Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q1 2025 Earnings Presentation
24 slides from Commerce Bancshares's earnings presentation, 2025
Slide 1: Commerce Bancshares, Inc. Earnings Highlights 1st Quarter 2025
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 1st Quarter 2025
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT A number of statements we will be making in our presentation and in the accompanying slides are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements of the Corporation’s plans, goals, objectives, expectations
Slide 3: Commerce Bancshares Total Assets
COMMERCE BANCSHARES TOTAL ASSETS $32.4 160 YEARS IN BUSINESS BILLION TOTAL DEPOSITS $25.8 BILLION 42ND LARGEST U.S. BANK BASED ON ASSET SIZE2 MARKET CAP TOTAL $17.4 LOANS3 BILLION $8.3 BILLION $9.8 COMMERCIAL CARD VOLUME 21ST BILLION AS OF DECEMBER 31, 2024 LARGEST U.S. BANK BASED ON MARKET CAP2 TOT
Slide 4: Track Record of Long-Term Outperformance
TRACK RECORD OF LONG-TERM OUTPERFORMANCE Revenue Diversification Deposit Franchise Balanced earnings profile, fee revenue $24.5 billion in low-cost, diverse at 37%1 of total revenue, bolstered by deposits2 with peer-leading growing wealth and national payments historical deposit betas businesses Cre
Slide 5: 1Q2025 Highlights
1Q2025 HIGHLIGHTS • Earnings of $.98 per share, compared to $.82 per share in the same quarter last year • PPNR1 of $190MM, an increase of $38MM over the same quarter last year Performance • ROAA of 1.69% and ROAE of 15.82% • Efficiency ratio of 55.6% • Net Income of $132MM in Q1, an increase of $19
Slide 6: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Quarterly Average Balances 1Q25 vs. 4Q24 1Q25 vs. 1Q24 $ in millions 1Q25 $ Change % Change $ Change % Change Average Loans: Commercial $11,189.4 $178.7 2% $115.6 1% Increased 1% compared to the previous quarter. Consumer 6,053.3 -5.7 0% 47.0 1% Interest Earning Deposits Tot
Slide 7: Balance Sheet
BALANCE SHEET Loans Deposits QTD Average Balances QTD Average Balances $ billions $ billions 6.27% 6.11% +2% 6.02% $24.4 $24.9 $24.9 +1% $7.3 $7.4 $7.3 $17.1 $17.1 $17.2 $6.0 $6.1 $6.0 1.97% 1.87% 1.72% $17.1 $17.5 $17.6 $11.1 $11.0 $11.2 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 Consumer Loans Loan Yield1 Non-
Slide 8: Loan Portfolio
LOAN PORTFOLIO Period-End Balances QTD Average Balances $ in 000s 3/31/2025 12/31/2024 3/31/2024 QoQ YoY $ in 000s 3/31/2025 12/31/2024 3/31/2024 QoQ YoY Business $6,239,276 $6,053,820 $5,994,974 3.1% 4.1% Business $6,106,185 $5,963,217 $5,873,525 2.4% 4.0% Construction 1,419,572 1,409,901 1,497,647
Slide 9: Commercial Real Estate Breakdown
COMMERCIAL REAL ESTATE BREAKDOWN Real Estate - Business Loans: Office Outstanding Balances by Geography1 Other Real Estate - Business Loans Midwest CO States Real Estate - % of Total Business Loans Loans $3.6 billion IL OH 0.6% OK 4.5% 5.5% Owner- Owner – Occupied 7.2% 5.7% 2.9% 34.5% occupied Offic
Slide 10: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Pre-Tax, Pre-Provision Net Revenue (PPNR) $ in millions Net Interest Income (+) 1Q25 Comparison Non-Interest Income (+) vs. 1Q24 24.7% Non-Interest Expense (-) vs. 4Q24 1.8% Pre-Tax, Pre-Provision Net Revenue (=) $422 $428 Revenue increased 1.4% $398 over Q4 and 7.6% over
Slide 11: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS 1Q25 vs. 4Q24 1Q25 vs. 1Q24 $ in millions 1Q25 $ Change % Change $ Change % Change Net Interest Income $269.1 $2.5 1% $20.1 8% Non-Interest Income $158.9 $3.5 2% $10.1 7% Non-Interest Expense $238.4 $2.7 1% -$7.3 -3% Pre-Tax, Pre-Provision Net Revenue1 $189.7 $3.3 2% $37.
