Commerce Bancshares, Inc. Reports Fourth Quarter Earnings Per Share of $1.01

1/22/26 6:00:00 AM ET

Major Banks

Finance

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Commerce Bancshares, Inc. announced earnings of $1.01 per share for the three months ended December 31, 2025, compared to $.96 per share in the same quarter last year and $1.01 per share in the third quarter of 2025. Net income for the fourth quarter of 2025 amounted to $140.7 million, compared to $136.1 million in the fourth quarter of 2024 and $141.5 million in the prior quarter.

For the year ended December 31, 2025, earnings per share totaled $4.04, compared to $3.69 last year. Net income amounted to $566.3 million for the year ended December 31, 2025, compared to $526.3 million in the comparable period last year. For the year to date, the return on average assets was 1.79%, and the return on average equity was 15.76%.

"Commerce delivered record revenues in the fourth quarter, driven by strong performance across both net interest income and non-interest income. Our overall results for the quarter and the full year are a reflection of the strength and diversity of our businesses and the dedication of our team members in serving our customers, communities and shareholders," said John Kemper, President and Chief Executive Officer.

On balance sheet strength, Kemper added, "We repurchased 2.2 million common shares in the fourth quarter and ended the year with robust levels of liquidity and capital. Compared to the same period last year, tangible common equity to tangible assets ratio grew 119 basis points to 11.11%, and our book value per share increased by $4.09, or 17%, to $27.75. Credit quality remains excellent with non-accrual loans at .09% of total loans, down two basis points from the same period last year."

Kemper continued, "On January 1, 2026, we closed on the FineMark acquisition and officially welcomed our new colleagues into our organization. This combination strengthens our platform for sustained growth in wealth management and private banking, and I am eager see what we can accomplish together." At December 31, 2025, FineMark had loans of $2.7 billion, deposits of $3.1 billion, and $8.7 billion of wealth assets under administration.

Fourth Quarter 2025 Financial Highlights:

Net interest income was $283.2 million, a $3.7 million increase over the prior quarter. The net yield on interest earning assets decreased four basis points to 3.60%.
Non-interest income totaled $166.2 million, an increase of $10.8 million, or 6.9%, over the same quarter last year.
Trust fees grew $5.8 million, or 10.3%, over the same period last year, mostly due to higher private client fees.
Non-interest expense totaled $253.0 million, an increase of $17.3 million, or 7.3%, over the same quarter last year.
Average loan balances totaled $17.7 billion, an increase of 1.0% over the prior quarter.
Total average available for sale debt securities increased $311.5 million over the prior quarter to $9.2 billion, at fair value.
Total average deposits increased $816.0 million, or 3.3%, over the prior quarter. The average rate paid on interest bearing deposits decreased nine basis points to 1.62%, compared to the prior quarter.
The ratio of annualized net loan charge-offs to average loans was .22% in the current quarter compared to .23% in the prior quarter.
The allowance for credit losses on loans increased $3.8 million during the fourth quarter of 2025 to $179.5 million, and the ratio of the allowance for credit losses on loans to total loans was 1.01% at December 31, 2025, compared to .99% at September 30, 2025.
Total assets at December 31, 2025 were $32.9 billion, an increase of $626.4 million over the prior quarter.
For the quarter, the return on average assets was 1.73%, the return on average equity was 14.70%, and the efficiency ratio was 56.2%.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, wealth management and securities brokerage. Commerce Bank, its primary subsidiary, brings over 160 years of experience helping individuals and businesses through high-touch service and sophisticated, personalized financial solutions.

Commerce maintains an extensive network of banking centers, wealth offices, and ATMs throughout the Midwest, as well as commercial offices in 11 states and offers payment solutions nationwide. With the acquisition of FineMark Holdings, Inc., Commerce builds on its existing private banking and wealth management presence in Florida and adds wealth offices in Arizona and South Carolina. Customers can conveniently access their accounts 24/7 using mobile and online platforms, as well as a customer service line.

This financial news release and the supplementary Earnings Highlights presentation are available on the Company's website at https://investor.commercebank.com/news-info/financial-news-releases/default.aspx.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES FINANCIAL HIGHLIGHTS

