Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 22nd, 2026

Fifth Third Bancorp increased its holdings in shares of Commerce Bancshares, Inc. (NASDAQ:CBSH – Free Report) by 3,862.7% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 47,869 shares of the financial services provider’s stock after buying an additional 46,661 shares during the quarter. Fifth Third Bancorp’s holdings in Commerce Bancshares were worth $2,355,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in CBSH. Vanguard Group Inc. boosted its position in shares of Commerce Bancshares by 8.1% during the 4th quarter. Vanguard Group Inc. now owns 14,690,039 shares of the financial services provider’s stock valued at $768,877,000 after acquiring an additional 1,098,142 shares during the last quarter. Verition Fund Management LLC increased its position in Commerce Bancshares by 39.8% during the fourth quarter. Verition Fund Management LLC now owns 631,981 shares of the financial services provider’s stock worth $33,078,000 after purchasing an additional 179,894 shares during the last quarter. Geode Capital Management LLC increased its position in Commerce Bancshares by 6.7% during the fourth quarter. Geode Capital Management LLC now owns 2,780,678 shares of the financial services provider’s stock worth $147,097,000 after purchasing an additional 174,863 shares during the last quarter. Mattern Capital Management LLC raised its stake in Commerce Bancshares by 14.4% during the fourth quarter. Mattern Capital Management LLC now owns 161,306 shares of the financial services provider’s stock worth $8,443,000 after purchasing an additional 20,277 shares during the period. Finally, Mosaic Family Wealth Partners LLC purchased a new position in Commerce Bancshares during the first quarter worth about $3,390,000. 70.26% of the stock is currently owned by hedge funds and other institutional investors.

Commerce Bancshares Trading Down 0.7% NASDAQ CBSH opened at $58.37 on Wednesday. Commerce Bancshares, Inc. has a 52 week low of $46.99 and a 52 week high of $61.68. The firm has a 50 day moving average of $55.13 and a two-hundred day moving average of $52.90. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $8.51 billion, a PE ratio of 14.13, a price-to-earnings-growth ratio of 2.11 and a beta of 0.58.

Commerce Bancshares (NASDAQ:CBSH – Get Free Report) last posted its earnings results on Thursday, July 16th. The financial services provider reported $1.10 EPS for the quarter, beating the consensus estimate of $1.04 by $0.06. The firm had revenue of $498.91 million for the quarter, compared to analyst estimates of $492.22 million. Commerce Bancshares had a return on equity of 14.31% and a net margin of 26.07%.During the same quarter in the prior year, the company posted $1.14 earnings per share. As a group, research analysts expect that Commerce Bancshares, Inc. will post 4.22 EPS for the current fiscal year.

Commerce Bancshares Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Friday, June 5th were issued a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, June 5th. Commerce Bancshares’s payout ratio is presently 26.63%.

Analyst Ratings Changes A number of research analysts recently commented on the company. Wall Street Zen cut Commerce Bancshares from a “hold” rating to a “sell” rating in a report on Monday. Stephens set a $64.00 target price on Commerce Bancshares and gave the stock an “equal weight” rating in a research note on Friday. TD Cowen restated a “hold” rating and issued a $63.00 target price (up from $62.00) on shares of Commerce Bancshares in a research report on Friday. Piper Sandler reaffirmed a “neutral” rating and issued a $66.00 price target (up from $59.00) on shares of Commerce Bancshares in a research note on Friday. Finally, Keefe, Bruyette & Woods increased their price target on Commerce Bancshares from $60.00 to $62.00 and gave the stock a “market perform” rating in a report on Monday. Two analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $62.43.

Get Our Latest Report on Commerce Bancshares

About Commerce Bancshares (Free Report)

Commerce Bancshares, Inc is a bank holding company primarily engaged in providing a broad range of banking and financial services across the Midwest. Through its principal subsidiary, Commerce Bank, the company offers commercial and consumer banking, treasury management, trust and wealth advisory, and mortgage lending. Its diversified product suite includes deposit and loan products, cash management solutions, capital markets services, and private banking designed to meet the needs of individuals, small businesses, and large corporations.

The company’s commercial banking group delivers tailored credit facilities, equipment and inventory financing, asset-based lending, and merchant services.

Featured Stories Five stocks we like better than Commerce Bancshares Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding CBSH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Commerce Bancshares, Inc. (NASDAQ:CBSH – Free Report).

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Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

CBSH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Finance stock. CBSH has a Momentum Style Score of A, and shares are up 6.7% over the past four weeks.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.10 to $4.22 per share. CBSH also boasts an average earnings surprise of +1.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CBSH should be on investors' short list.

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Commerce Bancshares (CBSH - Free Report) came out with quarterly earnings of $1.1 per share, beating the Zacks Consensus Estimate of $1.04 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.77%. A quarter ago, it was expected that this bank holding company would post earnings of $0.94 per share when it actually produced earnings of $0.96, delivering a surprise of +2.13%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Commerce, which belongs to the Zacks Banks - Midwest industry, posted revenues of $498.91 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.24%. This compares to year-ago revenues of $445.76 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Commerce shares have added about 11.1% since the beginning of the year versus the S&P 500's gain of 10.6%.

What's Next for Commerce?While Commerce has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Commerce was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.06 on $492.59 million in revenues for the coming quarter and $4.15 on $1.96 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, First Western (MYFW - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23.

This company is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +115.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

First Western's revenues are expected to be $28.4 million, up 17.4% from the year-ago quarter.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

CBSH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.11; value investors should take notice.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $4.15 per share. CBSH boasts an average earnings surprise of +3.3%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, CBSH should be on investors' short list.

In its upcoming report, Commerce Bancshares (CBSH - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.04 per share, reflecting a decline of 8.8% compared to the same period last year. Revenues are forecasted to be $488.01 million, representing a year-over-year increase of 9.5%.

The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Commerce metrics that are commonly monitored and projected by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Efficiency Ratio' of 57.6%. Compared to the current estimate, the company reported 54.8% in the same quarter of the previous year.

Analysts' assessment points toward 'Net Interest Margin (Net yield on interest earning assets)' reaching 3.7%. The estimate compares to the year-ago value of 3.7%.

The average prediction of analysts places 'Tier I risk-based capital ratio' at 17.3%. Compared to the current estimate, the company reported 17.2% in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Average total interest earning assets' will likely reach $34.02 billion. The estimate compares to the year-ago value of $30.63 billion.

