EX-99.1 2 cbsh9302025ex991.htm EX-99.1 Document
Exhibit 99.1
Exhibit 99.1
commercebancshares914a01a05.jpg
CBSH
                   1000 Walnut Street / Suite 700 / Kansas City, Missouri 64106 / 816.234.2000
FOR IMMEDIATE RELEASE:
Thursday, October 16, 2025

COMMERCE BANCSHARES, INC. REPORTS
THIRD QUARTER EARNINGS PER SHARE OF $1.06

Commerce Bancshares, Inc. announced earnings of $1.06 per share for the three months ended September 30, 2025, compared to $1.01 per share in the same quarter last year and $1.14 per share in the second quarter of 2025. Net income for the third quarter of 2025 amounted to $141.5 million, compared to $138.0 million in the third quarter of 2024 and $152.5 million in the prior quarter.

For the nine months ended September 30, 2025, earnings per share totaled $3.18, compared to $2.86 for the first nine months of 2024. Net income amounted to $425.6 million for the nine months ended September 30, 2025, compared to $390.2 million in the comparable period last year. For the year to date, the return on average assets was 1.81%, and the return on average equity was 16.15%.

In making this announcement, John Kemper, Chief Executive Officer, said, “Commerce delivered another strong quarter, underscoring the resilience of our diversified operating model and the dedication of our talented team. Our third quarter results reflect steady loan balances, robust fee income, and disciplined expense management, all of which contributed to another period of high profitability.

“Our return on average assets remained solid at 1.78%, and our return on average equity was 15.26%. We maintained excellent credit quality, with non-accrual loans at just .09% of total loans, and added a modest reserve to the allowance for credit losses. Our capital and liquidity positions remain strong, supporting our ability to serve customers and invest in future growth.

“Net interest income was $279.5 million, reflecting the continued benefits of our strong balance sheet, even as the interest rate environment remains dynamic. Non-interest income was $161.5 million, led by growth in trust and deposit fees, and comprised 36.6% of total revenue.”

Mr. Kemper continued, “We look forward to welcoming FineMark's team, clients, and shareholders to Commerce on January 1, 2026, our expected close date, which will mark a strategic milestone after years of relationship building and months of integration planning by our dedicated teams.

“As we continue to build on our momentum, our franchise is well-positioned to execute on our long-term strategies, deliver value to our shareholders, and support our customers and communities.”


Third Quarter 2025 Financial Highlights:

•Net interest income was $279.5 million, a $690 thousand decrease compared to the prior quarter. The net yield on interest earning assets decreased six basis points to 3.64%.
1
Exhibit 99.1

•Non-interest income totaled $161.5 million, an increase of $2.5 million, or 1.6%, over the same quarter last year.

•Trust fees grew $3.7 million, or 6.8%, compared to the same period last year, mostly due to higher private client fees.

•Non-interest expense totaled $244.0 million, an increase of $6.4 million, or 2.7%, over the same quarter last year.

•Average loan balances totaled $17.5 billion, flat compared to the prior quarter.

•Total average available for sale debt securities decreased $214.5 million compared to the prior quarter to $8.9 billion, at fair value.

•Total average deposits decreased $140.1 million, or .6%, compared to the prior quarter. The average rate paid on interest bearing deposits increased four basis points to 1.71%, compared to the prior quarter.

•The ratio of annualized net loan charge-offs to average loans was .23% in the current quarter compared to .22% in the prior quarter.

•The allowance for credit losses on loans increased $10.4 million during the third quarter of 2025 to $175.7 million, and the ratio of the allowance for credit losses on loans to total loans was .99% at September 30, 2025, compared to .94% at June 30, 2025.

•Total assets on September 30, 2025 were $32.3 billion, flat compared to the prior quarter.