	For the Three Months Ended						For the Year Ended
(Unaudited) (Dollars in thousands, except per share data)	Dec. 31, 2025		Sep. 30, 2025		Dec. 31, 2024		Dec. 31, 2025		Dec. 31, 2024
FINANCIAL SUMMARY
Net interest income	$283,152		$279,457		$266,647		$1,111,858		$1,040,246
Non-interest income	166,208		161,511		155,436		652,281		615,553
Total revenue	449,360		440,968		422,083		1,764,139		1,655,799
Investment securities gains (losses)	2,929		7,885		977		3,660		7,823
Provision for credit losses	15,993		20,061		13,508		56,138		32,903
Non-interest expense	252,995		244,018		235,718		979,826		951,229
Income before taxes	183,301		184,774		173,834		731,835		679,490
Income taxes	40,620		41,152		36,590		161,136		145,089
Non-controlling interest expense (income)	2,019		2,104		1,136		4,448		8,070
Net income attributable to Commerce Bancshares, Inc.	$140,662		$141,518		$136,108		$566,251		$526,331
Earnings per common share:
Net income — basic	$1.01		$1.01		$0.96		$4.04		$3.69
Net income — diluted	$1.01		$1.01		$0.96		$4.04		$3.69
Effective tax rate	22.41	%	22.53	%	21.19	%	22.15	%	21.61	%
Fully-taxable equivalent net interest income	$285,830		$281,770		$268,935		$1,121,444		$1,049,463
Average total interest earning assets ⁽¹⁾	$31,468,907		$30,732,665		$30,628,722		$30,934,106		$30,266,008
Diluted wtd. average shares outstanding	137,599,105		139,086,435		140,370,917		138,900,333		141,422,821
RATIOS
Average loans to deposits ⁽²⁾	69.01	%	70.61	%	68.45	%	69.80	%	69.73	%
Return on total average assets	1.73		1.78		1.73		1.79		1.72
Return on average equity ⁽³⁾	14.70		15.26		15.97		15.76		16.66
Non-interest income to total revenue	36.99		36.63		36.83		36.97		37.18
Efficiency ratio ⁽⁴⁾	56.23		55.26		55.77		55.47		57.37
Net yield on interest earning assets	3.60		3.64		3.49		3.63		3.47
EQUITY SUMMARY
Cash dividends per share	$.262		$.262		$.245		$1.048		$.980
Cash dividends on common stock	$36,236		$36,733		$34,609		$146,596		$139,503
Book value per share ⁽⁵⁾	$27.75		$27.15		$23.66
Market value per share ⁽⁵⁾	$52.34		$56.91		$59.34
High market value per share	$57.36		$63.18		$69.29
Low market value per share	$48.69		$55.16		$51.44
Common shares outstanding ⁽⁵⁾	137,457,138		139,672,183		140,859,781
Tangible common equity to tangible assets ⁽⁶⁾	11.11	%	11.27	%	9.92	%
Tier I leverage ratio	12.65	%	12.95	%	12.26	%
OTHER QTD INFORMATION
Number of bank/ATM locations	236		239		243
Full-time equivalent employees	4,667		4,666		4,693
(1) Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities.
(2) Includes loans held for sale.
(3) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.
(4) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.
(5) As of period end.
(6) The tangible common equity ratio is a non-gaap ratio and is calculated as stockholders' equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).
All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2025.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (In thousands, except per share data)	For the Three Months Ended										For the Year Ended
(Unaudited) (In thousands, except per share data)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024		Dec. 31, 2025		Dec. 31, 2024
Interest income	$373,617		$374,105		$371,636		$364,365		$369,405		$1,483,723		$1,469,557
Interest expense	90,465		94,648		91,489		95,263		102,758		371,865		429,311
Net interest income	283,152		279,457		280,147		269,102		266,647		1,111,858		1,040,246
Provision for credit losses	15,993		20,061		5,597		14,487		13,508		56,138		32,903
Net interest income after credit losses	267,159		259,396		274,550		254,615		253,139		1,055,720		1,007,343
NON-INTEREST INCOME
Trust fees	62,125		58,412		55,571		56,592		56,345		232,700		214,430
Bank card transaction fees	46,761		45,551		46,362		45,593		47,807		184,267		189,784
Deposit account charges and other fees	27,949		27,427		26,248		26,622		25,480		108,246		100,336
Consumer brokerage services	5,185		6,698		5,383		4,785		4,636		22,051		18,141
Capital market fees	4,230		5,138		6,175		5,112		5,129		20,655		19,776
Loan fees and sales	3,594		3,465		3,419		3,404		2,874		13,882		12,890
Other	16,364		14,820		22,455		16,841		13,165		70,480		60,196
Total non-interest income	166,208		161,511		165,613		158,949		155,436		652,281		615,553
INVESTMENT SECURITIES GAINS (LOSSES), NET	2,929		7,885		437		(7,591	)	977		3,660		7,823
NON-INTEREST EXPENSE
Salaries and employee benefits	162,889		157,461		155,025		153,078		153,819		628,453		607,862
Data processing and software	35,273		33,555		32,904		32,238		32,514		133,970		127,390
Net occupancy	13,172		13,474		13,654		14,020		13,694		54,320		53,223
Professional and other services	14,573		11,284		12,973		10,026		8,982		48,856		35,077
Marketing	6,201		6,670		5,974		5,843		5,683		24,688		22,353
Equipment	5,682		5,421		5,157		5,248		5,232		21,508		20,619
Supplies and communication	4,841		4,837		4,962		5,046		4,948		19,686		19,291
Deposit Insurance	(81	)	3,074		3,312		3,744		3,181		10,049		16,482
Other	10,445		8,242		10,476		9,133		7,665		38,296		48,932
Total non-interest expense	252,995		244,018		244,437		238,376		235,718		979,826		951,229
Income before income taxes	183,301		184,774		196,163		167,597		173,834		731,835		679,490
Less income taxes	40,620		41,152		42,400		36,964		36,590		161,136		145,089
Net income	142,681		143,622		153,763		130,633		137,244		570,699		534,401
Less non-controlling interest expense (income)	2,019		2,104		1,284		(959	)	1,136		4,448		8,070
Net income attributable to Commerce Bancshares, Inc.	$140,662		$141,518		$152,479		$131,592		$136,108		$566,251		$526,331
Net income per common share — basic	$1.01		$1.01		$1.09		$0.93		$0.96		$4.04		$3.69
Net income per common share — diluted	$1.01		$1.01		$1.09		$0.93		$0.96		$4.04		$3.69
OTHER INFORMATION
Return on total average assets	1.73	%	1.78	%	1.95	%	1.69	%	1.73	%	1.79	%	1.72	%
Return on average equity ⁽¹⁾	14.70		15.26		17.40		15.82		15.97		15.76		16.66
Efficiency ratio ⁽²⁾	56.23		55.26		54.77		55.61		55.77		55.47		57.37
Effective tax rate	22.41		22.53		21.76		21.93		21.19		22.15		21.61
Net yield on interest earning assets	3.60		3.64		3.70		3.56		3.49		3.63		3.47
Fully-taxable equivalent net interest income	$285,830		$281,770		$282,428		$271,416		$268,935		$1,121,444		$1,049,463
(1) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.
(2) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - PERIOD END

(Unaudited) (In thousands)	Dec. 31, 2025		Sep. 30, 2025		Dec. 31, 2024
ASSETS
Loans
Business	$6,439,380		$6,414,792		$6,053,820
Real estate — construction and land	1,438,012		1,433,652		1,409,901
Real estate — business	3,674,567		3,745,000		3,661,218
Real estate — personal	3,053,435		3,070,980		3,058,195
Consumer	2,196,822		2,171,599		2,073,123
Revolving home equity	375,159		364,241		356,650
Consumer credit card	589,694		575,317		595,930
Overdrafts	4,194		11,186		11,266
Total loans	17,771,263		17,786,767		17,220,103
Allowance for credit losses on loans	(179,468	)	(175,671	)	(162,742	)
Net loans	17,591,795		17,611,096		17,057,361
Loans held for sale	4,329		2,538		3,242
Investment securities:
Available for sale debt securities	9,095,513		8,998,586		9,136,853
Trading debt securities	40,080		56,282		38,034
Equity securities	57,354		53,193		57,442
Other securities	230,459		227,430		230,051
Total investment securities	9,423,406		9,335,491		9,462,380
Federal funds sold	—		—		3,000
Securities purchased under agreements to resell	850,000		850,000		625,000
Interest earning deposits with banks	2,744,393		2,477,668		2,624,553
Cash and due from banks	803,239		476,441		748,357
Premises and equipment — net	485,700		483,000		475,275
Goodwill	146,539		146,539		146,539
Other intangible assets — net	13,311		13,329		13,632
Other assets	852,377		892,586		837,288
Total assets	$32,915,089		$32,288,688		$31,996,627
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing	$8,205,711		$7,489,645		$8,150,669
Savings, interest checking and money market	15,047,406		15,551,799		14,754,571
Certificates of deposit of less than $100,000	1,023,406		1,002,640		996,721
Certificates of deposit of $100,000 and over	1,363,053		1,413,965		1,391,683
Total deposits	25,639,576		25,458,049		25,293,644
Federal funds purchased and securities sold under agreements to repurchase	2,989,641		2,473,065		2,926,758
Other borrowings	12,798		9,270		56
Other liabilities	458,302		555,257		443,694
Total liabilities	29,100,317		28,495,641		28,664,152
Stockholders' equity:
Common stock	692,944		676,054		676,054
Capital surplus	3,522,292		3,390,526		3,395,645
Retained earnings	131,826		360,723		45,494
Treasury stock	(48,001	)	(121,972	)	(48,401	)
Accumulated other comprehensive income (loss)	(507,690	)	(533,666	)	(758,911	)
Total stockholders' equity	3,791,371		3,771,665		3,309,881
Non-controlling interest	23,401		21,382		22,594
Total equity	3,814,772		3,793,047		3,332,475
Total liabilities and equity	$32,915,089		$32,288,688		$31,996,627

COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS

(Unaudited) (In thousands)	For the Three Months Ended
(Unaudited) (In thousands)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024
ASSETS:
Loans:
Business	$6,317,805		$6,230,019		$6,247,252		$6,106,185		$5,963,217
Real estate — construction and land	1,408,339		1,396,977		1,430,758		1,415,349		1,411,437
Real estate — business	3,730,679		3,715,597		3,692,405		3,667,833		3,636,026
Real estate — personal	3,058,834		3,059,913		3,048,895		3,045,876		3,047,494
Consumer	2,200,500		2,160,637		2,148,666		2,082,360		2,087,237
Revolving home equity	372,194		360,820		362,312		358,684		350,541
Consumer credit card	565,896		563,351		559,858		560,534		568,138
Overdrafts	6,592		7,037		5,663		5,860		5,628
Total loans	17,660,839		17,494,351		17,495,809		17,242,681		17,069,718
Allowance for credit losses on loans	(175,129	)	(164,623	)	(166,391	)	(162,186	)	(160,286	)
Net loans	17,485,710		17,329,728		17,329,418		17,080,495		16,909,432
Loans held for sale	2,532		2,369		1,741		1,584		2,080
Investment securities:
U.S. government and federal agency obligations	3,197,720		2,693,327		2,623,896		2,586,944		2,459,485
Government-sponsored enterprise obligations	54,955		55,014		55,038		55,330		55,428
State and municipal obligations	724,737		756,137		780,063		804,363		831,695
Mortgage-backed securities	4,316,799		4,461,056		4,641,295		4,788,102		4,905,187
Asset-backed securities	1,336,859		1,466,770		1,585,364		1,655,701		1,570,878
Other debt securities	196,633		204,281		237,385		258,136		221,076
Unrealized gain (loss) on debt securities	(645,595	)	(766,025	)	(838,028	)	(935,054	)	(896,346	)
Total available for sale debt securities	9,182,108		8,870,560		9,085,013		9,213,522		9,147,403
Trading debt securities	61,160		56,032		51,131		38,298		56,440
Equity securities	52,387		50,823		54,472		57,028		56,758
Other securities	227,395		220,041		216,560		233,461		222,529
Total investment securities	9,523,050		9,197,456		9,407,176		9,542,309		9,483,130
Federal funds sold	—		23		158		2,089		826
Securities purchased under agreements to resell	850,000		850,000		850,000		788,889		566,307
Interest earning deposits with banks	2,786,891		2,422,441		2,036,803		2,388,504		2,610,315
Other assets	1,700,147		1,709,247		1,671,763		1,698,296		1,701,822
Total assets	$32,348,330		$31,511,264		$31,297,059		$31,502,166		$31,273,912

LIABILITIES AND EQUITY:
Non-interest bearing deposits	$7,592,431		$7,345,156		$7,356,882		$7,298,686		$7,464,255
Savings	1,261,285		1,283,671		1,303,391		1,294,174		1,281,291
Interest checking and money market	14,335,613		13,740,770		13,901,634		13,906,827		13,679,666
Certificates of deposit of less than $100,000	1,015,617		991,877		984,845		991,826		1,061,783
Certificates of deposit of $100,000 and over	1,389,149		1,416,572		1,371,428		1,363,655		1,451,851
Total deposits	25,594,095		24,778,046		24,918,180		24,855,168		24,938,846
Borrowings:
Federal funds purchased	130,487		130,622		129,891		128,340		121,781
Securities sold under agreements to repurchase	2,429,746		2,519,660		2,371,031		2,723,227		2,445,956
Other borrowings	1,230		1,860		2,748		616		1,067
Total borrowings	2,561,463		2,652,142		2,503,670		2,852,183		2,568,804
Other liabilities	395,336		402,265		360,204		421,370		375,463
Total liabilities	28,550,894		27,832,453		27,782,054		28,128,721		27,883,113
Equity	3,797,436		3,678,811		3,515,005		3,373,445		3,390,799
Total liabilities and equity	$32,348,330		$31,511,264		$31,297,059		$31,502,166		$31,273,912

COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES

(Unaudited)	For the Three Months Ended
(Unaudited)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024
ASSETS:
Loans:
Business⁽¹⁾	5.48	%	5.72	%	5.72	%	5.75	%	5.86	%
Real estate — construction and land	7.05		7.37		7.39		7.30		7.75
Real estate — business	5.76		5.92		5.92		5.88		6.01
Real estate — personal	4.38		4.34		4.30		4.28		4.17
Consumer	6.23		6.42		6.43		6.52		6.52
Revolving home equity	7.25		7.94		7.41		7.26		7.28
Consumer credit card	12.81		13.21		13.18		13.49		13.60
Overdrafts	—		—		—		—		—
Total loans	5.84		6.02		6.01		6.02		6.11
Loans held for sale	5.01		6.03		9.22		5.89		7.65
Investment securities:
U.S. government and federal agency obligations	4.07		4.06		4.28		4.09		3.86
Government-sponsored enterprise obligations	2.36		2.35		2.38		2.40		2.36
State and municipal obligations⁽¹⁾	2.06		2.05		2.05		2.05		2.01
Mortgage-backed securities	2.05		2.01		2.08		2.08		2.17
Asset-backed securities	3.78		3.69		3.73		3.46		2.99
Other debt securities	2.97		2.97		2.94		2.69		2.11
Total available for sale debt securities	2.96		2.86		2.95		2.83		2.70
Trading debt securities⁽¹⁾	4.61		4.67		4.63		4.97		4.26
Equity securities ⁽¹⁾	6.35		6.09		6.26		8.02		6.58
Other securities ⁽¹⁾	9.08		7.29		11.63		7.85		5.75
Total investment securities	3.12		2.99		3.16		2.98		2.80
Federal funds sold	—		—		5.08		5.63		5.78
Securities purchased under agreements to resell	4.00		4.00		4.02		3.81		3.57
Interest earning deposits with banks	3.95		4.45		4.46		4.46		4.78
Total interest earning assets	4.74		4.86		4.90		4.81		4.83

LIABILITIES AND EQUITY:
Interest bearing deposits:
Savings	.05		.05		.05		.05		.05
Interest checking and money market	1.45		1.54		1.49		1.52		1.63
Certificates of deposit of less than $100,000	3.25		3.33		3.44		3.65		3.91
Certificates of deposit of $100,000 and over	3.60		3.71		3.78		3.96		4.24
Total interest bearing deposits	1.62		1.71		1.67		1.72		1.87
Borrowings:
Federal funds purchased	3.92		4.34		4.37		4.37		4.71
Securities sold under agreements to repurchase	2.54		2.88		2.85		2.86		3.11
Other borrowings	.65		1.71		3.79		.66		3.36
Total borrowings	2.61		2.95		2.93		2.93		3.18
Total interest bearing liabilities	1.75	%	1.87	%	1.83	%	1.89	%	2.04	%

Net yield on interest earning assets	3.60	%	3.64	%	3.70	%	3.56	%	3.49	%
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CREDIT QUALITY

