Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q3 2026 Earnings Presentation
24 slides from Commerce Bancshares's earnings presentation, Oct 20, 2026
Slide 1: Commerce Bancshares, Inc. Earnings Highlights 3rd Quarter 2026
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 3rd Quarter 2026
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 2 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
COMMERCE BANCSHARES 161 YEARS IN BUSINESS $34.8 BILLION TOTAL ASSETS 36TH LARGEST U.S. BANK BASED ON ASSET SIZE1 $7.8 BILLION MARKET CAP 28TH LARGEST U.S. BANK BASED ON MARKET CAP1 $92.2 BILLION TOTAL TRUST ASSETS UNDER ADMINISTRATION 15TH LARGEST AMONG BANK-MANAGED TRUST COMPANIES BASED ON AUM2 16.
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 $26.0 billion in low-cost, diverse deposits2 with peer-leading historical deposit betas Cre
Slide 5: 3Q2026 Highlights
3Q2026 HIGHLIGHTS • Earnings of $1.08 per share, compared to $1.10 in Q2 and $1.01 in Q3 2025 • ROAA of 1.79% and ROAE of 14.17% • Efficiency ratio of 56.7% • Net income of $155MM in Q3, a decrease of $5MM from Q2 • Net interest income of $309MM, down 2% from Q2 • Net interest margin was 3.71%; excl
Slide 6: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 3Q26 vs. 3Q25 3Q26 vs. 2Q26 Quarterly Average Balances % Change$ Change% Change$ Change3Q26$ in millions 10%$1,141.10%$11.0$12,483.7Commercial 33%2,051.22%161.38,202.9Consumer 18%$3,192.21%$172.3$20,686.6Total Loans -7%)($646.1-6%)($507.6$8,551.3Investment Securities1 -7%)($
Slide 7: Balance Sheet
$17.4 $19.5 $19.1 $7.4 $8.1 $8.1 3Q25 2Q26 3Q26 $24.8 $27.6 $27.2 +10% $11.3 $12.5 $12.5 $6.2 $8.0 $8.2 3Q25 2Q26 3Q26 $17.5 $20.5 $20.7 +18% BALANCE SHEET 7 Loans Consumer Loans Commercial Loans Loan Yield1 Deposits QTD Average Balances $ billions Non-Interest Bearing Interest-Bearing Deposits Inte
Slide 8: Loan Portfolio
LOAN PORTFOLIO 8 YoYQoQ9/30/20256/30/20269/30/2026$ in 000s 13.2%2.1%$6,414,792 $7,115,984 $7,262,310 Business 1.3%-2.8%1,433,6521,493,4551,451,704Construction 12.9%4.0%3,745,0004,064,2534,227,627Business Real Estate 41.2%-.8%3,070,9804,369,0774,335,991Personal Real Estate 24.9%7.3%2,171,5992,527,44
Slide 9: Income Statement Highlights
$184 $202 $315 $297 2Q26 $499 9 INCOME STATEMENT HIGHLIGHTS $162 $197 $279 $244 3Q25 $441 $185 $208 $309 $286 3Q26 $494 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 3Q26 Comparison 5.8%vs. 3Q25 3.3%vs. 2Q26 Pre-Tax, Pre-Provision Net
Slide 10: Income Statement Highlights
3Q26 vs. 3Q25 3Q26 vs. 2Q26 % Change$ Change% Change$ Change3Q26$ in millions 11%$29.4-2%-$6.2$308.9Net Interest Income 15%$24.01%$1.6$185.5Non-Interest Income 17%$41.9-4%-$11.1$285.9Non-Interest Expense 6%$11.53%$6.6$208.4Pre-Tax, Pre-Provision Net Revenue1 -48%-$3.8-68%-$8.7$4.1Investment Securiti
Slide 11: Non-Interest Income Highlights
Total Non-Interest Income: 38% of total revenue in Q3 2026. Trust Fees: Increase over the prior quarter mainly due to higher private client fees. Bank Card Transaction Fees: Increase over the prior quarter mainly due to growth in corporate card fees. Other: Includes $2.0MM gain on the sale of assets
