cbsh-20230418
False000002235600000223562023-04-182023-04-18

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): April 18, 2023

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 April 18, 2023 by Commerce Bancshares, Inc. announcing First Quarter 2023 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 April 18, 2023
99.2    Slide presentation for investors and analysts dated April 18, 2023
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: April 18, 2023


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 18, 2023

COMMERCE BANCSHARES, INC. REPORTS
FIRST QUARTER EARNINGS PER SHARE OF $.95

Commerce Bancshares, Inc. announced earnings of $.95 per share for the three months ended March 31, 2023, compared to $.92 per share in the same quarter last year and $1.05 per share in the fourth quarter of 2022. Net income for the first quarter of 2023 amounted to $119.5 million, compared to $118.2 million in the first quarter of 2022 and $131.6 million in the prior quarter.

“Our first quarter results are the product of the consistent and conservative business model that Commerce has executed for nearly 160 years,” said John Kemper, President and Chief Executive Officer.

On deposit balances, Kemper added, “We saw normal seasonal deposit outflows in January, but experienced minimal flows throughout the remainder of the quarter, reflecting the strength and diversity of our deposit portfolio.

“Although disruption from recent bank failures may be felt across the industry for a period of time, we see this as a moment for our franchise to differentiate itself as a safe haven, and bring peace of mind to customers who put a lot of trust in Commerce and in the banking system.”

“Our stakeholders can rest assured that we have ample liquidity and capital to weather any events to come, and we are well-positioned to accommodate our customers’ lending, deposit, and service needs.”

First Quarter 2023 Financial Highlights:

•Net interest income was $251.6 million, a $3.0 million decrease from the prior quarter. The net yield on interest earning assets increased 8 basis points to 3.26%.

•Non-interest income totaled $137.6 million, an increase of $5.8 million compared to the same quarter last year.

•Net securities losses of $306 thousand compared to net gains of $8.9 million in the prior quarter.

•Non-interest expense totaled $224.1 million, an increase of $18.5 million compared to the same quarter last year.

•Average loan balances totaled $16.4 billion, an increase of $518.9 million, or 3.3%, over the prior quarter.

1
Exhibit 99.1
•Total average available for sale debt securities decreased 4.8%, or $591.1 million, from the prior quarter to $11.8 billion, at fair value. During the first quarter of 2023, the unrealized loss on available for sale securities decreased $190.0 million to $1.3 billion, at period end.

•Average deposits declined $1.4 billion, or 5.1%, from the prior quarter. The average rate paid on interest bearing deposits was .71%.

•The ratio of annualized net loan charge-offs to average loans was .17% compared to .14% in the prior quarter.

•Non-accrual loans totaled $7.8 million compared to $8.3 million in the prior quarter. Non-accrual loans were .05% of total loans.

•The allowance for credit losses on loans increased $9.2 million during the first quarter to $159.3 million, and at March 31, 2023, the ratio of the allowance for credit losses on loans to total loans was .96%, compared to .92% at December 31, 2022.

•The Company purchased 547,381 shares of its common stock this quarter at an average price of $65.93.

•Total assets at March 31, 2023 were $32.0 billion, an increase of $128.9 million, or .4%, over the prior quarter.

