Commerce Bancshares, Inc. announced earnings of $1.06 per share for the three months ended September 30, 2025, compared to $1.01 per share in the same quarter last year and $1.14 per share in the second quarter of 2025. Net income for the third quarter of 2025 amounted to $141.5 million, compared to $138.0 million in the third quarter of 2024 and $152.5 million in the prior quarter.
For the nine months ended September 30, 2025, earnings per share totaled $3.18, compared to $2.86 for the first nine months of 2024. Net income amounted to $425.6 million for the nine months ended September 30, 2025, compared to $390.2 million in the comparable period last year. For the year to date, the return on average assets was 1.81%, and the return on average equity was 16.15%.
In making this announcement, John Kemper, Chief Executive Officer, said, "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.
"Our return on average assets remained solid at 1.78%, and our return on average equity was 15.26%. We maintained excellent credit quality, with non-accrual loans at just .09% of total loans, and added a modest reserve to the allowance for credit losses. Our capital and liquidity positions remain strong, supporting our ability to serve customers and invest in future growth.
"Net interest income was $279.5 million, reflecting the continued benefits of our strong balance sheet, even as the interest rate environment remains dynamic. Non-interest income was $161.5 million, led by growth in trust and deposit fees, and comprised 36.6% of total revenue."
Mr. Kemper continued, "We look forward to welcoming FineMark's team, clients, and shareholders to Commerce on January 1, 2026, our expected close date, which will mark a strategic milestone after years of relationship building and months of integration planning by our dedicated teams.
"As we continue to build on our momentum, our franchise is well-positioned to execute on our long-term strategies, deliver value to our shareholders, and support our customers and communities."
Third Quarter 2025 Financial Highlights:
- Net interest income was $279.5 million, a $690 thousand decrease compared to the prior quarter. The net yield on interest earning assets decreased six basis points to 3.64%.
- Non-interest income totaled $161.5 million, an increase of $2.5 million, or 1.6%, over the same quarter last year.
- Trust fees grew $3.7 million, or 6.8%, compared to the same period last year, mostly due to higher private client fees.
- Non-interest expense totaled $244.0 million, an increase of $6.4 million, or 2.7%, over the same quarter last year.
- Average loan balances totaled $17.5 billion, flat compared to the prior quarter.
- Total average available for sale debt securities decreased $214.5 million compared to the prior quarter to $8.9 billion, at fair value.
- Total average deposits decreased $140.1 million, or .6%, compared to the prior quarter. The average rate paid on interest bearing deposits increased four basis points to 1.71%, compared to the prior quarter.
- The ratio of annualized net loan charge-offs to average loans was .23% in the current quarter compared to .22% in the prior quarter.
- The allowance for credit losses on loans increased $10.4 million during the third quarter of 2025 to $175.7 million, and the ratio of the allowance for credit losses on loans to total loans was .99% at September 30, 2025, compared to .94% at June 30, 2025.
- Total assets on September 30, 2025 were $32.3 billion, flat compared to the prior quarter.
- For the quarter, the return on average assets was 1.78%, the return on average equity was 15.26%, and the efficiency ratio was 55.3%.
Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, investment management and securities brokerage. One of its subsidiaries, Commerce Bank, leverages 160 years of proven strength and experience to help individuals and businesses solve financial challenges. In addition to offering payment solutions across the U.S., Commerce Bank currently 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. Beyond the Midwest, Commerce also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids and wealth offices in Dallas, Houston, and Naples. Commerce delivers high-touch service and sophisticated financial solutions at regional branches, commercial and wealth offices, ATMs, online, mobile and through a 24/7 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 |
For the Nine Months
|
||||||||
(Unaudited) (Dollars in thousands, except per share data) |
|
Sep. 30,
|
Jun. 30,
|
Sep. 30,
|
Sep. 30,
|
Sep. 30,
|
|||||
FINANCIAL SUMMARY |
|
|
|
|
|
|
|||||