	For the Three Months Ended										For the Year Ended
(Unaudited) (In thousands, except ratios)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024		Dec. 31, 2025		Dec. 31, 2024
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period	$175,671		$165,260		$167,031		$162,742		$160,839		$162,742		$162,395
Provision for credit losses on loans	13,660		20,739		7,919		15,095		12,557		57,413		39,214
Net charge-offs (recoveries):
Commercial portfolio:
Business	222		826		432		46		335		1,526		1,094
Real estate — construction and land	16		—		24		—		—		40		—
Real estate — business	(24	)	(23	)	(425	)	377		50		(95	)	(106	)
	214		803		31		423		385		1,471		988
Personal banking portfolio:
Consumer credit card	6,488		6,515		7,085		6,967		6,557		27,055		26,011
Consumer	2,498		2,310		2,168		2,852		3,237		9,828		9,783
Overdraft	485		432		360		495		470		1,772		2,012
Real estate — personal	180		269		35		72		8		556		239
Revolving home equity	(2	)	(1	)	11		(3	)	(3	)	5		(166	)
	9,649		9,525		9,659		10,383		10,269		39,216		37,879
Total net loan charge-offs	9,863		10,328		9,690		10,806		10,654		40,687		38,867
Balance at end of period	$179,468		$175,671		$165,260		$167,031		$162,742		$179,468		$162,742
LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$17,660		$15,327		$16,005		$18,327		$18,935
NET CHARGE-OFF RATIOS ⁽¹⁾
Commercial portfolio:
Business	.01	%	.05	%	.03	%	—	%	.02	%	.02	%	.02	%
Real estate — construction and land	—		—		.01		—		—		—		—
Real estate — business	—		—		(.05	)	.04		.01		—		—
	.01		.03		—		.02		.01		.01		.01
Personal banking portfolio:
Consumer credit card	4.55		4.59		5.08		5.04		4.59		4.81		4.64
Consumer	.45		.42		.40		.56		.62		.46		.46
Overdraft	29.19		24.36		25.50		34.26		33.22		28.16		34.06
Real estate — personal	.02		.03		—		.01		—		.02		.01
Revolving home equity	—		—		.01		—		—		—		(.05	)
	.62		.61		.63		.70		.67		.64		.63
Total	.22	%	.23	%	.22	%	.25	%	.25	%	.23	%	.23	%
CREDIT QUALITY RATIOS
Non-accrual loans to total loans	.09	%	.09	%	.11	%	.13	%	.11	%
Allowance for credit losses on loans to total loans	1.01		.99		.94		.96		.95
NON-ACCRUAL AND PAST DUE LOANS
Non-accrual loans:
Business	$123		$255		$410		$1,112		$101
Real estate — construction and land	—		191		426		220		220
Real estate — business	14,785		14,940		15,109		18,305		14,954
Real estate — personal	842		867		948		989		1,026
Revolving home equity	—		—		1,977		1,977		1,977
Total	15,750		16,253		18,870		22,603		18,278
Loans past due 90 days and still accruing interest	$24,659		$21,536		$25,303		$19,417		$24,516
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).

COMMERCE BANCSHARES, INC.

Management Discussion of Fourth Quarter Results

December 31, 2025

For the quarter ended December 31, 2025, net income amounted to $140.7 million, compared to $141.5 million in the previous quarter and $136.1 million in the same quarter last year. The decrease in net income compared to the previous quarter was primarily the result of lower gains on investment securities and higher non-interest expense, partly offset by a decrease in the provision for credit losses, higher net interest income and higher non-interest income. The net yield on interest earning assets decreased four basis points from the previous quarter to 3.60%. Average loans, deposits and available for sale investment securities, at fair value, increased $166.5 million, $816.0 million and $311.5 million, respectively, over the prior quarter. For the quarter, the return on average assets was 1.73%, the return on average equity was 14.70%, and the efficiency ratio was 56.2%.

Balance Sheet Review

During the 4th quarter of 2025, average loans totaled $17.7 billion, an increase of $166.5 million over the prior quarter, and an increase of $591.1 million over the same quarter last year. Compared to the previous quarter, average balances of business and consumer loans grew $87.8 million and $39.9 million, respectively. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $27.0 million, compared to $30.6 million in the prior quarter.

Total average available for sale debt securities increased $311.5 million over the previous quarter to $9.2 billion, at fair value. The increase in available for sale debt securities was mainly the result of higher average balances of U.S. government and federal agency obligations, partly offset by lower average balances of mortgage-backed and asset-backed securities. During the 4th quarter of 2025, the unrealized loss on available for sale debt securities decreased $41.7 million to $646.8 million, at period end. Also, during the 4th quarter of 2025, purchases of available for sale debt securities totaled $444.9 million with a weighted average yield of approximately 3.59%, while maturities, sales and pay downs of available for sale debt securities were $395.0 million. On December 31, 2025, the duration of the available for sale investment portfolio was 4.3 years, and maturities and pay downs of approximately $1.2 billion are expected to occur during the next 12 months.

Total average deposits increased $816.0 million this quarter over the previous quarter. The increase in deposits mostly resulted from growth of $594.8 million and $247.3 million in average balances of interest checking and money market deposits and demand deposits, respectively. Compared to the previous quarter, total average commercial, wealth and consumer deposits grew $690.3 million, $45.3 million and $66.2 million, respectively. The average loans to deposits ratio was 69.0% in the current quarter and 70.6% in the prior quarter. The Company's average borrowings, which included average customer repurchase agreements of $2.4 billion, decreased $90.7 million to $2.6 billion in the 4th quarter of 2025.

Net Interest Income

Net interest income in the 4th quarter of 2025 amounted to $283.2 million, an increase of $3.7 million over the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter increased $4.1 million over the previous quarter to $285.8 million. The increase in net interest income was mostly due to higher interest income on investment securities and lower interest expense on borrowings and deposits, partly offset by lower interest income on loans. The net yield (FTE) on earning assets decreased to 3.60%, from 3.64% in the prior quarter.

Compared to the previous quarter, interest income on loans (FTE) decreased $5.8 million, mostly due to lower average rates earned on business, business real estate, construction and consumer banking loans, partly offset by higher average balances of business and consumer banking loans. The average yield (FTE) on the loan portfolio decreased 18 basis points to 5.84% this quarter.

Interest income on investment securities (FTE) increased $5.1 million compared to the prior quarter, mostly due to higher average balances of U.S. government and federal agency securities and higher average rates earned on other securities, partially offset by lower average balances of asset-backed and mortgage-backed securities. Interest income earned on U.S. government and federal agency securities included the impact of a $397 thousand increase in inflation income from Treasury inflation-protected securities over the previous quarter. Interest on other securities included dividend income of $2.1 million related to a private equity investment and was higher than non-accrual interest of $1.3 million recorded in the prior quarter. Additionally, the Company recorded a $731 thousand adjustment to premium amortization on December 31, 2025, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was higher than the $314 thousand adjustment that increased interest income in the prior quarter. The average yield (FTE) on total investment securities was 3.12% in the current quarter, compared to 2.99% in the previous quarter.

Compared to the previous quarter, interest income on deposits with banks increased $580 thousand as higher average balances were mostly offset by lower average rates.

Interest expense decreased $4.2 million compared to the previous quarter, mainly due to lower average rates paid on deposits and borrowings, partially offset by higher average deposit balances. Interest expense on borrowings decreased $2.9 million mostly due to lower rates paid on securities sold under repurchase agreement balances. Interest expense on deposits decreased $1.3 million due to lower average rates, partly offset by higher average interest checking and money market deposit account balances. The average rate paid on interest bearing deposits totaled 1.62% in the current quarter compared to 1.71% in the prior quarter. The overall rate paid on interest bearing liabilities was 1.75% in the current quarter and 1.87% in the prior quarter.

Non-Interest Income

In the 4th quarter of 2025, total non-interest income amounted to $166.2 million, an increase of $10.8 million, or 6.9%, over the same period last year and an increase of $4.7 million over the prior quarter. The increase in non-interest income compared to the same period last year was mainly due to higher trust fees and deposit account fees, partly offset by lower bank card fees. The increase in non-interest income compared to the prior quarter was mainly due to higher trust fees.

