan charge-offs on average consumer credit card loans was 3.40 percent, compared to 4.73 percent in the year-ago quarter.

The quarter saw a drop in non-interest expense to $150.5 million from $154 million last year, partly reflecting lower debit card interchange fees. Results were also helped by investment securities gain of $4 million, up from $1.3 million in the prior year.

Kansas City, Missouri-based Commerce Bancshares reported first-quarter net income of $65.8 million or $0.74 per share, compared to $60.5 million or $0.66 per share last year.

On average, 13 analysts polled by Thomson Reuters expected earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income for the quarter fell to $159.7 million from $161 million last year. Net yield on earning assets was lower at 3.45 percent, compared to 3.85 percent last year. Non interest income was lower at $94.6 million, compared to $95.9 million a year ago.

Analysts expected total revenue of $259.28 million for the quarter.

At the end of the quarter, net loans for the company totaled $9.07 billion, compared to $9.2 billion in the prior year. Deposits amounted to $16.8 billion, compared to $15.5 billion last year.

The company said that during the quarter it purchased 810,642 shares of treasury stock at an average cost of $38.98.

CBSH is trading at $40.01, up $0.85 or 2.17%, on the Nasdaq.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Qualcomm is reportedly in talks with NXP Semiconductor NV (NXPI) for a possible acquisition, reports said. According to Bloomberg, negotiations are on with a probable price of $110 t $120 per NXP share. The deal would value NXP at around $34.7 billion. Regulators have confirmed the eleventh U.S. fatality linked to Takata Corp.'s defective air bag inflators. The National Highway Traffic Safety Administration or NHTSA said Thursday that a crash fatality in Riverside County, California, was tied to the rupture of a recalled Takata air bag inflator. Reynolds American Inc. (RAI) on Friday confirmed that British American Tobacco plc (BATS.L, BTI) has offered to buy the remaining 57.8 percent stake that it does not own in the US tobacco company for $47 billion. Reynolds said its board of directors will evaluate the offer, and respond accordingly to BAT, which currently owns 42.2 percent stake in Reynolds. The proposal represents an enterprise va
comments powered by Disqus
Follow RTT