Net interest income |
|
$279,457 |
|
$280,147 |
|
$262,351 |
|
$828,706 |
|
$773,599 |
|
Non-interest income |
|
161,511 |
|
165,613 |
|
159,025 |
|
486,073 |
|
460,117 |
|
Total revenue |
|
440,968 |
|
445,760 |
|
421,376 |
|
1,314,779 |
|
1,233,716 |
|
Investment securities gains (losses) |
|
7,885 |
|
437 |
|
3,872 |
|
731 |
|
6,846 |
|
Provision for credit losses |
|
20,061 |
|
5,597 |
|
9,140 |
|
40,145 |
|
19,395 |
|
Non-interest expense |
|
244,018 |
|
244,437 |
|
237,600 |
|
726,831 |
|
715,511 |
|
Income before taxes |
|
184,774 |
|
196,163 |
|
178,508 |
|
548,534 |
|
505,656 |
|
Income taxes |
|
41,152 |
|
42,400 |
|
38,245 |
|
120,516 |
|
108,499 |
|
Non-controlling interest expense (income) |
|
2,104 |
|
1,284 |
|
2,256 |
|
2,429 |
|
6,934 |
|
Net income attributable to Commerce Bancshares, Inc. |
$141,518 |
|
$152,479 |
|
$138,007 |
|
$425,589 |
|
$390,223 |
|
|
Earnings per common share: |
|
|
|
|
|
|
|||||
Net income — basic |
|
$1.06 |
|
$1.14 |
|
$1.02 |
|
$3.18 |
|
$2.87 |
|
Net income — diluted |
|
$1.06 |
|
$1.14 |
|
$1.01 |
|
$3.18 |
|
$2.86 |
|
Effective tax rate |
|
22.53 |
% |
21.76 |
% |
21.70 |
% |
22.07 |
% |
21.76 |
% |
Fully-taxable equivalent net interest income |
|
$281,770 |
|
$282,428 |
|
$264,638 |
|
$835,614 |
|
$780,528 |
|
Average total interest earning assets (1) |
|
$30,732,665 |
|
$30,629,715 |
|
$30,051,845 |
|
$30,753,879 |
|
$30,144,221 |
|
Diluted wtd. average shares outstanding |
|
132,463,271 |
|
132,582,673 |
|
134,394,825 |
|
132,703,659 |
|
135,024,776 |
|
RATIOS |
|
|
|
|
|
|
|||||
Average loans to deposits (2) |
|
70.61 |
% |
70.22 |
% |
69.93 |
% |
70.08 |
% |
70.17 |
% |
Return on total average assets |
|
1.78 |
|
1.95 |
|
1.80 |
|
1.81 |
|
1.71 |
|
Return on average equity (3) |
|
15.26 |
|
17.40 |
|
16.81 |
|
16.15 |
|
16.92 |
|
Non-interest income to total revenue |
|
36.63 |
|
37.15 |
|
37.74 |
|
36.97 |
|
37.30 |
|
Efficiency ratio (4) |
|
55.26 |
|
54.77 |
|
56.31 |
|
55.21 |
|
57.92 |
|
Net yield on interest earning assets |
|
3.64 |
|
3.70 |
|
3.50 |
|
3.63 |
|
3.46 |
|
EQUITY SUMMARY |
|
|
|
|
|
|
|||||
Cash dividends per share |
|
$.275 |
|
$.275 |
|
$.257 |
|
$.825 |
|
$.771 |
|
Cash dividends on common stock |
|
$36,733 |
|
$36,761 |
|
$34,794 |
|
$110,360 |
|
$104,894 |
|
Book value per share (5) |
|
$28.51 |
|
$27.43 |
|
$25.62 |
|
|
|
||
Market value per share (5) |
|
$59.76 |
|
$62.17 |
|
$56.57 |
|
|
|
||
High market value per share |
|
$66.34 |
|
$66.14 |
|
$62.72 |
|
|
|
||
Low market value per share |
|
$57.92 |
|
$52.69 |
|
$52.27 |
|
|
|
||
Common shares outstanding (5) |
|
133,021,127 |
|
133,419,701 |
|
134,797,835 |
|
|
|
||
Tangible common equity to tangible assets (6) |
|
11.27 |
% |
10.86 |
% |
10.47 |
% |
|
|
||
Tier I leverage ratio |
|
12.95 |
% |
12.75 |
% |
12.31 |
% |
|
|
||
OTHER QTD INFORMATION |
|
|
|
|
|
|
|||||
Number of bank/ATM locations |
|
239 |
|
239 |
|
244 |
|
|
|
||
Full-time equivalent employees |
|
4,666 |
|
4,658 |
|
4,711 |
|
|
|
||
(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 2024. |
|||||||||||
COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
(Unaudited) (In thousands, except per share data) |
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
Sep. 30,
|
Jun. 30,
|
Mar. 31,
|
Dec. 31,
|
Sep. 30,
|
Sep. 30,
|
Sep. 30,
|
||||||||
Interest income |
|
$374,105 |
|
$371,636 |
|
$364,365 |
|
$369,405 |
|
$372,068 |
|
$1,110,106 |
|
$1,100,152 |
|
Interest expense |
|
94,648 |
|
91,489 |
|
95,263 |
|
102,758 |
|
109,717 |
|
281,400 |
|
326,553 |
|
Net interest income |
|
279,457 |
|
280,147 |
|
269,102 |
|
266,647 |
|
262,351 |
|
828,706 |
|
773,599 |
|
Provision for credit losses |
|
20,061 |
|
5,597 |
|
14,487 |
|
13,508 |
|
9,140 |
|
40,145 |
|
19,395 |
|
Net interest income after credit losses |
259,396 |
|
274,550 |
|
254,615 |
|
253,139 |
|
253,211 |
|
788,561 |
|
754,204 |
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|||||||
Trust fees |
|
58,412 |
|
55,571 |
|
56,592 |
|
56,345 |
|
54,689 |
|
170,575 |
|
158,085 |
|
Bank card transaction fees |
|
45,551 |
|
46,362 |
|
45,593 |
|
47,807 |
|
47,570 |
|
137,506 |
|
141,977 |
|
Deposit account charges and other fees |
27,427 |
|
26,248 |
|
26,622 |
|
25,480 |
|
25,380 |
|
80,297 |
|
74,856 |
|
|
Capital market fees |
|
5,138 |
|
6,175 |
|
5,112 |
|
5,129 |
|
5,995 |
|
16,425 |
|
14,647 |
|
Consumer brokerage services |
|
6,698 |
|
5,383 |
|
4,785 |
|
4,636 |
|
4,619 |
|
16,866 |
|
13,505 |
|
Loan fees and sales |
|
3,465 |
|
3,419 |
|
3,404 |
|
2,874 |
|
3,444 |
|
10,288 |
|
10,016 |
|
Other |
|
14,820 |
|
22,455 |
|
16,841 |
|
13,165 |
|
17,328 |
|
54,116 |
|
47,031 |
|
