Commerce Bancshares, Inc. announced earnings of $.61 per common share for the three months ended March 31, 2015 compared to $.62 per share in the prior quarter and $.64 per share in Q1 2014.
Article continues below
Net income attributable to Commerce Bancshares, Inc. for the first quarter amounted to $61.1 million, compared to $62.7 million in the prior quarter and $64.3 million in the same quarter last year. For the quarter, the return on average assets was 1.05%, the return on average common equity was 10.7% and the efficiency ratio was 64.6%.
In announcing these results, David W. Kemper, chairman and CEO, said, "Average loans grew by $142 million, or 5% annualized, this quarter compared to the previous quarter, with most of this growth occurring in business and automobile lending. Average deposits also grew by $279 million, an annualized increase of 6.0%.
"This quarter our net interest margin was relatively stable, exclusive of the decline in earnings on our inflation-protected securities. Fee income was up 4% over the previous year as trust fee income grew 11% while brokerage and swap fees also experienced solid growth.
"Our new mortgage banking initiative, which began this quarter, also generated good growth in new fees. Non-interest expense decreased $6.3 million from the previous quarter and was up 1% compared with the prior year."
"Net loan charge-offs for the current quarter totaled $7.4 million, compared to $9.7 million in both the previous quarter and the first quarter of 2014. The decrease in net loan charge-offs compared to the previous quarter was mainly due to lower consumer net loan losses of $814 thousand, lower commercial loan charge-offs and an increase in recoveries of $512 thousand on construction loans.
"During the current quarter, the provision for loan losses totaled $4.4 million, or $3.0 million less than net loan charge-offs. The allowance for loan losses amounted to $153.5 million at March 31, 2015, or 1.31% of period end loans, and was 4.3 times non-performing loans. Total non-performing assets decreased $5.5 million from the previous quarter to $40.8 million this quarter."
Total assets at March 31, 2015 were $24.0 billion, total loans were $11.7 billion, and total deposits were $19.6 billion. During the quarter, the company paid a common cash dividend of $.225 per share, representing a 5% increase over the rate paid in 2014 and also paid a 6% cash dividend on its preferred stock, issued in 2014. ■