Commerce Bancshares reported third-quarter net income of $155.0 million, down from $159.8 million in the second quarter but up from $141.5 million a year earlier. Earnings per share came in at $1.08, compared with $1.10 in the prior quarter and $1.01 in the same period last year.
Revenue for the quarter was $494.3 million, down $4.6 million from the second quarter. Net interest income fell to $308.9 million from $315.1 million, while non-interest income rose to $185.5 million from $183.8 million. Within fee income, trust fees increased to $73.4 million from $71.5 million a quarter earlier, and bank card fees rose to $49.2 million from $48.1 million.
Non-interest expense dropped to $285.9 million from $297.1 million in the second quarter. The efficiency ratio improved to 56.69% from 58.40%, while return on average assets eased to 1.79% from 1.84% and return on average equity fell to 14.17% from 14.70%.
Average loans increased to $20.69 billion from $20.51 billion in the second quarter, a gain of $172.3 million. Ending loans rose to $21.21 billion from $20.83 billion. Business loans climbed to $7.26 billion from $7.12 billion, real estate business loans increased to $4.23 billion from $4.06 billion, and consumer loans rose to $2.71 billion from $2.53 billion.
Average deposits declined to $27.25 billion from $27.88 billion, a drop of $361.6 million. Ending deposits also fell to $27.25 billion from $27.88 billion. Interest-bearing deposits decreased to $16.74 billion from $17.32 billion, while non-interest-bearing deposits edged up to $8.22 billion from $8.17 billion.
Total assets declined to $34.82 billion from $35.27 billion at June 30. Investment securities fell to $8.25 billion from $8.74 billion, and average available-for-sale debt securities dropped by $473.7 million to $8.2 billion.
The company repurchased about 1.9 million shares during the quarter at an average price of $58.84. Shares outstanding at quarter-end were 142.0 million, down from 143.9 million at June 30. Book value per share fell to $29.68 from $30.45, while market value per share declined to $54.74 from $57.75.
Credit costs remained low. Net loan charge-offs were 0.20% of average loans, up slightly from 0.19% in the prior quarter. The allowance for credit losses on loans increased to $197.8 million from $195.4 million, though the allowance ratio edged down to 0.93% from 0.94%.
For the first nine months of 2026, net income reached $456.4 million, up from $425.6 million a year earlier. EPS rose to $3.14 from $3.03. Revenue for the nine-month period increased to $1.47 billion from $1.31 billion, while non-interest income climbed to $545.1 million from $486.1 million and net interest income rose to $923.8 million from $828.7 million. As a result of these announcements, the company's shares have moved -1.04% on the market, and are now trading at a price of $55.11. For the full picture, make sure to review COMMERCE BANCSHARES INC /MO/'s 8-K report.