Total non-interest income |
|
161,511 |
|
165,613 |
|
158,949 |
|
155,436 |
|
159,025 |
|
486,073 |
|
460,117 |
|
INVESTMENT SECURITIES GAINS (LOSSES), NET |
7,885 |
|
437 |
|
(7,591 |
) |
977 |
|
3,872 |
|
731 |
|
6,846 |
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits |
|
157,461 |
|
155,025 |
|
153,078 |
|
153,819 |
|
153,122 |
|
465,564 |
|
454,043 |
|
Data processing and software |
|
33,555 |
|
32,904 |
|
32,238 |
|
32,514 |
|
32,194 |
|
98,697 |
|
94,876 |
|
Net occupancy |
|
13,474 |
|
13,654 |
|
14,020 |
|
13,694 |
|
13,411 |
|
41,148 |
|
39,529 |
|
Professional and other services |
|
11,284 |
|
12,973 |
|
10,026 |
|
8,982 |
|
8,830 |
|
34,283 |
|
26,095 |
|
Marketing |
|
6,670 |
|
5,974 |
|
5,843 |
|
5,683 |
|
7,278 |
|
18,487 |
|
16,670 |
|
Equipment |
|
5,421 |
|
5,157 |
|
5,248 |
|
5,232 |
|
5,286 |
|
15,826 |
|
15,387 |
|
Supplies and communication |
|
4,837 |
|
4,962 |
|
5,046 |
|
4,948 |
|
4,963 |
|
14,845 |
|
14,343 |
|
Deposit Insurance |
|
3,074 |
|
3,312 |
|
3,744 |
|
3,181 |
|
2,930 |
|
10,130 |
|
13,301 |
|
Other |
|
8,242 |
|
10,476 |
|
9,133 |
|
7,665 |
|
9,586 |
|
27,851 |
|
41,267 |
|
Total non-interest expense |
|
244,018 |
|
244,437 |
|
238,376 |
|
235,718 |
|
237,600 |
|
726,831 |
|
715,511 |
|
Income before income taxes |
|
184,774 |
|
196,163 |
|
167,597 |
|
173,834 |
|
178,508 |
|
548,534 |
|
505,656 |
|
Less income taxes |
|
41,152 |
|
42,400 |
|
36,964 |
|
36,590 |
|
38,245 |
|
120,516 |
|
108,499 |
|
Net income |
|
143,622 |
|
153,763 |
|
130,633 |
|
137,244 |
|
140,263 |
|
428,018 |
|
397,157 |
|
Less non-controlling interest expense (income) |
2,104 |
|
1,284 |
|
(959 |
) |
1,136 |
|
2,256 |
|
2,429 |
|
6,934 |
|
|
Net income attributable to Commerce Bancshares, Inc. |
$141,518 |
|
$152,479 |
|
$131,592 |
|
$136,108 |
|
$138,007 |
|
$425,589 |
|
$390,223 |
|
|
Net income per common share — basic |
$1.06 |
|
$1.14 |
|
$0.98 |
|
$1.01 |
|
$1.02 |
|
$3.18 |
|
$2.87 |
|
|
Net income per common share — diluted |
$1.06 |
|
$1.14 |
|
$0.98 |
|
$1.01 |
|
$1.01 |
|
$3.18 |
|
$2.86 |
|
|
OTHER INFORMATION |
|
|
|
|
|
|
|
||||||||
Return on total average assets |
|
1.78 |
% |
1.95 |
% |
1.69 |
% |
1.73 |
% |
1.80 |
% |
1.81 |
% |
1.71 |
% |
Return on average equity (1) |
15.26 |
|
17.40 |
|
15.82 |
|
15.97 |
|
16.81 |
|
16.15 |
|
16.92 |
|
|
Efficiency ratio (2) |
|
55.26 |
|
54.77 |
|
55.61 |
|
55.77 |
|
56.31 |
|
55.21 |
|
57.92 |
|
Effective tax rate |
|
22.53 |
|
21.76 |
|
21.93 |
|
21.19 |
|
21.70 |
|
22.07 |
|
21.76 |
|
Net yield on interest earning assets |
3.64 |
|
3.70 |
|
3.56 |
|
3.49 |
|
3.50 |
|
3.63 |
|
3.46 |
|
|
Fully-taxable equivalent net interest income |
|
$281,770 |
|
$282,428 |
|
$271,416 |
|
$268,935 |
|
$264,638 |
|
$835,614 |
|
$780,528 |
|
(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) |
|
Sep. 30,
|
Jun. 30,
|
Sep. 30,
|
|||
ASSETS |
|
|
|
|
|||
Loans |
|
|
|
|
|||
Business |
|
$6,414,792 |
|
$6,328,684 |
|
$6,048,328 |
|
Real estate — construction and land |
|
1,433,652 |
|
1,405,398 |
|
1,381,607 |
|
Real estate — business |
|
3,745,000 |
|
3,757,778 |
|
3,586,999 |
|
Real estate — personal |
|
3,070,980 |
|
3,058,845 |
|
3,043,391 |
|
Consumer |
|
2,171,599 |
|
2,157,867 |
|
2,108,281 |
|
Revolving home equity |
|
364,241 |
|
364,429 |
|
342,376 |
|
Consumer credit card |
|
575,317 |
|
576,151 |
|
574,746 |
|
Overdrafts |
|
11,186 |
|
16,316 |
|
4,272 |
|
Total loans |
|
17,786,767 |
|
17,665,468 |
|
17,090,000 |
|
Allowance for credit losses on loans |
|
(175,671 |
) |
(165,260 |
) |
(160,839 |
) |
Net loans |
|
17,611,096 |
|
17,500,208 |
|
16,929,161 |
|
Loans held for sale |
|
2,538 |
|
3,592 |
|
1,707 |
|
Investment securities: |
|
|
|
|
|||
Available for sale debt securities |
|
8,998,586 |
|
8,915,779 |
|
9,167,681 |
|
Trading debt securities |
|
56,282 |
|
46,630 |
|
42,645 |
|
Equity securities |
|
53,193 |
|
54,511 |
|
57,115 |
|
Other securities |
|
227,430 |
|
219,906 |
|
216,543 |
|
Total investment securities |
|
9,335,491 |
|
9,236,826 |
|
9,483,984 |
|
Federal funds sold |
|
— |
|
— |
|
10 |
|
Securities purchased under agreements to resell |
|
850,000 |
|
850,000 |
|
475,000 |
|
Interest earning deposits with banks |
|
2,477,668 |
|
2,624,264 |
|
2,642,048 |
|
Cash and due from banks |
|
476,441 |
|
522,049 |
|
507,941 |
|
Premises and equipment — net |
|
483,000 |
|
477,401 |
|
469,986 |
|
Goodwill |
|
146,539 |
|
146,539 |
|
146,539 |
|
Other intangible assets — net |
|
13,329 |
|
13,333 |
|
13,722 |
|
Other assets |
|
892,586 |
|
910,035 |
|
823,494 |
|
Total assets |
|
$32,288,688 |
|
$32,284,247 |
|
$31,493,592 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|||
