EX-99.1 2 cbsh03312026ex991.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:
Tuesday, April 21, 2026

COMMERCE BANCSHARES, INC. REPORTS
FIRST QUARTER EARNINGS PER SHARE OF $.96

Commerce Bancshares, Inc. announced earnings of $.96 per share for the three months ended March 31, 2026, compared to $.93 per share in the same quarter last year and $1.01 per share in the fourth quarter of 2025. Net income for the first quarter of 2026 amounted to $141.6 million, compared to $131.6 million in the first quarter of 2025 and $140.7 million in the prior quarter.

In making this announcement, John Kemper, Chief Executive Officer, said, “We delivered a strong first quarter highlighted by solid profitability and continued momentum across our diversified fee businesses. This was also our first full quarter incorporating FineMark, a strategic investment that meaningfully enhances our private banking and wealth management capabilities and expands our presence in highly attractive growth markets. Our overall performance reflected the strength of our franchise, supported by resilient net interest income, continued trust fee growth, and solid returns across our core profitability measures.

Mr. Kemper continued, “Our return on average assets remained solid at 1.62% while maintaining excellent credit quality, with non-accrual loans at just .05% of total loans. Non-interest income was $175.9 million and comprised 37% of total revenue.”

“We also remained focused on thoughtful capital deployment, returning excess capital to shareholders through the repurchase of more than $84 million of common stock this quarter while maintaining a conservative capital posture that underpins our long‑term strength and flexibility. As we look ahead, Commerce is well positioned to navigate an uncertain economic environment with discipline and confidence, balancing near‑term conditions with continued investment in long‑term growth. Our strategy remains centered on delivering consistent performance and creating durable, long‑term value for our shareholders."


First Quarter 2026 Financial Highlights:

•On January 1, 2026, Commerce Bancshares, Inc. completed its acquisition of FineMark Holdings, Inc.

•Net interest income was $299.8 million, a $16.7 million increase over the prior quarter. The net yield on interest earning assets decreased one basis point to 3.59%.

•Non-interest income totaled $175.9 million, an increase of $16.9 million, or 10.6%, over the same quarter last year.

1
Exhibit 99.1
•Trust fees grew $14.5 million, or 25.5%, over the same period last year, mostly due to higher private client fees.

•Non-interest expense totaled $291.1 million and included $14.0 million in acquisition-related expense.

•Assets under administration grew $14.9 billion, or 19.5%, over the same period last year.

•Average loan balances totaled $20.3 billion, an increase of $2.7 billion, or 15.2%, over the prior quarter.

•Total average available for sale debt securities decreased $269.0 million from the prior quarter to $8.9 billion, at fair value.

•Total average deposits increased $2.1 billion, or 8.2%, over the prior quarter to $27.7 billion.

•The ratio of annualized net loan charge-offs to average loans was .30% in the current quarter compared to .22% in the prior quarter.

•The allowance for credit losses on loans increased $19.1 million during the first quarter of 2026 to $198.6 million, and the ratio of the allowance for credit losses on loans to total loans was .97% at March 31, 2026, compared to 1.01% at December 31, 2025.

•Total assets on March 31, 2026 were $35.7 billion, an increase of $2.8 billion over the prior quarter.

•For the quarter, the return on average assets was 1.62%, the return on average equity was 13.22%, and the efficiency ratio was 60.0%. Quarterly profitability metrics reflected elevated acquisition-related expenses of approximately $14 million, which temporarily pressured the efficiency ratio and return on average assets.

