Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q2 2026 Earnings Presentation
23 slides from Commerce Bancshares's earnings presentation, 2026
Slide 1: Commerce Bancshares, Inc. Earnings Highlights 2nd Quarter 2026
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 2nd 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 $35.3 161 YEARS IN BUSINESS BILLION TOTAL DEPOSITS $27.9 BILLION 36TH LARGEST U.S. BANK BASED ON ASSET SIZE1 MARKET CAP TOTAL $20.8 LOANS4 BILLION $8.3 BILLION $9.9 COMMERCIAL CARD VOLUME 29TH BILLION AS OF DECEMBER 31, 2025 LARGEST U.S. BANK BASED ON MARKET CAP1 TOT
Slide 4: Track Record of Long-Term Outperformance
TRACK RECORD OF LONG-TERM OUTPERFORMANCE Revenue Diversification Deposit Franchise Balanced earnings profile, fee revenue $26.5 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: 2Q2026 Highlights
2Q2026 HIGHLIGHTS • Earnings of $1.10 per share, compared to .96 in Q1 and $1.09 in Q2 2025 Performance • ROAA of 1.84% and ROAE of 14.70% • Efficiency ratio of 58.4% • Net Income of $160MM in Q2, an increase of $18MM over Q1 • Net interest income of $315MM, up 5% over Q1 Income • Net interest margi
Slide 6: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Quarterly Average Balances 2Q26 vs. 1Q26 2Q26 vs. 2Q25 $ in millions 2Q26 $ Change % Change $ Change % Change Commercial $12,472.6 $147.5 1% $1,102.2 10% Average Loans: Consumer 8,041.7 29.0 0% 1,916.3 31% Increased 1% compared to the previous quarter. Total Loans $20,514.3
Slide 7: Balance Sheet
BALANCE SHEET Loans Deposits QTD Average Balances QTD Average Balances $ billions $ billions +17% +11% 6.01% 5.79% 5.73% $27.7 $27.6 $24.9 $20.3 $20.5 $7.9 $8.1 $7.3 $17.5 $8.0 $8.0 $6.1 1.67% 1.61% 1.57% $17.6 $19.8 $19.5 $11.4 $12.3 $12.5 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Consumer Loans Loan Yield1 No
Slide 8: Loan Portfolio
LOAN PORTFOLIO Period-End Balances QTD Average Balances $ in 000s 6/30/2026 3/31/2026 6/30/2025 QoQ YoY $ in 000s 6/30/2026 3/31/2026 6/30/2025 QoQ YoY Business $7,115,984 $6,750,356 $6,328,684 5.4% 12.4% Business $6,864,328 $6,687,131 $6,247,252 2.6% 9.9% Construction 1,493,455 1,581,789 1,405,398
Slide 9: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Pre-Tax, Pre-Provision Net Revenue (PPNR) $ in millions Net Interest Income (+) 2Q26 Comparison Non-Interest Income (+) vs. 2Q25 0.3% Non-Interest Expense (-) vs. 1Q26 9.4% Pre-Tax, Pre-Provision Net Revenue (=) Revenue increased 4.9% $499 $476 over Q1 and increased $446
Slide 10: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS 2Q26 vs. 1Q26 2Q26 vs. 2Q25 $ in millions 2Q26 $ Change % Change $ Change % Change Net Interest Income $315.1 $15.2 5% $34.9 12% Non-Interest Income $183.8 $8.0 5% $18.2 11% Non-Interest Expense $297.1 $5.9 2% $52.6 22% Pre-Tax, Pre-Provision Net Revenue1 $201.8 $17.3 9%
Slide 11: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 2Q26 vs. 1Q26 2Q26 vs. 2Q25 $ in millions 2Q26 $ Change % Change $ Change % Change Total Non-Interest Income: Trust Fees $71.5 $.5 1% $15.9 29% 37% of total revenue. Bank Card Transaction Fees 48.1 2.5 6% 1.8 4% Bank Card Transaction Fees: Increase over the prior quart