•For the quarter, the return on average assets was 1.78%, the return on average equity was 15.26%, and the efficiency ratio was 55.3%.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, investment management and securities brokerage. One of its subsidiaries, Commerce Bank, leverages 160 years of proven strength and experience to help individuals and businesses solve financial challenges. In addition to offering payment solutions across the U.S., Commerce Bank currently operates full-service banking facilities across the Midwest including the St. Louis and Kansas City metropolitan areas, Springfield, Central Missouri, Central Illinois, Wichita, Tulsa, Oklahoma City, and Denver. Beyond the Midwest, Commerce also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids and wealth offices in Dallas, Houston, and Naples. Commerce delivers high-touch service and sophisticated financial solutions at regional branches, commercial and wealth offices, ATMs, online, mobile and through a 24/7 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.
* * * * * * * * * * * * * * *
For additional information, contact
Matt Burkemper, Investor Relations
(314) 746-7485
www.commercebank.com
matthew.burkemper@commercebank.com


2
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS

 For the Three Months EndedFor the Nine Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		Sep. 30, 2025Jun. 30, 2025Sep. 30, 2024Sep. 30, 2025Sep. 30, 2024
FINANCIAL SUMMARY
Net interest income$279,457 $280,147 $262,351 $828,706 $773,599 
Non-interest income161,511 165,613 159,025 486,073 460,117 
Total revenue440,968 445,760 421,376 1,314,779 1,233,716 
Investment securities gains (losses)7,885 437 3,872 731 6,846 
Provision for credit losses20,061 5,597 9,140 40,145 19,395 
Non-interest expense244,018 244,437 237,600 726,831 715,511 
Income before taxes184,774 196,163 178,508 548,534 505,656 
Income taxes41,152 42,400 38,245 120,516 108,499 
Non-controlling interest expense (income)2,104 1,284 2,256 2,429 6,934 
Net income attributable to Commerce Bancshares, Inc.$141,518 $152,479 $138,007 $425,589 $390,223 
Earnings per common share:  
Net income — basic$1.06 $1.14 $1.02 $3.18 $2.87 
Net income — diluted$1.06 $1.14 $1.01 $3.18 $2.86 
Effective tax rate22.53%21.76%21.70%22.07%21.76%
Fully-taxable equivalent net interest income$281,770 $282,428 $264,638 $835,614 $780,528 
Average total interest earning assets (1)
$30,732,665 $30,629,715 $30,051,845 $30,753,879 $30,144,221 
Diluted wtd. average shares outstanding132,463,271 132,582,673 134,394,825 132,703,659 135,024,776 
RATIOS  
Average loans to deposits (2)
70.61%70.22%69.93%70.08%70.17%
Return on total average assets1.78 1.95 1.80 1.81 1.71 
Return on average equity (3)
15.26 17.40 16.81 16.15 16.92 
Non-interest income to total revenue36.63 37.15 37.74 36.97 37.30 
Efficiency ratio (4)
55.26 54.77 56.31 55.21 57.92 
Net yield on interest earning assets3.64 3.70 3.50 3.63 3.46 
EQUITY SUMMARY  
Cash dividends per share$.275 $.275 $.257 $.825 $.771 
Cash dividends on common stock$36,733 $36,761 $34,794 $110,360 $104,894 
Book value per share (5)
$28.51 $27.43 $25.62 
Market value per share (5)
$59.76 $62.17 $56.57 
High market value per share$66.34 $66.14 $62.72 
Low market value per share$57.92 $52.69 $52.27 
Common shares outstanding (5)
133,021,127 133,419,701 134,797,835 
Tangible common equity to tangible assets (6)
11.27%10.86%10.47%
Tier I leverage ratio12.95%12.75%12.31%
OTHER QTD INFORMATION 
Number of bank/ATM locations239 239 244 
Full-time equivalent employees4,666 4,658 4,711 
(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 2024.
3
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

