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CBSH Q1 Earnings Beat as Revenues Rise Y/Y, Stock Dips on Higher Costs
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Key Takeaways
CBSH Q1 EPS of 96 cents beat estimates, driven by higher NII, fee income and lower provisions.
Commerce Bancshares saw revenues rise 11% y/y with growth in loans, deposits and non-interest income.
CBSH shares fell as expenses rose 22% and the efficiency ratio worsened, signaling pressure on profitability.
Commerce Bancshares Inc.’s (CBSH - Free Report) first-quarter 2026 earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 94 cents. The bottom line reflected a rise of 3.2% from the prior-year quarter.
Results benefited from higher net interest income (NII), a rise in non-interest income and lower provisions. The sequential rise in loans and deposits acted as a tailwind. However, higher expenses hurt the results to some extent. Probably because of this, CBSH shares fell 1.6% following the earnings release.
Net income attributable to Commerce Bancshares was $141.6 million, up 7.6% year over year. Our estimate for the metric was $132 million.
CBSH’s Revenues Improve, Expenses Rise
Total revenues were $475.7 million, up 11.1% year over year. The top line outpaced the Zacks Consensus Estimate of $473.6 million.
NII was $299.8 million, rising 11.4% from the year-ago quarter. Net yield on interest-earning assets was 3.59%, increasing 3 basis points (bps) year over year. Our estimates for NII and net yield on interest-earning assets were $288 million and 3.60%, respectively.
Non-interest income was $175.9 million, up 10.6% year over year. The rise was mainly driven by higher trust fees, deposit account charges and other fees, consumer brokerage services fees, and capital market fees. Our estimate for non-interest income was $175.2 million.
Non-interest expenses increased 22.1% year over year to $291.1 million. The rise was due to improvements in all cost components. We had projected expenses of $272.8 million.
Investment securities gains were $11.6 million against losses of $7.6 million in the prior-year quarter.
The efficiency ratio increased to 60% from 55.61% in the year-ago quarter. A rise in the efficiency ratio indicates a deterioration in profitability.
CBSH’s Loans & Deposits Rise
As of March 31, 2026, net loans were $20.26 billion, up from $17.59 billion as of Dec. 31, 2025. Total deposits were $28.38 billion, up from $25.64 billion at the end of the previous quarter. Our estimates for net loans and total deposits were $20.38 billion and $29.22 billion, respectively.
Commerce Bancshares’ Asset Quality: A Mixed Bag
Provision for credit losses was $11 million, down 24.3% from the prior-year quarter. Our estimate for the metric was $20.6 million. Non-accrual loans to total loans were 0.05% at the quarter-end, down from 0.13% in the year-ago quarter.
However, the allowance for credit losses on loans to total loans was 0.97% on March 31, 2026, increasing 1 bp year over year. The ratio of annualized net loan charge-offs to average loans was 0.30%, up from 0.25% in the prior-year quarter.
CBSH’s Capital Ratios Improve, Profitability Ratios Decline
As of March 31, 2026, the Tier I leverage ratio was 12.60%, up from 12.29% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 11.07% from 10.33% in the prior-year quarter.
In the reported quarter, return on total average assets was 1.62%, down from 1.69% in the year-ago quarter. Return on average equity was 13.22% compared with 15.82% in the prior-year quarter.
CBSH’s Share Repurchase Update
In the reported quarter, the company purchased 1.6 million shares of treasury stock at an average price of $51.57.
Our Take on Commerce Bancshares
On Jan. 1, the company closed the deal to acquire FineMark Holdings, which will be accretive to its earnings and lead to cost savings. CBSH’s revenues are expected to be driven by decent loan demand, balance sheet repositioning strategy and efforts to bolster fee income. However, rising expenses and deteriorating asset quality remain near-term headwinds.
Commerce Bancshares, Inc. Price, Consensus and EPS Surprise
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
MTB’s results were aided by higher NII and a rise in non-interest income, along with modest loan growth. However, a decline in deposits, higher provision for credit losses and elevated expenses acted as headwinds.
KeyCorp’s (KEY - Free Report) first-quarter 2026 earnings from continuing operations of 44 cents per share outpaced the Zacks Consensus Estimate of 41 cents. The bottom line reflected a 33.3% rise from the prior-year quarter.
KEY’s results primarily benefited from higher NII and non-interest income. Higher average loan balances, along with lower provisions, were other tailwinds. However, higher expenses hurt KEY’s results to some extent.