•For the quarter, the return on average assets was 1.54%, the return on average equity was 18.75%, and the efficiency ratio was 57.5%.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, investment management and securities brokerage. One of its subsidiaries, Commerce Bank, leverages nearly 160 years of proven strength and experience to help individuals and businesses solve financial challenges. In addition to offering payment solutions across the U.S., Commerce Bank currently operates full-service banking facilities across the Midwest including the St. Louis and Kansas City metropolitan areas, Springfield, Central Missouri, Central Illinois, Wichita, Tulsa, Oklahoma City, and Denver. 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
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, 2023Dec. 31, 2022Mar. 31, 2022
FINANCIAL SUMMARY
Net interest income$251,623 $254,641 $208,786 
Non-interest income137,612 136,825 131,769 
Total revenue389,235 391,466 340,555 
Investment securities gains (losses)(306)8,904 7,163 
Provision for credit losses11,456 15,477 (9,858)
Non-interest expense224,107 216,740 205,648 
Income before taxes153,366 168,153 151,928 
Income taxes32,813 34,499 31,902 
Non-controlling interest expense (income)1,101 2,026 1,872 
Net income attributable to Commerce Bancshares, Inc.$119,452 $131,628 $118,154 
Earnings per common share:  
Net income — basic$0.95 $1.05 $0.92 
Net income — diluted$0.95 $1.04 $0.92 
Effective tax rate21.55 %20.77 %21.26 %
Fully-taxable equivalent net interest income$253,411 $256,675 $211,393 
Average total interest earning assets (1)
$31,568,594 $31,991,224 $34,937,086 
Diluted wtd. average shares outstanding124,258,981 124,589,323 126,646,900 
RATIOS  
Average loans to deposits (2)
64.99 %59.73 %51.90 %
Return on total average assets1.54 1.65 1.33 
Return on average equity (3)
18.75 21.88 14.41 
Non-interest income to total revenue35.35 34.95 38.69 
Efficiency ratio (4)
57.49 55.26 60.29 
Net yield on interest earning assets3.26 3.18 2.45 
EQUITY SUMMARY  
Cash dividends per share$.270 $.252 $.252 
Cash dividends on common stock$33,759 $31,648 $32,143 
Book value per share (5)
$21.51 $19.85 $23.43 
Market value per share (5)
$58.35 $68.07 $68.18 
High market value per share$70.20 $72.60 $71.16 
Low market value per share$55.72 $63.17 $63.12 
Common shares outstanding (5)
124,720,710 124,999,100 126,925,176 
Tangible common equity to tangible assets (6)
7.92 %7.32 %8.09 %
Tier I leverage ratio10.61 %10.34 %9.07 %
OTHER QTD INFORMATION 
Number of bank/ATM locations275 275 285 
Full-time equivalent employees4,636 4,594 4,563 
(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 2022.
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, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022
Interest income$308,857 $286,377 $262,666 $238,154 $211,782 
Interest expense57,234 31,736 16,293 5,769 2,996 
Net interest income251,623 254,641 246,373 232,385 208,786 
Provision for credit losses11,456 15,477 15,290 7,162 (9,858)
Net interest income after credit losses240,167 239,164 231,083 225,223 218,644 
NON-INTEREST INCOME   
Trust fees45,328 44,710 45,406 46,792 47,811 
Bank card transaction fees46,654 44,588 45,638 43,873 42,045 
Deposit account charges and other fees21,752 21,989 24,521 25,564 22,307 
Consumer brokerage services5,085 4,518 5,085 5,068 4,446 
Capital market fees3,362 3,386 3,393 3,327 4,125 
Loan fees and sales2,589 2,566 3,094 3,246 4,235 
Other12,842 15,068 11,377 11,557 6,800 
Total non-interest income137,612 136,825 138,514 139,427 131,769 
INVESTMENT SECURITIES GAINS (LOSSES), NET(306)8,904 3,410 1,029 7,163 
NON-INTEREST EXPENSE   
Salaries and employee benefits144,373 138,458 137,393 142,243 135,953 
Data processing and software28,154 27,991 28,050 27,635 27,016 
Net occupancy12,759 11,774 12,544 12,503 12,296 
Equipment4,850 5,021 5,036 4,734 4,568 
Supplies and communication4,590 4,446 4,581 4,361 4,713 
Marketing5,471 5,419 6,228 5,836 6,344 
Other23,910 23,631 19,052 16,193 14,758 
Total non-interest expense224,107 216,740 212,884 213,505 205,648 
Income before income taxes153,366 168,153 160,123 152,174 151,928 
Less income taxes32,813 34,499 33,936 32,021 31,902 
Net income120,553 133,654 126,187 120,153 120,026 
Less non-controlling interest expense (income)1,101 2,026 3,364 4,359 1,872 
Net income attributable to Commerce Bancshares, Inc.$119,452 $131,628 $122,823 $115,794 $118,154 
Net income per common share — basic$0.95 $1.05 $0.97 $0.92 $0.92 
Net income per common share — diluted$0.95 $1.04 $0.97 $0.92 $0.92 
OTHER INFORMATION
Return on total average assets1.54 %1.65 %1.48 %1.36 %1.33 %
Return on average equity (1)
18.75 21.88 17.84 16.29 14.41 
Efficiency ratio (2)
57.49 55.26 55.19 57.29 60.29 
Effective tax rate21.55 20.77 21.65 21.66 21.26 
Net yield on interest earning assets3.26 3.18 3.01 2.79 2.45 
Fully-taxable equivalent net interest income$253,411 $256,675 $248,737 $235,010 $211,393 
(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, 2023Dec. 31, 2022Mar. 31, 2022
ASSETS   
Loans
     Business $5,704,467 $5,661,725 $5,508,508 
     Real estate — construction and land1,437,419 1,361,095 1,144,411 
     Real estate — business3,486,543 3,406,981 3,109,668 
     Real estate — personal2,952,042 2,918,078 2,820,076 
     Consumer2,094,389 2,059,088 2,053,160 
     Revolving home equity295,478 297,207 264,401 
     Consumer credit card558,669 584,000 544,579 
     Overdrafts6,515 14,957 14,211 
Total loans16,535,522 16,303,131 15,459,014 
Allowance for credit losses on loans(159,317)(150,136)(134,710)
Net loans16,376,205 16,152,995 15,324,304 
Loans held for sale6,162 4,964 8,908 
Investment securities:
Available for sale debt securities11,228,616 12,238,316 14,780,494 
Trading debt securities41,584 43,523 31,380 
Equity securities12,528 12,304 9,284 
Other securities268,417 225,034 199,576 
Total investment securities11,551,145 12,519,177 15,020,734 
Federal funds sold27,060 49,505 — 
Securities purchased under agreements to resell825,000 825,000 1,825,000 
Interest earning deposits with banks1,341,854 389,140 1,260,813 
Cash and due from banks351,210 452,496 326,549 
Premises and equipment — net428,169 418,909 394,028 
Goodwill138,921 138,921 138,921 
Other intangible assets — net14,918 15,234 15,885 
Other assets944,212 909,590 671,651 
Total assets$32,004,856 $31,875,931 $34,986,793 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Deposits:   
Non-interest bearing$8,685,234 $10,066,356 $11,428,372 
Savings, interest checking and money market14,419,741 15,126,981 16,751,632 
Certificates of deposit of less than $100,000468,667 387,336 422,992 
Certificates of deposit of $100,000 and over1,109,818 606,767 716,345 
Total deposits24,683,460 26,187,440 29,319,341 
Federal funds purchased and securities sold under agreements to repurchase2,784,559 2,841,734 2,317,461 
Other borrowings1,507,776 9,672 9,057 
Other liabilities346,649 355,508 367,532 
Total liabilities29,322,444 29,394,354 32,013,391 
Stockholders’ equity:   
Common stock629,319 629,319 610,804 
Capital surplus2,919,060 2,932,959 2,678,025 
Retained earnings117,313 31,620 178,504 
Treasury stock(59,670)(41,743)(72,293)
Accumulated other comprehensive income (loss)(940,498)(1,086,864)(434,400)
Total stockholders’ equity2,665,524 2,465,291 2,960,640 
Non-controlling interest16,888 16,286 12,762 
Total equity2,682,412 2,481,577 2,973,402 
Total liabilities and equity$32,004,856 $31,875,931 $34,986,793 

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

(Unaudited)
(In thousands)		For the Three Months Ended
Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022
ASSETS:
Loans:
Business$5,656,104 $5,478,241 $5,317,696 $5,385,181 $5,324,172 
Real estate — construction and land1,410,835 1,268,900 1,288,721 1,225,267 1,134,902 
Real estate — business3,478,382 3,300,697 3,258,128 3,163,508 3,095,068 
Real estate — personal2,933,750 2,886,686 2,844,376 2,825,578 2,808,980 
Consumer2,067,385 2,089,912 2,101,622 2,070,560 2,040,200 
Revolving home equity296,748 293,681 280,923 272,280 273,859 
Consumer credit card556,223 559,463 550,058 537,681 540,844 
Overdrafts4,449 7,428 4,438 5,524 5,178 
Total loans
16,403,876 15,885,008 15,645,962 15,485,579 15,223,203 
Allowance for credit losses on loans(150,117)(143,285)(137,833)(134,670)(149,685)
Net loans16,253,759 15,741,723 15,508,129 15,350,909 15,073,518 
Loans held for sale5,708 6,567 7,170 7,933 9,383 
Investment securities:
U.S. government and federal agency obligations1,099,067 1,055,602 1,113,442 1,119,305 1,103,749 
Government-sponsored enterprise obligations87,086 55,732 55,753 55,762 51,770 
State and municipal obligations1,793,756 1,990,643 2,052,908 2,126,380 2,077,600 
Mortgage-backed securities6,454,408 6,605,936 6,847,912 7,158,252 7,316,609 
Asset-backed securities3,233,757 3,714,092 3,870,953 4,038,113 3,933,061 
Other debt securities
528,941 560,951 587,026 643,463 636,247 
Unrealized loss on debt securities(1,387,196)(1,582,061)(1,064,534)(851,110)(174,297)
Total available for sale debt securities11,809,819 12,400,895 13,463,460 14,290,165 14,944,739 
Trading debt securities
45,757 44,626 35,621 43,904 40,686 
Equity securities12,458 10,534 8,838 9,094 9,498 
Other securities 229,867 219,354 208,708 195,090 192,311 
Total investment securities12,097,901 12,675,409 13,716,627 14,538,253 15,187,234 
Federal funds sold38,978 27,683 13,486 4,269 1,053 
Securities purchased under agreements to resell825,000 1,174,457 1,379,341 1,703,569 1,733,887 
Interest earning deposits with banks809,935 640,039 980,273 1,248,942 2,608,029 
Other assets1,376,551 1,339,554 1,256,498 1,238,493 1,304,400 
Total assets$31,407,832 $31,605,432 $32,861,524 $34,092,368 $35,917,504 
LIABILITIES AND EQUITY:
Non-interest bearing deposits$9,114,512 $10,360,834 $10,758,353 $11,209,680 $11,544,701 
Savings1,550,215 1,567,113 1,595,857 1,609,694 1,563,093 
Interest checking and money market13,265,485 13,693,974 14,423,713 14,847,306 14,949,727 
Certificates of deposit of less than $100,000415,367 388,304 397,071 411,655 429,852 
Certificates of deposit of $100,000 and over903,393 596,703 578,158 648,728 862,232 
Total deposits25,248,972 26,606,928 27,753,152 28,727,063 29,349,605 
Borrowings:
Federal funds purchased493,721 143,630 51,929 113,128 23,356 
Securities sold under agreements to repurchase2,418,726 2,260,263 2,199,866 2,258,184 2,712,468 
Other borrowings551,267 179,552 2,010 2,029 768 
Total borrowings3,463,714 2,583,445 2,253,805 2,373,341 2,736,592 
Other liabilities112,052 28,745 123,691 139,986 505,644 
Total liabilities28,824,738 29,219,118 30,130,648 31,240,390 32,591,841 
Equity2,583,094 2,386,314 2,730,876 2,851,978 3,325,663 
Total liabilities and equity$31,407,832 $31,605,432 $32,861,524 $34,092,368 $35,917,504 

