25 unchanged sentences
Louis, Missouri.
−Removed: Customers are served from 243 locations in Missouri, Kansas, Illinois, Oklahoma and Colorado and commercial offices throughout the nation's midsection.
+Added: Customers are served from 236 locations primarily in Missouri, Kansas, Illinois, Oklahoma and Colorado and commercial offices throughout the nation's midsection.
A variety of delivery platforms are utilized, including an extensive network of branches and ATM machines, full-featured online banking, a mobile application, and a centralized contact center.
10 unchanged sentences
Total revenue in 2025 increased $108.3 million, or 6.5%, from 2024, as net interest income grew $71.6 million, and non-interest income increased $36.7 million.
−Removed: Growth in net interest income resulted principally from increases in interest income from loans, partly offset by an increase in interest expense on deposits.
−Removed: The increase in non-interest income in 2024 was mainly due to higher trust fees, supplemented by higher deposit account fees and capital market fees.
−Removed: • Non-interest expense — Total non-interest expense increased 2.2% this year compared to 2023, mainly due to higher salaries and employee benefits expense, partially offset by lower deposit insurance expense due to a special FDIC assessment accrued in 2023.
−Removed: • Asset quality — Net loan charge-offs totaled $38.9 million in 2024, an increase of $7.8 million from those recorded in 2023, and averaged .23% of loans in 2024, as compared to .19% of loans in 2023.
+Added: Growth in net interest income resulted principally from increases in interest income from investment securities, and a decrease in interest expense on borrowings and deposits.
+Added: The increase in non-interest income in 2025 was mainly due to higher trust fees and deposit account fees, partly offset by lower bank card fees.
+Added: • Non-interest expense — Total non-interest expense increased 3.0% this year compared to 2024, mainly due to higher salaries and employee benefits expense and professional and other services expense, partially offset by lower deposit insurance expense.
+Added: • Asset quality — Net loan charge-offs totaled $40.7 million in 2025, an increase of $1.8 million from those recorded in 2024, and averaged .23% of loans in both 2025 and 2024.
Total non-performing assets, which include non-accrual loans and foreclosed real estate, amounted to $17.0 million at December 31, 2025, compared to $18.6 million at December 31, 2024, and represented .10% of loans outstanding at December 31, 2025.
• Shareholder return — During 2025, the Company paid cash dividends of $1.05 per share on its common stock, representing an increase of 6.9% over the previous year.
−Removed: In 2024, the Company issued its 31st consecutive annual 5%
−Removed: common stock dividend, and in February 2025, the Company's Board of Directors authorized an increase of 7.0% in the common cash dividend.
+Added: In 2025, the Company issued its 32nd consecutive annual 5% common stock dividend, and in February 2026, the Company's Board of Directors authorized an increase of 5.0% in
+Added: the common cash dividend.
The Company purchased 3,608,530 shares in 2025.
37 unchanged sentences
(4) The tangible common equity to tangible assets ratio is a measurement which management believes is a useful indicator of capital adequacy and utilization.
−Removed: It provides a meaningful basis for period to period and company to company comparisons, and also assist regulators, investors and analysts in analyzing the financial position of the Company.
+Added: It provides a meaningful basis for period to period and company to company comparisons, and also assists regulators, investors and analysts in analyzing the financial position of the Company.
Tangible common equity and tangible assets are non-GAAP measures and should not be viewed as substitutes for, or superior to, data prepared in accordance with GAAP.
30 unchanged sentences
Diluted income per common share was $4.04 in 2025, compared to $3.69 in 2024.
+Added: The growth in net income resulted mainly from increases of $71.6 million in net interest income and $36.7 million in non-interest income, partly offset by increases in non-interest expense and the provision for credit losses of $28.6 million and $23.2 million, respectively.
+Added: The return on average assets was 1.79% in 2025 compared to 1.72% in 2024, and the return on average common equity was 15.76% in 2025 compared to 16.66% in 2024.
+Added: At December 31, 2025, the ratio of tangible common equity to tangible assets increased to 11.11%, compared to 9.92% at year end 2024.
+Added: During 2025, net interest income grew mainly due to an increase of $38.4 million in interest income earned on investment securities and $19.7 million in interest income on securities purchased under resell agreements, both due to higher average balances and rates, and a decrease of $39.7 million in interest expense on deposits, mainly due to lower average rates.
+Added: These increases to net interest income were partly offset by a decrease of $26.3 million in interest earned on loans, due to lower average rates, partly offset by higher average balances.
+Added: Total rates earned on average interest earning assets decreased six basis points this year, while funding costs decreased 28 basis points for deposits and 69 basis points for borrowings.
+Added: The provision for credit losses increased mainly due to higher net loan charge-offs and an increase in the estimate of the allowance for credit losses on loans this year compared to last year.
+Added: These increases were slightly offset by a decrease in the liability for unfunded lending commitments.
+Added: Net loan charge-offs increased $1.8 million, mainly due to higher consumer credit card and business loan net charge-offs in 2025.
+Added: Non-interest income grew 6.0% in 2025, mainly due to increases in trust fees and deposit account fees.
+Added: Net investment securities gains of $3.7 million were recorded in 2025 and were comprised mainly of fair value gains on the Company's private equity investment portfolio, partly offset by losses on sales of available for sale debt securities.
+Added: Non-interest expense increased $28.6 million in 2025 compared to 2024, mainly due to higher salaries and benefits expense, data processing and software expense and professional and other services expense.
+Added: Net income for 2024 was $526.3 million, an increase of $49.3 million, or 10.3%, compared to $477.1 million in 2023.
+Added: Diluted income per common share was $3.69 in 2024, compared to $3.30 in 2023.
The growth in net income resulted mainly from increases of $42.5 million in non-interest income and $42.1 million in net interest income, partly offset by increases in non-interest expense and income taxes of $20.2 million and $10.5 million, respectively.
2 unchanged sentences
During 2024, net interest income grew mainly due to an increase of $78.4 million in interest income earned on loans, mainly due to higher average rates, and a decrease of $43.9 million in interest expense on borrowings, mainly due to lower average balances, partly offset by an increase in interest expense on deposits of $90.0 million, mainly due to higher average rates paid.
−Removed: Total rates earned on average interest earning assets increased 52 basis points this year, while funding costs increased 52 basis points for deposits and decreased 28 basis points for borrowings.
−Removed: The provision for credit losses increased mainly due to higher net loan charge-offs and an increase in the estimate of the allowance for credit losses on loans this year compared to last year.
+Added: Total rates earned on average interest earning assets increased 52 basis points in 2024, while funding costs increased 52 basis points for deposits and decreased 28 basis points for borrowings.
+Added: The provision for credit losses increased mainly due to higher net loan charge-offs and an increase in the estimate of the allowance for credit losses on loans this year compared to 2023.
These increases were partly offset by a decrease in the liability for unfunded lending commitments.
3 unchanged sentences
Non-interest expense increased $20.2 million in 2024 compared to 2023, mainly due to higher salaries and benefits expense and data processing and software expense, partly offset by a decrease in deposit insurance expense.
−Removed: Net income for 2023 was $477.1 million, a decrease of $11.3 million, or 2.3%, compared to $488.4 million in 2022.
−Removed: Diluted income per common share was $3.46 in 2023, compared to $3.50 in 2022.
−Removed: The decrease in net income resulted mainly from an increase of $82.2 million in non-interest expense, partly offset by increases in net interest income of $55.9 million and non-interest income of $26.5 million.
−Removed: The return on average assets was 1.49% in 2023 compared to 1.45% in 2022, and the return on average common equity was 17.94% in 2023 compared to 17.31% in 2022.
−Removed: At December 31, 2023, the ratio of tangible common equity to tangible assets increased to 8.85%, compared to 7.32% at year end 2022.
−Removed: During 2023, net interest income grew mainly due to increases of $338.1 million in interest income earned on loans and $88.2 million in interest income earned on deposits with banks, mainly due to higher average rates, partly offset by increases in interest expense on deposits and borrowings of $215.7 million and $110.2 million, respectively, mainly due to higher average rates paid.
−Removed: Total rates earned on average interest earning assets increased 134 basis points in 2023, while funding costs for deposits and borrowings increased 156 basis points.
−Removed: The provision for credit losses increased mainly due to higher net loan charge-offs and an increase in the estimate of the allowance for credit losses in 2023 compared to 2022.
−Removed: Net loan charge-offs increased $12.0 million, mainly due to higher credit card, consumer and business loan net charge-offs in 2023.
−Removed: Non-interest income grew 4.9% in 2023, mainly due to increases in bank card and trust fees.
−Removed: Net investment securities gains of $15.0 million were recorded in 2023 and were comprised mainly of net fair value gains on the Company's private equity
−Removed: investment portfolio, partly offset by losses on sales of available for sale securities.
−Removed: Non-interest expense increased $82.2 million in 2023 compared to 2022, mainly due to higher salaries and benefits expense and deposit insurance expense.
−Removed: The Company distributed a 5% stock dividend for the 31st consecutive year on December 18, 2024.
+Added: The Company distributed a 5% stock dividend for the 32nd consecutive year on December 16, 2025.
All per share and average share data in this report has been restated for the 2025 stock dividend.
22 unchanged sentences
Assumptions, Judgments, and Uncertainties:
−Removed: The uncertainty in the estimation of the allowance for credit losses is created because key assumptions and judgements are applied throughout the process.
−Removed: Key assumptions include segmentation of the portfolio into pools, calculations of life of a loan using a combination of contractual terms and expected prepayment speeds and forecast of macroeconomic conditions.
+Added: The uncertainty in the estimation of the allowance for credit losses is created because key assumptions and judgments are applied throughout the process.
+Added: Key assumptions include segmentation
+Added: of the portfolio into pools, calculations of life of a loan using a combination of contractual terms and expected prepayment speeds and forecast of macroeconomic conditions.
The Company utilizes a third-party macro-economic forecast that continuously changes due to economic conditions and events.
−Removed: The single path economic forecast includes key
−Removed: macroeconomic variables including GDP, disposable income, unemployment rate, various interest rates, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility.
+Added: The single path economic forecast includes key macroeconomic variables including GDP, disposable income, unemployment rate, various interest rates, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility.
Each reporting period, the base macroeconomic forecast scenario is evaluated to ensure it is not inconsistent with management’s expectations.
29 unchanged sentences
Investment securities, including available for sale debt, trading, equity and other securities, residential mortgage loans held for sale, derivatives and deferred compensation plan assets and associated liabilities are recorded at fair value on a recurring basis.
−Removed: Additionally, from time to time, other assets and liabilities may be recorded at fair value on a nonrecurring basis, such as
−Removed: loan values that have been reduced based on the fair value of the underlying collateral, other real estate (primarily foreclosed property), non-marketable equity securities and certain other assets and liabilities.
+Added: Additionally, from time to time, other assets and liabilities may be recorded at fair value on a nonrecurring basis, such as loan values that have been reduced based on the fair value of the underlying collateral, other real estate (primarily foreclosed property), non-marketable equity securities and certain other assets and liabilities.
These nonrecurring fair value adjustments typically involve write-downs of individual assets or application of lower of cost or fair value accounting.
82 unchanged sentences
$ 47,703 $ 24,278 $ 71,981 $ 45,035 $ (2,249) $ 42,786
−Removed: Net interest income totaled $1.0 billion in 2024, increasing $42.1 million, or 4.2%, compared to $998.1 million in 2023.
+Added: Net interest income totaled $1.1 billion in 2025, increasing $71.6 million, or 6.9%, compared to $1.0 billion in 2024.
On a fully taxable-equivalent (FTE) basis, net interest income totaled $1.1 billion, and increased $72.0 million over 2024.
+Added: This growth was mainly due to increases of $38.4 million in interest earned on investment securities (FTE), due to higher average balances and rates earned and a decrease of $39.7 million in interest expense on interest bearing deposits, mainly due to lower average rates paid.
+Added: These increases to income were partly offset by a decrease of $25.9 million in interest earned on loans (FTE), due to lower average rates earned, partly offset by higher average balances.
+Added: The net yield on earning assets (FTE) was 3.63% in 2025 compared with 3.47% in 2024.
+Added: The fully taxable-equivalent basis uses a federal income tax rate of 21%.
+Added: During 2025, loan interest income (FTE) declined $25.9 million from 2024 mainly due to a decrease in rates earned, partly offset by growth of $387.3 million, or 2.3%, in average loan balances.
+Added: The average fully taxable-equivalent rate earned on the loan portfolio decreased 29 basis points to 5.97% in 2025 compared to 6.26% in 2024.
+Added: The rates earned on the loan portfolio were impacted by actions taken by the Federal Reserve in 2025 and 2024 to lower short-term interest rates, which caused most of the Company's variable rate loan portfolio to re-price lower and fixed rate loans to originate at lower interest rates than the weighted-average of the portfolio of fixed rate loans.
+Added: Lower interest earned on construction and land, business real estate and business loans was the main driver of overall lower loan interest income.
+Added: Interest on construction and land loans decreased $15.7 million due to a 96 basis point decline in the average rate earned and a $26.0 million, or 1.8%, decrease in the average balance.
+Added: Business real estate loan interest decreased $9.3 million as the average rate earned decreased 33 basis points, while the average balance increased $49.5 million, or 1.4%.
+Added: Business loan interest income decreased $7.1 million due to a 39 basis point decrease in the average rate earned, partly offset by an increase of $279.8 million, or 4.7%, in average balances.
+Added: Interest on consumer credit card loans was lower by $4.0 million due to a decrease of 75 basis points in the average rate earned.
+Added: Consumer loan interest income decreased $103 thousand mainly due to a decrease of 13 basis points in the average rate earned, mostly offset by an increase of $41.7 million, or 2.0%, in the average balance.
+Added: The decreases in loan interest income were partly offset by an increase in personal real estate loan interest of $8.5 million as a result of an increase of 26 basis points in the average rate earned.
+Added: In addition, revolving home equity loan interest increased $1.8 million due to growth in average balances of $29.8 million, or 8.9%.
+Added: Fully taxable-equivalent interest income on total investment securities increased $38.4 million during 2025, as the average rate earned increased 43 basis points, while average balances declined $236.5 million.
+Added: The average rate on the total investment securities portfolio was 3.06% in 2025 compared to 2.63% in 2024, while the average balance of the total investment securities portfolio (excluding unrealized fair value adjustments on available for sale debt securities) was $10.2 billion in 2025 compared to an average balance of $10.4 billion in 2024.
+Added: The increase in interest income was mainly due to higher interest income earned on U.S.
+Added: government and asset-backed securities, partly offset by lower interest earned on mortgage-backed and state and municipal securities.
+Added: Interest earned on U.S.
