Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q3 2025 Earnings Presentation
26 slides from Commerce Bancshares's earnings presentation, Oct 16, 2025
Slide 1: Earnings Highlights 3rd Quarter 2025
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 3rd 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: Commerce Bancshares: 160 Years in Business
COMMERCE BANCSHARES 160 YEARS IN BUSINESS 142 branches and 250 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 4: 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 $24.0 billion in low-cost, diverse deposits2 with peer-leading historical deposit betas Cre
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 • ROAA of 1.78% and ROAE of 15.26% • Efficiency ratio of 55.3% • Net Income of $142MM in Q3, an increase of $4MM over the
Slide 6: FineMark Acquisition Update
FINEMARK ACQUISITION UPDATE • Received all regulatory approvals • Approved by FineMark shareholders • Integration Management Office (IMO) established • Transaction expected to close on January 1, 2026 3 States 13 Offices ~300 Associates 6Source: S&P Capital IQ Pro and Company documents. Financial da
Slide 7: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 3Q25 vs. 3Q24 3Q25 vs. 2Q25 Quarterly Average Balances % Change$ Change% Change$ Change3Q25$ in millions 4%$394.5-0%-$27.8$11,342.6Commercial 1%74.00%26.46,151.8Consumer 3%$468.5-0%-$1.5$17,494.4Total Loans 2%$175.8-2%-$209.7$9,197.5Investment Securities1 -6%-$142.719%$385.6
Slide 8: Balance Sheet: Loans and Deposits Average Balances
$17.1 $17.6 $17.4 $7.3 $7.3 $7.4 3Q24 2Q25 3Q25 $24.4 $24.9 $24.8 +2% $10.9 $11.4 $11.3 $6.1 $6.1 $6.2 3Q24 2Q25 3Q25 $17.0 $17.5 $17.5 +3% BALANCE SHEET 8 Loans Consumer Loans Commercial Loans Loan Yield1 Deposits QTD Average Balances $ billions Non-Interest Bearing Interest-Bearing Deposits Intere
Slide 9: Loan Portfolio
LOAN PORTFOLIO 9 YoYQoQ9/30/20246/30/20259/30/2025$ in 000s 6.1%1.4%$6,048,328 $6,328,684$6,414,792Business 3.8%2.0%1,381,6071,405,3981,433,652Construction 4.4%-.3%3,586,9993,757,7783,745,000Business Real Estate .9%.4%3,043,3913,058,8453,070,980Personal Real Estate 3.0%.6%2,108,2812,157,8672,171,599
Slide 10: Commercial Real Estate Breakdown
32.5% 17.5% 14.5% 9.7% 8.2%7.4% Owner- occupied Industrial Office Multi-family Retail Hotels Farm 2.6% Senior living 2.4% Other 5.2% Real Estate - Business Loans: Office Outstanding Balances by Geography1 % of Total Loans Real Estate - Business Loans 6.9%Owner – Occupied 3.7%Industrial 3.1%Office 2.
Slide 11: Income Statement Highlights
$166 $201 $280 $245 2Q25 $446 11 INCOME STATEMENT HIGHLIGHTS $159 $184 $262 $237 3Q24 $421 $162 $197 $279 $244 3Q25 $441 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 3Q25 Comparison 7.2%vs. 3Q24 -2.2%vs. 2Q25 Pre-Tax, Pre-Provision N
Slide 12: Income Statement Highlights
3Q25 vs. 3Q24 3Q25 vs. 2Q25 % Change$ Change% Change$ Change3Q25$ in millions 7%$17.10%-$.7$279.5Net Interest Income 2%$2.5-2%-$4.1$161.5Non-Interest Income 3%$6.40%-$.4$244.0Non-Interest Expense 7%$13.2-2%-$4.4$197.0Pre-Tax, Pre-Provision Net Revenue1 104%$4.0NM$7.4$7.9Investment Securities Gains,
Slide 13: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 13 3Q25 vs. 3Q24 3Q25 vs. 2Q25 % Change$ Change% Change$ Change3Q25$ in millions 7%$3.75%$2.8$58.4Trust Fees -4%-2.0-2%-.845.6Bank Card Transaction Fees 8%2.04%1.227.4Deposit Account Charges and Other Fees -14%-.9-17%-1.05.1Capital Market Fees 45%2.124%1.36.7Consumer B
Slide 14: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 14 3Q25 vs. 3Q24 3Q25 vs. 2Q25 % Change$ Change% Change$ Change3Q25$ in millions 3%$4.32%$2.4$157.5Salaries and Employee Benefits 4%1.42%.733.6Data Processing and Software 0%.0-1%-.213.5Net Occupancy 28%2.5-13%-1.711.3Professional and other services -8%-.612%.76.7Mark
Slide 15: Liquidity and Capital
LIQUIDITY AND CAPITAL & commerce Bancshares, Inc.
Slide 16: Deposit Balance Trends
2021 2022 2023 2024 $3.0 $2.8 $2.4 $2.4 DEPOSIT BALANCE TRENDS Segment view $ in billions 16 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 2Q25 3Q25 $12.4 $12.3 Period EndAverage Balance Average Balance Segment balan
Slide 17: Net Yield and Hedging Structures
3.50% 3.70% 3.64% 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 18: 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 19: High Quality, Highly Liquid and Diverse Investment Portfolio
29% 8% 46% 15% 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 – Sep. 30, 2025 3.93.62%Treasury & agency1 4.42.05%2
Slide 20: 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 20 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of June 30, 2025 2Period-end bala
Slide 21: Maintaining Strong Credit Quality
$18.4 $18.9 $16.3 $141.5 $146.3 3Q24 2Q25 3Q25 $9.6 $9.7 $10.3 $13.9 $11.6 3Q24 2Q25 3Q25 MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $160.8 $165.3 $175.7 $318.9 $345.7 3Q24 2Q25 3Q25 Allowance for Credit Losses
Slide 22: Allocation of Allowance
ALLOCATION OF ALLOWANCE 22 CECL allowances reflect the economic and market outlook September 30, 2025June 30, 2025 % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL)$ in millions .79%$ 50.7.73%$ 46.5Business .90%33.6 .86%32.2 Bus R/E 1.9
Slide 23: 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 September 30, 2025: $181.5 million Investment Criteria • Manufacturing, distributi
Slide 24: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 24 For The Three Months Ended Sep. 30, 2024Jun. 30, 2025Sep. 30, 2025(DOLLARS IN THOUSANDS) 262,351$280,147$279,457$Net Interest IncomeA 159,025$165,613$161,511$Non-Interest IncomeB 237,600$244,437$244,018$Non-Interest ExpenseC 183,776$201,323$196,950$Pre-Provision Net Reven
Slide 25: 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/ 25
Slide 26: {37 Commerce Bancshares, Inc.
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