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 account 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 Ended
(Unaudited)
(Dollars in thousands, except per share data)		Mar. 31, 2026Dec. 31, 2025Mar. 31, 2025
FINANCIAL SUMMARY
Net interest income$299,840 $283,152 $269,102 
Non-interest income175,851 166,208 158,949 
Total revenue475,691 449,360 428,051 
Investment securities gains (losses)11,647 2,929 (7,591)
Provision for credit losses10,960 15,993 14,487 
Non-interest expense291,126 252,995 238,376 
Income before taxes185,252 183,301 167,597 
Income taxes40,881 40,620 36,964 
Non-controlling interest expense (income)2,748 2,019 (959)
Net income attributable to Commerce Bancshares, Inc.$141,623 $140,662 $131,592 
Earnings per common share:  
Net income — basic$0.96 $1.01 $0.93 
Net income — diluted$0.96 $1.01 $0.93 
Effective tax rate22.40%22.41%21.93%
Fully-taxable equivalent net interest income$302,204 $285,830 $271,416 
Average total interest earning assets (1)
$34,130,985 $31,468,907 $30,901,110 
Diluted wtd. average shares outstanding145,856,608 137,599,105 139,725,305 
RATIOS  
Average loans to deposits (2)
73.44%69.01%69.38%
Return on total average assets1.62 1.73 1.69 
Return on average equity (3)
13.22 14.70 15.82 
Non-interest income to total revenue36.97 36.99 37.13 
Efficiency ratio (4)
60.00 56.23 55.61 
Net yield on interest earning assets3.59 3.60 3.56 
EQUITY SUMMARY  
Cash dividends per share$.275 $.262 $.262 
Cash dividends on common stock$40,355 $36,236 $36,866 
Book value per share (5)
$29.64 $27.75 $24.94 
Market value per share (5)
$49.20 $52.34 $59.27 
High market value per share$56.06 $57.36 $65.59 
Low market value per share$46.99 $48.69 $56.00 
Common shares outstanding (5)
145,979,271 137,457,138 140,277,275 
Tangible common equity to tangible assets (6)
11.07%11.11%10.33%
Tier I leverage ratio12.60%12.65%12.29%
OTHER QTD INFORMATION 
Number of bank/ATM locations249 236 242 
Full-time equivalent employees4,960 4,667 4,662 
(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 Ended
Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025
Interest income$396,507 $373,617 $374,105 $371,636 $364,365 
Interest expense96,667 90,465 94,648 91,489 95,263 
Net interest income299,840 283,152 279,457 280,147 269,102 
Provision for credit losses10,960 15,993 20,061 5,597 14,487 
Net interest income after credit losses288,880 267,159 259,396 274,550 254,615 
NON-INTEREST INCOME   
Trust fees71,049 62,125 58,412 55,571 56,592 
Bank card transaction fees45,585 46,761 45,551 46,362 45,593 
Deposit account charges and other fees28,578 27,949 27,427 26,248 26,622 
Consumer brokerage services5,444 5,185 6,698 5,383 4,785 
Capital market fees5,338 4,230 5,138 6,175 5,112 
Loan fees and sales3,243 3,594 3,465 3,419 3,404 
Other16,614 16,364 14,820 22,455 16,841 
Total non-interest income175,851 166,208 161,511 165,613 158,949 
INVESTMENT SECURITIES GAINS (LOSSES), NET11,647 2,929 7,885 437 (7,591)
NON-INTEREST EXPENSE   
Salaries and employee benefits180,787 162,889 157,461 155,025 153,078 
Data processing and software38,328 35,273 33,555 32,904 32,238 
Professional and other services18,792 14,573 11,284 12,973 10,026 
Net occupancy15,308 13,172 13,474 13,654 14,020 
Marketing6,957 6,201 6,670 5,974 5,843 
Equipment5,671 5,682 5,421 5,157 5,248 
Supplies and communication5,238 4,841 4,837 4,962 5,046 
Deposit Insurance3,914 (81)3,074 3,312 3,744 
Other16,131 10,445 8,242 10,476 9,133 