Total net bank card fees in the current quarter decreased $1.0 million, or 2.2%, compared to the same period last year, and increased $1.2 million over the prior quarter. Net corporate card fees decreased $436 thousand, or 1.7%, compared to the same quarter of last year mainly due to higher rewards expense, partly offset by higher interchange fees. Net merchant fees decreased $150 thousand, or 2.5%, while net debit card fees decreased $141 thousand, or 1.2%. Net credit card fees decreased $319 thousand, or 7.5%, mostly due to higher rewards expense. Total net bank card fees this quarter were comprised of fees on corporate card ($25.8 million), debit card ($11.2 million), merchant ($5.9 million) and credit card ($3.9 million) transactions.

In the current quarter, trust fees increased $5.8 million, or 10.3%, over the same period last year, mostly resulting from higher private client fees. Compared to the same period last year, deposit account fees increased $2.5 million, or 9.7%, mostly due to higher corporate cash management fees.

Other non-interest income increased over the same period last year primarily due to higher tax credit sales fees and cash sweep fees of $822 thousand and $726 thousand, respectively. For the 4th quarter of 2025, non-interest income comprised 37.0% of the Company's total revenue.

Investment Securities Gains and Losses

The Company recorded net securities gains of $2.9 million in the current quarter, compared to $7.9 million in the prior quarter and $977 thousand in the 4th quarter of 2024. Net securities gains in the current quarter mostly resulted from net fair value adjustments of $7.9 million on the Company's portfolio of private equity investments, partly offset by losses of $4.2 million on sales of available for sale debt securities.

Non-Interest Expense

Non-interest expense for the current quarter amounted to $253.0 million, compared to $235.7 million in the same period last year and $244.0 million in the prior quarter. The increase in non-interest expense over the prior quarter and the same period last year was mainly due to higher salaries and benefits expense, data processing and software expense, and professional and other services expense, partly offset by lower deposit insurance expense.

Compared to the 4th quarter of 2024, salaries and employee benefits expense increased $9.1 million, or 5.9%, mostly due to higher full-time salaries of $3.5 million, incentive compensation of $2.7 million and healthcare expense of $1.3 million. Full-time equivalent employees totaled 4,667 and 4,693 at December 31, 2025 and 2024, respectively.

Compared to the same period last year, data processing and software expense increased $2.8 million due to higher costs for service providers and software. Software expense in the current quarter included a $1.6 million write-off of software implementation consulting fees. Professional and other services, which increased $5.6 million compared to the 4th quarter of 2024, included $2.6 million of acquisition related legal and professional services expense. Deposit insurance expense decreased $3.3 million due to a $3.9 million accrual adjustment to the FDIC's special assessment.

Income Taxes

The effective tax rate for the Company was 22.4% in the current quarter, 22.5% in the prior quarter, and 21.2% in the 4th quarter of 2024. The increase in the effective tax rate compared to the 4th quarter of 2024 was mostly due to higher state and local income taxes.

Credit Quality

Net loan charge-offs in the 4th quarter of 2025 amounted to $9.9 million, compared to $10.3 million in the prior quarter, and $10.7 million in the same period last year. The ratio of annualized net loan charge-offs to total average loans was .22% in the current quarter, .23% in the previous quarter, and .25% in the same quarter of last year. Compared to the prior quarter, net loan charge-offs on business loans decreased $604 thousand, while net loan charge-offs on consumer loans increased $188 thousand.

In the 4th quarter of 2025, annualized net loan charge-offs on average consumer credit card loans were 4.55%, compared to 4.59% in both the previous quarter and the same quarter last year. Consumer loan net charge-offs were .45% of average consumer loans in the current quarter, .42% in the prior quarter, and .62% in the same quarter last year.

At December 31, 2025, the allowance for credit losses on loans totaled $179.5 million, or 1.01% of total loans, and increased $3.8 million compared to the prior quarter. The increase was mostly attributed to the business and consumer card loan portfolios. Additionally, the liability for unfunded lending commitments on December 31, 2025 was $17.7 million, an increase of $2.3 million compared to the liability on September 30, 2025.

At December 31, 2025, total non-accrual loans amounted to $15.8 million, a decrease of $503 thousand compared to the previous quarter. At December 31, 2025, the balance of non-accrual loans, which represented .09% of loans outstanding, included business real estate loans of $14.8 million, personal real estate loans of $842 thousand and business loans of $123 thousand. Loans more than 90 days past due and still accruing interest totaled $24.7 million at December 31, 2025.

Other

During the 4th quarter of 2025, the Company distributed a 5% stock dividend on its common stock and paid a cash dividend of $.262 per common share (as restated for the stock dividend), representing a 7% increase over the same period last year. The Company purchased 2.2 million shares of treasury stock during the current quarter at an average price of $53.29.

On January 1, 2026, the Company closed on its previously announced acquisition of FineMark Holdings, Inc. ("FineMark"), Ft. Meyers, Florida, with 13 banking locations in Florida, Arizona, and South Carolina. As of December 31, 2025, FineMark had loans and deposits of $2.7 billion and $3.1 billion, respectively, and $8.7 billion of assets under administration.

Forward Looking Information

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions, and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Additional information about risks and uncertainties is included in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections within the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260121499949/en/

Matt Burkemper, Investor Relations

(314) 746-7485

www.commercebank.com

matthew.burkemper@commercebank.com

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Commerce Bancshares, Inc. Reports Fourth Quarter Earnings Per Share of $1.01

1/22/26 6:00:00 AM ET

$CBSH

Major Banks

Finance

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Fourth Quarter 2025 Financial Highlights:

Net interest income was $283.2 million, a $3.7 million increase over the prior quarter. The net yield on interest earning assets decreased four basis points to 3.60%.
Non-interest income totaled $166.2 million, an increase of $10.8 million, or 6.9%, over the same quarter last year.
Trust fees grew $5.8 million, or 10.3%, over the same period last year, mostly due to higher private client fees.
Non-interest expense totaled $253.0 million, an increase of $17.3 million, or 7.3%, over the same quarter last year.
Average loan balances totaled $17.7 billion, an increase of 1.0% over the prior quarter.
Total average available for sale debt securities increased $311.5 million over the prior quarter to $9.2 billion, at fair value.
Total average deposits increased $816.0 million, or 3.3%, over the prior quarter. The average rate paid on interest bearing deposits decreased nine basis points to 1.62%, compared to the prior quarter.
The ratio of annualized net loan charge-offs to average loans was .22% in the current quarter compared to .23% in the prior quarter.
The allowance for credit losses on loans increased $3.8 million during the fourth quarter of 2025 to $179.5 million, and the ratio of the allowance for credit losses on loans to total loans was 1.01% at December 31, 2025, compared to .99% at September 30, 2025.
Total assets at December 31, 2025 were $32.9 billion, an increase of $626.4 million over the prior quarter.
For the quarter, the return on average assets was 1.73%, the return on average equity was 14.70%, and the efficiency ratio was 56.2%.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES FINANCIAL HIGHLIGHTS

