Commerce Bancshares Inc Earnings
Commerce Bancshares, Inc. has reported a solid third quarter performance in 2025, showcasing resilience despite the challenging financial environment. The bank announced earnings of $1.06 per share, a slight increase from $1.01 per share in the same quarter last year, though down from $1.14 in the second quarter of 2025. The net income for this quarter stood at $141.5 million, up year-over-year from $138.0 million, but down from the previous quarter's $152.5 million. These results underline the bank’s strength in balancing profitability and growth amid volatile market dynamics.
Commerce Bancshares Inc Results
The following table presents the key financial metrics for Commerce Bancshares Inc:
| Metric | Q3 2025 | Q2 2025 | Q3 2024 | Year-Over-Year Change | Quarter-Over-Quarter Change |
|---|---|---|---|---|---|
| Earnings Per Share (EPS) | $1.06 | $1.14 | $1.01 | +4.95% | -7.02% |
| Net Income | $141.5M | $152.5M | $138.0M | +2.54% | -7.21% |
| Return on Average Assets (ROAA) | 1.78% | 1.81% | 1.78% | 0.00% | -0.03% |
| Return on Average Equity (ROAE) | 15.26% | 16.15% | 15.00% | +0.26% | -0.89% |
These figures indicate a solid year-over-year improvement in earnings, despite a notable decrease from the previous quarter, primarily due to increased provisions for credit losses and reduced non-interest income.
Revenue Breakdown
Below is a breakdown of the company’s revenue performance by major segments:
| Revenue Segment | Q3 2025 ($M) | Q2 2025 ($M) | Q3 2024 ($M) | Y-o-Y Change | Q-o-Q Change |
|---|---|---|---|---|---|
| Net Interest Income | $279.5M | $280.2M | — | — | -0.25% |
| Non-Interest Income | $161.5M | $165.6M | $159.0M | +1.57% | -2.47% |
| Total Revenue | $441.0M | — | — | — | — |
Segment Analysis
- Net Interest Income : While the net interest income remained stable with a slight decrease from the last quarter, it benefited from Commerce Bancshares' balanced asset portfolio despite fluctuating interest rates.
- Non-Interest Income : The rise in non-interest income year-over-year was supported by increased trust fees, deposit account fees, and brokerage fees, though it saw a decline from the prior quarter primarily due to lower gains on asset sales.
Key Developments
Significant developments during the quarter include steady loan balances with average loan balances totaling $17.5 billion, a robust fee income contributing 36.6% to total revenue, and a strong credit quality with non-accrual loans at just 0.09% of total loans. Importantly, Commerce Bancshares is poised for future growth with its strategic acquisition of FineMark Holdings, Inc., expected to close on January 1, 2026. This acquisition represents a key milestone in the company's strategy to expand its footprint and harness synergies across geographies.
Comments from Company Officers
John Kemper, CEO, highlighted the enduring strength of Commerce Bancshares' diversified model and the disciplined management of expenses. Mr. Kemper stated, "Commerce delivered another strong quarter, underscoring the resilience of our diversified operating model and the dedication of our talented team. Our third quarter results reflect steady loan balances, robust fee income, and disciplined expense management, all of which contributed to another period of high profitability."
Kemper remains optimistic about the company's trajectory, emphasizing their "strong capital and liquidity positions" and the forthcoming acquisition of FineMark as "a strategic milestone after years of relationship building and months of integration planning by our dedicated teams."
Dividends and Share Repurchases
Commerce Bancshares declared a cash dividend of $0.275 per common share this quarter, marking a 7% increase over the same period last year. The company also repurchased 418,131 shares of treasury stock at an average price of $60.32, showcasing its commitment to returning value to shareholders and maintaining confidence in its growth prospects.
Commerce Bancshares Inc Stock Forecast
Based on the fundamental analysis of Commerce Bancshares' current financial performance and strategic initiatives, a projected stock price range could be developed. Considering the company's performance, strategic acquisitions, and potential market conditions:
- High Projection : $75, assuming successful integration of acquisitions and favorable market conditions, driving enhanced revenue and margin growth.
- Low Projection : $55, contemplating potential risks such as further interest rate volatility or economic downturns impacting credit quality and loan demand.
Overall, Commerce Bancshares, Inc. demonstrates strong fiscal efficiency and robust asset management, positioning it well for continued profitability, even in a dynamic interest rate environment. The strategic acquisition of FineMark further cements its growth trajectory while expanding regional influence and diversifying income streams—key factors for prospective investors to consider.
