Commerce Bancshares Q2 net income amounted to $69.9 million
Staff Writer |
Commerce Bancshares announced earnings of $.70 per common share for the three months ended June 30, 2016 compared to $.65 per share in the prior quarter and $.72 per share in Q2 2015.
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Net income attributable to Commerce Bancshares for the second quarter amounted to $69.9 million, compared to $65.4 million in the prior quarter and $74.4 million in the same quarter last year.
For the quarter, the return on average assets was 1.15%, the return on average common equity was 11.7% and the efficiency ratio was 61.3%.
For the six months ended June 30, 2016, earnings per common share totaled $1.35 compared to $1.30 for the first six months of 2015.
Net income attributable to Commerce Bancshares, Inc. amounted to $135.3 million for the six months ended June 30, 2016 compared to $135.4 million last year. For the first six months of 2016, the return on average assets was 1.11% and the return on average common equity was 11.4%.
David W. Kemper, chairman and CEO, said, "This quarter we continued to experience strong loan growth, improved net interest income, low credit losses and stable expenses.
"Average loans have grown over $300 million in each of the last three quarters, and growth in these higher earning assets has helped us manage the effects of continued low interest rates.
"Average deposits also grew $301.7 million this quarter, or 6% annualized, and funding costs remained low. Net interest income grew $8.1 million this quarter compared to the prior quarter, helped by higher loan interest and an increase in interest on inflation-protected securities.
"Core fee income continued to show good growth from deposit, trust, and mortgage banking activities. Non-interest expense totaled $177.1 million and reflected a slight decline from the previous quarter."
"Net loan charge-offs for the current quarter totaled $7.5 million, compared to $8.8 million in both the previous quarter and the second quarter of 2015. The decrease in net loan charge-offs compared to the previous quarter was largely due to increased commercial loan recoveries, especially in construction and business real estate loans, offset by slightly higher personal banking loan net losses.
"During the current quarter, the provision for loan losses totaled $9.2 million, or $1.7 million higher than net loan charge-offs, but slightly less than the prior quarter.
"The allowance for loan losses increased to $153.8 million at June 30, 2016, or 1.18% of period end loans. Total non-performing assets decreased $5.2 million from the previous quarter to $26.1 million this quarter."
"Total assets at June 30, 2016 were $24.7 billion, total loans were $13.1 billion, and total deposits were $20.2 billion.
"During the quarter, the company 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." ■