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

(Unaudited)For the Three Months Ended
Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022
ASSETS: 
Loans: 
Business (1)
5.31 %4.68 %3.94 %3.16 %2.93 %
Real estate — construction and land7.33 6.80 5.27 4.09 3.76 
Real estate — business5.65 5.15 4.40 3.70 3.38 
Real estate — personal3.61 3.45 3.36 3.27 3.28 
Consumer5.31 4.77 4.17 3.62 3.59 
Revolving home equity7.03 5.89 4.82 3.69 3.48 
Consumer credit card13.68 12.64 12.05 11.32 11.35 
Overdrafts— — — — — 
Total loans5.56 5.03 4.37 3.72 3.54 
Loans held for sale10.30 10.09 8.80 8.14 6.48 
Investment securities: 
U.S. government and federal agency obligations1.90 2.01 4.51 4.93 3.42 
Government-sponsored enterprise obligations3.21 2.36 2.36 2.39 2.33 
State and municipal obligations (1)
2.26 2.29 2.27 2.30 2.29 
Mortgage-backed securities2.06 1.88 1.93 1.99 1.98 
Asset-backed securities2.01 1.96 1.62 1.35 1.13 
Other debt securities1.93 1.89 1.93 1.97 2.00 
Total available for sale debt securities2.07 1.97 2.09 2.08 1.91 
Trading debt securities (1)
4.59 3.81 2.74 2.46 1.84 
Equity securities (1)
23.24 28.44 27.11 26.90 26.00 
Other securities (1)
7.11 6.67 7.09 22.38 5.91 
Total investment securities2.18 2.07 2.18 2.36 1.97 
Federal funds sold5.09 4.27 2.77 1.79 .39 
Securities purchased under agreements to resell1.94 2.36 1.72 1.03 1.24 
Interest earning deposits with banks4.67 3.69 2.25 .78 .18 
Total interest earning assets4.00 3.59 3.21 2.86 2.49 
LIABILITIES AND EQUITY: 
Interest bearing deposits: 
Savings.05 .06 .04 .04 .05 
Interest checking and money market.61 .38 .20 .06 .04 
Certificates of deposit of less than $100,0001.39 .73 .41 .20 .13 
Certificates of deposit of $100,000 and over2.98 1.42 .60 .29 .20 
Total interest bearing deposits.71 .40 .21 .07 .05 
Borrowings: 
Federal funds purchased4.59 3.56 2.41 .79 .12 
Securities sold under agreements to repurchase2.93 2.29 1.37 .48 .10 
Other borrowings4.94 4.02 1.78 2.37 .53 
Total borrowings3.49 2.48 1.39 .50 .10 
Total interest bearing liabilities1.20 %.69 %.34 %.12 %.06 %
Net yield on interest earning assets3.26 %3.18 %3.01 %2.79 %2.45 %
(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, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$150,136 $143,377 $138,039 $134,710 $150,044 
     Provision for credit losses on loans15,948 12,404 10,150 7,287 (10,686)
     Net charge-offs (recoveries):
        Commercial portfolio:
     Business230 496 461 19 77 
     Real estate — construction and land — — — — — 
     Real estate — business(4)(4)(8)(1)(7)
226 492 453 18 70 
        Personal banking portfolio:
     Consumer credit card4,325 3,467 2,882 2,937 3,372 
     Consumer1,275 1,522 827 633 808 
     Overdraft978 230 703 425 358 
     Real estate — personal(11)(40)(15)(41)22 
     Revolving home equity(26)(26)(38)(14)18 
6,541 5,153 4,359 3,940 4,578 
     Total net loan charge-offs 6,767 5,645 4,812 3,958 4,648 
Balance at end of period$159,317 $150,136 $143,377 $138,039 $134,710 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS$28,628 $33,120 $30,047 $24,907 $25,032 
NET CHARGE-OFF RATIOS (1)
Commercial portfolio:
     Business.02 %.04 %.03 %— %.01 %
     Real estate — construction and land— — — — — 
     Real estate — business— — — — — 
.01 .02 .02 — — 
Personal banking portfolio:
     Consumer credit card3.15 2.46 2.08 2.19 2.53 
     Consumer.25 .29 .16 .12 .16 
     Overdraft89.15 12.28 62.85 30.86 28.04 
     Real estate — personal— (.01)— (.01)— 
     Revolving home equity(.04)(.04)(.05)(.02).03 
.45 .35 .30 .28 .33 
Total.17 %.14 %.12 %.10 %.12 %
CREDIT QUALITY RATIOS
Non-accrual loans to total loans.05 %.05 %.05 %.05 %.05 %
Allowance for credit losses on loans to total loans.96 .92 .90 .88 .87 
NON-ACCRUAL AND PAST DUE LOANS
  Non-accrual loans:
     Business$6,361 $6,751 $5,645 $6,314 $6,756 
     Real estate — construction and land— — — — — 
     Real estate — business171 189 149 167 190 
     Real estate — personal1,269 1,366 1,390 1,436 1,389 
   Total 7,801 8,306 7,184 7,917 8,335 
Loans past due 90 days and still accruing interest$14,800 $15,830 $12,538 $11,909 $10,670 
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).

8
                                        
COMMERCE BANCSHARES, INC.
Management Discussion of First Quarter Results
March 31, 2023
For the quarter ended March 31, 2023, net income amounted to $119.5 million, compared to $131.6 million in the previous quarter and $118.2 million in the same quarter last year. The decrease in net income compared to the previous quarter was primarily the result of net realized investment securities losses compared to net gains recorded in the prior quarter, lower net interest income and higher non-interest expense. These decreases to income were partly offset by a decrease in the provision for credit losses. The net yield on interest earning assets grew eight basis points to 3.26%. Average loans grew $518.9 million compared to the previous quarter, while average deposits and average available for sale debt securities declined $1.4 billion and $591.1 million, respectively. For the quarter, the return on average assets was 1.54%, the return on average equity was 18.75%, and the efficiency ratio was 57.5%.

