Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q3 2025 Earnings Presentation
26 slides from Commerce Bancshares's earnings presentation, 2025
Slide 1: Commerce Bancshares, Inc. Earnings Highlights 3rd Quarter 2025
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 3rd Quarter 2025 ~·~ ltl) ......,, Commerce Bancshares, Inc .
Slide 2: Disclosures
DISCLOSURES 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 Commer
Slide 3: Commerce Bancshares at a glance
COMMERCE BANCSHARES TOTAL ASSETS $32.3 160 YEARS IN BUSINESS BILLION TOTAL DEPOSITS $25.5 BILLION 43RD LARGEST U.S. BANK BASED ON ASSET SIZE2 MARKET CAP TOTAL $17.8 LOANS4 BILLION $7.9 BILLION $9.8 COMMERCIAL CARD VOLUME 22ND 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 $24.0 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 (\)
Slide 5: 3Q2025 Highlights
3Q2025 HIGHLIGHTS • Earnings of $1.06 per share, compared to $1.01 per share in the same quarter last year • PPNR1 of $197MM, an increase of $13MM over the same quarter last year Performance • ROAA of 1.78% and ROAE of 15.26% • Efficiency ratio of 55.3% • Net Income of $142MM in Q3, an increase of $
Slide 6: FineMark Acquisition Update
FINEMARK ACQUISITION UPDATE • Received all regulatory approvals • Approved by FineMark shareholders • Integration Management Office (IMO) established • Transaction expected to close on January 1, 2026 3 States 13 Offices ~300 Associates TOTAL ASSETS TOTAL LOANS TOTAL DEPOSITS TOTAL TRUST AUA1 $3.9 $
Slide 7: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Quarterly Average Balances 3Q25 vs. 2Q25 3Q25 vs. 3Q24 $ in millions 3Q25 $ Change % Change $ Change % Change Average Loans: Commercial $11,342.6 -$27.8 -0% $394.5 4% Increased 3% compared to the prior year. Consumer 6,151.8 26.4 0% 74.0 1% Interest Earning Deposits Total Lo
Slide 8: Balance Sheet
BALANCE SHEET Loans Deposits QTD Average Balances QTD Average Balances $ billions $ billions 6.35% 6.02% +2% -------C)>--------► 6.01% $24.4 $24.9 $24.8 +3% ------.C)>-------► $7.3 $7.3 $7.4 $17.0 $17.5 $17.5 $6.1 $6.1 $6.2 2.00% 1.67% 1.71% $17.1 $17.6 $17.4 $10.9 $11.4 $11.3 3Q24 2Q25 3Q25 3Q24 2Q
Slide 9: Loan Portfolio
LOAN PORTFOLIO Period-End Balances QTD Average Balances $ in 000s 9/30/2025 6/30/2025 9/30/2024 QoQ YoY $ in 000s 9/30/2025 6/30/2025 9/30/2024 QoQ YoY Business $6,414,792 $6,328,684 $6,048,328 1.4% 6.1% Business $6,230,019 $6,247,252 $5,966,797 -.3% 4.4% Construction 1,433,652 1,405,398 1,381,607 2
Slide 10: 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 $3.7 billion OK IL 4.2% 5.4% 0.6% Owner – Occupied 6.9% Owner- Industrial OH 5.1% occupied 7.6%
Slide 11: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Pre-Tax, Pre-Provision Net Revenue (PPNR) --- $ in millions Net Interest Income (+) 3Q25 Comparison Non-Interest Income (+) vs. 3Q24 7.2% - Non-Interest Expense (-) Revenue decreased 1.1% vs. 2Q25 -2.2% from Q2 and increased Pre-Tax, Pre-Provision Net Revenue (=) 4.6% ove
Slide 12: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS 3Q25 vs. 2Q25 3Q25 vs. 3Q24 $ in millions 3Q25 $ Change % Change $ Change % Change Net Interest Income $279.5 -$.7 0% $17.1 7% Non-Interest Income $161.5 -$4.1 -2% $2.5 2% Non-Interest Expense $244.0 -$.4 0% $6.4 3% Pre-Tax, Pre-Provision Net Revenue1 $197.0 -$4.4 -2% $13