+Added: government securities increased $53.6 million due to higher average balances of $1.2 billion, or 73.2%, and an increase in the average rate earned of 33 basis points.
+Added: Contributing to the increase in interest earned on U.S.
+Added: government securities was growth of $2.4 million in inflation income on treasury inflation-protected securities (TIPS).
+Added: Interest earned on asset-backed securities increased $9.7 million, due to growth of 105 basis points in the average rate earned, partly offset by a decline in average balances of $230.5 million, or 13.2%.
+Added: Interest earned on mortgage-backed securities decreased $19.1 million due to lower average balances of $808.5 million, or 15.1%, and a decrease of four basis points in the average rate earned.
+Added: The decrease of $4.6 million in interest earned on state and municipal securities was mainly due to a decline of $255.2 million, or 25.0%, in average balances.
+Added: Interest on securities purchased under resell agreements increased $19.7 million compared to 2024 due to a $412.9 million, or 97.9%, increase in average balances and growth of 79 basis points in the average rate earned.
+Added: Interest income on balances at the Federal Reserve decreased $17.6 million from 2024, due to a decline in the average rate earned of 96 basis points, partly offset by an increase in average balances of $104.8 million, or 4.5%.
+Added: During 2025, interest expense on deposits decreased $39.7 million from 2024 and resulted from a 28 basis point decrease in the overall average rate paid on deposits, slightly offset by an increase in average balances of $475.8 million, or 2.8%.
+Added: Interest expense on interest checking and money market accounts decreased $16.5 million due to lower rates paid, which declined 20 basis points, partly offset by growth in average balances of $646.1 million, or 4.8%.
+Added: Interest expense on certificates of deposit declined $23.2 million, due to a 71 basis point decrease in the average rate paid, coupled with a $144.0 million decrease in average balances.
+Added: The overall rate paid on total deposits decreased from 1.96% in 2024 to 1.68% in the current year.
+Added: Interest expense on borrowings decreased $17.7 million mainly due to a 69 basis point decrease in the average rate paid.
+Added: Interest expense on federal funds purchased decreased $6.7 million, due to a $100.2 million decline in average balances and a 106 basis point decrease in the average rate paid.
+Added: Interest expense on securities sold under repurchase agreements decreased $11.0 million due to a 60 basis point decrease in the average rate earned, partly offset by an increase of $118.9 million in average balances.
+Added: The overall average rate incurred on all interest bearing liabilities was 1.83% in 2025, compared to 2.17% in 2024.
+Added: Net interest income totaled $1.0 billion in 2024, increasing $42.1 million, or 4.2%, compared to $998.1 million in 2023.
+Added: On an FTE basis, net interest income totaled $1.0 billion, and increased $42.8 million over 2023.
This growth was due to increases of $79.6 million in interest earned on loans (FTE), due to higher average rates and balances, and $18.2 million in interest earned on balances at the Federal Reserve, due to higher average balances, and a decrease of $44.8 million in interest expense on borrowings, mainly due to lower average balances.
1 unchanged sentence
The net yield on earning assets (FTE) was 3.47% in 2024 compared with 3.16% in 2023.
−Removed: The fully taxable-equivalent basis uses a federal income tax rate of 21%.
During 2024, loan interest income (FTE) grew $79.6 million over 2023 mainly due to an increase in rates earned for all loan categories and growth of $310.2 million, or 1.8%, in average loan balances.
The average fully taxable-equivalent rate earned on the loan portfolio increased 36 basis points to 6.26% in 2024 compared to 5.90% in 2023.
−Removed: The higher rates earned on the loan portfolio were impacted by actions taken by the Federal Reserve in 2024 to lower short-term interest rates, which caused most of the Company's variable rate loan portfolio to re-price lower and fixed rate loans to originate at lower interest rates than the weighted-average of the portfolio of fixed rate loans.
Increased interest earned on business, consumer, personal real estate and business real estate loans was the main driver of overall higher loan interest income.
2 unchanged sentences
Personal real estate loan interest grew $13.0 million in 2024 compared to 2023 as a result of an increase of 35 basis points in the average rate earned and higher average balances of $63.8 million, or 2.14%.
−Removed: Interest on construction and land loans grew $1.3 million over the prior year due to growth in the average rate earned of 29 basis points, partly offset by a decrease of $35.0 million, or 2.4%, in average loan balances.
+Added: Interest on construction and land loans grew $1.3 million over 2023 due to growth in the average rate earned of 29 basis points, partly offset by a decrease of $35.0 million, or 2.4%, in average loan balances.
Interest on business real estate loans increased $12.5 million as the average rate earned increased 21 basis points and the average balance grew $75.3 million, or 2.1%.
3 unchanged sentences
The average rate on the total investment securities portfolio was 2.63% in 2024 compared to 2.29% in 2023, while the average balance of the total investment securities portfolio (excluding unrealized fair value adjustments on available for sale debt securities) was $10.4 billion in 2024 compared to an average balance of $12.4 billion in 2023.
−Removed: The decrease in interest income was mainly due to lower interest income earned on mortgage-backed securities, asset-backed securities and state and municipal securities, partly offset by an higher interest income earned on U.S.
+Added: The decrease in interest income was mainly due to lower interest income earned on mortgage-backed, asset-backed and state and municipal securities, partly offset by higher interest income earned on U.S.
government securities.
1 unchanged sentence
Interest earned on asset-backed securities decreased $12.8 million, due to a decline in average balances of $991.4 million, partly offset by an increase of 48 basis points in the average rate earned.
−Removed: The decrease of $10.9 million in interest earned on state and municipal securities was due to a decrease of $497.5 million in average balances and a decline of seven basis points in average rate earned.
+Added: The decrease of $10.9 million in interest earned on state and municipal securities was due to a decrease of $497.5 million in average balances and a decline of seven basis points in the average rate earned.
Interest earned on U.S.
−Removed: government securities increased $35.9 million mainly due to higher average balances of $601.7 million, or 60.0%, and an increase in average rate earned of 130 basis points.
+Added: government securities increased $35.9 million mainly due to higher average balances of $601.7 million, or 60.0%, and an increase in the average rate earned of 130 basis points.
Interest earned on U.S.
−Removed: government securities was impacted by a decline of $2.5 million in inflation income on treasury inflation-protected securities (TIPS).
+Added: government securities was impacted by a decline of $2.5 million in inflation TIPS income.
Interest on federal funds sold decreased $610 thousand and interest on securities purchased under resell agreements decreased $291 thousand compared to 2023 both due to declines in average balances, partly offset by growth in the average rate earned.
3 unchanged sentences
Interest expense on certificates of deposit grew $9.5 million, due to a 33 basis point increase in the average rate paid, coupled with a $33.1 million increase in average balances.
−Removed: The overall rate paid on total deposits increased from 1.44% in 2023 to 1.96% in the current year.
+Added: The overall rate paid on total deposits increased from 1.44% in 2023 to 1.96% in 2024.
Interest expense on borrowings decreased $44.8 million mainly due to a $975.0 million decrease in average balances.
−Removed: Interest expense on federal funds purchased decreased $13.0 million, mainly due to a $265.7 million decline in average balances, while interest expense on securities sold under repurchase agreements increased $7.7 million due to a 26 basis point increase in average rate earned and an increase of $47.4 million in average balances.
+Added: Interest expense on federal funds purchased decreased $13.0 million, mainly due to a $265.7 million decline in average balances, while interest expense on securities sold under repurchase agreements increased $7.7 million due to a 26 basis point increase in the average rate earned and an increase of $47.4 million in average balances.
Interest expense on Federal Home Loan Bank (FHLB) borrowings declined $39.5 million due to a decline of $756.7 million in average balances.
1 unchanged sentence
The overall average rate incurred on all interest bearing liabilities was 2.17% in 2024, compared to 1.86% in 2023.
−Removed: Net interest income totaled $998.1 million in 2023, increasing $55.9 million, or 5.9%, compared to $942.2 million in 2022.
−Removed: On a FTE basis, net interest income totaled $1.0 billion, and increased $54.9 million over 2022.
−Removed: This growth was mainly due to increases of $339.4 million in interest earned on loans and $88.2 million in interest earned on balances at the Federal Reserve, both mainly due to higher average rates earned.
−Removed: These increases were partly offset by an increase of $325.9 million in interest expense on deposits and borrowings, mainly due to higher average rates paid, and lower interest earned on investment securities of $38.0 million, mainly due to lower average balances.
−Removed: The net yield on earning assets (FTE) was 3.16% in 2023 compared with 2.85% in 2022.
−Removed: During 2023, loan interest income (FTE) grew $339.4 million over 2022 mainly due to an increase in rates earned for all loan categories and a $1.2 billion, or 7.8%, increase in average loan balances.
−Removed: The average fully taxable-equivalent rate earned on the loan portfolio increased 172 basis points to 5.90% in 2023 compared to 4.18% in 2022.
−Removed: The higher rates earned on the loan portfolio were partly related to actions taken by the Federal Reserve to raise short-term interest rates during 2022 and 2023, which caused most of the Company's variable rate loan portfolio to re-price higher.
−Removed: Additionally, fixed rate loans were generally originated in 2023 at higher interest rates than the weighted-average of the portfolio of fixed rate loans.
−Removed: Increased interest earned on business, business real estate and construction and land loans was the main driver of overall higher interest income.
−Removed: Business loan interest income increased $128.3 million due to a 196 basis point increase in the average rate earned and an increase of $405.2 million, or 7.5%, in average balances.
−Removed: Business real estate loan interest grew $80.2 million in 2023 compared to 2022 as a result of an increase of 181 basis points in the average rate earned and higher average balances of $372.0 million, or 11.6%.
−Removed: Interest earned on construction and land loans increased $55.3 million due to an increase of 292 basis points in the average rate earned and growth of $243.8 million, or 19.8%, in average balances.
−Removed: Interest on personal real estate loans increased $15.9 million as the average rate earned increased 38 basis points and the average balance grew $137.4 million.
−Removed: Interest on consumer loans grew $37.3 million over 2022 as the average rate earned increased 174 basis points.
−Removed: Revolving home equity loan interest increased $10.2 million due to an increase of 301 basis points in the average rate earned and growth in average balances of $22.7 million.
−Removed: Interest on consumer credit card loans was higher by $12.4 million due to an increase of 191 basis points in the average rate earned and a $14.0 million increase in average balances.
−Removed: Fully taxable-equivalent interest income on total investment securities decreased $38.0 million during 2023, as average balances declined $2.6 billion, while the average rate earned increased 14 basis points.
−Removed: The average rate on the total investment securities portfolio was 2.29% in 2023 compared to 2.15% in 2022, while the average balance of the total investment securities portfolio (excluding unrealized fair value adjustments on available for sale debt securities) was $12.4 billion in 2023 compared to an average balance of $14.9 billion in 2022.
−Removed: The decrease in interest income was mainly due to lower interest income earned on U.S.
−Removed: government securities, state and municipal securities and mortgage-backed securities.
−Removed: Interest earned on U.S.
−Removed: government securities decreased $16.2 million mainly due to lower TIPS interest income of $14.3 million.
−Removed: Average balances of U.S.
−Removed: government securities decreased $96.0 million and the average rate earned declined 125 basis points.
−Removed: The decrease of $15.8 million in interest earned on state and municipal securities was due to a decrease of $542.8 million in average balances and a decline of 23 basis points in average rate earned.
−Removed: Interest earned on mortgage-backed securities decreased $7.0 million due to a lower average balances of $742.6 million, partly offset by an increase of 12 basis points in the average rate earned.
−Removed: Interest earned on asset-backed securities decreased $398 thousand, due to a decline in average balances of $1.2 billion, mostly offset by an increase of 62 basis points in the average rate earned.
−Removed: Interest on securities purchased under resell agreements decreased $9.0 million compared to 2022 due to a decrease in average balances of $793.8 million, partly offset by growth of 43 basis points in the average rate.
−Removed: Interest income on balances at the Federal Reserve increased $88.2 million over 2022, mainly due to a 416 basis point increase in the average rate earned and growth in average balances of $597.3 million.
−Removed: During 2023, interest expense on deposits increased $215.7 million over 2022 and resulted mainly from a 126 basis point increase in the overall average rate paid on deposits.
−Removed: Interest expense on interest checking and money market accounts increased $121.3 million mainly due to higher rates paid, which grew 94 basis points, slightly offset by lower average balances of $1.4 billion.
−Removed: Interest expense on certificates of deposit grew $94.4 million, mainly due to a 350 basis point increase in the average rate paid, coupled with a $1.4 billion increase in average balances.
−Removed: The overall rate paid on total deposits increased from .18% in 2022 to 1.44% in 2023.
−Removed: Interest expense on borrowings increased $110.2 million mainly due to a 210 basis point increase in the rate paid on securities sold under repurchase agreements and an increase in $711.3 million in average FHLB borrowings.
−Removed: The Company did not have any outstanding FHLB borrowings at December 31, 2023.
−Removed: The overall average rate incurred on all interest bearing liabilities was 1.86% in 2023, compared to .30% in 2022.
Provision for Credit Losses
The provision for credit losses is comprised of provisions for credit losses on loans and unfunded lending commitments and is recorded to adjust the allowance for credit losses on loans and the liability for unfunded lending commitments to a level deemed adequate by management based on the factors mentioned in the “Allowance for Credit Losses on Loans and Liability for Unfunded Lending Commitments” section of this discussion.
−Removed: The provision for credit losses was $32.9 million in 2024, a decrease of $2.5 million from the 2023 provision.
+Added: The provision for credit losses was $56.1 million in 2025, an increase of $23.2 million from the 2024 provision.
The provision for credit losses on loans for the year ended December 31, 2025 was $57.4 million, compared to $39.2 million in 2024.
−Removed: The allowance for credit losses on loans totaled $162.7 million at December 31, 2024, an increase of $347 thousand compared to the prior year, and represented .95% of loans at year end 2024, compared to .94% at December 31, 2023.
+Added: The allowance for credit losses on loans totaled $179.5 million at December 31, 2025, an increase of $16.7 million compared to the prior year, and represented 1.01% of loans at year end 2025, compared to .95% at December 31, 2024.
The provision for unfunded lending commitments was a benefit of $1.3 million during 2025, compared to a benefit of $6.3 million in 2024.
7 unchanged sentences
108,246 100,336 90,992 7.9 10.3
−Removed: Capital market fees
−Removed: 19,776 14,100 14,231 40.3 (.9)
Consumer brokerage services
22,051 18,141 17,223 21.6 5.3
+Added: Capital market fees
+Added: 20,655 19,776 14,100 4.4 40.3
Loan fees and sales
23 unchanged sentences
The market value of total customer trust assets totaled $81.6 billion at year end 2025, which was an increase of 9.1% over year end 2024 balances.