Balance Sheet Review
During the 1st quarter of 2023, average loans totaled $16.4 billion, an increase of $518.9 million over the prior quarter, and $1.2 billion, or 7.8%, over the same quarter last year. Compared to the previous quarter, average balances of business, business real estate, and construction loans grew $177.9 million, $177.7 million, and $141.9 million, respectively. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $3.2 million, compared to $2.4 million in the prior quarter.

Total average available for sale debt securities decreased $591.1 million compared to the previous quarter to $11.8 billion, at fair value. The decrease in investment securities was mainly the result of lower balances of mortgage-backed, other asset-backed, and state and municipal securities. During the 1st quarter of 2023, the unrealized loss on available for sale securities decreased $190.0 million to $1.3 billion, and sales, maturities and pay downs were $1.3 billion. At March 31, 2023, the duration of the available for sale investment portfolio was 3.9 years. The Company does not have any investment securities classified as held-to-maturity.

Total average deposits decreased $1.4 billion this quarter compared to the previous quarter. The decrease in deposits mostly resulted from lower demand deposits and interest checking and money market deposits of $1.2 billion and $428.5 million, respectively, partly offset by higher certificate of deposit balances of $333.8 million. Compared to the previous quarter, total average commercial and consumer deposits declined $868.9 million and $530.1 million, respectively, while average wealth deposits increased $39.8 million. The average loans to deposits ratio was 65.0% in the current quarter and 59.7% in the prior quarter. The Company’s average borrowings, which included customer repurchase agreements of $2.4 billion, were $3.5 billion in the 1st quarter of 2023 and $2.6 billion in the prior quarter.


Net Interest Income
Net interest income in the 1st quarter of 2023 amounted to $251.6 million, a decrease of $3.0 million compared to the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter decreased $3.3 million from the previous quarter to $253.4 million. The decrease in net interest income was due to higher interest expense, partly offset by higher interest earned on loans. The net yield (FTE) on earning assets increased to 3.26%, compared to 3.18% in the prior quarter.

Compared to the previous quarter, interest income on loans (FTE) increased $23.4 million, due to higher average rates earned on all loan categories, coupled with higher average balances of construction, business, and business real estate loans. The average yield (FTE) on the loan portfolio increased 53 basis points to 5.56% this quarter.

Interest income on investment securities (FTE) decreased $1.8 million compared to the prior quarter, due to lower average balances, partly offset by higher rates earned. Interest income earned on U.S. government and federal agency securities decreased due to lower rates earned, which included the impact of $652 thousand in lower inflation income from Treasury inflation-protected securities this quarter. At March 31, 2023, the Company recorded an $802 thousand adjustment to premium amortization, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. The average yield (FTE) on total investment securities was 2.18% in the current quarter, compared to 2.07% in the previous quarter.

The average rate paid on interest bearing deposits totaled .71% in the current quarter compared to .40% in the prior quarter. Interest expense on deposits increased $11.8 million this quarter compared to the previous quarter, while interest expense on borrowings increased $13.6 million, due to a 101 basis point increase in the average rate paid coupled with higher average borrowings of $880.3 million. The overall rate paid on interest bearing liabilities was 1.20% in the current quarter compared to .69% in the prior quarter.

Non-Interest Income
In the 1st quarter of 2023, total non-interest income amounted to $137.6 million, an increase of $5.8 million compared to the same period last year and increased $787 thousand compared to the prior quarter. The increase in non-interest income compared to the same period last year was mainly due to higher bank card and sweep fees. In addition, a $2.0 million increase in fair value adjustments was recorded on the Company’s deferred compensation plan assets, which are held in a trust and recorded as both an asset and liability, affecting both other income and other expense. These increases were
9
COMMERCE BANCSHARES, INC.                                
Management Discussion of First Quarter Results
March 31, 2023
partly offset by lower trust fees and loan fees and sales. The increase in non-interest income compared to the prior quarter was mainly due to higher bank card fees, mostly offset by a gain on the sale of real estate recorded in the prior quarter that did not reoccur this quarter, and lower tax credit sales fee income.

Total net bank card fees in the current quarter increased $4.6 million, or 11.0%, compared to the same period last year, and increased $2.1 million compared to the prior quarter. Net corporate card fees increased $3.6 million, or 14.9%, over the same quarter of last year mainly due to higher interchange fee income. Net debit card fees increased $735 thousand, or 7.7%, and net merchant fees increased $371 thousand, or 7.4%, while net credit card fees decreased $47 thousand, or 1.3%. Total net bank card fees this quarter were comprised of fees on corporate card ($27.3 million), debit card ($10.3 million), merchant ($5.4 million) and credit card ($3.7 million) transactions.

In the current quarter, trust fees decreased $2.5 million, or 5.2%, from the same period last year, mostly resulting from lower private client and institutional trust fees. Compared to the same period last year, deposit account fees decreased $555 thousand, or 2.5%, mainly due to lower overdraft and return item fees of $2.7 million, partly offset by higher personal deposit account fees and corporate cash management fees of $1.0 million and $959 thousand, respectively. Loan fees and sales declined $1.6 million, or 38.9%, compared to amounts recorded in the same quarter last year, due to lower mortgage banking revenue.

Other non-interest income increased over the same period last year primarily due to higher sweep fees of $2.6 million, the deferred compensation adjustment previously mentioned, and a write down on a branch location of $965 thousand recorded in the 1st quarter of 2022. For the 1st quarter of 2023, non-interest income comprised 35.4% of the Company’s total revenue.

Investment Securities Gains and Losses
The Company recorded net securities losses of $306 thousand in the current quarter, compared to gains of $8.9 million in the prior quarter and $7.2 million in the 1st quarter of 2022. Net securities losses in the current quarter primarily resulted from losses of $3.1 million realized on sales of available for sale debt securities, mostly offset by net fair value gains of $2.3 million and a $653 thousand gain on the sale of an investment in the Company’s private equity investment portfolio.

Non-Interest Expense
Non-interest expense for the current quarter amounted to $224.1 million, compared to $205.6 million in the same period last year and $216.7 million in the prior quarter. The increase in non-interest
expense compared to the same period last year was mainly due to higher salaries and employee benefits expense, FDIC insurance expense, data processing and software expense, miscellaneous losses, travel and entertainment expense, and the deferred compensation adjustment previously mentioned. The increase in non-interest expense compared to the prior quarter was mainly due to higher salaries and employee benefits expense, FDIC insurance expense, and occupancy expense, partly offset by lower travel and entertainment and legal and professional fees expense.

Compared to the 1st quarter of last year, salaries and employee benefits expense increased $8.4 million, mostly due to higher full-time salaries expense of $7.6 million, or 8.9%, and higher employee benefits expense of $1.4 million. Full-time equivalent employees totaled 4,636 and 4,563 at March 31, 2023 and 2022, respectively.

Compared to the same period last year, data processing and software expense increased $1.1 million due to higher bank card fees expense and increased costs for service providers. Other non-interest expense increased $9.2 million, mostly due to growth in FDIC insurance, deferred compensation, miscellaneous losses, and travel and entertainment expense of $2.3 million, $2.0 million, $1.3 million, and $1.1 million, respectively.

