Commerce Bancshares Misses Q3 Earnings View

(RTTNews) - Commerce Bancshares, Inc. (CBSH), the holding company for Commerce Bank, Wednesday reported lower profit for the third quarter, as the company's higher net interest income was offset by increases in provision for loan losses and non-interest expense.

For the quarter, net income slid to $64.6 million or 66 cents a share from $68.2 million or 69 cents a share a year ago. On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of 71 cents a share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net interest income totaled $162.04 million, higher than last year's $154.7 million. However, non-interest expense rose to $171.2 million from $161.8 million, and provision for loan losses increased to $8.36 million from $7.6 million a year ago. For the quarter, the return on average assets was 1.09 percent, the return on average common equity was 11.25 percent and the efficiency ratio was 62.5 percent.

Average loans to deposits in the quarter was 62.44 percent, compared to 60.72 percent a year ago.

David Kemper, Chairman and CEO, said, "We continue to experience solid loan growth in both our commercial and consumer businesses. Average loans this quarter grew by $211.0 million, or 7% annualized, as a result of increased business, construction, personal real estate, automobile and credit card lending activities."