Slide 12: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 2Q26 vs. 1Q26 2Q26 vs. 2Q25 $ in millions 2Q26 $ Change % Change $ Change % Change Salaries and Benefits: Includes acquisition-related Salaries and Employee Benefits $180.0 ($.8) 0% $24.9 16% salaries and benefits expense of $3.7 million in the current quarter. Data P
Slide 13: Liquidity and Capital
LIQUIDITY AND CAPITAL 13
Slide 14: Deposit Balance Trends
DEPOSIT BALANCE TRENDS Segment view $ in billions Commercial Retail Banking Wealth $13.4 $12.8 $12.9 $12.9 $11.9 $12.2 $12.3 $12.3 $12.6 $10.4 $10.3 $10.4 $10.1 $10.6 $10.4 $9.9 $4.8 $4.7 $4.8 $4.5 $2.8 $2.4 $2.4 $2.5 2022 2023 2024 2025 1Q26 2Q26 1Q26 2Q26 2022 2023 2024 2025 1Q26 2Q26 1Q26 2Q26 20
Slide 15: Visa Stock & Securities Portfolio Repositioning Update
VISA STOCK & SECURITIES PORTFOLIO REPOSITIONING UPDATE • Recognized $105.4 million gain on Visa shares. Period-End Balances 2Q26 vs. 1Q26 $ in millions 2Q26 1Q26 $ Change • Sold approximately 103,000 Visa Class A shares (converted from Class C shares) resulting in U.S. government and $3,558 $3,202 $
Slide 16: Opportunities to Enhance and Protect Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME • Cash flows of approximately $1.1B Average Rate Earned On Securities Purchased from maturities and paydowns of Under Agreements To Resell investments are expected over the Impact to Yield from Change in 1M SOFR next twelve months. 10% Illustra
Slide 17: High Quality, Highly Liquid and Diverse Investment Portfolio
HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO Composition of AFS Portfolio QTD – Jun. 30, 2026 Avg Rate Duration As of June 30, 2026 (yrs) Total available for sale securities Treasury & agency1 3.67% 3.9 QTD average balance: $8.7 billion, at fair value Municipal 2.07%2 4.0 MBS 2.10% 5
Slide 18: Sound Capital and Liquidity Position
SOUND CAPITAL AND LIQUIDITY POSITION Tier 1 Risk-Based Capital Ratio1 Loan to Deposit Ratio CBC Peer Median: 13.0% 28.6% Large, stable deposit base 74% CBSH 17.1% Core Deposits Average Loan to HOMB 16.7% Deposit Ratio3 PB 15.5% $25.5 Commerce 82% CFR 14.5% Average Loan to FIBK 14.3% Billion2 Deposit
Slide 19: Maintaining Strong Credit Quality
MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) Allowance for Credit $ in millions Losses on Loans (ACL) $ in millions $15.0 $12.4 $322.9 $323.3 $9.7 $9.7 $9.5 $165.3 1.36% $198.6 $195.4 .30% 1.31% .22% .18% .19% .17% .97% .94% .94% 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 NCOs- CBSH NCO/Average
Slide 20: Allocation of Allowance
ALLOCATION OF ALLOWANCE CECL allowances reflect the economic and market outlook Allowance for Credit Losses (ACL) on Loans March 31, 2026 June 30, 2026 $ in millions 0.97% Allowance Allowance 1.10% $200 0.94% for Credit % of for Credit % of Losses Outstanding Losses Outstanding $ in millions (ACL) L
Slide 21: 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 94% Capital Ratios 100% 88% as of 3/31/2026 75% 70% Tier I common risk- Total Payout Rat
Slide 22: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Pre-tax, Pre-provision Net Revenue For The Three Months Ended (DOLLARS IN THOUSANDS) Jun. 30, 2026 Mar. 31, 2026 Jun. 30, 2025 A Net Interest Income $ 315,085 $ 299,840 $ 280,147 B Non-Interest Income $ 183,828 $ 175,851 $ 165,613 C Non-Interest Expense $ 297,068 $ 291,126 $
Slide 23: 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/