Exhibit 99.1
Exhibit 99.1
commercebancshares914a01a05.jpg
CBSH
                   1000 Walnut Street / Suite 700 / Kansas City, Missouri 64106 / 816.234.2000
FOR IMMEDIATE RELEASE:
Thursday, July 16, 2026

COMMERCE BANCSHARES, INC. REPORTS
SECOND QUARTER EARNINGS PER SHARE OF $1.10

Commerce Bancshares, Inc. announced earnings of $1.10 per share for the three months ended June 30, 2026, compared to $1.09 per share in the same quarter last year and $.96 per share in the first quarter of 2026. Net income for the second quarter of 2026 amounted to $159.8 million, compared to $152.5 million in the second quarter of 2025 and $141.6 million in the prior quarter.

For the six months ended June 30, 2026, earnings per share totaled $2.06 compared to $2.02 for the first six months of 2025. Net income amounted to $301.4 million for the six months ended June 30, 2026, compared to $284.1 million in the comparable period last year. For the year to date, the return on average assets was 1.73%, and the return on average equity was 13.96%.

In making this announcement, John Kemper, Chief Executive Officer, said, “Commerce delivered a strong quarter, with expanding net interest margin, solid loan growth, lower funding costs and excellent credit quality. These results drove a return on average assets of 1.84% and reflect the strength of our business model, our diversified revenue streams and our team’s continued focus on long-standing customer relationships.”

Mr. Kemper continued, “Revenue growth was broad-based during the quarter. Net interest income increased as margin expanded to 3.77%, and fee revenue grew $8.0 million this quarter, supported by continued strength in trust, bank card and deposit-related businesses. We believe this balanced revenue mix remains a key differentiator for Commerce and supports consistent performance across economic cycles.”

“We remained focused on disciplined capital management. During the quarter, we repurchased approximately 2.1 million shares of common stock for $110 million while maintaining a strong capital position. This gives us flexibility to invest in growth, support our customers and continue returning capital to shareholders.”

“We also completed the repositioning of a portion of our available for sale securities portfolio, including the sale of our Treasury inflation-protected securities portfolio. This repositioning increases the portfolio’s overall yield, improves the consistency of future net interest income, and supports a more durable net interest margin over time. We believe these portfolio changes strengthen Commerce’s long-term earnings profile and position us to deliver sustained shareholder value.”

Second Quarter 2026 Financial Highlights:

•Net interest income was $315.1 million, a $15.2 million increase over the prior quarter. The net yield on interest earning assets increased 18 basis points to 3.77%.
1
Exhibit 99.1

•Non-interest income totaled $183.8 million, an increase of $8.0 million, or 4.5%, over the prior quarter and was 37% of total revenue in both the current and prior quarters.

•Trust fees grew $15.9 million, or 28.7%, over the same period last year, and bank card fees grew $2.5 million, or 5.6%, over the prior quarter.

•Non-interest expense totaled $297.1 million, an increase of $5.9 million, or 2.0%, over the prior quarter.

•Assets under administration grew $3.1 billion, or 3.4%, over the same period last year.

•Average loan balances totaled $20.5 billion, an increase of $176.6 million, or .9%, over the prior quarter.

•Total average available for sale debt securities decreased $247.1 million from the prior quarter to $8.7 billion, at fair value.

•Investment securities gains included a $105.4 million gain on Visa Inc. stock and a $97.7 million loss on the repositioning of a portion of the Company’s available for sale debt securities portfolio, which included the sale of the Company’s portfolio of U.S. Treasury inflation-protected securities.

•Total average deposits decreased $135.0 million, or .5%, from the prior quarter to $27.6 billion.

•The ratio of annualized net loan charge-offs to average loans was .19% in the current quarter compared to .30% in the prior quarter.

•The allowance for credit losses on loans decreased $3.2 million during the second quarter of 2026 to $195.4 million, and the ratio of the allowance for credit losses on loans to total loans was .94% at June 30, 2026, compared to .97% at March 31, 2026.

•The Company purchased approximately 2.1 million shares of its common stock during the current quarter at an average price of $53.03.

•Total assets on June 30, 2026 were $35.3 billion, a decrease of $448.1 million from the prior quarter.

•For the quarter, the return on average assets was 1.84%, the return on average equity was 14.70%, and the efficiency ratio was 58.40%.

Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, wealth management and securities brokerage. Commerce Bank, its primary subsidiary, brings over 160 years of experience helping individuals and businesses through high-touch service and sophisticated, personalized financial solutions. Commerce maintains an extensive network of banking centers, wealth offices, and ATMs throughout the Midwest, as well as commercial offices in 11 states and offers payment solutions nationwide. With the acquisition of FineMark Holdings, Inc., Commerce builds on its existing private banking and wealth management presence in Florida and adds wealth offices in Arizona and South Carolina. Customers can conveniently access their account 24/7 using mobile and online platforms, as well as a customer service line.

