Commerce Bancshares (CBSH) Margin Improvements Support Defensive Outlook Despite High Valuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 18 2025
0mins
Should l Buy CBSH?
Source: Yahoo Finance
Earnings and Profit Margins: Commerce Bancshares (CBSH) reported a 12.5% increase in earnings over the past year, with net profit margins rising to 33%, indicating strong operational performance compared to regional peers.
Valuation and Market Position: Despite strong profitability, CBSH shares trade at a premium on a price-to-earnings basis relative to peers, while being considered undervalued based on discounted cash flow estimates, creating a tension between market caution and potential upside for investors.
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Analyst Views on CBSH
Wall Street analysts forecast CBSH stock price to rise
6 Analyst Rating
0 Buy
6 Hold
0 Sell
Hold
Current: 53.900
Low
55.00
Averages
61.83
High
71.00
Current: 53.900
Low
55.00
Averages
61.83
High
71.00
About CBSH
Commerce Bancshares, Inc. is a regional bank holding company offering banking, payment solutions, wealth management and securities brokerage through its subsidiaries. The Company’s subsidiary, Commerce Bank (the Bank), operates full-service banking facilities across the Midwest, including the St. Louis and Kansas City metropolitan areas, Springfield, Central Missouri, Central Illinois, Wichita, Tulsa, Oklahoma City, and Denver. It also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids and wealth offices in Dallas, Houston, Naples, Arizona and South Carolina. Its segments include Commercial, Consumer, and Wealth. The Commercial segment provides corporate lending, leasing, and international services, along with business and governmental deposit products and commercial cash management services. The Consumer segment consists of various consumer loan and deposit products offered through its retail branch networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Commerce Bancshares Declares Quarterly Dividend Increase
- Dividend Increase: Commerce Bancshares announced a quarterly dividend of $0.275 per share, reflecting a 5% increase from the previous $0.262, marking the 58th consecutive year of dividend growth, which underscores the company's strong profitability and commitment to shareholders.
- Dividend Payment Date: The dividend is set to be paid on March 24, 2026, to shareholders of record as of March 6, 2026, ensuring timely returns for investors and bolstering investor confidence.
- Asset Scale: As of December 31, 2025, Commerce Bancshares reported total assets of $32.9 billion, and as a regional bank holding company, its robust asset base supports ongoing dividend payments.
- Acquisition Expansion: The company completed its acquisition of FineMark Holdings, Inc. on January 1, 2026, enhancing its private banking and wealth management presence in Florida while adding wealth offices in Arizona and South Carolina, demonstrating its strategic intent to expand market reach.
See More
Commerce Bancshares Declares Quarterly Dividend Increase
- Dividend Increase: Commerce Bancshares announced an increase in its quarterly dividend from $0.262 to $0.275 per share, representing a 5% rise and marking the 58th consecutive year of dividend growth, reflecting the company's strong profitability and commitment to shareholders.
- Dividend Payment Date: The dividend is set to be paid on March 24, 2026, to shareholders of record as of March 6, 2026, ensuring timely returns for investors and enhancing their confidence in the company's financial stability.
- Asset Size: With $32.9 billion in assets, Commerce Bancshares operates as a regional bank holding company, offering a comprehensive range of banking, payment solutions, and wealth management services, showcasing its robust position in the financial services sector.
- Business Expansion: The acquisition of FineMark Holdings, Inc. enhances Commerce's private banking and wealth management presence in Florida while adding wealth offices in Arizona and South Carolina, further expanding its market reach and service capabilities.
See More
Commerce Bancshares (CBSH) Reports Q4 Net Income of $140.66 Million, Exceeding Expectations
- Net Income Growth: Commerce Bancshares reported a net income of $140.66 million for Q4, translating to $1.01 per share, an increase from $136.11 million and $0.96 per share in the prior year, indicating sustained profitability improvements.
- Interest Income Rise: Net interest income grew to $283.15 million from $266.65 million last year, reflecting enhanced profitability in an improving interest rate environment, which further solidifies the company's market position.