 (Unaudited)
(In thousands, except per share data)		For the Three Months EndedFor the Nine Months Ended
Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024Sep. 30, 2024Sep. 30, 2025Sep. 30, 2024
Interest income$374,105 $371,636 $364,365 $369,405 $372,068 $1,110,106 $1,100,152 
Interest expense94,648 91,489 95,263 102,758 109,717 281,400 326,553 
Net interest income279,457 280,147 269,102 266,647 262,351 828,706 773,599 
Provision for credit losses20,061 5,597 14,487 13,508 9,140 40,145 19,395 
Net interest income after credit losses259,396 274,550 254,615 253,139 253,211 788,561 754,204 
NON-INTEREST INCOME   
Trust fees58,412 55,571 56,592 56,345 54,689 170,575 158,085 
Bank card transaction fees45,551 46,362 45,593 47,807 47,570 137,506 141,977 
Deposit account charges and other fees27,427 26,248 26,622 25,480 25,380 80,297 74,856 
Capital market fees5,138 6,175 5,112 5,129 5,995 16,425 14,647 
Consumer brokerage services6,698 5,383 4,785 4,636 4,619 16,866 13,505 
Loan fees and sales3,465 3,419 3,404 2,874 3,444 10,288 10,016 
Other14,820 22,455 16,841 13,165 17,328 54,116 47,031 
Total non-interest income161,511 165,613 158,949 155,436 159,025 486,073 460,117 
INVESTMENT SECURITIES GAINS (LOSSES), NET7,885 437 (7,591)977 3,872 731 6,846 
NON-INTEREST EXPENSE   
Salaries and employee benefits157,461 155,025 153,078 153,819 153,122 465,564 454,043 
Data processing and software33,555 32,904 32,238 32,514 32,194 98,697 94,876 
Net occupancy13,474 13,654 14,020 13,694 13,411 41,148 39,529 
Professional and other services11,284 12,973 10,026 8,982 8,830 34,283 26,095 
Marketing6,670 5,974 5,843 5,683 7,278 18,487 16,670 
Equipment5,421 5,157 5,248 5,232 5,286 15,826 15,387 
Supplies and communication4,837 4,962 5,046 4,948 4,963 14,845 14,343 
Deposit Insurance3,074 3,312 3,744 3,181 2,930 10,130 13,301 
Other8,242 10,476 9,133 7,665 9,586 27,851 41,267 
Total non-interest expense244,018 244,437 238,376 235,718 237,600 726,831 715,511 
Income before income taxes184,774 196,163 167,597 173,834 178,508 548,534 505,656 
Less income taxes41,152 42,400 36,964 36,590 38,245 120,516 108,499 
Net income143,622 153,763 130,633 137,244 140,263 428,018 397,157 
Less non-controlling interest expense (income)2,104 1,284 (959)1,136 2,256 2,429 6,934 
Net income attributable to Commerce Bancshares, Inc.$141,518 $152,479 $131,592 $136,108 $138,007 $425,589 $390,223 
Net income per common share — basic$1.06 $1.14 $0.98 $1.01 $1.02 $3.18 $2.87 
Net income per common share — diluted$1.06 $1.14 $0.98 $1.01 $1.01 $3.18 $2.86 
OTHER INFORMATION
Return on total average assets1.78%1.95%1.69%1.73%1.80%1.81%1.71%
Return on average equity (1)
15.2617.4015.8215.9716.8116.1516.92
Efficiency ratio (2)
55.2654.7755.6155.7756.3155.2157.92
Effective tax rate22.5321.7621.9321.1921.7022.0721.76
Net yield on interest earning assets3.643.703.563.493.503.633.46
Fully-taxable equivalent net interest income$281,770 $282,428 $271,416 $268,935 $264,638 $835,614 $780,528 
(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.
4
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - PERIOD END

(Unaudited)
(In thousands)		Sep. 30, 2025Jun. 30, 2025Sep. 30, 2024
ASSETS   
Loans
     Business $6,414,792 $6,328,684 $6,048,328 
     Real estate — construction and land1,433,652 1,405,398 1,381,607 
     Real estate — business3,745,000 3,757,778 3,586,999 
     Real estate — personal3,070,980 3,058,845 3,043,391 
     Consumer2,171,599 2,157,867 2,108,281 
     Revolving home equity364,241 364,429 342,376 
     Consumer credit card575,317 576,151 574,746 
     Overdrafts11,186 16,316 4,272 
Total loans17,786,767 17,665,468 17,090,000 
Allowance for credit losses on loans(175,671)(165,260)(160,839)
Net loans17,611,096 17,500,208 16,929,161 
Loans held for sale2,538 3,592 1,707 
Investment securities:
Available for sale debt securities8,998,586 8,915,779 9,167,681 
Trading debt securities56,282 46,630 42,645 
Equity securities53,193 54,511 57,115 
Other securities227,430 219,906 216,543 
Total investment securities9,335,491 9,236,826 9,483,984 
Federal funds sold— — 10 
Securities purchased under agreements to resell850,000 850,000 475,000 
Interest earning deposits with banks2,477,668 2,624,264 2,642,048 
Cash and due from banks476,441 522,049 507,941 
Premises and equipment — net483,000 477,401 469,986 
Goodwill146,539 146,539 146,539 
Other intangible assets — net13,329 13,333 13,722 
Other assets892,586 910,035 823,494 
Total assets$32,288,688 $32,284,247 $31,493,592 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Deposits:   
Non-interest bearing$7,489,645 $7,393,559 $7,396,153 
Savings, interest checking and money market15,551,799 15,727,549 15,216,557 
Certificates of deposit of less than $100,0001,002,640 986,014 1,113,962 
Certificates of deposit of $100,000 and over1,413,965 1,386,906 1,511,120 
Total deposits25,458,049 25,494,028 25,237,792 
Federal funds purchased and securities sold under agreements to repurchase2,473,065 2,596,461 2,182,229 
Other borrowings9,270 15,049 10,201 
Other liabilities555,257 518,595 609,831 
Total liabilities28,495,641 28,624,133 28,040,053 
Stockholders’ equity:   
Common stock676,054 676,054 655,322 
Capital surplus3,390,526 3,386,218 3,154,300 
Retained earnings360,723 255,938 338,512 
Treasury stock(121,972)(96,589)(139,149)
Accumulated other comprehensive income (loss)(533,666)(581,049)(576,904)
Total stockholders’ equity3,771,665 3,640,572 3,432,081 
Non-controlling interest21,382 19,542 21,458 
Total equity3,793,047 3,660,114 3,453,539 
Total liabilities and equity$32,288,688 $32,284,247 $31,493,592 