Based on the collective assessment of analysts, 'Total risk-based capital ratio' should arrive at 18.1%. Compared to the present estimate, the company reported 17.9% in the same quarter last year.

Analysts expect 'Book value per common share' to come in at $30.89 . Compared to the present estimate, the company reported $27.43 in the same quarter last year.

The consensus estimate for 'Fully-taxable equivalent net interest income' stands at $311.81 million. The estimate compares to the year-ago value of $282.43 million.

According to the collective judgment of analysts, 'Total Non-Interest Income' should come in at $178.28 million. Compared to the current estimate, the company reported $165.61 million in the same quarter of the previous year.

It is projected by analysts that the 'Deposit account charges and other fees' will reach $28.58 million. The estimate compares to the year-ago value of $26.25 million.

Analysts forecast 'Net Interest Income' to reach $309.28 million. The estimate compares to the year-ago value of $280.15 million.

The consensus among analysts is that 'Trust fees' will reach $71.88 million. Compared to the current estimate, the company reported $55.57 million in the same quarter of the previous year.

Analysts predict that the 'Bank card transaction fees' will reach $46.79 million. The estimate is in contrast to the year-ago figure of $46.36 million.

View all Key Company Metrics for Commerce here>>>

Over the past month, Commerce shares have recorded returns of +4.6% versus the Zacks S&P 500 composite's +4.3% change. Based on its Zacks Rank #3 (Hold), CBSH will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Wall Street expects a year-over-year decline in earnings on higher revenues when Commerce Bancshares (CBSH - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 16. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis bank holding company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of -8.8%.

Revenues are expected to be $488.01 million, up 9.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.95% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Commerce?For Commerce, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.37%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Commerce will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Commerce would post earnings of $0.94 per share when it actually produced earnings of $0.96, delivering a surprise of +2.13%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Commerce appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

From a technical perspective, Commerce Bancshares, Inc. (CBSH - Free Report) is looking like an interesting pick, as it just reached a key level of support. CBSH's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

Over the past four weeks, CBSH has gained 11%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.

Looking at CBSH's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 3 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Investors should think about putting CBSHon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.

[url="]Commerce Bank[/url] today announced it has reached an agreement to acquire Nolan and Associates, a St. Louis–based boutique investment banking firm with

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

CBSH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.93; value investors should take notice.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $4.12 per share. CBSH boasts an average earnings surprise of +3.3%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, CBSH should be on investors' short list.

KANSAS CITY, Mo.--(BUSINESS WIRE)--Commerce Bancshares, Inc. announced earnings of $.96 per share for the three months ended March 31, 2026, compared to $.93 per share in the same quarter last year and $1.01 per share in the fourth quarter of 2025. Net income for the first quarter of 2026 amounted to $141.6 million, compared to $131.6 million in the first quarter of 2025 and $140.7 million in the prior quarter.

In making this announcement, John Kemper, Chief Executive Officer, said, “We delivered a strong first quarter highlighted by solid profitability and continued momentum across our diversified fee businesses. This was also our first full quarter incorporating FineMark, a strategic investment that meaningfully enhances our private banking and wealth management capabilities and expands our presence in highly attractive growth markets. Our overall performance reflected the strength of our franchise, supported by resilient net interest income, continued trust fee growth, and solid returns across our core profitability measures.

Mr. Kemper continued, “Our return on average assets remained solid at 1.62% while maintaining excellent credit quality, with non-accrual loans at just .05% of total loans. Non-interest income was $175.9 million and comprised 37% of total revenue.”

“We also remained focused on thoughtful capital deployment, returning excess capital to shareholders through the repurchase of more than $84 million of common stock this quarter while maintaining a conservative capital posture that underpins our long‑term strength and flexibility. As we look ahead, Commerce is well positioned to navigate an uncertain economic environment with discipline and confidence, balancing near‑term conditions with continued investment in long‑term growth. Our strategy remains centered on delivering consistent performance and creating durable, long‑term value for our shareholders."

First Quarter 2026 Financial Highlights:

On January 1, 2026, Commerce Bancshares, Inc. completed its acquisition of FineMark Holdings, Inc. Net interest income was $299.8 million, a $16.7 million increase over the prior quarter. The net yield on interest earning assets decreased one basis point to 3.59%. Non-interest income totaled $175.9 million, an increase of $16.9 million, or 10.6%, over the same quarter last year. Trust fees grew $14.5 million, or 25.5%, over the same period last year, mostly due to higher private client fees. Non-interest expense totaled $291.1 million and included $14.0 million in acquisition-related expense. Assets under administration grew $14.9 billion, or 19.5%, over the same period last year. Average loan balances totaled $20.3 billion, an increase of $2.7 billion, or 15.2%, over the prior quarter. Total average available for sale debt securities decreased $269.0 million from the prior quarter to $8.9 billion, at fair value. Total average deposits increased $2.1 billion, or 8.2%, over the prior quarter to $27.7 billion. The ratio of annualized net loan charge-offs to average loans was .30% in the current quarter compared to .22% in the prior quarter. The allowance for credit losses on loans increased $19.1 million during the first quarter of 2026 to $198.6 million, and the ratio of the allowance for credit losses on loans to total loans was .97% at March 31, 2026, compared to 1.01% at December 31, 2025. Total assets on March 31, 2026 were $35.7 billion, an increase of $2.8 billion over the prior quarter. For the quarter, the return on average assets was 1.62%, the return on average equity was 13.22%, and the efficiency ratio was 60.0%. Quarterly profitability metrics reflected elevated acquisition-related expenses of approximately $14 million, which temporarily pressured the efficiency ratio and return on average assets. Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, wealth management and securities brokerage. Commerce Bank, its primary subsidiary, brings over 160 years of experience helping individuals and businesses through high-touch service and sophisticated, personalized financial solutions. Commerce maintains an extensive network of banking centers, wealth offices, and ATMs throughout the Midwest, as well as commercial offices in 11 states and offers payment solutions nationwide. With the acquisition of FineMark Holdings, Inc., Commerce builds on its existing private banking and wealth management presence in Florida and adds wealth offices in Arizona and South Carolina. Customers can conveniently access their account 24/7 using mobile and online platforms, as well as a customer service line.