Deposits: |
|
|
|
|
|||
Non-interest bearing |
|
$7,489,645 |
|
$7,393,559 |
|
$7,396,153 |
|
Savings, interest checking and money market |
|
15,551,799 |
|
15,727,549 |
|
15,216,557 |
|
Certificates of deposit of less than $100,000 |
|
1,002,640 |
|
986,014 |
|
1,113,962 |
|
Certificates of deposit of $100,000 and over |
|
1,413,965 |
|
1,386,906 |
|
1,511,120 |
|
Total deposits |
|
25,458,049 |
|
25,494,028 |
|
25,237,792 |
|
Federal funds purchased and securities sold under agreements to repurchase |
|
2,473,065 |
|
2,596,461 |
|
2,182,229 |
|
Other borrowings |
|
9,270 |
|
15,049 |
|
10,201 |
|
Other liabilities |
|
555,257 |
|
518,595 |
|
609,831 |
|
Total liabilities |
|
28,495,641 |
|
28,624,133 |
|
28,040,053 |
|
Stockholders' equity: |
|
|
|
|
|||
Common stock |
|
676,054 |
|
676,054 |
|
655,322 |
|
Capital surplus |
|
3,390,526 |
|
3,386,218 |
|
3,154,300 |
|
Retained earnings |
|
360,723 |
|
255,938 |
|
338,512 |
|
Treasury stock |
|
(121,972 |
) |
(96,589 |
) |
(139,149 |
) |
Accumulated other comprehensive income (loss) |
|
(533,666 |
) |
(581,049 |
) |
(576,904 |
) |
Total stockholders' equity |
|
3,771,665 |
|
3,640,572 |
|
3,432,081 |
|
Non-controlling interest |
|
21,382 |
|
19,542 |
|
21,458 |
|
Total equity |
|
3,793,047 |
|
3,660,114 |
|
3,453,539 |
|
Total liabilities and equity |
|
$32,288,688 |
|
$32,284,247 |
|
$31,493,592 |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS |
||||||||||
(Unaudited) (In thousands) |
For the Three Months Ended |
|||||||||
Sep. 30,
|
Jun. 30,
|
Mar. 31,
|
Dec. 31,
|
Sep. 30,
|
||||||
ASSETS: |
|
|
|
|
|
|||||
Loans: |
|
|
|
|
|
|||||
Business |
$6,230,019 |
|
$6,247,252 |
|
$6,106,185 |
|
$5,963,217 |
|
$5,966,797 |
|
Real estate — construction and land |
1,396,977 |
|
1,430,758 |
|
1,415,349 |
|
1,411,437 |
|
1,400,563 |
|
Real estate — business |
3,715,597 |
|
3,692,405 |
|
3,667,833 |
|
3,636,026 |
|
3,580,772 |
|
Real estate — personal |
3,059,913 |
|
3,048,895 |
|
3,045,876 |
|
3,047,494 |
|
3,047,563 |
|
Consumer |
2,160,637 |
|
2,148,666 |
|
2,082,360 |
|
2,087,237 |
|
2,129,483 |
|
Revolving home equity |
360,820 |
|
362,312 |
|
358,684 |
|
350,541 |
|
335,817 |
|
Consumer credit card |
563,351 |
|
559,858 |
|
560,534 |
|
568,138 |
|
559,410 |
|
Overdrafts |
7,037 |
|
5,663 |
|
5,860 |
|
5,628 |
|
5,460 |
|
Total loans |
17,494,351 |
|
17,495,809 |
|
17,242,681 |
|
17,069,718 |
|
17,025,865 |
|
Allowance for credit losses on loans |
(164,623 |
) |
(166,391 |
) |
(162,186 |
) |
(160,286 |
) |
(158,003 |
) |
Net loans |
17,329,728 |
|
17,329,418 |
|
17,080,495 |
|
16,909,432 |
|
16,867,862 |
|
Loans held for sale |
2,369 |
|
1,741 |
|
1,584 |
|
2,080 |
|
2,448 |
|
Investment securities: |
|
|
|
|
|
|||||
U.S. government and federal agency obligations |
2,693,327 |
|
2,623,896 |
|
2,586,944 |
|
2,459,485 |
|
1,888,985 |
|
Government-sponsored enterprise obligations |
55,014 |
|
55,038 |
|
55,330 |
|
55,428 |
|
55,583 |
|
State and municipal obligations |
756,137 |
|
780,063 |
|
804,363 |
|
831,695 |
|
856,620 |
|
Mortgage-backed securities |
4,461,056 |
|
4,641,295 |
|
4,788,102 |
|
4,905,187 |
|
5,082,091 |
|
Asset-backed securities |
1,466,770 |
|
1,585,364 |
|
1,655,701 |
|
1,570,878 |
|
1,525,593 |
|
Other debt securities |
204,281 |
|
237,385 |
|
258,136 |
|
221,076 |
|
224,528 |
|
Unrealized gain (loss) on debt securities |
(766,025 |
) |
(838,028 |
) |
(935,054 |
) |
(896,346 |
) |
(961,695 |
) |
Total available for sale debt securities |
8,870,560 |
|
9,085,013 |
|
9,213,522 |
|
9,147,403 |
|
8,671,705 |
|
Trading debt securities |
56,032 |
|
51,131 |
|
38,298 |
|
56,440 |
|
47,440 |
|
Equity securities |
50,823 |
|
54,472 |
|
57,028 |
|
56,758 |
|
85,118 |
|
Other securities |
220,041 |
|
216,560 |
|
233,461 |
|
222,529 |
|
217,377 |
|
Total investment securities |
9,197,456 |
|
9,407,176 |
|
9,542,309 |
|
9,483,130 |
|
9,021,640 |
|
Federal funds sold |
23 |
|
158 |
|
2,089 |
|
826 |
|
12 |
|
Securities purchased under agreements to resell |
850,000 |
|
850,000 |
|
788,889 |
|
566,307 |
|
474,997 |
|
Interest earning deposits with banks |
2,422,441 |
|
2,036,803 |
|
2,388,504 |
|
2,610,315 |
|
2,565,188 |
|
Other assets |
1,709,247 |
|
1,671,763 |
|
1,698,296 |
|
1,701,822 |
|
1,648,321 |
|
Total assets |
$31,511,264 |
|
$31,297,059 |
|
$31,502,166 |
|
$31,273,912 |
|
$30,580,468 |
|
|
|
|
|
|
|
|||||
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
Non-interest bearing deposits |
$7,345,156 |
|
$7,356,882 |
|
$7,298,686 |
|
$7,464,255 |
|
$7,284,834 |
|
Savings |
1,283,671 |
|
1,303,391 |
|
1,294,174 |
|
1,281,291 |
|
1,303,675 |
|
Interest checking and money market |
