Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q4 2025 Earnings Presentation
26 slides from Commerce Bancshares's earnings presentation, 2026
Slide 1: Earnings Highlights 4th Quarter 2025
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 4th Quarter 2025 ~·~ ltl) ......,, Commerce Bancshares, Inc .
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 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 Commerce
Slide 3: Commerce Bancshares at a glance
COMMERCE BANCSHARES TOTAL ASSETS $32.9 160 YEARS IN BUSINESS BILLION TOTAL DEPOSITS $25.6 BILLION 43RD LARGEST U.S. BANK BASED ON ASSET SIZE2 MARKET CAP TOTAL $17.8 LOANS4 BILLION $7.2 BILLION $9.9 COMMERCIAL CARD VOLUME 27TH BILLION AS OF DECEMBER 31, 2025 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 $24.3 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: 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 Performance • 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 th
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 Quarterly Average Balances 4Q25 vs. 3Q25 4Q25 vs. 4Q24 Average Loans: Increased 3% compared to $ in millions 4Q25 $ Change % Change $ Change % Change the prior year. Commercial $11,456.8 $114.2 1% $446.1 4% Interest Earning Deposits with Banks: Ample levels Consumer 6,204.0
Slide 8: Balance Sheet
BALANCE SHEET Loans Deposits QTD Average Balances QTD Average Balances $ billions $ billions 6.11% 6.02% +3% 5.84% $24.9 $24.8 $25.6 +3% $7.4 $7.4 $7.6 $17.1 $17.5 $17.7 $6.1 $6.2 $6.2 1.87% 1.71% 1.62% $17.5 $17.4 $18.0 $11.0 $11.3 $11.5 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 Consumer Loans Loan Yield1 Non-
Slide 9: Loan Portfolio
LOAN PORTFOLIO Period-End Balances QTD Average Balances $ in 000s 12/31/2025 9/30/2025 12/31/2024 QoQ YoY $ in 000s 12/31/2025 9/30/2025 12/31/2024 QoQ YoY Business $6,439,380 $6,414,792 $6,053,820 .4% 6.4% Business $6,317,805 $6,230,019 $5,963,217 1.4% 5.9% Construction 1,438,012 1,433,652 1,409,90
Slide 10: Commercial Real Estate Breakdown
COMMERCIAL REAL ESTATE BREAKDOWN Real Estate - Business Loans: Office Outstanding Balances by Geography1 Other Real Estate - Business Loans Midwest CO States Real Estate - % of Total Business Loans Loans $3.7 billion OK IL 4.2% 5.6% 0.6% Owner – Occupied 7.0% Owner- Industrial OH 5.1% occupied 7.8%
Slide 11: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Pre-Tax, Pre-Provision Net Revenue (PPNR) $ in millions Net Interest Income (+) 4Q25 Comparison Non-Interest Income (+) vs. 4Q24 5.4% Non-Interest Expense (-) Revenue increased 1.9% vs. 3Q25 -.3% over Q3 and increased Pre-Tax, Pre-Provision Net Revenue (=) 6.5% over the p
Slide 12: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS 4Q25 vs. 3Q25 4Q25 vs. 4Q24 $ in millions 4Q25 $ Change % Change $ Change % Change Net Interest Income $283.2 $3.7 1% $16.5 6% Non-Interest Income $166.2 $4.7 3% $10.8 7% Non-Interest Expense $253.0 $9.0 4% $17.3 7% Pre-Tax, Pre-Provision Net Revenue1 $196.4 -$.6 -0% $10.