5
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCE SHEETS

(Unaudited)
(In thousands)		For the Three Months Ended
Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024Sep. 30, 2024
ASSETS:
Loans:
Business$6,230,019 $6,247,252 $6,106,185 $5,963,217 $5,966,797 
Real estate — construction and land1,396,977 1,430,758 1,415,349 1,411,437 1,400,563 
Real estate — business3,715,597 3,692,405 3,667,833 3,636,026 3,580,772 
Real estate — personal3,059,913 3,048,895 3,045,876 3,047,494 3,047,563 
Consumer2,160,637 2,148,666 2,082,360 2,087,237 2,129,483 
Revolving home equity360,820 362,312 358,684 350,541 335,817 
Consumer credit card563,351 559,858 560,534 568,138 559,410 
Overdrafts7,037 5,663 5,860 5,628 5,460 
Total loans
17,494,351 17,495,809 17,242,681 17,069,718 17,025,865 
Allowance for credit losses on loans(164,623)(166,391)(162,186)(160,286)(158,003)
Net loans17,329,728 17,329,418 17,080,495 16,909,432 16,867,862 
Loans held for sale2,369 1,741 1,584 2,080 2,448 
Investment securities:
U.S. government and federal agency obligations2,693,327 2,623,896 2,586,944 2,459,485 1,888,985 
Government-sponsored enterprise obligations55,014 55,038 55,330 55,428 55,583 
State and municipal obligations756,137 780,063 804,363 831,695 856,620 
Mortgage-backed securities4,461,056 4,641,295 4,788,102 4,905,187 5,082,091 
Asset-backed securities1,466,770 1,585,364 1,655,701 1,570,878 1,525,593 
Other debt securities
204,281 237,385 258,136 221,076 224,528 
Unrealized gain (loss) on debt securities(766,025)(838,028)(935,054)(896,346)(961,695)
Total available for sale debt securities8,870,560 9,085,013 9,213,522 9,147,403 8,671,705 
Trading debt securities
56,032 51,131 38,298 56,440 47,440 
Equity securities50,823 54,472 57,028 56,758 85,118 
Other securities 220,041 216,560 233,461 222,529 217,377 
Total investment securities9,197,456 9,407,176 9,542,309 9,483,130 9,021,640 
Federal funds sold23 158 2,089 826 12 
Securities purchased under agreements to resell850,000 850,000 788,889 566,307 474,997 
Interest earning deposits with banks2,422,441 2,036,803 2,388,504 2,610,315 2,565,188 
Other assets1,709,247 1,671,763 1,698,296 1,701,822 1,648,321 
Total assets$31,511,264 $31,297,059 $31,502,166 $31,273,912 $30,580,468 
LIABILITIES AND EQUITY:
Non-interest bearing deposits$7,345,156 $7,356,882 $7,298,686 $7,464,255 $7,284,834 
Savings1,283,671 1,303,391 1,294,174 1,281,291 1,303,675 
Interest checking and money market13,740,770 13,901,634 13,906,827 13,679,666 13,242,398 
Certificates of deposit of less than $100,000991,877 984,845 991,826 1,061,783 1,055,683 
Certificates of deposit of $100,000 and over1,416,572 1,371,428 1,363,655 1,451,851 1,464,143 
Total deposits24,778,046 24,918,180 24,855,168 24,938,846 24,350,733 
Borrowings:
Federal funds purchased130,622 129,891 128,340 121,781 206,644 
Securities sold under agreements to repurchase2,519,660 2,371,031 2,723,227 2,445,956 2,351,870 
Other borrowings1,860 2,748 616 1,067 496 
Total borrowings2,652,142 2,503,670 2,852,183 2,568,804 2,559,010 
Other liabilities402,265 360,204 421,370 375,463 405,490 
Total liabilities27,832,453 27,782,054 28,128,721 27,883,113 27,315,233 
Equity3,678,811 3,515,005 3,373,445 3,390,799 3,265,235 
Total liabilities and equity$31,511,264 $31,297,059 $31,502,166 $31,273,912 $30,580,468 

