Commerce Bancshares, Inc. Reports Second Quarter Growth in Earnings Per Share of 14%

View the second quarter 2017 earnings release.

Kansas City, MO, July 13, 2017 - Commerce Bancshares, Inc. announced record earnings of $.75 per common share for the three months ended June 30, 2017 compared to $.66 per share in the same quarter last year and $.68 per share in the prior quarter. Net income attributable to Commerce Bancshares, Inc. for the second quarter of 2017 amounted to $79.0 million, compared to $69.9 million in the second quarter of 2016 and $71.5 million in the prior quarter. For the quarter, the return on average assets was 1.26%, the return on average common equity was 12.5% and the efficiency ratio was 60.2%.

For the six months ended June 30, 2017, earnings per common share totaled $1.43 compared to $1.28 for the first six months of 2016. Net income attributable to Commerce Bancshares, Inc. amounted to $150.5 million for the six months ended June 30, 2017 compared to $135.3 million last year, or an increase of 11.2%. For the current year to date, the return on average assets was 1.21% and the return on average common equity was 12.1%.

In making this announcement, David W. Kemper, Chairman and CEO, said, "We continued to see strong performance this quarter as top line revenue grew $10.6 million compared to the previous quarter while expenses declined and credit costs remained low. Our net interest margin grew to 3.19% this quarter reflecting increasing interest earned on our loan portfolio coupled with stable funding costs. Fee income also increased $6.0 million this quarter compared to the prior quarter as bank card, trust and deposit fees all showed meaningful increases. While total average loan balances were flat with the prior quarter, we expect to see commercial loan demand and seasonal consumer lending opportunities for the remainder of the year."

Mr. Kemper added, "For the current quarter, net loan charge-offs totaled $10.8 million, compared to $9.2 million in the prior quarter and $7.5 million in the same quarter last year. The growth in net loan charge-offs was mainly the result of higher personal banking loan losses and a reduction in commercial loan recoveries this quarter. The ratio of annualized net loan charge-offs to average loans was .32% this quarter compared to .28% last quarter. Non-performing assets declined this quarter to $13.9 million. Overall, the credit environment remains favorable. During the current quarter, the provision for loan losses matched net loan charge-offs and the allowance for loan losses amounted to $157.8 million, or 1.16% of period end loans."

Total assets at June 30, 2017 were $25.1 billion, total loans were $13.6 billion, and total deposits were $20.8 billion. During the quarter, the Company paid a common cash dividend of $.225 per share, representing a 5% increase over the rate paid in 2016, and also paid an annualized 6% cash dividend on its preferred stock.

Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The Company currently operates in approximately 330 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado.

This financial news release, including management's discussion of second quarter results, is posted to the Company's web site at www.commercebank.com.

For additional information contact: mymoney@commercebank.com