Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q1 2026 Earnings Presentation
48 slides from Commerce Bancshares's earnings presentation, 2026
Slide 1: Investor Update 1st Quarter 2026
COMMERCE BANCSHARES, INC. INVESTOR UPDATE 1st Quarter 2026
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended,
Slide 3: Commerce Bancshares at a glance
COMMERCE BANCSHARES TOTAL ASSETS $35.7 161 YEARS IN BUSINESS BILLION TOTAL DEPOSITS $28.4 BILLION 40TH LARGEST U.S. BANK BASED ON ASSET SIZE1 MARKET CAP TOTAL $20.5 LOANS3 BILLION $7.2 BILLION $9.9 COMMERCIAL CARD VOLUME 29TH BILLION AS OF DECEMBER 31, 2025 LARGEST U.S. BANK BASED ON MARKET CAP1 TOT
Slide 4: A consistent strategy with a long-term view
SUPER-COMMUNITY BANK PLATFORM A consistent strategy with a long-term view Customer relationship-based: Community Bank Challenge Accepted.® Super-Regional Bank • Award-winning High-performing teams • Sophisticated payment customer service and engaged workforce system capabilities • Focus on the full
Slide 5: Track Record of Long-Term Outperformance
TRACK RECORD OF LONG-TERM OUTPERFORMANCE Revenue Diversification Deposit Franchise Balanced earnings profile, fee revenue $27.0 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 Cre
Slide 6: A Full-Service, Diversified Operating Model
A FULL-SERVICE, DIVERSIFIED OPERATING MODEL Revenue Source Diversification Non-Interest Income $ in millions Compared to Peers $616 $652 Higher Fee $547 $573 Income Mix Wealth Mgmt vs. Peers Deposit Service 37% Charges 6% 4% Fees & Commissions $159 $176 Commerce 13% 6% 5% 5% 23% Card Income Peer Avg
Slide 7: Well-Diversified Loan Portfolio
WELL-DIVERSIFIED LOAN PORTFOLIO YTD Average Loans2 Loan Portfolio Diversification $ in millions Compared to Peers1 $20,340 Consumer/ Credit HELOCs Card $17,090 $17,476 $16,783 3% $15,570 Residential RE 3% Business Loans 22% 11% 30% 2022 2023 2024 2025 YTD 2026 37% 21% Commerce 2026 Loan Growth by Ca
Slide 8: A Strong Culture Is the Foundation of Our Success
A STRONG CULTURE IS THE FOUNDATION OF OUR SUCCESS At Commerce, our core values shape the way we live and work: We have a We collaborate We act with We are We strive for long-term as one team integrity customer- excellence view focused How we put our culture into practice: What defines us, ultimately
Slide 9: Commerce's Focus Extends Beyond Banking
COMMERCE’S FOCUS EXTENDS BEYOND BANKING We seek opportunities to help make our communities and our company a better place to live and work 2025 Engagement & Enablement1 Consistently scoring above the U.S. 500+ OUTSTANDING Financial Services norms for engagement, Nonprofit organizations RATING enable
Slide 10: Recent Recognition
RECENT RECOGNITION 2025 2025 Bank Director U.S. News & World Report Best Companies to Work For Top 25 U.S. Banks1 in Finance & Insurance Midwest2 2 consecutive years 3 consecutive years 2025 2025 S&P Global Center for Disability Inclusion Market Intelligence Leader in Top 50 Public Banks3 Disability
Slide 11: Commerce Bank Maintains Solid Performance Over Time
COMMERCE BANK MAINTAINS SOLID PERFORMANCE OVER TIME Return on Average Assets Return on Average Common Equity 2.00% 20.0% 15-yr average 15-yr average 1.75% CBSH: 1.41% 1.79% CBSH: 13.79% Peers: 1.06% Peers: 9.06% 15.8% 1.50% 15.0% 1.25% 1.17% 10.7% 1.00% 1.02% 10.0% 9.8% 0.75% 0.50% 5.0% 2011 2015 20
Slide 12: Long-Term View: Net Income and Earnings Per Share
LONG-TERM VIEW: NET INCOME AND EARNINGS PER SHARE $600 $4.50 Earnings Per Share Net Income $4.00 Earnings per Share $500 $3.50 Net Income $400 $3.00 $ 000s $2.50 $300 $2.00 $200 $1.50 $100 $1.00 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Dividends per share $0.53 $0.55 $0.58 $0.64 $0.74
Slide 13: Steady Shareholder Returns
STEADY SHAREHOLDER RETURNS as of March 31, 2026 Total Shareholder Returns Annualized Comparison Indexed, 3/31/2006 = $100 Total Shareholder Returns $800 30% S&P 500 25% CBSH KBW Bank $700 20% KBW Regional S&P 500 15% $600 10% 5% $500 0% -5% $400 -10% COMMERCE -15% $300 -20% KBW BANK 1 Year 3 Year 5
Slide 14: Strategic Position
STRATEGIC POSITION 14
Slide 15: Strategic Posture: Maintaining the Balance
STRATEGIC POSTURE: MAINTAINING THE BALANCE STRONG PERFORMANCE with Disciplined focus on ongoing refinement of the PRIORITY BLUE CHIP “Core Bank” investments • Super-Community Bank platform • Accelerate API Strategy • Relationship-based banking • High-touch customer service • Consumer Digital Deposit
Slide 16: Digital Technology: Application Modernization
DIGITAL TECHNOLOGY: APPLICATION MODERNIZATION Application Modernization is the focused effort to re-platform, replace, or significantly improve application platforms for the express purpose of modernizing features and capabilities, improving total cost of ownership, and / or reducing operating risk.