6
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE RATES

(Unaudited)For the Three Months Ended
Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024Sep. 30, 2024
ASSETS: 
Loans: 
Business (1)
5.72%5.72%5.75%5.86%6.17%
Real estate — construction and land7.37 7.39 7.30 7.75 8.44 
Real estate — business5.92 5.92 5.88 6.01 6.28 
Real estate — personal4.34 4.30 4.28 4.17 4.10 
Consumer6.42 6.43 6.52 6.52 6.64 
Revolving home equity7.94 7.41 7.26 7.28 7.69 
Consumer credit card13.21 13.18 13.49 13.60 14.01 
Overdrafts— — — — — 
Total loans6.02 6.01 6.02 6.11 6.35 
Loans held for sale6.03 9.22 5.89 7.65 6.34 
Investment securities: 
U.S. government and federal agency obligations4.06 4.28 4.09 3.86 3.68 
Government-sponsored enterprise obligations2.35 2.38 2.40 2.36 2.37 
State and municipal obligations (1)
2.05 2.05 2.05 2.01 2.00 
Mortgage-backed securities2.01 2.08 2.08 2.17 1.95 
Asset-backed securities3.69 3.73 3.46 2.99 2.66 
Other debt securities2.97 2.94 2.69 2.11 2.07 
Total available for sale debt securities2.86 2.95 2.83 2.70 2.41 
Trading debt securities (1)
4.67 4.63 4.97 4.26 4.52 
Equity securities (1)
6.09 6.26 8.02 6.58 4.44 
Other securities (1)
7.29 11.63 7.85 5.75 6.09 
Total investment securities2.99 3.16 2.98 2.80 2.52 
Federal funds sold— 5.08 5.63 5.78 — 
Securities purchased under agreements to resell4.00 4.02 3.81 3.57 3.53 
Interest earning deposits with banks4.45 4.46 4.46 4.78 5.43 
Total interest earning assets4.86 4.90 4.81 4.83 4.96 
LIABILITIES AND EQUITY: 
Interest bearing deposits: 
Savings.05 .05 .05 .05 .07 
Interest checking and money market1.54 1.49 1.52 1.63 1.74 
Certificates of deposit of less than $100,0003.33 3.44 3.65 3.91 4.17 
Certificates of deposit of $100,000 and over3.71 3.78 3.96 4.24 4.51 
Total interest bearing deposits1.71 1.67 1.72 1.87 2.00 
Borrowings: 
Federal funds purchased4.34 4.37 4.37 4.71 5.38 
Securities sold under agreements to repurchase2.88 2.85 2.86 3.11 3.56 
Other borrowings1.71 3.79 .66 3.36 4.81 
Total borrowings2.95 2.93 2.93 3.18 3.71 
Total interest bearing liabilities1.87%1.83%1.89%2.04%2.22%
Net yield on interest earning assets3.64%3.70%3.56%3.49%3.50%
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.







