Commerce Bancshares beats earnings consensus by a cent in Q4

Commerce Bancshares, Inc. (NASDAQ: CBSH) reported fourth-quarter results that surpassed street estimates, thanks to a favorable credit environment. Net income rose to 96 cents per share during the quarter from 82 cents per share a year ago, surpassing analysts’ projection of 95 cents per shares.

Revenue increased 11.6% to $345.3 million as both net interest income and non-interest income witnessed steady year-over-year growth. Analysts had projected revenue of $335.9 million.

Net-interest income during the quarter jumped 11.6% during the quarter. Meanwhile, buoyed by higher bank card, brokerage, swap, and tax credit fees, non-interest income increased 11.7%.

CBSH shares closed 2.26% higher on Wednesday. The stock has gained 7.8% during the trailing 52 weeks.

CEO John Kemper said, “Demand for business and business real estate loans improved this quarter and as a result, we experienced growth in new loans and increased line utilization, while seasonal paydowns on some lines of credit partially offset this growth.”

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Net loan charge-offs at the end of the year totaled $12.1 million, compared to $11.0 million in the same quarter last year.

Net loans slightly improved to $13.9 billion, even as total deposits modestly declined to $20.3 billion.

On Wednesday, rival firm US Bancorp (USB) reported a 10% growth in earnings for the fourth quarter of 2018 helped by higher revenue and a decline in non-interest expense. The results exceeded analysts’ expectations.

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