This financial news release and the supplementary Earnings Highlights presentation are available on the Company’s website at https://investor.commercebank.com/news-info/financial-news-releases/default.aspx.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

  For the Three Months Ended

(Unaudited)

(Dollars in thousands, except per share data)

Mar. 31,
2026

Dec. 31,
2025

Mar. 31,
2025

FINANCIAL SUMMARY

Net interest income

$299,840

$283,152

$269,102

Non-interest income

175,851

166,208

158,949

Total revenue

475,691

449,360

428,051

Investment securities gains (losses)

11,647

2,929

(7,591

)

Provision for credit losses

10,960

15,993

14,487

Non-interest expense

291,126

252,995

238,376

Income before taxes

185,252

183,301

167,597

Income taxes

40,881

40,620

36,964

Non-controlling interest expense (income)

2,748

2,019

(959

)

Net income attributable to Commerce Bancshares, Inc.

$141,623

$140,662

$131,592

Earnings per common share:

Net income — basic

$0.96

$1.01

$0.93

Net income — diluted

$0.96

$1.01

$0.93

Effective tax rate

22.40

%

22.41

%

21.93

%

Fully-taxable equivalent net interest income

$302,204

$285,830

$271,416

Average total interest earning assets (1)

$34,130,985

$31,468,907

$30,901,110

Diluted wtd. average shares outstanding

145,856,608

137,599,105

139,725,305

RATIOS

Average loans to deposits (2)

73.44

%

69.01

%

69.38

%

Return on total average assets

1.62

1.73

1.69

Return on average equity (3)

13.22

14.70

15.82

Non-interest income to total revenue

36.97

36.99

37.13

Efficiency ratio (4)

60.00

56.23

55.61

Net yield on interest earning assets

3.59

3.60

3.56

EQUITY SUMMARY

Cash dividends per share

$.275

$.262

$.262

Cash dividends on common stock

$40,355

$36,236

$36,866

Book value per share (5)

$29.64

$27.75

$24.94

Market value per share (5)

$49.20

$52.34

$59.27

High market value per share

$56.06

$57.36

$65.59

Low market value per share

$46.99

$48.69

$56.00

Common shares outstanding (5)

145,979,271

137,457,138

140,277,275

Tangible common equity to tangible assets (6)

11.07

%

11.11

%

10.33

%

Tier I leverage ratio

12.60

%

12.65

%

12.29

%

OTHER QTD INFORMATION

Number of bank/ATM locations

249

236

242

Full-time equivalent employees

4,960

4,667

4,662

(1) Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities.

(2) Includes loans held for sale.

(3) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.

(4) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.

(5) As of period end.

(6) The tangible common equity ratio is a non-gaap ratio and is calculated as stockholders’ equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).

All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2025.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

  (Unaudited)

(In thousands, except per share data)

For the Three Months Ended

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

Interest income

$396,507

$373,617

$374,105

$371,636

$364,365

Interest expense

96,667

90,465

94,648

91,489

95,263

Net interest income

299,840

283,152

279,457

280,147

269,102

Provision for credit losses

10,960

15,993

20,061

5,597

14,487

Net interest income after credit losses

288,880

267,159

259,396

274,550

254,615

NON-INTEREST INCOME

Trust fees

71,049

62,125

58,412

55,571

56,592

Bank card transaction fees

45,585

46,761

45,551

46,362

45,593

Deposit account charges and other fees

28,578

27,949

27,427

26,248

26,622

Consumer brokerage services

5,444

5,185

6,698

5,383

4,785

Capital market fees

5,338

4,230

5,138

6,175

5,112

Loan fees and sales

3,243

3,594

3,465

3,419

3,404

Other

16,614

16,364

14,820

22,455

16,841

Total non-interest income

175,851

166,208

161,511

165,613

158,949

INVESTMENT SECURITIES GAINS (LOSSES), NET

11,647

2,929

7,885

437

(7,591

)

NON-INTEREST EXPENSE

Salaries and employee benefits

180,787

162,889

157,461

155,025

153,078

Data processing and software

38,328

35,273

33,555

32,904

32,238

Professional and other services

18,792

14,573

11,284

12,973

10,026

Net occupancy

15,308

13,172

13,474

13,654

14,020

Marketing

6,957

6,201

6,670

5,974

5,843

Equipment

5,671

5,682

5,421

5,157

5,248

Supplies and communication

5,238

4,841

4,837

4,962

5,046

Deposit Insurance

3,914

(81

)

3,074

3,312

3,744

Other

16,131

10,445

8,242

10,476

9,133

Total non-interest expense

291,126

252,995

244,018

244,437

238,376

Income before income taxes

185,252

183,301

184,774

196,163

167,597

Less income taxes

40,881

40,620

41,152

42,400

36,964

Net income

144,371

142,681

143,622

153,763

130,633

Less non-controlling interest expense (income)

2,748

2,019

2,104

1,284

(959

)

Net income attributable to Commerce Bancshares, Inc.

$141,623

$140,662

$141,518

$152,479

$131,592

Net income per common share — basic

$0.96

$1.01

$1.01

$1.09

$0.93

Net income per common share — diluted

$0.96

$1.01

$1.01

$1.09

$0.93

OTHER INFORMATION

Return on total average assets

1.62

%

1.73

%

1.78

%

1.95

%

1.69

%

Return on average equity (1)

13.22

14.70

15.26

17.40

15.82

Efficiency ratio (2)

60.00

56.23

55.26

54.77

55.61

Effective tax rate

22.40

22.41

22.53

21.76

21.93

Net yield on interest earning assets

3.59

3.60

3.64

3.70

3.56

Fully-taxable equivalent net interest income

$302,204

$285,830

$281,770

$282,428

$271,416

(1) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.

