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The company's third quarter net income rises by nearly 17%.
SBJ file photo
The company's third quarter net income rises by nearly 17%.

Commerce Bank rebounds in latest quarter

Posted online

Kansas City-based Commerce Bancshares Inc. (Nasdaq: CBSH) bounced back with an increase in profits during the third quarter after previously reporting second quarter results marred by the coronavirus pandemic.

The operator of six Commerce Bank branches in Springfield posted a nearly 17% increase in third quarter net income to roughly $125 million compared with the same period in 2019, according to a news release. In the second quarter this year, the company's profits fell 64.4% to $37.6 million, according to past reporting.

“We are pleased to report a healthy rebound in earnings this quarter," Commerce CEO John Kemper said in the release. "While our bank card fees have not yet fully recovered from the impact of COVID-19, trust and mortgage banking fees were at record levels.

"We remain cautiously optimistic about the recovery of the economy and are encouraged by the resiliency of our customers and communities.”

Third quarter financial highlights:
• Revenue was up nearly 3% to $345.5 million compared with the same quarter of 2019.
• Provision for credit losses dropped 71.7% to $3.1 million from roughly $11 million a year earlier. Comparatively, the provision was $80.5 million in the second quarter this year.
• Salaries and employee benefits rose roughly 3% to $127.3 million from a year earlier.

As of Sept. 30, Commerce's assets were $31.5 billion and deposits were $25.7 billion, according to the release.

CBSH shares were trading at $61.30 as of 8:52 a.m., compared with a 52-week range of $45.51 to $71.92.

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