Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q2 2025 Earnings Presentation
27 slides from Commerce Bancshares's earnings presentation, Jul 16, 2025
Slide 1: Earnings Highlights 2nd Quarter 2025
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 2nd Quarter 2025
Slide 2: Disclosures: Cautionary Note Regarding Forward-Looking Statements
DISCLOSURES 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed business combination transaction between Comm
Slide 3: Additional Information and Where to Find It
3 ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the Proposed Transaction, Commerce will file with the SEC a Registration Statement on Form S-4 to register the shares of Commerce common stock to be issued in connection with the Proposed Transaction that will include a proxy statement
Slide 4: Commerce Bancshares
COMMERCE BANCSHARES 160 YEARS IN BUSINESS 142 branches and 249 ATMs across 7 states CORE BANKING FOOTPRINT COMMERCIAL | CONSUMER | WEALTH MANAGEMENT St. Louis • Kansas City • Springfield Central Missouri • Central Illinois • Wichita Tulsa • Oklahoma City • Denver COMMERCIAL OFFICES Cincinnati • Nash
Slide 5: Track Record of Long-Term Outperformance
TRACK RECORD OF LONG-TERM OUTPERFORMANCE Revenue Diversification Balanced earnings profile, fee revenue at 37%1 of total revenue, bolstered by growing wealth and national payments businesses Deposit Franchise $24.1 billion in low-cost, diverse deposits2 with peer-leading historical deposit betas Cre
Slide 6: 2Q2025 Highlights
2Q2025 HIGHLIGHTS • Earnings of $1.14 per share, compared to $1.03 per share in the same quarter last year • PPNR1 of $201MM, an increase of $19MM over the same quarter last year • ROAA of 1.95% and ROAE of 17.40% • Efficiency ratio of 54.8% • Net Income of $152MM in Q2, an increase of $13MM over th
Slide 7: FineMark Acquisition Overview
FINEMARK ACQUISITION OVERVIEW Strategically Compelling Financially Attractive Low Integration Risk • Unique partnership with a client-focused private bank managing ~$8B in AUA1 and ~$4B in banking assets • Expands footprint in Florida, and enters new markets of Arizona, and South Carolina • FineMark
Slide 8: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 2Q25 vs. 2Q24 2Q25 vs. 1Q25 Quarterly Average Balances % Change$ Change% Change$ Change2Q25$ in millions 2%$252.52%$181.0$11,370.4Commercial 1%68.81%72.16,125.4Consumer 2%$321.31%$253.1$17,495.8Total Loans 3%$245.1-1%-$135.1$9,407.2Investment Securities1 -3%-$63.0-15%-$351.7
Slide 9: Balance Sheet
$17.0 $17.6 $17.6 $7.3 $7.3 $7.3 2Q24 1Q25 2Q25 $24.3 $24.9 $24.9 +2% $11.1 $11.2 $11.4 $6.1 $6.0 $6.1 2Q24 1Q25 2Q25 $17.2 $17.2 $17.5 +2% BALANCE SHEET 9 Loans Consumer Loans Commercial Loans Loan Yield1 Deposits QTD Average Balances $ billions Non-Interest Bearing Interest-Bearing Deposits Intere
Slide 10: Loan Portfolio
LOAN PORTFOLIO 10 YoYQoQ6/30/20243/31/20256/30/2025$ in 000s 3.9%1.4%$6,090,724 $6,239,276$6,328,684Business .6%-1.0%1,396,5151,419,5721,405,398Construction 5.2%3.6%3,572,5393,628,6353,757,778Business Real Estate .1%.4%3,055,1823,047,8093,058,845Personal Real Estate .6%2.0%2,145,6092,116,1602,157,86
Slide 11: Commercial Real Estate Breakdown
33.5% 16.6% 14.0% 9.3% 8.2%7.6% 5.2% Owner- occupied Industrial Office Multi-family RetailHotels Farm 3.3% Senior living 2.3% Other Real Estate - Business Loans: Office Outstanding Balances by Geography1 % of Total Loans Real Estate - Business Loans 7.1%Owner – Occupied 3.5%Industrial 3.0%Office 2.0
Slide 12: Income Statement Highlights
$159 $190 $269 $238 1Q25 $428 12 INCOME STATEMENT HIGHLIGHTS $152 $182 $262 $232 2Q24 $414 $166 $201 $280 $245 2Q25 $446 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 2Q25 Comparison 10.4%vs. 2Q24 6.1%vs. 1Q25 Pre-Tax, Pre-Provision N
Slide 13: Income Statement Highlights
2Q25 vs. 2Q24 2Q25 vs. 1Q25 % Change$ Change% Change$ Change2Q25$ in millions 7%$17.94%$11.0$280.1Net Interest Income 9%$13.44%$6.7$165.6Non-Interest Income 5%$12.23%$6.1$244.4Non-Interest Expense 10%$19.06%$11.6$201.3Pre-Tax, Pre-Provision Net Revenue1 -87%-$2.8NM$8.0$.4Investment Securities Gains,
Slide 14: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 14 2Q25 vs. 2Q24 2Q25 vs. 1Q25 % Change$ Change% Change$ Change2Q25$ in millions 6%$3.3-2%-$1.0$55.6Trust Fees -2%-1.12%.846.4Bank Card Transaction Fees 4%.9-1%-.426.2Deposit Account Charges and Other Fees 30%1.421%1.16.2Capital Market Fees 20%.912%.65.4Consumer Broker
Slide 15: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 15 2Q25 vs. 2Q24 2Q25 vs. 1Q25 % Change$ Change% Change$ Change2Q25$ in millions 4%$5.91%$1.9$155.0Salaries and Employee Benefits 4%1.42%.732.9Data Processing and Software 9%1.1-3%-.413.7Net Occupancy 51%4.429%2.913.0Professional and other services 12%.62%.16.0Marketi
Slide 16: Liquidity and Capital
LIQUIDITY AND CAPITAL & commerce Bancshares, Inc.