Total non-interest expense291,126 252,995 244,018 244,437 238,376 
Income before income taxes185,252 183,301 184,774 196,163 167,597 
Less income taxes40,881 40,620 41,152 42,400 36,964 
Net income144,371 142,681 143,622 153,763 130,633 
Less non-controlling interest expense (income)2,748 2,019 2,104 1,284 (959)
Net income attributable to Commerce Bancshares, Inc.$141,623 $140,662 $141,518 $152,479 $131,592 
Net income per common share — basic$0.96 $1.01 $1.01 $1.09 $0.93 
Net income per common share — diluted$0.96 $1.01 $1.01 $1.09 $0.93 
OTHER INFORMATION
Return on total average assets1.62%1.73%1.78%1.95%1.69%
Return on average equity (1)
13.2214.7015.2617.4015.82
Efficiency ratio (2)
60.0056.2355.2654.7755.61
Effective tax rate22.4022.4122.5321.7621.93
Net yield on interest earning assets3.593.603.643.703.56
Fully-taxable equivalent net interest income$302,204 $285,830 $281,770 $282,428 $271,416 
(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)		Mar. 31, 2026Dec. 31, 2025Mar. 31, 2025
ASSETS   
Loans
     Business $6,750,356 $6,439,380 $6,239,276 
     Real estate — construction and land1,581,789 1,438,012 1,419,572 
     Real estate — business4,059,539 3,674,567 3,628,635 
     Real estate — personal4,407,606 3,053,435 3,047,809 
     Consumer2,475,353 2,196,822 2,116,160 
     Revolving home equity619,178 375,159 356,675 
     Consumer credit card557,733 589,694 568,163 
     Overdrafts9,510 4,194 3,131 
Total loans20,461,064 17,771,263 17,379,421 
Allowance for credit losses on loans(198,605)(179,468)(167,031)
Net loans20,262,459 17,591,795 17,212,390 
Loans held for sale2,081 4,329 2,890 
Investment securities:
Available for sale debt securities8,646,127 9,095,513 9,264,947 
Trading debt securities44,329 40,080 56,569 
Equity securities56,193 57,354 58,182 
Other securities248,339 230,459 221,370 
Total investment securities8,994,988 9,423,406 9,601,068 
Federal funds sold630 — — 
Securities purchased under agreements to resell850,000 850,000 850,000 
Interest earning deposits with banks3,270,046 2,744,393 2,756,521 
Cash and due from banks572,588 803,239 517,332 
Premises and equipment — net527,211 485,700 476,921 
Goodwill253,805 146,539 146,539 
Other intangible assets — net145,985 13,311 13,441 
Other assets837,463 852,377 787,862 
Total assets$35,717,256 $32,915,089 $32,364,964 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Deposits:   
Non-interest bearing$8,058,024 $8,205,711 $7,518,243 
Savings, interest checking and money market17,877,836 15,047,406 15,975,283 
Certificates of deposit of less than $100,0001,032,114 1,023,406 985,878 
Certificates of deposit of $100,000 and over1,416,345 1,363,053 1,362,393 
Total deposits28,384,319 25,639,576 25,841,797 
Federal funds purchased and securities sold under agreements to repurchase2,576,723 2,989,641 2,400,036 
Other borrowings8,045 12,798 17,743 
Other liabilities421,771 458,302 606,986 
Total liabilities31,390,858 29,100,317 28,866,562 
Stockholders’ equity:   
Common stock742,606 692,944 676,054 
Capital surplus3,986,353 3,522,292 3,381,960 
Retained earnings233,094 131,826 140,220 
Treasury stock(120,692)(48,001)(85,871)
Accumulated other comprehensive income (loss)(539,592)(507,690)(634,576)
Total stockholders’ equity4,301,769 3,791,371 3,477,787 
Non-controlling interest24,629 23,401 20,615 
Total equity4,326,398 3,814,772 3,498,402 
Total liabilities and equity$35,717,256 $32,915,089 $32,364,964 