Slide 12: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 1Q25 vs. 4Q24 1Q25 vs. 1Q24 $ in millions 1Q25 $ Change % Change $ Change % Change Trust Fees: Trust Fees $56.6 $.2 0% $5.5 11% Increase over the prior year mainly due to higher private client fees. Bank Card Transaction Fees 45.6 -2.2 -5% -1.3 -3% Bank Card Transactio
Slide 13: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 1Q25 vs. 4Q24 1Q25 vs. 1Q24 $ in millions 1Q25 $ Change % Change $ Change % Change Salaries and Employee Benefits $153.1 -$.7 0% $1.3 1% Total Non-Interest Expense: Excluding the litigation settlement Data Processing and Software 32.2 -.3 -1% 1.1 3% expense and an FDI
Slide 14: Liquidity and Capital
LIQUIDITY AND CAPITAL 14
Slide 15: Deposit Balance Trends
DEPOSIT BALANCE TRENDS Segment view $ in billions Commercial Consumer Wealth $13.4 $12.8 $12.0 $11.9 $12.2 $12.3 $12.3 $12.4 $12.5 $12.6 $10.4 $9.9 $10.3 $10.0 $10.2 $10.5 $3.0 $2.8 $2.4 $2.4 $2.4 $2.5 $2.5 $2.6 2021 2022 2023 2024 4Q24 1Q25 4Q24 1Q25 2021 2022 2023 2024 4Q24 1Q25 4Q24 1Q25 2021 202
Slide 16: Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME Quarterly Net Yield on Interest Earning Assets • Purchases of investment securities in Q1 totaled $508MM with a weighted average yield of approximately 4.74%. 1Q 2024 4Q 2024 1Q 2025 • Cash flows of approximately $1.4B from maturities and 3.56%
Slide 17: Summary of Fixed & Floating Loans
SUMMARY OF FIXED & FLOATING LOANS Over 60% of total loans are variable; 67% of commercial loans have floating rates Fixed Variable Business Construction Business RE Commercial Total Loans: $6.1B Total Loans: $1.4B Total Loans: $3.7B 4% 36% 40% 64% 60% 96% Personal RE Consumer HELOC Consumer Card Tot
Slide 18: High Quality, Highly Liquid and Diverse Investment Portfolio
HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO Duration Composition of AFS Portfolio QTD – Mar. 31, 2025 Avg Rate (yrs) As of March 31, 2025 Treasury & agency1 3.67% 3.4 Total available for sale securities Average balance: $9.2 billion, at fair value Municipal 2.05%2 4.6 MBS 2.08% 5.5
Slide 19: Sound Capital and Liquidity Position
SOUND CAPITAL AND LIQUIDITY POSITION Tier 1 Risk-Based Capital Ratio1 Loan to Deposit Ratio CBSH Peer Median: 12.6% Large, stable deposit base 16.7% 69% Average PB 16.4% Core Deposits Loan to HOMB 15.1% Deposit Ratio 3 UBSI 14.1% $23.5 Commerce 83% HWC 14.1% Average Loan to CFR 14.1% Billion2 Deposi
Slide 20: Maintaining Strong Credit Quality
MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) Allowance for Credit $ in millions Losses on Loans (ACL) $ in millions $15.8 $315.8 $335.6 $10.7 $10.8 $8.9 $9.2 $160.5 $162.7 1.34% $167.0 .25% .25% 1.31% .21% .20% .95% .96% .15% .93% 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 NCOs- CBSH NCO/Average
Slide 21: Allocation of Allowance
ALLOCATION OF ALLOWANCE CECL allowances reflect the economic and market outlook Allowance for Credit Losses (ACL) on Loans December 31, 2024 March 31, 2025 $ in millions $175 1.00% Allowance for % of Allowance for % of Credit Losses Outstanding Credit Losses Outstanding 0.96% 0.94% 0.95% $ in millio
Slide 22: Capital for Business
CAPITAL FOR BUSINESS® A middle-market private equity firm focused on the success of industrial growth companies Transaction Types Quick Facts: Investment Criteria Management buyouts • Manufacturing, distribution and Leveraged buyouts Small Business Investment Succession plans certain service compani
Slide 23: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Pre-tax, Pre-provision Net Revenue For The Three Months Ended (DOLLARS IN THOUSANDS) Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 A Net Interest Income $ 269,102 $ 266,647 $ 248,999 B Non-Interest Income $ 158,949 $ 155,436 $ 148,848 C Non-Interest Expense $ 238,376 $ 235,718 $
Slide 24: 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/