Commerce Bancshares (NASDAQ: CBSH) reported Q2 EPS of $1.01, $0.12 better than the analyst estimate of $0.89. Revenue for the quarter came in at $335.81 million versus the consensus estimate of $321.9 million.

• Record earnings of $1.01 per common share for the three months ended June 30, 2018 compared to $.71 per share in the same quarter last year and $.92 per share in the prior quarter.
• Net income attributable to Commerce Bancshares, Inc. for the second quarter amounted to $110.3 million, compared to $79.0 million in the second quarter of 2017 and $101.0 million in the prior quarter.
• For the quarter, the return on average assets was 1.80%, the return on average common equity was 16.8%, and the efficiency ratio was 54.1%.

In making this announcement, David W. Kemper, Chairman and CEO, said, “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. 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.”

Mr. Kemper added, “The U.S. economy remains strong, and our credit environment continues to be very favorable. For the current quarter, net loan charge-offs totaled $10.0 million, compared to $10.4 million in the prior quarter and $10.8 million in the same quarter last year. The decline in net loan charge-offs was mainly the result of lower personal banking loan losses this quarter. The ratio of annualized net loan charge-offs to average loans was .29% this quarter compared to .30% last quarter. Non-performing assets declined this quarter to $10.5 million, while the provision for loan losses matched net loan charge-offs and the allowance for loan losses amounted to $159.5 million, or 1.14% of period end loans.”

For earnings history and earnings-related data on Commerce Bancshares (CBSH) click here.