The holding company of Commerce Bank said Thursday a decline in net interest income drove its earnings lower in the first quarter.
Commerce Bancshares said its net income was $61 million in the three-month quarter ending March 31, compared with $65.8 million the same period a year ago.
“Low interest rates, affecting both loans and investments, coupled with a decline in interest on our inflation-protected government securities of $4.8 million, resulted in a decline in net interest income,” David Kemper, Commerce Bancshares chairman and CEO, said in a news release.
The decline, Kemper said, was partially offset by a decline in credit costs and non-interest expense. He said the company saw strong revenue growth in its corporate card, merchant and trust fee businesses, compared with the first quarter of 2012.