Commerce Bancshares beats Q2 expectations as net interest income hits record

Published 16/07/2025, 11:30
 Commerce Bancshares beats Q2 expectations as net interest income hits record

KANSAS CITY - Commerce Bancshares, Inc. (NASDAQ:CBSH) reported second quarter earnings of $1.14 per share, exceeding analyst expectations of $1.04, as the bank delivered strong performance across multiple business segments. Revenue reached $445.76 million, surpassing the consensus estimate of $435.21 million.

The Missouri-based regional bank posted net income of $152.5 million for the quarter ended June 30, 2025, representing a 9.2% increase from $139.6 million in the same quarter last year and a 15.9% jump from $131.6 million in the first quarter of 2025. The company’s return on average assets was 1.95%, while return on average equity reached 17.40%.

Net interest income hit a record $280.1 million, an $11 million increase over the prior quarter, with the net yield on interest-earning assets rising 14 basis points to 3.70%. Non-interest income totaled $165.6 million, up 8.8% YoY, and represented 37.2% of total revenue.

"Commerce delivered a strong financial performance in the second quarter, one that reflected our diversified operating model and the talented team behind it," said John Kemper (NYSE:KMPR), Chief Executive Officer. "Our financial results were supported by loan growth, strong fee income, low credit costs and continued disciplined expense management, all key ingredients in our steady profit growth over time."

Average loan balances grew to $17.5 billion, increasing $253.1 million or 1.5% over the prior quarter. Credit quality remained excellent with non-accrual loans at just 0.11% of total loans. The ratio of annualized net loan charge-offs to average loans was 0.22% in the current quarter compared to 0.25% in the prior quarter.

In June, Commerce announced plans to acquire FineMark Holdings, a bank and trust company headquartered in Fort Myers, Florida. The acquisition is expected to close on January 1, 2026, and will expand Commerce’s market reach and capabilities.

The bank maintained its strong capital position with a Tier I leverage ratio of 12.75%. During the quarter, Commerce paid a cash dividend of $0.275 per share, representing a 7.0% increase over the same period last year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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