13,740,770 |
|
13,901,634 |
|
13,906,827 |
|
13,679,666 |
|
13,242,398 |
|
Certificates of deposit of less than $100,000 |
991,877 |
|
984,845 |
|
991,826 |
|
1,061,783 |
|
1,055,683 |
|
Certificates of deposit of $100,000 and over |
1,416,572 |
|
1,371,428 |
|
1,363,655 |
|
1,451,851 |
|
1,464,143 |
|
Total deposits |
24,778,046 |
|
24,918,180 |
|
24,855,168 |
|
24,938,846 |
|
24,350,733 |
|
Borrowings: |
|
|
|
|
|
|||||
Federal funds purchased |
130,622 |
|
129,891 |
|
128,340 |
|
121,781 |
|
206,644 |
|
Securities sold under agreements to repurchase |
2,519,660 |
|
2,371,031 |
|
2,723,227 |
|
2,445,956 |
|
2,351,870 |
|
Other borrowings |
1,860 |
|
2,748 |
|
616 |
|
1,067 |
|
496 |
|
Total borrowings |
2,652,142 |
|
2,503,670 |
|
2,852,183 |
|
2,568,804 |
|
2,559,010 |
|
Other liabilities |
402,265 |
|
360,204 |
|
421,370 |
|
375,463 |
|
405,490 |
|
Total liabilities |
27,832,453 |
|
27,782,054 |
|
28,128,721 |
|
27,883,113 |
|
27,315,233 |
|
Equity |
3,678,811 |
|
3,515,005 |
|
3,373,445 |
|
3,390,799 |
|
3,265,235 |
|
Total liabilities and equity |
$31,511,264 |
|
$31,297,059 |
|
$31,502,166 |
|
$31,273,912 |
|
$30,580,468 |
|
COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES |
||||||||||
(Unaudited) |
For the Three Months Ended |
|||||||||
Sep. 30,
|
Jun. 30,
|
Mar. 31,
|
Dec. 31,
|
Sep. 30,
|
||||||
ASSETS: |
|
|
|
|
|
|||||
Loans: |
|
|
|
|
|
|||||
Business (1) |
5.72 |
% |
5.72 |
% |
5.75 |
% |
5.86 |
% |
6.17 |
% |
Real estate — construction and land |
7.37 |
|
7.39 |
|
7.30 |
|
7.75 |
|
8.44 |
|
Real estate — business |
5.92 |
|
5.92 |
|
5.88 |
|
6.01 |
|
6.28 |
|
Real estate — personal |
4.34 |
|
4.30 |
|
4.28 |
|
4.17 |
|
4.10 |
|
Consumer |
6.42 |
|
6.43 |
|
6.52 |
|
6.52 |
|
6.64 |
|
Revolving home equity |
7.94 |
|
7.41 |
|
7.26 |
|
7.28 |
|
7.69 |
|
Consumer credit card |
13.21 |
|
13.18 |
|
13.49 |
|
13.60 |
|
14.01 |
|
Overdrafts |
— |
|
— |
|
— |
|
— |
|
— |
|
Total loans |
6.02 |
|
6.01 |
|
6.02 |
|
6.11 |
|
6.35 |
|
Loans held for sale |
6.03 |
|
9.22 |
|
5.89 |
|
7.65 |
|
6.34 |
|
Investment securities: |
|
|
|
|
|
|||||
U.S. government and federal agency obligations |
4.06 |
|
4.28 |
|
4.09 |
|
3.86 |
|
3.68 |
|
Government-sponsored enterprise obligations |
2.35 |
|
2.38 |
|
2.40 |
|
2.36 |
|
2.37 |
|
State and municipal obligations (1) |
2.05 |
|
2.05 |
|
2.05 |
|
2.01 |
|
2.00 |
|
Mortgage-backed securities |
2.01 |
|
2.08 |
|
2.08 |
|
2.17 |
|
1.95 |
|
Asset-backed securities |
3.69 |
|
3.73 |
|
3.46 |
|
2.99 |
|
2.66 |
|
Other debt securities |
2.97 |
|
2.94 |
|
2.69 |
|
2.11 |
|
2.07 |
|
Total available for sale debt securities |
2.86 |
|
2.95 |
|
2.83 |
|
2.70 |
|
2.41 |
|
Trading debt securities (1) |
4.67 |
|
4.63 |
|
4.97 |
|
4.26 |
|
4.52 |
|
Equity securities (1) |
6.09 |
|
6.26 |
|
8.02 |
|
6.58 |
|
4.44 |
|
Other securities (1) |
7.29 |
|
11.63 |
|
7.85 |
|
5.75 |
|
6.09 |
|
Total investment securities |
2.99 |
|
3.16 |
|
2.98 |
|
2.80 |
|
2.52 |
|
Federal funds sold |
— |
|
5.08 |
|
5.63 |
|
5.78 |
|
— |
|
Securities purchased under agreements to resell |
4.00 |
|
4.02 |
|
3.81 |
|
3.57 |
|
3.53 |
|
Interest earning deposits with banks |
4.45 |
|
4.46 |
|
4.46 |
|
4.78 |
|
5.43 |
|
Total interest earning assets |
4.86 |
|
4.90 |
|
4.81 |
|
4.83 |
|
4.96 |
|
|
|
|
|
|
|
|||||
LIABILITIES AND EQUITY: |
|
|
|
|
|
|||||
Interest bearing deposits: |
|
|
|
|
|
|||||
Savings |
.05 |
|
.05 |
|
.05 |
|
.05 |
|
.07 |
|
Interest checking and money market |
1.54 |
|
1.49 |
|
1.52 |
|
1.63 |
|
1.74 |
|
Certificates of deposit of less than $100,000 |
3.33 |
|
3.44 |
|
3.65 |
|
3.91 |
|
4.17 |
|
Certificates of deposit of $100,000 and over |
3.71 |
|
3.78 |
|
3.96 |
|
4.24 |
|
4.51 |
|
Total interest bearing deposits |
1.71 |
|
1.67 |
|
1.72 |
|
1.87 |
|
2.00 |
|
Borrowings: |
|
|
|
|
|
|||||
Federal funds purchased |
4.34 |
|
4.37 |
|
4.37 |
|
4.71 |
|
5.38 |
|
Securities sold under agreements to repurchase |
2.88 |
|
2.85 |
|
2.86 |
|
3.11 |
|
3.56 |
|
Other borrowings |
1.71 |
|
3.79 |
|
.66 |
|
3.36 |
|
4.81 |
|
Total borrowings |
2.95 |
|
2.93 |
|
2.93 |
|
3.18 |
|
3.71 |
|
Total interest bearing liabilities |
1.87 |
% |
1.83 |
% |
1.89 |
% |
2.04 |
% |
2.22 |
% |
|
|
|
|
|
|
|||||
Net yield on interest earning assets |
3.64 |
% |
3.70 |
% |
3.56 |
% |
3.49 |
% |
3.50 |
% |
(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 |
For the Nine Months Ended |
||||||||||||
(Unaudited) (In thousands, except ratios) |
|
Sep. 30,
|
Jun. 30,
|
Mar. 31,
|
Dec. 31,
|
Sep. 30,
|
Sep. 30,
|
Sep. 30,
|
|||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS |
|
|
|
|
|
|
|
|
|||||||
Balance at beginning of period |
