Commerce Bancshares, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, the company achieved a net income of $140.3 million, a 14.4% increase from $122.7 million in the same period of 2023. This growth was driven by a rise in net interest income, which reached $262.4 million, up 5.6% from $248.5 million year-over-year. Interest and fees on loans increased by $13.8 million, attributed to a higher average interest rate and increased loan balances. Non-interest income also saw an 11.2% rise, totaling $159.0 million, compared to $142.9 million in Q3 2023.
For the nine months ended September 30, 2024, net income rose to $397.2 million from $373.7 million in the prior year, reflecting a 6.1% increase. Net interest income for this period was $773.6 million, a slight increase from $749.7 million, while non-interest income grew to $460.1 million from $428.2 million. The provision for credit losses decreased significantly to $26.7 million from $35.2 million, indicating improved credit quality.
Total assets as of September 30, 2024, were reported at $31.5 billion, a decrease from $31.7 billion at the end of 2023. Total loans decreased by $115.5 million, primarily due to declines in business real estate and consumer credit card loans. However, personal real estate loans and consumer loans showed growth, driven by private banking and health services financing.
The company’s total deposits decreased to $25.2 billion, down $126.1 million from December 31, 2023, with a notable decline in demand deposits. Borrowings also decreased significantly to $2.2 billion, down from $2.9 billion at the end of 2023.
In terms of strategic developments, Commerce Bancshares executed a plan to reposition its available-for-sale debt securities portfolio, resulting in a loss of $179.1 million from the sale of securities with an amortized cost of $1.2 billion. The company also maintained a strong liquidity position, with cash flow from operating activities amounting to $714.5 million for the first nine months of 2024.
Overall, the financial results reflect a solid performance amid changing market conditions, with strategic adjustments aimed at enhancing profitability and managing credit risk effectively.
About COMMERCE BANCSHARES INC /MO/
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