- Visa Gain and Portfolio Shift Might Change The Case For Investing In Commerce Bancshares (CBSH)
May 15, 2026
Commerce Bancshares recently recorded a US$99 million pre-tax gain from a Visa stock exchange and disclosed plans to sell about US$911 million of lower-yielding available-for-sale securities to reinvest in higher-yield assets, aiming to reshape its securities portfolio after the March 31, 2026 reporting period. This portfolio realignment, paired with State Street’s reported beneficial ownership of 7.07 million Commerce Bancshares shares, highlights growing institutional engagement with the bank’s balance sheet repositioning. We’ll now examine how Commerce Bancshares’ reinvestment of proceeds from selling lower-yield securities could influence its investment narrative and earnings mix.
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What Is Commerce Bancshares' Investment Narrative?
To own Commerce Bancshares today, you need to be comfortable with a steady, moderately growing regional bank that leans on consistent net interest income, high quality earnings and ongoing capital returns through dividends and buybacks. The recent US$99 million Visa-related gain and planned sale of about US$911 million of lower-yield securities could matter for the short term, because they reshape how the bank earns its money rather than changing the underlying franchise. If reinvested at meaningfully higher yields, this repositioning may support net interest income and slightly rebalance the earnings mix away from securities that have been a drag. At the same time, the realized loss on the securities sale, rising but still contained charge offs and the low but steady return on equity keep credit quality, capital deployment and earnings resilience firmly on the risk list. However, one of the key risks investors should be aware of sits squarely on the balance sheet.
Despite retreating, Commerce Bancshares' shares might still be trading 34% above their fair value. Discover the potential downside here.
Exploring Other PerspectivesCBSH 1-Year Stock Price Chart
The Simply Wall St Community’s two fair value estimates span roughly US$58.69 to US$76.94, underlining how differently private investors view Commerce’s earnings power after this balance sheet shift. With the Visa gain, securities realignment and gradual charge off trend in mind, you are seeing a wide range of views on how durable near term net interest income and returns might be. This is exactly where contrasting perspectives can help you stress test your own assumptions.
Explore 2 other fair value estimates on Commerce Bancshares - why the stock might be worth just $58.69!
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Decide For Yourself
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your Commerce Bancshares research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Commerce Bancshares research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Commerce Bancshares' overall financial health at a glance.
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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.
Companies discussed in this article include CBSH.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- CBSH's Visa Exchange Gain to Fund Portfolio Repositioning, Boost NII
May 13, 2026
Commerce Bancshares CBSH is taking steps to improve the strength and flexibility of its balance sheet. The move will drive net interest income (NII) expansion and lower rate sensitivity in the quarters ahead.
The company announced that Visa Inc. V accepted Commerce Bancshares’ tender of 411,723 shares of Visa Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock. The tender was earlier disclosed in a Form 8-K filed on April 27, 2026.
Following the completion of the exchange offer, Commerce Bancshares marked its Visa Class C common stock to fair value and recorded a $99 million gain. The gain was based on the conversion privilege of the Visa Class C common stock and the Visa Class A common stock’s closing price of $318.79 on May 8, 2026. The company expects to continue marking its Visa Class C shares to fair value regularly, using Visa Class A shares as evidence of orderly market transactions for similar securities issued by Visa.
Commerce Bancshares is using this gain as an opportunity to reposition part of its available-for-sale debt securities portfolio. The company approved a plan to sell securities with an amortized cost of roughly $911 million. These securities currently yield about 2.5%, and the sale is expected to generate a pre-tax loss of approximately $95 million.
CBSH intends to reinvest most of the proceeds into investment securities yielding around 4%. This will provide a meaningful pickup in portfolio yield and support NII growth over time. Management expects the combined effect of the Visa-related gain and the securities repositioning to be almost neutral to the company’s Common Equity Tier 1 ratio. This indicates that the company can enhance future profitability while preserving a solid capital profile.
Our Take on CBSH’s Securities Repositioning
The balance sheet repositioning is likely to support Commerce Bancshares’ prospects by boosting future NII, reducing interest-rate sensitivity and strengthening financial flexibility. The move reflects management’s proactive efforts to improve earnings quality while preserving capital discipline.
In the first quarter of 2026, CBSH’s NII jumped 11.4% year over year to $299.8 million on the back of the FineMark acquisition (completed in January) and balance sheet strength. With the balance sheet repositioning action, NII and net interest margin will likely expand further with additional support from the improving lending scenario and stabilizing funding costs.
