cbsh-20220119
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 19, 2022

Commerce Bancshares, Inc.
(Exact name of registrant as specified in its charter)
Missouri 001-36502 43-0889454
(State of Incorporation) (Commission File Number) (IRS Employer Identification No.)
1000 Walnut,  
Kansas City,MO 64106
(Address of principal executive offices) (Zip Code)

(816) 234-2000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
     ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of classTrading symbol(s)Name of exchange on which registered
$5 Par Value Common StockCBSHNASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition
A copy of the press release issued January 19, 2022 by Commerce Bancshares, Inc. announcing Fourth Quarter 2021 earnings is furnished under Item 2.02 of this Current Report on Form 8-K as Exhibit 99.1. Additionally, a slide presentation for investors and analysts is being furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K, including the exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, the information in this Current Report on Form 8-K, including the exhibits, shall not be deemed to be incorporated by reference into the filings of Commerce Bancshares, Inc. under the Securities Act of 1933, as amended.
All information included in this Current Report on Form 8-K is available on the Company’s website at https://investor.commercebank.com/news-info/financial-news-releases/default.aspx.

Item 9.01 Financial Statements and Exhibits

Exhibits
99.1    Press release dated January 19, 2022
99.2     Slide presentation for investors and analysts dated January 19, 2022
104    The XBRL tags on the cover page of this Form 8-K are embedded within the Inline XBRL document.


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 COMMERCE BANCSHARES, INC.
 By:  /s/ Paul A. Steiner  
  Paul A. Steiner
  
Controller
(Chief Accounting Officer) 
Date: January 19, 2022



Exhibit 99.1
commercebancshares914a01a05.jpg
CBSH
                   1000 Walnut Street / Suite 700 / Kansas City, Missouri 64106 / 816.234.2000
FOR IMMEDIATE RELEASE:
Wednesday, January 19, 2022

COMMERCE BANCSHARES, INC. REPORTS
FOURTH QUARTER EARNINGS PER SHARE OF $.94

    Commerce Bancshares, Inc. announced earnings of $.94 per share for the three months ended December 31, 2021, compared to $1.05 per common share in the same quarter last year and $.99 per share in the third quarter of 2021. Net income attributable to Commerce Bancshares, Inc. (net income) for the fourth quarter of 2021 amounted to $114.9 million, compared to $129.9 million in the fourth quarter of 2020 and $122.6 million in the prior quarter.

In announcing these results, John Kemper, Chief Executive Officer, said, “Commerce had a strong quarter to close out 2021, reflecting a growing economy and a resilient customer base. Trust fees were up 16.5% over the fourth quarter of 2020, driven by rising market values, excellent customer attraction and retention, and the ongoing investments we’ve made in our wealth business. Corporate and retail spending levels continued to increase, amounting to growth of 12% in bank card transaction fees over the same period last year.

The growth in our fee-based businesses continues to provide strong revenue diversification. Non-interest income comprised 42% of total revenue in the fourth quarter. Compared to the previous quarter, we experienced higher loan demand, a reflection of accelerating business activity in our markets. We continue to be confident in our strong liquidity, capital levels, and credit quality, and we continue to invest in our excellent relationships with customers, teammates, shareholders, and regulators.”

Fourth Quarter 2021 Financial Highlights:
•Net interest income in the fourth quarter amounted to $207.7 million, a 3.0% decrease compared to the third quarter, partly due to a $5.3 million decrease in interest income from Paycheck Protection Program (PPP) loans. The net interest margin decreased 15 basis points from the prior quarter to 2.43%.
•Non-interest income totaled $147.7 million in the fourth quarter, an increase of $10.2 million compared to the prior quarter.
•Net investment securities losses of $9.7 million this quarter were driven mostly by net fair value losses of $6.5 million in the Company’s portfolio of private equity investments.
•Non-interest expense totaled $203.6 for the quarter, a decrease of $8.0 million compared to the previous quarter.
•Average loan balances totaled $15.1 billion, a decrease of $165.9 million, or 1.1%, from the prior quarter (average PPP loan balances declined $356.1 million). As of December 31, 2021, 93% of PPP loan balances have been forgiven.
1

•Total average available for sale debt securities increased 5.3%, or $726.3 million, over the previous quarter to $14.5 billion, at fair value. Purchases of securities during the quarter totaled $1.4 billion with a weighted average yield of approximately 1.27%.
•Compared to the previous quarter, average deposits grew $790.6 million, or 2.8%. The average rate paid on interest bearing deposits was 5 basis points this quarter.
•The ratio of annualized net loan charge-offs to average loans was .11% in the current quarter compared to .10% in the prior quarter. Net charge-offs on loans remained low.
•Non-accrual loans totaled $9.2 million compared to $10.4 million prior quarter. Non-accrual loans were .06% of total loans.
•At December 31, 2021, the allowance for credit losses on loans decreased to $150.0 million. The allowance for credit losses on loans to total loans was .99% at December 31, 2021.
•The Company purchased 696,367 shares of its common stock this quarter at an average price of $70.81.
•Total assets at December 31, 2021 were $36.7 billion, an increase of $2.2 billion, or 6.4%, from the prior quarter.
•For the quarter, the return on average assets was 1.28%, the return on average equity was 13.11% and the efficiency ratio was 57.3%.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services, including payment solutions, investment management and securities brokerage. Commerce Bank, a subsidiary of Commerce Bancshares, Inc., leverages more than 150 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. It also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids. Commerce delivers high-touch service and sophisticated financial solutions at regional branches, commercial 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
[email protected]