Slide 17: Enterprise Digital Strategy: Meeting Our Customers Where They Are
ENTERPRISE DIGITAL STRATEGY: MEETING OUR CUSTOMERS WHERE THEY ARE Our Vision Why it’s Important Transform the digital experience by • Demand for digital capabilities remains strong staying current on digital trends and and enduring across both current and future creating seamless digital ecosystems
Slide 18: Commercial Banking: Solutions That Matter
COMMERCIAL BANKING: SOLUTIONS THAT MATTER Revenue growth opportunities Financing solutions & deposit capabilities customized for your business • Working Capital Line of Credit • Commercial Real Estate • Full suite of Cash Management Solutions • Term Loans • ESOP Loans • Robust Card & Merchant Accept
Slide 19: Industry-Leading Commercial Payments Capabilities
INDUSTRY-LEADING COMMERCIAL PAYMENTS CAPABILITIES Innovative payments solutions to manage payables and receivables that enhance cash flow, streamline processing and increase efficiencies Treasury Commercial Payments Merchant Management Card Revenue Volume Revenue Volume Ongoing Over 160 years $226 $
Slide 20: CommerceHealthcare: Our Specialty
We don’t just serve the healthcare industry. It’s our specialty. CommerceHealthcare® Relationship Patient Receivables Engagement Management Solutions Solutions • Patient Lending • Receivables Optimization • Online Bill Pay • Reconciliation Automation • Patient Refunds • Healthcare Lockbox Accounts P
Slide 21: Expansion Markets Offer Growth Opportunities
EXPANSION MARKETS OFFER GROWTH OPPORTUNITIES Expansion Markets Loan Growth 1 Core Banking and Expansion $ in billions $3.5 $3.6 Market Footprint $3.3 $2.9 $2.5 $2.6 Expansion Markets Loan Growth +46% since 2020 2020 2021 2022 2023 2024 2025 Expansion Markets Fee Income Growth2 $ in millions $43.2 Ex
Slide 22: Commerce Trust
For more than 100 years, Commerce Trust has helped clients navigate through life events, delivering personalized service to achieve long-term financial goals through our holistic, team-based approach. 16TH $82 $51 Largest Among Bank-Managed BILLION BILLION Trust Total Client Assets Under Companies1
Slide 23: Wealth Key Growth Initiatives Strengthening our Wealth Brands
Wealth Key Growth Initiatives Strengthening our Wealth Brands • Strengthening Wealth Capabilities: Integrating FineMark and enhancing the capabilities of our holistic multi-disciplinary model. • Geographic Growth: Support expansion into select, high-growth markets to broaden reach and accelerate wea
Slide 24: Retail Banking Snapshot
RETAIL BANKING SNAPSHOT 140 BRANCHES 247 ATMs $12.3 $3.7 754 BILLION BILLION THOUSAND Retail Retail Retail Deposits1 Loans1 Households2 Mobile App rating: 4.7 Focus on Relationships & Customer Experience Customer Primacy Relationship Score 75% 91% 8% 50% 7th consecutive year 6th consecutive year Gro
Slide 25: Liquidity and Capital
LIQUIDITY AND CAPITAL 25
Slide 26: Recent Capital Actions Reinforcing Long-Term Shareholder Value
RECENT CAPITAL ACTIONS REINFORCING LONG-TERM SHAREHOLDER VALUE Visa Exchange Offer Expanded Share Participation / Securities Repurchase Authorization Repositioning • Board approved an increase to the • Participated in Visa’s exchange offer, share repurchase authorization, bringing tendering all 411,
Slide 27: Visa Stock Update & Securities Portfolio Repositioning Plan
