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, /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057) ("ZTO" or the "Company"), a leading and fast-growing express delivery company in China, today announced that it will release its unaudited financial results for the first quarter ended March 31, 2026, after the U.S. market closes on May 19, 2026.

ZTO's management team will host an earnings conference call at 8:30 P.M. U.S. Eastern Time on Tuesday, May 19, 2026, which is 8:30 A.M. Beijing Time on Wednesday, May 20, 2026.

Dial-in details for the earnings conference call are as follows:

United States/Canada:

1-888-317-6003

Hong Kong:

800-963-976

Mainland China:

4001-206-115

International:

1-412-317-6061

Passcode:

2836360

A replay of the conference call may be accessible through May 25, 2026 by dialing the following numbers:                                                                        

United States/Canada:

1-855-669-9658

International:

1-412-317-0088

Passcode:

1895291

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://zto.investorroom.com.

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057) ("ZTO" or the "Company") is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.

ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.

For more information, please visit http://zto.investorroom.com.

For investor inquiries, please contact:

Investor Relations
Tel: (86) 21 5980 4508
Email: [email protected]

SOURCE ZTO Express (Cayman) Inc.

Investors with an interest in Transportation - Services stocks have likely encountered both ZTO Express (Cayman) Inc. (ZTO - Free Report) and C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, ZTO Express (Cayman) Inc. is sporting a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZTO is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ZTO currently has a forward P/E ratio of 13.44, while CHRW has a forward P/E of 30.72. We also note that ZTO has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHRW currently has a PEG ratio of 1.91.

Another notable valuation metric for ZTO is its P/B ratio of 1.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CHRW has a P/B of 11.76.

Based on these metrics and many more, ZTO holds a Value grade of B, while CHRW has a Value grade of D.

ZTO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ZTO is likely the superior value option right now.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is ZTO Express Cayman (ZTO - Free Report) . ZTO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.56, which compares to its industry's average of 14.33. ZTO's Forward P/E has been as high as 14.00 and as low as 9.23, with a median of 10.72, all within the past year.

We should also highlight that ZTO has a P/B ratio of 1.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.47. ZTO's P/B has been as high as 1.87 and as low as 1.14, with a median of 1.32, over the past year.

Finally, we should also recognize that ZTO has a P/CF ratio of 9.63. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ZTO's P/CF compares to its industry's average P/CF of 14.43. Within the past 12 months, ZTO's P/CF has been as high as 13.96 and as low as 8.08, with a median of 9.89.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ZTO Express Cayman is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ZTO feels like a great value stock at the moment.

3 must-own China stocks for the Year of the DragonZTO Express (Cayman) NYSE: ZTO reported stronger first-quarter volume growth than the broader Chinese express delivery industry, with management citing improved pricing discipline, lower transit costs and growth in higher-value parcel categories as key drivers of the quarter.

Chairman and Chief Executive Officer Meisong Lai said China’s express delivery industry parcel volume rose 5.8% year over year in the first quarter of 2026, while ZTO’s parcel volume increased 13.2% to 9.67 billion parcels. Chief Financial Officer Huiping Yan said the company gained 1.4 percentage points of market presence during the period.

Get ZTO Express (Cayman) alerts:

Alibaba Just Changed The Game For Chinese Tech ConglomeratesLai said the industry benefited from “anti-involution” policies that have helped restore pricing order and move competition back toward more rational behavior. He said ZTO supported those policies and remained focused on network health, service quality and profitability rather than short-term aggressive expansion.

Revenue rises 22% as adjusted profit increases Yan said total revenue increased 22% year over year to CNY 13.3 billion. Adjusted net income rose 5.2% to CNY 2.4 billion, while adjusted operating profit, excluding non-operating factors such as government subsidies and tax rebates, increased 22% to CNY 2.6 billion.

Income from operations increased 5.8% to CNY 2.5 billion, with the operating margin declining 2.9 percentage points to 19.2%. Gross profit rose 20.3% to CNY 3.2 billion, while gross margin decreased slightly by 0.3 percentage points to 24.4%.