2

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, 2021Sep. 30, 2021Dec. 31, 2020Dec. 31, 2021Dec. 31, 2020
FINANCIAL SUMMARY
Net interest income$207,657 $214,037 $209,763 $835,424 $829,847 
Non-interest income147,699 137,506 135,117 560,393 505,867 
Total revenue355,356 351,543 344,880 1,395,817 1,335,714 
Investment securities gains (losses), net(9,706)13,108 12,307 30,059 11,032 
Provision for credit losses(7,054)(7,385)(4,403)(66,326)137,190 
Non-interest expense203,582 211,620 196,310 805,901 768,378 
Income before taxes149,122 160,416 165,280 686,301 441,178 
Income taxes33,764 34,662 33,084 145,711 87,293 
(Income) loss attributable to non-controlling interest452 3,193 2,307 9,825 (172)
Net income attributable to Commerce Bancshares, Inc.114,906 122,561 129,889 530,765 354,057 
Preferred stock dividends— — — — 11,966 
Net income available to common shareholders$114,906 $122,561 $129,889 $530,765 $342,091 
Earnings per common share:  
Net income — basic$0.94 $1.00 $1.05 $4.32 $2.77 
Net income — diluted$0.94 $0.99 $1.05 $4.31 $2.77 
Effective tax rate22.71 %22.05 %20.30 %21.54 %19.78 %
Tax equivalent net interest income$210,424 $216,858 $213,017 $847,116 $842,790 
Average total interest earning assets (1)
$34,318,520 $33,306,752 $30,297,922 $32,874,701 $28,143,048 
Diluted wtd. average shares outstanding121,221,482 121,881,091 122,333,233 121,940,992 122,413,216 
RATIOS  
Average loans to deposits (2)
52.36 %54.44 %64.05 %56.46 %67.73 %
Return on total average assets1.28 1.40 1.63 1.55 1.20 
Return on average common equity (3)
13.11 13.74 15.49 15.37 10.64 
Non-interest income to total revenue41.56 39.11 39.18 40.15 37.87 
Efficiency ratio (4)
57.29 59.95 56.68 57.64 57.19 
Net yield on interest earning assets2.43 2.58 2.80 2.58 2.99 
EQUITY SUMMARY  
Cash dividends per common share$.250 $.250 $.245 $1.00 $.980 
Cash dividends on common stock$30,489 $30,645 $30,178 $122,693 $120,818 
Cash dividends on preferred stock$— $— $— $— $11,966 
Book value per common share (5)
$28.40 $28.58 $27.64 
Market value per common share (5)
$68.74 $66.36 $62.57 
High market value per common share$71.50 $72.08 $64.85 
Low market value per common share$64.85 $61.81 $49.62 
Common shares outstanding (5)
121,436,734 122,148,786 122,995,353 
Tangible common equity to tangible assets (6)
9.01 %9.71 %9.92 %
Tier I leverage ratio9.13 %9.31 %9.45 %
OTHER QTD INFORMATION 
Number of bank/ATM locations287 292 306 
Full-time equivalent employees4,567 4,582 4,766 
(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 available to common shareholders divided by average total equity less preferred stock.
(4)The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.
(5)As of period end.
(6)The tangible common equity ratio is calculated as stockholders’ equity reduced by preferred stock, 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 2021.
3

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, 2021Sep. 30, 2021Jun. 30, 2021Mar. 31, 2021Dec. 31, 2020Dec. 31, 2021Dec. 31, 2020
Interest income$210,479 $216,981 $211,133 $209,697 $214,726 $848,290 $872,648 
Interest expense2,822 2,944 3,151 3,949 4,963 12,866 42,801 
Net interest income207,657 214,037 207,982 205,748 209,763 835,424 829,847 
Provision for credit losses(7,054)(7,385)(45,655)(6,232)(4,403)(66,326)137,190 
Net interest income after credit losses214,711 221,422 253,637 211,980 214,166 901,750 692,657 
NON-INTEREST INCOME   
Bank card transaction fees44,773 42,815 42,608 37,695 39,979 167,891 151,797 
Trust fees48,893 48,950 46,257 44,127 41,961 188,227 160,637 
Deposit account charges and other fees25,493 25,161 23,988 22,575 24,164 97,217 93,227 
Capital market fees3,841 3,794 3,327 4,981 3,826 15,943 14,582 
Consumer brokerage services4,878 4,900 4,503 4,081 3,996 18,362 15,095 
Loan fees and sales5,248 6,842 7,446 10,184 9,031 29,720 26,684 
Other14,573 5,044 11,014 12,402 12,160 43,033 43,845 
Total non-interest income147,699 137,506 139,143 136,045 135,117 560,393 505,867 
INVESTMENT SECURITIES GAINS (LOSSES), NET(9,706)13,108 16,804 9,853 12,307 30,059 11,032 
NON-INTEREST EXPENSE   
Salaries and employee benefits132,640 132,824 130,751 129,033 129,983 525,248 512,987 
Net occupancy12,308 12,329 11,527 12,021 11,570 48,185 46,645 
Equipment4,691 4,440 4,605 4,353 4,526 18,089 18,839 
Supplies and communication4,430 4,530 4,033 4,125 4,193 17,118 17,419 
Data processing and software25,777 25,598 24,954 25,463 24,323 101,792 95,325 
Marketing5,395 5,623 5,680 5,158 5,028 21,856 19,734 
Other18,341 26,276 16,576 12,420 16,687 73,613 57,429 
Total non-interest expense203,582 211,620 198,126 192,573 196,310 805,901 768,378 
Income before income taxes149,122 160,416 211,458 165,305 165,280 686,301 441,178 
Less income taxes33,764 34,662 45,209 32,076 33,084 145,711 87,293 
Net income115,358 125,754 166,249 133,229 132,196 540,590 353,885 
Less (income) loss attributable to non-controlling interest452 3,193 3,923 2,257 2,307 9,825 (172)
Net income attributable to Commerce Bancshares, Inc.114,906 122,561 162,326 130,972 129,889 530,765 354,057 
Less preferred stock dividends— — — — — — 11,966 
Net income available to common shareholders$114,906 $122,561 $162,326 $130,972 $129,889 $530,765 $342,091 
Net income per common share — basic$0.94 $1.00 $1.32 $1.06 $1.05 $4.32 $2.77 
Net income per common share — diluted$0.94 $0.99 $1.32 $1.06 $1.05 $4.31 $2.77 
OTHER INFORMATION
Return on total average assets1.28 %1.40 %1.93 %1.63 %1.63 %1.55 %1.20 %
Return on average common equity (1)
13.11 13.74 19.12 15.69 15.49 15.37 10.64 
Efficiency ratio (2)
57.29 59.95 56.90 56.37 56.68 57.64 57.19 
Effective tax rate22.71 22.05 21.78 19.67 20.30 21.54 19.78 
Net yield on interest earning assets2.43 2.58 2.60 2.71 2.80 2.58 2.99 
Tax equivalent net interest income$210,424 $216,858 $211,060 $208,774 $213,017 $847,116 $842,790 
(1)Annualized net income available to common shareholders divided by average total equity less preferred stock.
(2)The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.