(2) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - PERIOD END

  (Unaudited)

(In thousands)

Mar. 31,
2026

Dec. 31,
2025

Mar. 31,
2025

ASSETS

Loans

Business

$6,750,356

$6,439,380

$6,239,276

Real estate — construction and land

1,581,789

1,438,012

1,419,572

Real estate — business

4,059,539

3,674,567

3,628,635

Real estate — personal

4,407,606

3,053,435

3,047,809

Consumer

2,475,353

2,196,822

2,116,160

Revolving home equity

619,178

375,159

356,675

Consumer credit card

557,733

589,694

568,163

Overdrafts

9,510

4,194

3,131

Total loans

20,461,064

17,771,263

17,379,421

Allowance for credit losses on loans

(198,605

)

(179,468

)

(167,031

)

Net loans

20,262,459

17,591,795

17,212,390

Loans held for sale

2,081

4,329

2,890

Investment securities:

Available for sale debt securities

8,646,127

9,095,513

9,264,947

Trading debt securities

44,329

40,080

56,569

Equity securities

56,193

57,354

58,182

Other securities

248,339

230,459

221,370

Total investment securities

8,994,988

9,423,406

9,601,068

Federal funds sold

630

—

—

Securities purchased under agreements to resell

850,000

850,000

850,000

Interest earning deposits with banks

3,270,046

2,744,393

2,756,521

Cash and due from banks

572,588

803,239

517,332

Premises and equipment — net

527,211

485,700

476,921

Goodwill

253,805

146,539

146,539

Other intangible assets — net

145,985

13,311

13,441

Other assets

837,463

852,377

787,862

Total assets

$35,717,256

$32,915,089

$32,364,964

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits:

Non-interest bearing

$8,058,024

$8,205,711

$7,518,243

Savings, interest checking and money market

17,877,836

15,047,406

15,975,283

Certificates of deposit of less than $100,000

1,032,114

1,023,406

985,878

Certificates of deposit of $100,000 and over

1,416,345

1,363,053

1,362,393

Total deposits

28,384,319

25,639,576

25,841,797

Federal funds purchased and securities sold under agreements to repurchase

2,576,723

2,989,641

2,400,036

Other borrowings

8,045

12,798

17,743

Other liabilities

421,771

458,302

606,986

Total liabilities

31,390,858

29,100,317

28,866,562

Stockholders’ equity:

Common stock

742,606

692,944

676,054

Capital surplus

3,986,353

3,522,292

3,381,960

Retained earnings

233,094

131,826

140,220

Treasury stock

(120,692

)

(48,001

)

(85,871

)

Accumulated other comprehensive income (loss)

(539,592

)

(507,690

)

(634,576

)

Total stockholders’ equity

4,301,769

3,791,371

3,477,787

Non-controlling interest

24,629

23,401

20,615

Total equity

4,326,398

3,814,772

3,498,402

Total liabilities and equity

$35,717,256

$32,915,089

$32,364,964

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

AVERAGE BALANCE SHEETS

  (Unaudited)

(In thousands)

For the Three Months Ended

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

ASSETS:

Loans:

Business

$6,687,131

$6,317,805

$6,230,019

$6,247,252

$6,106,185

Real estate — construction and land

1,592,328

1,408,339

1,396,977

1,430,758

1,415,349

Real estate — business

4,045,670

3,730,679

3,715,597

3,692,405

3,667,833

Real estate — personal

4,417,131

3,058,834

3,059,913

3,048,895

3,045,876

Consumer

2,421,541

2,200,500

2,160,637

2,148,666

2,082,360

Revolving home equity

611,101

372,194

360,820

362,312

358,684

Consumer credit card

555,697

565,896

563,351

559,858

560,534

Overdrafts

7,144

6,592

7,037

5,663

5,860

Total loans

20,337,743

17,660,839

17,494,351

17,495,809

17,242,681

Allowance for credit losses on loans

(201,769

)

(175,129

)

(164,623

)

(166,391

)

(162,186

)

Net loans

20,135,974

17,485,710

17,329,728

17,329,418

17,080,495

Loans held for sale

2,361

2,532

2,369

1,741

1,584

Investment securities:

U.S. government and federal agency obligations

3,190,796

3,197,720

2,693,327

2,623,896

2,586,944

Government-sponsored enterprise obligations

54,800

54,955

55,014

55,038

55,330

State and municipal obligations

709,332

724,737

756,137

780,063

804,363

Mortgage-backed securities

4,211,068

4,316,799

4,461,056

4,641,295

4,788,102

Asset-backed securities

1,201,187

1,336,859

1,466,770

1,585,364

1,655,701

Other debt securities

176,676

196,633

204,281

237,385

258,136

Unrealized gain (loss) on debt securities

(630,778

)

(645,595

)

(766,025

)

(838,028

)

(935,054

)

Total available for sale debt securities

8,913,081

9,182,108

8,870,560

9,085,013

9,213,522

Trading debt securities

97,801

61,160

56,032

51,131

38,298

Equity securities

50,378

52,387

50,823

54,472

57,028

Other securities

250,641

227,395

220,041

216,560

233,461

Total investment securities

9,311,901

9,523,050

9,197,456

9,407,176

9,542,309

Federal funds sold

862

—

23

158

2,089

Securities purchased under agreements to resell

850,000

850,000

850,000

850,000

788,889

Interest earning deposits with banks

2,997,340

2,786,891

2,422,441

2,036,803

2,388,504

Other assets

2,074,538

1,700,147

1,709,247

1,671,763

1,698,296

Total assets

$35,372,976

$32,348,330

$31,511,264

$31,297,059

$31,502,166

LIABILITIES AND EQUITY:

Non-interest bearing deposits

$7,874,488

$7,592,431

$7,345,156

$7,356,882

$7,298,686

Savings

1,301,768

1,261,285

1,283,671

1,303,391

1,294,174

Interest checking and money market

16,019,323

14,335,613

13,740,770

13,901,634

13,906,827

Certificates of deposit of less than $100,000

1,035,130

1,015,617

991,877

984,845

991,826

Certificates of deposit of $100,000 and over

1,465,168

1,389,149

1,416,572

1,371,428

1,363,655

Total deposits

27,695,877

25,594,095

24,778,046

24,918,180

24,855,168

Borrowings:

Federal funds purchased

141,888

130,487

130,622

129,891

128,340

Securities sold under agreements to repurchase

2,674,484

2,429,746

2,519,660

2,371,031

2,723,227

Other borrowings

90,796

1,230

1,860

2,748

616

Total borrowings

2,907,168

2,561,463

2,652,142

2,503,670

2,852,183

Other liabilities

423,998

395,336

402,265

360,204

421,370

Total liabilities

31,027,043

28,550,894

27,832,453

27,782,054

28,128,721

Equity

4,345,933

3,797,436

3,678,811

3,515,005

3,373,445

Total liabilities and equity

$35,372,976

$32,348,330

$31,511,264

$31,297,059

$31,502,166

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

AVERAGE RATES

  (Unaudited)

For the Three Months Ended

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

ASSETS:

Loans:

Business (1)

5.41

%

5.48

%

5.72

%

5.72

%

5.75

%

Real estate — construction and land

6.59

7.05

7.37

7.39

7.30

Real estate — business

5.75

5.76

5.92

5.92

5.88

Real estate — personal

4.82

4.38

4.34

4.30

4.28

Consumer

6.20

6.23

6.42

6.43

6.52

Revolving home equity

7.29

7.25

7.94

7.41

7.26

Consumer credit card

12.64

12.81

13.21

13.18

13.49

Overdrafts

—

—

—

—

—

Total loans

5.79

5.84

6.02

6.01

6.02

Loans held for sale

4.98

5.01

6.03

9.22

5.89

Investment securities:

U.S. government and federal agency obligations

3.60

4.07

4.06

4.28

4.09

Government-sponsored enterprise obligations

2.40

2.36

2.35

2.38

2.40

State and municipal obligations (1)

2.10

2.06

2.05

2.05

2.05

Mortgage-backed securities

2.12

2.05

2.01

2.08

2.08

Asset-backed securities

3.80

3.78

3.69

3.73

3.46

Other debt securities

3.17

2.97

2.97

2.94

2.69

Total available for sale debt securities

2.85

2.96

2.86

2.95

2.83

Trading debt securities (1)

3.14

4.61

4.67

4.63

4.97

Equity securities (1)

6.49

6.35

6.09

6.26

8.02

Other securities (1)

6.81

9.08

7.29

11.63

7.85

Total investment securities

2.97

3.12

2.99

3.16

2.98

Federal funds sold

3.29

—

—

5.08

5.63

Securities purchased under agreements to resell

4.03

4.00

4.00

4.02

3.81

Interest earning deposits with banks

3.70

3.95

4.45

4.46

4.46

Total interest earning assets

4.74

4.74

4.86

4.90

4.81

LIABILITIES AND EQUITY:

Interest bearing deposits:

Savings

.07

.05

.05

.05

.05

Interest checking and money market

1.48

1.45

1.54

1.49

1.52

Certificates of deposit of less than $100,000

3.17

3.25

3.33

3.44

3.65

Certificates of deposit of $100,000 and over

3.35

3.60

3.71

3.78

3.96

Total interest bearing deposits

1.61

1.62

1.71

1.67

1.72

Borrowings:

Federal funds purchased

3.66

3.92

4.34

4.37

4.37

Securities sold under agreements to repurchase

2.39

2.54

2.88

2.85

2.86

Other borrowings

3.88

.65

1.71

3.79

.66

Total borrowings

2.50

2.61

2.95

2.93

2.93

Total interest bearing liabilities

1.72

%

1.75

%

1.87

%

1.83

%

1.89

%

Net yield on interest earning assets

3.59

%

3.60

%

3.64

%

3.70

%

3.56

%

(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CREDIT QUALITY

  For the Three Months Ended

(Unaudited)

(In thousands, except ratios)

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

ALLOWANCE FOR CREDIT LOSSES ON LOANS

Balance at beginning of period

$179,468

$175,671

$165,260

$167,031

$162,742

Initial allowance for credit loss at acquisition

22,828

—

—

—

—

Provision for credit losses on loans

11,283

13,660

20,739

7,919

15,095

Net charge-offs (recoveries):

Commercial portfolio:

Business

241

222

826

432

46

Real estate — construction and land

—

16

—

24

—

Real estate — business

5,405

(24

)

(23

)

(425

)

377

5,646

214

803

31

423

Personal banking portfolio:

Consumer credit card

7,139

6,488

6,515

7,085

6,967

Consumer

1,768

2,498

2,310

2,168

2,852

Overdraft

413

485

432

360

495

Real estate — personal

2

180

269

35

72

Revolving home equity

6

(2

)

(1

)

11

(3

)

9,328

9,649

9,525

9,659

10,383

Total net loan charge-offs

14,974

9,863

10,328

9,690

10,806

Balance at end of period

$198,605

$179,468

$175,671

$165,260

$167,031

LIABILITY FOR UNFUNDED LENDING COMMITMENTS

$17,699

$17,660

$15,327

$16,005

$18,327

NET CHARGE-OFF RATIOS (1)

Commercial portfolio:

Business

.01

%

.01

%

.05

%

.03

%

—

%

Real estate — construction and land

—

—

—

.01

—

Real estate — business

.54

—

—

(.05

)

.04

.19

.01

.03

—

.02

Personal banking portfolio:

Consumer credit card

5.21

4.55

4.59

5.08

5.04

Consumer

.30

.45

.42

.40

.56

Overdraft

23.45

29.19

24.36

25.50

34.26

Real estate — personal

—

.02

.03

—

.01

Revolving home equity

—

—

—

.01

—

.47

.62

.61

.63

.70

Total

.30

%

.22

%

.23

%

.22

%

.25

%

CREDIT QUALITY RATIOS

Non-accrual loans to total loans

.05

%

.09

%

.09

%

.11

%

.13

%

Allowance for credit losses on loans to total loans

.97

1.01

.99

.94

.96

NON-ACCRUAL AND PAST DUE LOANS

Non-accrual loans:

Business

$201

$123

$255

$410

$1,112

Real estate — construction and land

—

—

191

426

220

Real estate — business

9,369

14,785

14,940

15,109

18,305

Real estate — personal

1,316

842

867

948

989

Revolving home equity

34

—

—

1,977

1,977

Total

10,920

15,750

16,253

18,870

22,603

Loans past due 90 days and still accruing interest

$22,824

$24,659

$21,536

$25,303

$19,417

(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).

COMMERCE BANCSHARES, INC.
Management Discussion of First Quarter Results
March 31, 2026

For the quarter ended March 31, 2026, net income amounted to $141.6 million, compared to $140.7 million in the previous quarter and $131.6 million in the same quarter last year. The increase in net income over the previous quarter was primarily the result of higher net interest income, non-interest income, gains on investment securities, and a decrease in the provision for credit losses, partly offset by higher non-interest expense. The net yield on interest earning assets decreased one basis point from the previous quarter to 3.59%. Average loans and deposits increased $2.7 billion and $2.1 billion, respectively, while available for sale investment securities, at fair value, decreased $269.0 million compared to the prior quarter. For the quarter, the return on average assets was 1.62%, the return on average equity was 13.22%, and the efficiency ratio was 60.0%.