Parcel volume increased 13.2% to 9.67 billion parcels. Total revenue rose 22% to CNY 13.3 billion. Adjusted net income increased 5.2% to CNY 2.4 billion. Adjusted EBITDA rose 6.9% to CNY 3.9 billion. Operating cash flow increased 18% to CNY 2.8 billion. Yan said selling, general and administrative expenses, excluding share-based compensation, increased 14.9% to CNY 594.5 million. As a percentage of revenue, that expense category declined to 4.5%, which she said reflected corporate cost efficiency.

Pricing improves, but KA mix raises core unit costs ZTO’s average selling price for core express delivery increased CNY 0.11, or 8.2%, Yan said. She attributed the increase mainly to a CNY 0.18 positive impact from higher key account volume mix, led by higher-value reverse logistics, partly offset by a CNY 0.09 increase in volume incentives. Higher average parcel weight added another CNY 0.02 to ASP.

Total cost of revenue increased 22.5% to CNY 10 billion. Yan said overall unit cost for the core express delivery business increased 8.8%, or CNY 0.08, including a CNY 0.15 increase tied to the company’s strategic expansion of key account volume.

At the same time, management emphasized efficiency gains in transportation and sorting. The combined unit cost of transportation and sorting fell CNY 0.06 year over year. Yan said unit line-haul transportation cost declined 10.5% to CNY 0.37 because of optimized route planning and better load efficiency. Unit sorting cost declined 6.4% to CNY 0.25, aided by labor productivity and automation improvements.

Responding to an analyst question from Morgan Stanley’s Qianlei Fan, management said ZTO improved transportation costs through route optimization, better loading efficiency, tiered incentives tied to volume levels and refined fleet management. On sorting costs, the company cited automation, digital monitoring, equipment upgrades and workforce accountability mechanisms.

Management said fuel price volatility was expected to have a limited impact on second-quarter network-wide costs. Yan said diesel prices rose significantly in March because of Middle East tensions but declined somewhat in late April. She added that pricing recovery driven by anti-involution policies and, in some provinces, fuel surcharges had largely offset the impact of higher fuel costs.

Retail and reverse logistics remain a growth focus Lai said ZTO continued to optimize its product mix by focusing on higher-value retail parcels, reverse logistics and other differentiated offerings. He said this was part of a shift away from reliance on traditional e-commerce parcel volume toward a more diversified structure.

In response to UBS analyst Aaron Luo, management said average daily retail parcel volume reached approximately 9.7 million in the first quarter. In the second quarter, reverse logistics parcel volume rose further, with average daily volume exceeding 9.4 million. Although reverse logistics pricing declined slightly because of competition, management said unit costs continued to improve through scale and cost controls. Lai said the unit profit contribution from reverse logistics remained higher than that of traditional e-commerce parcels.

Management highlights AI and automation initiatives Goldman Sachs analyst Steve Chu asked how ZTO planned to maintain its technology lead in the AI era. Management said AI had become a core strategic priority and was being integrated across sorting, customer service and last-mile dispatch.

The company said 3D digital twins and machine vision had been deployed across about 25 sorting centers, reducing missorting rates by more than 60%. ZTO also said its AI-powered customer service system automatically processes more than 70% of end-to-end service tickets, while intelligent agents cover more than 80% of daily business inquiries from network outlets.

For last-mile operations, management said proprietary high-precision mapping is being used in site selection and delivery route optimization, helping large outlets reduce short-distance transportation costs by more than 20%. The company said it plans to complete an AI upgrade of voice customer service within six months, covering nearly 6,000 network outlets nationwide.

Guidance maintained as company expects continued volume growth ZTO maintained its previous full-year guidance for parcel volume growth of 10% to 13% year over year. Yan said that represents a parcel volume range of 42.37 billion to 43.52 billion parcels. She said the estimate reflects management’s current preliminary view and remains subject to change.