4

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

(Unaudited)
(In thousands)		Dec. 31, 2021Sep. 30, 2021Dec. 31, 2020
ASSETS   
Loans
     Business $5,303,535 $5,277,850 $6,546,087 
     Real estate — construction and land1,118,266 1,257,836 1,021,595 
     Real estate — business3,058,837 2,937,852 3,026,117 
     Real estate — personal2,805,401 2,769,292 2,820,030 
     Consumer2,032,225 2,049,559 1,950,502 
     Revolving home equity275,945 281,442 307,083 
     Consumer credit card575,410 569,976 655,078 
     Overdrafts6,740 4,583 3,149 
Total loans15,176,359 15,148,390 16,329,641 
Allowance for credit losses on loans(150,044)(162,775)(220,834)
Net loans15,026,315 14,985,615 16,108,807 
Loans held for sale8,615 16,043 45,089 
Investment securities:
Available for sale debt securities14,450,027 14,165,656 12,449,264 
Trading debt securities46,235 40,114 35,321 
Equity securities9,202 9,174 4,363 
Other securities194,047 184,450 156,745 
Total investment securities14,699,511 14,399,394 12,645,693 
Federal funds sold2,800 — — 
Securities purchased under agreements to resell1,625,000 1,750,000 850,000 
Interest earning deposits with banks3,971,217 1,888,545 1,747,363 
Cash and due from banks305,539 344,460 437,563 
Premises and equipment — net388,738 377,476 371,083 
Goodwill138,921 138,921 138,921 
Other intangible assets — net15,570 14,458 11,207 
Other assets506,862 582,631 567,248 
Total assets$36,689,088 $34,497,543 $32,922,974 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Deposits:   
Non-interest bearing$11,772,374 $11,622,855 $10,497,598 
Savings, interest checking and money market16,598,085 14,907,654 14,604,456 
Certificates of deposit of less than $100,000435,960 452,432 529,802 
Certificates of deposit of $100,000 and over1,006,654 1,163,343 1,314,889 
Total deposits29,813,073 28,146,284 26,946,745 
Federal funds purchased and securities sold under agreements to repurchase3,022,967 2,253,753 2,098,383 
Other borrowings12,560 4,006 802 
Other liabilities392,164 602,279 477,072 
Total liabilities33,240,764 31,006,322 29,523,002 
Stockholders’ equity:   
Common stock610,804 589,352 589,352 
Capital surplus2,689,894 2,427,544 2,436,288 
Retained earnings92,493 396,655 73,000 
Treasury stock(32,973)(92,047)(32,970)
Accumulated other comprehensive income77,080 159,166 331,377 
Total stockholders’ equity3,437,298 3,480,670 3,397,047 
Non-controlling interest11,026 10,551 2,925 
Total equity3,448,324 3,491,221 3,399,972 
Total liabilities and equity$36,689,088 $34,497,543 $32,922,974 

5

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCE SHEETS

(Unaudited)
(In thousands)		For the Three Months Ended
Dec. 31, 2021Sep. 30, 2021Jun. 30, 2021Mar. 31, 2021Dec. 31, 2020
ASSETS:
Loans:
Business$5,191,844 $5,437,498 $6,211,610 $6,532,921 $6,580,300 
Real estate — construction and land1,228,237 1,168,566 1,088,433 1,091,969 1,032,891 
Real estate — business3,003,459 2,982,847 3,014,955 3,022,979 3,029,799 
Real estate — personal2,785,095 2,775,638 2,804,388 2,826,112 2,778,462 
Consumer2,043,690 2,041,263 2,004,625 1,947,322 1,981,033 
Revolving home equity276,464 281,689 287,031 299,371 316,895 
Consumer credit card559,429 566,406 575,725 608,747 638,161 
Overdrafts4,926 5,110 3,735 3,546 3,762 
Total loans
15,093,144 15,259,017 15,990,502 16,332,967 16,361,303 
Allowance for credit losses on loans(162,428)(172,112)(200,801)(220,512)(235,484)
Net loans14,930,716 15,086,905 15,789,701 16,112,455 16,125,819 
Loans held for sale11,203 16,021 23,389 35,814 30,577 
Investment securities:
U.S. government and federal agency obligations1,009,025 727,566 719,849 725,367 774,640 
Government-sponsored enterprise obligations50,777 50,785 50,793 50,801 69,133 
State and municipal obligations2,095,517 2,039,942 1,966,673 1,958,637 1,967,408 
Mortgage-backed securities7,141,249 7,115,419 6,685,407 6,998,521 6,646,345 
Asset-backed securities3,514,541 3,028,076 2,653,928 2,085,491 1,819,467 
Other debt securities
629,643 608,642 605,772 570,115 533,646 
Unrealized gain on debt securities86,020 230,058 197,124 283,511 329,477 
Total available for sale debt securities14,526,772 13,800,488 12,879,546 12,672,443 12,140,116 
Trading debt securities
46,513 32,238 34,955 32,320 28,040 
Equity securities9,171 8,756 4,914 4,321 4,221 
Other securities 190,346 183,397 156,984 154,030 130,145 
Total investment securities14,772,802 14,024,879 13,076,399 12,863,114 12,302,522 
Federal funds sold564 792 1,338 7 355 
Securities purchased under agreements to resell1,669,835 1,633,205 937,372 849,999 849,998 
Interest earning deposits with banks2,856,992 2,602,896 2,724,782 1,480,331 1,082,644 
Other assets1,288,323 1,261,277 1,258,989 1,308,105 1,291,907 
Total assets$35,530,435 $34,625,975 $33,811,970 $32,649,825 $31,683,822 
LIABILITIES AND EQUITY:
Non-interest bearing deposits$11,919,268 $11,475,113 $11,109,198 $10,438,637 $10,275,735 
Savings1,507,199 1,484,923 1,474,391 1,333,177 1,234,481 
Interest checking and money market13,873,985 13,343,180 13,283,481 12,970,629 12,198,928 
Certificates of deposit of less than $100,000441,920 464,367 491,446 516,728 542,212 
Certificates of deposit of $100,000 and over1,105,480 1,289,665 1,354,685 1,230,075 1,339,301 
Total deposits28,847,852 28,057,248 27,713,201 26,489,246 25,590,657 
Borrowings:
Federal funds purchased20,848 13,606 23,291 37,034 48,412 
Securities sold under agreements to repurchase2,620,348 2,347,270 2,142,405 2,129,038 1,980,045 
Other borrowings1,078 347 978 831 1,013 
Total borrowings2,642,274 2,361,223 2,166,674 2,166,903 2,029,470 
Other liabilities562,102 667,786 527,401 608,212 727,569 
Total liabilities32,052,228 31,086,257 30,407,276 29,264,361 28,347,696 
Equity3,478,207 3,539,718 3,404,694 3,385,464 3,336,126 
Total liabilities and equity$35,530,435 $34,625,975 $33,811,970 $32,649,825 $31,683,822 