7
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CREDIT QUALITY

 For the Three Months EndedFor the Nine Months Ended
(Unaudited)
(In thousands, except ratios)		Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024Sep. 30, 2024Sep. 30, 2025Sep. 30, 2024
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$165,260 $167,031 $162,742 $160,839 $158,557 $162,742 $162,395 
     Provision for credit losses on loans20,739 7,919 15,095 12,557 11,861 43,753 26,657 
     Net charge-offs (recoveries):
        Commercial portfolio:
     Business826 432 46 335 114 1,304 759 
     Real estate — construction and land — 24 — — — 24 — 
     Real estate — business(23)(425)377 50 (7)(71)(156)
803 31 423 385 107 1,257 603 
        Personal banking portfolio:
     Consumer credit card6,515 7,085 6,967 6,557 6,273 20,567 19,454 
     Consumer2,310 2,168 2,852 3,237 2,759 7,330 6,546 
     Overdraft432 360 495 470 464 1,287 1,542 
     Real estate — personal269 35 72 8 128 376 231 
     Revolving home equity(1)11 (3)(3)(152)7 (163)
9,525 9,659 10,383 10,269 9,472 29,567 27,610 
     Total net loan charge-offs 10,328 9,690 10,806 10,654 9,579 30,824 28,213 
Balance at end of period$175,671 $165,260 $167,031 $162,742 $160,839 $175,671 $160,839 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS$15,327 $16,005 $18,327 $18,935 $17,984 
NET CHARGE-OFF RATIOS (1)
Commercial portfolio:
     Business.05%.03%—%.02%.01%.03%.02%
     Real estate — construction and land— .01 — — — — — 
     Real estate — business— (.05).04 .01 — — (.01)
.03 — .02 .01 — .01 .01 
Personal banking portfolio:
     Consumer credit card4.59 5.08 5.04 4.59 4.46 4.90 4.65 
     Consumer.42 .40 .56 .62 .52 .46 .41 
     Overdraft24.36 25.50 34.26 33.22 33.81 27.79 34.32 
     Real estate — personal.03 — .01 — .02 .02 .01 
     Revolving home equity— .01 — — (.18)— (.07)
.61 .63 .70 .67 .62 .65 .61 
Total.23%.22%.25%.25%.22%.24%.22%
CREDIT QUALITY RATIOS
Non-accrual loans to total loans.09%.11%.13%.11%.11%
Allowance for credit losses on loans to total loans.99 .94 .96 .95 .94 
NON-ACCRUAL AND PAST DUE LOANS
  Non-accrual loans:
     Business$255 $410 $1,112 $101 $354 
     Real estate — construction and land191 426 220 220 — 
     Real estate — business14,940 15,109 18,305 14,954 14,944 
     Real estate — personal867 948 989 1,026 1,144 
     Revolving home equity— 1,977 1,977 1,977 1,977 
   Total 16,253 18,870 22,603 18,278 18,419 
Loans past due 90 days and still accruing interest$21,536 $25,303 $19,417 $24,516 $21,986 
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).
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Exhibit 99.1                                        
COMMERCE BANCSHARES, INC.
Management Discussion of Third Quarter Results
September 30, 2025
For the quarter ended September 30, 2025, net income amounted to $141.5 million, compared to $152.5 million in the previous quarter and $138.0 million in the same quarter last year. The decrease in net income compared to the previous quarter was primarily the result of an increase in the provision for credit losses and lower non-interest income, partly offset by higher gains on investment securities. The net yield on interest earning assets decreased six basis points from the previous quarter. Average loans were flat, while average available for sale investment securities, at fair value, and deposits decreased $214.5 million and $140.1 million, respectively, compared to the prior quarter. For the quarter, the return on average assets was 1.78%, the return on average equity was 15.26%, and the efficiency ratio was 55.3%.

Balance Sheet Review
During the 3rd quarter of 2025, average loans totaled $17.5 billion, flat compared to the prior quarter, and an increase of $468.5 million over the same quarter last year. Compared to the previous quarter, average balances of business real estate loans grew $23.2 million, while construction and business loans declined $33.8 million and $17.2 million, respectively. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $30.6 million, compared to $19.7 million in the prior quarter.

Total average available for sale debt securities decreased $214.5 million compared to the previous quarter to $8.9 billion, at fair value. The decrease in available for sale debt securities was mainly the result of lower average balances of mortgage-backed and asset-backed securities. During the 3rd quarter of 2025, the unrealized loss on available for sale debt securities decreased $75.9 million to $688.5 million, at period end. Also, during the 3rd quarter of 2025, purchases of available for sale debt securities totaled $459.3 million with a weighted average yield of approximately 4.15%, and maturities and pay downs of available for sale debt securities were $456.7 million. On September 30, 2025, the duration of the available for sale investment portfolio was 4.4 years, and maturities and pay downs of approximately $1.3 billion are expected to occur during the next 12 months.