Slide 13: Non-Interest Income Highlights
NON-INTEREST INCOME HIGHLIGHTS 4Q25 vs. 3Q25 4Q25 vs. 4Q24 $ in millions 4Q25 $ Change % Change $ Change % Change Trust Fees: Increase over the prior year Trust Fees $62.1 $3.7 6% $5.8 10% mainly due to higher private client fees. Bank Card Transaction Fees 46.8 1.2 3% -1.0 -2% Bank Card Transaction
Slide 14: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 4Q25 vs. 3Q25 4Q25 vs. 4Q24 $ in millions 4Q25 $ Change % Change $ Change % Change Salaries and Employee Benefits $162.9 $5.4 3% $9.1 6% Salaries and Benefits: Data Processing and Software 35.3 1.7 5% 2.8 8% Increase over the previous year mainly due to higher full-ti
Slide 15: Liquidity and Capital
LIQUIDITY AND CAPITAL ,..... ~ \.11' Commerce Bancshares, Inc. 15
Slide 16: 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 $12.2 $12.3 $12.3 $12.6 $10.8 $10.7 $10.3 $10.4 $9.9 $10.2 $3.0 $2.8 $2.4 $2.4 $2.5 $2.5 $2.5 $2.6 2021 2022 2023 2024 3Q25 4Q25 3Q25 4Q25 2021 2022 2023 2024 3Q25 4Q25 3Q25 4Q25 2021 202
Slide 17: Net Interest Income
OPPORTUNTIES TO ENHANCE AND PROTECT NET INTEREST INCOME Quarterly Net Yield on Interest Earning Assets • Cash flows of approximately $1.2B from Q4 2024 3Q 2025 4Q 2025 maturities and paydowns of investments are expected over the next twelve months. 3.64% 3.60% 3.49% • Net yield on interest earning a
Slide 18: Summary of Fixed & Floating Loans
SUMMARY OF FIXED & FLOATING LOANS Over 62% of total loans are variable; 69% of commercial loans have floating rates Fixed Variable Business Construction Business RE Commercial Total Loans: $6.4B Total Loans: $1.4B Total Loans: $3.7B 5% 33% 38% 67% 62% 95% Personal RE Consumer HELOC Consumer Card Tot
Slide 19: High Quality, Highly Liquid and Diverse Investment Portfolio
HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO Duration Composition of AFS Portfolio QTD – Dec. 31, 2025 Avg Rate (yrs) As of December 31, 2025 Treasury & agency1 3.65% 3.7 Total available for sale securities Average balance: $9.2 billion, at fair value Municipal 2.06%2 4.4 MBS 2.05% 5
Slide 20: Sound Capital and Liquidity Position
SOUND CAPITAL AND LIQUIDITY POSITION Tier 1 Risk-Based Capital Ratio1 Loan to Deposit Ratio PB Peer Median: 13.2% Large, stable deposit base 17.5% 69% Average CBSH 17.5% Core Deposits Loan to HOMB 16.1% Deposit Ratio 3 CFR 14.6% $23.3 Commerce 82% WSFS 14.4% Average Loan to HWC 14.1% Billion2 Deposi
Slide 21: Maintaining Strong Credit Quality
MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) Allowance for Credit $ in millions Losses on Loans (ACL) $ in millions $16.0 $13.5 $349.3 $10.7 $321.4 $10.3 $9.9 $162.7 $175.7 1.36% $179.5 1.34% .25% .22% .23% .22% .99% 1.01% .19% .95% 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 NCOs- CBSH NCO/Avera
Slide 22: Allocation of Allowance
ALLOCATION OF ALLOWANCE CECL allowances reflect the economic and market outlook Allowance for Credit Losses (ACL) on Loans September 30, 2025 December 31, 2025 $ in millions Allowance for % of Allowance for % of $200 1.10% Credit Losses Outstanding Credit Losses Outstanding $ in millions (ACL) Loans
Slide 23: 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 24: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Pre-tax, Pre-provision Net Revenue For The Three Months Ended (DOLLARS IN THOUSANDS) Dec. 31, 2025 Sep. 30, 2025 Dec. 31, 2024 A Net Interest Income $ 283,152 $ 279,457 $ 266,647 B Non-Interest Income $ 166,208 $ 161,511 $ 155,436 C Non-Interest Expense $ 252,995 $ 244,018 $
Slide 25: Contact Information
Investor Relations 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/ ,..... ~ \.11' Commerce Ban
Slide 26: ltl)
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