Commerce Bancshares reported fourth-quarter earnings of $1.01 per share, exceeding the Zacks Consensus Estimate of $0.99 and up from $0.96 in the same period a year ago. Net income for the quarter rose to $140.7 million, a 3.4% increase compared with $136.1 million in Q4 2024, reflecting strong cost discipline and modest loan growth in its core Midwest footprint.

The bank’s net interest income climbed by 9% year-over-year, supported by higher yields on newly originated commercial and consumer loans. Non-interest income expanded 7%, led by a 12% gain in wealth management fees and a 9% uptick in service charges on deposit accounts. Overall revenues increased by 8% to approximately $380 million, marking the tenth consecutive quarter of sequential revenue growth.

Management set aside $24 million for credit loss provisions in the quarter, up from $15 million in Q4 2024, citing seasoning of loan portfolios and early signs of stress in select commercial segments. The reserve build, though prudent, prompted a 2% decline in the bank’s share price on the day of the announcement. Executives emphasized the provisions remain within historical loss ranges and maintain a coverage ratio above peer averages.

For the year ended December 31, 2025, Commerce Bancshares delivered earnings per share of $4.04, up from $3.80 in 2024, driven by 7% compound annual growth in net interest income and disciplined expense management that kept operating costs flat. Looking ahead, the bank projects loan growth of 5–7% in 2026, continued emphasis on fee-generating businesses, and expects credit costs to normalize below 1.0% of average loans as economic conditions stabilize.