Commerce Bancshares’ Q3 Results Beat Analysts’ Expectations

Commerce Bancshares, Inc. (CBSH) has posted impressive Q3 results, driven by strong fee-based businesses. The regional bank provides banking services, including payment solutions, investment management and securities brokerage.

The bank reported third-quarter earnings of $1.05 per share, beating analysts’ expectations of $0.99 per share. The company had reported earnings of $1.06 per share in the same quarter last year.

Additionally, total revenues increased 1.7% year-over-year to $351.5 million, outpacing consensus estimates of $349.85 million. Net interest income came in at $214 million, marginally down on a year-over-year basis, while non-interest income jumped 6.1% to $137.5 million.

For the third quarter, the company reported the return on average assets of 1.40%, the return on average equity of 13.74% and the efficiency ratio of 59.95%, compared to 1.71%, 15.21% and 55%, respectively, in the same quarter last year. (See Commerce Bancshares stock charts on TipRanks)

As of September 30, 2021, total loans were $15.1 billion, down 7.9% year-over-year, while total deposits increased 9.3% to $28.1 billion.

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During the third quarter, the company paid a cash dividend of $0.263 per share, up 2.1% from the third quarter of 2020. Additionally, 575,457 shares of common stock were repurchased.

Recently, Jefferies analyst Ken Usdin maintained a Hold rating on the stock and decreased the price target to $67 (6.1% downside potential) from $75.

Consensus among analysts is a Hold based on 3 Holds versus 1 Sell. The average Commerce Bancshares price target of $67.33 implies 5.7% downside potential from current levels. Shares have gained 23.2% over the past year.

According to TipRanks’ Smart Score rating system, Commerce Bancshares gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.