- Total Revenue Increase: Total revenue for the quarter reached $449.36 million, up from $422.08 million year-over-year and exceeding the consensus estimate of $442.62 million, demonstrating the company's success in revenue diversification.
- Credit Loss Provision: The provision for credit losses was $15.99 million, compared to $13.51 million in the same period last year, indicating the company's cautious approach towards potential credit risks aimed at maintaining financial stability.
See More
Commerce Bancshares Q4 EPS Beats Expectations with 6.5% Revenue Growth
- Earnings Performance: Commerce Bancshares reported a Q4 GAAP EPS of $1.01, beating expectations by $0.02, indicating stable profitability despite cautious market sentiment regarding future growth.
- Revenue Growth: The company achieved Q4 revenue of $449.36 million, reflecting a 6.5% year-over-year increase and surpassing market expectations by $6.74 million, demonstrating positive progress in revenue diversification.
- Net Interest Income: Net interest income reached $283.2 million, a $3.7 million increase from the prior quarter, although the net yield on interest-earning assets decreased to 3.60%, highlighting the impact of the interest rate environment on revenue.
- Return Metrics: The return on average assets for Q4 was 1.73%, with a return on average equity of 14.70% and an efficiency ratio of 56.2%, indicating effective resource allocation and cost control within the company.
See More
Commerce Bancshares (CBSH) to Announce Q4 Earnings on January 22 with EPS Estimate of $1.00
- Earnings Announcement Schedule: Commerce Bancshares is set to announce its Q4 earnings on January 22 before market open, with a consensus EPS estimate of $1.00, reflecting a 1.0% year-over-year decline that may impact investor sentiment.
- Revenue Expectations: The anticipated revenue for Q4 is $442.62 million, representing a 4.9% year-over-year increase, indicating the company's resilience in revenue growth despite economic challenges.
- Performance Beat Record: Over the past year, Commerce Bancshares has beaten EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating stability in profitability and market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 5 downward revisions, while revenue estimates have experienced 1 upward revision and 3 downward revisions, reflecting analysts' mixed and cautious outlook on the company's future performance.
See More
Commerce Bancshares Completes FineMark Acquisition, Reaches $36 Billion in Assets
- Acquisition Completion: Commerce Bancshares has successfully completed its acquisition of FineMark Holdings, resulting in approximately $36 billion in total assets, which significantly strengthens its position in the private banking and wealth management sectors.
- Market Expansion: This acquisition not only enhances Commerce's existing operations in Florida but also adds new wealth management offices in Arizona and South Carolina, which is expected to drive future client growth and revenue increases.
- Integration Plans: FineMark National Bank & Trust will merge into Commerce Bank and continue to operate as FineMark Bank & Trust, with operational system integration planned for the second half of 2026 to ensure continuity of client services.
- Leadership Changes: Joseph Catti will serve as Chairman of Commerce Trust while continuing to lead the FineMark Bank & Trust division, thereby reinforcing the company's leadership and competitive edge in the wealth management space.
See More
Commerce Bancshares Declares Quarterly Dividend Increase
- Dividend Increase: Commerce Bancshares announced a quarterly dividend of $0.275 per share, reflecting a 5% increase from the previous $0.262, marking the 58th consecutive year of dividend growth, which underscores the company's strong profitability and commitment to shareholders.
- Dividend Payment Date: The dividend is set to be paid on March 24, 2026, to shareholders of record as of March 6, 2026, ensuring timely returns for investors and bolstering investor confidence.
- Asset Scale: As of December 31, 2025, Commerce Bancshares reported total assets of $32.9 billion, and as a regional bank holding company, its robust asset base supports ongoing dividend payments.
- Acquisition Expansion: The company completed its acquisition of FineMark Holdings, Inc. on January 1, 2026, enhancing its private banking and wealth management presence in Florida while adding wealth offices in Arizona and South Carolina, demonstrating its strategic intent to expand market reach.
See More
Commerce Bancshares Declares Quarterly Dividend Increase
- Dividend Increase: Commerce Bancshares announced an increase in its quarterly dividend from $0.262 to $0.275 per share, representing a 5% rise and marking the 58th consecutive year of dividend growth, reflecting the company's strong profitability and commitment to shareholders.