Yan also corrected her prepared remarks to say ZTO expects 2026 capital expenditures of about CNY 6 billion. First-quarter capital expenditures totaled CNY 1.8 billion.

Looking ahead, Lai said ZTO would continue to focus on high-quality development, cost reduction, service quality, network management and shareholder returns. He said the company also aims to protect frontline courier rights and improve courier income, while supporting network partners in lowering costs and improving profitability.

Asked by CITIC Securities analyst Mujin Lin about potential social security requirements for delivery workers, management said such policies could increase per-parcel costs in the short term but may improve network stability and reduce turnover over the long term. Yan said ZTO’s consolidated group already has a higher level of compliance, while outlet-level practices vary, and said the company would support network partners in becoming compliant.

About ZTO Express (Cayman) NYSE: ZTOZTO Express (Cayman) Inc is one of China's leading express delivery companies, specializing in both domestic and cross-border parcel logistics. The company operates a technology-enabled network that connects shippers, independent pickup and delivery stations, regional sorting hubs and end customers. ZTO's service portfolio includes standard express, heavy-weight parcel delivery, time-definite shipments and e-commerce logistics solutions tailored for online retailers and marketplaces.

Founded in 2002 and headquartered in Shanghai, ZTO has grown rapidly by leveraging a franchise-style operating model that engages a broad network of independent contractors.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in ZTO Express (Cayman) Right Now?Before you consider ZTO Express (Cayman), you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ZTO Express (Cayman) wasn't on the list.

While ZTO Express (Cayman) currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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ZTO's solid share gains, upbeat estimates and strength across its core express delivery services unit spotlight fresh momentum for investors.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

ZTO Express Cayman (ZTO - Free Report) is a stock many investors are watching right now. ZTO is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 15.03. Over the past year, ZTO's Forward P/E has been as high as 14.00 and as low as 9.23, with a median of 10.72.

Finally, investors should note that ZTO has a P/CF ratio of 9.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ZTO's P/CF compares to its industry's average P/CF of 13.10. ZTO's P/CF has been as high as 13.96 and as low as 8.08, with a median of 9.89, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ZTO Express Cayman is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ZTO feels like a great value stock at the moment.

Investors interested in stocks from the Transportation - Services sector have probably already heard of ZTO Express (Cayman) Inc. (ZTO - Free Report) and C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

ZTO Express (Cayman) Inc. has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold) right now. This means that ZTO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ZTO currently has a forward P/E ratio of 11.39, while CHRW has a forward P/E of 31.37. We also note that ZTO has a PEG ratio of 0.84. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CHRW currently has a PEG ratio of 1.65.

Another notable valuation metric for ZTO is its P/B ratio of 1.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHRW has a P/B of 13.22.

Based on these metrics and many more, ZTO holds a Value grade of A, while CHRW has a Value grade of D.

ZTO stands above CHRW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZTO is the superior value option right now.

HUYA Inc. (HUYA) Q4 2025 Earnings Call Transcript

The company is starting to monetize its gaming ecosystem through game publishing, selling in-game items and providing other related services

image credit: Bamboo Works

Key Takeaways: Huya's latest results show its long-promised shift beyond livestreaming is starting to show up in its financials For investors, the real bet is not on one breakout title, but on whether Huya can repeatedly monetize games using its streamers, tournaments, publisher ties and content ecosystem After three years of falling revenue, livestream gaming leader Huya Inc. (NYSE:HUYA) may finally have found a new growth formula in China's constantly evolving game landscape.

That matters because the market has changed for specialist game-streaming platforms like Huya. China's e-sports industry still generated 29.33 billion yuan in revenue in 2025 and had more than 495 million users, showing the market remains large. But Huya is no longer competing only with longtime rival DouYu (DOYU.US) and other livestream gaming specialists.

