EX-99.1 2 cbsh12312025ex991.htm EX-99.1 Document
Exhibit 99.1
Exhibit 99.1
commercebancshares914a01a05a.jpg
CBSH
                   1000 Walnut Street / Suite 700 / Kansas City, Missouri 64106 / 816.234.2000
FOR IMMEDIATE RELEASE:
Thursday, January 22, 2026

COMMERCE BANCSHARES, INC. REPORTS
FOURTH QUARTER EARNINGS PER SHARE OF $1.01

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.

1
Exhibit 99.1
•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.
* * * * * * * * * * * * * * *
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 Year Ended
(Unaudited)
(Dollars in thousands, except per share data)		Dec. 31, 2025Sep. 30, 2025Dec. 31, 2024Dec. 31, 2025Dec. 31, 2024
FINANCIAL SUMMARY
Net interest income$283,152 $279,457 $266,647 $1,111,858 $1,040,246 
Non-interest income166,208 161,511 155,436 652,281 615,553 
Total revenue449,360 440,968 422,083 1,764,139 1,655,799 
Investment securities gains (losses)2,929 7,885 977 3,660 7,823 
Provision for credit losses15,993 20,061 13,508 56,138 32,903 
Non-interest expense252,995 244,018 235,718 979,826 951,229 
Income before taxes183,301 184,774 173,834 731,835 679,490 
Income taxes40,620 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 rate22.41%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 $30,266,008 
Diluted wtd. average shares outstanding137,599,105 139,086,435 140,370,917 138,900,333 141,422,821 
RATIOS  
Average loans to deposits (2)
69.01%70.61%68.45%69.80%69.73%
Return on total average assets1.73 1.78 1.73 1.79 1.72 
Return on average equity (3)
14.70 15.26 15.97 15.76 16.66 
Non-interest income to total revenue36.99 36.63 36.83 36.97 37.18 
Efficiency ratio (4)
56.23 55.26 55.77 55.47 57.37 
Net yield on interest earning assets3.60 3.64 3.49 3.63 3.47 
EQUITY SUMMARY  
Cash dividends per share$.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 ratio12.65%12.95%12.26%
OTHER QTD INFORMATION 
Number of bank/ATM locations236 239 243 
Full-time equivalent employees4,667 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.
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 Year Ended
Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024Dec. 31, 2025Dec. 31, 2024
Interest income$373,617 $374,105 $371,636 $364,365 $369,405 $1,483,723 $1,469,557 
Interest expense90,465 94,648 91,489 95,263 102,758 371,865 429,311 
Net interest income283,152 279,457 280,147 269,102 266,647 1,111,858 1,040,246 
Provision for credit losses15,993 20,061 5,597 14,487 13,508 56,138 32,903 
Net interest income after credit losses267,159 259,396 274,550 254,615 253,139 1,055,720 1,007,343 
NON-INTEREST INCOME   
Trust fees62,125 58,412 55,571 56,592 56,345 232,700 214,430 
Bank card transaction fees46,761 45,551 46,362 45,593 47,807 184,267 189,784 
Deposit account charges and other fees27,949 27,427 26,248 26,622 25,480 108,246 100,336 
Consumer brokerage services5,185 6,698 5,383 4,785 4,636 22,051 18,141 
Capital market fees4,230 5,138 6,175 5,112 5,129 20,655 19,776 
Loan fees and sales3,594 3,465 3,419 3,404 2,874 13,882 12,890 
Other16,364 14,820 22,455 16,841 13,165 70,480 60,196 
Total non-interest income166,208 161,511 165,613 158,949 155,436 652,281 615,553 
INVESTMENT SECURITIES GAINS (LOSSES), NET2,929 7,885 437 (7,591)977 3,660 7,823 
NON-INTEREST EXPENSE   
Salaries and employee benefits162,889 157,461 155,025 153,078 153,819 628,453 607,862 
Data processing and software35,273 33,555 32,904 32,238 32,514 133,970 127,390 
Net occupancy13,172 13,474 13,654 14,020 13,694 54,320 53,223 
Professional and other services14,573 11,284 12,973 10,026 8,982 48,856 35,077 
Marketing6,201 6,670 5,974 5,843 5,683 24,688 22,353 
Equipment5,682 5,421 5,157 5,248 5,232 21,508 20,619 
Supplies and communication4,841 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 
Other10,445 8,242 10,476 9,133 7,665 38,296 48,932 
Total non-interest expense252,995 244,018 244,437 238,376 235,718 979,826 951,229 
Income before income taxes183,301 184,774 196,163 167,597 173,834 731,835 679,490 
Less income taxes40,620 41,152 42,400 36,964 36,590 161,136 145,089 
Net income142,681 143,622 153,763 130,633 137,244 570,699 534,401 
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 assets1.73%1.78%1.95%1.69%1.73%1.79%1.72%
Return on average equity (1)
14.7015.2617.4015.8215.9715.7616.66
Efficiency ratio (2)
56.2355.2654.7755.6155.7755.4757.37
Effective tax rate22.4122.5321.7621.9321.1922.1521.61
Net yield on interest earning assets3.603.643.703.563.493.633.47
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.
4
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - PERIOD END