−Removed: Bank card fees decreased $1.4 million, or .7%, from the prior year, mainly due to a decrease in net corporate card fees of $4.0 million, partly offset by increases in net credit card fees of $1.6 million, net debit card fees of $636 thousand and net merchant fees of $407 thousand.
−Removed: The decline in net corporate card fees from the prior year was mainly due to lower interchange income coupled with higher rewards expense.
+Added: Bank card fees decreased $5.5 million, or 2.9%, from the prior year, mainly due to decreases in net corporate card fees of $3.9 million, net credit card fees of $1.6 million and net debit card fees of $488 thousand, partly offset by an increase in net merchant fees of $528 thousand.
+Added: The decline in net corporate card fees from the prior year was mainly due to higher rewards expense.
+Added: Net debit card fees decreased mainly due to lower interchange income, while net credit card fees decreased due to higher rewards expense.
+Added: Net merchant fees increased mainly due to lower interchange and royalty fee expense, partly offset by lower merchant discount fee revenue.
+Added: Deposit account fees increased $7.9 million, or 7.9%, mainly due to higher corporate cash management fees of $7.4 million.
+Added: In 2025, corporate cash management fees comprised 66.7% of total deposit fees, while overdraft fees comprised 10.7% of total deposit fees.
+Added: Revenue from consumer brokerage services increased $3.9 million, or 21.6%, mainly due to higher annuity fees, advisory fees and life insurance income.
+Added: Capital markets fees increased $879 thousand, or 4.4%, mainly due to higher gains on trading securities, while loan fees and sales increased $992 thousand, or 7.7%, mainly due to higher loan commitment fees and mortgage banking revenue.
+Added: Other non-interest income increased $10.3 million, or 17.1%, over the prior year mainly due to higher gains on asset sales of $3.8 million, tax credit sales fees of $2.2 million, cash sweep commissions of $2.0 million and international fees of $802 thousand.
+Added: Additionally, an increase in fair value adjustments of $1.4 million was recorded on the Company's deferred compensation plan assets and liabilities, which affect both other income and other expense.
+Added: During 2024, non-interest income totaled $615.6 million, an increase of $42.5 million, or 7.4%, compared to $573.0 million in 2023.
+Added: Trust fee income increased $23.5 million, or 12.3%, mainly as a result of higher private client trust fees (up 13.1%), which comprised 81.0% of trust fee income in 2024.
+Added: The market value of total customer trust assets totaled $74.8 billion at year end 2024, which was an increase of 8.6% over year end 2023 balances.
+Added: Bank card fees decreased $1.4 million, or .7%, from 2023, mainly due to a decrease in net corporate card fees of $4.0 million, partly offset by increases in net credit card fees of $1.6 million, net debit card fees of $636 thousand and net merchant fees of $407 thousand.
+Added: The decline in net corporate card fees from 2023 was mainly due to lower interchange income coupled with higher rewards expense.
Net debit card fees increased mainly due to higher interchange income, while net credit card fees increased due to lower rewards expense.
−Removed: Net merchant fees increased mainly due to higher merchant discount fees, partly offset by lower interchange fees.
+Added: merchant fees increased mainly due to higher merchant discount fees, partly offset by lower interchange fees.
Deposit account fees increased $9.3 million, or 10.3%, mainly due to higher corporate cash management fees of $8.5 million and other deposit fees of $894 thousand.
2 unchanged sentences
Revenue from consumer brokerage services increased $918 thousand, or 5.3%, mainly due to higher annuity fees, while loan fees and sales increased $1.7 million, or 15.5%, mainly due to higher loan commitment fees and mortgage banking revenue.
−Removed: Other non-interest income increased $2.7 million, or 4.8%, over the prior year mainly due to higher gains on asset sales of $2.5 million, cash sweep commissions of $2.2 million and tax credit sales income of $2.1 million.
+Added: Other non-interest income increased $2.7 million, or 4.8%, over 2023 mainly due to higher gains on asset sales of $2.5 million, cash sweep commissions of $2.2 million and tax credit sales fees of $2.1 million.
These increases were partly offset by lower letter of credit fees of $2.3 million and swap fees of $1.2 million.
−Removed: During 2023, non-interest income totaled $573.0 million, an increase of $26.5 million, or 4.9%, compared to $546.5 million in 2022.
−Removed: Bank card fees increased $15.0 million, or 8.5%, over 2022, mainly due to increases in net corporate card fees of $10.6 million, net debit card fees of $2.9 million and net merchant fees of $1.6 million.
−Removed: The growth in net corporate card fees over 2022 was mainly due to lower rewards and network expense coupled with higher interchange income.
−Removed: Net debit card fees increased mainly due to lower network expense, while net merchant fees increased mainly due to higher merchant discount fees.
−Removed: Trust fee income increased $6.2 million, or 3.4%, as a result of higher private client trust fees (up 4.3%), which comprised 80.4% of trust fee income in 2023.
−Removed: The market value of total customer trust assets totaled $68.9 billion at year end 2023, which was an increase of 14.2% over year end 2022 balances.
−Removed: Deposit account fees decreased $3.4 million, or 3.6%,
−Removed: mainly due to lower overdraft and return item fees of $8.3 million, partly offset by growth in corporate cash management fees of $3.8 million.
−Removed: In 2023, corporate cash management fees comprised 61.9% of total deposit fees, while overdraft fees comprised 12.8% of total deposit fees.
−Removed: Revenue from consumer brokerage services decreased $1.9 million, or 9.9%, mainly due to lower annuity fees, while loan fees and sales decreased $2.0 million, or 15.0%, mainly due to lower mortgage banking revenue.
−Removed: Other non-interest income increased $12.7 million, or 28.2%, over 2022 mainly due to higher letter of credit fees of $3.2 million, cash sweep commissions of $2.9 million, gains on the sale of real estate of $2.1 million and swap fees of $1.1 million.
−Removed: In addition, increases of $6.4 million in fair value adjustments were recorded on the Company's deferred compensation plan, which are held in a trust and recorded as both an asset and a liability, affecting both other income and other expense.
−Removed: These increases were partly offset by lower tax credit sales income of $2.4 million.
Investment Securities Gains (Losses), Net
12 unchanged sentences
The portions of private equity investment gains and losses that are attributable to minority interests are reported as non-controlling interest in the consolidated statements of income, and resulted in expense of $2.1 million in 2025, $4.2 million in 2024, and $4.8 million in 2023.
+Added: Net securities gains of $3.7 million were recorded in 2025, which included net gains of $11.7 million in fair value adjustments on private equity investments and net gains of $1.4 million on equity securities.
+Added: These gains were offset by net losses of $8.4 million realized on sales of available for sale debt securities resulting from the Company's sale of approximately $78.6 million (book value) in bonds, mainly non-agency mortgage-backed securities and asset-backed securities, and net losses of $1.0 million on sales of private equity investments.
Net securities gains of $7.8 million were recorded in 2024, which included net gains of $178.1 million on equity securities, net gains of $24.1 million in fair value adjustments on private equity investments, and net gains of $1.9 million on sales of private equity investments.
2 unchanged sentences
This increase was partly offset by losses of $8.4 million realized on sales of available for sale debt securities resulting from the Company's sale of approximately $1.1 billion (book value) in bonds, mainly state and municipal securities and asset-backed securities, net losses of $100 thousand on sales of private equity investments, and net losses of $487 thousand on equity securities.
−Removed: Net securities gains of $20.5 million were recorded in 2022, which included net gains of $43.8 million in fair value adjustments on private equity investments.
−Removed: This increase was partly offset by losses of $20.3 million realized on sales of available for sale debt securities resulting from the Company's sale of approximately $105 million (book value) in bonds, mainly mortgage-backed and corporate bond securities, net losses of $2.1 million on sales of private equity investments, and net losses of $926 thousand on equity securities.
The Company's significant gains in equity securities for the year ended December 31, 2024 primarily relate to gains recorded on its shares of Visa, as described in Note 3, Investment Securities.
16 unchanged sentences
19,686 19,291 19,420 2.0 (.7)
−Removed: Deposit insurance 16,482 33,163 10,583 (50.3) N.M.
+Added: Deposit insurance 10,049 16,482 33,163 (39.0) (50.3)
38,296 48,932 41,692 (21.7) 17.4
9 unchanged sentences
Non-interest expense was $979.8 million in 2025, an increase of $28.6 million, or 3.0%, over the previous year.
+Added: Salaries and benefits expense increased $20.6 million, or 3.4%, mainly due to higher full-time salaries, incentive compensation and healthcare expense.
+Added: Full-time equivalent employees totaled 4,667 at December 31, 2025, compared to 4,693 at December 31, 2024.
+Added: Data processing and software expense increased $6.6 million, or 5.2%, primarily due to increased costs for service providers and higher software expense.
+Added: Net occupancy expense increased $1.1 million, or 2.1%, mainly due to higher building depreciation expense and demolition costs, partly offset by higher external rent income.
+Added: Professional and other services expense increased $13.8 million, or 39.3%, mainly due to higher legal, professional and loan recording fees.
+Added: Professional and other services expense included acquisition related expense of $5.6 million in 2025.
+Added: Marketing expense increased $2.3 million, or 10.4%, and equipment expense increased $889 thousand, or 4.3%, mainly due to higher furniture and equipment rental and service contract expense.
+Added: Supplies and communication expense increased $395 thousand, or 2.0%, while deposit insurance expense decreased $6.4 million mainly due to accrual adjustments in 2024 and 2025 related to the FDIC's special assessment to replenish the Deposit Insurance Fund.
+Added: Other non-interest expense decreased $10.6 million, or 21.7%, mainly due to litigation settlement expense of $10.0 million, net of insurance, and a $5.0 million donation to a related charitable foundation, both recorded in 2024.
+Added: In addition, a $1.5 million reimbursement related to a litigation settlement was recorded in 2025.
+Added: These decreases were partly offset by higher in travel and entertainment expense of $1.3 million, and an increase in fair value adjustments of $1.4 million recorded on the Company's deferred compensation plan assets and liabilities.
+Added: In 2024, non-interest expense was $951.2 million, an increase of $20.2 million, or 2.2%, over 2023.
Salaries and benefits expense increased $23.8 million, or 4.1%, mainly due to higher costs for full-time salaries, incentive compensation, payroll taxes and 401(k) expense, slightly offset by lower contract labor expense.
4 unchanged sentences
Marketing expense decreased $2.2 million, or 8.8%, while equipment expense increased $1.1 million, or 5.5%, mainly due to higher furniture and equipment depreciation expense.
−Removed: Supplies and communication expense decreased $129 thousand, or .7%, while deposit insurance expense decreased $16.7 million due to a $16.0 million accrual recorded in 2023 for a one-time special assessment by the FDIC to replenish the Deposit Insurance Fund.
+Added: Supplies and communication expense decreased $129 thousand, or .7%, while deposit insurance expense decreased $16.7 million due to a $16.0 million accrual recorded in 2023 for a special assessment by the FDIC to replenish the Deposit Insurance Fund.
Other non-interest expense increased $7.2 million, or 17.4%, mainly due to litigation settlement expense of $10.0 million and a $5.0 million donation to a related charitable foundation, both recorded in 2024.
These increases were partly offset by deconversion costs of $2.1 million recorded in 2023, as well as decreases in swap fee amortization expense of $859 thousand, travel and entertainment expense of $687 thousand and recruiting expense of $489 thousand.
−Removed: In 2023, non-interest expense was $931.0 million in 2023, an increase of $82.2 million, or 9.7%, over 2022.
−Removed: Salaries and benefits expense increased $30.0 million, or 5.4%, mainly due to higher costs for full-time salaries, healthcare expense and payroll taxes, partly offset by lower incentive compensation expense.
−Removed: Full-time equivalent employees totaled 4,718 at December 31, 2023, compared to 4,594 at December 31, 2022.
−Removed: Data processing and software expense increased $8.1 million, or 7.3%, primarily due to increased costs for service providers and higher bank card processing fees.
−Removed: Net occupancy expense increased $4.5 million, or 9.2%, mainly due to higher depreciation expense and real estate taxes, partly offset by higher rent income.
−Removed: Deposit insurance expense increased $22.6 million due to a $16.0 million one-time special assessment accrual recorded the fourth quarter of 2023, mentioned above.
−Removed: Professional and other services expense increased $393 thousand, or 1.1%, mainly due to higher pension plan expense, partly offset by lower loan collection fees.
−Removed: Marketing expense increased $684 thousand, or 2.9%, while supplies and communication expense increased $1.3 million, or 7.3%, mainly due to higher postage expense, bank card reissuance fees and office supplies expense.
−Removed: Other non-interest expense increased $14.4 million, or 53.0%, mainly due to higher costs for travel and entertainment expense (up $1.9 million), miscellaneous losses (up $2.1 million) and lower deferred origination costs (up $1.6 million).
−Removed: In addition, an increase of $6.4 million in fair value adjustments were recorded on the Company's deferred compensation plan, and deconversion costs of $2.1 million relating to the transition of Commerce Financial Advisors support to LPL Financial's Institution Services platform were recorded in 2023.
Income tax expense was $161.1 million in 2025, compared to $145.1 million in 2024 and $134.5 million in 2023.
The effective tax rate, including the effect of non-controlling interest, was 22.2% in 2025 compared to 21.6% in 2024 and 22.0% in 2023.
−Removed: The decrease in the effective tax rate in 2024 compared to the rate for 2023 was mostly due to lower state and local income taxes.
+Added: The increase in the effective tax rate in 2025 compared to the rate for 2024 was mostly due to higher state and local income taxes.
Additional information about income tax expense is provided in Note 9 to the consolidated financial statements.
62 unchanged sentences
Total loans at December 31, 2025 were $17.8 billion, an increase of $551.2 million, or 3.2%, over balances at December 31, 2024.
−Removed: The increase in loans during 2024 occurred mainly due to an increase in revolving home equity, business loans and personal real estate loans, partly offset by decreases in business real estate and construction loans.
−Removed: Business loans increased $34.8 million, or 0.6%, mainly due to a $68.0 million increase in commercial and industrial loans and a $23.1 million increase in tax-advantaged lending, partly offset by a $73.9 million decrease in commercial card loans.
−Removed: Lease loans, included within business loans, also increased during 2024.
−Removed: Construction loans decreased $36.9 million, or 2.5%, mainly due to a decline in commercial construction lending.
−Removed: Business real estate loans decreased $58.1 million, or 1.6%, due mainly to decreases in industrial and retail lending, while owner-occupied, multi-family and hotel lending grew.
−Removed: Personal real estate loans increased $32.2 million, or 1.1%.
+Added: The increase in loans during 2025 occurred mainly due to growth in business and consumer loans.