6

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE RATES

(Unaudited)For the Three Months Ended
Dec. 31, 2021Sep. 30, 2021Jun. 30, 2021Mar. 31, 2021Dec. 31, 2020
ASSETS: 
Loans: 
Business (1)
3.16 %3.43 %3.15 %3.09 %3.01 %
Real estate — construction and land3.61 3.51 3.56 3.54 3.72 
Real estate — business3.41 3.46 3.49 3.52 3.51 
Real estate — personal3.21 3.27 3.31 3.40 3.44 
Consumer3.65 3.71 3.84 4.02 4.07 
Revolving home equity3.47 3.46 3.43 3.38 3.37 
Consumer credit card11.06 11.29 11.22 10.97 11.60 
Overdrafts— — — — — 
Total loans3.62 3.74 3.65 3.66 3.69 
Loans held for sale5.10 4.63 4.20 3.44 3.54 
Investment securities: 
U.S. government and federal agency obligations3.11 5.74 5.52 2.54 2.63 
Government-sponsored enterprise obligations2.30 2.30 2.33 2.36 2.23 
State and municipal obligations (1)
2.26 2.35 2.41 2.46 2.44 
Mortgage-backed securities1.40 1.53 1.11 1.39 1.37 
Asset-backed securities1.03 1.08 1.25 1.39 1.59 
Other debt securities2.07 2.04 2.06 2.15 2.19 
Total available for sale debt securities1.59 1.80 1.64 1.67 1.70 
Trading debt securities (1)
1.54 1.01 1.19 1.08 1.40 
Equity securities (1)
27.64 23.92 43.10 49.56 50.71 
Other securities (1)
18.39 7.46 11.90 5.26 10.03 
Total investment securities1.82 1.89 1.78 1.72 1.81 
Federal funds sold.70 .50 .60 — 1.12 
Securities purchased under agreements to resell1.62 2.19 4.46 5.31 5.24 
Interest earning deposits with banks.15 .15 .11 .10 .10 
Total interest earning assets2.47 2.62 2.64 2.76 2.86 
LIABILITIES AND EQUITY: 
Interest bearing deposits: 
Savings.08 .08 .08 .08 .09 
Interest checking and money market.04 .05 .05 .06 .07 
Certificates of deposit of less than $100,000.14 .18 .27 .37 .51 
Certificates of deposit of $100,000 and over.14 .14 .20 .35 .47 
Total interest bearing deposits.05 .06 .07 .09 .12 
Borrowings: 
Federal funds purchased.11 .10 .05 .05 .07 
Securities sold under agreements to repurchase.08 .08 .06 .06 .06 
Other borrowings— 1.14 .82 .98 — 
Total borrowings.08 .08 .06 .06 .06 
Total interest bearing liabilities.06 %.06 %.07 %.09 %.11 %
Net yield on interest earning assets2.43 %2.58 %2.60 %2.71 %2.80 %
(1) Stated on a tax equivalent basis using a federal income tax rate of 21%.







7

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CREDIT QUALITY

 For the Three Months EndedFor the Year Ended
(Unaudited)
(In thousands, except per share data)		Dec. 31, 2021Sep. 30, 2021Jun. 30, 2021Mar. 31, 2021Dec. 31, 2020Dec. 31, 2021Dec. 31, 2020
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$162,775 $172,395 $200,527 $220,834 $236,360 $220,834 $160,682 
     Adoption of ASU 2016-13— — — — — — (21,039)
     Provision for credit losses on loans(8,474)(5,961)(27,433)(10,355)(7,510)(52,223)116,049 
     Net charge-offs (recoveries):
        Commercial portfolio:
     Business90 65 (4,909)(4)581 (4,758)3,665 
     Real estate — construction and land — — — 1 (2)1 (3)
     Real estate — business6 (5)(85)20 (7)(64)(47)
96 60 (4,994)17 572 (4,821)3,615 
        Personal banking portfolio:
     Consumer credit card2,964 2,908 5,155 8,981 5,975 20,008 25,979 
     Consumer919 496 378 763 1,160 2,556 4,444 
     Overdraft375 243 148 153 335 919 1,277 
     Real estate — personal(71)(26)(16)15 (18)(98)(291)
     Revolving home equity(26)(22)28 23 (8)3 (166)
4,161 3,599 5,693 9,935 7,444 23,388 31,243 
     Total net loan charge-offs 4,257 3,659 699 9,952 8,016 18,567 34,858 
Balance at end of period$150,044 $162,775 $172,395 $200,527 $220,834 $150,044 $220,834 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS$24,204 $22,784 $24,208 $42,430 $38,307 
NET CHARGE-OFF RATIOS (1)
Commercial portfolio:
     Business.01 %— %(.32 %)— %.04 %(.08 %).06 %
     Real estate — construction and land— — — — — — — 
     Real estate — business— — (.01)— — — — 
— — (.19)— .02 (.05).04 
Personal banking portfolio:
     Consumer credit card2.10 2.04 3.59 5.98 3.72 3.47 3.88 
     Consumer.18 .10 .08 .16 .23 .13 .23 
     Overdraft30.20 18.87 15.89 17.50 35.43 21.20 38.11 
     Real estate — personal(.01)— — — — — (.01)
     Revolving home equity(.04)(.03).04 .03 (.01)— (.05)
.29 .25 .40 .71 .52 .41 .56 
Total.11 %.10 %.02 %.25 %.19 %.12 %.22 %
CREDIT QUALITY RATIOS
Non-accrual loans to total loans.06 %.07 %.07 %.14 %.16 %
Allowance for credit losses on loans to total loans(2)
.99 1.07 1.10 1.22 1.35 
NON-ACCRUAL AND PAST DUE LOANS
  Non-accrual loans:
     Business$7,312 $8,293 $8,839 $20,215 $22,524 
     Real estate — construction and land— — — — — 
     Real estate — business214 577 655 1,572 2,230 
     Real estate — personal1,631 1,551 1,672 1,719 1,786 
   Total 9,157 10,421 11,166 23,506 26,540 
Loans past due 90 days and still accruing interest$11,726 $10,496 $12,338 $21,512 $22,190 
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).
(2) Excluding PPP loans, the allowance for credit losses on loans to total loans was 1.00% and 1.10% as of December 31, 2021 and September 30, 2021, respectively.
8
                                        
COMMERCE BANCSHARES, INC.
Management Discussion of Fourth Quarter Results
December 31, 2021
For the quarter ended December 31, 2021, net income attributable to Commerce Bancshares, Inc. (net income) amounted to $114.9 million, compared to $122.6 million in the previous quarter and $129.9 million in the same quarter last year. The decrease in net income compared to the previous quarter was primarily the result of net investment securities losses recorded this quarter compared to net gains recorded in the prior quarter and lower net interest income, partly offset by higher non-interest income and lower non-interest expense. The net yield on interest earning assets declined 15 basis points to 2.43%. Average loans declined $165.9 million compared to the previous quarter, while average available for sale debt securities grew $726.3 million, and average deposits increased $790.6 million. For the quarter, the return on average assets was 1.28%, the return on average equity was 13.11%, and the efficiency ratio was 57.3%.

Balance Sheet Review
During the 4th quarter of 2021, average loans totaled $15.1 billion, a decrease of $165.9 million from the prior quarter, and declined $1.3 billion, or 7.8%, from the same quarter last year. Compared to the previous quarter, average balances of business loans declined $245.7 million (includes a decline of $356.1 million in Paycheck Protection Program (PPP) loan balances). This decline was partially offset by growth in construction and business real estate loans of $59.7 million and $20.6 million, respectively. While period end loans only increased $28.0 million compared to the prior quarter, PPP loan balances decreased $178.8 million this quarter and totaled $129.2 million at December 31, 2021. Excluding PPP loans, period end business loans increased $204.5 million. As of December 31, 2021, 99% of round 1 and 73% of round 2 PPP loan balances have been forgiven. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $85.3 million, compared to $119.3 million in the prior quarter.