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

(Unaudited)
(In thousands)		For the Three Months Ended
Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025
ASSETS:
Loans:
Business$6,687,131 $6,317,805 $6,230,019 $6,247,252 $6,106,185 
Real estate — construction and land1,592,328 1,408,339 1,396,977 1,430,758 1,415,349 
Real estate — business4,045,670 3,730,679 3,715,597 3,692,405 3,667,833 
Real estate — personal4,417,131 3,058,834 3,059,913 3,048,895 3,045,876 
Consumer2,421,541 2,200,500 2,160,637 2,148,666 2,082,360 
Revolving home equity611,101 372,194 360,820 362,312 358,684 
Consumer credit card555,697 565,896 563,351 559,858 560,534 
Overdrafts7,144 6,592 7,037 5,663 5,860 
Total loans
20,337,743 17,660,839 17,494,351 17,495,809 17,242,681 
Allowance for credit losses on loans(201,769)(175,129)(164,623)(166,391)(162,186)
Net loans20,135,974 17,485,710 17,329,728 17,329,418 17,080,495 
Loans held for sale2,361 2,532 2,369 1,741 1,584 
Investment securities:
U.S. government and federal agency obligations3,190,796 3,197,720 2,693,327 2,623,896 2,586,944 
Government-sponsored enterprise obligations54,800 54,955 55,014 55,038 55,330 
State and municipal obligations709,332 724,737 756,137 780,063 804,363 
Mortgage-backed securities4,211,068 4,316,799 4,461,056 4,641,295 4,788,102 
Asset-backed securities1,201,187 1,336,859 1,466,770 1,585,364 1,655,701 
Other debt securities
176,676 196,633 204,281 237,385 258,136 
Unrealized gain (loss) on debt securities(630,778)(645,595)(766,025)(838,028)(935,054)
Total available for sale debt securities8,913,081 9,182,108 8,870,560 9,085,013 9,213,522 
Trading debt securities
97,801 61,160 56,032 51,131 38,298 
Equity securities50,378 52,387 50,823 54,472 57,028 
Other securities 250,641 227,395 220,041 216,560 233,461 
Total investment securities9,311,901 9,523,050 9,197,456 9,407,176 9,542,309 
Federal funds sold862 — 23 158 2,089 
Securities purchased under agreements to resell850,000 850,000 850,000 850,000 788,889 
Interest earning deposits with banks2,997,340 2,786,891 2,422,441 2,036,803 2,388,504 
Other assets2,074,538 1,700,147 1,709,247 1,671,763 1,698,296 
Total assets$35,372,976 $32,348,330 $31,511,264 $31,297,059 $31,502,166 
LIABILITIES AND EQUITY:
Non-interest bearing deposits$7,874,488 $7,592,431 $7,345,156 $7,356,882 $7,298,686 
Savings1,301,768 1,261,285 1,283,671 1,303,391 1,294,174 
Interest checking and money market16,019,323 14,335,613 13,740,770 13,901,634 13,906,827 
Certificates of deposit of less than $100,0001,035,130 1,015,617 991,877 984,845 991,826 
Certificates of deposit of $100,000 and over1,465,168 1,389,149 1,416,572 1,371,428 1,363,655 
Total deposits27,695,877 25,594,095 24,778,046 24,918,180 24,855,168 
Borrowings:
Federal funds purchased141,888 130,487 130,622 129,891 128,340 
Securities sold under agreements to repurchase2,674,484 2,429,746 2,519,660 2,371,031 2,723,227 
Other borrowings90,796 1,230 1,860 2,748 616 
Total borrowings2,907,168 2,561,463 2,652,142 2,503,670 2,852,183 
Other liabilities423,998 395,336 402,265 360,204 421,370 
Total liabilities31,027,043 28,550,894 27,832,453 27,782,054 28,128,721 
Equity4,345,933 3,797,436 3,678,811 3,515,005 3,373,445 
Total liabilities and equity$35,372,976 $32,348,330 $31,511,264 $31,297,059 $31,502,166 