Short-video giants such as Douyin and Kuaishou (1024.HK) are also pushing deeper into livestreaming, leveraging their much larger user bases, stronger recommendation engines, and broader monetization tools. Douyin, in particular, has lured top gaming creators and e-sports talent away from traditional platforms.

Monetization, however, is intentionally limited for now, with management expecting stronger revenue only after later content updates. That makes "Goose Goose Duck" more important as a potential future source of game-related sales under Huya's new business model rather than as a standalone hit.

Emerging alternative modelThe latest quarter caps a year when an alternative model has become clearly visible. Huya is no longer just trying to turn viewers into tippers. It's trying to use streamers, tournaments, short-video reach, and community distribution to help game companies market and monetize titles, then capture more of that value itself. That's a stronger story than simply "livestreaming stabilized," and it's a story investors can map more easily.

The more interesting question is whether Huya is building something broader than one or two successful launches. Management said in-game item sales grew by more than 200% year-over- year in the fourth quarter, and highlighted exclusive presale rights for an "Honor of Kings" FMVP skin, describing game publishing as the company's most important growth driver.

Company officials also pointed to the Demacia Cup, which Huya hosted in December in what they described as the first time the official League of Legends organizer had handed the event to a third-party livestreaming platform. Taken together, those examples suggest Huya's publisher relationships, content operations and event capabilities are beginning to translate into revenue beyond simply putting viewers in front of streamers.   

Huya's stock jumped nearly 10% the day it released its latest report last week, suggesting its transformation was capturing investor attention, though it later gave back all the gains. The stock is down about 4% over the last 52 weeks, missing the broader rally for Chinese stocks over that time, showing investors are still waiting to see if the recent return to revenue growth can be sustained.   

Huya is doing its best to create excitement about the potential of "Goose Goose Duck." Huang said the game has major content updates planned for later this year, that management expects another jump in daily active users in the summer, and that Huya plans to launch a WeChat mini-game version and a UGC editor to extend the game's life cycle.

The next few quarters will be pivotal, showing whether Huya can repeat the "Goose Goose Duck" formula with other titles and make publishing a durable part of its revenue mix.

Regulation was not a major topic on Huya's earnings call, but it remains an ongoing risk. Investor concern in that regard eased after late-2023 draft measures aimed at curbing in-game spending incentives and reward mechanics were later removed from the regulator's website. Still, the reality is that gaming and livestreaming remain closely supervised.

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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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, /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced it filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission (the "SEC") on April 27, 2026. The annual report on Form 20-F can be accessed on the SEC's website at https://www.sec.gov and on the Company's investor relations website at https://ir.huya.com.

The Company will provide a hard copy of the annual report, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to the Company's Investor Relations Department at HUYA Inc., Building A3, E-Park, 280 Hanxi Road, Panyu District, Guangzhou 511446, the People's Republic of China.

About HUYA Inc.

HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide.

For more information, please visit https://ir.huya.com.

For investor and media inquiries, please contact:

In China:

HUYA Inc.
Investor Relations
Tel: +86-20-2290-7829
E-mail: [email protected]

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

SOURCE HUYA Inc.

MarketBeat Instant News Alerts

3 hours ago

Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of StockMarketBeat

MarketAxess Holdings Inc. (NASDAQ:MKTX - Get Free Report) General Counsel Scott Pintoff sold 100 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $116.03, for a total transaction of $11,603.00. Following the transaction, the general counsel owned 11,786 shares in the company, valued at approximately $1,367,529.58. The trade was a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

NASDAQ:MKTX

Read Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of Stock

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HUYA (HUYA) upgraded to BUY with a $3.93/share target, reflecting 27% upside and 20x forward earnings valuation. Strategic pivot to game-related services drove 14.6% revenue growth and 69% y/y segment expansion, now 36% of total revenue. Gross margin expansion and aggressive capital returns—>11% annualized yield—underscore management's execution and shareholder focus.

Stanley Black & Decker says fewer buyers want the Connecticut plant's single-sided tape measures, preferring double-sided ones made abroad.