|
$165,260 |
|
$167,031 |
|
$162,742 |
|
$160,839 |
|
$158,557 |
|
$162,742 |
|
$162,395 |
|
Provision for credit losses on loans |
|
20,739 |
|
7,919 |
|
15,095 |
|
12,557 |
|
11,861 |
|
43,753 |
|
26,657 |
|
Net charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|||||||
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
Business |
|
826 |
|
432 |
|
46 |
|
335 |
|
114 |
|
1,304 |
|
759 |
|
Real estate — construction and land |
|
— |
|
24 |
|
— |
|
— |
|
— |
|
24 |
|
— |
|
Real estate — business |
|
(23 |
) |
(425 |
) |
377 |
|
50 |
|
(7 |
) |
(71 |
) |
(156 |
) |
|
|
803 |
|
31 |
|
423 |
|
385 |
|
107 |
|
1,257 |
|
603 |
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
Consumer credit card |
|
6,515 |
|
7,085 |
|
6,967 |
|
6,557 |
|
6,273 |
|
20,567 |
|
19,454 |
|
Consumer |
|
2,310 |
|
2,168 |
|
2,852 |
|
3,237 |
|
2,759 |
|
7,330 |
|
6,546 |
|
Overdraft |
|
432 |
|
360 |
|
495 |
|
470 |
|
464 |
|
1,287 |
|
1,542 |
|
Real estate — personal |
|
269 |
|
35 |
|
72 |
|
8 |
|
128 |
|
376 |
|
231 |
|
Revolving home equity |
|
(1 |
) |
11 |
|
(3 |
) |
(3 |
) |
(152 |
) |
7 |
|
(163 |
) |
|
|
9,525 |
|
9,659 |
|
10,383 |
|
10,269 |
|
9,472 |
|
29,567 |
|
27,610 |
|
Total net loan charge-offs |
|
10,328 |
|
9,690 |
|
10,806 |
|
10,654 |
|
9,579 |
|
30,824 |
|
28,213 |
|
Balance at end of period |
|
$175,671 |
|
$165,260 |
|
$167,031 |
|
$162,742 |
|
$160,839 |
|
$175,671 |
|
$160,839 |
|
LIABILITY FOR UNFUNDED LENDING COMMITMENTS |
|
$15,327 |
|
$16,005 |
|
$18,327 |
|
$18,935 |
|
$17,984 |
|
|
|
||
NET CHARGE-OFF RATIOS (1) |
|
|
|
|
|
|
|
|
|||||||
Commercial portfolio: |
|
|
|
|
|
|
|
|
|||||||
Business |
|
.05 |
% |
.03 |
% |
— |
% |
.02 |
% |
.01 |
% |
.03 |
% |
.02 |
% |
Real estate — construction and land |
|
— |
|
.01 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Real estate — business |
|
— |
|
(.05 |
) |
.04 |
|
.01 |
|
— |
|
— |
|
(.01 |
) |
|
|
.03 |
|
— |
|
.02 |
|
.01 |
|
— |
|
.01 |
|
.01 |
|
Personal banking portfolio: |
|
|
|
|
|
|
|
|
|||||||
Consumer credit card |
|
4.59 |
|
5.08 |
|
5.04 |
|
4.59 |
|
4.46 |
|
4.90 |
|
4.65 |
|
Consumer |
|
.42 |
|
.40 |
|
.56 |
|
.62 |
|
.52 |
|
.46 |
|
.41 |
|
Overdraft |
|
24.36 |
|
25.50 |
|
34.26 |
|
33.22 |
|
33.81 |
|
27.79 |
|
34.32 |
|
Real estate — personal |
|
.03 |
|
— |
|
.01 |
|
— |
|
.02 |
|
.02 |
|
.01 |
|
Revolving home equity |
|
— |
|
.01 |
|
— |
|
— |
|
(.18 |
) |
— |
|
(.07 |
) |
|
|
.61 |
|
.63 |
|
.70 |
|
.67 |
|
.62 |
|
.65 |
|
.61 |
|
Total |
|
.23 |
% |
.22 |
% |
.25 |
% |
.25 |
% |
.22 |
% |
.24 |
% |
.22 |
% |
CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|||||||
Non-accrual loans to total loans |
|
.09 |
% |
.11 |
% |
.13 |
% |
.11 |
% |
.11 |
% |
|
|
||
Allowance for credit losses on loans to total loans |
|
.99 |
|
.94 |
|
.96 |
|
.95 |
|
.94 |
|
|
|
||
NON-ACCRUAL AND PAST DUE LOANS |
|
|
|
|
|
|
|
|
|||||||
Non-accrual loans: |
|
|
|
|
|
|
|
|
|||||||
Business |
|
$255 |
|
$410 |
|
$1,112 |
|
$101 |
|
$354 |
|
|
|
||
Real estate — construction and land |
|
191 |
|
426 |
|
220 |
|
220 |
|
— |
|
|
|
||
Real estate — business |
|
14,940 |
|
15,109 |
|
18,305 |
|
14,954 |
|
14,944 |
|
|
|
||
Real estate — personal |
|
867 |
|
948 |
|
989 |
|
1,026 |
|
1,144 |
|
|
|
||
Revolving home equity |
|
— |
|
1,977 |
|
1,977 |
|
1,977 |
|
1,977 |
|
|
|
||
Total |
|
16,253 |
|
18,870 |
|
22,603 |
|
18,278 |
|
18,419 |
|
|
|
||
Loans past due 90 days and still accruing interest |
$21,536 |
|
$25,303 |
|
$19,417 |
|
$24,516 |
|
$21,986 |
|
|
|
|||
(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 Third Quarter Results
September 30, 2025
For the quarter ended September 30, 2025, net income amounted to $141.5 million, compared to $152.5 million in the previous quarter and $138.0 million in the same quarter last year. The decrease in net income compared to the previous quarter was primarily the result of an increase in the provision for credit losses and lower non-interest income, partly offset by higher gains on investment securities. The net yield on interest earning assets decreased six basis points from the previous quarter. Average loans were flat, while average available for sale investment securities, at fair value, and deposits decreased $214.5 million and $140.1 million, respectively, compared to the prior quarter. For the quarter, the return on average assets was 1.78%, the return on average equity was 15.26%, and the efficiency ratio was 55.3%.
Balance Sheet Review
