• Commerce Bancshares, Inc. reported fourth-quarter 2025 results showing higher net interest income of US$283.15 million and net income of US$140.66 million, alongside basic and diluted EPS of US$1.01, while net loan charge-offs eased to US$9.9 million.
• During the same quarter, the bank repurchased 2,200,000 shares for US$117.24 million, completing a long-running buyback that has retired 43,972,309 shares since 2005, materially reshaping its share count over time.
• Next, we will examine how Commerce Bancshares’ higher net interest income informs the company’s investment narrative and future risk-reward profile.

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What Is Commerce Bancshares' Investment Narrative?

To own Commerce Bancshares today, you have to believe in a steady regional bank story built around consistent profitability, disciplined credit and shareholder-friendly capital returns. The latest quarterly numbers broadly support that view: net interest income moved up to US$283.15 million, net income ticked higher to US$140.66 million, and earnings per share edged ahead despite the drag of a challenging rate backdrop. Net loan charge-offs easing to US$9.9 million help the near-term risk case, suggesting credit quality is holding up for now, while the completion of a long-running buyback meaningfully tightens the share base and reinforces the return-of-capital angle. That said, with earnings and revenue both expected to grow slower than the wider US market, the key short term catalyst remains incremental improvement in margin and asset quality, and any reversal there could matter more after this quarter’s reassuring, but not transformational, update.

However, one emerging risk around slower growth versus peers is easy to overlook at first glance. Despite retreating, Commerce Bancshares' shares might still be trading 45% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

With only two fair value estimates from the Simply Wall St Community, opinions span from US$62 to about US$96.55. You can weigh those varied views against the recent uptick in net interest income and still-elevated credit risk to judge how comfortably Commerce Bancshares might sustain its current performance.

Explore 2 other fair value estimates on Commerce Bancshares - why the stock might be worth as much as 83% more than the current price!

Build Your Own Commerce Bancshares Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.