(Unaudited)
(In thousands)		Dec. 31, 2025Sep. 30, 2025Dec. 31, 2024
ASSETS   
Loans
     Business $6,439,380 $6,414,792 $6,053,820 
     Real estate — construction and land1,438,012 1,433,652 1,409,901 
     Real estate — business3,674,567 3,745,000 3,661,218 
     Real estate — personal3,053,435 3,070,980 3,058,195 
     Consumer2,196,822 2,171,599 2,073,123 
     Revolving home equity375,159 364,241 356,650 
     Consumer credit card589,694 575,317 595,930 
     Overdrafts4,194 11,186 11,266 
Total loans17,771,263 17,786,767 17,220,103 
Allowance for credit losses on loans(179,468)(175,671)(162,742)
Net loans17,591,795 17,611,096 17,057,361 
Loans held for sale4,329 2,538 3,242 
Investment securities:
Available for sale debt securities9,095,513 8,998,586 9,136,853 
Trading debt securities40,080 56,282 38,034 
Equity securities57,354 53,193 57,442 
Other securities230,459 227,430 230,051 
Total investment securities9,423,406 9,335,491 9,462,380 
Federal funds sold— — 3,000 
Securities purchased under agreements to resell850,000 850,000 625,000 
Interest earning deposits with banks2,744,393 2,477,668 2,624,553 
Cash and due from banks803,239 476,441 748,357 
Premises and equipment — net485,700 483,000 475,275 
Goodwill146,539 146,539 146,539 
Other intangible assets — net13,311 13,329 13,632 
Other assets852,377 892,586 837,288 
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 market15,047,406 15,551,799 14,754,571 
Certificates of deposit of less than $100,0001,023,406 1,002,640 996,721 
Certificates of deposit of $100,000 and over1,363,053 1,413,965 1,391,683 
Total deposits25,639,576 25,458,049 25,293,644 
Federal funds purchased and securities sold under agreements to repurchase2,989,641 2,473,065 2,926,758 
Other borrowings12,798 9,270 56 
Other liabilities458,302 555,257 443,694 
Total liabilities29,100,317 28,495,641 28,664,152 
Stockholders’ equity:   
Common stock692,944 676,054 676,054 
Capital surplus3,522,292 3,390,526 3,395,645 
Retained earnings131,826 360,723 45,494 
Treasury stock(48,001)(121,972)(48,401)
Accumulated other comprehensive income (loss)(507,690)(533,666)(758,911)
Total stockholders’ equity3,791,371 3,771,665 3,309,881 
Non-controlling interest23,401 21,382 22,594 
Total equity3,814,772 3,793,047 3,332,475 
Total liabilities and equity$32,915,089 $32,288,688 $31,996,627 

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

(Unaudited)
(In thousands)		For the Three Months Ended
Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024
ASSETS:
Loans:
Business$6,317,805 $6,230,019 $6,247,252 $6,106,185 $5,963,217 
Real estate — construction and land1,408,339 1,396,977 1,430,758 1,415,349 1,411,437 
Real estate — business3,730,679 3,715,597 3,692,405 3,667,833 3,636,026 
Real estate — personal3,058,834 3,059,913 3,048,895 3,045,876 3,047,494 
Consumer2,200,500 2,160,637 2,148,666 2,082,360 2,087,237 
Revolving home equity372,194 360,820 362,312 358,684 350,541 
Consumer credit card565,896 563,351 559,858 560,534 568,138 
Overdrafts6,592 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 loans17,485,710 17,329,728 17,329,418 17,080,495 16,909,432 
Loans held for sale2,532 2,369 1,741 1,584 2,080 
Investment securities:
U.S. government and federal agency obligations3,197,720 2,693,327 2,623,896 2,586,944 2,459,485 
Government-sponsored enterprise obligations54,955 55,014 55,038 55,330 55,428 
State and municipal obligations724,737 756,137 780,063 804,363 831,695 
Mortgage-backed securities4,316,799 4,461,056 4,641,295 4,788,102 4,905,187 
Asset-backed securities1,336,859 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 securities9,182,108 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 securities52,387 50,823 54,472 57,028 56,758 
Other securities 227,395 220,041 216,560 233,461 222,529 
Total investment securities9,523,050 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 resell850,000 850,000 850,000 788,889 566,307 
Interest earning deposits with banks2,786,891 2,422,441 2,036,803 2,388,504 2,610,315 
Other assets1,700,147 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 
Savings1,261,285 1,283,671 1,303,391 1,294,174 1,281,291 
Interest checking and money market14,335,613 13,740,770 13,901,634 13,906,827 13,679,666 
Certificates of deposit of less than $100,0001,015,617 991,877 984,845 991,826 1,061,783 
Certificates of deposit of $100,000 and over1,389,149 1,416,572 1,371,428 1,363,655 1,451,851 
Total deposits25,594,095 24,778,046 24,918,180 24,855,168 24,938,846 
Borrowings:
Federal funds purchased130,487 130,622 129,891 128,340 121,781 
Securities sold under agreements to repurchase2,429,746 2,519,660 2,371,031 2,723,227 2,445,956 
Other borrowings1,230 1,860 2,748 616 1,067 
Total borrowings2,561,463 2,652,142 2,503,670 2,852,183 2,568,804 
Other liabilities395,336 402,265 360,204 421,370 375,463 
Total liabilities28,550,894 27,832,453 27,782,054 28,128,721 27,883,113 
Equity3,797,436 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 