Plug Power Inc. (PLUG - Free Report) is scheduled to release first-quarter 2026 results on May 11, after market close.

The company has a mixed earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters and missed the mark in two, the average surprise being 9%.

Let’s see how things have shaped up for Plug Power this earnings season.

Factors to Note Ahead of PLUG’s Q1 ResultsRevenues from services performed on fuel cell systems and related infrastructure are expected to have grown, driven by an increase in the sales of service parts, a surge in pricing of service agreements and an improvement in the scope of services provided to certain customers. The Zacks Consensus Estimate for services performed on fuel cell systems and related infrastructure net revenues is pegged at $22.7 million, implying a 34.3% increase from the year-ago number.

Increased fuel prices and a rise in the number of customer sites with fuel contracts are expected to have aided revenues from fuel delivered to customers and related equipment in the first quarter. The Zacks Consensus Estimate for fuel delivered to customers and related equipment net revenues is pegged at $30.8 million, implying a 4.4% increase from the year-ago number.

Revenues from Power Purchase Agreements (PPAs) are expected to have been buoyed by an increase in pricing of the PPAs. The Zacks Consensus Estimate for net revenues from the same is $27.4 million, indicating an increase of 18.1% from the prior-year quarter.

However, a decline in revenues related to hydrogen site installations, liquefiers and cryogenic equipment is expected to have adversely impacted the sales of equipment, related infrastructure and others. However, an increase in demand for electrolyzers is expected to have provided some relief. The Zacks Consensus Estimate for net revenues from the sale of equipment, related infrastructure and others is $64 million, in line with the prior-year quarter.

Rising costs and operating expenses have been concerns for Plug Power for some time now. The impacts of high labor and raw material costs are likely to have affected its margin and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.

Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.

Amid this backdrop, the Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $142.5 million, indicating an increase of 6.6% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at a loss of nine cents per share compared with a loss of 21 cents per share in the year-ago quarter.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for PLUG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: PLUG has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of nine cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: PLUG presently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other CompaniesGraco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.

Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.

Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.

Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.

Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.

Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

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.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% 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 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.

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.

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: Stanley Black & Decker (SWK - Free Report) Headquartered in New Britain, CT, Stanley Black & Decker, Inc. manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services.

SWK 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 14.23; value investors should take notice.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.08 to $5.30 per share. SWK also boasts an average earnings surprise of +61.6%.

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

New CRAFTSMAN V20* ADVANCED™ Batteries provide more power and runtime†*** for bigger DIY projects Trade in a qualifying power tool battery for a free V20* ADVANCED™ 3Ah battery and charger kit and a $50 coupon toward the purchase of CRAFTSMAN V20* products at participating Lowe's and Ace Hardware in-store events, on select dates, while supplies last , /PRNewswire/ -- CRAFTSMAN®, a Stanley Black & Decker brand, announced the launch of the CRAFTSMAN V20* ADVANCED™ Batteries, designed to deliver bigger power for bigger DIY projects. Compatible with existing CRAFTSMAN V20* tools, the new batteries deliver more power, longer runtime and lots of "whoa". It's like giving your existing tools a power boost.

CRAFTSMAN® announced the launch of the CRAFTSMAN V20* ADVANCED™ Batteries, designed to deliver bigger power for bigger DIY projects.

V20* 6Ah ADVANCED battery.

V20* 3Ah ADVANCED battery.

"DIYers demand tools that keep up with their ambition - and we refuse to let anything slow them down," said Wayne de Koker, President and General Manager, CRAFTSMAN. "That's why we engineered the new V20* ADVANCED™ battery to deliver relentless power and endurance, empowering users to work faster, tackle bigger projects and finish more tasks with fewer interruptions. With this battery, every project is within reach."

Engineered with tabless cell technology, the V20* ADVANCED™ Batteries are built to run cooler**, turning your tools into a true project powerhouse. Available in two sizes, a V20* 6Ah battery which delivers up to 3X the power and up to 3X the runtime*** and a V20* 3Ah battery which provides 96% more power and up to 50% more runtime†***.