Slide 12: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 12 3Q26 vs. 3Q25 3Q26 vs. 2Q26 % Change$ Change% Change$ Change3Q26$ in millions 15%$24.11%$1.6$181.6Salaries and Employee Benefits 16%5.32%.638.8Data Processing and Software 30%3.4-11%)(1.914.6Professional and Other Services 12%1.63%.415.1Net Occupancy 2%.26%.46.8Mar
Slide 13: Liquidity and Capital
13 LIQUIDITY AND CAPITAL
Slide 14: Deposit Balance Trends
2023 2024 2025 $2.4 $2.4 $2.5 DEPOSIT BALANCE TRENDS Segment view $ in billions 14 2023 2024 2025 $10.4 $9.9 $10.3 2023 2024 2025 $12.2 $12.3 $12.3 Commercial Retail Banking Wealth Average Balance 1Q26 2Q26 3Q26 $12.9 $12.9 $12.8 Period EndAverage Balance Average Balance Segment balances do not incl
Slide 15: Opportunities to Enhance and Protect Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME • Cash flows of approximately $1.1B from maturities and paydowns of investments are expected over the next twelve months. • $2.5 billion notional portfolio floor contracts, with maturities laddered from 2030-2032, providing protection against d
Slide 16: High Quality, Highly Liquid and Diverse Investment Portfolio
40% 8% 39% 11% 2% Composition of AFS Portfolio Treasury & agency Municipal MBS Asset-backed Other debt HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO 1Tax equivalent yield Duration (yrs)Avg RateQTD – Sep. 30, 2026 3.84.04%Treasury & agency 3.92.06%1Municipal 5.52.06%MBS 1.53.83%Asset-b
Slide 17: Sound Capital and Liquidity Position
92%8% Core Deposits - Non-Interest Bearing - Interest Checking - Savings and Money Market Certificates of Deposits Average Loan to Deposit Ratio3 SOUND CAPITAL AND LIQUIDITY POSITION 17 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of June 30, 2026 2Period-end bala
Slide 18: Maintaining Strong Credit Quality
$16.3 $11.6 $11.5 $143.0 $155.7 3Q25 2Q26 3Q26 $10.3 $9.5 $10.6 $13.6 $13.1 3Q25 2Q26 3Q26 MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $175.7 $195.4 $197.8 $323.6 $327.0 3Q25 2Q26 3Q26 Allowance for Credit Losse
Slide 19: Allocation of Allowance
ALLOCATION OF ALLOWANCE 19 CECL allowances reflect the economic and market outlook September 30, 2026June 30, 2026 % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL)$ in millions .80%$ 58.4.80%$ 57.3Business .89%37.6 .89%36.2 Bus R/E 2.1
Slide 20: Strong Capital Position Provides Flexibility and Bolsters Resilience
0% 25% 50% 75% 100% 125% Qtrly Avg 2023 Qtrly Avg 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Total Payout Ratio 45% 59% 70% 31% 44% 108% 88% 94% 96% STRONG CAPITAL POSITION PROVIDES FLEXIBILITY AND BOLSTERS RESILIENCE Cash dividends paid on common stock Common share repurchase Tota
Slide 21: Capital for Business
Quick Facts: Small Business Investment Company (SBIC) founded in 1959 Nationwide footprint with Greater Midwest Focus 29 Portfolio Companies Representing: $988.4 million in Revenue Nearly 3,000 Employees Fair Value as of September 30, 2026: $177.1 million Investment Criteria • Manufacturing, distrib
Slide 22: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 22 For The Three Months Ended Sep. 30, 2025Jun. 30, 2026Sep. 30, 2026(DOLLARS IN THOUSANDS) 279,457$315,085$308,877$Net Interest IncomeA 161,511$183,828$185,466$Non-Interest IncomeB 244,018$297,068$285,931$Non-Interest ExpenseC 196,950$201,845$208,412$Pre-Provision Net Reven
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.
\ {3%) Commerce Bancshares, Inc.