Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q4 2025 Earnings Presentation
26 slides from Commerce Bancshares's earnings presentation, Jan 22, 2026
Slide 1: Earnings Highlights 4th Quarter 2025
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 4th Quarter 2025
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 2 Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about the plans, expectations, goals, projections, and intentions of Commer
Slide 3: Commerce Bancshares
COMMERCE BANCSHARES 160 YEARS IN BUSINESS $32.9 BILLION TOTAL ASSETS 43RD LARGEST U.S. BANK BASED ON ASSET SIZE2 $7.2 BILLION MARKET CAP 27TH LARGEST U.S. BANK BASED ON MARKET CAP2 $81.6 BILLION TOTAL TRUST ASSETS UNDER ADMINISTRATION 16TH LARGEST AMONG BANK-MANAGED TRUST COMPANIES BASED ON AUM3 17.
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 $24.3 billion in low-cost, diverse deposits2 with peer-leading historical deposit betas Cre
Slide 5: 4Q2025 Highlights
4Q2025 HIGHLIGHTS • Earnings of $1.01 per share, compared to $.96 in the same quarter last year • PPNR1 of $196MM, an increase of $10MM over the same quarter last year • ROAA of 1.73% and ROAE of 14.70% • Efficiency ratio of 56.2% • Net Income of $141MM in Q4, an increase of $5MM over the same quart
Slide 6: Finemark Acquisition Update
FINEMARK ACQUISITION UPDATE Highlights • Merger completed on January 1, 2026 • Approximate value at close of $529MM1 • Consideration Mix: 100% stock • Fixed Exchange Ratio: .7245x with 9.9MM shares issued • Systems conversion targeted for late 2026 Acquisition-Related Balance Sheet Actions • Liquida
Slide 7: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 4Q25 vs. 4Q24 4Q25 vs. 3Q25 Quarterly Average Balances % Change$ Change% Change$ Change4Q25$ in millions 4%$446.11%$114.2$11,456.8Commercial 2%145.01%52.36,204.0Consumer 3%$591.11%$166.5$17,660.8Total Loans 0%$39.94%$325.6$9,523.1Investment Securities1 7%$176.615%$364.5$2,78
Slide 8: Balance Sheet
$17.5 $17.4 $18.0 $7.4 $7.4 $7.6 4Q24 3Q25 4Q25 $24.9 $24.8 $25.6 +3% $11.0 $11.3 $11.5 $6.1 $6.2 $6.2 4Q24 3Q25 4Q25 $17.1 $17.5 $17.7 +3% BALANCE SHEET 8 Loans Consumer Loans Commercial Loans Loan Yield1 Deposits QTD Average Balances $ billions Non-Interest Bearing Interest-Bearing Deposits Intere
Slide 9: Loan Portfolio
LOAN PORTFOLIO 9 YoYQoQ12/31/20249/30/202512/31/2025$ in 000s 6.4%.4%$6,053,820$6,414,792$6,439,380Business 2.0%.3%1,409,9011,433,6521,438,012Construction .4%-1.9%3,661,2183,745,0003,674,567Business Real Estate -.2%-.6%3,058,1953,070,9803,053,435Personal Real Estate 6.0%1.2%2,073,1232,171,5992,196,8
Slide 10: Commercial Real Estate Breakdown
34.0% 17.1% 14.4% 8.9% 8.6%8.0% 5.4% Owner- occupied Industrial Office Hotels Multi-familyRetail Farm 2.4% Other 1.2% Senior living Real Estate - Business Loans: Office Outstanding Balances by Geography1 % of Total Loans Real Estate - Business Loans 7.0%Owner – Occupied 3.5%Industrial 3.0%Office 1.8
Slide 11: Income Statement Highlights
$162 $197 $279 $244 3Q25 $441 11 INCOME STATEMENT HIGHLIGHTS $155 $186 $267 $236 4Q24 $422 $166 $196 $283 $253 4Q25 $449 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 4Q25 Comparison 5.4%vs. 4Q24 -.3%vs. 3Q25 Pre-Tax, Pre-Provision Ne
Slide 12: Income Statement Highlights
4Q25 vs. 4Q24 4Q25 vs. 3Q25 % Change$ Change% Change$ Change4Q25$ in millions 6%$16.51%$3.7$283.2Net Interest Income 7%$10.83%$4.7$166.2Non-Interest Income 7%$17.34%$9.0$253.0Non-Interest Expense 5%$10.0-0%-$.6$196.4Pre-Tax, Pre-Provision Net Revenue1 200%$2.0-63%-$5.0$2.9Investment Securities Gains
Slide 13: Non-Interest Income Highlights
Trust Fees: Increase over the prior year mainly due to higher private client fees. Bank Card Transaction Fees: Decrease compared to the prior year mainly due to lower net corporate and credit card fees. Deposit Account Charges and Other Fees: Increase over the prior year mostly due to higher corpora
Slide 14: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 14 4Q25 vs. 4Q24 4Q25 vs. 3Q25 % Change$ Change% Change$ Change4Q25$ in millions 6%$9.13%$5.4$162.9Salaries and Employee Benefits 8%2.85%1.735.3Data Processing and Software -4%-.5-2%-.313.2Net Occupancy 62%5.629%3.314.6Professional and Other Services 9%.5-7%-.56.2Mark
Slide 15: Liquidity and Capital
LIQUIDITY AND CAPITAL & commerce Bancshares, Inc.