Income Taxes
The effective tax rate for the Company was 21.5% in the current quarter, 20.8% in the previous quarter, and 21.3% in the 1st quarter of 2022.

Credit Quality
Net loan charge-offs in the 1st quarter of 2023 amounted to $6.8 million, compared to $5.6 million in the prior quarter and $4.6 million in the same period last year. The ratio of annualized net loan charge-offs to total average loans was .17% in the current quarter, .14% in the previous quarter, and .12% in the 1st quarter of last year. Net loan charge-offs on personal banking loans increased $1.4 million to $6.5 million, mainly due to higher overdraft and consumer credit card loan net charge-offs.

In the 1st quarter of 2023, annualized net loan charge-offs on average consumer credit card loans were 3.15%, compared to 2.46% in the previous quarter, and 2.53% in the same quarter last year. Consumer loan net charge-offs were .25% of average consumer loans in the current quarter, .29% in the prior quarter, and .16% in the same quarter last year

At March 31, 2023, the allowance for credit losses on loans totaled $159.3 million, or .96% of total loans, and increased $9.2 million compared to the prior quarter. Additionally, the liability for unfunded lending commitments at March 31, 2023 was $28.6 million, a decrease of $4.5 million compared to the liability at December 31, 2022.
10
COMMERCE BANCSHARES, INC.                                
Management Discussion of First Quarter Results
March 31, 2023

At March 31, 2023, total non-accrual loans amounted to $7.8 million, a decrease of $505 thousand compared to the previous quarter. At March 31, 2023, the balance of non-accrual loans, which represented .05% of loans outstanding, included business loans of $6.4 million, personal real estate loans of $1.3 million, and business real estate loans of $171 thousand. Loans more than 90 days past due and still accruing interest totaled $14.8 million at March 31, 2023.

Liquidity
During the 1st quarter of 2023, the Company increased its deposit balance at the Federal Reserve Bank (FRB) by $952.7 million to $1.3 billion. The change in the balance at the FRB was mostly the result of a $1.5 billion increase in Federal Home Loan Bank (FHLB) advances and $1.3 billion of sales, maturities, and paydowns in the available for sale debt securities portfolio, partly offset by a $1.5 billion decrease in total deposits.

The Company regularly pledges loans and securities to the FRB and at March 31, 2023, the Company’s pledging resulted in a total borrowing capacity of $3.8 billion, or an increase of $2.9 billion compared to December 31, 2022. The Company did not have any borrowings from the FRB’s Discount Window or its newly established Bank Term Funding Program during the current quarter. The Company also pledges loans and securities and borrows from the FHLB. As of March 31, 2023, the Company had $1.5 billion of outstanding borrowings from the FHLB and $554.3 million of remaining borrowing capacity. Additionally, the Company pledges portions of its investment securities portfolio to secure public fund deposits, trust funds, and securities sold under agreements to repurchase.

The Company has an available for sale debt securities portfolio with a fair market value of $11.2 billion at March 31, 2023. Approximately $2.0 billion is expected to mature or pay down over the next 12 months. At March 31, 2023, the Company had pledged $8.1 billion of the securities portfolio. The Company also has a portfolio of $825.0 million in securities purchased under agreements to resell, of which $700.0 million are expected to mature over the next 12 months.

Other
During the 1st quarter of 2023, the Company paid a cash dividend of $.27 per common share, representing a 7.1% increase over the same period last year. The Company purchased 547,381 shares of treasury stock during the current quarter at an average price of $65.93.

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 1st Quarter 2023 MOMENTUM: Innovation. Improvement. Growth.

 
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 2022 Annual Report on Form 10-K and the Corporation’s Current Reports on Form 8-K. 2

 
COMMERCE BANCSHARES 158 YEARS IN BUSINESS FULL-SERVICE BANKING FOOTPRINT 148 full-service branches and 293 ATMs St. Louis  Kansas City  Springfield  Central Missouri Central Illinois  Wichita  Tulsa  Oklahoma City  Denver COMMERCIAL OFFICES Cincinnati  Nashville  Dallas  Des Moines Indianapolis  Grand Rapids  Houston U.S. PRESENCE Extended Commercial Market Area Commercial Payments Services Offered in 48 states across the U.S. Sources: 1S&P Global Market Intelligence – Regulated U.S. depositories which includes commercial banks, bank holding companies, and credit unions, rankings as of 12/31/2022; 2Includes loans held for sale; 3Moody’s Credit Opinion – Commerce Bancshares, Inc., February 15, 2023, Baseline Credit Assessment (BCA) reflects a bank’s standalone credit strength; Company reports and filings, information as of 3/31/2023 unless otherwise noted. 3 $32.0 BILLION TOTAL ASSETS 43RD LARGEST U.S. BANK BASED ON ASSET SIZE1 $7.3 BILLION MARKET CAP 21ST LARGEST U.S. BANK BASED ON MARKET CAP1 $62.0 BILLION TOTAL TRUST ASSETS UNDER ADMINISTRATION 20TH LARGEST AMONG BANK-MANAGED TRUST COMPANIES BASED ON AUM1 14.1% TIER 1 COMMON RISK- BASED CAPITAL RATIO 6TH HIGHEST AMONG TOP 50 U.S. BANKS BASED ON ASSET SIZE1 a1 BASELINE CREDIT ASSESSMENT3 1 of 5 MOODY’S RANKS COMMERCE AMONG THE TOP 5 BANKS IN THE COUNTRY $24.7 BILLION TOTAL DEPOSITS $16.5 BILLION TOTAL LOANS2 $10.4 BILLION COMMERCIAL CARD VOLUME 18.8% RETURN ON AVERAGE COMMON EQUITY YTD 5TH YTD ROACE FOR THE TOP 50 U.S. BANKS BASED ON ASSET SIZE1 AS OF DECEMBER 31, 2022 AS OF DECEMBER 31, 2022

 
4 TRACK RECORD OF LONG-TERM OUTPERFORMANCE Revenue Diversification Balanced earnings profile, fee revenue at 35%1 of total revenue, bolstered by growing wealth and national payments businesses Deposit Franchise $23.6 billion in low-cost, diverse deposits2 with peer-leading historical deposit betas Continued Long-Term Investments Core banking system implementation, Enterprise Digital, Expansion Markets, Wealth Management, Consistent Earnings & Shareholder Value Over 9% total annualized return to shareholders over the last 15 years, outperforming the annualized KBW Regional Bank Index return of 4%1 Capital Management Strong capital ratios, 55th consecutive year of common dividend increases3 Credit Quality Conservative risk profile drives outperformance across credit cycles 1As of 3/31/2023 2Excludes certificates of deposit greater than $100,000, period-end balance as of 3/31/2023 3Based on 1Q2023 declared dividend

