Commerce Bancshares reported first-quarter 2026 earnings of $141.6 million, up from $131.6 million a year earlier and slightly above the $140.7 million earned in the fourth quarter of 2025. Earnings per share were 96 cents, compared with 93 cents in the first quarter of 2025 and $1.01 in the prior quarter.
Net interest income rose to $299.8 million, up $16.7 million from the fourth quarter and $30.7 million from a year earlier. Non-interest income increased to $175.9 million, a gain of $16.9 million, or 10.6%, from the same period last year and up $9.6 million from the prior quarter. Trust fees were a standout, climbing to $71.0 million from $56.6 million a year earlier, a jump of $14.5 million, or 25.5%.
Total revenue reached $475.7 million, up from $428.1 million in the first quarter of 2025 and $449.4 million in the fourth quarter. Investment securities gains were $11.6 million, compared with a loss of $7.6 million in last year’s first quarter and gains of $2.9 million in the prior quarter.
Non-interest expense rose to $291.1 million from $238.4 million a year earlier and $253.0 million in the fourth quarter. The company said $14.0 million of that increase was acquisition-related. Salaries and employee benefits climbed to $180.8 million from $153.1 million a year ago, while data processing and software expense rose to $38.3 million from $32.2 million.
Profitability measures softened from the prior quarter. Return on average assets was 1.62%, down from 1.73% in the fourth quarter and 1.69% a year earlier. Return on average equity fell to 13.22% from 14.70% in the prior quarter and 15.82% in the first quarter of 2025. The efficiency ratio increased to 60.0% from 56.2% in the fourth quarter and 55.6% a year earlier.
The balance sheet expanded sharply after the Finemark acquisition closed on Jan. 1. Total assets rose to $35.7 billion from $32.9 billion at year-end and $32.4 billion a year earlier. Total loans increased to $20.5 billion from $17.8 billion in the fourth quarter and $17.4 billion a year ago. Average loan balances were $20.3 billion, up $2.7 billion, or 15.2%, from the prior quarter.
Deposits also grew, reaching $28.4 billion at March 31 from $25.6 billion at Dec. 31 and $25.8 billion a year earlier. Average deposits were $27.7 billion, up $2.1 billion, or 8.2%, from the prior quarter. The average loans-to-deposits ratio rose to 73.44% from 69.01% in the fourth quarter.
Credit metrics remained solid but moved modestly higher. Annualized net loan charge-offs were 0.30% of average loans, compared with 0.22% in the prior quarter. The allowance for credit losses on loans rose to $198.6 million from $179.5 million at year-end, while the allowance-to-loans ratio improved to 0.97% from 1.01%.
Trust and wealth-related assets continued to build. Assets under administration increased by $14.9 billion, or 19.5%, from a year earlier. The company ended the quarter with 249 bank and ATM locations, up from 236 at year-end, and 4,960 full-time equivalent employees, compared with 4,667 in the fourth quarter.
Commerce also repurchased more than $84 million of common stock during the quarter. Book value per share rose to $29.64 from $27.75 at year-end and $24.94 a year earlier, while tangible common equity to tangible assets was 11.07%, down slightly from 11.11% in the fourth quarter and up from 10.33% a year earlier. The market has reacted to these announcements by moving the company's shares 0.93% to a price of $48.99. For the full picture, make sure to review COMMERCE BANCSHARES INC /MO/'s 8-K report.