The batteries can be used with the full line of existing CRAFTSMAN V20* tools, spanning over 100 different products from power tools to outdoor equipment. The CRAFTSMAN V20* 3Ah ADVANCED™ Battery (CMCB2103-CK, MSRP $139) and the V20* 6Ah ADVANCED™ Battery (CMCB2106-CK, MSRP $199) come paired with a V20* charger and are available now where CRAFTSMAN products are sold.  

Get a Free V20* ADVANCED™ Battery with CRAFTSMAN Trade-In Events

CRAFTSMAN is hosting Battery Trade-In Events at participating Lowe's and Ace Hardware locations nationwide, giving DIYers the chance to trade in a qualifying rechargeable power tool battery from any brand. In exchange, participants will receive one (1) FREE CRAFTSMAN V20* 3Ah ADVANCED™ Battery + Charger Starter Kit (a $139 value) and a $50 coupon from the participating retailer toward the purchase of CRAFTSMAN V20* products, while supplies last only. To find an event near you, visit craftsman.com/en-us/battery-trade-event. ⱡ

To learn more about the CRAFTSMAN V20* ADVANCED™ Batteries and the entire line of CRAFTSMAN® tools and solutions, visit www.CRAFTSMAN.com.

* 20V MAX* battery, max initial voltage (w/out a workload) is 20 volts. Nominal voltage is 18.
† vs. CMCB202 2Ah battery, more runtime based on 10 Amp discharge test, not in application.
** Less temperature rise during full discharge, not in application vs. CMCB202 2 Ah battery.

ⱡ Limit of (1) free CRAFTSMAN V20* 3Ah Battery + Charger Kit and (1) $50 coupon per person, per household. Coupons are subject to the terms and conditions contained on the coupons. Supply of free CRAFTSMAN V20* 3Ah Battery + Charger Kit and $50 coupon is limited and will be provided on a first-come, first-served basis only. Dates, times and locations of in-store events at the participating retailers are subject to change. Additional restrictions apply. All federal, state and local laws and regulations apply. Void where prohibited.

About CRAFTSMAN

CRAFTSMAN® is the most trusted and recommended brand in Tools and Outdoor by DIYers±. With solutions for the home, yard and garage, CRAFTSMAN is committed to empowering DIYers at every stage of their journey. Crafted with the same innovation and expertise homeowners have come to expect and love, CRAFTSMAN is here to help DIYers BUILD ON™. For more information, visit www.craftsman.com or follow CRAFTSMAN on Facebook and Instagram.

± Rated among 25 leading competitive brands, based on an online national survey of 261 DIY tool and residential outdoor power equipment owners ages 18+, conducted in 10/2024.

About Stanley Black & Decker
Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 43,500 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world-class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X.

SOURCE CRAFTSMAN

A month has gone by since the last earnings report for Stanley Black & Decker (SWK - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

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

Stanley Black's Q1 Earnings Beat Estimates, Revenues Rise Y/YStanley Black reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.

Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.

Segmental DiscussionEffective from the first quarter of 2025, it has renamed the Industrial segment as the Engineered Fastening segment. It had no impact on the company's consolidated financial statements or segment results.

Revenues from the company’s primary segment, Tools & Outdoor, totaled $3.34 billion, which increased 2% from the year-ago quarter. However, the segment’s organic revenues decreased 1%. Our estimate was $3.29 billion.

Revenues from the Engineered Fastening segment grossed $511 million, up 10% year over year. The segment’s organic revenues increased 7%. Our estimate was $459.3 million.

Margin ProfileStanley Black’s cost of sales was up 2.5% year over year to $2.69 billion. The gross profit increased 3.3% year over year to $1.16 billion. The gross margin increased 20 basis points (bps) year over year to 30.1%.