 
$0.95 EPS 5 • PPNR1 was up 22.4% year over year but down 5.5% from Q4. • Net interest income decreased 1.2% from Q4. • Net interest margin increased 81 bps year over year and 8 bps over Q4 to 3.26%. • Non-interest income increased 0.6% over Q4 (35.4% of total revenue). • Wealth management client assets increased 2.9% in Q1 to $62.0 billion. • Non-interest expense increased 3.4% over Q4. • QTD average loans up 3.3% over Q4. Period-end loans up 1.4% over Q4. • QTD average deposits decreased $1.4 billion from Q4. Period-end deposits decreased $1.5 billion from Q4. See Liquidity and Capital Section (page 13) for more information. • Net charge-offs to total average loans of .17% and non-accrual loans to total loans of .05%. • Tangible common equity to tangible assets of 7.92%. Leverage ratio of 10.61%. Highlights Well-positioned for current environment 1Q2023 HIGHLIGHTS $165.1 million PPNR1 $119.5 million Net Income 18.75% ROACE 1.54% ROAA 57.49% Efficiency Ratio 1See the non-GAAP reconciliation on page 26

 
Quarterly Average Balances Change vs. $ in millions 1Q23 4Q22 1Q22 Highlights Commercial1 $10,545.3 $497.5 $991.2 • Linked quarter (LQ) and prior year (PY) reflects growth in business, business real estate, and construction loans Consumer 5,858.6 21.4 189.5 Total Loans $16,403.9 $518.9 $1,180.7 Investment Securities $12,097.9 $(577.5) $(3,089.3) • LQ decrease mainly due to sales, maturities and pay downs of AFS securities • No investment securities are classified as held-to-maturity Interest Earning Deposits with Banks $809.9 $169.9 $(1,798.1) Deposits $25,249.0 $(1,358.0) $(4,100.6) • 5.1% decline from LQ • See the Liquidity and Capital section starting on page 13 for more information Book Value per Share2 $21.51 $1.66 $(1.92) • Lower long-term interest rates (AOCI impact) and higher net income drove quarterly increase BALANCE SHEET HIGHLIGHTS 6

 
$17.8 $16.2 $16.1 $11.5 $10.4 $9.1 1Q22 4Q22 1Q23 $29.3 $26.6 $25.2 -14% $9.5 $10.1 $10.5 $5.7 $5.8 $5.9 $16.4 4Q221Q22 1Q23 $15.2 $15.9 BALANCE SHEET 7 Loans Consumer Loans Commercial Loans Loan Yield Deposits QTD Average Balances $ billions Non-Interest Bearing Interest Bearing Deposit Interest Bearing Deposit Yield QTD Average Balances $ billions 3.54% 5.03% 5.56% .05% .40% .71% +8%

 
LOAN PORTFOLIO 8 $ in 000s 3/31/2023 12/31/2022 3/31/2022 QoQ YoY Business $5,704,467 $5,661,725 $5,508,508 0.8% 3.6% Construction 1,437,419 1,361,095 1,144,411 5.6% 25.6% Business Real Estate 3,486,543 3,406,981 3,109,668 2.3% 12.1% Personal Real Estate 2,952,042 2,918,078 2,820,076 1.2% 4.7% Consumer 2,094,389 2,059,088 2,053,160 1.7% 2.0% Revolving Home Equity 295,478 297,207 264,401 -.6% 11.8% Consumer Credit Card 558,669 584,000 544,579 -4.3% 2.6% Overdrafts 6,515 14,957 14,211 -56.4% -54.2% Total Loans $16,535,522 $16,303,131 $15,459,014 1.4% 7.0% Period-End Balances $ in 000s 3/31/2023 12/31/2022 3/31/2022 QoQ YoY Business $5,656,104 $5,478,241 $5,324,172 3.2% 6.2% Construction 1,410,835 1,268,900 1,134,902 11.2% 24.3% Business Real Estate 3,478,382 3,300,697 3,095,068 5.4% 12.4% Personal Real Estate 2,933,750 2,886,686 2,808,980 1.6% 4.4% Consumer 2,067,385 2,089,912 2,040,200 -1.1% 1.3% Revolving Home Equity 296,748 293,681 273,859 1.0% 8.4% Consumer Credit Card 556,223 559,463 540,844 -.6% 2.8% Overdrafts 4,449 7,428 5,178 -40.1% -14.1% Total Loans $16,403,876 $15,885,008 $15,223,203 3.3% 7.8% QTD Average Balances

 
Change vs. $ in millions 1Q23 4Q22 1Q22 Highlights Net Interest Income $251.6 $(3.0) $42.8 • Linked quarter (LQ) decrease due to higher interest expense and lower investment securities balances, partly offset by higher interest earned on loans Non-Interest Income $137.6 $.8 $5.8 • See page 10 Non-Interest Expense $224.1 $7.4 $18.5 • See page 11 Pre-Tax, Pre-Provision Net Revenue1 $165.1 $(9.6) $30.2 Investment Securities Losses, Net $(0.3) $(9.2) $(7.5) • 1Q23 net losses resulted from losses of $3.1 million on sales of available for sale debt securities, mostly offset by net fair value gains of $2.3 million and a gain on the sale of an investment in the private equity investment portfolio Provision for Credit Losses $11.5 $(4.0) $21.3 • 1Q23 provision reflects an increase in the ACL on loans of $9.2 million and a decrease in the liability for unfunded lending commitments of $4.5 million Net-Income Attributable to Commerce Bancshares, Inc. $119.5 $(12.2) $1.3 For the three months ended 1Q23 4Q22 1Q22 Net Income per Common Share – Diluted $.95 $1.04 $.92 Net Yield on Interest Earning Assets 3.26% 3.18% 2.45% • Higher rates on earning assets supported quarterly margin expansion INCOME STATEMENT HIGHLIGHTS 1See the non-GAAP reconciliation on page 26 9

 
Change vs. $ in millions 1Q23 4Q22 1Q22 Highlights Bank Card Transaction Fees $46.7 $2.1 $4.6 • Prior year (PY) increase mainly due to higher corporate card fees Trust Fees $45.3 $.6 $(2.5) • 1Q23 reflects lower market values on assets under management compared to prior year (PY) Deposit Account Charges and Other Fees $21.8 $(.2) $(.6) Capital Market Fees $3.4 — $(.8) Consumer Brokerage Services $5.1 $.6 $.6 Loan Fees and Sales $2.6 — $(1.6) • Decline from PY reflects lower mortgage banking revenue Other $12.8 $(2.2) $6.0 • Increase over PY mainly due to higher sweep fees of $2.6 million, a $2.0 million increase in deferred compensation adjustments and a write down on a branch of $956 thousand in the PY Total Non-Interest Income $137.6 $.8 $5.8 NON-INTEREST INCOME HIGHLIGHTS 10

 
Change vs. $ in millions 1Q23 4Q22 1Q22 Highlights Salaries and Employee Benefits $144.4 $5.9 $8.4 • Increase over prior year (PY) mostly due to higher full-time salaries expense of $7.6 million and higher benefits expense of $1.4 million Net Occupancy $12.8 $1.0 $.5 Equipment $4.8 $(.2) $.3 Supplies and Communication $4.6 $.1 $(.1) Data Processing and Software $28.1 $.2 $1.1 • Increase over PY due to higher bank card processing fees and increased costs for service providers Marketing $5.5 $.1 $(.9) Other $23.9 $.3 $9.2 • Increase over PY mostly due to growth in FDIC insurance ($2.3 million), deferred compensation ($2.0 million) miscellaneous losses ($1.3 million), and travel and entertainment expense ($1.1 million) Total Non-Interest Expense $224.1 $7.4 $18.5 NON-INTEREST EXPENSE HIGHLIGHTS 11