Total average available for sale debt securities increased $726.3 million over the previous quarter to $14.5 billion, at fair value. The increase in investment securities was mainly the result of growth in asset-backed and U.S. government securities. During the current quarter, purchases of securities totaled $1.4 billion with a weighted average yield of approximately 1.27%. Sales, maturities and pay downs were $956.5 million. At December 31, 2021, the duration of the investment portfolio was 3.2 years, and maturities and pay downs of approximately $3.0 billion are expected to occur during the next 12 months.

Total average deposits increased $790.6 million this quarter compared to the previous quarter. The increase in deposits mostly resulted from growth in interest checking and money market deposits and demand deposits of $530.8 million and $444.2 million,
respectively. Certificate of deposit balances declined $206.6 million. Compared to the previous quarter, total average commercial and consumer deposits grew $612.1 million and $203.8 million, respectively. The average loans to deposits ratio was 52.4% in the current quarter and 54.4% in the prior quarter. The Company’s average borrowings, which include customer repurchase agreements, were $2.6 billion in the 4th quarter of 2021 and $2.4 billion in the prior quarter.

Net Interest Income
Net interest income in the 4th quarter of 2021 amounted to $207.7 million, a decrease of $6.4 million compared to the previous quarter. On a tax equivalent basis, net interest income for the current quarter decreased $6.4 million compared to the previous quarter to $210.4 million. The decrease in net interest income was mainly due to lower income earned on loans and securities purchased under agreements to resell, partially offset by higher income earned on investment securities. The net yield on earning assets (tax equivalent) decreased to 2.43%, compared to 2.58% in the prior quarter.

Compared to the previous quarter, interest income on loans (tax equivalent) decreased $6.1 million, mostly due to $5.3 million of lower income recognized from PPP loans this quarter. Interest on construction loans grew due to higher yields and average loan balances, but was offset by lower consumer card yields and average loan balances. The yield on PPP loans increased from 7.73% to 10.80% this quarter. Excluding PPP loans, the yield on business loans was 2.83% in the 4th quarter of 2021 compared to 2.92% in the prior quarter. The average tax-equivalent yield on the loan portfolio decreased 12 basis points to 3.62% this quarter.

Interest income on investment securities (tax equivalent) increased $1.7 million compared to the prior quarter, due to higher average balances, partly offset by lower rates earned. Interest income earned on U.S. government and federal agency securities decreased, as lower average rates earned, including the impact of $2.9 million of lower inflation income from Treasury inflation-protected securities, more than offset higher average balances. This decrease was partly offset by $5.5 million in dividends received from private equity portfolio investments this quarter. At December 31, 2021, the Company recorded a $2.6 million adjustment to premium amortization, which increased interest income this quarter to reflect moderately slower forward prepayment speed estimates on mortgage-backed securities. The yield on total investment securities was 1.82% in the current quarter, compared to 1.89% in the previous quarter.

The average rate paid on interest bearing deposits totaled .05% in the 4th quarter of 2021, compared .06% in the prior quarter. Interest expense on deposits decreased $172 thousand this quarter compared to

COMMERCE BANCSHARES, INC.                                
Management Discussion of Fourth Quarter Results
December 31, 2021
the previous quarter mainly due to lower rates paid on money market accounts and certificate of deposit accounts. The overall rate paid on interest bearing liabilities was .06% in both the current and prior quarters.

Non-Interest Income
In the 4th quarter of 2021, total non-interest income amounted to $147.7 million, an increase of $12.6 million, or 9.3%, compared to the same period last year and increased $10.2 million compared to the prior quarter. The increase in non-interest income over the same period last year was mainly due to growth in trust fees and bank card fees, partially offset by lower loan fees and sales.

Total net bank card fees in the current quarter increased $4.8 million, or 12.0%, over the same period last year, and increased $2.0 million compared to the prior quarter. Net corporate card fees increased $3.6 million, or 17.0%, over the same quarter of last year mainly due to higher interchange fee income, partly offset by higher rewards expense. Net debit card fees increased $955 thousand, or 9.8%, mainly due to higher interchange fees. Net merchant income increased $104 thousand, or 2.0%, and net credit card fees increased $111 thousand, or 3.0%. Total net bank card fees this quarter were comprised of fees on corporate card ($25.0 million), debit card ($10.7 million), merchant ($5.3 million) and credit card ($3.8 million) transactions.

In the current quarter, trust fees increased $6.9 million, or 16.5%, over the same period last year, resulting mostly from higher private client fee income. Compared to the same period last year, deposit account fees increased $1.3 million, or 5.5%, mainly due to higher overdraft and return item fees and corporate cash management fees. Loan fees and sales, mostly mortgage banking revenue, declined $3.8 million, or 41.9%, compared to amounts recorded in the same quarter last year. Consumer brokerage fees increased $882 thousand, or 22.1%, compared to the same quarter last year.

Other non-interest income increased over the same period last year mainly due to a $3.7 million gain on the sale of land recorded this quarter, $818 thousand of higher tax credit sales fees, and $774 thousand of higher swap fees, partially offset by lower cash sweep commissions of $710 thousand. For the 4th quarter of 2021, non-interest income comprised 41.6% of the Company’s total revenue.

Investment Securities Gains and Losses
The Company recorded investment net losses of $9.7 million in the current quarter, compared to net gains of $13.1 million in the prior quarter and net gains of $12.3 million in the 4th quarter of 2020. Net losses on investments in the current quarter primarily resulted from net fair value losses of $6.5 million in the Company’s private equity investment portfolio, in
part due to $5.5 million in dividends paid by portfolio companies mentioned above, which reduced the fair value of the investments.

Non-Interest Expense
Non-interest expense for the current quarter amounted to $203.6 million, compared to $196.3 million in the same period last year and $211.6 million in the prior quarter. The increase in non-interest expense compared to the same period last year was mainly due to higher salaries expense, data processing and software expense, and travel and entertainment expense. The decrease in non-interest expense compared to the prior quarter was mainly due to litigation settlement expense in the prior quarter that did not reoccur.

Compared to the 4th quarter of last year, salaries and employee benefits expense increased $2.7 million, mostly due to higher full-time salaries expense. Incentive compensation was also higher, while employee benefits expense was flat. Full-time equivalent employees totaled 4,567 and 4,766 at December 31, 2021 and 2020, respectively.

Compared to the same period last year, data processing and software expense increased $1.5 million due to higher bank card processing fees and increased costs for service providers this quarter. Additionally, other non-interest expense increased $1.7 million, mainly due to an increase of $1.3 million in travel and entertainment expense.