	For the Three Months Ended						For the Year Ended
(Unaudited) (Dollars in thousands, except per share data)	Dec. 31, 2025		Sep. 30, 2025		Dec. 31, 2024		Dec. 31, 2025		Dec. 31, 2024
FINANCIAL SUMMARY
Net interest income	$283,152		$279,457		$266,647		$1,111,858		$1,040,246
Non-interest income	166,208		161,511		155,436		652,281		615,553
Total revenue	449,360		440,968		422,083		1,764,139		1,655,799
Investment securities gains (losses)	2,929		7,885		977		3,660		7,823
Provision for credit losses	15,993		20,061		13,508		56,138		32,903
Non-interest expense	252,995		244,018		235,718		979,826		951,229
Income before taxes	183,301		184,774		173,834		731,835		679,490
Income taxes	40,620		41,152		36,590		161,136		145,089
Non-controlling interest expense (income)	2,019		2,104		1,136		4,448		8,070
Net income attributable to Commerce Bancshares, Inc.	$140,662		$141,518		$136,108		$566,251		$526,331
Earnings per common share:
Net income — basic	$1.01		$1.01		$0.96		$4.04		$3.69
Net income — diluted	$1.01		$1.01		$0.96		$4.04		$3.69
Effective tax rate	22.41	%	22.53	%	21.19	%	22.15	%	21.61	%
Fully-taxable equivalent net interest income	$285,830		$281,770		$268,935		$1,121,444		$1,049,463
Average total interest earning assets ⁽¹⁾	$31,468,907		$30,732,665		$30,628,722		$30,934,106		$30,266,008
Diluted wtd. average shares outstanding	137,599,105		139,086,435		140,370,917		138,900,333		141,422,821
RATIOS
Average loans to deposits ⁽²⁾	69.01	%	70.61	%	68.45	%	69.80	%	69.73	%
Return on total average assets	1.73		1.78		1.73		1.79		1.72
Return on average equity ⁽³⁾	14.70		15.26		15.97		15.76		16.66
Non-interest income to total revenue	36.99		36.63		36.83		36.97		37.18
Efficiency ratio ⁽⁴⁾	56.23		55.26		55.77		55.47		57.37
Net yield on interest earning assets	3.60		3.64		3.49		3.63		3.47
EQUITY SUMMARY
Cash dividends per share	$.262		$.262		$.245		$1.048		$.980
Cash dividends on common stock	$36,236		$36,733		$34,609		$146,596		$139,503
Book value per share ⁽⁵⁾	$27.75		$27.15		$23.66
Market value per share ⁽⁵⁾	$52.34		$56.91		$59.34
High market value per share	$57.36		$63.18		$69.29
Low market value per share	$48.69		$55.16		$51.44
Common shares outstanding ⁽⁵⁾	137,457,138		139,672,183		140,859,781
Tangible common equity to tangible assets ⁽⁶⁾	11.11	%	11.27	%	9.92	%
Tier I leverage ratio	12.65	%	12.95	%	12.26	%
OTHER QTD INFORMATION
Number of bank/ATM locations	236		239		243
Full-time equivalent employees	4,667		4,666		4,693
(1) Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities.
(2) Includes loans held for sale.
(3) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.
(4) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.
(5) As of period end.
(6) The tangible common equity ratio is a non-gaap ratio and is calculated as stockholders' equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).
All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2025.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (In thousands, except per share data)	For the Three Months Ended										For the Year Ended
(Unaudited) (In thousands, except per share data)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024		Dec. 31, 2025		Dec. 31, 2024
Interest income	$373,617		$374,105		$371,636		$364,365		$369,405		$1,483,723		$1,469,557
Interest expense	90,465		94,648		91,489		95,263		102,758		371,865		429,311
Net interest income	283,152		279,457		280,147		269,102		266,647		1,111,858		1,040,246
Provision for credit losses	15,993		20,061		5,597		14,487		13,508		56,138		32,903
Net interest income after credit losses	267,159		259,396		274,550		254,615		253,139		1,055,720		1,007,343
NON-INTEREST INCOME
Trust fees	62,125		58,412		55,571		56,592		56,345		232,700		214,430
Bank card transaction fees	46,761		45,551		46,362		45,593		47,807		184,267		189,784
Deposit account charges and other fees	27,949		27,427		26,248		26,622		25,480		108,246		100,336
Consumer brokerage services	5,185		6,698		5,383		4,785		4,636		22,051		18,141
Capital market fees	4,230		5,138		6,175		5,112		5,129		20,655		19,776
Loan fees and sales	3,594		3,465		3,419		3,404		2,874		13,882		12,890
Other	16,364		14,820		22,455		16,841		13,165		70,480		60,196
Total non-interest income	166,208		161,511		165,613		158,949		155,436		652,281		615,553
INVESTMENT SECURITIES GAINS (LOSSES), NET	2,929		7,885		437		(7,591	)	977		3,660		7,823
NON-INTEREST EXPENSE
Salaries and employee benefits	162,889		157,461		155,025		153,078		153,819		628,453		607,862
Data processing and software	35,273		33,555		32,904		32,238		32,514		133,970		127,390
Net occupancy	13,172		13,474		13,654		14,020		13,694		54,320		53,223
Professional and other services	14,573		11,284		12,973		10,026		8,982		48,856		35,077
Marketing	6,201		6,670		5,974		5,843		5,683		24,688		22,353
Equipment	5,682		5,421		5,157		5,248		5,232		21,508		20,619
Supplies and communication	4,841		4,837		4,962		5,046		4,948		19,686		19,291
Deposit Insurance	(81	)	3,074		3,312		3,744		3,181		10,049		16,482
Other	10,445		8,242		10,476		9,133		7,665		38,296		48,932
Total non-interest expense	252,995		244,018		244,437		238,376		235,718		979,826		951,229
Income before income taxes	183,301		184,774		196,163		167,597		173,834		731,835		679,490
Less income taxes	40,620		41,152		42,400		36,964		36,590		161,136		145,089
Net income	142,681		143,622		153,763		130,633		137,244		570,699		534,401
Less non-controlling interest expense (income)	2,019		2,104		1,284		(959	)	1,136		4,448		8,070
Net income attributable to Commerce Bancshares, Inc.	$140,662		$141,518		$152,479		$131,592		$136,108		$566,251		$526,331
Net income per common share — basic	$1.01		$1.01		$1.09		$0.93		$0.96		$4.04		$3.69
Net income per common share — diluted	$1.01		$1.01		$1.09		$0.93		$0.96		$4.04		$3.69
OTHER INFORMATION
Return on total average assets	1.73	%	1.78	%	1.95	%	1.69	%	1.73	%	1.79	%	1.72	%
Return on average equity ⁽¹⁾	14.70		15.26		17.40		15.82		15.97		15.76		16.66
Efficiency ratio ⁽²⁾	56.23		55.26		54.77		55.61		55.77		55.47		57.37
Effective tax rate	22.41		22.53		21.76		21.93		21.19		22.15		21.61
Net yield on interest earning assets	3.60		3.64		3.70		3.56		3.49		3.63		3.47
Fully-taxable equivalent net interest income	$285,830		$281,770		$282,428		$271,416		$268,935		$1,121,444		$1,049,463
(1) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.
(2) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - PERIOD END

