Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q2 2025 Earnings Presentation
27 slides from Commerce Bancshares's earnings presentation, 2025
Slide 1: Commerce Bancshares, Inc. Earnings Highlights 2nd Quarter 2025
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 2nd Quarter 2025
Slide 2: Disclosures: Cautionary Note Regarding Forward-Looking Statements
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: Disclosures: Additional Information and Where to Find It
DISCLOSURES 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
Slide 4: 160 Years in Business
COMMERCE BANCSHARES TOTAL ASSETS $32.3 160 YEARS IN BUSINESS BILLION TOTAL DEPOSITS $25.5 BILLION 42ND LARGEST U.S. BANK BASED ON ASSET SIZE2 MARKET CAP TOTAL $17.7 LOANS4 BILLION $8.3 BILLION $9.8 COMMERCIAL CARD VOLUME 20TH BILLION AS OF DECEMBER 31, 2024 LARGEST U.S. BANK BASED ON MARKET CAP2 TOT
Slide 5: Track Record of Long-Term Outperformance
TRACK RECORD OF LONG-TERM OUTPERFORMANCE Revenue Diversification Deposit Franchise Balanced earnings profile, fee revenue $24.1 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 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 Performance • ROAA of 1.95% and ROAE of 17.40% • Efficiency ratio of 54.8% • Net Income of $152MM in Q2, an increase of $
Slide 7: FineMark Acquisition Overview
FINEMARK ACQUISITION OVERVIEW • Unique partnership with a client-focused private bank managing ~$8B in AUA1 and ~$4B in banking assets • Expands footprint in Florida, and enters new markets of Strategically Arizona, and South Carolina Compelling • FineMark brings niche wealth expertise, including ~$
Slide 8: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Quarterly Average Balances 2Q25 vs. 1Q25 2Q25 vs. 2Q24 $ in millions 2Q25 $ Change % Change $ Change % Change Average Loans: Commercial $11,370.4 $181.0 2% $252.5 2% Increased 1% compared to the previous quarter. Consumer 6,125.4 72.1 1% 68.8 1% Interest Earning Deposits Tot
Slide 9: Balance Sheet
BALANCE SHEET Loans Deposits QTD Average Balances QTD Average Balances $ billions $ billions 6.30% +2% 6.02% 6.01% $24.3 $24.9 $24.9 +2% $7.3 $7.3 $7.3 $17.2 $17.2 $17.5 $6.1 $6.0 $6.1 1.99% 1.72% 1.67% $17.0 $17.6 $17.6 $11.1 $11.2 $11.4 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 Consumer Loans Loan Yield1 Non-
Slide 10: Loan Portfolio
LOAN PORTFOLIO Period-End Balances QTD Average Balances $ in 000s 6/30/2025 3/31/2025 6/30/2024 QoQ YoY $ in 000s 6/30/2025 3/31/2025 6/30/2024 QoQ YoY Business $6,328,684 $6,239,276 $6,090,724 1.4% 3.9% Business $6,247,252 $6,106,185 $5,980,364 2.3% 4.5% Construction 1,405,398 1,419,572 1,396,515 -
Slide 11: 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 $3.8 billion IL OH 0.6% OK 4.4% 5.3% Owner- 5.6% 2.9% Owner – Occupied 7.1% occupied Industrial
Slide 12: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Pre-Tax, Pre-Provision Net Revenue (PPNR) $ in millions Net Interest Income (+) 2Q25 Comparison Non-Interest Income (+) vs. 2Q24 10.4% Non-Interest Expense (-) Revenue increased 4.1% vs. 1Q25 6.1% over Q1 and 7.5% over Pre-Tax, Pre-Provision Net Revenue (=) the prior year
Slide 13: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS 2Q25 vs. 1Q25 2Q25 vs. 2Q24 $ in millions 2Q25 $ Change % Change $ Change % Change Net Interest Income $280.1 $11.0 4% $17.9 7% Non-Interest Income $165.6 $6.7 4% $13.4 9% Non-Interest Expense $244.4 $6.1 3% $12.2 5% Pre-Tax, Pre-Provision Net Revenue1 $201.3 $11.6 6% $19
