We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Commerce Bancshares Inc. (CBSH - Free Report) reported fourth-quarter 2024 earnings per share of $1.01, which surpassed the Zacks Consensus Estimate of 94 cents. The bottom line also jumped 27.8% from the prior-year quarter.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Results benefited from a rise in net interest income (NII) and non-interest income. Also, stable adjusted expenses posed a tailwind. However, a substantial jump in provisions hurt the results to some extent.
Net income attributable to common shareholders was $136.1 million, up 24.6% year over year. Our estimate for the metric was $117.6 million.
For 2024, earnings were $3.87 per share, lagging the consensus estimate of $3.91 but growing 11.8% year over year. Net income attributable to common shareholders was $526.3 million, up 10.3%.
CBSH’s Revenues Improve, Adjusted Expenses Stable
Total revenues in the quarter were $422.1 million, up 7.3% year over year. The top line outpaced the Zacks Consensus Estimate of $415.1 million.
For 2024, total revenues grew 5.4% from the prior year to $1.66 billion. The top line beat the consensus estimate of $1.65 billion.
NII was $266.6 million, rising 7.3% from the year-ago quarter. Our estimate for NII was $257.2 million.
Net yield on interest-earning assets expanded 32 basis points (bps) to 3.49%. Our estimate for the metric was 3.50%.
Non-interest income was $155.4 million, up 7.3%. The rise was driven by higher trust fees, capital market fees and consumer brokerage services. Our estimate for non-interest income was $156.8 million.
Non-interest expenses decreased 6.6% to $235.7 million. The absence of the FDIC special assessment was the primary reason for the decline. Excluding this charge, expenses were relatively stable. We had projected expenses of $255.5 million.
Net investment securities gain was $0.98 million compared with $7.6 million in the prior-year quarter.
The efficiency ratio declined to 55.77% from 63.80% in the year-ago quarter. A fall in the efficiency ratio indicates an improvement in profitability.
As of Dec. 31, 2024, net loans were $17.06 billion, up almost 1% from the prior quarter end. Total deposits were $25.29 billion, which rose marginally. Our estimates for net loans and total deposits were $17.61 billion and $25.79 billion, respectively.
Commerce Bancshares’ Asset Quality Worsens
Provision for credit losses was $13.6 million, which soared substantially from the prior-year quarter’s $5.9 million. Our estimate for the metric was $9.3 billion.
Allowance for credit losses on loans to total loans was 0.95%, increasing 1 bp year over year. The ratio of annualized net loan charge-offs to total average loans was 0.25%, up from 0.19%.
Further, non-accrual loans to total loans were 0.11%, up 7 bps from the prior-year quarter.
CBSH’s Capital Ratios Improve, Profitability Ratios Mixed
As of Dec. 31, 2024, the Tier I leverage ratio was 12.26%, up from 11.25% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 9.92% from the prior-year quarter’s 8.85%.
At the end of the fourth quarter, the return on total average assets was 1.73%, up from the year-ago period’s 1.38%. Return on average equity was 15.97% compared with 16.48% in the prior-year quarter.
CBSH’s Share Repurchase Update
In the reported quarter, the company repurchased 0.68 million shares at an average price of $67.88.
Our Take on Commerce Bancshares
Commerce Bancshares’ revenues are expected to be driven by decent loan demand and its balance sheet repositioning strategy. Its efforts to bolster fee income is encouraging. However, rising expenses and deteriorating asset quality remain near-term headwinds.
Commerce Bancshares, Inc. Price, Consensus and EPS Surprise
Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2024 earnings per share of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter.
The results benefited from the increase in non-interest income and NII. Lower expenses and provisions were other positives. However, the decline in total loans was a headwind for HWC.
Bank OZK’s (OZK - Free Report) fourth-quarter 2024 earnings per share of $1.56 handily surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflects a rise of 4% from the prior-year quarter’s actual.