In 2024, CBSH took similar steps following the acceptance of a share exchange deal with Visa. At that time, JPMorgan JPM also announced recognizing accounting gains of almost $8 billion in the second quarter of 2024 as part of a share exchange deal with Visa. JPMorgan tendered its 37.2 million shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock.
Shares of Commerce Bancshares have lost 4.5% in the past six months against the industry’s growth of 2%.
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Zacks Investment Research
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At present, CBSH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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- Why Commerce Bancshares (CBSH) is a Top Value Stock for the Long-Term
May 13, 2026 · zacks.com
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
- CBSH's Visa Exchange Gain to Fund Portfolio Repositioning, Boost NII
May 13, 2026 · zacks.com
Commerce Bancshares books a $99M Visa exchange gain, then intends to sell $911M of low-yield bonds, aiming to lift NII over the coming quarters.
- Commerce Bancshares, Inc. Announces Visa Inc.’s Acceptance of Class B-2 Common Stock and Investment Securities Repositioning
May 12, 2026
KANSAS CITY, Mo., May 12, 2026--(BUSINESS WIRE)--Commerce Bancshares, Inc. (NASDAQ: CBSH, or the "Company") announced that Visa Inc. ("Visa") has accepted the Company’s tender of its 411,723 shares of Visa Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock (the "Exchange Offer"). The tender was previously announced by the Company on a Form 8-K filed on April 27, 2026.
As a result of the Exchange Offer, the Company marked its Visa Class C common stock to fair value and recorded a gain of $99 million, based on the conversion privilege of the Visa Class C common stock and the closing price of Visa Class A common stock on May 8, 2026, of $318.79 per share. The Company’s Visa Class C common stock shares are expected to continue to be marked to fair value on a recurring basis using the Visa Class A common stock shares as evidence of orderly transactions between market participants for similar securities issued by Visa.
Subsequent to the successful close of the Exchange Offer, the Company approved a plan to reposition a portion of its available-for-sale debt securities portfolio through the sale of securities with an amortized cost of approximately $911 million. The securities that the Company plans to sell have a yield of approximately 2.5%, which is expected to result in a pretax loss of approximately $95 million. The Company expects to reinvest most of the proceeds into investment securities yielding approximately 4.0%.
The Company expects the repositioning to increase net interest income, reduce earnings volatility, reduce exposure to changes in interest rates, and enhance the overall quality and flexibility of the balance sheet. The cumulative impact of the gain on Visa stock as a result of the Exchange Offer and the anticipated securities repositioning is expected to be approximately neutral to the Company’s Common Equity Tier 1 ratio.
The timing and amount of the loss ultimately realized on the available-for-sale debt securities and the reinvestment assumptions may depend on a number of factors, including market conditions, the future price of Visa Class A common stock, and other considerations.
About Commerce Bancshares, Inc.
Commerce Bancshares, Inc. (NASDAQ: CBSH) is a regional bank holding company with $35.7 billion in assets1, offering banking, payment solutions, wealth management and securities brokerage through its subsidiaries. Commerce Bank, its primary subsidiary, brings over 160 years of experience helping individuals and businesses through high-touch service and sophisticated, personalized financial solutions.
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Commerce maintains an extensive network of banking centers, wealth offices, and ATMs throughout the Midwest, as well as commercial offices in 11 states and offers payment solutions nationwide. With its recent acquisition of FineMark Holdings, Inc., Commerce builds on its existing private banking and wealth management presence in Florida and adds wealth offices in Arizona and South Carolina.
Customers can conveniently access their accounts 24/7 using mobile and online platforms, as well as a customer service line.
Learn more at www.commercebank.com
1As of March 31, 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 for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260512821808/en/
Contacts
For more information, please contact:
Matt Burkemper (314) 746-7485
Matthew.Burkemper@CommerceBank.com
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- Commerce Bancshares, Inc. Announces Visa Inc.'s Acceptance of Class B-2 Common Stock and Investment Securities Repositioning
May 12, 2026 · businesswire.com
KANSAS CITY, Mo.--(BUSINESS WIRE)--Commerce Bancshares, Inc. (NASDAQ: CBSH, or the “Company”) announced that Visa Inc. (“Visa”) has accepted the Company's tender of its 411,723 shares of Visa Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock (the “Exchange Offer”). The tender was previously announced by the Company on a Form 8-K filed on April 27, 2026. As a result of the Exchange Offer, the Company marked its Visa Class C common s.