+Added: Business loans increased $385.6 million, or 6.4%, mainly due to increases in commercial and industrial loans and commercial card loans of $290.2 million and $92.5 million, respectively.
+Added: Construction loans increased $28.1 million, or 2.0%, mainly due to an increase in commercial construction lending.
+Added: Business real estate loans increased $13.3 million, or .4%, mainly due to an increase in industrial lending, partly offset by a decline in senior living lending.
+Added: Personal real estate loans decreased $4.8 million, or .2%.
The Company sells certain long-term fixed rate mortgage loans to the secondary market, and loan sales in 2025 totaled $92.2 million, compared to $70.0 million in 2024.
−Removed: Consumer loans decreased $4.6 million, or .2%, mainly due to a decline in consumer auto lending.
−Removed: Fixed rate home equity and other vehicle and equipment loans also decreased combined with continued run off of marine and recreational vehicle loan balances, offset by growth in private banking and health services financing.
−Removed: Consumer credit card loans increased $6.0 million, or 1.0%, and revolving home equity loan balances increased $36.8 million, or 11.5%, compared to balances at year end 2023.
+Added: Consumer loans increased $123.7 million, or 6.0%, mainly due to an increase in private banking lending.
+Added: Consumer credit card loans decreased $6.2 million, or 1.0%, while revolving home equity loan balances increased $18.5 million, or 5.2%, compared to balances at year end 2024.
The Company currently holds approximately 31% of its loan portfolio in the Kansas City market, 25% in the St.
9 unchanged sentences
The business loan portfolio includes tax-advantaged loans and leases which carry tax-free interest rates.
−Removed: These loans totaled $689.2 million at December 31, 2024, an increase of $23.1 million, or 3.5%, from December 31, 2023 balances.
−Removed: In addition to tax-advantaged leases, the business loan portfolio also includes other direct financing and sales type leases totaling $727.4 million at December 31, 2024, an increase of $17.6 million, or 2.5%, from December 31, 2023.
+Added: These loans totaled $702.1 million at December 31, 2025, an increase of $12.9 million, or 1.9%, over December 31, 2024 balances.
+Added: In addition to tax-advantaged leases, the business loan portfolio also includes other direct financing and sales type leases totaling $717.3 million at December 31, 2025, a decrease of $10.0 million, or 1.4%, from December 31, 2024.
These loans are used by commercial customers to finance capital purchases ranging from computer equipment to office and transportation equipment.
−Removed: Additionally, the Company has $330.5 million of outstanding loans included within its $338.0 million oil and gas energy-related loan portfolio at December 31, 2024, which is further discussed within the Oil and Gas Energy Lending section of the Risk Elements of Loan Portfolio section located within Management's Discussion and Analysis of Financial Condition and Results of Operations.
−Removed: Also included in the business portfolio are corporate card
−Removed: loans, which totaled $332.1 million at December 31, 2024 and are made in conjunction with the Company’s corporate card business for corporate trade purchases.
+Added: Additionally, the Company has $296.6 million of outstanding loans included within its $303.0 million oil and gas energy-related loan portfolio at December 31, 2025, which is further discussed within the Oil and Gas Energy Lending section of the Risk Elements of the Loan Portfolio section located within Management's Discussion and Analysis of Financial Condition and Results of Operations.
+Added: Also included in the business portfolio are corporate card loans, which totaled $424.6 million at December 31, 2025 and are made in conjunction with the Company’s corporate card business for corporate trade purchases.
Corporate card loans are made to corporate, non-profit and government customers nationwide, but have very short-term maturities, which limits credit risk.
4 unchanged sentences
Net loan charge-offs in this category totaled $1.5 million in 2025 compared to $1.1 million in 2024.
−Removed: Non-accrual business loans were $101 thousand (less than .1% of business loans) at December 31, 2024 compared to $3.6 million at December 31, 2023.
+Added: Non-accrual business loans were $123 thousand (less than .1% of business loans) at December 31, 2025 compared to $101 thousand at December 31, 2024.
Real Estate-Construction and Land
−Removed: The portfolio of loans in this category amounted to $1.4 billion at December 31, 2024, a decrease of $36.9 million, or 2.5%, from the prior year and comprised 8.2% of the Company’s total loan portfolio.
+Added: The portfolio of loans in this category amounted to $1.4 billion at December 31, 2025, an increase of $28.1 million, or 2.0%, over the prior year and comprised 8.1% of the Company’s total loan portfolio.
Commercial construction and land development loans totaled $1.3 billion, or 88.3% of total construction loans at December 31, 2025.
−Removed: These loans decreased $36.0 million from 2023 year end balances, driving the decline in the total construction portfolio.
+Added: These loans increased $31.2 million over 2024 year end balances, driving the increase in the total construction portfolio.
Commercial construction loans are made during the construction phase for small and medium-sized office and medical buildings, manufacturing and warehouse facilities, apartment complexes, shopping centers, hotels and motels, and other commercial properties.
1 unchanged sentence
Residential construction and land development loans at December 31, 2025 totaled $169.2 million, or 11.7% of total construction loans.
−Removed: A stable construction market has contributed to low loss rates on these loans, with no net loan charge-offs and net loan recoveries of $115 thousand in 2024 and 2023, respectively.
+Added: Net loan charge-offs in this category totaled $40 thousand in 2025 compared to no net loan charge-offs in 2024.
Real Estate-Business
2 unchanged sentences
The business real estate borrowers and/or properties are generally located in local and regional markets where Commerce does business, and emphasis is placed on owner-occupied lending (34.0% of this portfolio), which presents lower risk levels.
−Removed: Additional information about business real estate loans by borrower is disclosed within the Real Estate - Business Loans section of the Risk Elements of Loan Portfolio section located within Management's Discussion and Analysis of Financial Condition and Results of Operations.
−Removed: At December 31, 2024, balances of non-accrual loans amounted to $15.0 million, or .4% of business real estate loans, up from $60 thousand at year end 2023.
−Removed: The Company experienced net loan recoveries of $106 thousand in 2024, compared to net loan charge-offs of $104 thousand in 2023.
+Added: Additional information about business real estate loans by borrower is disclosed within the Real Estate - Business Loans section of the Risk Elements of the Loan Portfolio section located within Management's Discussion and Analysis of Financial Condition and Results of Operations.
+Added: At December 31, 2025, balances of non-accrual loans amounted to $14.8 million, or .4% of business real estate loans, down $169 thousand from year end 2024.
+Added: The Company experienced net loan recoveries of $95 thousand in 2025, compared to net loan recoveries of $106 thousand in 2024.
Personal Banking Loans
8 unchanged sentences
This compares to $453.0 million of mortgage loans originated and $70.0 million of loans sold to the secondary market in 2024.
−Removed: The increase in loan sales during 2024 compared to 2023 was mainly due to a shift in demand for fixed rate mortgage loans.
−Removed: Net loan charge-offs in 2024 totaled $239 thousand, and net loan recoveries were $37 thousand in 2023.
−Removed: Balances of non-accrual loans in this category were $1.0 million at December 31, 2024, compared to $1.7 million at year end 2023.
+Added: The increase in loan sales during 2025 compared to 2024 was mainly due to a continued demand for fixed rate mortgage loans.
+Added: Net loan charge-offs in 2025 totaled $556 thousand, compared to net loan charge-offs of $239 thousand in 2024.
+Added: Balances of non-accrual loans in this category were $842 thousand at December 31, 2025, compared to $1.0 million at year end 2024.
Consumer loans consist of private banking, automobile, motorcycle, marine, tractor/trailer, recreational vehicle (RV), fixed rate home equity, patient health care financing and other types of consumer loans.
These loans totaled $2.2 billion at December 31, 2025.
−Removed: Approximately 38% of the consumer portfolio consists of automobile loans, 35% in private banking loans, 11% in fixed rate home equity loans, and 11% in healthcare financing loans.
−Removed: Total consumer loans decreased $4.6 million at year end 2024 compared to year end 2023.
−Removed: A decline of $43.5 million in auto loans was supplemented by decreases of $13.6 million and $12.7 million in fixed rate home equity and other vehicle and equipment loans, respectively.
−Removed: These decreases in consumer loan balances were partially offset by growth of $63.0 million in private banking loans and $11.9 million in patient healthcare financing.
−Removed: Net charge-offs on total consumer loans were $9.8 million in 2024, compared to $6.2 million in 2023, averaging .46% and .30% of consumer loans in 2024 and 2023, respectively.
+Added: Approximately 35% of the consumer portfolio consists of automobile loans, 40% in private banking loans, 9% in fixed rate home equity loans, and 11% in patient healthcare financing loans.
+Added: Total consumer loans increased $123.7 million at year end 2025 compared to year end 2024, mainly due to increases of $154.2 million in private banking loans and $8.9 million in patient healthcare financing.
+Added: These increases in consumer loan balances were partly offset by declines of $16.2
+Added: million in fixed rate home equity loans and $7.3 million in other vehicle and equipment loans.
+Added: Net charge-offs on total consumer loans were $9.8 million in both 2025 and 2024, averaging .46% of consumer loans in both 2025 and 2024.
Revolving Home Equity
3 unchanged sentences
The underwriting terms for the home equity line product permit borrowing availability, in the aggregate, generally up to 80% or 90% of the appraised value of the collateral property at the time of origination.
−Removed: Net loan recoveries were $166 thousand in 2024, compared to net loan recoveries of $57 thousand in 2023.
+Added: Net loan charge-offs were $5 thousand in 2025, compared to net loan recoveries of $166 thousand in 2024.
Consumer Credit Card
3 unchanged sentences
Approximately 36% of the households that own a Commerce credit card product also maintain a deposit relationship with the subsidiary bank.
−Removed: Approximately 95% of the outstanding credit card loan balances had a floating interest rate at year end 2024, unchanged from year end 2023.
−Removed: Net charge-offs amounted to $26.0 million in 2024, an increase of $6.9 million from $19.1 million in 2023.
+Added: Approximately 96% of the outstanding credit card loan balances had a floating interest rate at year end 2025, compared to 95% at year end 2024.
+Added: Net charge-offs amounted to $27.1 million in 2025, an increase of $1.0 million over $26.0 million in 2024.
Loans Held for Sale
18 unchanged sentences
At December 31, 2025, the allowance for credit losses on loans was $179.5 million, compared to $162.7 million at December 31, 2024.
−Removed: The allowance for credit losses related to commercial loans decreased $1.4 million during 2024, due to a decrease in loan balances and the impact of a continued positive economic forecast.
−Removed: Offsetting this decrease in the allowance for credit losses on commercial loans was a $1.8 million increase in the allowance for credit losses related to personal banking loans.
−Removed: The allowance for credit losses on personal banking loans increased over the December 31, 2023 allowance due to recent increased loan net charge-offs and past due trends in the credit card and auto portfolios, partially offset by an increase in the prepayment speeds of personal real estate loans.
+Added: The allowance for credit losses relating to commercial loans and personal banking loans increased $10.1 million and $6.6 million, respectively, during 2025.
+Added: The increase in the allowance for credit losses on commercial loans was primarily due to weakness in soft commodity prices impacting certain industries and model enhancements related to the forecast, while the allowance for credit losses on personal banking loans increased over the December 31, 2024 allowance due to recent increased loan net charge-off trends impacting expected loss rate assumptions for the consumer credit card, automobile, and other non-real estate consumer portfolios along with forecast model enhancements targeted at the consumer credit card portfolio.
The percentage of allowance to loans increased to 1.01% at December 31, 2025, compared to .95% at December 31, 2024.
1 unchanged sentence
Net loan charge-offs totaled $40.7 million in 2025, representing a $1.8 million increase compared to net charge-offs of $38.9 million in 2024.
−Removed: The increase was largely due to higher net charge-offs of $7.0 million and $3.5 million on consumer credit card loans and consumer loans, respectively, during 2024, and partially offset by a $2.0 million decrease in net charge-offs on business loans in 2024 compared to 2023.
−Removed: Consumer credit card loan net charge-offs were 4.64% of average consumer credit card loans in 2024, compared to 3.40% in 2023, and consumer loan net charge-offs were .46% of average consumer loans in 2024, compared to .30% in 2023.
+Added: The increase was largely due to higher net charge-offs of $1.0 million, $432 thousand and $317 thousand on consumer credit card, business and personal real estate loans, respectively, during 2025.
+Added: These increases were partially offset by a $240 thousand decrease in net charge-offs on overdraft loans in 2025 compared to 2024.
+Added: Consumer credit card loan net charge-offs were 4.81% of average consumer credit card loans in 2025, compared to 4.64% in 2024, and consumer loan net charge-offs were .46% of average consumer loans in both 2025 and 2024.
The ratio of net loan charge-offs to total average loans outstanding was .33% in 2025 and .23% in 2024.
−Removed: Total loans delinquent 90 days or more and still accruing were $24.5 million at December 31, 2024, an increase of $2.7 million compared to year end 2023.
−Removed: Non-accrual loans at December 31, 2024 were $18.3 million, an increase of $11.0 million from the prior year, mainly due to an increase in business real estate non-accrual loans of $15.0 million, partly offset by a decrease of $3.5 million in business non-accrual loans.
+Added: Total loans delinquent 90 days or more and still accruing were $24.7 million at December 31, 2025, an increase of $143 thousand compared to year end 2024.
+Added: Non-accrual loans at December 31, 2025 were $15.8 million, a decrease of $2.5 million from the prior year, mainly due to a decrease in non-accrual revolving home equity loans of $2.0 million.
The allowance for credit losses as a percentage of non-accrual loans was 1,139.5% at December 31, 2025, compared to 890.4% at December 31, 2024.
−Removed: The decrease in the ratio of the allowance to non-accrual loans was driven by the increase in non-accrual loans outstanding.
−Removed: The 2024 year-end balance of non-accrual loans was comprised of $101 thousand of business loans, $220 thousand of construction real estate loans, $1.0 million of personal real estate loans, $2.0 million of revolving home equity loans, and $15.0 million of business real estate loans.
+Added: The increase in the ratio of the allowance to non-accrual loans was driven by the decrease in non-accrual loans outstanding and the increase in the allowance for credit losses, as described above.
+Added: The 2025 year-end balance of non-accrual loans was comprised of $123 thousand of business loans, $842 thousand of personal real estate loans and $14.8 million of business real estate loans.
At December 31, 2025, the liability for unfunded lending commitments was $17.7 million, a decrease of $1.3 million compared to December 31, 2024.
The decrease in the liability for unfunded lending commitments during 2025 was driven primarily by decreases in the balance of unfunded lending commitments.
−Removed: The Company's unfunded lending commitments primarily relate to construction loans, and the Company's estimate for credit losses in its unfunded lending commitments
−Removed: utilizes the same model and forecast as its estimate for credit losses on loans.
