Commerce Bancshares records $99M Visa stock gain; repositions debt
Commerce Bancshares, Inc. announced the acceptance of its tender for 411,723 shares of Visa Class B-2 common stock, resulting in a $99 million pre-tax gain from marking Visa Class C common stock to fair value. Concurrently, the company approved a plan to reposition a portion of its available-for-sale debt securities portfolio, selling approximately $911 million in securities with a 2.5% yield, which is expected to result in a $95 million pre-tax loss. The proceeds will be reinvested into higher-yielding assets (approximately 4.0%) to increase net interest income, reduce earnings volatility, and enhance balance sheet quality. The cumulative impact of both actions on the company's Common Equity Tier 1 ratio is expected to be approximately neutral.
Key Highlights
- Accepted Visa's tender for 411,723 Class B-2 common shares.
- Recorded a pre-tax gain of $99 million from Visa Class C common stock.
- Visa Class A common stock closing price on May 8, 2026, was $318.79 per share.
- Approved plan to sell approximately $911 million of available-for-sale debt securities.
- Expected pre-tax loss of approximately $95 million from debt securities sale.
- Securities to be sold have an approximate yield of 2.5%.
- Proceeds to be reinvested into higher yielding assets of approximately 4.0%.
- Expected neutral cumulative impact on Common Equity Tier 1 ratio.