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

(Unaudited)For the Three Months Ended
Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025
ASSETS: 
Loans: 
Business (1)
5.41%5.48%5.72%5.72%5.75%
Real estate — construction and land6.59 7.05 7.37 7.39 7.30 
Real estate — business5.75 5.76 5.92 5.92 5.88 
Real estate — personal4.82 4.38 4.34 4.30 4.28 
Consumer6.20 6.23 6.42 6.43 6.52 
Revolving home equity7.29 7.25 7.94 7.41 7.26 
Consumer credit card12.64 12.81 13.21 13.18 13.49 
Overdrafts— — — — — 
Total loans5.79 5.84 6.02 6.01 6.02 
Loans held for sale4.98 5.01 6.03 9.22 5.89 
Investment securities: 
U.S. government and federal agency obligations3.60 4.07 4.06 4.28 4.09 
Government-sponsored enterprise obligations2.40 2.36 2.35 2.38 2.40 
State and municipal obligations (1)
2.10 2.06 2.05 2.05 2.05 
Mortgage-backed securities2.12 2.05 2.01 2.08 2.08 
Asset-backed securities3.80 3.78 3.69 3.73 3.46 
Other debt securities3.17 2.97 2.97 2.94 2.69 
Total available for sale debt securities2.85 2.96 2.86 2.95 2.83 
Trading debt securities (1)
3.14 4.61 4.67 4.63 4.97 
Equity securities (1)
6.49 6.35 6.09 6.26 8.02 
Other securities (1)
6.81 9.08 7.29 11.63 7.85 
Total investment securities2.97 3.12 2.99 3.16 2.98 
Federal funds sold3.29 — — 5.08 5.63 
Securities purchased under agreements to resell4.03 4.00 4.00 4.02 3.81 
Interest earning deposits with banks3.70 3.95 4.45 4.46 4.46 
Total interest earning assets4.74 4.74 4.86 4.90 4.81 
LIABILITIES AND EQUITY: 
Interest bearing deposits: 
Savings.07 .05 .05 .05 .05 
Interest checking and money market1.48 1.45 1.54 1.49 1.52 
Certificates of deposit of less than $100,0003.17 3.25 3.33 3.44 3.65 
Certificates of deposit of $100,000 and over3.35 3.60 3.71 3.78 3.96 
Total interest bearing deposits1.61 1.62 1.71 1.67 1.72 
Borrowings: 
Federal funds purchased3.66 3.92 4.34 4.37 4.37 
Securities sold under agreements to repurchase2.39 2.54 2.88 2.85 2.86 
Other borrowings3.88 .65 1.71 3.79 .66 
Total borrowings2.50 2.61 2.95 2.93 2.93 
Total interest bearing liabilities1.72%1.75%1.87%1.83%1.89%
Net yield on interest earning assets3.59%3.60%3.64%3.70%3.56%
(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 Ended
(Unaudited)
(In thousands, except ratios)		Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Mar. 31, 2025
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$179,468 $175,671 $165,260 $167,031 $162,742 
     Initial allowance for credit loss at acquisition22,828 — — — — 
     Provision for credit losses on loans11,283 13,660 20,739 7,919 15,095 
     Net charge-offs (recoveries):
        Commercial portfolio:
     Business241 222 826 432 46 
     Real estate — construction and land — 16 — 24 — 
     Real estate — business5,405 (24)(23)(425)377 
5,646 214 803 31 423 
        Personal banking portfolio:
     Consumer credit card7,139 6,488 6,515 7,085 6,967 
     Consumer1,768 2,498 2,310 2,168 2,852 
     Overdraft413 485 432 360 495 
     Real estate — personal2 180 269 35 72 
     Revolving home equity6 (2)(1)11 (3)
9,328 9,649 9,525 9,659 10,383 
     Total net loan charge-offs 14,974 9,863 10,328 9,690 10,806 
Balance at end of period$198,605 $179,468 $175,671 $165,260 $167,031 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS$17,699 $17,660 $15,327 $16,005 $18,327 
NET CHARGE-OFF RATIOS (1)
Commercial portfolio:
     Business.01%.01%.05%.03%—%
     Real estate — construction and land— — — .01 — 
     Real estate — business.54 — — (.05).04 
.19 .01 .03 — .02 
Personal banking portfolio:
     Consumer credit card5.21 4.55 4.59 5.08 5.04 
     Consumer.30 .45 .42 .40 .56 
     Overdraft23.45 29.19 24.36 25.50 34.26 
     Real estate — personal— .02 .03 — .01 
     Revolving home equity— — — .01 — 
.47 .62 .61 .63 .70 
Total.30%.22%.23%.22%.25%
CREDIT QUALITY RATIOS
Non-accrual loans to total loans.05%.09%.09%.11%.13%
Allowance for credit losses on loans to total loans.97 1.01 .99 .94 .96 
NON-ACCRUAL AND PAST DUE LOANS
  Non-accrual loans:
     Business$201 $123 $255 $410 $1,112 
     Real estate — construction and land— — 191 426 220 
     Real estate — business9,369 14,785 14,940 15,109 18,305 
     Real estate — personal1,316 842 867 948 989 
     Revolving home equity34 — — 1,977 1,977 
   Total 10,920 15,750 16,253 18,870 22,603 
Loans past due 90 days and still accruing interest$22,824 $24,659 $21,536 $25,303 $19,417 
(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 First Quarter Results
March 31, 2026
For the quarter ended March 31, 2026, net income amounted to $141.6 million, compared to $140.7 million in the previous quarter and $131.6 million in the same quarter last year. The increase in net income over the previous quarter was primarily the result of higher net interest income, non-interest income, gains on investment securities, and a decrease in the provision for credit losses, partly offset by higher non-interest expense. The net yield on interest earning assets decreased one basis point from the previous quarter to 3.59%. Average loans and deposits increased $2.7 billion and $2.1 billion, respectively, while available for sale investment securities, at fair value, decreased $269.0 million compared to the prior quarter. For the quarter, the return on average assets was 1.62%, the return on average equity was 13.22%, and the efficiency ratio was 60.0%.

