Commerce Bancshares (CBSH) has reported a 12.35 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $71.58 million, or $0.68 a share in the quarter, compared with $63.71 million, or $0.60 a share for the same period last year. Revenue during the quarter grew 6.75 percent to $285.93 million from $267.86 million in the previous year period. Net interest income for the quarter rose 6.59 percent over the prior year period to $173.20 million. Non-interest income for the quarter rose 7.48 percent over the last year period to $123.13 million.
Commerce Bancshares has made provision of $10.40 million for loan losses during the quarter, up 13.22 percent from $9.19 million in the same period last year.
Efficiency ratio for the quarter improved to 61.82 percent from 62.97 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
In announcing these results, David W. Kemper, chairman and chief executive officer, said, "Overall, Commerce saw strong performance in 2016, with loan growth of 8% and growth in earnings per share of 7%. Loan growth was solid this quarter, as average loans grew $231 million, or 7% annualized. This increase resulted from higher business real estate loan demand, coupled with good growth in residential mortgage and other consumer loans. Average deposits grew $388 million this quarter, or 8% annualized, reflecting expected seasonal growth. Net interest income increased 7% over the fourth quarter of 2015, reflecting growth in loan and investment securities interest income and stable funding costs, and we remain well positioned for improved margins, should interest rates rise in 2017. Non-interest income this quarter grew 3% compared to the same period last year on continued growth in trust, sweep, deposit and swap fees. Non-interest expense was flat with the prior quarter but was up 3% over the same period last year."
Deposits stood at $21,101.10 million as on Dec. 31, 2016, up 5.62 percent compared with $19,978.85 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $7,429.40 million or 35.21 percent of total deposits on Dec. 31, 2016, compared with $7,146.40 million or 35.77 percent of total deposits on Dec. 31, 2015.
Investments stood at $9,770.99 million as on Dec. 31, 2016, down 1.32 percent or $130.69 million from year-ago. Shareholders equity was at $2,501.13 million as on Dec. 31, 2016.
Return on average assets moved up 9 basis points to 1.14 percent in the quarter from 1.05 percent in the last year period. At the same time, return on average equity increased 60 basis points to 11.48 percent in the quarter from 10.88 percent in the last year period.
Credit quality improves
Commerce Bancshares recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 50.16 percent or $14.74 million to $14.65 million on Dec. 31, 2016 from $29.39 million on Dec. 31, 2015. Nonperforming assets to total loans was 0.11 percent in the quarter, down from 0.24 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.06 percent in the quarter, down from 0.12 percent in the last year period. Tier-1 leverage ratio stood at 9.55 percent for the quarter, up from 9.23 percent for the previous year quarter. Book value per share was $23.22 for the quarter, up 6.66 percent or $1.45 compared to $21.77 for the same period last year.
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