On January 1, 2026, the Company closed on its previously announced acquisition of FineMark Holdings, Inc. (“FineMark”), Ft. Meyers, Florida, with 13 banking locations in Florida, Arizona, and South Carolina. The acquisition added total assets of approximately $3.9 billion, including loans of $2.7 billion, total deposits of $3.1 billion and assets under administration of $8.7 billion.

Balance Sheet Review

During the 1st quarter of 2026, average loans totaled $20.3 billion, an increase of $2.7 billion over the prior quarter, and an increase of $3.1 billion over the same quarter last year. The increase in average balances over both periods was primarily due to the acquisition of FineMark, which added $2.7 billion in loan balances. Compared to the previous quarter, average balances of personal real estate, business, business real estate, revolving home equity and consumer loans grew $1.4 billion, $369.3 million, $315.0 million, $238.9 million and $221.0 million, respectively. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $26.2 million, compared to $27.0 million in the prior quarter.

Total average available for sale debt securities decreased $269.0 million from the previous quarter to $8.9 billion, at fair value. The decrease in available for sale debt securities was mainly the result of lower average balances of mortgage-backed and asset-backed securities. During the 1st quarter of 2026, the unrealized loss on available for sale debt securities increased $40.7 million to $687.5 million, at period end. Also, during the 1st quarter of 2026, maturities and pay downs of available for sale debt securities were $410.7 million. On March 31, 2026, the duration of the available for sale investment portfolio was 4.2 years, and maturities and pay downs of approximately $1.2 billion are expected to occur during the next 12 months.

Average interest earning deposits with banks increased $210.4 million over average balances in the previous quarter, and the average balances within other assets increased $374.4 million mainly due to increases in goodwill, intangible assets, and premises and equipment related to the Company's acquisition of FineMark.

Total average deposits increased $2.1 billion this quarter over the previous quarter. The increase in average balances was primarily due to the acquisition of FineMark, which added $2.7 billion of interest bearing and $425 million of non-interest bearing deposit balances. Shortly after the acquisition, the Company moved $1.0 billion of FineMark’s high-cost, money market deposit balances off-balance sheet. Compared to the prior quarter, average interest checking and money market deposits and demand deposits increased $1.7 billion and $282.1 million, respectively. Additionally, average balances of certificates of deposit of $100,000 and over increased $76.0 million compared to the prior quarter, mainly due to deposit balances acquired from FineMark. Compared to the previous quarter, total average wealth and retail banking deposits grew $2.3 billion and $251.0 million, respectively, while commercial deposits declined $408.3 million. The average loans to deposits ratio was 73.4% in the current quarter and 69.0% in the prior quarter. The Company’s average borrowings, which included average customer repurchase agreements of $2.7 billion, increased $345.7 million to $2.9 billion in the 1st quarter of 2026. Federal Home Loan Bank advances of $350.0 million, which the Company acquired from the FineMark acquisition, were paid off in January 2026.

Net Interest Income

Net interest income in the 1st quarter of 2026 amounted to $299.8 million, an increase of $16.7 million over the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter increased $16.4 million over the previous quarter to $302.2 million. The increase in net interest income was mostly due to the acquisition of FineMark on January 1, 2026. Accretion income on FineMark’s loans resulting from purchase accounting adjustments totaled $6.9 million. The net yield (FTE) on earning assets decreased to 3.59%, from 3.60% in the prior quarter.

Compared to the previous quarter, interest income on loans (FTE) increased $30.4 million, mostly due to higher average balances in all loan categories, except consumer credit cards, and higher average rates earned on personal real estate loans, partly offset by lower average rates earned on business, construction, and business real estate loans. The average yield (FTE) on the loan portfolio decreased five basis points to 5.79% this quarter.

Interest income on investment securities (FTE) decreased $7.3 million compared to the prior quarter, mostly due to lower average rates earned on U.S. government and federal agency obligations and other securities and lower average balances of asset-backed and mortgage-backed securities. Interest income earned on U.S. government and federal agency obligations included the impact of a $3.8 million decrease in inflation income from Treasury inflation-protected securities compared to the previous quarter. In the prior quarter, interest on other securities included dividend income of $2.1 million related to a private equity investment that did not reoccur in the current quarter. Additionally, the Company recorded a $940 thousand adjustment to premium amortization on March 31, 2026, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was higher than the $731 thousand adjustment that increased interest income in the prior quarter. The average yield (FTE) on total investment securities was 2.97% in the current quarter, compared to 3.12% in the previous quarter.

Compared to the previous quarter, interest income on deposits with banks decreased $401 thousand as lower average rates more than offset higher average balances. Interest expense increased $6.2 million over the previous quarter, mainly due to higher average interest bearing deposit balances, partly offset by lower average rates paid on interest bearing deposit balances. Interest expense on deposits increased $5.1 million mostly due to higher average interest checking and money market deposit account balances. The average rate paid on interest bearing deposits totaled 1.61% in the current quarter compared to 1.62% in the prior quarter. The overall rate paid on interest bearing liabilities was 1.72% in the current quarter and 1.75% in the prior quarter.

Non-Interest Income

In the 1st quarter of 2026, total non-interest income amounted to $175.9 million, an increase of $16.9 million, or 10.6%, over the same period last year and an increase of $9.6 million over the prior quarter. The increase in non-interest income compared to the same period last year was mainly due to higher trust fees and deposit account fees. The increase in non-interest income compared to the prior quarter was mainly due to higher trust fees.

Total net bank card fees in the current quarter were flat compared to the same period last year and decreased $1.2 million compared to the prior quarter. Net corporate card fees were flat compared to the same quarter last year. Net merchant fees decreased $184 thousand, or 3.2%, while net debit card fees increased $301 thousand, or 2.9%, mainly due to higher interchange income. Net credit card fees decreased $173 thousand, or 4.8%, mostly due to higher rewards expense. Total net bank card fees this quarter were comprised of fees on corporate card ($26.0 million), debit card ($10.6 million), merchant ($5.6 million) and credit card ($3.4 million) transactions.

In the current quarter, trust fees increased $14.5 million, or 25.5%, over the same period last year, and increased $8.9 million, or 14.4%, over the prior quarter, mostly resulting from higher private client fees. Compared to the same period last year, deposit account fees increased $2.0 million, or 7.3%, mostly due to higher corporate cash management fees.