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

(Unaudited)For the Three Months Ended
Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024
ASSETS: 
Loans: 
Business (1)
5.48%5.72%5.72%5.75%5.86%
Real estate — construction and land7.05 7.37 7.39 7.30 7.75 
Real estate — business5.76 5.92 5.92 5.88 6.01 
Real estate — personal4.38 4.34 4.30 4.28 4.17 
Consumer6.23 6.42 6.43 6.52 6.52 
Revolving home equity7.25 7.94 7.41 7.26 7.28 
Consumer credit card12.81 13.21 13.18 13.49 13.60 
Overdrafts— — — — — 
Total loans5.84 6.02 6.01 6.02 6.11 
Loans held for sale5.01 6.03 9.22 5.89 7.65 
Investment securities: 
U.S. government and federal agency obligations4.07 4.06 4.28 4.09 3.86 
Government-sponsored enterprise obligations2.36 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 securities2.05 2.01 2.08 2.08 2.17 
Asset-backed securities3.78 3.69 3.73 3.46 2.99 
Other debt securities2.97 2.97 2.94 2.69 2.11 
Total available for sale debt securities2.96 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 securities3.12 2.99 3.16 2.98 2.80 
Federal funds sold— — 5.08 5.63 5.78 
Securities purchased under agreements to resell4.00 4.00 4.02 3.81 3.57 
Interest earning deposits with banks3.95 4.45 4.46 4.46 4.78 
Total interest earning assets4.74 4.86 4.90 4.81 4.83 
LIABILITIES AND EQUITY: 
Interest bearing deposits: 
Savings.05 .05 .05 .05 .05 
Interest checking and money market1.45 1.54 1.49 1.52 1.63 
Certificates of deposit of less than $100,0003.25 3.33 3.44 3.65 3.91 
Certificates of deposit of $100,000 and over3.60 3.71 3.78 3.96 4.24 
Total interest bearing deposits1.62 1.71 1.67 1.72 1.87 
Borrowings: 
Federal funds purchased3.92 4.34 4.37 4.37 4.71 
Securities sold under agreements to repurchase2.54 2.88 2.85 2.86 3.11 
Other borrowings.65 1.71 3.79 .66 3.36 
Total borrowings2.61 2.95 2.93 2.93 3.18 
Total interest bearing liabilities1.75%1.87%1.83%1.89%2.04%
Net yield on interest earning assets3.60%3.64%3.70%3.56%3.49%
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.







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

 For the Three Months EndedFor the Year Ended
(Unaudited)
(In thousands, except ratios)		Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025Dec. 31, 2024Dec. 31, 2025Dec. 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 loans13,660 20,739 7,919 15,095 12,557 57,413 39,214 
     Net charge-offs (recoveries):
        Commercial portfolio:
     Business222 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 card6,488 6,515 7,085 6,967 6,557 27,055 26,011 
     Consumer2,498 2,310 2,168 2,852 3,237 9,828 9,783 
     Overdraft485 432 360 495 470 1,772 2,012 
     Real estate — personal180 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 card4.55 4.59 5.08 5.04 4.59 4.81 4.64 
     Consumer.45 .42 .40 .56 .62 .46 .46 
     Overdraft29.19 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 loans1.01 .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 — business14,785 14,940 15,109 18,305 14,954 
     Real estate — personal842 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).
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Exhibit 99.1                                        
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
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Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of Fourth Quarter Results
December 31, 2025
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
10
Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of Fourth Quarter Results
December 31, 2025
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.
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