Commerce Bancshares (CBSH) investor relations material

Executive summary

• Q3 net income was $155.0M, up 9.5% YoY; diluted EPS was $1.08, up 6.9% YoY, but down from $159.8M and $1.10 in Q2.

• Fee income was 37.5% of revenue; period-end loans grew 19.3% YoY.

• Nine-month net income was $456.4M, up 7.2% YoY, with diluted EPS of $3.14, up 3.6%.

Financial highlights

• Net interest income was $308.9M, up 10.5% YoY and down 2% QoQ; non-interest income was $185.5M, up 14.8% YoY and 1% QoQ.

• Non-interest expense was $285.9M, up 17.2% YoY and down 3.7% QoQ; PPNR was $208.4M, up 3% QoQ and 6% YoY.

• Total revenue was $494.3M, up from $441.0M YoY and down from $498.9M QoQ.

• Q3 provision for credit losses was $10.0M versus $20.1M a year ago; net securities gains were $4.1M versus $7.9M YoY, including $12.4M of AFS debt-security sale losses.

• Non-interest income included a $2.0M asset-sale gain; expenses included FineMark-related salaries and benefits of $3.3M and professional services of $1.2M.

Outlook and guidance

• AFS securities maturities and paydowns are expected to generate $1.1B over the next 12 months, available for loan demand or potential deposit outflows.

• $2.5B of notional floor contracts maturing in 2030–2032 provide protection against declining rates on floating-rate commercial loans.

• Rate simulation projected net interest income up 0.63% with rates +100 bps and down 1.56% with rates -100 bps over 12 months versus a flat-rate scenario.

• FineMark systems conversion is scheduled for February 2027; financial expectations and synergy targets remain unchanged.