During the 3rd quarter of 2025, average loans totaled $17.5 billion, flat compared to the prior quarter, and an increase of $468.5 million over the same quarter last year. Compared to the previous quarter, average balances of business real estate loans grew $23.2 million, while construction and business loans declined $33.8 million and $17.2 million, respectively. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $30.6 million, compared to $19.7 million in the prior quarter.
Total average available for sale debt securities decreased $214.5 million compared to 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 3rd quarter of 2025, the unrealized loss on available for sale debt securities decreased $75.9 million to $688.5 million, at period end. Also, during the 3rd quarter of 2025, purchases of available for sale debt securities totaled $459.3 million with a weighted average yield of approximately 4.15%, and maturities and pay downs of available for sale debt securities were $456.7 million. On September 30, 2025, the duration of the available for sale investment portfolio was 4.4 years, and maturities and pay downs of approximately $1.3 billion are expected to occur during the next 12 months.
Total average deposits decreased $140.1 million this quarter compared to the previous quarter. The decrease in deposits mostly resulted from lower average interest checking and money market balances of $160.9 million. Compared to the previous quarter, total average wealth and consumer deposits declined $132.4 million and $111.1 million, respectively, while average commercial deposits grew $118.1 million. The average loans to deposits ratio was 70.6% in the current quarter and 70.2% in the prior quarter. The Company's average borrowings, which included average customer repurchase agreements of $2.5 billion, increased $148.5 million to $2.7 billion in the 3rd quarter of 2025.
Net Interest Income
Net interest income in the 3rd quarter of 2025 amounted to $279.5 million, a decrease of $690 thousand compared to the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter decreased $658 thousand compared to the previous quarter to $281.8 million. The decrease in net interest income was mostly due to lower interest income on investment securities and higher interest expense on borrowings and deposits, partly offset by higher interest income on loans and deposits with banks. The net yield (FTE) on earning assets decreased to 3.64%, from 3.70% in the prior quarter.
Compared to the previous quarter, interest income on loans (FTE) increased $3.5 million, mostly due to an additional day of interest earned in the 3rd quarter, partly offset by lower average balances of construction loans. The average yield (FTE) on the loan portfolio increased one basis point to 6.02% this quarter.
Interest income on investment securities (FTE) decreased $5.6 million compared to the prior quarter, mostly due to lower average balances of asset-backed and mortgage-backed securities and lower rates on U.S. government and federal agency securities and other securities, partially offset by higher average balances of U.S. government and federal agency securities. Interest income earned on U.S. government and federal agency securities included the impact of a $1.1 million decline in inflation income from Treasury inflation-protected securities compared to previous quarter. Interest on other securities included $1.3 million of non-accrual interest income related to a private equity investment but was lower than the $1.8 million of dividend and non-accrual interest recorded in the prior quarter. Additionally, the Company recorded a $314 thousand adjustment to premium amortization on September 30, 2025, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was lower than the $1.0 million adjustment that increased interest income in the prior quarter. The average yield (FTE) on total investment securities was 2.99% in the current quarter, compared to 3.16% in the previous quarter.
Compared to the previous quarter, interest income on deposits with banks increased $4.5 million, due to higher average balances.
Interest expense increased $3.2 million compared to the previous quarter, mainly due to higher average rates paid on deposits and higher average balances of borrowings. Interest expense on borrowings increased $1.4 million mostly due to an increase of $148.6 million in average securities sold under repurchase agreement balances. Interest expense on deposits increased $1.8 million mostly due to higher average rates. The average rate paid on interest bearing deposits totaled 1.71% in the current quarter compared to 1.67% in the prior quarter. The overall rate paid on interest bearing liabilities was 1.87% in the current quarter and 1.83% in the prior quarter.
