Commerce Bancshares (CBSH) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $142 million, up $10 million year-over-year, with EPS of $0.96 compared to $0.93 last year; diluted EPS rose 3.2% year-over-year but fell 5.0% sequentially.

• The FineMark acquisition contributed to higher non-interest income, expenses, and significant balance sheet growth, adding $3.9 billion in assets, $2.7 billion in loans, and $3.1 billion in deposits.

• Return on average assets was 1.62% and return on average equity was 13.22%.

• Efficiency ratio stood at 60.0%.

• Repurchased over $84 million of common stock and increased quarterly dividend by 5%.

Financial highlights

• Net interest income rose 11.4% year-over-year to $300 million, driven by higher loan balances from the FineMark acquisition.

• Non-interest income increased 10.6% to $175.9 million, mainly from higher trust and deposit account fees.

• Non-interest expense rose 22% year-over-year to $291.1 million, including $14 million in acquisition-related costs.

• Net securities gains were $11.6 million, compared to a $7.6 million loss in Q1 2025.

• Allowance for credit losses on loans was $198.6 million, or 0.97% of total loans.

Outlook and guidance

• Approximately $1.2 billion in investment maturities and paydowns expected over the next 12 months.

• Management expects a significant gain in Q2 2026 if the Visa Class B-2 share exchange is accepted, but may also realize a significant loss if a portion of the available for sale debt securities portfolio is repositioned.

• The economic forecast assumes slow but continued expansion, with slightly increased unemployment and elevated inflation.

• Hedging structures in place to mitigate risk of declining interest rates on floating rate commercial loans.

• Management expects to navigate economic uncertainty with discipline, focusing on long-term growth.