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. The acquisition added total assets of approximately $3.9 billion, including loans of $2.7 billion, total deposits of $3.1 billion and assets under administration of $8.7 billion.

Balance Sheet Review
During the 1st quarter of 2026, average loans totaled $20.3 billion, an increase of $2.7 billion over the prior quarter, and an increase of $3.1 billion over the same quarter last year. The increase in average balances over both periods was primarily due to the acquisition of FineMark, which added $2.7 billion in loan balances. Compared to the previous quarter, average balances of personal real estate, business, business real estate, revolving home equity and consumer loans grew $1.4 billion, $369.3 million, $315.0 million, $238.9 million and $221.0 million, respectively. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $26.2 million, compared to $27.0 million in the prior quarter.

Total average available for sale debt securities decreased $269.0 million from 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 1st quarter of 2026, the unrealized loss on available for sale debt securities increased $40.7 million to $687.5 million, at period end. Also, during the 1st quarter of 2026, maturities and pay downs of available for sale debt securities were $410.7 million. On March 31, 2026, the duration of the available for sale investment portfolio was 4.2 years, and maturities and pay downs of approximately $1.2 billion are expected to occur during the next 12 months.

Average interest earning deposits with banks increased $210.4 million over average balances in the
previous quarter, and the average balances within other assets increased $374.4 million mainly due to increases in goodwill, intangible assets, and premises and equipment related to the Company's acquisition of FIneMark.

Total average deposits increased $2.1 billion this quarter over the previous quarter. The increase in average balances was primarily due to the acquisition of FineMark, which added $2.7 billion of interest bearing and $425 million of non-interest bearing deposit balances. Shortly after the acquisition, the Company moved $1.0 billion of FineMark’s high-cost, money market deposit balances off-balance sheet. Compared to the prior quarter, average interest checking and money market deposits and demand deposits increased $1.7 billion and $282.1 million, respectively. Additionally, average balances of certificates of deposit of $100,000 and over increased $76.0 million compared to the prior quarter, mainly due to deposit balances acquired from FineMark. Compared to the previous quarter, total average wealth and retail banking deposits grew $2.3 billion and $251.0 million, respectively, while commercial deposits declined $408.3 million. The average loans to deposits ratio was 73.4% in the current quarter and 69.0% in the prior quarter. The Company’s average borrowings, which included average customer repurchase agreements of $2.7 billion, increased $345.7 million to $2.9 billion in the 1st quarter of 2026. Federal Home Loan Bank advances of $350.0 million, which the Company acquired from the FineMark acquisition, were paid off in January 2026.