Income Taxes
The effective tax rate for the Company was 22.7% in the current quarter, 22.0% in the previous quarter, and 20.3% in the 4th quarter of 2020.

Credit Quality
Net loan charge-offs in the 4th quarter of 2021 amounted to $4.3 million, compared to $3.7 million in the prior quarter and $8.0 million in the same period last year. The ratio of annualized net loan charge-offs to total average loans was .11% in the current quarter, .10% in the previous quarter, and .19% in the 4th quarter of last year. Net loan charge-offs on personal banking loans increased $562 thousand to $4.2 million.

In the 4th quarter of 2021, annualized net loan charge-offs on average consumer credit card loans were 2.10%, compared to 2.04% in the previous quarter, and 3.72% in the same quarter last year. Consumer loan net charge-offs were .18% of average consumer loans in the current quarter, .10% in the prior quarter and .23% in the same quarter last year.

During the 4th quarter of 2021, the economy continued to recover from the pandemic and the economic forecast utilized in the allowance for credit loss model also continued to improve. This improvement, coupled with other model inputs,
10
COMMERCE BANCSHARES, INC.                                
Management Discussion of Fourth Quarter Results
December 31, 2021
resulted in a decrease in the allowance for credit losses as of December 31, 2021. At December 31, 2021, the allowance for credit losses on loans totaled $150.0 million, or .99% of total loans and 1.00% of total loans excluding PPP loans. Additionally, the liability for unfunded lending commitments at December 31, 2021 was $24.2 million, an increase of $1.4 million over the liability at September 30, 2021.

At December 31, 2021, total non-accrual loans amounted to $9.2 million, a decrease of $1.3 million from the previous quarter. At December 31, 2021, the balance of non-accrual loans, which represented .06% of loans outstanding, included business loans of $7.3 million, personal real estate loans of $1.6 million, and business real estate loans of $214 thousand. Loans more than 90 days past due and still accruing interest totaled $11.7 million at December 31, 2021.

Other
During the 4th quarter of 2021, the Company distributed a 5% stock dividend on its common stock and paid a cash dividend of $.25 per common share (as restated for the stock dividend), representing a 2.1% increase over the same period last year. The Company purchased 696,367 shares of treasury stock during the current quarter at an average price of $70.81.

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.
11
COMMERCE BANCSHARES, INC. EARNINGS HIGHLIGHTS 4th Quarter 2021

 
CAUTIONARY STATEMENT A number of statements we will be making in our presentation and in the accompanying slides are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements of the Corporation’s plans, goals, objectives, expectations, projections, estimates and intentions. These forward- looking statements involve significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Corporation’s control). Factors that could cause the Corporation’s actual results to differ materially from such forward- looking statements made herein or by management of the Corporation are set forth in the Corporation’s 2020 Annual Report on Form 10-K, 3RD Quarter 2021 Report on Form 10-Q and the Corporation’s Current Reports on Form 8-K. 2

 
$0.94 EPS 3 • Net interest income decreased 3.0% from Q3. • Net interest margin decreased 15 bps from Q3 to 2.43%. • Non-interest income increased 7.4% over Q3. – Non-interest income to total revenue of 41.6%. • Wealth management client assets increased 3.8% over Q3 to $69.3 billion at December 31, 2021. • Non-interest expense decreased $8.0 million from Q3. • QTD average loans (excl. PPP) up 1.3% over Q3. Period ending loans (excl. PPP) up 1.4% over Q3. • QTD average deposits increased $790.6 million over Q3. • Net charge-offs to total average loans of .11% and non-accrual loans to total loans of .06%. • Tangible common equity to tangible assets of 9.01%. Highlights Well-positioned in a challenging environment 4Q2021 EARNINGS HIGHLIGHTS $151.8 million PPNR1 $114.9 million Net Income 13.11% ROACE 1 See the non-GAAP reconciliation on page 19 1.28% ROAA 57.29% Efficiency Ratio

 
Quarterly Average Balances Change vs. $ in millions 4Q21 3Q21 4Q20 Highlights Commercial1 $9,423.5 $(165.4) $(1,219.5) • Linked quarter (LQ) reflects lower PPP loans (-356MM) offset by higher core business, construction and business real estate Consumer 5,669.6 (0.5) (48.7) • LQ reflects slightly higher personal real estate and consumer loans, offset by lower consumer credit card and revolving home equity loans Total Loans $15,093.1 $(165.9) $(1,268.2) Investment Securities $14,686.8 $892.0 $2,713.7 • LQ increase due to growth in asset- backed securities and U.S. government securities Interest Earning Deposits with Banks $2,857.0 $254.1 $1,774.3 • Prudently deploying excess deposits into higher-yielding assets Deposits $28,847.9 $790.6 $3,257.2 • 2.8% quarterly growth, 12.7% annual growth Book Value per Common Share2 $28.40 $(.18) $.76 • 2.7% annual growth BALANCE SHEET HIGHLIGHTS 4 1 PPP QTD average balances were $218.9 million and $575.0 million as of December 31, 2021 and September 30, 2021, respectively 2 For the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020

 
$15.3 $16.6 $16.9 $10.3 $11.5 $11.9 $25.6 4Q20 3Q21 4Q21 $28.8$28.1 +13% $10.6 $9.6 $9.4 $5.7 $5.7 $5.7 $16.4 4Q20 3Q21 4Q21 $15.3 $15.1 -8% BALANCE SHEET 5 Loans Consumer Loans Loan Yield Commercial Loans Deposits QTD Average Balances $ billions Non-Interest Bearing Interest Bearing Deposit Interest Bearing Deposit Yield QTD Average Balances $ billions 3.69% 3.74% 3.62% .12% .06% .05%

