Commerce Bancshares Reports Decline in Q1 Earnings

Commerce Bancshares, Inc. has reported its first quarter earnings, revealing a decline in earnings per share compared to the same period last year and the previous quarter. The company announced earnings of $0.86 per share for the three months ended March 31, 2024, compared to $0.91 per share in the same quarter last year and $0.84 per share in the fourth quarter of 2023.

Net income for the first quarter of 2024 amounted to $112.7 million, representing a decrease from $119.5 million in the first quarter of 2023 and $109.2 million in the prior quarter.

Key financial highlights for the first quarter of 2024 include:

  • Net interest income was $249.0 million, showing a $578 thousand increase over the prior quarter, with the net yield on interest-earning assets increasing by 16 basis points to 3.33%.

  • Non-interest income totaled $148.8 million, reflecting an increase of $11.2 million compared to the same quarter last year.

  • Trust fees grew by $5.8 million, or 12.7%, compared to the same period last year, mostly due to higher private client fees.

  • Non-interest expense totaled $245.7 million, marking an increase of $21.6 million compared to the same quarter last year.

  • Average loan balances remained flat compared to the prior quarter at $17.1 billion.

  • Total average deposits decreased by $759.5 million, or 3.0%, compared to the prior quarter.

  • The ratio of annualized net loan charge-offs to average loans was .21% compared to .19% in the prior quarter.

  • Total assets at March 31, 2024, were $30.4 billion, reflecting a decrease of $1.3 billion, or 4.2%, compared to the prior quarter.

Furthermore, the return on average assets for the quarter was 1.48%, the return on average equity was 15.39%, and the efficiency ratio was 61.7%.

Additionally, the company reported a decrease in the allowance for credit losses on loans by $1.9 million during the first quarter to $160.5 million, with the ratio of the allowance for credit losses on loans to total loans at .93% at March 31, 2024, compared to .94% at December 31, 2023.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, investment management, and securities brokerage. The company operates full-service banking facilities across the Midwest and maintains commercial and wealth offices in several states.

The press release also provided detailed unaudited financial statements, consolidating income statements, balance sheets, and average balance sheets, offering a comprehensive view of the company's financial position and performance.

For additional information, please refer to the company’s website or contact the investor relations department. Following these announcements, the company's shares moved 2.2%, and are now trading at a price of $52.35. Check out the company's full 8-K submission here.

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