For the 1st quarter of 2026, non-interest income comprised 37.0% of the Company’s total revenue.

Investment Securities Gains and Losses

The Company recorded net securities gains of $11.6 million in the current quarter, compared to net gains of $2.9 million in the prior quarter and net securities losses of $7.6 million in the 1st quarter of 2025. Net securities gains in the current quarter mostly resulted from net fair value adjustments of $10.9 million on the Company’s portfolio of private equity investments.

Non-Interest Expense

Non-interest expense for the current quarter amounted to $291.1 million, compared to $238.4 million in the same period last year and $253.0 million in the prior quarter. The current quarter included $14.0 million in acquisition-related expense, compared to $2.8 million in the previous quarter, as well as acquisition-related intangible amortization expense of $5.4 million. The increase in non-interest expense over the same period last year was mainly due to higher salaries and benefits expense, data processing and software expense, professional and other services expense, and intangible amortization expense. The increase in non-interest expense over the prior quarter was mainly due to higher salaries and benefits expense, data processing and software expense, professional and other services expense, intangible amortization expense and deposit insurance expense.

Compared to the 1st quarter of 2025, salaries and employee benefits expense increased $27.7 million, or 18.1%, mostly due to an accrual for retention bonuses, acquisition-related compensation payments and the onboarding of FineMark’s team members. Acquisition-related salaries and benefits expense was $6.6 million in the current quarter. Full-time equivalent employees totaled 4,960 and 4,662 at March 31, 2026 and 2025, respectively.

Compared to the same period last year, data processing and software expense increased $6.1 million due to higher costs for service providers and software. Professional and other services, which increased $8.8 million compared to the 1st quarter of 2025, included $4.7 million in acquisition-related legal and professional services expense. The increase in other non-interest expense was mainly due to increases of $5.4 million in intangible amortization expense related to the FineMark acquisition and $2.0 million in other acquisition-related expense. Compared to the prior quarter, deposit insurance expense increased $4.0 million due to a $3.9 million accrual adjustment to the FDIC’s special assessment, recorded in the 4th quarter of 2025.

Income Taxes

The effective tax rate for the Company was 22.4% in the current quarter, 22.4% in the prior quarter, and 21.9% in the 1st quarter of 2025.

Credit Quality

Net loan charge-offs in the 1st quarter of 2026 amounted to $15.0 million, compared to $9.9 million in the prior quarter, and $10.8 million in the same period last year. The ratio of annualized net charge-offs to total average loans was .30% in the current quarter, .22% in the previous quarter, and .25% in the same quarter of last year. Compared to the prior quarter, net charge-offs on business real estate loans and consumer credit card loans increased $5.4 million and $651 thousand, respectively, while net charge-offs on consumer loans decreased $730 thousand. The increase in business real estate loan net charge-offs was mainly due to a charge-off on a senior living non-accrual loan.

In the 1st quarter of 2026, annualized net charge-offs on average consumer credit card loans were 5.21%, compared to 4.55% in the previous quarter and 5.04% in the same quarter last year. Consumer loan net charge-offs were .30% of average consumer loans in the current quarter, .45% in the prior quarter, and .56% in the same quarter last year.

At March 31, 2026, the allowance for credit losses on loans totaled $198.6 million, or .97% of total loans, and increased $19.1 million compared to the prior quarter. The increase was mostly attributed to the acquisition of FineMark, which added $22.8 million to the allowance for credit losses on January 1, 2026. Additionally, the liability for unfunded lending commitments on March 31, 2026 was $17.7 million, flat compared to the liability on December 31, 2025.

At March 31, 2026, total non-accrual loans amounted to $10.9 million, a decrease of $4.8 million compared to the previous quarter. At March 31, 2026, the balance of non-accrual loans, which represented .05% of loans outstanding, included business real estate loans of $9.4 million, personal real estate loans of $1.3 million and business loans of $201 thousand. Loans more than 90 days past due and still accruing interest totaled $22.8 million at March 31, 2026.

Other

During the 1st quarter of 2026, the Company paid a cash dividend of $.275 per common share, representing a 5% increase over the same period last year. The Company purchased approximately 1.6 million shares of treasury stock during the current quarter at an average price of $51.57.

Forward Looking Information

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions, and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Additional information about risks and uncertainties is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within the Company's Annual Report on Form 10-K.

More News From Commerce Bancshares, Inc.

Commerce Bancshares (CBSH - Free Report) reported $475.69 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 11.1%. EPS of $0.96 for the same period compares to $0.98 a year ago.

The reported revenue represents a surprise of +0.44% over the Zacks Consensus Estimate of $473.62 million. With the consensus EPS estimate being $0.94, the EPS surprise was +2.49%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Commerce performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Efficiency Ratio: 60% compared to the 58.2% average estimate based on four analysts.Net Interest Margin (Net yield on interest earning assets): 3.6% versus the four-analyst average estimate of 3.6%.Average total interest earning assets: $34.13 billion versus $33.56 billion estimated by three analysts on average.Annualized net loan charge-offs to total average loans: 0.3% versus the three-analyst average estimate of 0.2%.Book value per share: $29.64 compared to the $30.06 average estimate based on two analysts.Fully-taxable equivalent net interest income: $302.2 million versus $301.98 million estimated by four analysts on average.Total Non-Interest Income: $175.85 million versus the four-analyst average estimate of $176.89 million.Deposit account charges and other fees: $28.58 million compared to the $28.46 million average estimate based on three analysts.Net Interest Income: $299.84 million versus the three-analyst average estimate of $297.55 million.Trust fees: $71.05 million compared to the $70.12 million average estimate based on three analysts.Bank card transaction fees: $45.59 million versus $46.43 million estimated by three analysts on average.Consumer brokerage services: $5.44 million compared to the $5.27 million average estimate based on two analysts.View all Key Company Metrics for Commerce here>>>

Shares of Commerce have returned +6.9% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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 RiseTotal 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 RiseAs 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 BagProvision 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 DeclineAs 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 UpdateIn the reported quarter, the company purchased 1.6 million shares of treasury stock at an average price of $51.57.

Our Take on Commerce BancsharesOn 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.

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 BanksM&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.