- Dividend Payment Date: The dividend is set to be paid on March 24, 2026, to shareholders of record as of March 6, 2026, ensuring timely returns for investors and enhancing their confidence in the company's financial stability.
- Asset Size: With $32.9 billion in assets, Commerce Bancshares operates as a regional bank holding company, offering a comprehensive range of banking, payment solutions, and wealth management services, showcasing its robust position in the financial services sector.
- Business Expansion: The acquisition of FineMark Holdings, Inc. enhances Commerce's private banking and wealth management presence in Florida while adding wealth offices in Arizona and South Carolina, further expanding its market reach and service capabilities.
See More
Commerce Bancshares (CBSH) Reports Q4 Net Income of $140.66 Million, Exceeding Expectations
- Net Income Growth: Commerce Bancshares reported a net income of $140.66 million for Q4, translating to $1.01 per share, an increase from $136.11 million and $0.96 per share in the prior year, indicating sustained profitability improvements.
- Interest Income Rise: Net interest income grew to $283.15 million from $266.65 million last year, reflecting enhanced profitability in an improving interest rate environment, which further solidifies the company's market position.
- Total Revenue Increase: Total revenue for the quarter reached $449.36 million, up from $422.08 million year-over-year and exceeding the consensus estimate of $442.62 million, demonstrating the company's success in revenue diversification.
- Credit Loss Provision: The provision for credit losses was $15.99 million, compared to $13.51 million in the same period last year, indicating the company's cautious approach towards potential credit risks aimed at maintaining financial stability.
See More
Commerce Bancshares Q4 EPS Beats Expectations with 6.5% Revenue Growth
- Earnings Performance: Commerce Bancshares reported a Q4 GAAP EPS of $1.01, beating expectations by $0.02, indicating stable profitability despite cautious market sentiment regarding future growth.
- Revenue Growth: The company achieved Q4 revenue of $449.36 million, reflecting a 6.5% year-over-year increase and surpassing market expectations by $6.74 million, demonstrating positive progress in revenue diversification.
- Net Interest Income: Net interest income reached $283.2 million, a $3.7 million increase from the prior quarter, although the net yield on interest-earning assets decreased to 3.60%, highlighting the impact of the interest rate environment on revenue.
- Return Metrics: The return on average assets for Q4 was 1.73%, with a return on average equity of 14.70% and an efficiency ratio of 56.2%, indicating effective resource allocation and cost control within the company.
See More
Commerce Bancshares (CBSH) to Announce Q4 Earnings on January 22 with EPS Estimate of $1.00
- Earnings Announcement Schedule: Commerce Bancshares is set to announce its Q4 earnings on January 22 before market open, with a consensus EPS estimate of $1.00, reflecting a 1.0% year-over-year decline that may impact investor sentiment.
- Revenue Expectations: The anticipated revenue for Q4 is $442.62 million, representing a 4.9% year-over-year increase, indicating the company's resilience in revenue growth despite economic challenges.
- Performance Beat Record: Over the past year, Commerce Bancshares has beaten EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating stability in profitability and market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 5 downward revisions, while revenue estimates have experienced 1 upward revision and 3 downward revisions, reflecting analysts' mixed and cautious outlook on the company's future performance.
See More
Commerce Bancshares Completes FineMark Acquisition, Reaches $36 Billion in Assets
- Acquisition Completion: Commerce Bancshares has successfully completed its acquisition of FineMark Holdings, resulting in approximately $36 billion in total assets, which significantly strengthens its position in the private banking and wealth management sectors.
- Market Expansion: This acquisition not only enhances Commerce's existing operations in Florida but also adds new wealth management offices in Arizona and South Carolina, which is expected to drive future client growth and revenue increases.
- Integration Plans: FineMark National Bank & Trust will merge into Commerce Bank and continue to operate as FineMark Bank & Trust, with operational system integration planned for the second half of 2026 to ensure continuity of client services.
- Leadership Changes: Joseph Catti will serve as Chairman of Commerce Trust while continuing to lead the FineMark Bank & Trust division, thereby reinforcing the company's leadership and competitive edge in the wealth management space.
See More