Non-Interest Income
In the 3rd quarter of 2025, total non-interest income amounted to $161.5 million, an increase of $2.5 million, or 1.6%, over the same period last year and a decrease of $4.1 million compared to the prior quarter. The increase in non-interest income compared to the same period last year was mainly due to higher trust fees, deposit account fees and brokerage fees, partly offset by lower bank card fees and lower gains on sales of assets. The decrease in non-interest income compared to the prior quarter was mainly due to lower gains on sales of assets of $6.5 million, partly offset by higher trust fees.
Total net bank card fees in the current quarter decreased $2.0 million, or 4.2%, compared to the same period last year, and decreased $811 thousand compared to the prior quarter. Net corporate card fees decreased $1.7 million compared to the same quarter of last year mainly due to higher rewards expense, partly offset by higher interchange fees. Net merchant fees increased $89 thousand, or 1.6%, while net debit card fees decreased $107 thousand, or .9%. Net credit card fees decreased $336 thousand, or 8.5%, mostly due to higher rewards expense. Total net bank card fees this quarter were comprised of fees on corporate card ($25.1 million), debit card ($11.3 million), merchant ($5.6 million) and credit card ($3.6 million) transactions.
In the current quarter, trust fees increased $3.7 million, or 6.8%, over the same period last year, mostly resulting from higher private client fees. Compared to the same period last year, deposit account fees increased $2.0 million, or 8.1%, mostly due to higher corporate cash management fees, while consumer brokerage fees increased $2.1 million.
Other non-interest income decreased compared to the same period last year primarily due to lower gains on sales of assets of $4.7 million. For the 3rd quarter of 2025, non-interest income comprised 36.6% of the Company's total revenue.
Investment Securities Gains and Losses
The Company recorded net securities gains of $7.9 million in the current quarter, compared to $437 thousand in the prior quarter and $3.9 million in the 3rd quarter of 2024. Net securities gains in the current quarter mostly resulted from net fair value adjustments of $8.0 million on the Company's portfolio of private equity investments.
Non-Interest Expense
Non-interest expense for the current quarter amounted to $244.0 million, compared to $237.6 million in the same period last year and $244.4 million in the prior quarter. 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, and professional and other services expense.
Compared to the 3rd quarter of 2024, salaries and employee benefits expense increased $4.3 million, or 2.8%, mostly due to higher full-time salaries of $3.0 million and higher incentive compensation of $1.4 million, partly offset by lower healthcare expense of $805 thousand. Full-time equivalent employees totaled 4,666 and 4,711 on September 30, 2025 and 2024, respectively.
Compared to the same period last year, data processing and software expense increased $1.4 million due to higher costs for service providers and software. Professional and other services, which increased $2.5 million compared to the 3rd quarter of 2024, included $1.1 million of acquisition related legal and professional services expense. Other non-interest expense decreased mainly due to a $1.5 million reimbursement during the 3rd quarter of 2025 related to a litigation settlement.
Income Taxes
The effective tax rate for the Company was 22.5% in the current quarter, 21.8% in the prior quarter, and 21.7% in the 3rd quarter of 2024. The increase in the effective tax rate compared to the prior quarter was mostly due to tax law changes enacted in the prior quarter that decreased the effective tax rate. The increase in the effective tax rate compared to the 3rd quarter of 2024 was mostly due to higher state and local income taxes.
Credit Quality
Net loan charge-offs in the 3rd quarter of 2025 amounted to $10.3 million, compared to $9.7 million in the prior quarter, and $9.6 million in the same period last year. The ratio of annualized net loan charge-offs to total average loans was .23% in the current quarter, .22% in the previous quarter, and .22% in the same quarter of last year. Compared to the prior quarter, net loan charge-offs on business real estate, business and personal real estate loans increased $402 thousand, $394 thousand and $234 thousand, respectively, while net charge-offs on consumer credit card loans decreased $570 thousand.
In the 3rd quarter of 2025, annualized net loan charge-offs on average consumer credit card loans were 4.59%, compared to 5.08% in the previous quarter and 4.46% in the same quarter last year. Consumer loan net charge-offs were .42% of average consumer loans in the current quarter, .40% in the prior quarter, and .52% in the same quarter last year.
On September 30, 2025, the allowance for credit losses on loans totaled $175.7 million, or .99% of total loans, and increased $10.4 million compared to the prior quarter. The increase in the allowance for credit losses on loans was primarily due to weakness in soft commodity prices impacting certain industries. Additionally, the liability for unfunded lending commitments on September 30, 2025 was $15.3 million, a decrease of $678 thousand compared to the liability on June 30, 2025.
On September 30, 2025, total non-accrual loans amounted to $16.3 million, a decrease of $2.6 million compared to the previous quarter. On September 30, 2025, the balance of non-accrual loans, which represented .09% of loans outstanding, included business real estate loans of $14.9 million, personal real estate loans of $867 thousand, business loans of $255 thousand and construction loans of $191 thousand. Loans more than 90 days past due and still accruing interest totaled $21.5 million on September 30, 2025.
Other
During the 3rd quarter of 2025, the Company paid a cash dividend of $.275 per common share, representing a 7.0% increase over the same period last year. The Company purchased 418,131 shares of treasury stock during the current quarter at an average price of $60.32.
On June 16, 2025, the Company announced that it has entered into a definitive merger agreement to acquire FineMark Holdings, Inc. (OTCQX:FNBT) ("FineMark"), Ft. Meyers, Florida, with 13 banking locations in Florida, Arizona, and South Carolina. As of June 30, 2025, FineMark had loans and deposits of $2.7 billion and $3.1 billion, respectively, and $8.3 billion of assets under administration. The Company has received all regulatory approvals to complete its proposed merger. The transaction has been approved by the Federal Reserve Bank of Kansas City, the Missouri Division of Finance, and FineMark shareholders. The transaction remains subject to customary closing conditions and is anticipated to close on January 1, 2026.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251015624038/en/
Matt Burkemper, Investor Relations
(314) 746-7485
www.commercebank.com
[email protected]