Commerce Bancshares, Inc. (CBSH) Shareholder/Analyst Call Prepared Remarks Transcript

-

KANSAS CITY, Mo.--(BUSINESS WIRE)--Commerce Bancshares, Inc. (NASDAQ: CBSH) announced today that it has participated in an exchange offer initiated by Visa Inc. (“Visa”) involving a portion of the Company’s Visa Class B‑2 common stock holdings.

Under the terms of the exchange offer, and subject to final settlement, Commerce expects to exchange tendered Visa Class B‑2 shares for a combination of Visa Class B-3 common stock and Visa Class C common stock. The Company has tendered all 411,723 of its shares of Visa Inc. Class B-2 common stock and is awaiting notification of acceptance of that tender and the closing of the exchange offer.

If the Company’s tendered shares are accepted and the exchange occurs in the second quarter of 2026, Commerce expects to record a significant gain during the second quarter of 2026, based on the conversion privilege of the Class C common stock and the closing price of Visa Class A common stock. Additionally, if the tendered shares are accepted and the exchange occurs in the second quarter of 2026, Commerce may execute other strategic initiatives, including evaluating its investment portfolio as part of its ongoing capital and balance‑sheet management strategy. This may include repositioning a portion of the Company’s investment securities portfolio through the sale of available-for-sale debt securities, which may result in a significant loss, and the purchase of investment securities at current market yields to enhance net interest income, manage interest rate risk, and improve the overall quality and flexibility of the company’s balance sheet.

Commerce will provide additional details regarding the tender exchange and any related portfolio actions in future filings or disclosures, as appropriate.

About Commerce Bancshares, Inc.

Commerce Bancshares, Inc. (NASDAQ: CBSH) is a regional bank holding company with $35.7 billion in assets¹, offering banking, payment solutions, wealth management and securities brokerage through its subsidiaries. Commerce Bank, its primary subsidiary, brings over 160 years of experience helping individuals and businesses through high-touch service and sophisticated, personalized financial solutions.

Commerce maintains an extensive network of banking centers, wealth offices, and ATMs throughout the Midwest, as well as commercial offices in 11 states and offers payment solutions nationwide. With its recent acquisition of FineMark Holdings, Inc., Commerce builds on its existing private banking and wealth management presence in Florida and adds wealth offices in Arizona and South Carolina.

Customers can conveniently access their accounts 24/7 using mobile and online platforms, as well as a customer service line.

Learn more at www.commercebank.com

1As of March 31, 2026

Forward Looking Information

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions, and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Additional information about risks and uncertainties is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within the Company's Annual Report on Form 10-K.

More News From Commerce Bancshares, Inc.

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For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

CBSH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Finance stock. CBSH has a Momentum Style Score of B, and shares are up 2.8% over the past four weeks.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $4.10 per share. CBSH boasts an average earnings surprise of +3.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CBSH should be on investors' short list.

Key Takeaways Commerce Bancshares records a $99M gain after Visa accepted its tender of 411,723 Class B-2 shares.CBSH plans to sell almost $911M of 2.5% AFS securities, taking an estimated $95M pre-tax loss.CBSH expects reinvesting mostly into 4% securities to boost NII, with CET1 impact nearly neutral. Commerce Bancshares (CBSH - Free Report) is taking steps to improve the strength and flexibility of its balance sheet. The move will drive net interest income (NII) expansion and lower rate sensitivity in the quarters ahead.

The company announced that Visa Inc. (V - Free Report) accepted Commerce Bancshares’ tender of 411,723 shares of Visa Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock. The tender was earlier disclosed in a Form 8-K filed on April 27, 2026.

Following the completion of the exchange offer, Commerce Bancshares marked its Visa Class C common stock to fair value and recorded a $99 million gain. The gain was based on the conversion privilege of the Visa Class C common stock and the Visa Class A common stock’s closing price of $318.79 on May 8, 2026. The company expects to continue marking its Visa Class C shares to fair value regularly, using Visa Class A shares as evidence of orderly market transactions for similar securities issued by Visa.

Commerce Bancshares is using this gain as an opportunity to reposition part of its available-for-sale debt securities portfolio. The company approved a plan to sell securities with an amortized cost of roughly $911 million. These securities currently yield about 2.5%, and the sale is expected to generate a pre-tax loss of approximately $95 million.

CBSH intends to reinvest most of the proceeds into investment securities yielding around 4%. This will provide a meaningful pickup in portfolio yield and support NII growth over time. Management expects the combined effect of the Visa-related gain and the securities repositioning to be almost neutral to the company’s Common Equity Tier 1 ratio. This indicates that the company can enhance future profitability while preserving a solid capital profile.

Our Take on CBSH’s Securities RepositioningThe balance sheet repositioning is likely to support Commerce Bancshares’ prospects by boosting future NII, reducing interest-rate sensitivity and strengthening financial flexibility. The move reflects management’s proactive efforts to improve earnings quality while preserving capital discipline.

In the first quarter of 2026, CBSH’s NII jumped 11.4% year over year to $299.8 million on the back of the FineMark acquisition (completed in January) and balance sheet strength. With the balance sheet repositioning action, NII and net interest margin will likely expand further with additional support from the improving lending scenario and stabilizing funding costs.

In 2024, CBSH took similar steps following the acceptance of a share exchange deal with Visa. At that time, JPMorgan (JPM - Free Report) also announced recognizing accounting gains of almost $8 billion in the second quarter of 2024 as part of a share exchange deal with Visa. JPMorgan tendered its 37.2 million shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock.

Shares of Commerce Bancshares have lost 4.5% in the past six months against the industry’s growth of 2%.

Image Source: Zacks Investment Research

At present, CBSH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has been about a month since the last earnings report for Commerce Bancshares (CBSH - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Commerce due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Commerce Bancshares’ Q1 Earnings Beat as Revenues Rise Y/YCommerce Bancshares’ 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.

Revenues Improve, Expenses RiseTotal 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.

Loans & Deposits RiseAs 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.

Asset Quality: A Mixed BagProvision 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.

Capital Ratios Improve, Profitability Ratios DeclineAs 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.

Share Repurchase UpdateIn the reported quarter, the company purchased 1.6 million shares of treasury stock at an average price of $51.57.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresCurrently, Commerce has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Commerce has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

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That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

CBSH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Finance stock. CBSH has a Momentum Style Score of A, and shares are up 8.4% over the past four weeks.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $4.12 per share. CBSH also boasts an average earnings surprise of +3.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CBSH should be on investors' short list.