Commerce Bancshares reported fourth-quarter earnings of $1.01 per share, surpassing the Zacks Consensus Estimate of $0.99. Net income reached $140.7 million, up 3.4% from $136.1 million in the year-ago quarter and roughly flat with the prior quarter’s $141.5 million. Net interest income rose 4.8% year-over-year to $230.2 million, driven by higher yields on the loan portfolio, while non-interest fee income climbed 6.7% to $52.8 million, supported by wealth management and treasury services growth.

For the full year ended December 31, 2025, Commerce Bancshares delivered $4.04 in earnings per share, up 5.0% from $3.85 a year earlier, on net income of $559.3 million. The bank maintained strong capital ratios, with a CET1 ratio of 10.9% and a Tier 1 leverage ratio of 8.5%, both comfortably above regulatory minimums. Return on assets stood at 1.35% for the year, versus 1.28% in 2024, reflecting improved profitability across core businesses.

Total loans and leases expanded 6.2% year-over-year to $21.4 billion, led by a 9.1% increase in commercial real estate lending and a 4.3% rise in commercial and industrial loans. Consumer loans grew 2.5%, as auto and home equity originations remained steady. Deposits increased 4.0% to $28.7 billion, with non-interest-bearing deposits up 7.5%, underscoring ongoing client liquidity preferences and successful local relationship banking initiatives.

Commerce Bancshares set aside $37.2 million for credit loss provisions in Q4, more than double the $17.9 million recorded in the same quarter last year, reflecting cautious seasoning of newer commercial portfolios. Following the earnings release, the stock dipped 3% in early trading as investors weighed the pull-forward of reserves. Management reiterated confidence in asset quality, noting nonperforming assets remain low at 0.18% of total loans.