Selling, general and administrative expenses increased 2% year over year to $884.0 million. Adjusted EBITDA was $354.7 million, indicating a year-over-year decrease of 2%. The margin decreased 50 bps to 9.2%.

Balance Sheet and Cash FlowWhile exiting the first quarter, Stanley Black had cash and cash equivalents of $333.7 million compared with $280.1 million at the end of fourth-quarter 2025. The long-term debt balance was $4.70 billion, in line with the figure reported at the end of fourth-quarter 2025.

In the first three months of 2026, net cash used for operating activities was $388.8 million compared with $420 million used in the year-ago period. Capital and software expenditures totaled $58.5 million, down from $65 million reported in the year-ago period. Free cash flow (before dividends) was ($447.3) million compared with ($485.0) million a year ago.

In the first three months of 2026, the company paid out dividends worth $126 million to its shareholders, up 1.2% from the year-ago period.

2026 GuidanceStanley Black updated its 2026 guidance. The company now anticipates earnings to be $4.15-$5.35 per share compared with $3.15-$4.35 expected earlier. Adjusted earnings are projected to be $4.90-$5.70 per share. The company targets to generate annual free cash flow (non-GAAP) of $700-$900 million, increasing 16% at the midpoint.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

VGM ScoresCurrently, Stanley Black & Decker 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Stanley Black & Decker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

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.

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 ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

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 +23.7% 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.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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.

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: Stanley Black & Decker (SWK - Free Report) Headquartered in New Britain, CT, Stanley Black & Decker, Inc. manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services.

SWK 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 14.76; value investors should take notice.

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 $5.32 per share. SWK also boasts an average earnings surprise of +61.6%.

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

Key Takeaways Stanley Black's aerospace market delivered 31% organic growth in first-quarter 2026.SWK's automotive business posted 4% organic growth, helping segment organic revenues rise 7%.Stanley Black completed a cost-reduction program that generated about $2.1B in pre-tax run rate savings. Stanley Black & Decker, Inc. (SWK - Free Report) has been witnessing solid growth in the Engineered Fastening segment, driven by persistent strength across the aerospace market. The aerospace market continued its strong trajectory and generated 31% organic growth in the first quarter of 2026.

Solid momentum in the automotive business, driven by a strong demand environment in North America and healthy global fastener system sales across auto OEM markets, bodes well. The business posted 4% organic growth in first-quarter 2026. However, these gains were partially offset by lower volumes in the industrial market. Nevertheless, the segment’s organic revenues grew 7% in the quarter on a year-over-year basis. For 2026, the company expects the segment’s revenues to grow at a low-to-mid single-digit range, supported by operational improvements.

The company also completed its multi-year global cost-reduction program, having generated roughly $2.1 billion in pre-tax run-rate savings. Approximately $1.5 billion of savings came from core supply-chain initiatives, including operational excellence, material productivity and complexity reduction. These actions continue to support profitability and operational efficiency across its segments.

Segment Snapshot of SWK’s PeersRBC Bearings Incorporated (RBC - Free Report) is witnessing strength in the Industrial segment (revenues increased 5.5% year over year in the fourth quarter of fiscal 2026). Stable demand for its highly engineered bearings and precision components in food & beverage, aggregate & cement, grain, semiconductor and warehousing markets bodes well for RBC’s segment.

IDEX Corporation (IEX - Free Report) is benefiting from strength in the Fluid & Metering Technologies (FMT) An increase in demand for products across the municipal water end market has been proving beneficial for the IDEX’s FMT segment. Higher demand for mining application solutions also bodes well for the segment.

SWK’s Price Performance, Valuation and EstimatesShares of Stanley Black have gained 7% in the past month against the industry’s decline of 1%.

Image Source: Zacks Investment Research

From a valuation standpoint, SWK is trading at a forward price-to-earnings ratio of 14.64X, below the industry’s average of 16.02X. Stanley Black carries a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SWK’s 2026 earnings has increased 1.9% over the past 60 days.

Image Source: Zacks Investment Research

Stanley Black currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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.

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