Commerce Bancshares earnings, credit trends, and buyback activity

Commerce Bancshares (CBSH) drew fresh attention after its second quarter 2026 update, which combined higher net interest income, slightly higher net income, stable loan charge-offs, and continued share repurchases.

For the quarter ended June 30, 2026, Commerce Bancshares reported net interest income of US$315.09 million compared with US$280.15 million a year earlier. Net income for the same period was US$159.79 million compared with US$152.48 million a year ago.

Basic and diluted earnings per share from continuing operations were US$1.10 compared with US$1.09 a year earlier. Over the first six months of 2026, net interest income was US$614.93 million compared with US$549.25 million a year ago, while net income was US$301.41 million compared with US$284.07 million.

Six month basic and diluted earnings per share from continuing operations were US$2.06 compared with US$2.02 a year earlier. Alongside these results, the bank reported unaudited net loan charge-offs of US$9.541 million for the second quarter. This compared with US$9.690 million in net loan charge-offs reported a year ago.

From April 1, 2026 to June 30, 2026, Commerce Bancshares repurchased 2,100,000 shares for US$110 million, representing 1.44% of its outstanding stock. Since the buyback program was announced in October 2005, the company has repurchased 47,588,724 shares for US$2,463.63 million, equal to 29.65% of its shares.

As of the most recent close on July 28, 2026, Commerce Bancshares stock traded at US$59.00, with a market capitalisation of about US$8.50b. Over the past month, the stock gained 2.09%, and it increased 13.53% over the past 3 months. The one year total return was 2.02%.

For investors looking at Commerce Bancshares today, these second quarter figures and the long running repurchase program form a key part of the backdrop when assessing valuation, earnings quality, and the role of buybacks in per share metrics.

At a share price of US$59.00, Commerce Bancshares has seen its recent momentum build, with a 30 day share price return of 2.09% and a 90 day share price return of 13.53%. The 1 year total shareholder return of 2.02% contrasts with a stronger 3 year total shareholder return of 36.06% and a 5 year total shareholder return of 18.07%. Together, these figures suggest investors are reacting to the latest earnings, credit trends, and ongoing buybacks by reassessing both near term prospects and longer term risk.

If you are weighing Commerce Bancshares against other opportunities, now can be a good time to widen your search to banks and financials with different ownership profiles through our 18 top founder-led companies

Commerce Bancshares is coming off a solid run and active buybacks, which makes the next decision trickier. Is US$59.00 a reasonable place to commit new money, or does it make more sense to wait for a cheaper entry?

Price-to-earnings of 14.7x for Commerce Bancshares: Is it justified?

On the numbers available, Commerce Bancshares is trading on a P/E of 14.7x, which screens as expensive compared with both the broader US Banks industry and the level suggested by the SWS fair ratio model.

The P/E multiple compares the current share price with earnings per share. For a bank like Commerce Bancshares, it is a quick way to see how much investors are paying for each dollar of current earnings relative to peers in the same sector.

Here, the stock trades on 14.7x earnings while the estimated fair P/E from the SWS model sits at 12.8x. The stock is also on a higher multiple than the peer average of 12.1x and the US Banks industry average of 11.9x. That is a clear premium, and the fair ratio points to a level the valuation could move toward if sentiment or expectations change.

Result: Price-to-earnings of 14.7x (OVERVALUED).

However, the current premium P/E for Commerce Bancshares, along with any shift in credit quality or loan demand, could quickly challenge the recent share price strength.

Another view on Commerce Bancshares valuation

The earlier P/E discussion painted Commerce Bancshares as expensive on earnings multiples. The SWS DCF model tells a very different story. At a share price of $59.00 and an estimated future cash flow value of $101.21, the stock screens as trading about 41.7% below that DCF estimate. That raises a simple question for investors: Which signal deserves more weight, the earnings multiple or the cash flow model?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Commerce Bancshares for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With Commerce Bancshares sending mixed signals on valuation and cash flows, it makes sense to move quickly and test the data yourself before forming a view. To see which reward factors are behind the current optimism, start with the 4 key rewards.

Looking for more Commerce Bancshares sized investment ideas?

If Commerce Bancshares has your attention, now is a smart moment to broaden your watchlist with a few focused stock ideas that match different investing goals.

• Spot potential value opportunities early and compare them with Commerce Bancshares by reviewing our 51 high quality undervalued stocks.
• Build a steadier income stream alongside Commerce Bancshares by checking companies that show up in the 8 dividend fortresses.
• Strengthen your watchlist beyond Commerce Bancshares by focusing on resilience through the 84 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.