Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q2 2026 Earnings Presentation
23 slides from Commerce Bancshares's earnings presentation, Jul 16, 2026
Slide 1: Commerce Bancshares, Inc. Earnings Highlights 2nd Quarter 2026
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 2nd 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 $35.3 BILLION TOTAL ASSETS 36TH LARGEST U.S. BANK BASED ON ASSET SIZE1 $8.3 BILLION MARKET CAP 29TH LARGEST U.S. BANK BASED ON MARKET CAP1 $94.5 BILLION TOTAL TRUST ASSETS UNDER ADMINISTRATION 15TH LARGEST AMONG BANK-MANAGED TRUST COMPANIES BASED ON AUM2 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 $26.5 billion in low-cost, diverse deposits2 with peer-leading historical deposit betas Cre
Slide 5: 2Q2026 Highlights
2Q2026 HIGHLIGHTS • Earnings of $1.10 per share, compared to .96 in Q1 and $1.09 in Q2 2025 • ROAA of 1.84% and ROAE of 14.70% • Efficiency ratio of 58.4% • Net Income of $160MM in Q2, an increase of $18MM over Q1 • Net interest income of $315MM, up 5% over Q1 • Net interest margin increased 18 bps
Slide 6: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 2Q26 vs. 2Q25 2Q26 vs. 1Q26 Quarterly Average Balances % Change$ Change% Change$ Change2Q26$ in millions 10%$1,102.21%$147.5$12,472.6Commercial 31%1,916.30%29.08,041.7Consumer 17%$3,018.51%$176.6$20,514.3Total Loans -4%)($348.3-3%)($253.0$9,058.9Investment Securities1 26%$53
Slide 7: Balance Sheet: Loans and Deposits
$17.6 $19.8 $19.5 $7.3 $7.9 $8.1 2Q25 1Q26 2Q26 $24.9 $27.7 $27.6 +11% $11.4 $12.3 $12.5 $6.1 $8.0 $8.0 2Q25 1Q26 2Q26 $17.5 $20.3 $20.5 +17% 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 YoYQoQ6/30/20253/31/20266/30/2026$ in 000s 12.4%5.4%$6,328,684 $6,750,356$7,115,984 Business 6.3%-5.6%1,405,3981,581,7891,493,455Construction 8.2%.1%3,757,7784,059,5394,064,253Business Real Estate 42.8%-.9%3,058,8454,407,6064,369,077Personal Real Estate 17.1%2.1%2,157,8672,475,3532,
Slide 9: Income Statement Highlights
$176 $185 $300 $291 1Q26 $476 9 INCOME STATEMENT HIGHLIGHTS $166 $201 $280 $245 2Q25 $446 $184 $202 $315 $297 2Q26 $499 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 2Q26 Comparison 0.3%vs. 2Q25 9.4%vs. 1Q26 Pre-Tax, Pre-Provision Net
Slide 10: Income Statement Highlights
2Q26 vs. 2Q25 2Q26 vs. 1Q26 % Change$ Change% Change$ Change2Q26$ in millions 12%$34.95%$15.2$315.1Net Interest Income 11%$18.25%$8.0$183.8Non-Interest Income 22%$52.62%$5.9$297.1Non-Interest Expense 0%$.59%$17.3$201.8Pre-Tax, Pre-Provision Net Revenue1 NM$12.410%$1.2$12.8Investment Securities Gains
Slide 11: Non-Interest Income Highlights
Total Non-Interest Income: 37% of total revenue. Bank Card Transaction Fees: Increase over the prior quarter mainly due to growth in corporate and credit card fees. Deposit Account Charges and Other Fees: Increase over prior quarter due to higher corporate cash management fees. Other: Includes $2.5M
Slide 12: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 12 2Q26 vs. 2Q25 2Q26 vs. 1Q26 % Change$ Change% Change$ Change2Q26$ in millions 16%$24.90%)($.8$180.0Salaries and Employee Benefits 16%5.30%(.1)38.2Data Processing and Software 27%3.5-12%)(2.316.5Professional and Other Services 7%1.0-4%)(.714.6Net Occupancy 7%.4-8%)(
Slide 13: Liquidity and Capital
LIQUIDITY AND CAPITAL & commerce Bancshares, Inc.
Slide 14: Deposit Balance Trends
2022 2023 2024 2025 $2.8 $2.4 $2.4 $2.5 DEPOSIT BALANCE TRENDS Segment view $ in billions 14 2022 2023 2024 2025 $11.9 $10.4 $9.9 $10.3 2022 2023 2024 2025 $13.4 $12.2 $12.3 $12.3 Commercial Retail Banking Wealth Average Balance 1Q26 2Q26 $12.9 $12.9 Period EndAverage Balance Average Balance Segment
Slide 15: Visa Stock & Securities Portfolio Repositioning Update
2Q26 vs. 1Q26Period-End Balances $ Change1Q262Q26$ in millions $356$3,202$3,558U.S. government and federal agency obligations )($16$706$690State and municipal obligations )($636$4,147$3,511Mortgage-backed securities )($91$1,105$1,014Asset-backed securities )($6$174$168Other debt securities $68)($687
Slide 16: 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 17: High Quality, Highly Liquid and Diverse Investment Portfolio
37% 7% 43% 11% 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 – Jun. 30, 2026 3.93.67%Treasury & agency1 4.02.07%2
Slide 18: 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 18 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of March 31, 2026 2Period-end bal
Slide 19: Maintaining Strong Credit Quality
$18.9 $10.9 $11.6 $136.9 $151.4 2Q25 1Q26 2Q26 $9.7 $15.0 $9.5$9.7 $12.4 2Q25 1Q26 2Q26 MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $165.3 $198.6 $195.4 $322.9 $323.3 2Q25 1Q26 2Q26 Allowance for Credit Losses o
Slide 20: Allocation of Allowance
ALLOCATION OF ALLOWANCE 20 CECL allowances reflect the economic and market outlook June 30, 2026March 31, 2026 % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL)$ in millions .80%$ 57.3.87%$ 58.7Business .89%36.2 .87%35.1 Bus R/E 2.01%30
Slide 21: 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 Total Payout Ratio 45% 59% 70% 31% 44% 108% 88% 94% STRONG CAPITAL POSITION PROVIDES FLEXIBILITY AND BOLSTERS RESILIENCE Cash dividends paid on common stock Common share repurchase Total Payout Rat
Slide 22: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 22 For The Three Months Ended Jun. 30, 2025Mar. 31, 2026Jun. 30, 2026(DOLLARS IN THOUSANDS) 280,147$299,840$315,085$Net Interest IncomeA 165,613$175,851$183,828$Non-Interest IncomeB 244,437$291,126$297,068$Non-Interest ExpenseC 201,323$184,565$201,845$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/