Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Q1 2026 Earnings Presentation
24 slides from Commerce Bancshares's earnings presentation, Apr 21, 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 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 $35.7 BILLION TOTAL ASSETS 40TH LARGEST U.S. BANK BASED ON ASSET SIZE1 $7.2 BILLION MARKET CAP 29TH LARGEST U.S. BANK BASED ON MARKET CAP1 $91.4 BILLION TOTAL TRUST ASSETS UNDER ADMINISTRATION 16TH 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 $27.0 billion in low-cost, diverse deposits2 with peer-leading historical deposit betas 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% • 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 $10MM over the sam
Slide 6: FineMark Purchase Accounting Impacts
FINEMARK PURCHASE ACCOUNTING IMPACTS Methodology Income (Expense) Recognized Q1 26 As of Jan 1, 2026$ in millions $6.9$89.6Fair Value Marks on Loans (Amortized over 4 months).4.5Fair Value Marks on Time Deposits $7.3$90.1Total Methodology Income (Expense) Recognized Q1 26 As of Jan 1, 2026$ in milli
Slide 7: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 1Q26 vs. 1Q25 1Q26 vs. 4Q25 Quarterly Average Balances % Change$ Change% Change$ Change1Q26$ in millions 10%$1,135.88%$868.3$12,325.1Commercial 32%1,959.329%1,808.68,012.6Consumer 18%$3,095.115%$2,676.9$20,337.7Total Loans -2%)($230.4-2%)($211.1$9,311.9Investment Securities1
Slide 8: Balance Sheet
$17.6 $18.0 $19.8 $7.3 $7.6 $7.9 1Q25 4Q25 1Q26 $24.9 $25.6 $27.7 +11% $11.2 $11.5 $12.3 $6.0 $6.2 $8.0 1Q25 4Q25 1Q26 $17.2 $17.7 $20.3 +18% BALANCE SHEET 8 Loans Consumer Loans Commercial Loans Loan Yield1 Deposits QTD Average Balances $ billions Non-Interest Bearing Interest-Bearing Deposits Inte
Slide 9: Loan Portfolio
LOAN PORTFOLIO 9 YoYQoQ3/31/202512/31/20253/31/2026$ in 000s 8.2%4.8%$6,239,276$6,439,380$6,750,356Business 11.4%10.0%1,419,5721,438,0121,581,789Construction 11.9%10.5%3,628,6353,674,5674,059,539Business Real Estate 44.6%44.3%3,047,8093,053,4354,407,606Personal Real Estate 17.0%12.7%2,116,1602,196,8
Slide 10: Commercial Real Estate Breakdown
37.1% 16.0% 15.1% 8.8% 7.6%7.0% Owner- occupied Industrial Office Hotels RetailMulti-family 4.9% Farm 2.6% Other 0.9% Senior living COMMERCIAL REAL ESTATE BREAKDOWN 10 Real Estate - Business Loans $4.1 billion% of Total Loans Real Estate - Business Loans 7.4%Owner – Occupied 3.2%Industrial 3.0%Offic
Slide 11: Income Statement Highlights
$166 $196 $283 $253 4Q25 $449 11 INCOME STATEMENT HIGHLIGHTS $159 $190 $269 $238 1Q25 $428 $176 $185 $300 $291 1Q26 $476 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 1Q26 Comparison -2.7%vs. 1Q25 -6.0%vs. 4Q25 Pre-Tax, Pre-Provision
Slide 12: Income Statement Highlights
1Q26 vs. 1Q25 1Q26 vs. 4Q25 % Change$ Change% Change$ Change1Q26$ in millions 11%$30.76%$16.7$299.8Net Interest Income 11%$16.96%$9.6$175.9Non-Interest Income 22%$52.815%$38.1$291.1Non-Interest Expense -3%-$5.1-6%-$11.8$184.6Pre-Tax, Pre-Provision Net Revenue1 NM$19.2NM$8.7$11.6Investment Securities
Slide 13: Non-Interest Income Highlights
Total Non-Interest Income: 37% of total revenue. Trust Fees: Increase over the prior year mainly due to higher private client fees. Deposit Account Charges and Other Fees: Increase over the prior year due to higher corporate cash management fees. NON-INTEREST INCOME HIGHLIGHTS 13 1Q26 vs. 1Q25 1Q26
Slide 14: Non-Interest Expense Highlights
NON-INTEREST EXPENSE HIGHLIGHTS 14 1Q26 vs. 1Q25 1Q26 vs. 4Q25 % Change$ Change% Change$ Change1Q26$ in millions 18%$27.711%$17.9$180.8Salaries and Employee Benefits 19%6.19%3.138.3Data Processing and Software 87%8.829%4.218.8Professional and Other Services 9%1.316%2.115.3Net Occupancy 19%1.112%.87.
Slide 15: Liquidity and Capital
LIQUIDITY AND CAPITAL & commerce Bancshares, Inc.
Slide 16: Deposit Balance Trends
2022 2023 2024 2025 $2.8 $2.4 $2.4 $2.5 DEPOSIT BALANCE TRENDS Segment view $ in billions 16 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 4Q25 1Q26 $12.6 $12.9 Period EndAverage Balance Average Balance Segment
Slide 17: Opportunities to Enhance and Protect Net Interest Income
3.56% 3.60% 3.59% 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: High Quality, Highly Liquid and Diverse Investment Portfolio
37% 8% 41% 12% 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 – Mar. 31, 2026 3.53.67%Treasury & agency1 4.22.10%2
Slide 19: 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 19 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of December 31, 2025 2Period-end
Slide 20: Maintaining Strong Credit Quality
$22.6 $15.8 $11.0 $145.9 $160.0 1Q25 4Q25 1Q26 $10.8 $9.9 $15.0 $12.5 $20.2 1Q25 4Q25 1Q26 MAINTAINING STRONG CREDIT QUALITY Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $167.0 $179.5 $198.6 $333.6 $343.7 1Q25 4Q25 1Q26 Allowance for Credit Losse
Slide 21: Allocation of Allowance
ALLOCATION OF ALLOWANCE 21 CECL allowances reflect the economic and market outlook March 31, 2026December 31, 2025 % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL)$ in millions .87%$ 58.7.83%$ 53.2Business .87%35.1 .94%34.6 Bus R/E 1.9
Slide 22: Capital for Business Quick Facts
Quick Facts: Small Business Investment Company (SBIC) founded in 1959 Nationwide footprint with Greater Midwest Focus 30 Portfolio Companies Representing $998.8 million in Revenue Nearly 3,000 Employees Fair Value as of March 31, 2026: $183.8 million Investment Criteria • Manufacturing, distribution
Slide 23: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 23 For The Three Months Ended Mar. 31, 2025Dec. 31, 2025Mar. 31, 2026(DOLLARS IN THOUSANDS) 269,102$283,152$299,840$Net Interest IncomeA 158,949$166,208$175,851$Non-Interest IncomeB 238,376$252,995$291,126$Non-Interest ExpenseC 189,675$196,365$184,565$Pre-Provision Net Reven
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/