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CBSH Q1 Earnings Beat as Revenues Rise Y/Y, Stock Dips on Higher Costs
Key Takeaways
Commerce Bancshares Inc.’s (CBSH - Free Report) first-quarter 2026 earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 94 cents. The bottom line reflected a rise of 3.2% from the prior-year quarter.
Results benefited from higher net interest income (NII), a rise in non-interest income and lower provisions. The sequential rise in loans and deposits acted as a tailwind. However, higher expenses hurt the results to some extent. Probably because of this, CBSH shares fell 1.6% following the earnings release.
Net income attributable to Commerce Bancshares was $141.6 million, up 7.6% year over year. Our estimate for the metric was $132 million.
CBSH’s Revenues Improve, Expenses Rise
Total revenues were $475.7 million, up 11.1% year over year. The top line outpaced the Zacks Consensus Estimate of $473.6 million.
NII was $299.8 million, rising 11.4% from the year-ago quarter. Net yield on interest-earning assets was 3.59%, increasing 3 basis points (bps) year over year. Our estimates for NII and net yield on interest-earning assets were $288 million and 3.60%, respectively.
Non-interest income was $175.9 million, up 10.6% year over year. The rise was mainly driven by higher trust fees, deposit account charges and other fees, consumer brokerage services fees, and capital market fees. Our estimate for non-interest income was $175.2 million.
Non-interest expenses increased 22.1% year over year to $291.1 million. The rise was due to improvements in all cost components. We had projected expenses of $272.8 million.
Investment securities gains were $11.6 million against losses of $7.6 million in the prior-year quarter.
The efficiency ratio increased to 60% from 55.61% in the year-ago quarter. A rise in the efficiency ratio indicates a deterioration in profitability.
CBSH’s Loans & Deposits Rise
As of March 31, 2026, net loans were $20.26 billion, up from $17.59 billion as of Dec. 31, 2025. Total deposits were $28.38 billion, up from $25.64 billion at the end of the previous quarter. Our estimates for net loans and total deposits were $20.38 billion and $29.22 billion, respectively.
Commerce Bancshares’ Asset Quality: A Mixed Bag
Provision for credit losses was $11 million, down 24.3% from the prior-year quarter. Our estimate for the metric was $20.6 million. Non-accrual loans to total loans were 0.05% at the quarter-end, down from 0.13% in the year-ago quarter.
However, the allowance for credit losses on loans to total loans was 0.97% on March 31, 2026, increasing 1 bp year over year. The ratio of annualized net loan charge-offs to average loans was 0.30%, up from 0.25% in the prior-year quarter.
CBSH’s Capital Ratios Improve, Profitability Ratios Decline
As of March 31, 2026, the Tier I leverage ratio was 12.60%, up from 12.29% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 11.07% from 10.33% in the prior-year quarter.
In the reported quarter, return on total average assets was 1.62%, down from 1.69% in the year-ago quarter. Return on average equity was 13.22% compared with 15.82% in the prior-year quarter.
CBSH’s Share Repurchase Update
In the reported quarter, the company purchased 1.6 million shares of treasury stock at an average price of $51.57.
Our Take on Commerce Bancshares
On Jan. 1, the company closed the deal to acquire FineMark Holdings, which will be accretive to its earnings and lead to cost savings. CBSH’s revenues are expected to be driven by decent loan demand, balance sheet repositioning strategy and efforts to bolster fee income. However, rising expenses and deteriorating asset quality remain near-term headwinds.
Commerce Bancshares, Inc. Price, Consensus and EPS Surprise
Commerce Bancshares, Inc. price-consensus-eps-surprise-chart | Commerce Bancshares, Inc. Quote
Currently, Commerce Bancshares carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
MTB’s results were aided by higher NII and a rise in non-interest income, along with modest loan growth. However, a decline in deposits, higher provision for credit losses and elevated expenses acted as headwinds.
KeyCorp’s (KEY - Free Report) first-quarter 2026 earnings from continuing operations of 44 cents per share outpaced the Zacks Consensus Estimate of 41 cents. The bottom line reflected a 33.3% rise from the prior-year quarter.
KEY’s results primarily benefited from higher NII and non-interest income. Higher average loan balances, along with lower provisions, were other tailwinds. However, higher expenses hurt KEY’s results to some extent.