+Added: The Company's unfunded lending commitments
+Added: primarily relate to construction loans, and the Company's estimate for credit losses in its unfunded lending commitments utilizes the same model and forecast as its estimate for credit losses on loans.
See Note 2 for further discussion of the model inputs utilized in the Company's estimate of credit losses.
97 unchanged sentences
$ 24,659 $ 24,516 $ 21,864 $ 15,830 $ 11,726
−Removed: Non-accrual loans totaled $18.3 million at year end 2024, an increase of $11.0 million from the balance at year end 2023.
−Removed: The increase from December 31, 2023 occurred mainly in business real estate, which increased $14.9 million.
−Removed: This increase was partially offset by a decrease in business loans of $3.5 million.
−Removed: At December 31, 2024, non-accrual loans were comprised of business real estate (81.8%), revolving home equity (10.8%), personal real estate (5.6%), construction and land real estate (1.2%), and business (0.6%) loans.
−Removed: Foreclosed real estate totaled $343 thousand at December 31, 2024, an increase of $73 thousand when compared to December 31, 2023.
+Added: Non-accrual loans totaled $15.8 million at year end 2025, a decrease of $2.5 million from the balance at year end 2024.
+Added: The decrease from December 31, 2024 occurred mainly in revolving home equity, which decreased $2.0 million.
+Added: At December 31, 2025, non-accrual loans were comprised of business real estate (93.9%), personal real estate (5.3%), and business (0.8%) loans.
+Added: Foreclosed real estate totaled $1.2 million at December 31, 2025, an increase of $875 thousand when compared to December 31, 2024.
Total non-performing assets remain low compared to the overall banking industry in 2025, with the non-performing assets to total loans ratio at .1% at December 31, 2025.
−Removed: Total loans past due 90 days or more and still accruing interest were $24.5 million as of December 31, 2024, an increase of $2.7 million when compared to December 31, 2023.
+Added: Total loans past due 90 days or more and still accruing interest were $24.7 million as of December 31, 2025, an increase of $143 thousand when compared to December 31, 2024.
Balances by class for non-accrual loans and loans past due 90 days and still accruing interest are shown in the "Delinquent and non-accrual loans" section of Note 2 to the consolidated financial statements.
3 unchanged sentences
Although these loans are generally identified as potential problem loans, they may never become non-performing.
−Removed: Such loans totaled $330.3 million at December 31, 2024, compared with $216.4 million at December 31, 2023, resulting in an increase of $113.9 million or 52.7%.
−Removed: The increase in potential problem loans was largely driven by a $56.8 million increase in business loans and a $55.2 million increase in business real estate loans.
+Added: Such loans totaled $264.9 million at December 31, 2025, compared with $330.3 million at December 31, 2024, resulting in a decrease of $65.4 million or 19.8%.
+Added: The decrease in potential problem loans was largely driven by a $89.9 million decrease in business real estate loans and a $19.5 million decrease in business loans, partly offset by a $44.0 million increase in construction and land loans.
(In thousands)
20 unchanged sentences
The Company’s portfolio of construction and land loans, as shown in the table below, amounted to 8.1% of total loans outstanding at December 31, 2025.
−Removed: The largest component of construction and land loans was commercial construction, which decreased $25.7 million during the year ended December 31, 2024.
+Added: The largest component of construction and land loans was commercial construction, which increased $29.1 million during the year ended December 31, 2025.
At December 31, 2025, multi-family residential construction loans totaled approximately $553.1 million, or 45.1%, of the commercial construction loan portfolio.
9 unchanged sentences
Total business real estate loans were $3.7 billion at December 31, 2025 and comprised 20.7% of the Company’s total loan portfolio.
−Removed: These loans include properties such as manufacturing and warehouse buildings, distribution facilities, small office and medical buildings, churches, hotels and motels, shopping centers, and other commercial properties, which have historically resulted in lower net charge-off rates than non-owner-occupied commercial real estate loans.
+Added: These loans include properties such as manufacturing and warehouse buildings, distribution facilities, small office and medical buildings, churches, hotels and motels, shopping centers, and other commercial properties.
Approximately 34.0% of these loans were for owner-occupied real estate properties, which have historically resulted in lower net charge-off rates than non-owner-occupied commercial real estate loans.
4 unchanged sentences
Office 528,421 14.4 3.0 520,715 14.2 3.0
−Removed: Retail 309,431 8.5 1.8 366,693 9.9 2.1
Hotels 326,147 8.9 1.8 334,479 9.1 1.9
Multi-family 317,541 8.6 1.8 310,806 8.5 1.8
+Added: Retail 292,490 8.0 1.6 309,431 8.5 1.8
Farm 199,678 5.4 1.1 189,794 5.2 1.1
8 unchanged sentences
Office 443,737 27,175 57,509 — 528,421
−Removed: Retail 308,730 — 701 — 309,431
Hotels 326,147 — — 326,147
Multi-family 250,018 56,633 10,890 — 317,541
+Added: Retail 292,490 — — — 292,490
Farm 197,566 1,686 273 153 199,678
35 unchanged sentences
* Percentage of total principal outstanding of $368.9 million at December 31, 2025.
+Added: ** Percentage of total unused portion of available lines of $946.9 million at December 31, 2025.
(Dollars in thousands)
10 unchanged sentences
* Percentage of total principal outstanding of $350.9 million at December 31, 2024 .
+Added: ** Percentage of total unused portion of available lines of $947.9 million at December 31, 2024 .
Consumer Loans
−Removed: The Company's consumer loans totaled $2.1 billion and comprised 12% of total loans outstanding at December 31, 2024.
−Removed: Within the consumer loan portfolio are several direct and indirect product lines comprised mainly of loans secured by automobiles, motorcycles, marine, and RVs.
−Removed: Auto loans comprised 38% of the consumer loan portfolio at December 31, 2024, and outstanding balances in the auto loan portfolio were $776.7 million and $820.3 million at December 31, 2024 and 2023, respectively.
+Added: The consumer loans category is mostly comprised of private banking loans and automobile loans.
+Added: Private banking loans comprised 40.4% of the consumer loan portfolio at December 31, 2025.
+Added: The Company's private banking loans are mostly executive lines of credit, which are secured primarily by assets held by the Company's trust department, and insurance premium finance loans, which are primarily secured by life insurance policies.
+Added: Automobile loans, which include direct and indirect product lines, comprised 35.2% of the consumer loan portfolio at December 31, 2025, and outstanding balances for auto loans were $773.6 million and $776.7 million at December 31, 2025 and 2024, respectively.
The balances over 30 days past due amounted to $11.0 million at December 31, 2025, compared to $14.4 million at the end of 2024, and comprised 1.4% of the outstanding balances of these loans at December 31, 2025 compared to 1.9% at 2024.
3 unchanged sentences
Losses on these loans have historically been low, and the Company had net recoveries of $137 thousand in 2025.
−Removed: Private banking loans comprised 35% of the consumer loan portfolio at December 31, 2024.
−Removed: The Company's private banking loans are generally well-collateralized and at December 31, 2024 were secured primarily by assets held by the Company's trust department.
−Removed: The remaining portion of the Company's consumer loan portfolio is comprised of health services financing, motorcycles, marine and RV loans.
−Removed: Net charge-offs on private banking, health services financing, motorcycle and marine and RV loans totaled $4.3 million in 2024 and were .4% of the average balances of these loans at December 31, 2024.
+Added: The remaining portion of the Company's consumer loan portfolio is comprised of healthcare financing, boat, RV, motorcycle, other equipment, and unsecured consumer loans.
+Added: Net charge-offs on consumer loans, other than automobile and fixed rate home equity loans, totaled $3.4 million in 2025 and were .3% of the average balances of these loans at December 31, 2025.
Consumer Credit Card Loans
8 unchanged sentences
Oil and Gas Energy Lending
−Removed: The Company's energy lending portfolio was comprised of lending to the petroleum and natural gas sectors and totaled $338.0 million at December 31, 2024, an increase of $66.0 million from year end 2023, as shown in the table below.
+Added: The Company's energy lending portfolio was comprised of lending to the petroleum and natural gas sectors and totaled $303.0 million at December 31, 2025, a decrease of $35.0 million from year end 2024, as shown in the table below.
(In thousands)
13 unchanged sentences
The Company's tax-exempt investment portfolio is included in its state and municipal obligations and represented 41% of this portfolio at December 31, 2025, compared to 39% at December 31, 2024.
−Removed: The decline in balances of tax-exempt investment securities during 2024 was mostly due to sales of securities as part of the Company's available for sale debt securities portfolio repositioning discussed in Note 3, Investment Securities.
−Removed: At December 31, 2024, the fair value of available for sale securities was $9.1 billion, which included a net unrealized loss in fair value of $990.6 million, compared to a net unrealized loss of $1.2 billion at December 31, 2023.
−Removed: The overall unrealized loss in fair value at December 31, 2024 included net losses of $38.9 million is U.S.
−Removed: government and federal agency obligations, net losses of $79.9 million in state and municipal securities, and net losses of $845.9 million in mortgage and asset-backed securities.
+Added: The decline in balances of tax-exempt investment securities during 2025 was mostly due to maturities within our investment securities portfolio.
+Added: At December 31, 2025, the fair value of available for sale securities was $9.1 billion, which included a net unrealized loss in fair value of $646.8 million, compared to a net unrealized loss of $990.6 million at December 31, 2024.
+Added: The overall unrealized loss in fair value at December 31, 2025 included net losses of $10.2 million in government-sponsored enterprise obligations, net losses of $50.3 million in state and municipal securities, and net losses of $602.7 million in mortgage and asset-backed securities, partly offset by net gains of $21.5 million in U.S.
+Added: government and federal agency obligations.
For the year ended December 31, 2025, the Company did not recognize a credit loss expense on any available for sale debt securities.
33 unchanged sentences
government and federal agency obligations 36.1 % 3.61 % 4.2 years
−Removed: Government-sponsored enterprise obligations 0.5 2.38 11.4
−Removed: State and municipal obligations 8.1 1.80 6.4
−Removed: Agency mortgage-backed securities 37.7 2.11 7.3
−Removed: Non-agency mortgage-backed securities 6.2 2.34 4.1
−Removed: Asset-backed securities 17.0 3.18 1.8
−Removed: Other debt securities 2.5 2.40 5.1
+Added: Government-sponsored enterprise obligations 0.5 2.37 10.5 years
+Added: State and municipal obligations 7.3 1.85 5.9 years
+Added: Agency mortgage-backed securities 35.4 2.11 7.1 years
+Added: Non-agency mortgage-backed securities 4.8 2.22 3.6 years
+Added: Asset-backed securities 13.9 3.78 2.3 years
+Added: Other debt securities 2.0 2.98 6.6 years
*Based on call provisions and estimated prepayment speeds.
25 unchanged sentences
Deposits, including both individual and corporate customer deposits, are the primary funding source for the Bank and are acquired from a broad base of local markets.
−Removed: Total period-end deposits were $25.3 billion at December 31, 2024, compared to $25.4 billion last year, reflecting a decrease of $70.3 million, or .3%.
−Removed: Average deposits decreased $801.4 million, or 3.2%, in 2024 compared to 2023, mainly resulting from decreases of $884.5 million, $152.8 million and $110.8 million in business demand deposits, savings account balances and money market account balances, respectively.
−Removed: Partly offsetting these decreases was an increase in interest checking account balances of $328.6 million.
+Added: Total period-end deposits were $25.6 billion at December 31, 2025, compared to $25.3 billion last year, reflecting an increase of $345.9 million, or 1.4%.
+Added: Average deposits increased $530.7 million, or 2.2%, in 2025 compared to 2024, mainly resulting from increases of $452.3 million, $151.5 million and $124.5 million in interest checking account balances, money market account balances, and personal demand deposits, respectively.
+Added: Partly offsetting these increases were decreases in business demand deposits of $156.1 million and certificate of deposit account balances of $144.0 million.
The following table shows year end deposit balances by type, as a percentage of total deposits.
6 unchanged sentences
100.0 % 100.0 %
−Removed: Core deposits, which include non-interest bearing, interest checking, savings, and money market deposits, supported 73% and 72% of average earning assets in 2024 and 2023, respectively.
+Added: Core deposits, which include non-interest bearing, interest checking, savings, and money market deposits, supported 73% of average earning assets in both 2025 and 2024.
Average balances by major deposit category for the last six years are disclosed in the Average Balance Sheets section of Management's Discussion and Analysis of Financial Condition and Results of Operations.
A maturity schedule of all certificates of deposits outstanding at December 31, 2025 is included in Note 7 on Deposits in the consolidated financial statements.
−Removed: Total uninsured deposits were calculated using the same methodology that the Company uses to determine uninsured deposits for regulatory reporting and amounted to $10.8 billion at both December 31, 2024 and December 31, 2023.
+Added: Total uninsured deposits were calculated using the same methodology that the Company uses to determine uninsured deposits for regulatory reporting and amounted to $10.0 billion and $10.8 billion at December 31, 2025 and December 31, 2024, respectively.
The following table shows a detailed breakdown of the maturities of uninsured certificates of deposit at December 31, 2025.
9 unchanged sentences
Total balances of federal funds purchased and repurchase agreements outstanding at December 31, 2025 were $3.0 billion, comprised of federal funds purchased of $128.6 million and repurchase agreements of $2.9 billion.
−Removed: At December 31, 2024, balances of federal funds purchased decreased $137.6 million, while repurchase agreements outstanding increased $155.5 million compared to balances at December 31, 2023.
−Removed: On an average basis, these borrowings decreased $218.4 million, or 7.7%, during 2024, due to a decrease of $265.7 million in federal funds purchased, partly offset by an increase of $47.4 million in repurchase agreements.
+Added: At December 31, 2025, balances of federal funds purchased increased $4.9 million and repurchase agreements outstanding increased $58.0 million compared to balances at December 31, 2024.
+Added: On an average basis, these borrowings increased $18.7 million, during 2025, due to an increase of $118.9 million in repurchase agreements, largely offset by a decrease of $100.2 million in federal funds purchased.
The average rates paid on federal funds purchased and repurchase agreements were 4.25% and 2.78%, respectively, during 2025, compared to rates of 5.31% on federal funds purchased and 3.38% paid on repurchase agreements during 2024.
In addition to the funding sources above, the Company may borrow from the FHLB on a short-term basis or long-term basis.
−Removed: During 2024, there were no short-term borrowings from the FHLB.
−Removed: During 2023, the Company had average short-term borrowings from the FHLB of $756.4 million.
−Removed: All of the short-term borrowings were repaid by the Company before December 31, 2023, and the average rate paid on FHLB borrowings was 5.22%.
