NEW YORK (TheStreet) -- Commerce Bancshares(CBSH) - Get Report shares are down 0.66% to $46.77 in early market trading on Tuesday following the release of the bank holding company's second quarter financial results.

The company reported first quarter net income of $74.4 million, or 75 cents per share while its return on average assets was 1.26%. The company also reported a second quarter efficiency ratio of $59.4%.

Analysts on average were expecting the company to earn 67 cents per share during the period.

CEO David Kemper said that average loans grew by 7%, or $210.3 million over the previous quarter and net interest income grew by $17.5 million. 

Total non-performing assets decreased $10 million from the previous quarter to $30.8 million this quarter. The allowance for loan losses amounted to $151.5 million at June 30, 2015, or 1.27 percent of period- end loans, and was 5.7 times non-performing loans," Kemper said.

TheStreet Ratings team rates COMMERCE BANCSHARES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate COMMERCE BANCSHARES INC (CBSH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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