Commerce profit surges despite less lending in first quarter
Commerce Bancshares saw profits per-share jump 39 percent in the first quarter, despite a 10 percent drop in lending compared to a year ago.
Commerce, the region’s biggest locally based bank, earned $44.2 million, or 53 cents per share, in the quarter ended March 31 compared to $30.8 million, or 38 cents per share a year earlier.
Commerce blamed the big drop in lending on weak demand from borrowers. Loans fell in all categories except consumer credit cards easy pay day loans.
David Kemper, CEO, credited the rise in profits in part to a decline in money put aside to cover bad loans. The amount of problem loans and foreclosed property fell, as did loan charge-offs. Problem loans and foreclosed property made up 0.61 percent of assets, a low figure compared to most banks.