Slide 17: Deposit Balance Trends
2021 2022 2023 2024 $3.0 $2.8 $2.4 $2.4 DEPOSIT BALANCE TRENDS Segment view $ in billions 17 2021 2022 2023 2024 $12.0 $11.9 $10.4 $9.9 2021 2022 2023 2024 $12.8 $13.4 $12.2 $12.3 Commercial Consumer Wealth Average Balance 1Q25 2Q25 $12.6 $12.4 Period EndAverage Balance Average Balance Segment balan
Slide 18: Opportunities to Enhance and Protect Net Interest Income
3.55% 3.56% 3.70% Net Yield Hedging Structures: Four floor contracts (indexed to 1 Month SOFR) to hedge the risk of declining interest rates on floating rate commercial loans. The contracts have a term of 6 years. • 3.5% floor contract with a notional value of $500 million. The contract began 7/2024
Slide 19: Summary of Fixed & Floating Loans
Over 60% of total loans are variable; 67% of commercial loans have floating rates SUMMARY OF FIXED & FLOATING LOANS 36% 64% Business Total Loans: $6.1B Fixed Variable C om m er ci al 56% 44% Personal RE Total Loans: $3.1B C on su m er 100% 40% 60% Business RE Total Loans: $3.7B 95% 5% Consumer Card
Slide 20: High Quality, Highly Liquid and Diverse Investment Portfolio
27% 8% 47% 16% 2% Composition of AFS Portfolio Treasury & agency Municipal MBS Asset-backed Other debt HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO 1Excludes inflation effect on TIPs; 2Tax equivalent yield Duration (yrs)Avg RateQTD – Jun. 30, 2025 3.33.66%Treasury & agency1 4.52.05%2
Slide 21: Sound Capital and Liquidity Position
91%9% Core Deposits - Non-Interest Bearing - Interest Checking - Savings and Money Market Certificates of Deposits Average Loan to Deposit Ratio3 SOUND CAPITAL AND LIQUIDITY POSITION 21 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of March 31, 2025 2Period-end bal
Slide 22: Maintaining Strong Credit Quality
$19.3 $22.6 $18.9 $125.2 $145.9 2Q24 1Q25 2Q25 $9.8 $10.8 $9.7$10.7 $12.5 2Q24 1Q25 2Q25 MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $158.6 $167.0 $165.3 $316.3 $333.6 2Q24 1Q25 2Q25 Allowance for Credit Losses
Slide 23: Allocation of Allowance
ALLOCATION OF ALLOWANCE 23 CECL allowances reflect the economic and market outlook June 30, 2025March 31, 2025 % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL)$ in millions .73%$ 46.5.73%$ 45.7Business .86%32.2 .87%31.7 Bus R/E 2.00%28
Slide 24: Capital for Business: Quick Facts
Quick Facts: Small Business Investment Company (SBIC) founded in 1959 Nationwide footprint with Greater Midwest Focus 32 Portfolio Companies Representing $973.3 million in Revenue Over 3,000 Employees Fair Value as of June 30, 2025: $174.1 million Investment Criteria • Manufacturing, distribution an
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 25 For The Three Months Ended Jun. 30, 2024Mar. 31, 2025Jun. 30, 2025(DOLLARS IN THOUSANDS) 262,249$269,102$280,147$Net Interest IncomeA 152,244$158,949$165,613$Non-Interest IncomeB 232,214$238,376$244,437$Non-Interest ExpenseC 182,279$189,675$201,323$Pre-Provision Net Reven
Slide 26: Tangible Book Value Per Share Impact
26 BASIC SHARES TANGIBLE BOOK VALUE PER SHARE IMPACT $ MILLIONS (MILLIONS) $ PER SHARE CBSH tangible book value per share as of 3/31/2025 3,327 134 $24.91 (+) three quarters of consensus earnings prior to close 412 (-) three quarters of consensus dividends prior to close (110) (-) three quarters of
Slide 27: Contact Information
Contact Information: Matt Burkemper Senior Vice President, Commerce Bank Corporate Development and Investor Relations 314.746.7485 Matthew.Burkemper@commercebank.com Commerce Bancshares, Inc. Investor Relations website: http://investor.commercebank.com/