Total average deposits decreased $140.1 million this quarter compared to the previous quarter. The decrease in deposits mostly resulted from lower average interest checking and money market balances of $160.9 million. Compared to the previous quarter, total average wealth and consumer deposits declined $132.4 million and $111.1 million, respectively, while average commercial deposits grew $118.1 million. The average loans to deposits ratio was 70.6% in the current quarter and 70.2% in the prior quarter. The Company’s average borrowings, which included average customer repurchase agreements of $2.5 billion, increased $148.5 million to $2.7 billion in the 3rd quarter of 2025.

Net Interest Income
Net interest income in the 3rd quarter of 2025 amounted to $279.5 million, a decrease of $690 thousand compared to the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter decreased $658 thousand compared to the previous quarter to $281.8 million. The decrease in net interest income was mostly due to lower interest income on investment securities and higher interest expense on borrowings and deposits, partly offset by higher interest income on loans and deposits with banks. The net yield (FTE) on earning assets decreased to 3.64%, from 3.70% in the prior quarter.

Compared to the previous quarter, interest income on loans (FTE) increased $3.5 million, mostly due to an additional day of interest earned in the 3rd quarter, partly offset by lower average balances of construction loans. The average yield (FTE) on the loan portfolio increased one basis point to 6.02% this quarter.

Interest income on investment securities (FTE) decreased $5.6 million compared to the prior quarter, mostly due to lower average balances of asset-backed and mortgage-backed securities and lower rates on U.S. government and federal agency securities and other securities, partially offset by higher average balances of U.S. government and federal agency securities. Interest income earned on U.S. government and federal agency securities included the impact of a $1.1 million decline in inflation income from Treasury inflation-protected securities compared to previous quarter. Interest on other securities included $1.3 million of non-accrual interest income related to a private equity investment but was lower than the $1.8 million of dividend and non-accrual interest recorded in the prior quarter. Additionally, the Company recorded a $314 thousand adjustment to premium amortization on September 30, 2025, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was lower than the $1.0 million adjustment that increased interest income in the prior quarter. The average yield (FTE) on total investment securities was 2.99% in the current quarter, compared to 3.16% in the previous quarter.

Compared to the previous quarter, interest income on deposits with banks increased $4.5 million, due to higher average balances.

Interest expense increased $3.2 million compared to the previous quarter, mainly due to higher average rates paid on deposits and higher average balances of borrowings. Interest expense on borrowings increased $1.4 million mostly due to an increase of $148.6 million in average securities sold under repurchase agreement balances. Interest expense on deposits increased $1.8 million mostly due to higher average rates. The average rate paid on interest bearing deposits totaled 1.71% in the current quarter compared to 1.67% in the prior quarter. The overall rate paid on interest bearing liabilities was
9
Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of Third Quarter Results
September 30, 2025
1.87% in the current quarter and 1.83% in the prior quarter.

Non-Interest Income
In the 3rd quarter of 2025, total non-interest income amounted to $161.5 million, an increase of $2.5 million, or 1.6%, over the same period last year and a decrease of $4.1 million compared to the prior quarter. The increase in non-interest income compared to the same period last year was mainly due to higher trust fees, deposit account fees and brokerage fees, partly offset by lower bank card fees and lower gains on sales of assets. The decrease in non-interest income compared to the prior quarter was mainly due to lower gains on sales of assets of $6.5 million, partly offset by higher trust fees.

Total net bank card fees in the current quarter decreased $2.0 million, or 4.2%, compared to the same period last year, and decreased $811 thousand compared to the prior quarter. Net corporate card fees decreased $1.7 million compared to the same quarter of last year mainly due to higher rewards expense, partly offset by higher interchange fees. Net merchant fees increased $89 thousand, or 1.6%, while net debit card fees decreased $107 thousand, or .9%. Net credit card fees decreased $336 thousand, or 8.5%, mostly due to higher rewards expense. Total net bank card fees this quarter were comprised of fees on corporate card ($25.1 million), debit card ($11.3 million), merchant ($5.6 million) and credit card ($3.6 million) transactions.

In the current quarter, trust fees increased $3.7 million, or 6.8%, over the same period last year, mostly resulting from higher private client fees. Compared to the same period last year, deposit account fees increased $2.0 million, or 8.1%, mostly due to higher corporate cash management fees, while consumer brokerage fees increased $2.1 million.

Other non-interest income decreased compared to the same period last year primarily due to lower gains on sales of assets of $4.7 million. For the 3rd quarter of 2025, non-interest income comprised 36.6% of the Company’s total revenue.

