Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q1 2026 Earnings Presentation
24 slides from Commerce Bancshares's earnings presentation, 2026
Slide 1: Commerce Bancshares, Inc. Earnings Highlights 1st Quarter 2026
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 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 LOANS4 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: 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 5: 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 6: 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 million
Slide 7: 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 8: Balance Sheet: Loans and Deposits
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 9: 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 10: 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 11: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Pre-Tax, Pre-Provision Net Revenue (PPNR) $ in millions 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 th
Slide 12: 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 13: 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% Bank Card Transaction Fees 45.6 (1.2) -3% 0% Total Non-Interest Income: .0 37% of total revenue. Deposit Account Charges 28.6 2% 2.0 7% and Other Fees
Slide 14: 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 15: Liquidity and Capital
LIQUIDITY AND CAPITAL 15
Slide 16: 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 17: Opportunities to Enhance and Protect Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME Quarterly Net Yield on Interest Earning Assets • Cash flows of approximately $1.2B Q1 2025 4Q 2025 1Q 2026 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 18: 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 19: 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 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 $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 21: 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 22: Capital for Business
CAPITAL FOR BUSINESS® A middle-market private equity firm focused on the success of industrial growth companies Transaction Types Quick Facts: Investment Criteria Management buyouts • Manufacturing, distribution and Leveraged buyouts Small Business Investment Succession plans certain service compani
Slide 23: 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 24: 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/