OZK’s results benefited from a rise in NII, driven by improvement in loans and deposit balances. Lower non-interest expenses and provisions were also positives. However, lower non-interest income and rising funding costs were the undermining factors.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Commerce Bancshares' Q4 Earnings & Revenues Beat, Provisions Soar
Commerce Bancshares Inc. (CBSH - Free Report) reported fourth-quarter 2024 earnings per share of $1.01, which surpassed the Zacks Consensus Estimate of 94 cents. The bottom line also jumped 27.8% from the prior-year quarter.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Results benefited from a rise in net interest income (NII) and non-interest income. Also, stable adjusted expenses posed a tailwind. However, a substantial jump in provisions hurt the results to some extent.
Net income attributable to common shareholders was $136.1 million, up 24.6% year over year. Our estimate for the metric was $117.6 million.
For 2024, earnings were $3.87 per share, lagging the consensus estimate of $3.91 but growing 11.8% year over year. Net income attributable to common shareholders was $526.3 million, up 10.3%.
CBSH’s Revenues Improve, Adjusted Expenses Stable
Total revenues in the quarter were $422.1 million, up 7.3% year over year. The top line outpaced the Zacks Consensus Estimate of $415.1 million.
For 2024, total revenues grew 5.4% from the prior year to $1.66 billion. The top line beat the consensus estimate of $1.65 billion.
NII was $266.6 million, rising 7.3% from the year-ago quarter. Our estimate for NII was $257.2 million.
Net yield on interest-earning assets expanded 32 basis points (bps) to 3.49%. Our estimate for the metric was 3.50%.
Non-interest income was $155.4 million, up 7.3%. The rise was driven by higher trust fees, capital market fees and consumer brokerage services. Our estimate for non-interest income was $156.8 million.
Non-interest expenses decreased 6.6% to $235.7 million. The absence of the FDIC special assessment was the primary reason for the decline. Excluding this charge, expenses were relatively stable. We had projected expenses of $255.5 million.
Net investment securities gain was $0.98 million compared with $7.6 million in the prior-year quarter.
The efficiency ratio declined to 55.77% from 63.80% in the year-ago quarter. A fall in the efficiency ratio indicates an improvement in profitability.
As of Dec. 31, 2024, net loans were $17.06 billion, up almost 1% from the prior quarter end. Total deposits were $25.29 billion, which rose marginally. Our estimates for net loans and total deposits were $17.61 billion and $25.79 billion, respectively.
Commerce Bancshares’ Asset Quality Worsens
Provision for credit losses was $13.6 million, which soared substantially from the prior-year quarter’s $5.9 million. Our estimate for the metric was $9.3 billion.
Allowance for credit losses on loans to total loans was 0.95%, increasing 1 bp year over year. The ratio of annualized net loan charge-offs to total average loans was 0.25%, up from 0.19%.
Further, non-accrual loans to total loans were 0.11%, up 7 bps from the prior-year quarter.
CBSH’s Capital Ratios Improve, Profitability Ratios Mixed
As of Dec. 31, 2024, the Tier I leverage ratio was 12.26%, up from 11.25% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 9.92% from the prior-year quarter’s 8.85%.
At the end of the fourth quarter, the return on total average assets was 1.73%, up from the year-ago period’s 1.38%. Return on average equity was 15.97% compared with 16.48% in the prior-year quarter.
CBSH’s Share Repurchase Update
In the reported quarter, the company repurchased 0.68 million shares at an average price of $67.88.
Our Take on Commerce Bancshares
Commerce Bancshares’ revenues are expected to be driven by decent loan demand and its balance sheet repositioning strategy. Its efforts to bolster fee income is encouraging. However, rising expenses and deteriorating asset quality remain near-term headwinds.
Commerce Bancshares, Inc. Price, Consensus and EPS Surprise
Commerce Bancshares, Inc. price-consensus-eps-surprise-chart | Commerce Bancshares, Inc. Quote
Currently, Commerce Bancshares carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of CBSH’s Peer Banks
Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2024 earnings per share of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter.
The results benefited from the increase in non-interest income and NII. Lower expenses and provisions were other positives. However, the decline in total loans was a headwind for HWC.
Bank OZK’s (OZK - Free Report) fourth-quarter 2024 earnings per share of $1.56 handily surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflects a rise of 4% from the prior-year quarter’s actual.
OZK’s results benefited from a rise in NII, driven by improvement in loans and deposit balances. Lower non-interest expenses and provisions were also positives. However, lower non-interest income and rising funding costs were the undermining factors.