Commerce Bancshares announced earnings of $.65 per common share for the three months ended March 31, 2016.
Article continues below
This compares to $.63 per share in the prior quarter and $.58 per share in the first quarter of 2015.
Net income attributable to Commerce Bancshares for the first quarter amounted to $65.4 million, compared to $63.7 million in the prior quarter and $61.1 million in the same quarter last year.
For the quarter, the return on average assets was 1.07%, the return on average common equity was 11.2% and the efficiency ratio was 62.62%.
In announcing these results, David W. Kemper, chairman and CEO, said, "This quarter we are pleased to report solid top line revenue growth of 6% annualized along with continued strong average loan growth.
"Average total loans increased by $313.1 million, or 10% annualized, this quarter compared to the previous quarter, with most of this growth occurring in business, construction and business real estate lending.
"Average deposits also grew by $499.8 million, an annualized increase of 10%. This quarter our net interest income grew by $1.3 million over the prior quarter and increased $17.6 million, or 12%, over the same period last year.
"Non-interest income grew $3.0 million over the prior quarter and increased $12.5 million, or 12%, over the first quarter last year. Growth in fee income over the prior year was spread throughout a number of business lines but mainly resulted from higher deposit, bank card, trust, swap, tax credit and mortgage banking fees. Non-interest expense grew by $1.7 million over the previous quarter.â€
"Net loan charge-offs for the current quarter totaled $8.8 million, compared to $9.2 million in the previous quarter and $7.4 million in the first quarter of 2015.
"The decrease in net loan charge-offs compared to the previous quarter was mainly due to lower personal real estate and consumer credit card net loan losses but offset by slightly higher commercial loan charge-offs. During the current quarter, the provision for loan losses totaled $9.4 million, or $600 thousand higher than net loan charge-offs.
"The allowance for loan losses amounted to $152.1 million at March 31, 2016, or 1.20% of period end loans, and was 5.2 times non-performing loans. Total non-performing assets increased $2.0 million over the previous quarter to $31.4 million this quarter."
Total assets at March 31, 2016 were $24.5 billion, total loans were $12.7 billion, and total deposits were $20.7 billion.
During the quarter, Commerce Bancshares paid a common cash dividend of $.225 per share, representing a 5% increase over the rate paid in 2015 and also paid a 6% cash dividend on its preferred stock. ■