Slide 14: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 2Q25 vs. 1Q25 2Q25 vs. 2Q24 $ in millions 2Q25 $ Change % Change $ Change % Change Trust Fees $55.6 -$1.0 -2% $3.3 6% Trust Fees: Bank Card Transaction Fees 46.4 2% -2% Increase over the prior year mainly .8 -1.1 due to higher private client fees. Deposit Account Charg
Slide 15: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 2Q25 vs. 1Q25 2Q25 vs. 2Q24 $ in millions 2Q25 $ Change % Change $ Change % Change Salaries and Employee Benefits $155.0 $1.9 1% $5.9 4% Professional and other services: Data Processing and Software 32.9 .7 2% 1.4 4% Includes $1.9 million in acquisition related expens
Slide 16: Liquidity and Capital
LIQUIDITY AND CAPITAL 16
Slide 17: 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 $12.6 $12.4 $10.4 $10.6 $10.6 $9.9 $10.0 $10.0 $3.0 $2.8 $2.4 $2.4 $2.5 $2.6 $2.6 $2.5 2021 2022 2023 2024 1Q25 2Q25 1Q25 2Q25 2021 2022 2023 2024 1Q25 2Q25 1Q25 2Q25 2021 202
Slide 18: 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 2Q 2024 1Q 2025 2Q 2025 maturities and paydowns of investments are expected over the next twelve months. 3.70% 3.55% 3.56% • Net yield on interest earning a
Slide 19: 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 20: High Quality, Highly Liquid and Diverse Investment Portfolio
HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO Duration Composition of AFS Portfolio QTD – Jun. 30, 2025 Avg Rate (yrs) As of June 30, 2025 Treasury & agency1 3.66% 3.3 Total available for sale securities Average balance: $9.1 billion, at fair value Municipal 2.05%2 4.5 MBS 2.08% 5.8 T
Slide 21: Sound Capital and Liquidity Position
SOUND CAPITAL AND LIQUIDITY POSITION Tier 1 Risk-Based Capital Ratio1 Loan to Deposit Ratio PB Peer Median: 12.9% Large, stable deposit base 16.9% 70% Average CBSH 16.9% Core Deposits Loan to HOMB 15.4% Deposit Ratio 3 HWC 14.5% $23.1 Commerce 82% CFR 14.3% Average Loan to WSFS 14.1% Billion2 Deposi
Slide 22: Maintaining Strong Credit Quality
MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) Allowance for Credit $ in millions Losses on Loans (ACL) $ in millions $12.5 $333.6 $9.8 $10.7 $10.8 $9.7 $316.3 $158.6 1.34% $167.0 1.36% $165.3 .25% .23% .20% .22% .96% .17% .92% .94% 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 NCOs- CBSH NCO/Average
Slide 23: Allocation of Allowance
ALLOCATION OF ALLOWANCE CECL allowances reflect the economic and market outlook Allowance for Credit Losses (ACL) on Loans March 31, 2025 June 30, 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 millions (
Slide 24: 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 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Pre-tax, Pre-provision Net Revenue For The Three Months Ended (DOLLARS IN THOUSANDS) Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 A Net Interest Income $ 280,147 $ 269,102 $ 262,249 B Non-Interest Income $ 165,613 $ 158,949 $ 152,244 C Non-Interest Expense $ 244,437 $ 238,376 $
Slide 26: Commerce | FineMark Pro Forma Purchase Accounting Summary
COMMERCE | FINEMARK PRO FORMA PURCHASE ACCOUNTING SUMMARY BASIC SHARES TANGIBLE BOOK VALUE PER SHARE IMPACT $ MILLIONS (MILLIONS) $ PER SHARE GOODWILL & OTHER INTANGIBLE ASSET RECOGNITION $ MILLIONS CBSH tangible book value per share as of 3/31/2025 1 3,327 134 $24.91 Aggregate merger consideration
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/