Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q4 2024 Earnings Presentation
24 slides from Commerce Bancshares's earnings presentation, 2025
Slide 1: Earnings Highlights 4th Quarter 2024
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 4th Quarter 2024
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT A number of statements we will be making in our presentation and in the accompanying slides are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements of the Corporation’s plans, goals, objectives, expectations
Slide 3: Commerce Bancshares at a glance: 159 years in business
COMMERCE BANCSHARES TOTAL ASSETS $32.0 159 YEARS IN BUSINESS BILLION TOTAL DEPOSITS $25.3 BILLION 43RD LARGEST U.S. BANK BASED ON ASSET SIZE2 MARKET CAP TOTAL $17.2 LOANS3 BILLION $8.4 BILLION $9.8 COMMERCIAL CARD VOLUME 20TH 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 $23.9 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: 4Q2024 Highlights
4Q2024 HIGHLIGHTS • Earnings of $1.01 per share, compared to $.79 per share in the same quarter last year • PPNR1 of $186MM, an increase of $44MM over the same period last year Performance • ROAA of 1.73% and ROAE of 15.97% • Efficiency ratio of 55.8%, a decrease in Q4 from 56.3% in Q3 • Net Income
Slide 6: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Average Loans: Quarterly Average Increased slightly Balances 4Q24 vs. 3Q24 4Q24 vs. 4Q23 compared to the previous $ in millions 4Q24 $ Change % Change $ Change % Change quarter. Investment securities: Commercial $11,010.7 $62.6 1% -$18.8 0% Purchased $573 million of availabl
Slide 7: Balance Sheet
BALANCE SHEET Loans Deposits QTD Average Balances QTD Average Balances $ billions $ billions 6.35% 6.15% 6.11% -1% $25.2 $24.4 $24.9 0% $7.7 $7.3 $7.4 $17.1 $17.0 $17.1 $6.1 $6.1 $6.1 1.93% 2.00% 1.87% $17.5 $17.1 $17.5 $11.0 $10.9 $11.0 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 Consumer Loans Loan Yield1 Non-I
Slide 8: Loan Portfolio
LOAN PORTFOLIO Period-End Balances QTD Average Balances $ in 000s 12/31/2024 9/30/2024 12/31/2023 QoQ YoY $ in 000s 12/31/2024 9/30/2024 12/31/2023 QoQ YoY Business $6,053,820 $6,048,328 $6,019,036 .1% .6% Business $5,963,217 $5,966,797 $5,861,229 -.1% 1.7% Construction 1,409,901 1,381,607 1,446,764
Slide 9: Commercial Real Estate Breakdown
COMMERCIAL REAL ESTATE BREAKDOWN Real Estate - Business Loans: Office Outstanding Balances by Geography1 Other Real Estate - Business Loans Midwest OH States Real Estate - % of Total Business Loans Loans $3.7 billion CO 5.6% IL 4.7% Owner- 4.8% 3.0% Owner – Occupied 7.2% 33.8% occupied TX 4.9% Offic
Slide 10: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Pre-Tax, Pre-Provision Net Revenue (PPNR) $ in millions Net Interest Income (+) 4Q24 Comparison Non-Interest Income (+) vs. 4Q23 31.2% Non-Interest Expense (-) vs. 3Q24 1.4% Pre-Tax, Pre-Provision Net Revenue (=) $421 $422 Revenue increased .2% $393 over Q3 and 7.3% over
Slide 11: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS 4Q24 vs. 3Q24 4Q24 vs. 4Q23 $ in millions 4Q24 $ Change % Change $ Change % Change Net Interest Income $266.6 $4.3 2% $18.2 7% Non-Interest Income $155.4 -$3.6 -2% $10.6 7% Non-Interest Expense $235.7 -$1.9 -1% -$15.5 -6% Pre-Tax, Pre-Provision Net Revenue1 $186.3 $2.6 1%
Slide 12: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 4Q24 vs. 3Q24 4Q24 vs. 4Q23 $ in millions 4Q24 $ Change % Change $ Change % Change Trust Fees: Trust Fees $56.3 $1.7 3% $7.2 15% Increase over prior year mainly due to higher private client fees. Bank Card Transaction Fees 47.8 .2 0% -.0 0% Deposit Account Charges Depo
Slide 13: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS Total Non-Interest Expense: 4Q24 vs. 3Q24 4Q24 vs. 4Q23 Excluding the accrual for the FDIC $ in millions 4Q24 $ Change % Change $ Change % Change Special Assessment in Q4 2023, non-interest expense was flat to Salaries and Employee Benefits $153.8 $.7 0% $6.4 4% the p
Slide 14: Liquidity and Capital
LIQUIDITY AND CAPITAL 14
Slide 15: 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 $12.3 $12.5 $11.3 $10.4 $10.3 $10.5 $10.2 $9.9 $9.8 $3.0 $2.8 $2.3 $2.4 $2.3 $2.4 $2.4 $2.5 2020 2021 2022 2023 3Q24 4Q24 3Q24 4Q24 2020 2021 2022 2023 3Q24 4Q24 3Q24 4Q24 2020 2021
Slide 16: Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME Quarterly Net Yield on Interest Earning Assets • Purchases of investment securities in Q4 totaled $573MM at a weighted average yield of approximately 4.45%. 4Q 2023 3Q 2024 4Q 2024 • Cash flows from maturities and paydowns of investments and 3.
Slide 17: 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 18: High Quality, Highly Liquid and Diverse Investment Portfolio
HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO Duration Composition of AFS Portfolio QTD – Dec. 31, 2024 Avg Rate (yrs) As of December 31, 2024 Treasury & agency1 3.62% 3.3 Total available for sale securities Average balance: $9.1 billion, at fair value Municipal 2.01%2 4.6 MBS 2.17% 5
Slide 19: Sound Capital and Liquidity Position
SOUND CAPITAL AND LIQUIDITY POSITION Tier 1 Risk-Based Capital Ratio1 Loan to Deposit Ratio CBSH Peer Median: 12.2% Large, stable deposit base 16.7% 68% Average PB 15.8% Core Deposits Loan to HOMB 14.7% Deposit Ratio 3 CFR 14.0% $22.9 Commerce 84% UBSI 13.8% Average Loan to HWC 13.8% Billion2 Deposi
Slide 20: Maintaining Strong Credit Quality
MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) Allowance for Credit $ in millions Losses on Loans (ACL) $ in millions $13.2 $393.2 $9.5 $9.6 $10.7 $309.2 $8.0 $162.4 1.30% $160.8 1.51% $162.7 .25% .22% .19% .17% .94% .94% .95% .16% 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 NCOs- CBSH NCO/Average
Slide 21: Allocation of Allowance
ALLOCATION OF ALLOWANCE CECL allowances reflect the economic and market outlook Allowance for Credit Losses (ACL) on Loans September 30, 2024 December 31, 2024 $ in millions $175 1.00% Allowance for % of Allowance for % of Credit Losses Outstanding Credit Losses Outstanding 0.96% $ in millions 0.94%
Slide 22: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Pre-tax, Pre-provision Net Revenue For The Three Months Ended (DOLLARS IN THOUSANDS) Dec. 31, 2024 Sept. 30, 2024 Dec. 31, 2023 A Net Interest Income $ 266,647 $ 262,351 $ 248,421 B Non-Interest Income $ 155,436 $ 159,025 $ 144,879 C Non-Interest Expense $ 235,718 $ 237,600
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/
Slide 24: Commerce Bancshares, Inc.
] Commerce Bancshares, Inc.