+Added: During 2025 and 2024, there were no short-term borrowings from the FHLB.
The Company did not borrow any long-term funds from the FHLB during 2025 or 2024.
22 unchanged sentences
Interest earning balances at the Federal Reserve Bank, which have overnight maturities and are used for general liquidity purposes, totaled $2.7 billion at December 31, 2025.
−Removed: There were $3.0 million federal funds sold at December 31, 2024, which are funds lent to the Company’s correspondent bank customers with overnight maturities.
The fair value of the available for sale debt portfolio was $9.1 billion at December 31, 2025 and included an unrealized loss of $692.1 million.
−Removed: The total net unrealized loss included net losses of $846.9 million on mortgage-backed and asset-backed securities, $79.9 million on state and municipal obligations, and $41.9 million on U.S.
−Removed: government and federal agency obligations.
−Removed: Resale agreements totaled $625.0 million at December 31, 2024, with $125.0 million of the agreements maturing in the first quarter of 2025 and the remaining amount to mature through 2029.
+Added: The total net unrealized loss included net losses of $602.7 million on mortgage-backed and asset-backed securities and $50.3 million on state and municipal obligations.
+Added: Resale agreements totaled $850.0 million at December 31, 2025, with maturities in 2028 through 2030.
Under these agreements, the Company lends funds to upstream financial institutions and holds marketable securities, safe-kept by a third-party custodian, as collateral.
19 unchanged sentences
These core deposits are normally less volatile, often with customer relationships tied to other products offered by the Company promoting long lasting relationships and stable funding sources.
−Removed: Core deposits increased $417.0 million at year end 2024 compared to year end 2023, primarily due to an increase in commercial deposits of $605.6 million, partly offset by decreases in wealth management deposits and consumer deposits of $111.8 million and $68.7 million, respectively.
−Removed: While the Company considers core consumer and wealth management deposits less volatile, corporate deposits could decline if interest rates increase significantly, encouraging corporate customers to increase investing activities, or if the economy deteriorates and companies experience lower cash inflows, reducing deposit balances.
+Added: Core deposits increased $347.9 million at year end 2025 compared to year end 2024, primarily due to increases in commercial, wealth, and retail banking core deposits of $197.4 million, $129.2 million, and $36.4 million, respectively.
+Added: While the Company considers core retail banking and wealth deposits less volatile, corporate deposits could decline if interest rates increase significantly, encouraging corporate customers to increase investing activities, or if the economy deteriorates and companies experience lower cash inflows, reducing deposit balances.
If these corporate deposits decline, the Company's funding needs may be met by liquidity supplied by investment security maturities and pay downs expected to total $1.2 billion over the next year, as noted above.
8 unchanged sentences
These deposits are normally considered more volatile and higher costing, and comprised 5.3% of total deposits at December 31, 2025.
−Removed: Amid the banking sector's period of uncertainty during the second quarter of 2023, the Company issued several tranches of short-term brokered certificates of deposit totaling $1.2 billion, which all matured by December 31, 2023.
During the third quarter of 2024, the Company issued $100.0 million of brokered certificates, all of which matured by December 31, 2024.
39 unchanged sentences
The Company has no subordinated or hybrid debt instruments which would affect future borrowing capacity.
−Removed: Because of its lack of significant long-term debt, the Company believes that, through its Capital Markets Group or in other public debt markets, it could generate additional liquidity from sources such as jumbo certificates of deposit, privately-placed corporate notes or other forms of debt.
+Added: Because of its lack of significant long-term debt, the Company believes that, through its Commercial Tradable Products division or in other public debt markets, it could generate additional liquidity from sources such as jumbo certificates of deposit, privately-placed corporate notes or other forms of debt.
The cash flows from the operating, investing and financing activities of the Company resulted in a net increase in cash, cash equivalents and restricted cash of $171.7 million in 2025, as reported in the consolidated statements of cash flows.
Operating activities, consisting mainly of net income adjusted for certain non-cash items, provided cash flow of $645.1 million and has historically been a stable source of funds.
−Removed: Investing activities provided cash of $483.8 million.
−Removed: Sales and maturities proceeds (net of purchases) of investment securities provided cash of $750.7 million, repayments of securities purchased under agreements to resell (net of securities purchased under agreements to resell) used cash of $175.0 million, and a net increase in the loan portfolio used cash of $54.7 million.
+Added: Investing activities used cash of $462.4 million.
+Added: Sales and maturities proceeds of investment securities (net of purchases) provided cash of $409.3 million, securities purchased under agreements to resell (net of repayments of securities purchased under agreements to resell) used cash of $225.0 million, and a net increase in the loan portfolio used cash of $594.0 million.
Investing activities are somewhat unique to financial institutions in that, while large sums of cash flow are normally used to fund growth in investment securities, loans, or other bank assets, they are normally dependent on the financing activities described below.
During 2025, financing activities used cash of $11.0 million.
−Removed: This decrease in cash was largely driven treasury stock purchases, which used cash of $170.5 million.
−Removed: The Company paid cash dividends of $139.5 million on common stock, and a decline in deposits used cash of $74.0 million during 2024.
+Added: This decrease in cash was largely driven by treasury stock purchases, which used cash of $207.6 million.
+Added: The Company paid cash dividends of $146.6 million on common stock, while an increase in deposits provided cash of $271.1 million during 2025.
Federal funds purchases and short-term securities sold under agreements to repurchase provided cash of $62.9 million.
17 unchanged sentences
These sources of funds are used mainly to pay cash dividends on outstanding stock, pay general operating expenses, and purchase treasury stock.
−Removed: At December 31, 2024, the Parent’s investment securities totaled $18.1 million at fair value, consisting mainly of corporate bonds and preferred stock.
+Added: At December 31, 2025, the Parent’s investment securities totaled $13.3 million at fair value, consisting mainly of equity securities.
To support its various funding commitments, the Parent maintains a $20.0 million line of credit with its subsidiary bank.
29 unchanged sentences
Under the terms of the partnership agreements, the Company has a commitment to fund a specified amount that will be due in installments over the life of the agreements, which ranges from 1 to 21 years.
−Removed: At December 31, 2024, the investments totaled $94.4 million and are recorded as other assets in the Company’s consolidated balance sheet.
−Removed: Unfunded commitments, which are recorded as liabilities, amounted to $56.9 million at December 31, 2024.
+Added: The Company's investments in low-income housing partnerships, which are recorded within other assets in the Company's consolidated balance sheets, totaled $99.7 million and $94.4 million December 31, 2025 and 2024, respectively.
+Added: The Company's obligations related to unfunded commitments, which are recorded within other liabilities in the consolidated balance sheets, amounted to $54.6 million and $56.9 million at December 31, 2025 and 2024, respectively.
+Added: The net income tax benefit associated with these investments, which consists of proportional amortization expense, affordable housing tax credits and other related tax benefits, was reported in income tax expense in the Company's consolidated statements of income.
+Added: The amount of proportional amortization expense recognized during the fiscal years 2025, 2024 and 2023 was $8.8 million, $7.1 million and $6.0 million, respectively, and the a mount of affordable housing tax credits and other related tax benefits was $10.2 million, $8.2 million and $7.0 million, respectively.
+Added: The resulting net income tax benefit during the fiscal years 2025, 2024 and 2023 was $1.4 million, $1.1 million and $1.0 million, respectively.
The Company regularly purchases various state tax credits arising from third-party property redevelopment.
27 unchanged sentences
As a result, the two year deferral period for the Company extended through December 31, 2021.
−Removed: Beginning on January 1, 2022, the Company was required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025.
+Added: Beginning on January 1, 2022, the Company was required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in, which was during the first quarter of 2025.
The Company maintains a treasury stock buyback program under authorizations by its Board of Directors and periodically purchases stock in the open market.
3 unchanged sentences
Per share cash dividends paid by the Company increased 6.9% in 2025 compared with 2024, and the Company increased its first quarter 2026 cash dividend 5%, making 2026 the Company's 58th consecutive year of regular cash dividend increases.
−Removed: The Company also distributed its 31st consecutive annual 5% stock dividend in December 2024.
+Added: The Company also distributed its 32nd consecutive annual 5% stock dividend in December 2025.
Interest Rate Sensitivity
30 unchanged sentences
300 basis points falling (53.7) (4.84) (54.9) (5.00)
−Removed: Under the simulation, in the three rising rate scenarios interest rate and three falling rate scenarios, interest rate risk is more asset sensitive when compared to the scenarios in the previous quarter.
−Removed: This change is primarily due to actions taken by the Federal Reserve to reduce short-term interest rates 50 basis points.
−Removed: As short-term rates fall, deposit rates become less sensitive, which results in larger declines in net interest income in the falling rate scenarios.
−Removed: This impact was slightly offset by an increase in deposits and by the benefit of interest rate floors, which result in progressively more interest income in the falling 200 and 300 basis points scenarios.
−Removed: In the rising interest rate scenarios, deposits that are now less sensitive to rates result in larger increases in net interest income.
−Removed: Deposit balances were held constant for this simulation in both the current and previous quarters.
+Added: Under the simulation, in the three rising interest rate scenarios, interest rate risk is more asset sensitive when compared to the scenarios in the previous quarter.
+Added: This change is primarily due to an increase in average interest earning cash balances at the Federal Reserve coupled with a reduction in the Federal funds rate, which resulted in lower projected deposit rates.
+Added: In the falling interest rate scenarios, there was no material change from the previous quarter, which was mainly the result of an increase in average interest earning cash balances at the Federal Reserve.
+Added: This increase was mostly offset by the Company's use of interest rate floors, which limits the repricing down of variable-rate assets while funding costs move lower.
Derivative Financial Instruments
28 unchanged sentences
Each segment is managed by executives who, in conjunction with the Chief Executive Officer, make strategic business decisions regarding that segment.
−Removed: The three reportable operating segments are Consumer, Commercial, and Wealth.
+Added: The three reportable operating segments are Retail Banking, Commercial, and Wealth.
Additional information is presented in Note 13 on Segments in the consolidated financial statements.
8 unchanged sentences
(Dollars in thousands)
+Added: Retail Banking Commercial
Segment Totals
46 unchanged sentences
Percent (17.6) % (.2) % 7.6 % (4.9) % (47.6) % 9.6 %
−Removed: The Consumer segment includes consumer deposits, consumer finance, and consumer debit and credit cards.
−Removed: During 2024, income before income taxes for the Consumer segment decreased $52.5 million, or 17.6%, compared to 2023.
+Added: Retail Banking
+Added: The Retail Banking segment, previously called the Consumer segment, includes consumer deposits, consumer finance, and consumer debit and credit cards.
+Added: The Company renamed the Consumer segment to the Retail Banking segment in January 2026, however, there were no changes to the composition of the segment in conjunction with the name change.
+Added: During 2025, income before income taxes for the Retail Banking segment decreased $19.1 million, or 7.8%, compared to 2024.
+Added: This decrease was due to increases in non-interest expense of $9.4 million, or 2.9%, and the provision for credit losses of $1.2 million, or 3.2%, and declines in net interest income of $7.2 million, or 1.4%, and non-interest income of $1.4 million, or 1.4%.
+Added: Net interest income decreased due to a $15.1 million decline in net allocated funding credits assigned to the Retail Banking segment's loan and deposit portfolios and a $1.8 million increase in loan interest income, partly offset by a decrease of $9.8 million in deposit interest expense.
+Added: Non-interest income decreased mainly due to lower net bank card fees (mainly credit and debit card fees).
+Added: Non-interest expense increased over the previous year mainly due to higher data processing and software, marketing and miscellaneous losses expense.
+Added: In addition, allocated servicing and support costs increased due to higher allocated costs for retail administration and operations, while branch employee servicing costs declined.
+Added: The provision for credit losses totaled $38.8 million, a $1.2 million increase over the prior year, which resulted mainly from higher auto and
+Added: consumer credit card loan net charge-offs, partly offset by lower other vehicle and equipment loan net charge-offs.
+Added: Total average loans in this segment decreased $98.0 million in 2025 compared to 2024 mainly due to declines in personal real estate and auto loans, partly offset by higher revolving and fixed-rate home equity loans.
+Added: Average deposits increased $37.3 million, or .3%, over the prior year, resulting from growth in personal demand and certificate of deposit account balances, partly offset by declines in savings, interest checking and money market deposit account balances.
+Added: During 2024, income before income taxes for the Retail Banking segment decreased $52.6 million, or 17.6%, compared to 2023.
This decrease was due to a decline in net interest income of $40.6 million, or 7.3%, an increase in the provision for credit losses of $10.2 million, or 37.0%, and higher non-interest expense of $4.7 million, or 1.5%, partly offset by an increase in non-interest income of $2.9 million, or 3.0%.
−Removed: Net interest income decreased due to an increase of $66.4 million in deposit interest expense, partly offset by a $19.7 million increase in loan interest income and a $6.2 million increase in net allocated funding credits assigned to the Consumer segment's loan and deposit portfolios.
+Added: Net interest income decreased due to an increase of $66.4 million in deposit interest expense, partly offset by a $19.7 million increase in loan interest income and a $6.1 million increase in net allocated funding credits.
Non-interest income increased mainly due to growth in net bank card fees (mainly credit and debit card fees), deposit account fees and mortgage banking revenue .
−Removed: Non-interest expense increased over the same period in the previous year mainly due to higher miscellaneous losses and allocated support costs for information technology and retail operations, partly offset by lower salaries and benefits expense and allocated management support costs.
−Removed: The provision for credit losses totaled $37.6 million, a $10.2 million increase over the prior year, which resulted mainly from higher consumer credit card and auto loan net charge-offs, partly offset by lower other vehicle and equipment loan net charge-offs.
−Removed: Total average loans in this segment decreased $1.7 million in 2024 compared to 2023 mainly due to declines in auto and
−Removed: other vehicle loans and personal real estate loans, partly offset by higher revolving and fixed rate home equity loans.
−Removed: Average deposits increased $44.4 million, or .4%, over the prior year, resulting from growth in certificate of deposit account balances, partly offset by declines in savings, interest checking and money market deposit account balances.
−Removed: During 2023, income before income taxes for the Consumer segment decreased $65.3 million, or 18.0%, compared to 2022.
−Removed: This decrease was due to lower net interest income of $29.6 million, or 5.1%, higher non-interest expense of $20.2 million, or 6.6%, an increase in the provision for credit losses of $9.6 million, or 54.1%, and a decline in non-interest income of $5.9 million, or 5.6%.
−Removed: Net interest income decreased due to a $17.4 million decrease in net allocated funding credits assigned to the Consumer segment's loan and deposit portfolios and an increase of $54.0 million in deposit interest expense, partly offset by a $41.8 million increase in loan interest income.