(Unaudited) (In thousands)	Dec. 31, 2025		Sep. 30, 2025		Dec. 31, 2024
ASSETS
Loans
Business	$6,439,380		$6,414,792		$6,053,820
Real estate — construction and land	1,438,012		1,433,652		1,409,901
Real estate — business	3,674,567		3,745,000		3,661,218
Real estate — personal	3,053,435		3,070,980		3,058,195
Consumer	2,196,822		2,171,599		2,073,123
Revolving home equity	375,159		364,241		356,650
Consumer credit card	589,694		575,317		595,930
Overdrafts	4,194		11,186		11,266
Total loans	17,771,263		17,786,767		17,220,103
Allowance for credit losses on loans	(179,468	)	(175,671	)	(162,742	)
Net loans	17,591,795		17,611,096		17,057,361
Loans held for sale	4,329		2,538		3,242
Investment securities:
Available for sale debt securities	9,095,513		8,998,586		9,136,853
Trading debt securities	40,080		56,282		38,034
Equity securities	57,354		53,193		57,442
Other securities	230,459		227,430		230,051
Total investment securities	9,423,406		9,335,491		9,462,380
Federal funds sold	—		—		3,000
Securities purchased under agreements to resell	850,000		850,000		625,000
Interest earning deposits with banks	2,744,393		2,477,668		2,624,553
Cash and due from banks	803,239		476,441		748,357
Premises and equipment — net	485,700		483,000		475,275
Goodwill	146,539		146,539		146,539
Other intangible assets — net	13,311		13,329		13,632
Other assets	852,377		892,586		837,288
Total assets	$32,915,089		$32,288,688		$31,996,627
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing	$8,205,711		$7,489,645		$8,150,669
Savings, interest checking and money market	15,047,406		15,551,799		14,754,571
Certificates of deposit of less than $100,000	1,023,406		1,002,640		996,721
Certificates of deposit of $100,000 and over	1,363,053		1,413,965		1,391,683
Total deposits	25,639,576		25,458,049		25,293,644
Federal funds purchased and securities sold under agreements to repurchase	2,989,641		2,473,065		2,926,758
Other borrowings	12,798		9,270		56
Other liabilities	458,302		555,257		443,694
Total liabilities	29,100,317		28,495,641		28,664,152
Stockholders' equity:
Common stock	692,944		676,054		676,054
Capital surplus	3,522,292		3,390,526		3,395,645
Retained earnings	131,826		360,723		45,494
Treasury stock	(48,001	)	(121,972	)	(48,401	)
Accumulated other comprehensive income (loss)	(507,690	)	(533,666	)	(758,911	)
Total stockholders' equity	3,791,371		3,771,665		3,309,881
Non-controlling interest	23,401		21,382		22,594
Total equity	3,814,772		3,793,047		3,332,475
Total liabilities and equity	$32,915,089		$32,288,688		$31,996,627

COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE BALANCE SHEETS

(Unaudited) (In thousands)	For the Three Months Ended
(Unaudited) (In thousands)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024
ASSETS:
Loans:
Business	$6,317,805		$6,230,019		$6,247,252		$6,106,185		$5,963,217
Real estate — construction and land	1,408,339		1,396,977		1,430,758		1,415,349		1,411,437
Real estate — business	3,730,679		3,715,597		3,692,405		3,667,833		3,636,026
Real estate — personal	3,058,834		3,059,913		3,048,895		3,045,876		3,047,494
Consumer	2,200,500		2,160,637		2,148,666		2,082,360		2,087,237
Revolving home equity	372,194		360,820		362,312		358,684		350,541
Consumer credit card	565,896		563,351		559,858		560,534		568,138
Overdrafts	6,592		7,037		5,663		5,860		5,628
Total loans	17,660,839		17,494,351		17,495,809		17,242,681		17,069,718
Allowance for credit losses on loans	(175,129	)	(164,623	)	(166,391	)	(162,186	)	(160,286	)
Net loans	17,485,710		17,329,728		17,329,418		17,080,495		16,909,432
Loans held for sale	2,532		2,369		1,741		1,584		2,080
Investment securities:
U.S. government and federal agency obligations	3,197,720		2,693,327		2,623,896		2,586,944		2,459,485
Government-sponsored enterprise obligations	54,955		55,014		55,038		55,330		55,428
State and municipal obligations	724,737		756,137		780,063		804,363		831,695
Mortgage-backed securities	4,316,799		4,461,056		4,641,295		4,788,102		4,905,187
Asset-backed securities	1,336,859		1,466,770		1,585,364		1,655,701		1,570,878
Other debt securities	196,633		204,281		237,385		258,136		221,076
Unrealized gain (loss) on debt securities	(645,595	)	(766,025	)	(838,028	)	(935,054	)	(896,346	)
Total available for sale debt securities	9,182,108		8,870,560		9,085,013		9,213,522		9,147,403
Trading debt securities	61,160		56,032		51,131		38,298		56,440
Equity securities	52,387		50,823		54,472		57,028		56,758
Other securities	227,395		220,041		216,560		233,461		222,529
Total investment securities	9,523,050		9,197,456		9,407,176		9,542,309		9,483,130
Federal funds sold	—		23		158		2,089		826
Securities purchased under agreements to resell	850,000		850,000		850,000		788,889		566,307
Interest earning deposits with banks	2,786,891		2,422,441		2,036,803		2,388,504		2,610,315
Other assets	1,700,147		1,709,247		1,671,763		1,698,296		1,701,822
Total assets	$32,348,330		$31,511,264		$31,297,059		$31,502,166		$31,273,912

LIABILITIES AND EQUITY:
Non-interest bearing deposits	$7,592,431		$7,345,156		$7,356,882		$7,298,686		$7,464,255
Savings	1,261,285		1,283,671		1,303,391		1,294,174		1,281,291
Interest checking and money market	14,335,613		13,740,770		13,901,634		13,906,827		13,679,666
Certificates of deposit of less than $100,000	1,015,617		991,877		984,845		991,826		1,061,783
Certificates of deposit of $100,000 and over	1,389,149		1,416,572		1,371,428		1,363,655		1,451,851
Total deposits	25,594,095		24,778,046		24,918,180		24,855,168		24,938,846
Borrowings:
Federal funds purchased	130,487		130,622		129,891		128,340		121,781
Securities sold under agreements to repurchase	2,429,746		2,519,660		2,371,031		2,723,227		2,445,956
Other borrowings	1,230		1,860		2,748		616		1,067
Total borrowings	2,561,463		2,652,142		2,503,670		2,852,183		2,568,804
Other liabilities	395,336		402,265		360,204		421,370		375,463
Total liabilities	28,550,894		27,832,453		27,782,054		28,128,721		27,883,113
Equity	3,797,436		3,678,811		3,515,005		3,373,445		3,390,799
Total liabilities and equity	$32,348,330		$31,511,264		$31,297,059		$31,502,166		$31,273,912