Net Interest Income
Net interest income in the 1st quarter of 2026 amounted to $299.8 million, an increase of $16.7 million over the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter increased $16.4 million over the previous quarter to $302.2 million. The increase in net interest income was mostly due to the acquisition of FineMark on January 1, 2026. Accretion income on FineMark’s loans resulting from purchase accounting adjustments totaled $6.9 million. The net yield (FTE) on earning assets decreased to 3.59%, from 3.60% in the prior quarter.

Compared to the previous quarter, interest income on loans (FTE) increased $30.4 million, mostly due to higher average balances in all loan categories, except consumer credit cards, and higher average rates earned on personal real estate loans, partly offset by lower average rates earned on business, construction, and business real estate loans. The average yield (FTE) on the loan portfolio decreased five basis points to 5.79% this quarter.

Interest income on investment securities (FTE) decreased $7.3 million compared to the prior quarter, mostly due to lower average rates earned on U.S. government and federal agency obligations
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Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of First Quarter Results
March 31, 2026
and other securities and lower average balances of asset-backed and mortgage-backed securities. Interest income earned on U.S. government and federal agency obligations included the impact of a $3.8 million decrease in inflation income from Treasury inflation-protected securities compared to the previous quarter. In the prior quarter, interest on other securities included dividend income of $2.1 million related to a private equity investment that did not reoccur in the current quarter. Additionally, the Company recorded a $940 thousand adjustment to premium amortization on March 31, 2026, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was higher than the $731 thousand adjustment that increased interest income in the prior quarter. The average yield (FTE) on total investment securities was 2.97% in the current quarter, compared to 3.12% in the previous quarter.

Compared to the previous quarter, interest income on deposits with banks decreased $401 thousand as lower average rates more than offset higher average balances. Interest expense increased $6.2 million over the previous quarter, mainly due to higher average interest bearing deposit balances, partly offset by lower average rates paid on interest bearing deposit balances. Interest expense on deposits increased $5.1 million mostly due to higher average interest checking and money market deposit account balances. The average rate paid on interest bearing deposits totaled 1.61% in the current quarter compared to 1.62% in the prior quarter. The overall rate paid on interest bearing liabilities was 1.72% in the current quarter and 1.75% in the prior quarter.

Non-Interest Income
In the 1st quarter of 2026, total non-interest income amounted to $175.9 million, an increase of $16.9 million, or 10.6%, over the same period last year and an increase of $9.6 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. 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 were flat compared to the same period last year and decreased $1.2 million compared to the prior quarter. Net corporate card fees were flat compared to the same quarter last year. Net merchant fees decreased $184 thousand, or 3.2%, while net debit card fees increased $301 thousand, or 2.9%, mainly due to higher interchange income. Net credit card fees decreased $173 thousand, or 4.8%, mostly due to higher rewards expense. Total net bank card fees this quarter were comprised of fees on corporate card ($26.0 million), debit card ($10.6 million), merchant ($5.6 million) and credit card ($3.4 million) transactions.

In the current quarter, trust fees increased $14.5 million, or 25.5%, over the same period last year, and increased $8.9 million, or 14.4%, over the prior quarter, mostly resulting from higher private client fees. Compared to the same period last year, deposit account fees increased $2.0 million, or 7.3%, mostly due to higher corporate cash management fees.

For the 1st quarter of 2026, non-interest income comprised 37.0% of the Company’s total revenue.

