Commerce Bancshares, Inc. reported a net income of $526.3 million for the fiscal year ending December 31, 2024, reflecting a 10.3% increase from $477.1 million in 2023. The diluted earnings per share rose to $3.87, up from $3.46 in the previous year. Total revenue for 2024 reached $1.7 billion, a 5.4% increase compared to $1.6 billion in 2023, driven by a $42.1 million rise in net interest income and a $42.5 million increase in non-interest income. The return on average assets improved to 1.72% from 1.49%, while the return on average common equity decreased to 16.66% from 17.94%.
The company experienced a modest increase in total loans, which rose to $17.2 billion, up $14.6 million from the previous year. This growth was primarily attributed to increases in revolving home equity loans and business loans, partially offset by declines in business real estate and construction loans. The allowance for credit losses on loans stood at $162.7 million, slightly up from $162.4 million in 2023, representing 0.95% of total loans. Net loan charge-offs increased to $38.9 million, compared to $31.1 million in 2023, with higher charge-offs noted in consumer credit card and consumer loan categories.
In terms of operational developments, Commerce Bancshares expanded its geographic footprint, serving customers from 243 locations across Missouri, Kansas, Illinois, Oklahoma, and Colorado. The company also maintained a focus on enhancing customer relationships and satisfaction through improved technology and service offerings. The total number of full-time equivalent employees decreased slightly to 4,693 from 4,718 in the previous year, reflecting ongoing efficiency measures.
Looking ahead, the company anticipates continued growth in core revenue, supported by strategic initiatives aimed at expanding customer relationships and market presence. However, management acknowledged potential risks related to economic conditions, regulatory changes, and competition in the financial services sector. The company remains committed to maintaining strong capital ratios, with a Tier I common risk-based capital ratio of 16.71% as of December 31, 2024, well above the regulatory minimum requirements.
About COMMERCE BANCSHARES INC /MO/
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