Commerce earnings dip on lower interest income

01/14/2014 9:41 PM

01/14/2014 9:41 PM

Earnings at Commerce Bancshares Inc. dipped 1.3 percent in the final three months of 2013, the Kansas City-based banking company said Tuesday.

Commerce earned $65.9 million, or 69 cents a share, compared with $66.8 million, also 69 cents a share, in the same quarter a year ago. For all of 2013, profits fell 3.1 percent.

Shares in Commerce closed at $44.51, down 55 cents, or 1.2 percent.

Profits fell in the quarter despite an 11 percent increase in loans, which represents a $1.1 billion.

“Loan growth has been strong all year and loan demand remained solid this quarter from both our commercial and retail customers,” chief executive David Kemper said in the announcement.

Commerce reported a decline in its net interest income, which is the difference between what it earns on loans and securities and what it pays on deposits and other funding sources. Fees from credit cards, trust services and other sources rose during the quarter.

Assets at the end of December totaled $23.07 billion, including $10.96 billion in loans and $9.04 billion in securities. Profits in the quarter equaled a 1.18 percent return on assets.

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