Slide 16: Deposit Balance Trends
2021 2022 2023 2024 $3.0 $2.8 $2.4 $2.4 DEPOSIT BALANCE TRENDS Segment view $ in billions 16 2021 2022 2023 2024 $12.0 $11.9 $10.4 $9.9 2021 2022 2023 2024 $12.8 $13.4 $12.2 $12.3 Commercial Consumer Wealth Average Balance 3Q25 4Q25 $12.3 $12.6 Period EndAverage Balance Average Balance Segment balan
Slide 17: Opportunities to Enhance and Protect Net Interest Income
3.49% 3.64% 3.60% Net Yield Hedging Structures: Four floor contracts (indexed to 1 Month SOFR) to hedge the risk of declining interest rates on floating rate commercial loans. The contracts have a term of 6 years. • 3.5% floor contract with a notional value of $500 million. The contract began 7/2024
Slide 18: Summary of Fixed & Floating Loans
Over 62% of total loans are variable; 69% of commercial loans have floating rates SUMMARY OF FIXED & FLOATING LOANS 33% 67% Business Total Loans: $6.4B Fixed Variable C om m er ci al 52%48% Personal RE Total Loans: $3.1B C on su m er 100% 38% 62% Business RE Total Loans: $3.7B 96% 4% Consumer Card T
Slide 19: High Quality, Highly Liquid and Diverse Investment Portfolio
33% 7%44% 14% 2% Composition of AFS Portfolio Treasury & agency Municipal MBS Asset-backed Other debt HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO 1Excludes inflation effect on TIPs; 2Tax equivalent yield Duration (yrs)Avg RateQTD – Dec. 31, 2025 3.73.65%Treasury & agency1 4.42.06%2M
Slide 20: Sound Capital and Liquidity Position
91%9% Core Deposits - Non-Interest Bearing - Interest Checking - Savings and Money Market Certificates of Deposits Average Loan to Deposit Ratio3 SOUND CAPITAL AND LIQUIDITY POSITION 20 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of September 30, 2025 2Period-end
Slide 21: Maintaining Strong Credit Quality
$18.3 $16.3 $15.8 $140.6 $154.4 4Q24 3Q25 4Q25 $10.7 $10.3 $9.9 $16.0 $13.5 4Q24 3Q25 4Q25 MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $162.7 $175.7 $179.5 $321.4 $349.3 4Q24 3Q25 4Q25 Allowance for Credit Losse
Slide 22: Allocation of Allowance
ALLOCATION OF ALLOWANCE 22 CECL allowances reflect the economic and market outlook December 31, 2025September 30, 2025 % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL)$ in millions .83%$ 53.2.79%$ 50.7Business .94%34.6 .90%33.6 Bus R/E
Slide 23: Capital for Business
Quick Facts: Small Business Investment Company (SBIC) founded in 1959 Nationwide footprint with Greater Midwest Focus 31 Portfolio Companies Representing $989.5 million in Revenue Over 3,000 Employees Fair Value as of December 31, 2025: $184.3 million Investment Criteria • Manufacturing, distributio
Slide 24: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 24 For The Three Months Ended Dec. 31, 2024Sep. 30, 2025Dec. 31, 2025(DOLLARS IN THOUSANDS) 266,647$279,457$283,152$Net Interest IncomeA 155,436$161,511$166,208$Non-Interest IncomeB 235,718$244,018$252,995$Non-Interest ExpenseC 186,365$196,950$196,365$Pre-Provision Net Reven
Slide 25: 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/ 25
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