 
12 PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) $132 $135 $209 $206 1Q2022 $341 $137 $175 $255 $217 4Q2022 $391 $137 $165 $252 $224 $389 1Q2023 Non-Interest Income (+) Net Interest Income (+) Non-Interest Expense (-) Pre-Tax, Pre-Provision Net Revenue (=) 1Q2023 Comparison vs. 1Q2022 22.4% vs. 4Q2022 (5.5)% See the non-GAAP reconciliation on page 26

 
13 LIQUIDITY AND CAPITAL

 
LIQUIDITY AND CAPITAL HIGHLIGHTS 14 • $1.3B of cash at Federal Reserve Bank (FRB) at Q1. • $1.5B in Federal Home Loan Bank (FHLB) advances at Q1. • No borrowings from Federal Reserve lending facilities during Q1. • Increased borrowing capacity in Q1 from $8.0B at Q4 to $9.2B. • AFS debt securities portfolio duration of 3.9 years. • Cash flows from maturities and paydowns of approximately $2.7B expected over the next twelve months. – AFS debt securities of $2 billion – Securities purchased under agreements to resell of $700 million Liquidity / Borrowing • TCE/TA of 7.92%, an increase of .60% over Q4. Tier 1 leverage at 10.61%. • AOCI declined 13% from $1.1B at Q4 to $940MM at Q1. • No Held-To-Maturity securities. Capital • Average loan to deposit ratio of 65%. • Seasonal deposit runoff in January occurred in line with expectations. • Uninsured deposits2 of 32% of total deposits at Q1. • Largest industry segment commercial deposit concentration was 5.1%1 of total deposits. Deposits 1Largest commercial deposit sector (Finance and Insurance) includes affiliate deposits. 2Excludes affiliate and collateralized deposits

 
$20,000 $22,000 $24,000 $26,000 $28,000 $30,000 1/7 2/1 3/1 4/1 -3% 7-Day Moving Average $ in millions DEPOSIT TRENDS – YTD 2023 January 1, 2023 – April 10, 2023 Z0% 3/8 Seasonal runoff early in the first quarter was in line with expectations. 15 Deposit balances declined slightly after March 8, but have been rebounding in April.

 
$3.0 2019 2020 2021 $1.8 2022 1Q23 $2.3 $2.8 $2.5 1Q23 $2.4 1Q23 $9.5 DEPOSIT BALANCE TRENDS Segment view $ in billions 16 $12.0 2019 2020 $7.8 2021 1Q232022 $9.9 $11.9 $10.3 20222020 $12.8 2019 2021 1Q23 $11.3 $10.2 $13.4 $12.5 Commercial Consumer Wealth Average Balance Period End 1Q23 $12.7 Period EndAverage Balance Average Balance Period End 2019 through 2022 are full year average balances

 
DEPOSIT PORTFOLIO CHARACTERISTICS 17 1Finance and Insurance Sector includes affiliate deposits. 2Excludes affiliate and collateralized deposits Top 10 Commercial Sectors (NAICS Sector / Industry) % of Commercial Segment Deposits % of Total Deposits Finance and Insurance 13.3% 5.1%1 Construction 10.0% 3.8% Educational Services 9.7% 3.7% Professional, Scientific and Technical Services 8.9% 3.4% Health Care and Social Assistance 8.8% 3.4% Public Administration 8.7% 3.3% Manufacturing 8.4% 3.2% Other Services (except Public Administration) 6.6% 2.5% Real Estate and Rental & Leasing 5.9% 2.3% Wholesale Trade 4.4% 1.7% Percent of accounts under $250,000 Percent of deposits ($) uninsured2 Average balance of accounts <$250,000 Average balance of accounts 99% 32% $13,922$25,294 Uninsured Deposit Analysis $ in billions 3/31/2023 Uninsured Deposits $ 9.8 Less: Affiliate Deposits $ 0.3 Less: Collateralized Deposits $ 1.7 Uninsured deposits2 $ 7.8 Total Deposits $ 24.7 Uninsured deposits2 as % of Total Deposits 32%

 
Hedging actions: Entered into three floor contracts (indexed to 1 Month SOFR) to hedge the risk of declining interest rates on floating rate commercial loans. The contracts have a term of 6 years. • 3Q2022: One 2.5% floor contract with a notional value of $500 million. The contract begins 1/2024. • 4Q2022: One 3.0% floor contract with a notional value of $500 million. The contract begins 4/2024. • 1Q2023: One 3.5% floor contract with a notional value of $500 million. The contract begins 7/2024. WELL-POSITIONED FOR MULTIPLE RATE ENVIRONMENTS 18 Opportunities to enhance and protect NII in a rising rate environment. • Net yield on interest earning assets increased 8 bps over Q4 to 3.26% in Q1. • Loan yield increased 53 bps over Q4 to 5.56% in Q1. • Total deposit costs increased 21 bps over Q4 to .45% in Q1. • As of December 31, 2022, 56% of loans were variable rate, (64% commercial, 42% consumer). • Large core deposit base and historically low betas. Cost of Total Deposits & Deposit Beta: Prior & Current Fed Cycle Cost of Total Deposits Before Fed Rate Increases End of Fed Rate Increases / Current Deposit Beta1 Commerce (3Q2015 – 2Q2019) .12% .38% 12% Peer Median (3Q2015 – 2Q2019) .23% .85% 27% Commerce (4Q2021 – 1Q2023) .03% .45% 9% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quarter in the Fed Cycle Source: S&P Global Market Intelligence, 2022 10-K 1 Fed Rate increase cycle from 3Q2015 through 2Q2019, +225 bps; Fed Rate increase cycle from 4Q2021 through 1Q2023, +475 bps; 2 As of December 31, 2022 Effective Fed Funds Rate (3Q2015 - 2Q2019) Effective Fed Funds Rate (4Q2021 - Current) 3Q2015 / 4Q2021

 
9% 14% 49% 24% 4% Composition of AFS Portfolio Treasury & agency Municipal MBS Other asset backed Corporate HIGH QUALITY, HIGHLY LIQUID AND DIVERSE INVESTMENT PORTFOLIO 1Excludes inflation effect on TIPs; 2Tax equivalent yield QTD – March 31, 2023 Avg Rate Duration (yrs) Treasury & agency1 1.32% 2.2 Municipal 2.26%2 5.3 MBS 2.06% 5.1 Other asset-backed 2.01% 1.3 Corporate 1.93% 3.9 Total 2.07% 3.9 19 Total available for sale securities Average balance: $11.8 billion, at fair value As of March 31, 2023