Investment Securities Gains and Losses
The Company recorded net securities gains of $7.9 million in the current quarter, compared to $437 thousand in the prior quarter and $3.9 million in the 3rd quarter of 2024. Net securities gains in the current quarter mostly resulted from net fair value adjustments of $8.0 million on the Company’s portfolio of private equity investments.

Non-Interest Expense
Non-interest expense for the current quarter amounted to $244.0 million, compared to $237.6 million in the same period last year and $244.4 million in the prior quarter. The increase in non-interest expense over the same period last year was mainly due to higher salaries and benefits expense, data processing and software, and professional and other services expense.

Compared to the 3rd quarter of 2024, salaries and employee benefits expense increased $4.3 million, or 2.8%, mostly due to higher full-time salaries of $3.0 million and higher incentive compensation of $1.4 million, partly offset by lower healthcare expense of $805 thousand. Full-time equivalent employees totaled 4,666 and 4,711 on September 30, 2025 and 2024, respectively.

Compared to the same period last year, data processing and software expense increased $1.4 million due to higher costs for service providers and software. Professional and other services, which increased $2.5 million compared to the 3rd quarter of 2024, included $1.1 million of acquisition related legal and professional services expense. Other non-interest expense decreased mainly due to a $1.5 million reimbursement during the 3rd quarter of 2025 related to a litigation settlement.

Income Taxes
The effective tax rate for the Company was 22.5% in the current quarter, 21.8% in the prior quarter, and 21.7% in the 3rd quarter of 2024. The increase in the effective tax rate compared to the prior quarter was mostly due to tax law changes enacted in the prior quarter that decreased the effective tax rate. The increase in the effective tax rate compared to the 3rd quarter of 2024 was mostly due to higher state and local income taxes.

Credit Quality
Net loan charge-offs in the 3rd quarter of 2025 amounted to $10.3 million, compared to $9.7 million in the prior quarter, and $9.6 million in the same period last year. The ratio of annualized net loan charge-offs to total average loans was .23% in the current quarter, .22% in the previous quarter, and .22% in the same quarter of last year. Compared to the prior quarter, net loan charge-offs on business real estate, business and personal real estate loans increased $402 thousand, $394 thousand and $234 thousand, respectively, while net charge-offs on consumer credit card loans decreased $570 thousand.

In the 3rd quarter of 2025, annualized net loan charge-offs on average consumer credit card loans were 4.59%, compared to 5.08% in the previous quarter and 4.46% in the same quarter last year. Consumer loan net charge-offs were .42% of average consumer loans in the current quarter, .40% in the prior quarter, and .52% in the same quarter last year.

On September 30, 2025, the allowance for credit losses on loans totaled $175.7 million, or .99% of total loans, and increased $10.4 million compared to the prior quarter. The increase in the allowance for credit losses on loans was primarily due to weakness in soft commodity prices impacting certain industries. Additionally, the liability for unfunded lending commitments on September 30, 2025 was $15.3 million, a decrease of $678 thousand compared to the liability on June 30, 2025.

On September 30, 2025, total non-accrual loans amounted to $16.3 million, a decrease of $2.6 million
10
Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of Third Quarter Results
September 30, 2025
compared to the previous quarter. On September 30, 2025, the balance of non-accrual loans, which represented .09% of loans outstanding, included business real estate loans of $14.9 million, personal real estate loans of $867 thousand, business loans of $255 thousand and construction loans of $191 thousand. Loans more than 90 days past due and still accruing interest totaled $21.5 million on September 30, 2025.

Other
During the 3rd quarter of 2025, the Company paid a cash dividend of $.275 per common share, representing a 7.0% increase over the same period last year. The Company purchased 418,131 shares of treasury stock during the current quarter at an average price of $60.32.

On June 16, 2025, the Company announced that it has entered into a definitive merger agreement to acquire FineMark Holdings, Inc. (OTCQX:FNBT) (“FineMark”), Ft. Meyers, Florida, with 13 banking locations in Florida, Arizona, and South Carolina. As of June 30, 2025, FineMark had loans and deposits of $2.7 billion and $3.1 billion, respectively, and $8.3 billion of assets under administration. The Company has received all regulatory approvals to complete its proposed merger. The transaction has been approved by the Federal Reserve Bank of Kansas City, the Missouri Division of Finance, and FineMark shareholders. The transaction remains subject to customary closing conditions and is anticipated to close on January 1, 2026.

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.
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