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Commerce Bancshares , Inc. 1000 Walnut Street / Suite 700 / Kansas City , Missouri 64106 / 816.234.2000 Financial News Release FOR IMMEDIATE RELEASE : Thursday , July 22 , 2021 CBSH COMMERCE BANCSHARES , INC . REPORTS SECOND QUARTER EARNINGS PER SHARE OF $ 1.38 Commerce Bancshares , Inc. announced earnings of $ 1.38 per share for the three months ended June 30 , 2021 , compared to $ .32 per common share in the same quarter last year and $ 1.11 per share in the first quarter of 2021. Net income attributable to Commerce Bancshares , Inc. ( net income ) for the second quarter of 2021 amounted to $ 162.3 million , compared to $ 39.9 million in the second quarter of 2020 and $ 131.0 million in the prior quarter . For the quarter , the return on average assets was 1.93 % , the return on average equity was 19.12 % and the efficiency ratio was 56.9 % . For the six months ended June 30 , 2021 , earnings per common share totaled $ 2.49 compared to $ .74 for the first six months of 2020. Net income attributable to Commerce Bancshares , Inc. amounted to $ 293.3 million for the six months ended June 30 , 2021 , compared to $ 91.7 million in the comparable period last year . For the year to date , the return on average assets was 1.78 % , and the return on average common equity was 17.42 % . In making this announcement , John Kemper , Chief Executive Officer , said , “ After more than a year of ups and downs brought on by the pandemic , the economy appears to be on increasingly firm footing . A strengthening economy further bolstered our credit metrics and led to a reduction in reserves for credit losses on loans and unfunded lending commitments , which resulted in substantially higher earnings this quarter . In addition , our portfolio of private equity investments continued to drive sizeable investment gains for the second consecutive quarter . Fee income was solid this quarter , including bank card fees , as corporate card income rebounded nicely and debit and credit card income exceeded their pre - pandemic levels . Trust fees continued to grow strongly this quarter , with trust assets under management now exceeding $ 40 billion . Non - interest expense increased compared to the same quarter last year , as salaries and benefits expense grew , deferred loan origination costs declined considerably , and marketing expense increased to support our strategic initiatives and to grow our customer base . Compared to the previous quarter , average deposits grew $ 1.2 billion , or 4.6 % , while average loan balances declined $ 342.5 million , or 2.1 % ( average PPP loan balances declined $ 109.8 million ) . The pace of PPP loan forgiveness accelerated significantly in June 2021 and resulted in a reduction of $ 572.6 million in period end balances . Over two - thirds of our round one PPP loans have been forgiven as of June 30 , 2021. " Mr. Kemper continued , “ Credit performance was very strong in the second quarter . This quarter , net loan charge - offs totaled $ 699 thousand , compared to $ 10.0 million in the prior quarter and $ 8.4 million in the second quarter of 2020. The ratio of annualized net loan charge - offs to average loans was .02 % in the current quarter , .25 % in the prior quarter and .21 % in the second quarter of last year . Net loan recoveries on commercial loans of $ 5.0 million were recorded this quarter , and net charge - offs on personal banking loans were significantly lower compared to the