Commerce Bancshares announced record earnings of $.75 per common share for the second quarter ended June 30, 2015 compared to $.61 per share in the prior quarter and $.66 per share in Q2 2014.
Article continues below
Net income attributable to Commerce Bancshares, Inc. for the second quarter amounted to $74.4 million, compared to $61.1 million in the prior quarter and $66.5 million in the same quarter last year. For the quarter, the return on average assets was 1.26%, the return on average common equity was 12.9% and the efficiency ratio was 59.4%.
For the six months ended June 30, 2015, earnings per common share totaled $1.36 compared to $1.30 for the first six months of 2014. Net income attributable to Commerce Bancshares, Inc. amounted to $135.4 million for the six months ended June 30, 2015 compared to $130.8 million for the same period in 2014.
For the first six months of 2015, the return on average assets was 1.15%, and the return on average common equity was 11.8%.
David W. Kemper, chairman and CEO, said, "This quarter we are pleased to report continued solid loan growth coupled with growth in top line revenues. Compared to the previous quarter, average loans grew by $210.3 million, or 7% annualized, as a result of increased business, construction, personal real estate and automobile lending.
"Net interest income grew this quarter by $17.5 million compared to the prior quarter, mostly due to increased earnings on our inflation-protected securities and higher loan interest.
"Non-interest income increased 4.9% over the the second quarter of 2014 due to solid growth in fees from trust, bank card, brokerage, interest rate swap and mortgage banking activities. Non-interest expense increased 1.0% over the previous quarter and was up 1.7% compared with the second quarter of 2014."
"Credit results remain strong as net loan charge-offs for the current quarter totaled $8.8 million, compared to $7.4 million in the previous quarter and $7.6 million in the same quarter last year. The increase in net loan charge-offs this quarter compared to the previous quarter was mainly due to a $1.0 million charge-down of a business real estate loan.
"During the current quarter, the provision for loan losses totaled $6.8 million, or $2.0 million less than net loan charge-offs. Total non-performing assets decreased $10.0 million from the previous quarter to $30.8 million this quarter.
"The allowance for loan losses amounted to $151.5 million at June 30, 2015, or 1.27% of period- end loans, and was 5.7 times non-performing loans."
Total assets at June 30, 2015 were $23.7 billion, total loans were $11.9 billion, and total deposits were $19.3 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.
"Also, in May 2015, the Company entered into a new $100 million accelerated stock repurchase agreement." ■