 
LOAN PORTFOLIO 6 $ in 000s 12/31/2021 9/30/2021 12/31/2020 QoQ YoY Business $5,303,535 $5,277,850 $6,546,087 .5% -19.0% Business excl. PPP 5,174,372 4,969,914 5,185,913 4.1% -.2% Construction 1,118,266 1,257,836 1,021,595 -11.1% 9.5% Business Real Estate 3,058,837 2,937,852 3,026,117 4.1% 1.1% Personal Real Estate 2,805,401 2,769,292 2,820,030 1.3% -.5% Consumer 2,032,225 2,049,559 1,950,502 -.8% 4.2% Revolving Home Equity 275,945 281,442 307,083 -2.0% -10.1% Consumer Credit Card 575,410 569,976 655,078 1.0% -12.2% Overdrafts 6,740 4,583 3,149 47.1% 114.0% Total Loans $15,176,359 $15,148,390 $16,329,641 .2% -7.1% PPP1 129,163 307,936 1,360,174 -58.1% -90.5% Total Loans excl. PPP $15,047,196 $14,840,454 $14,969,467 1.4% .5% Period-End Balances $ in 000s 12/31/2021 9/30/2021 12/31/2020 QoQ YoY Business $5,191,844 $5,437,498 $6,580,300 -4.5% -21.1% Business excl. PPP 4,972,934 4,862,523 5,104,058 2.3% -2.6% Construction 1,228,237 1,168,566 1,032,891 5.1% 18.9% Business Real Estate 3,003,459 2,982,847 3,029,799 .7% -.9% Personal Real Estate 2,785,095 2,775,638 2,778,462 .3% .2% Consumer 2,043,690 2,041,263 1,981,033 .1% 3.2% Revolving Home Equity 276,464 281,689 316,895 -1.9% -12.8% Consumer Credit Card 559,429 566,406 638,161 -1.2% -12.3% Overdrafts 4,926 5,110 3,762 -3.6% 30.9% Total Loans $15,093,144 $15,259,017 $16,361,303 -1.1% -7.8% PPP1 218,910 574,975 1,476,242 -61.9% -85.2% Total Loans excl. PPP $14,874,234 $14,684,042 $14,885,061 1.3% -.1% QTD Average Balances 1Paycheck protection program (PPP) loans are included in the business loan category

 
$10 $5 $0 $15 $20 $25 $30 4Q20 1Q21 2Q21 3Q21 4Q21 0.09% 0.07% 0.06% 0.05% 0.00% 0.05% 0.10% 0.15% 0.12% BALANCE SHEET: LOW-COST DEPOSITS Non Interest-Bearing Deposits (left) Interest-bearing Deposits (left) Av er ag e Ba la nc e $ in b illi on s Cost of Interest-Bearing Deposits (right) 7 – 41% of Q4 average deposits were non-interest bearing. – Cost of interest-bearing deposits declined slightly.

 
EARNING ASSET OPTIMIZATION EXCLUDING LOANS 8 Av er ag e Ba la nc e $ in b illi on s 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% $10.0 $15.0 $20.0 $0.0 $5.0 $1.6 $9.5 1Q20 $8.6 4Q19 $0.7 $12.1 $0.3 $0.9 $1.0 1Q19 $0.8 $8.7 $0.7 3Q19 $0.8 $0.3 2Q19 $8.7 2Q21 $0.2 $8.6 $0.4 $10.0 3Q20 $8.5 $0.9 $0.6 $1.8 4Q202Q20 $2.6 $11.3 $13.8 $0.8 $18.0 $1.1 $12.2 $12.7 $0.8 $1.5 1Q21 $15.0 $0.7 $12.9 $0.9 $16.5 $2.7 3Q21 $9.6 $13.1 $2.9 $9.6 $9.8 $14.0 4Q21 $19.1 $14.5 $1.7 $9.7 FRB Balances3AFS Securities1 FRB Balance3 as a % of Interest Earning AssetsAsset REPOs2 1Available for Sale (AFS) securities are reported at fair value 2Asset REPOs defined as Securities purchased under agreements to resell 3Interest earning deposits at Federal Reserve Bank Prudently deploying excess deposits into higher-yielding assets

 
Change vs. $ in millions 4Q21 3Q21 4Q20 Highlights Net Interest Income $207.7 $(6.4) $(2.1) • Linked quarter (LQ) decrease due to lower interest earned on loans and securities purchased under agreements to resell, partially offset by higher income earned on investment securities Non-Interest Income $147.7 $10.2 $12.6 • See page 10 Non-Interest Expense $203.6 $(8.0) $7.3 • See page 11 Pre-Tax, Pre-Provision Net Revenue1 $151.8 $11.9 $3.2 Investment Securities Gains, Net $(9.7) $(22.8) $(22.0) • Q4 included net fair value losses of $6.5 million on private equity investment portfolio, in part due to $5.5 million in dividends paid by companies in the portfolio Provision for Credit Losses $(7.1) $.3 $(2.7) • Decrease compared to the prior year (PY) reflects $3.8 million less net charge-offs Net-Income Available to Common Shareholders $114.9 $(7.7) $(15.0) For the three months ended 4Q21 3Q21 4Q20 Net Income per Common Share – Diluted $.94 $.99 $1.05 Net Yield on Interest Earning Assets 2.43% 2.58% 2.80% • Compared to 4Q20, lower earning asset yields were slightly offset by lower deposit costs INCOME STATEMENT HIGHLIGHTS 1 See the non-GAAP reconciliation on page 19 9

 
Change vs. $ in millions 4Q21 3Q21 4Q20 Highlights Bank Card Transaction Fees $44.8 $2.0 $4.8 • Increase of 12.0% over prior year (PY) driven by growth in net corporate card and net debit card fees Trust Fees $48.9 – $6.9 • Increase of 16.5% over PY resulting mostly from higher private client fee income Deposit Account Charges and Other Fees $25.5 $.3 $1.3 • Increase of 5.5% over PY as fees continue to rebound Capital Market Fees $3.8 – – Consumer Brokerage Services $4.9 – $0.9 • Consumer brokerage fees up 22.1%, compared to PY, mainly due to growth in advisory and life insurance fees Loan Fees and Sales $5.2 $(1.6) $(3.8) • Decline mostly in mortgage banking revenue, down 53.6% from PY Other $14.6 $9.5 $2.4 • Increase over PY mainly due to a gain on the sale of land, higher tax credit sales fees and higher swap fees, partially offset by lower cash sweep commissions Total Non-Interest Income $147.7 $10.2 $12.6 NON-INTEREST INCOME HIGHLIGHTS 10

 
Change vs. $ in millions 4Q21 3Q21 4Q20 Highlights Salaries and Employee Benefits $132.6 $(.2) $2.7 • Increase of 2.0% over prior year (PY) mostly due to higher full-time salaries and incentive compensation Net Occupancy $12.3 — $.7 Equipment $4.7 $.3 $.1 Supplies $4.4 $(.1) $.2 Data Processing and Software $25.8 $.2 $1.5 • Increase of 6.0% over PY due to higher bank card processing fees and an increase in costs for service providers Marketing $5.4 $(.2) $.4 Other $18.3 $(7.9) $1.7 • Increase of 9.9% over PY mainly due to an increase in travel and entertainment expense. Linked quarter (LQ) lower due to Q3 non-recurring litigation expense Total Non-Interest Expense $203.6 $(8.0) $7.3 NON-INTEREST EXPENSE HIGHLIGHTS 11

 
12 PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) $135 $149 $210 $196 4Q2020 $345 $138 $140 $214 $212 3Q2021 $352 $148 $152 $208 $204 4Q2021 $355 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 4Q2021 Comparison vs. 4Q2020 2.2% vs. 3Q2021 8.5% See the non-GAAP reconciliation on page 19