VISA STOCK UPDATE & SECURITIES PORTFOLIO REPOSITIONING PLAN Strengthening Earnings, Capital Efficiency, and Risk Profile • Increases net interest income through reinvestment into higher yielding assets • Enhances earnings stability and overall earnings profile • Strengthens balance sheet and capital
Slide 28: Deposit Balance Trends
DEPOSIT BALANCE TRENDS Segment view $ in billions Commercial Retail Banking Wealth $13.4 $12.9 $11.9 $12.2 $12.3 $12.3 $12.3 $12.6 $12.6 $10.8 $10.4 $10.3 $10.4 $10.3 $10.6 $9.9 $4.8 $4.8 $2.8 $2.6 $2.4 $2.4 $2.5 $2.5 2022 2023 2024 2025 4Q25 1Q26 4Q25 1Q26 2022 2023 2024 2025 4Q25 1Q26 4Q25 1Q26 20
Slide 29: Opportunities to Enhance and Protect Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME Quarterly Net Yield on Interest Earning Assets Q1 2025 4Q 2025 1Q 2026 • Cash flows of approximately $1.2B from maturities and paydowns of 3.56% 3.60% 3.59% investments are expected over the next twelve months. • Net yield on interest earning a
Slide 30: High Quality, Highly Liquid and Diverse Investment Portfolio
HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO Composition of AFS Portfolio QTD – Mar. 31, 2026 Avg Rate Duration As of March 31, 2026 (yrs) Total available for sale securities Treasury & agency1 3.67% 3.5 Average balance: $8.9 billion, at fair value Municipal 2.10%2 4.2 MBS 2.12% 5.8
Slide 31: 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 17.6% 73% Average CBSH 17.3% Core Deposits Loan to HOMB 16.3% Deposit Ratio 3 CFR 14.5% $25.9 Commerce 82% FIBK 14.4% Average Loan to WSFS 13.9% Billion2 Depos
Slide 32: Commercial Real Estate Breakdown
COMMERCIAL REAL ESTATE BREAKDOWN Real Estate - Business Loans: Office Outstanding Balances by Geography1 Real Estate - Business Loans Other CO States Real Estate - % of Total Business Loans Loans $4.1 billion OH 4.3% IL 6.5% 0.5% Owner – Occupied 7.4% Owner- Industrial OK 4.9% MO occupied 7.0% 38.7%
Slide 33: Maintaining Strong Credit Quality
MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) Allowance for Credit $ in millions Losses on Loans (ACL) $ in millions $20.2 $15.0 $333.6 $343.7 $10.8 $12.5 $9.9 $198.6 .30% $167.0 1.36% $179.5 1.32% .25% .22% .20% .22% 1.01% .96% .97% 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 NCOs- CBSH NCO/Avera
Slide 34: Allocation of Allowance
ALLOCATION OF ALLOWANCE CECL allowances reflect the economic and market outlook Allowance for Credit Losses (ACL) on Loans December 31, 2025 March 31, 2026 $ in millions 0.97% Allowance for % of Allowance for % of $200 1.10% Credit Losses Outstanding Credit Losses Outstanding $ in millions (ACL) Loa
Slide 35: Strong Capital Position Provides Flexibility and Bolsters Resilience
STRONG CAPITAL POSITION PROVIDES FLEXIBILITY AND BOLSTERS RESILIENCE Total Payout Ratio to Common Shareholders as a percentage of Net Income1 125% Cash dividends paid on common stock 108% Common share repurchase Capital Ratios 100% 88% as of 3/31/2026 75% 70% Tier I common risk- Total Payout Ratio 5
Slide 36: Financial Results 1Q2026
FINANCIAL RESULTS 1Q2026 36
Slide 37: Financial Performance vs. Prior Years
FINANCIAL PERFORMANCE VS. PRIOR YEARS Net Income Earnings Return on Total Attributable to CBI ($ in Millions) per Common Share Average Assets $566 $4.04 1.72% 1.79% 1.69% $526 $3.69 1.62% $0.93 $0.96 $132 $142 YE 2024 YE 2025 YTD 2025 YTD 2026 YE 2024 YE 2025 YTD 2025 YTD 2026 YE 2024 YE 2025 YTD 20
Slide 38: 1Q2026 Highlights