−Removed: Non-interest income decreased mainly due to lower deposit account fees (mainly overdraft and return item fees) and mortgage banking revenue, partly offset by growth in net debit card fees .
−Removed: Non-interest expense increased over 2022 mainly due to higher salaries and benefits expense, FDIC insurance expense, data processing and software expense and allocated support costs for consumer administration and operations and information technology.
−Removed: The provision for credit losses totaled $27.5 million, a $9.6 million increase over 2022, which resulted mainly from higher consumer credit card and personal loan net charge-offs.
−Removed: Total average loans in this segment increased $127.4 million, or 3.4%, in 2023 compared to 2022 mainly due to increases in personal real estate loans and revolving and fixed rate home equity loans.
−Removed: Average deposits decreased $1.2 billion, or 8.8%, from 2022, resulting from declines in money market, interest checking and savings deposit account balances, partly offset by growth in certificate of deposit account balances.
+Added: Non-interest expense increased over 2023 mainly due to higher miscellaneous losses and allocated support costs for information technology and retail operations, partly offset by lower salaries and benefits expense and allocated management support costs.
+Added: The provision for credit losses totaled $37.6 million, a $10.2 million increase over 2023, which resulted mainly from higher consumer credit card and auto loan net charge-offs, partly offset by lower other vehicle and equipment loan net charge-offs.
+Added: Total average loans in this segment decreased $1.7 million in 2024 compared to 2023 mainly due to declines in auto and other vehicle loans and personal real estate loans, partly offset by higher revolving and fixed-rate home equity loans.
+Added: Average deposits increased $44.4 million, or .4%, over 2023, resulting from growth in certificate of deposit account balances, partly offset by declines in savings, interest checking and money market deposit account balances.
The Commercial segment provides lending (including the Small Business Banking product line within the branch network), leasing, international services, and business, government deposit, and related commercial cash management services, as well as merchant and commercial bank card products.
The segment includes the Commercial Tradable Products division, which sells fixed-income securities, underwrites municipal bonds, and provides securities safekeeping and accounting services to its business and correspondent bank customers.
+Added: Pre-tax income for 2025 increased $9.6 million, or 2.6%, compared to 2024, mainly due higher net interest income and non-interest income, partly offset by higher non-interest expense.
+Added: Net interest income increased $16.5 million, or 3.2%, due to lower interest expense on deposits and customer repurchase agreements of $25.0 million and $10.4 million, respectively, coupled with higher net allocated funding credits of $12.7 million.
+Added: These increases to income were partly offset by lower loan interest income of $32.1 million.
+Added: Non-interest income increased $18.6 million, or 7.1%, over the previous year mainly due to higher gains on asset sales and growth in deposit account fees (mainly corporate cash management fees).
+Added: These increases were partly offset by a decrease in net bank card fees (mainly corporate card fees).
+Added: Non-interest expense increased $25.1 million, or 6.2%, mainly due to higher legal fees, salaries and benefits expense and allocated service and support costs for commercial payments and product support, commercial loan servicing and branch employee expense.
+Added: The provision for credit losses increased $392 thousand over the same period last year, mainly due to higher commercial and industrial loan net charge-offs.
+Added: Average segment loans increased $274.1 million, or 2.4%, compared to 2024, mainly due to growth in business and business real estate loans.
+Added: Average deposits increased $386.9 million, or 3.9%, mainly due to an increase in interest checking account balances, partly offset by a decline in certificate of deposit account balances.
Pre-tax income for 2024 decreased $585 thousand, or .2%, compared to 2023, mainly due to lower net interest income and higher non-interest expense, mostly offset by higher non-interest income and a decrease in the provision for credit losses.
−Removed: Net interest income decreased $5.8 million, or 1.1%, due to lower net allocated funding credits of $30.9 million, coupled with higher interest expense on deposits and borrowings of $21.0 million and $8.2 million, respectively.
+Added: Net interest income decreased $5.7 million, or 1.1%, mainly due to lower net allocated funding credits of $30.8 million, coupled with higher interest expense on deposits and customer repurchase agreements of $21.0 million and $8.2 million, respectively.
These decreases to income were partly offset by higher loan interest income of $53.1 million.
−Removed: Non-interest income increased $13.0 million, or 5.3%, over the previous year mainly due to growth in deposit account fees (mainly corporate cash management fees), capital market fees, tax credit sales fees and loan commitment fees.
+Added: Non-interest income increased $13.2 million, or 5.3%, over 2023 mainly due to growth in deposit account fees (mainly corporate cash management fees), capital market fees, tax credit sales fees and loan commitment fees.
These increases were partly offset by decreases in net bank card fees (mainly corporate card fees), letter of credit fees and swap fees.
1 unchanged sentence
These increases were partly offset by lower insurance and marketing expense.
−Removed: The provision for credit losses decreased $2.1 million from the same period last year, mainly due to lower commercial and industrial loan net charge-offs.
+Added: The provision for credit losses decreased $2.1 million from 2023, mainly due to lower commercial and industrial loan net charge-offs.
Average segment loans increased $240.8 million, or 2.2%, compared to 2023, mainly due to growth in business real estate, floor plan, tax free, and commercial and industrial loans.
Average deposits decreased $498.9 million, or 4.8%, mainly due to declines in business demand and certificate of deposit account balances, partly offset by increases in interest checking and money market account balances.
−Removed: Pre-tax income for 2023 decreased $29.3 million, or 7.3%, compared to 2022, mainly due to a decrease in net interest income and increases in non-interest expense and the provision for credit losses, partly offset by an increase in non-interest income.
−Removed: Net interest income decreased $21.4 million, or 3.9%, due to a decrease of $129.3 million in net allocated funding credits assigned to the Commercial segment's loan and deposit portfolios and increases in interest expense on customer repurchase agreements and deposits of $49.4 million and $116.4 million, respectively.
−Removed: These decreases to income were partly offset by higher loan interest income of $273.0 million.
−Removed: Non-interest income increased $21.4 million, or 9.5%, over 2022 due to growth in net bank card fees (mainly corporate card and merchant fees), deposit account fees (mainly corporate cash management fees), letter of credit fees and cash sweep commissions, partly offset by a decline in tax credit sales fees.
−Removed: Non-interest expense increased $26.9 million, or 7.4%, mainly due to higher salaries and benefits expense, FDIC insurance expense and allocated service and support costs (mainly bank operations, commercial payments and products and credit administration).
−Removed: These increases were partly offset by lower allocated support costs for information technology.
−Removed: The provision for credit losses increased $2.3 million over 2022, mainly due to higher business loan net charge-offs.
−Removed: Average segment loans increased $1.0 billion, or 10.4%, compared to 2022, mainly due to increases in business, business real estate, and construction loans.
−Removed: Average deposits decreased $1.6 billion, or 13.1%, mainly due to declines in business demand and money market deposit account balances, partly offset by increases in interest checking and certificate of deposit account balances.
The Wealth segment provides traditional trust and estate planning, advisory and discretionary investment management services, brokerage services, and includes Private Banking accounts.
2 unchanged sentences
In 2025, pre-tax income for the Wealth segment was $190.7 million, compared to $172.8 million in 2024, an increase of $17.9 million, or 10.3%.
+Added: Net interest income increased $2.8 million, or 3.2%, mainly due to a $9.4 million increase in loan interest income and a $3.7 million decrease in deposit interest expense.
+Added: These increases to income were partly offset by a $10.3 million decrease in net allocated funding credits.
+Added: Non-interest income increased $22.8 million, or 9.4%, over the prior year mainly due to higher private client and institutional trust fees and brokerage services fees (mainly life insurance, annuity and advisory fees).
+Added: Non-interest expense increased $7.6 million, or 4.8%, mainly due to higher salaries and benefits, data processing and software, and allocated support costs for information technology.
+Added: The provision for credit losses increased $170 thousand over the same period last year, mainly due to fixed-rate home equity loan net recoveries recorded in the prior year.
+Added: Average assets increased $212.9 million, or 10.8%, during 2025 mainly due to higher personal real estate, fixed-rate home equity and business loan balances.
+Added: Average deposits increased $148.6 million, or 6.2%, mainly due to growth in money market and certificate of deposit account balances.
+Added: In 2024, pre-tax income for the Wealth segment was $172.8 million, compared to $160.6 million in 2023, an increase of $12.2 million, or 7.6%.
Net interest income decreased $12.0 million, or 12.0%, mainly due to a $20.3 million increase in deposit interest expense and a $510 thousand decline in net allocated funding credits assigned to the Wealth segment's loan and deposit portfolios, partly offset by an $8.9 million increase in loan interest income.
−Removed: Non-interest income increased $25.2 million, or 11.6%, over the prior year mainly due to higher private client and institutional trust fees, brokerage fees and cash sweep commissions.
−Removed: Non-interest expense increased $1.3 million, or .8%, mainly due to higher salaries and benefits expense, partly offset by deconversion costs recorded in the prior year (previously mentioned).
−Removed: The provision for credit losses decreased $176 thousand from the prior year due to lower fixed-rate home equity loan net charge-offs.
+Added: Non-interest income increased $25.2 million, or 11.6%, over 2023 mainly due to higher private client and institutional trust fees, brokerage services fees and cash sweep commissions.
+Added: Non-interest expense increased $1.2 million, or .8%, mainly due to higher salaries and benefits expense, partly offset by deconversion costs recorded in 2023.
+Added: The provision for credit losses decreased $176 thousand from 2023 mainly due to net recoveries on fixed-rate home equity loans in 2024.
Average assets increased $72.3 million, or 3.8%, during 2024 mainly due to higher personal real estate loan balances, partly offset by lower commercial and industrial and fixed-rate home equity loan balances.
Average deposits increased $1.6 million, or .1%, due to growth in certificate of deposit and money market deposit account balances, mostly offset by declines in interest checking and business demand deposit account balances.
−Removed: In 2023, pre-tax income for the Wealth segment was $160.3 million, compared to $187.2 million in 2022, a decrease of $26.9 million, or 14.3%.
−Removed: Net interest income decreased $18.9 million, or 15.9%, mainly due to a $25.0 million decrease in net allocated funding credits assigned to the Wealth segment's loan and deposit portfolios and a $26.2 million increase in deposit interest expense, partly offset by a $32.3 million increase in loan interest income.
−Removed: Non-interest income decreased $2.9 million, or 1.3%, from 2022 mainly due to lower mutual fund retail trust fees and lower brokerage fees (mainly annuity fees), partly offset by higher private client trust fees and cash sweep commissions.
−Removed: Non-interest expense increased $5.1 million, or 3.3%, mainly due to higher salaries and benefits expense and deconversion costs recorded in 2023, partly offset by lower allocated costs for trust service fees to affiliates.
−Removed: The provision for credit losses increased $20 thousand over 2022.
−Removed: Average assets increased $54.9 million, or 3.0%, during 2023 mainly due to higher personal real estate loan balances, partly offset by lower business and fixed rate home equity loan balances.
−Removed: Average deposits decreased $427.4 million, or 15.2%, due to declines in interest checking and money market deposit account balances, partly offset by growth in certificate of deposit account balances.
The segment activity, as shown above, includes both direct and allocated items.
1 unchanged sentence
In accordance with the Company's transfer pricing procedures, the difference between the total provision and total net charge-offs/recoveries is not allocated to a business segment and is included in this category.
−Removed: In 2024, the pre-tax net loss in this category was $110.7 million, compared to net losses of $211.1 million in 2023.
−Removed: Unallocated securities gains were $7.8 million in 2024, compared to securities gains of $15.0 million in 2023.
−Removed: Additionally, net interest income increased $100.4 million, the provision for credit losses decreased $10.5 million, and non-interest income increased $1.2 million.
−Removed: These increases were partly offset by an increase in non-interest expense of $4.6 million.
−Removed: The increase in net interest income was driven by decreases in interest expense on borrowings and deposits of $52.1 million and $17.7 million, respectively, and a $25.2 million decrease in net allocated funding credits.
−Removed: The decrease in the unallocated provision for credit losses was primarily driven by a decrease in the liability for unfunded lending commitments, partly offset by an increase in the provision for credit losses on loans, which are both not allocated to the segments for management reporting purposes.
+Added: In 2025, the pre-tax net loss in this category was $66.8 million, compared to a net loss of $110.8 million in 2024.
+Added: Net interest income increased $59.4 million and non-interest expense declined $13.5 million.
+Added: These increases to income were partly offset by an increase of $21.5 million in the provision for credit losses and a $3.3 million decrease in non-interest income.
+Added: Additionally, unallocated securities gains were $3.7 million in 2025, compared to securities gains of $7.8 million in 2024.
+Added: The increase in net interest income was mainly due to higher interest income on investment securities and securities purchased under resell agreements, which are not allocated to the segments for management reporting purposes.
+Added: The increase in the unallocated provision for credit losses was primarily driven by an increase in the provision for credit losses on loans, partly offset by a decrease in the liability for unfunded lending commitments, which are both not allocated to the segments for management reporting purposes.
Net charge-offs are allocated to segments when incurred for management reporting purposes.
−Removed: For the year ended December 31, 2024, the Company's provision for credit losses on unfunded lending commitments was a benefit $6.3 million, compared to a benefit of $7.9 million in 2023.
−Removed: The provision for credit losses on loans was $347 thousand in excess of net-charge offs in 2024, due to an increase in the allowance for credit losses on loans, while the provision was $12.3 million higher than net charge-offs in 2023.
+Added: The provision for credit losses on loans was $16.7 million in excess of net-charge offs in 2025, due to an increase in the allowance for credit losses on loans, while the provision was $347 thousand higher than net charge-offs in 2024.
+Added: For the year ended December 31, 2025, the Company's provision for credit losses on unfunded lending commitments was a benefit of $1.3 million, compared to a benefit of $6.3 million in 2024.
Impact of Recently Issued Accounting Standards
−Removed: Segment Reporting The FASB issued ASU 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures", in November 2023.
−Removed: The amendments require disclosure of significant segment expenses and other segment items on an annual and interim basis.
−Removed: Public entities are required to disclose significant expense categories and amounts for each reportable segment, as well as the amount and a description of the composition of other segment items.
−Removed: Significant expense categories are derived from expenses that are regularly provided to an entity’s chief operating decision-maker (“CODM”), and included in a segment’s reported measures of profit or loss.
−Removed: Public entities are also required to disclose the title and position of the CODM and explain how the CODM uses the reported measures of profit or loss in assessing segment performance and deciding how to allocate resources.
−Removed: This Update requires interim disclosures of certain segment-related disclosures that previously were only required annually.
−Removed: This Update requires annual disclosures for fiscal years beginning January 1, 2024 and interim disclosures for fiscal years beginning January 1, 2025.
−Removed: The Company adopted this standard in 2024, and other than the inclusion of additional disclosures, the adoption did not have a significant impact on the Company's consolidated financial statements.