 
Average Loan to Deposit Ratio3 SOUND CAPITAL AND LIQUIDITY POSITION 20 Tier 1 Risk-Based Capital Ratio1 1S&P Global Market Intelligence, Information as of December 31, 2022 2Period-end balances, as of March 31, 2023 3Includes loans held for sale, for the quarter ended March 31, 2023 15.9% 14.1% 13.4% 12.9% 12.6% 12.3% 11.9% 11.7% 11.4% 11.0% 10.9% 10.7% 10.7% 10.6% 10.6% 10.1% 10.0% 10.0% 9.9% 9.5% CFR PB CBSH BOKF UMPQ OZK ONB UBSI SFNC HWC SSB FULT SNV ABCB UMBF PNFP FNB ASB WTFC VLY Peer Median: 10.9% Core Deposits $23.1 Billion2 Large, stable deposit base Loan to Deposit Ratio Total Deposits 65% Average Loan to Deposit Ratio183% Peer Average Commerce 94%6% Core Deposits - Non-Interest Bearing - Interest Checking - Savings and Money Market Certificates of Deposit

 
Over 55% of total loans are variable; 64% of commercial loans have floating rates SUMMARY OF FIXED & FLOATING LOANS 40% 60% Business Total Loans: $5.7B Fixed Variable C om m er ci al 67% 33% Personal RE Total Loans: $2.9B C on su m er 95% 5% Construction Total Loans: $1.4B 99% 1% HELOC Total Loans: $0.3B 43% 57% Business RE Total Loans: $3.4B 95% 5% Consumer Card Total Loans: $0.6B 70% 30% Consumer Total Loans: $2.1B 21Source: 2022 10-K

 
Real Estate Business Loans % of Total Loans Owner – Occupied 7.0% Office 3.1% Industrial 2.9% Retail 2.0% Multi-family 1.9% Hotels 1.4% Farm 1.2% Senior living .8% Other .6% Total 20.9% COMMERCIAL REAL ESTATE BREAKDOWN 22 33.3% 14.6% 14.0% 9.5% 9.0% 6.8% 5.8% Owner-occupied Industrial Senior living Office Farm Retail Other Hotels Multi-family 3.9% 3.1% Over 30% of CRE loans are owner-occupied real estate properties, which present lower risk profiles Business Real Estate Loans - $3.4 billion Source: 2022 10-K

 
$4.6 $5.6 $6.8 $3.3 $6.9 1Q234Q221Q22 MAINTAINING STRONG CREDIT QUALITY 23 Net Loan Charge-Offs (NCOs) $ in millions NCOs- CBSH NCOs - Peer Average NCO/Average Loans1 - CBSH $134.7 $150.1 $159.3 $265.7 $289.9 1Q22 4Q22 1Q23 Allowance for Credit Losses on Loans (ACL) $ in millions ACL - CBSH ACL - Peer Average ACL / Total Loans - CBSH $8.3 $8.3 $7.8 $111.4 $109.7 1Q231Q22 4Q22 Non-Accrual Loans (NALs) $ in millions NALs - CBSH NALs - Peer Average 16.2x 18.1x 20.4x 3.8x 4.3x 1Q22 4Q22 1Q23 Allowance for Credit Losses on Loans (ACL) to NALs ACL / NALs - Peer AverageACL / NALs - CBSH Percentages are illustrative and not to scale; Peer Banks include: ABCB, ASB, BOKF, CFR, FNB, FULT, HWC, ONB, OZK, PB, PNFP, SFNC, SNV, SSB, UMBF, UMPQ, UBSI, VLY, WTFC 1As a percentage of average loans (excluding loans held for sale) NALs / Total Loans - CBSH NCO/Average Loans1 – Peer Average .05% NALs / Total Loans – Peer Average .05% .05% .49% .41% ACL / Total Loans – Peer Average .87% .92% .96% 1.18% 1.12% .12% .14% .17% .06% .09%

 
ALLOCATION OF ALLOWANCE 24 CECL allowances reflect the economic and market outlook December 31, 2022 March 31, 2023 $ in millions Allowance for Credit Losses (ACL) % of Outstanding Loans Allowance for Credit Losses (ACL) % of Outstanding Loans Business $ 46.3 .82% $ 49.5 .87% Bus R/E 28.2 .83% 27.7 .80% Construction 28.8 2.12% 31.4 2.19% Commercial total $ 103.3 .99% $ 108.6 1.02% Consumer 10.3 .50% 11.5 .55% Consumer CC 24.9 4.26% 25.9 4.64% Personal R/E 10.0 .34% 11.5 .39% Revolving H/E 1.6 .53% 1.7 .58% Overdrafts .1 .74% .1 1.84% Consumer total $ 46.8 .80% $ 50.7 .86% Allowance for credit losses on loans $ 150.1 .92% $ 159.3 .96% 1.47% 1.44% 1.35% 1.22% 1.07% 0.88% 0.90% 0.92% 0.96% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% $200 $150 $100 $250 $171.7 $236.4 4Q $139.6 0.95% 1/1 1.14% 1Q $240.7 2Q $220.8 $143.4 3Q 4Q $162.8 $200.5 $150.1 1Q 2Q1Q $172.4 1.10% 2Q 3Q $150.0 0.99% $134.7 0.87% $138.0 3Q 4Q $159.3 1Q Allowance for Credit Losses (ACL) on Loans ACL - Loans (left) ACL / Total Loans (right) $ in millions 202220212020 2023

 
• Special cash dividend paid in 2012 totaled $131 million. • 2014 included $200 million accelerated share repurchase in conjunction with preferred stock issuance. • 2015 included a $100 million accelerated share repurchase. • 2019 included a $150 million accelerated share repurchase. • In 2020, all $150 million of preferred equity was redeemed. • Common cash dividends increased 10% in 2018, 16% in 2019, 9% in 2020, 2% in 2021, 6% in 2022 and 7% in 2023 (based on 1Q2023 declared dividend). 0% 50% 100% 150% 200% $0 $50 $100 $150 $200 $250 $300 20202013 20192014 2015 2017 20182016 2021 2022 STRONG CAPITAL POSITION – FLEXIBILITY IN CAPITAL PLANNING 55 consecutive years of regular common cash dividend increases1 Capital Ratios – 12/31/2022 Tier I common risk-based capital 14.1% Tier I risk-based capital 14.1% Total risk-based capital 14.9% Cash dividends paid on common stock (left) Total Payout - % (right) Common share repurchase (left) Capital Returned to Common Shareholders as a percentage of Net Income2 25 To ta l P ay ou t R at io ( %) $ in m illi on s 1Based on 1st quarter 2023 declared dividend; 2Net Income is defined as Net Income Available to Common Shareholders

 
NON-GAAP RECONCILIATIONS 26 For The Three Months Ended (DOLLARS IN THOUSANDS) Mar. 31, 2023 Dec. 31, 2022 Mar. 31, 2022 A Net Interest Income $ 251,623 $ 254,641 $ 208,786 B Non-Interest Income $ 137,612 $ 136,825 $ 131,769 C Non-Interest Expense $ 224,107 $ 216,740 $ 205,648 Pre-Provision Net Revenue (A+B-C) $ 165,128 $ 174,726 $ 134,907 Pre-tax, Pre-provision Net Revenue