1Q2026 HIGHLIGHTS • Earnings of $.96 per share, compared to $.93 in the same quarter last year • ROAA of 1.62% and ROAE of 13.22% Performance • Efficiency ratio of 60.0% • Financial results reflect the first full quarter of the FineMark acquisition • Net Income of $142MM in Q1, an increase of $10MM
Slide 39: FineMark Purchase Accounting Impacts
FINEMARK PURCHASE ACCOUNTING IMPACTS As of Income (Expense) $ in millions Jan 1, 2026 Recognized Q1 26 Methodology Net Interest Fair Value Marks on Loans $89.6 $6.9 Income Accretion Fair Value Marks on Time Deposits .5 .4 Amortized over 4 months Total $90.1 $7.3 As of Income (Expense) $ in millions
Slide 40: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Quarterly Average Balances 1Q26 vs. 4Q25 1Q26 vs. 1Q25 $ in millions 1Q26 $ Change % Change $ Change % Change Commercial $12,325.1 $868.3 8% $1,135.8 10% Average Loans: Increased 18% compared to Consumer 8,012.6 1,808.6 29% 1,959.3 32% the prior year. Total Loans $20,337.7 $
Slide 41: Balance Sheet
BALANCE SHEET Loans Deposits QTD Average Balances QTD Average Balances $ billions $ billions +18% +11% 6.02% $27.7 5.84% 5.79% $25.6 $24.9 $20.3 $7.9 $7.3 $7.6 $17.2 $17.7 $8.0 $6.0 $6.2 1.72% 1.62% 1.61% $18.0 $19.8 $17.6 $11.2 $11.5 $12.3 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 Consumer Loans Loan Yield1 No
Slide 42: Loan Portfolio
LOAN PORTFOLIO Period-End Balances QTD Average Balances $ in 000s 3/31/2026 12/31/2025 3/31/2025 QoQ YoY $ in 000s 3/31/2026 12/31/2025 3/31/2025 QoQ YoY Business $6,750,356 $6,439,380 $6,239,276 4.8% 8.2% Business $6,687,131 $6,317,805 $6,106,185 5.8% 9.5% Construction 1,581,789 1,438,012 1,419,572
Slide 43: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Net Interest Income (+) 1Q26 Comparison Non-Interest Income (+) vs. 1Q25 -2.7% Non-Interest Expense (-) Revenue increased 5.9% vs. 4Q25 -6.0% over Q4 and increased Pre-Tax, Pre-Provision Net Revenue (=) 11.1% over the prior year. $476 $449 $428 Expenses increased 15.1% ov
Slide 44: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS 1Q26 vs. 4Q25 1Q26 vs. 1Q25 $ in millions 1Q26 $ Change % Change $ Change % Change Net Interest Income $299.8 $16.7 6% $30.7 11% Non-Interest Income $175.9 $9.6 6% $16.9 11% Non-Interest Expense $291.1 $38.1 15% $52.8 22% Pre-Tax, Pre-Provision Net Revenue1 $184.6 -$11.8
Slide 45: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 1Q26 vs. 4Q25 1Q26 vs. 1Q25 $ in millions 1Q26 $ Change % Change $ Change % Change Trust Fees $71.0 $8.9 14% $14.5 26% Total Non-Interest Income: Bank Card Transaction Fees 45.6 (1.2) -3% .0 0% 37% of total revenue. Deposit Account Charges 28.6 2% 2.0 7% Trust Fees: an
Slide 46: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 1Q26 vs. 4Q25 1Q26 vs. 1Q25 $ in millions 1Q26 $ Change % Change $ Change % Change Salaries and Benefits: Salaries and Employee Benefits $180.8 $17.9 11% $27.7 18% Includes acquisition-related salaries and benefits expense of Data Processing and Software 38.3 3.1 9% 6
Slide 47: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Pre-tax, Pre-provision Net Revenue For The Three Months Ended (DOLLARS IN THOUSANDS) Mar. 31, 2026 Dec. 31, 2025 Mar. 31, 2025 A Net Interest Income $ 299,840 $ 283,152 $ 269,102 B Non-Interest Income $ 175,851 $ 166,208 $ 158,949 C Non-Interest Expense $ 291,126 $ 252,995 $
Slide 48: 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/