Slide 13: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 3Q25 vs. 2Q25 3Q25 vs. 3Q24 $ in millions 3Q25 $ Change % Change $ Change % Change Trust Fees: Trust Fees $58.4 $2.8 5% $3.7 7% Increase over the prior year mainly due to higher private Bank Card Transaction Fees 45.6 -.8 -2% -2.0 -4% client fees. Deposit Account Charg
Slide 14: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 3Q25 vs. 2Q25 3Q25 vs. 3Q24 $ in millions 3Q25 $ Change % Change $ Change % Change Salaries and Employee Benefits $157.5 $2.4 2% $4.3 3% Salaries and Benefits: Data Processing and Software 33.6 .7 2% 1.4 4% Increase over the previous year mainly due to higher Net Occu
Slide 15: Liquidity and Capital
LIQUIDITY AND CAPITAL ,..... ~ \.11' Commerce Bancshares, Inc. 15
Slide 16: 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 $12.4 $12.2 $12.4 $12.3 - - - - $10.4 $10.6 $10.7 $9.9 $10.0 $10.2 $3.0 $2.8 $2.4 $2.4 $2.6 $2.5 $2.5 $2.5 2021 2022 2023 2024 2Q25 3Q25 2Q25 3Q25 2021 2022 2023 2024 2Q25 3Q25 2Q25 3Q2
Slide 17: Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME Quarterly Net Yield on Interest Earning Assets • Cash flows of approximately $1.3B from maturities and paydowns of investments are expected over the next twelve months. • 3Q 2024 • 2Q 2025 • 3.70% 3Q 2025 3.64% 3.50% • Net yield on interest ear
Slide 18: 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 19: High Quality, Highly Liquid and Diverse Investment Portfolio
HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO Duration Composition of AFS Portfolio QTD – Sep. 30, 2025 Avg Rate (yrs) As of September 30, 2025 Treasury & agency1 3.62% 3.9 Total available for sale securities Average balance: $8.9 billion, at fair value Municipal 2.05%2 4.4 MBS 2.01%
Slide 20: Sound Capital and Liquidity Position
SOUND CAPITAL AND LIQUIDITY POSITION Tier 1 Risk-Based Capital Ratio1 Loan to Deposit Ratio CBSH Peer Median: 13.0% Large, stable deposit base 17.2% : 71% Average PB I 17.1% Core Deposits Loan to i HOMB I l 15.6% Deposit Ratio 3 $23.0 I Commerce ! CFR I 14.4% 82% WSFS 14.1% I Average Loan to I I HWC
Slide 21: Maintaining Strong Credit Quality
MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) Allowance for Credit $ in millions Losses on Loans (ACL) $ in millions $13.9 $11.6 $318.9 $345.7 $9.6 $9.7 $10.3 $160.8 $165.3 1.36% $175.7 1.35% .22% .22% .23% .99% .19% .19% .94% .94% 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 ■ NCOs- CBSH CJ NCO/Av
Slide 22: Allocation of Allowance
ALLOCATION OF ALLOWANCE CECL allowances reflect the economic and market outlook Allowance for Credit Losses (ACL) on Loans June 30, 2025 September 30, 2025 $ in millions $200 0.99% 1.00% Allowance for % of Allowance for % of Credit Losses Outstanding Credit Losses Outstanding 0.96% $ in millions 0.9
Slide 23: 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 24: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Pre-tax, Pre-provision Net Revenue For The Three Months Ended (DOLLARS IN THOUSANDS) Sep. 30, 2025 Jun. 30, 2025 Sep. 30, 2024 A Net Interest Income $ 279,457 $ 280,147 $ 262,351 B Non-Interest Income $ 161,511 $ 165,613 $ 159,025 C Non-Interest Expense $ 244,018 $ 244,437 $
Slide 25: Contact Information
Investor Relations 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/ ,..... ~ \.11' Commerce Ban
Slide 26: ltl)
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