- COMMERCE BANCSHARES, INC. ANNOUNCES VISA INC.'S ACCEPTANCE OF CLASS B-2 COMMON STOCK AND INVESTMENT SECURITIES REPOSITIONING
May 12, 2026
KANSAS CITY, MO.--(BUSINESS WIRE)--COMMERCE BANCSHARES, INC. (NASDAQ: CBSH, OR THE “COMPANY”) ANNOUNCED THAT VISA INC. (“VISA”) HAS ACCEPTED THE COMPANY'S TENDER OF ITS 411,723 SHARES OF VISA CLASS B-2 COMMON STOCK IN EXCHANGE FOR A COMBINATION OF VISA CLASS B-3 COMMON STOCK AND VISA CLASS C COMMON STOCK (THE “EXCHANGE OFFER”). THE TENDER WAS PREVIOUSLY ANNOUNCED BY THE COMPANY ON A FORM 8-K FILED ON APRIL 27, 2026. AS A RESULT OF THE EXCHANGE OFFER, THE COMPANY MARKED ITS VISA CLASS C COMMON S.
- 1 Bank Stock with Competitive Advantages and 2 We Avoid
May 11, 2026
Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. Furthermore, economic conditions have supported loan growth and fee income, a trend that has enabled the banking industry to return 12.3% over the past six months. At the same time, the S&P 500 was up 7.7%.
Nevertheless, investors should tread carefully as many banks are cyclical due to their exposure to credit risk and regulatory changes. Keeping that in mind, here is one resilient bank stock at the top of our wish list and two that may face trouble.
Two Bank Stocks to Sell:
Lake City Bank (LKFN)
Market Cap: $1.56 billion
Dating back to 1872 and deeply rooted in Indiana's communities, Lakeland Financial Corporation (NASDAQ:LKFN) operates Lake City Bank, providing commercial and consumer banking services throughout Northern and Central Indiana.
Why Does LKFN Worry Us?
Muted 5.1% annual revenue growth over the last five years shows its demand lagged behind its banking peers Muted 6% annual net interest income growth over the last five years shows its demand lagged behind its banking peers Incremental sales over the last five years were less profitable as its 3.9% annual earnings per share growth lagged its revenue gains
Lake City Bank’s stock price of $62.54 implies a valuation ratio of 1.9x forward P/B. If you’re considering LKFN for your portfolio, see our FREE research report to learn more.
Commerce Bancshares (CBSH)
Market Cap: $7.73 billion
Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.
Why Are We Wary of CBSH?
Sales trends were unexciting over the last five years as its 6% annual growth was below the typical banking company Muted 6.5% annual net interest income growth over the last five years shows its demand lagged behind its banking peers Estimated tangible book value per share growth of 10.9% for the next 12 months implies profitability will slow from its two-year trend
Commerce Bancshares is trading at $52.46 per share, or 1.7x forward P/B. Dive into our free research report to see why there are better opportunities than CBSH.
One Bank Stock to Watch:
First BanCorp (FBP)
Market Cap: $3.69 billion
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE:FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
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Why Could FBP Be a Winner?
Non-interest operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23.6% exceeded its revenue gains over the last five years
At $23.99 per share, First BanCorp trades at 1.8x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
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- Here's Why Commerce Bancshares (CBSH) is a Strong Momentum Stock
May 11, 2026 · zacks.com
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
- UMBF or CBSH: Which Is the Better Value Stock Right Now?
May 6, 2026
Investors looking for stocks in the Banks - Midwest sector might want to consider either UMB Financial (UMBF) or Commerce Bancshares (CBSH). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, UMB Financial is sporting a Zacks Rank of #1 (Strong Buy), while Commerce Bancshares has a Zacks Rank of #3 (Hold). This means that UMBF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
UMBF currently has a forward P/E ratio of 10.26, while CBSH has a forward P/E of 12.72. We also note that UMBF has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CBSH currently has a PEG ratio of 3.56.
Another notable valuation metric for UMBF is its P/B ratio of 1.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CBSH has a P/B of 1.77.
These metrics, and several others, help UMBF earn a Value grade of B, while CBSH has been given a Value grade of C.
UMBF has seen stronger estimate revision activity and sports more attractive valuation metrics than CBSH, so it seems like value investors will conclude that UMBF is the superior option right now.
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UMB Financial Corporation (UMBF) : Free Stock Analysis Report
Commerce Bancshares, Inc. (CBSH) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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