Commerce Bancshares, Inc. | $CBSH Stock | Shares Race Ahead After Strong Q2 Revenue and Profit  

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Commerce Bancshares, Inc. (NASDAQ: CBSH) 


Commerce Bancshares saw its shares jump $2.05, or 3.09% to $68.44 in morning trading Thursday. The surge came after the Kansas City-based firm revealed its second-quarter financial results.

Net income during the quarter ended June 30, 2018 was above that reported in the same period last year.

CBSH Earnings & Outlook

The company had a net income of $108.08 million, or $1.01 per share, compared with $76.71 million, or $0.71 per share, in the year-ago period. Analysts surveyed by Thompson Reuters expected the company to report earnings of $0.90 per share.

Total revenue came in at $335.81 million, up 12.6% from $298.19 last year’s second quarter. The revenue was also ahead of analyst consensus estimate of $321.9 million.

While announcing the results, CEO David Kemper said he believes the US economy and the credit environment of the company, will continue “to be very favorable.”

Commerce Bancshares CEO Comments

David Kemper commented, “We are pleased to report strong earnings growth this quarter as a result of an increase in top line revenue, along with stable expenses and low credit costs. Compared to the prior quarter, net interest income grew $18.1 million but included an equity dividend of $8.9 million this quarter, offset by a comparable securities loss. Excluding this item, our net interest margin grew 13 basis points this quarter to 3.50%, reflecting increased interest earned on our loan portfolio coupled with stable deposit costs.”

Kemper continued, “Compared to the same period last year, fee income grew 8.2%, driven mainly by increases in bank card, trust, swap and deposit fee income. While total average loan balances were flat with the prior quarter, we experienced growth in our commercial and industrial, construction, and mortgage loan portfolios. Our consumer auto loan portfolio declined mostly as a result of a sale of $25.9 million of auto loans to another financial institution this quarter.”

Commerce Bancshares, Inc. Company Profile

Commerce Bancshares, Inc. is a bank holding company for Commerce Bank. It offers general banking services, including mortgage banking, retail, investment, investment, asset management, trust, and corporate to businesses and individuals. Its segments of operation are: Consumer, Commercial, and Wealth.

The Consumer segment provides banking services and products, such as consumer loans; real estate loans; consumer deposits, patient health care financing; personal mortgage banking; indirect and other consumer financing; consumer credit and debit bank cards; and installment lending.

This segment also provides telephone, online, and mobile banking services.

The Commercial segment provides business products; corporate lending; commercial and merchant bank cards; commercial cash management services; and government deposits.

It also offers bond accounting and investment safekeeping services, as well as fixed-income securities corporations, individuals, municipalities, correspondent banks, and public institutions.

The Wealth segment offers traditional estate and trust planning services, discretionary and advisory investment management services, and brokerage services.

The company also provides insurance agency services, private equity investment, and securities brokerage.

Commerce Bancshares operates through commercial offices and a network of 327 locations in Oklahoma, Missouri, Colorado, Kansas, and Illinois.

The company is headquartered in Kansas City, Missouri. –Reuters