COMMERCE BANCSHARES, INC. and SUBSIDIARIES AVERAGE RATES

(Unaudited)	For the Three Months Ended
(Unaudited)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024
ASSETS:
Loans:
Business⁽¹⁾	5.48	%	5.72	%	5.72	%	5.75	%	5.86	%
Real estate — construction and land	7.05		7.37		7.39		7.30		7.75
Real estate — business	5.76		5.92		5.92		5.88		6.01
Real estate — personal	4.38		4.34		4.30		4.28		4.17
Consumer	6.23		6.42		6.43		6.52		6.52
Revolving home equity	7.25		7.94		7.41		7.26		7.28
Consumer credit card	12.81		13.21		13.18		13.49		13.60
Overdrafts	—		—		—		—		—
Total loans	5.84		6.02		6.01		6.02		6.11
Loans held for sale	5.01		6.03		9.22		5.89		7.65
Investment securities:
U.S. government and federal agency obligations	4.07		4.06		4.28		4.09		3.86
Government-sponsored enterprise obligations	2.36		2.35		2.38		2.40		2.36
State and municipal obligations⁽¹⁾	2.06		2.05		2.05		2.05		2.01
Mortgage-backed securities	2.05		2.01		2.08		2.08		2.17
Asset-backed securities	3.78		3.69		3.73		3.46		2.99
Other debt securities	2.97		2.97		2.94		2.69		2.11
Total available for sale debt securities	2.96		2.86		2.95		2.83		2.70
Trading debt securities⁽¹⁾	4.61		4.67		4.63		4.97		4.26
Equity securities ⁽¹⁾	6.35		6.09		6.26		8.02		6.58
Other securities ⁽¹⁾	9.08		7.29		11.63		7.85		5.75
Total investment securities	3.12		2.99		3.16		2.98		2.80
Federal funds sold	—		—		5.08		5.63		5.78
Securities purchased under agreements to resell	4.00		4.00		4.02		3.81		3.57
Interest earning deposits with banks	3.95		4.45		4.46		4.46		4.78
Total interest earning assets	4.74		4.86		4.90		4.81		4.83

LIABILITIES AND EQUITY:
Interest bearing deposits:
Savings	.05		.05		.05		.05		.05
Interest checking and money market	1.45		1.54		1.49		1.52		1.63
Certificates of deposit of less than $100,000	3.25		3.33		3.44		3.65		3.91
Certificates of deposit of $100,000 and over	3.60		3.71		3.78		3.96		4.24
Total interest bearing deposits	1.62		1.71		1.67		1.72		1.87
Borrowings:
Federal funds purchased	3.92		4.34		4.37		4.37		4.71
Securities sold under agreements to repurchase	2.54		2.88		2.85		2.86		3.11
Other borrowings	.65		1.71		3.79		.66		3.36
Total borrowings	2.61		2.95		2.93		2.93		3.18
Total interest bearing liabilities	1.75	%	1.87	%	1.83	%	1.89	%	2.04	%

Net yield on interest earning assets	3.60	%	3.64	%	3.70	%	3.56	%	3.49	%
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES CREDIT QUALITY

	For the Three Months Ended										For the Year Ended
(Unaudited) (In thousands, except ratios)	Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025		Mar. 31, 2025		Dec. 31, 2024		Dec. 31, 2025		Dec. 31, 2024
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period	$175,671		$165,260		$167,031		$162,742		$160,839		$162,742		$162,395
Provision for credit losses on loans	13,660		20,739		7,919		15,095		12,557		57,413		39,214
Net charge-offs (recoveries):
Commercial portfolio:
Business	222		826		432		46		335		1,526		1,094
Real estate — construction and land	16		—		24		—		—		40		—
Real estate — business	(24	)	(23	)	(425	)	377		50		(95	)	(106	)
	214		803		31		423		385		1,471		988
Personal banking portfolio:
Consumer credit card	6,488		6,515		7,085		6,967		6,557		27,055		26,011
Consumer	2,498		2,310		2,168		2,852		3,237		9,828		9,783
Overdraft	485		432		360		495		470		1,772		2,012
Real estate — personal	180		269		35		72		8		556		239
Revolving home equity	(2	)	(1	)	11		(3	)	(3	)	5		(166	)
	9,649		9,525		9,659		10,383		10,269		39,216		37,879
Total net loan charge-offs	9,863		10,328		9,690		10,806		10,654		40,687		38,867
Balance at end of period	$179,468		$175,671		$165,260		$167,031		$162,742		$179,468		$162,742
LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$17,660		$15,327		$16,005		$18,327		$18,935
NET CHARGE-OFF RATIOS ⁽¹⁾
Commercial portfolio:
Business	.01	%	.05	%	.03	%	—	%	.02	%	.02	%	.02	%
Real estate — construction and land	—		—		.01		—		—		—		—
Real estate — business	—		—		(.05	)	.04		.01		—		—
	.01		.03		—		.02		.01		.01		.01
Personal banking portfolio:
Consumer credit card	4.55		4.59		5.08		5.04		4.59		4.81		4.64
Consumer	.45		.42		.40		.56		.62		.46		.46
Overdraft	29.19		24.36		25.50		34.26		33.22		28.16		34.06
Real estate — personal	.02		.03		—		.01		—		.02		.01
Revolving home equity	—		—		.01		—		—		—		(.05	)
	.62		.61		.63		.70		.67		.64		.63
Total	.22	%	.23	%	.22	%	.25	%	.25	%	.23	%	.23	%
CREDIT QUALITY RATIOS
Non-accrual loans to total loans	.09	%	.09	%	.11	%	.13	%	.11	%
Allowance for credit losses on loans to total loans	1.01		.99		.94		.96		.95
NON-ACCRUAL AND PAST DUE LOANS
Non-accrual loans:
Business	$123		$255		$410		$1,112		$101
Real estate — construction and land	—		191		426		220		220
Real estate — business	14,785		14,940		15,109		18,305		14,954
Real estate — personal	842		867		948		989		1,026
Revolving home equity	—		—		1,977		1,977		1,977
Total	15,750		16,253		18,870		22,603		18,278
Loans past due 90 days and still accruing interest	$24,659		$21,536		$25,303		$19,417		$24,516
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).

COMMERCE BANCSHARES, INC.

Management Discussion of Fourth Quarter Results

December 31, 2025

Balance Sheet Review

Net Interest Income

Compared to the previous quarter, interest income on deposits with banks increased $580 thousand as higher average balances were mostly offset by lower average rates.

Non-Interest Income

Investment Securities Gains and Losses

Non-Interest Expense

Income Taxes

Credit Quality

Other

Forward Looking Information

View source version on businesswire.com: https://www.businesswire.com/news/home/20260121499949/en/

Matt Burkemper, Investor Relations

(314) 746-7485

www.commercebank.com

matthew.burkemper@commercebank.com

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Recent Analyst Ratings for

$CBSH

Date	Price Target	Rating	Analyst
10/6/2025	$70.00	Outperform	Hovde Group
9/25/2025	$63.00	Hold	TD Cowen
4/7/2025	$58.00	Underweight → Equal-Weight	Morgan Stanley
12/19/2024		Outperform → Mkt Perform	Raymond James
9/30/2024	$66.00 → $64.00	Overweight → Equal-Weight	Morgan Stanley
4/17/2024	$61.00	Mkt Perform → Outperform	Raymond James
1/11/2024	$55.00	Neutral	BofA Securities
9/27/2023	$48.00 → $49.00	Underweight → Equal-Weight	Morgan Stanley

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Commerce Bancshares Inc. filed SEC Form 8-K: Leadership Update

SEC Form 144 filed by Commerce Bancshares Inc.

Commerce Bancshares Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

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Hovde Group initiated coverage on Commerce Bancshares with a new price target

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Insider Trading

President and CEO Kemper John W sold $1,263,300 worth of shares (23,397 units at $53.99), decreasing direct ownership by 10% to 206,528 units (SEC Form 4)

Senior Vice President Rowe Margaret M was granted 1,866 shares, increasing direct ownership by 36% to 7,085 units (SEC Form 4)

Senior Vice President Roller David L. was granted 2,736 shares and sold $61,780 worth of shares (1,134 units at $54.48), increasing direct ownership by 6% to 30,535 units (SEC Form 4)

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Press Releases

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