−Removed: The standard will be effective for the Company's consolidated financial statements for interim periods beginning January 1, 2025.
Income Taxes The FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures", in December 2023.
1 unchanged sentence
This Update also removed certain existing disclosure requirements.
−Removed: This Update is effective for annual periods beginning January 1, 2025.
−Removed: Early adoption is permitted.
−Removed: The amendments in this Update should be applied on a prospective basis, though retrospective application is permitted.
−Removed: Other than the inclusion of additional disclosures, the adoption is not expected to have a significant effect on the Company's consolidated financial statements.
+Added: The Company adopted this Update for the year ended December 31, 2025, and applied the new disclosures on a retrospective basis.
Income Statement Reporting The FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):
5 unchanged sentences
Other than the inclusion of additional disclosures, the adoption is not expected to have a significant effect on the Company's consolidated financial statements.
+Added: Internal-Use Software Development Costs The FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):
+Added: Targeted Improvement to the Accounting for Internal-Use Software" in September 2025.
+Added: The amendments in this Update are intended to modernize the accounting for internal-use software by eliminating references to software development project stages, making the guidance neutral to various development methodologies, including those currently in use and those that may be developed in the future.
+Added: This Update is effective for annual and interim periods beginning after December 15, 2027.
+Added: Early adoption is permitted as of the beginning of an annual reporting period.
+Added: The amendments may be applied on a prospective, modified retrospective or full retrospective basis.
+Added: The adoption is not expected to have a significant effect on the Company's consolidated financial statements.
+Added: Purchased Loans The FASB issued ASU 2025-08 "Financial Instruments - Credit Losses (Topic 326):
+Added: Purchased Loans" in November 2025.
+Added: This new guidance makes significant changes to the accounting for certain acquired seasoned loans subject to the current expected credit loss model (CECL).
+Added: Under the ASU, the initial allowance for credit losses recorded upon the acquisition of loans in scope is recognized as an adjustment to the amortized cost basis of the loan - similar to the model for purchased credit deteriorated assets.
+Added: For these loans, the "day-one" credit loss estimate does not impact earnings immediately but is instead amortized over time as an adjustment to interest income.
+Added: Subsequent changes in the allowance for credit losses are reported in earnings within credit loss expense.
+Added: The ASU is effective for fiscal periods beginning after December 15, 2026 and interim periods within.
+Added: Early adoption is permitted and amendments are to be applied prospectively.
+Added: The Company adopted this Update on January 1, 2026.
+Added: Derivatives and Hedging The FASB issued ASU 2025-09 "Derivatives and Hedging (Topic 815):
+Added: Hedge Accounting Improvements" in December 2025.
+Added: The amendments in this Update make targeted improvements to hedge account intended to better align financial reporting with an entity's risk-management activities.
+Added: At a high level, the Update provides for a broader application of grouping forecasted transactions in cash flow hedges by replacing 'same risk exposure' requirements with a more flexible 'similar risk exposure' standard, which may apply to the Company's current cash flow hedges.
+Added: This Update is effective for annual and interim periods beginning after December 15, 2026.
+Added: Early adoption is permitted in an interim or annual reporting period.
+Added: The amendments should be applied on a prospective basis for all hedging relationships, and the Company may elect to adopt the amendments for existing hedging relationships as of the adoption, without dedesignating the hedges.
+Added: The Company is currently evaluating the provisions of this Update.
+Added: Interim Reporting The FASB issued ASU 2025-11 "Interim Reporting (Topic 270):
+Added: Narrow-Scope Improvements" in December 2025.
+Added: The amendments in this Update are intended to clarify interim disclosure requirements and the applicability of Topic 270.
+Added: The ASU is effective for interim periods within annual periods beginning after December 15, 2027.
+Added: Early adoption is permitted and amendments may be applied prospectively or retrospectively to prior periods presented.
+Added: The Company does not anticipate a significant impact on the Company's consolidated financial statements.
Corporate Governance
2 unchanged sentences
This information is available on the Company’s investor relations website at investor.commercebank.com/overview/corporate-governance.
−Removed: SUMMARY OF QUARTERLY STATEMENTS OF INCOME
−Removed: Year ended December 31, 2024
−Removed: For the Quarter Ended
−Removed: (In thousands, except per share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024
−Removed: Interest income
−Removed: $ 369,405 $ 372,068 $ 369,363 $ 358,721
−Removed: Interest expense
−Removed: (102,758) (109,717) (107,114) (109,722)
−Removed: Net interest income
−Removed: 266,647 262,351 262,249 248,999
−Removed: Non-interest income
−Removed: 155,436 159,025 152,244 148,848
−Removed: Investment securities gains (losses), net
−Removed: 977 3,872 3,233 (259)
−Removed: Salaries and employee benefits
−Removed: (153,819) (153,122) (149,120) (151,801)
−Removed: Other expense
−Removed: (81,899) (84,478) (83,094) (93,896)
−Removed: Provision for credit losses
−Removed: (13,508) (9,140) (5,468) (4,787)
−Removed: Income before income taxes
−Removed: 173,834 178,508 180,044 147,104
−Removed: (36,590) (38,245) (38,602) (31,652)
−Removed: Non-controlling interest
−Removed: (1,136) (2,256) (1,889) (2,789)
−Removed: Net income attributable to Commerce Bancshares, Inc.
−Removed: $ 136,108 $ 138,007 $ 139,553 $ 112,663
−Removed: Net income per common share — basic*
−Removed: $ 1.01 $ 1.02 $ 1.03 $ .82
−Removed: Net income per common share — diluted*
−Removed: $ 1.01 $ 1.01 $ 1.03 $ .82
−Removed: Weighted average shares — basic*
−Removed: 133,509 134,217 134,881 135,494
−Removed: Weighted average shares — diluted*
−Removed: 133,687 134,395 135,041 135,645
−Removed: Year ended December 31, 2023
−Removed: For the Quarter Ended
−Removed: (In thousands, except per share data) 12/31/2023 9/30/2023 6/30/2023 3/31/2023
−Removed: Interest income
−Removed: $ 362,609 $ 361,162 $ 348,663 $ 308,857
−Removed: Interest expense
−Removed: (114,188) (112,615) (99,125) (57,234)
−Removed: Net interest income
−Removed: 248,421 248,547 249,538 251,623
−Removed: Non-interest income
−Removed: 144,879 142,949 147,605 137,612
−Removed: Investment securities gains (losses), net
−Removed: 7,601 4,298 3,392 (306)
−Removed: Salaries and employee benefits
−Removed: (147,456) (146,805) (145,429) (144,373)
−Removed: Other expense
−Removed: (103,798) (81,205) (82,182) (79,734)
−Removed: Provision for credit losses
−Removed: (5,879) (11,645) (6,471) (11,456)
−Removed: Income before income taxes
−Removed: 143,768 156,139 166,453 153,366
−Removed: (32,307) (33,439) (35,990) (32,813)
−Removed: Non-controlling interest
−Removed: (2,238) (2,104) (2,674) (1,101)
−Removed: Net income attributable to Commerce Bancshares, Inc.
−Removed: $ 109,223 $ 120,596 $ 127,789 $ 119,452
−Removed: Net income per common share — basic*
−Removed: $ .80 $ .88 $ .93 $ .86
−Removed: Net income per common share — diluted*
−Removed: $ .79 $ .88 $ .93 $ .86
−Removed: Weighted average shares — basic* 135,982 136,399 136,583 136,714
−Removed: Weighted average shares — diluted* 136,089 136,509 136,718 136,996
−Removed: Year ended December 31, 2022
−Removed: For the Quarter Ended
−Removed: (In thousands, except per share data) 12/31/2022 9/30/2022 6/30/2022 3/31/2022
−Removed: Interest income
−Removed: $ 286,377 $ 262,666 $ 238,154 $ 211,782
−Removed: Interest expense
−Removed: (31,736) (16,293) (5,769) (2,996)
−Removed: Net interest income
−Removed: 254,641 246,373 232,385 208,786
−Removed: Non-interest income
−Removed: 136,825 138,514 139,427 131,769
−Removed: Investment securities gains (losses), net
−Removed: 8,904 3,410 1,029 7,163
−Removed: Salaries and employee benefits
−Removed: (138,458) (137,393) (142,243) (135,953)
−Removed: Other expense
−Removed: (78,282) (75,491) (71,262) (69,695)
−Removed: Provision for credit losses
−Removed: (15,477) (15,290) (7,162) 9,858
−Removed: Income before income taxes
−Removed: 168,153 160,123 152,174 151,928
−Removed: (34,499) (33,936) (32,021) (31,902)
−Removed: Non-controlling interest
−Removed: (2,026) (3,364) (4,359) (1,872)
−Removed: Net income attributable to Commerce Bancshares, Inc.
−Removed: $ 131,628 $ 122,823 $ 115,794 $ 118,154
−Removed: Net income per common share — basic*
−Removed: $ .95 $ .88 $ .83 $ .84
−Removed: Net income per common share — diluted*
−Removed: $ .95 $ .88 $ .83 $ .84
−Removed: Weighted average shares — basic*
−Removed: 137,053 137,636 138,515 139,291
−Removed: Weighted average shares — diluted*
−Removed: 137,360 137,941 138,823 139,628
−Removed: * Restated for the 5% stock dividend distributed in 2024.
AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
157 unchanged sentences
(C) Interest expense of $2,000, $903,000, $1,370,000, $29,000 and $14,000, which was capitalized on construction projects in 2024, 2023, 2022, 2021, and 2020, respectively, is not deducted from the interest expense shown above.
+Added: There was no capitalized interest in 2025.
QUARTERLY AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
152 unchanged sentences
(A) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.
+Added: SUMMARY OF QUARTERLY STATEMENTS OF INCOME
+Added: Year ended December 31, 2025
+Added: For the Quarter Ended
+Added: (In thousands, except per share data) 12/31/2025 9/30/2025 6/30/2025 3/31/2025
+Added: Interest income
+Added: $ 373,617 $ 374,105 $ 371,636 $ 364,365
+Added: Interest expense
+Added: (90,465) (94,648) (91,489) (95,263)
+Added: Net interest income
+Added: 283,152 279,457 280,147 269,102
+Added: Non-interest income
+Added: 166,208 161,511 165,613 158,949
+Added: Investment securities gains (losses), net
+Added: 2,929 7,885 437 (7,591)
+Added: Salaries and employee benefits
+Added: (162,889) (157,461) (155,025) (153,078)
+Added: Other expense
+Added: (90,106) (86,557) (89,412) (85,298)
+Added: Provision for credit losses
+Added: (15,993) (20,061) (5,597) (14,487)
+Added: Income before income taxes
+Added: 183,301 184,774 196,163 167,597
+Added: (40,620) (41,152) (42,400) (36,964)
+Added: Non-controlling interest (expense) income
+Added: (2,019) (2,104) (1,284) 959
+Added: Net income attributable to Commerce Bancshares, Inc.
+Added: $ 140,662 $ 141,518 $ 152,479 $ 131,592
+Added: Net income per common share — basic*
+Added: $ 1.01 $ 1.01 $ 1.09 $ .93
+Added: Net income per common share — diluted*
+Added: $ 1.01 $ 1.01 $ 1.09 $ .93
+Added: Weighted average shares — basic*
+Added: 137,518 138,955 139,077 139,563
+Added: Weighted average shares — diluted*
+Added: 137,599 139,086 139,212 139,725
+Added: Year ended December 31, 2024
+Added: For the Quarter Ended
+Added: (In thousands, except per share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024
+Added: Interest income
+Added: $ 369,405 $ 372,068 $ 369,363 $ 358,721
+Added: Interest expense
+Added: (102,758) (109,717) (107,114) (109,722)
+Added: Net interest income
+Added: 266,647 262,351 262,249 248,999
+Added: Non-interest income
+Added: 155,436 159,025 152,244 148,848
+Added: Investment securities gains (losses), net
+Added: 977 3,872 3,233 (259)
+Added: Salaries and employee benefits
+Added: (153,819) (153,122) (149,120) (151,801)
+Added: Other expense
+Added: (81,899) (84,478) (83,094) (93,896)
+Added: Provision for credit losses
+Added: (13,508) (9,140) (5,468) (4,787)
+Added: Income before income taxes
+Added: 173,834 178,508 180,044 147,104
+Added: (36,590) (38,245) (38,602) (31,652)
+Added: Non-controlling interest (expense) income
+Added: (1,136) (2,256) (1,889) (2,789)
+Added: Net income attributable to Commerce Bancshares, Inc.
+Added: $ 136,108 $ 138,007 $ 139,553 $ 112,663
+Added: Net income per common share — basic*
+Added: $ .96 $ .97 $ .98 $ .78
+Added: Net income per common share — diluted*
+Added: $ .96 $ .97 $ .98 $ .78
+Added: Weighted average shares — basic* 140,185 140,928 141,625 142,269
+Added: Weighted average shares — diluted* 140,371 141,115 141,793 142,427
+Added: Year ended December 31, 2023
+Added: For the Quarter Ended
+Added: (In thousands, except per share data) 12/31/2023 9/30/2023 6/30/2023 3/31/2023
+Added: Interest income
+Added: $ 362,609 $ 361,162 $ 348,663 $ 308,857
+Added: Interest expense
+Added: (114,188) (112,615) (99,125) (57,234)
+Added: Net interest income
+Added: 248,421 248,547 249,538 251,623
+Added: Non-interest income
+Added: 144,879 142,949 147,605 137,612
+Added: Investment securities gains (losses), net
+Added: 7,601 4,298 3,392 (306)
+Added: Salaries and employee benefits
+Added: (147,456) (146,805) (145,429) (144,373)
+Added: Other expense
+Added: (103,798) (81,205) (82,182) (79,734)
+Added: Provision for credit losses
+Added: (5,879) (11,645) (6,471) (11,456)
+Added: Income before income taxes
+Added: 143,768 156,139 166,453 153,366
+Added: (32,307) (33,439) (35,990) (32,813)
+Added: Non-controlling interest (expense) income
+Added: (2,238) (2,104) (2,674) (1,101)
+Added: Net income attributable to Commerce Bancshares, Inc.
+Added: $ 109,223 $ 120,596 $ 127,789 $ 119,452
+Added: Net income per common share — basic*
+Added: $ .76 $ .83 $ .89 $ .82
+Added: Net income per common share — diluted*
+Added: $ .76 $ .83 $ .89 $ .82
+Added: Weighted average shares — basic*
+Added: 142,781 143,219 143,413 143,550
+Added: Weighted average shares — diluted*
+Added: 142,893 143,335 143,554 143,845
+Added: * Restated for the 5% stock dividend distributed in 2025.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.