Commerce Bancshares beats Q3 earnings, misses on revenue

Commerce Bancshares, Inc. (CBSH) posted stronger-than-expected third quarter earnings on Tuesday, surpassing analysts' estimates while revenue trailed the consensus projection. With $1.08 per share in earnings, the company outpaced the anticipated $1.07 per share, and revenue came in at $494.3 million, slightly below the forecasted $498.4 million.

After-hours trading saw shares rise by 0.09%. For the quarter, net income climbed to $155.0 million, a 9.5% increase from $141.5 million in the same period last year. However, revenue dropped 10.5% year-over-year, falling from $440.97 million in Q3 2025 to $494.3 million. Net interest income saw a decrease of $6.2 million to $308.9 million, while non-interest income rose $1.6 million to $185.5 million, constituting 37.5% of total revenue.

Net yield on interest earning assets dipped six basis points to 3.71%. CEO John Kemper praised the quarter, noting solid profitability, broad-based loan growth, ongoing fee business momentum, and exceptional credit quality. Loan balances expanded at an annualized rate of over 7%, fueled by robust performance in commercial and wealth segments.

The average loan balance rose to $20.7 billion, marking a $172.3 million increase from the previous quarter. Trust fees surged $15.0 million, or 25.7%, compared to the same quarter last year, while bank card fees grew $3.6 million, or 8.0%. The ratio of annualized net loan charge-offs to average loans stood at 0.20% for the quarter, slightly higher than the 0.19% figure in the prior quarter.

During the quarter, the company repurchased around 1.9 million shares at an average price of $58.84.