Commerce Bancshares (CBSH) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $160 million, up $18 million from Q1 and 5% year-over-year; diluted EPS was $1.10, up from $0.96 in Q1 and $1.09 in Q2 2025.

• Return on average assets was 1.84% and return on average equity was 14.70%.

• Revenue growth was broad-based, with net interest income and fee revenue both increasing.

• The acquisition of FineMark Holdings, Inc. added $4.0 billion in assets, $2.6–2.7 billion in loans, and $3.1 billion in deposits, expanding presence in Florida, Arizona, and South Carolina.

• Efficiency ratio improved to 58.4%.

Financial highlights

• Net interest income rose to $315.1 million, up 5% sequentially and 12.5% year-over-year; net interest margin increased to 3.77%.

• Non-interest income grew 5% over Q1 and 11% year-over-year to $183.8 million, led by trust fees (+28.7%) and deposit account fees (+11.5%), representing 36.8–37% of total revenue.

• Non-interest expense increased to $297.1 million, up 2% from Q1 and 21.5% year-over-year, mainly due to higher salaries, acquisition-related costs, and litigation expense.

• Net securities gains were $12.8 million, including a $105.4 million gain on Visa stock and a $97.7–98 million loss from repositioning debt securities.

• Book value per share increased 3% sequentially and 17% year-over-year to $30.45.

Outlook and guidance

• Management expects approximately $1.1 billion in investment cash flows from maturities and paydowns over the next twelve months.

• Portfolio floor contracts and securities purchased under agreements to resell provide protection against declining rates.

• Management expects continued integration of FineMark and realization of synergies, with stable credit quality and strong capital ratios.

• Interest rate risk simulations show modest sensitivity to rate changes, with a 100 bp rise in rates projected to increase net interest income by 0.43%.

• Forward-looking statements caution that actual results may differ due to significant risks and uncertainties.