 
Average Loan to Deposit Ratio3 SOUND CAPITAL AND LIQUIDITY POSITION 13 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of September 30, 2021 2Period-end balances, as of December 31, 2021 3Includes loans held for sale, for the quarter ended December 31, 2021 14.6% 14.3% 14.0% 14.0% 13.5% 12.4% 12.3% 12.3% 12.1% 12.0% 12.0% 11.9% 11.6% 11.3% 11.3% 11.2% 11.1% 10.7% 10.3% 9.9% BXS ONB UMPQ ASB PNFP CBSH HWC SSB WBS FMBI SFNC VLY CFR UMBF BOKF FULT FNB WTFC OZK UBSI Peer Median: 12.0% Core Deposits $28.4 Billion2 Large, stable deposit base Loan to Deposit Ratio Total Deposits 52% Average Loan to Deposit Ratio178% Peer Average Commerce 95%5% Core Deposits - Non-Interest Bearing - Interest Checking - Savings and Money Market Certificates of Deposit

 
$8.0 $3.7 $4.3 $11.2 $2.5 3Q214Q20 4Q21 MAINTAINING STRONG CREDIT QUALITY 14 Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $220.8 $162.8 $150.0 $306.1 $261.1 3Q21 4Q214Q20 Allowance for Credit Losses on Loans (ACL) $ in millions ACL - CBSH ACL - Peer Average ACL / Total Loans - CBSH $26.5 $10.4 $9.2 $141.9 $108.8 4Q20 4Q213Q21 Non-Accrual Loans (NALs) $ in millions NALs - CBSH NALs - Peer Average 8.3x 15.6x 16.4x 2.6x 3.1x 4Q20 3Q21 4Q21 Allowance for Credit Losses on Loans (ACL) to NALs ACL / NALs - CBSH ACL / NALs - Peer Average Percentages are illustrative and not to scale; Peer Banks include: ASB, BXS, OZK, BOKF, CFR, FNB, FMBI, FULT, HWC, ONB, PNFP, SFNC, SSB, UMBF, UMPQ, UBSI, VLY, WBS, WTFC 1As a percentage of average loans (excluding loans held for sale) NALs / Total Loans - CBSH NCO/Average Loans1 – Peer Average .16% NALs / Total Loans – Peer Average .07% .06% .71% .55% ACL / Total Loans – Peer Average 1.35% 1.07% .99% 1.49% 1.33% .19% .10% .11% .22% .05%

 
PAYCHECK PROTECTION PROGRAM IMPACT AND UPDATE 15 Yield and Interest Income2 Q4 2021, $ in millions 3.16% 10.80% 2.83% Yield Business Loans PPP Yield and Fee Recognition Business Loans (ex PPP) $41.4 $6.0 $35.4 Interest Income Total Loan Originations1: $1.9 Billion Total SBA Fees: $60.4 Million 1Includes Round 1 and Round 2 fundings. Period-end balance as of 12/31/2021 was $129.2 million; 2Tax equivalent basis 93% 7%Forgiven Remaining 95% 5%Recognized Remaining

 
PAYCHECK PROTECTION PROGRAM IMPACT AND UPDATE 16 Loan Portfolio Impact QTD Average Balances, $ in millions $5,494 $5,517 $5,203 $5,104 $5,159 $4,947 $4,863 $4,973 $1,244 $1,506 $1,476 $1,374 $1,264 1Q20 $6,211$6,709 4Q202Q20 3Q20 $6,533 1Q21 2Q21 $575 4Q213Q21 $219 $5,494 $6,761 $6,580 $5,437 $5,192 Interest Income Impact $ in millions $47.9 $41.6 $38.3 $38.1 $37.7 $36.9 $35.8 $35.4 $7.3 $11.4 $11.7 $12.0 $11.9 $11.2 $6.0 4Q213Q212Q211Q20 2Q20 1Q213Q20 4Q20 $47.9 $48.9 $49.7 $49.8 $49.7 $48.8 $47.0 $41.4 Business Loans (excl PPP) PPP Loans Business Loans1 (excl PPP) PPP Loans 1Tax equivalent basis

 
ALLOCATION OF ALLOWANCE 17 CECL allowances reflect the economic and market outlook September 30, 2021 December 31, 2021 $ in millions Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Business $ 41.0 .78% $ 43.9 .83% Bus R/E 32.3 1.10% 30.7 1.00% Construction 24.8 1.97% 23.2 2.07% Commercial total $ 98.2 1.04% $ 97.8 1.03% Consumer 11.4 .56% 10.1 .50% Consumer CC 46.4 8.15% 35.5 6.16% Personal R/E 5.4 .19% 5.3 .19% Revolving H/E 1.1 .40% 1.2 .44% Overdrafts .3 6.66% .2 2.67% Consumer total $ 64.6 1.14% $ 52.3 .92% Allowance for credit losses on loans $ 162.8 1.07% $ 150.0 .99% 1.47% 1.44% 1.22% 1.07% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% $200 $250 $100 $150 2Q21 $200.5 1/1/2020 $139.6 0.95% $171.7 1.14% 1Q20 $240.7 2Q20 $236.4 3Q20 $220.8 1.35% 4Q20 1Q21 $172.4 1.10% $162.8 4Q213Q21 $150.0 0.99% Allowance for Credit Losses (ACL) on Loans ACL - Loans (left) ACL / Total Loans (right) $ in millions

 
Quick Facts: Small Business Investment Company (SBIC) founded in 1959 Nationwide footprint with Greater Midwest Focus 37 Portfolio Companies Representing $807 million in Revenue Over 3,300 Employees Fair Value as of December 31, 2021: $147.4 million Investment Criteria • Manufacturing, distribution and certain service companies • Cash flow positive • Good management • Consistent financial performers • Operate in niche markets • Significant and defensible market positions • Differentiated products and services • Scalable business platforms Target Parameters • Revenues - $10 million to $100 million • EBITDA - $2 million to $7 million CAPITAL FOR BUSINESS® A middle-market private equity firm focused on the success of industrial growth companies Transaction Types Management buyouts Leveraged buyouts Succession plans Recapitalizations Corporate divestitures Investment Structures Subordinated debt Preferred stock Common stock Warrants Other Information Co-investors Majority control Target 5-7 year hold period Management participation 18

 
NON-GAAP RECONCILIATIONS 19 For The Three Months Ended (DOLLARS IN THOUSANDS) Dec. 31, 2021 Sept. 30, 2021 Dec. 31, 2020 A Net Interest Income $ 207,657 $ 214,037 $ 209,763 B Non-Interest Income $ 147,699 $ 137,506 $ 135,117 C Non-Interest Expense $ 203,582 $ 211,620 $ 196,310 Pre-Provision Net Revenue (A+B-C) $ 151,774 $ 139,923 $ 148,570 Pre-tax, Pre-provision Net Revenue