Investment Securities Gains and Losses
The Company recorded net securities gains of $11.6 million in the current quarter, compared to net gains of $2.9 million in the prior quarter and net securities losses of $7.6 million in the 1st quarter of 2025. Net securities gains in the current quarter mostly resulted from net fair value adjustments of $10.9 million on the Company’s portfolio of private equity investments.

Non-Interest Expense
Non-interest expense for the current quarter amounted to $291.1 million, compared to $238.4 million in the same period last year and $253.0 million in the prior quarter. The current quarter included $14.0 million in acquisition-related expense, compared to $2.8 million in the previous quarter, as well as acquisition-related intangible amortization expense of $5.4 million. 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 expense, professional and other services expense, and intangible amortization expense. The increase in non-interest expense over the prior quarter was mainly due to higher salaries and benefits expense, data processing and software expense, professional and other services expense, intangible amortization expense and deposit insurance expense.

Compared to the 1st quarter of 2025, salaries and employee benefits expense increased $27.7 million, or 18.1%, mostly due to an accrual for retention bonuses, acquisition-related compensation payments and the onboarding of FineMark’s team members. Acquisition-related salaries and benefits expense was $6.6 million in the current quarter. Full-time equivalent employees totaled 4,960 and 4,662 at March 31, 2026 and 2025, respectively.

Compared to the same period last year, data processing and software expense increased $6.1 million due to higher costs for service providers and software. Professional and other services, which increased $8.8 million compared to the 1st quarter of 2025, included $4.7 million in acquisition-related legal and professional services expense. The increase in other non-interest expense was mainly due to increases of $5.4 million in intangible amortization expense related to the FineMark acquisition and $2.0 million in other acquisition-related expense. Compared to the prior quarter, deposit insurance
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Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of First Quarter Results
March 31, 2026
expense increased $4.0 million due to a $3.9 million accrual adjustment to the FDIC’s special assessment, recorded in the 4th quarter of 2025.

Income Taxes
The effective tax rate for the Company was 22.4% in the current quarter, 22.4% in the prior quarter, and 21.9% in the 1st quarter of 2025.

Credit Quality
Net loan charge-offs in the 1st quarter of 2026 amounted to $15.0 million, compared to $9.9 million in the prior quarter, and $10.8 million in the same period last year. The ratio of annualized net charge-offs to total average loans was .30% in the current quarter, .22% in the previous quarter, and .25% in the same quarter of last year. Compared to the prior quarter, net charge-offs on business real estate loans and consumer credit card loans increased $5.4 million and $651 thousand, respectively, while net charge-offs on consumer loans decreased $730 thousand. The increase in business real estate loan net charge-offs was mainly due to a charge-off on a senior living non-accrual loan.

In the 1st quarter of 2026, annualized net charge-offs on average consumer credit card loans were 5.21%, compared to 4.55% in the previous quarter and 5.04% in the same quarter last year. Consumer loan net charge-offs were .30% of average consumer loans in the current quarter, .45% in the prior quarter, and .56% in the same quarter last year.

At March 31, 2026, the allowance for credit losses on loans totaled $198.6 million, or .97% of total loans, and increased $19.1 million compared to the prior quarter. The increase was mostly attributed to the acquisition of FineMark, which added $22.8 million to the allowance for credit losses on January 1, 2026. Additionally, the liability for unfunded lending commitments on March 31, 2026 was $17.7 million, flat compared to the liability on December 31, 2025.

At March 31, 2026, total non-accrual loans amounted to $10.9 million, a decrease of $4.8 million compared to the previous quarter. At March 31, 2026, the balance of non-accrual loans, which represented .05% of loans outstanding, included business real estate loans of $9.4 million, personal real estate loans of $1.3 million and business loans of $201 thousand. Loans more than 90 days past due and still accruing interest totaled $22.8 million at March 31, 2026.

Other
During the 1st quarter of 2026, the Company paid a cash dividend of $.275 per common share, representing a 5% increase over the same period last year. The Company purchased approximately 1.6 million shares of treasury stock during the current quarter at an average price of $51.57.

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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