2
Exhibit 99.1
This financial news release and the supplementary Earnings Highlights presentation are available on the Company’s website at https://investor.commercebank.com/news-info/financial-news-releases/default.aspx.
* * * * * * * * * * * * * * *
For additional information, contact
Matt Burkemper, Investor Relations
(314) 746-7485
www.commercebank.com
matthew.burkemper@commercebank.com


3
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS

 For the Three Months EndedFor the Six Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		Jun. 30, 2026Mar. 31, 2026Jun. 30, 2025Jun. 30, 2026Jun. 30, 2025
FINANCIAL SUMMARY
Net interest income$315,085 $299,840 $280,147 $614,925 $549,249 
Non-interest income183,828 175,851 165,613 359,679 324,562 
Total revenue498,913 475,691 445,760 974,604 873,811 
Investment securities gains (losses)12,830 11,647 437 24,477 (7,154)
Provision for credit losses8,731 10,960 5,597 19,691 20,084 
Non-interest expense297,068 291,126 244,437 588,194 482,813 
Income before taxes205,944 185,252 196,163 391,196 363,760 
Income taxes45,775 40,881 42,400 86,656 79,364 
Non-controlling interest expense (income)379 2,748 1,284 3,127 325 
Net income attributable to Commerce Bancshares, Inc.$159,790 $141,623 $152,479 $301,413 $284,071 
Earnings per common share:  
Net income — basic$1.10 $0.96 $1.09 $2.06 $2.02 
Net income — diluted$1.10 $0.96 $1.09 $2.06 $2.02 
Effective tax rate22.27%22.40%21.76%22.33%21.84%
Fully-taxable equivalent net interest income$317,475 $302,204 $282,428 $619,679 $553,844 
Average total interest earning assets (1)
$33,779,032 $34,130,985 $30,629,715 $33,954,036 $30,764,662 
Diluted wtd. average shares outstanding144,309,038 145,856,608 139,211,807 145,078,548 139,467,137 
RATIOS  
Average loans to deposits (2)
74.44%73.44%70.22%73.94%69.80%
Return on total average assets1.84 1.62 1.95 1.73 1.82 
Return on average equity (3)
14.70 13.22 17.40 13.96 16.63 
Non-interest income to total revenue36.85 36.97 37.15 36.91 37.14 
Efficiency ratio (4)
58.40 60.00 54.77 59.19 55.18 
Net yield on interest earning assets3.77 3.59 3.70 3.68 3.63 
EQUITY SUMMARY  
Cash dividends per share$.275 $.275 $.262 $.550 $.524 
Cash dividends on common stock$39,861 $40,355 $36,761 $80,216 $73,627 
Book value per share (5)
$30.45 $29.64 $26.12 
Market value per share (5)
$57.75 $49.20 $59.21 
High market value per share$58.43 $56.06 $62.99 
Low market value per share$48.74 $46.99 $50.18 
Common shares outstanding (5)
143,894,124 145,979,271 140,090,686 
Tangible common equity to tangible assets (6)
11.39%11.07%10.86%
Tier I leverage ratio12.81%12.60%12.75%
OTHER QTD INFORMATION 
Number of bank/ATM locations248 249 239 
Full-time equivalent employees4,976 4,960 4,658 
(1) Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities.
(2) Includes loans held for sale.
(3) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.
(4) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.
(5) As of period end.
(6) The tangible common equity ratio is a non-gaap ratio and is calculated as stockholders’ equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).
All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2025.
4
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

 (Unaudited)
(In thousands, except per share data)		For the Three Months EndedFor the Six Months Ended
Jun. 30, 2026Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Jun. 30, 2026Jun. 30, 2025
Interest income$407,331 $396,507 $373,617 $374,105 $371,636 $803,838 $736,001 
Interest expense92,246 96,667 90,465 94,648 91,489 188,913 186,752 
Net interest income315,085 299,840 283,152 279,457 280,147 614,925 549,249 
Provision for credit losses8,731 10,960 15,993 20,061 5,597 19,691 20,084 
Net interest income after credit losses306,354 288,880 267,159 259,396 274,550 595,234 529,165 
NON-INTEREST INCOME   
Trust fees71,512 71,049 62,125 58,412 55,571 142,561 112,163 
Bank card transaction fees48,121 45,585 46,761 45,551 46,362 93,706 91,955 
Deposit account charges and other fees29,259 28,578 27,949 27,427 26,248 57,837 52,870 
Consumer brokerage services5,862 5,444 5,185 6,698 5,383 11,306 10,168 
Capital market fees5,667 5,338 4,230 5,138 6,175 11,005 11,287 
Loan fees and sales3,274 3,243 3,594 3,465 3,419 6,517 6,823 
Other20,133 16,614 16,364 14,820 22,455 36,747 39,296 
Total non-interest income183,828 175,851 166,208 161,511 165,613 359,679 324,562 
INVESTMENT SECURITIES GAINS (LOSSES), NET12,830 11,647 2,929 7,885 437 24,477 (7,154)
NON-INTEREST EXPENSE   
Salaries and employee benefits179,954 180,787 162,889 157,461 155,025 360,741 308,103 
Data processing and software38,241 38,328 35,273 33,555 32,904 76,569 65,142 
Professional and other services16,506 18,792 14,573 11,284 12,973 35,298 22,999 
Net occupancy14,638 15,308 13,172 13,474 13,654 29,946 27,674 
Marketing6,413 6,957 6,201 6,670 5,974 13,370 11,817 
Equipment5,870 5,671 5,682 5,421 5,157 11,541 10,405 
Supplies and communication5,484 5,238 4,841 4,837 4,962 10,722 10,008 
Deposit Insurance3,841 3,914 (81)3,074 3,312 7,755 7,056 
Other26,121 16,131 10,445 8,242 10,476 42,252 19,609 
Total non-interest expense297,068 291,126 252,995 244,018 244,437 588,194 482,813 
Income before income taxes205,944 185,252 183,301 184,774 196,163 391,196 363,760 
Less income taxes45,775 40,881 40,620 41,152 42,400 86,656 79,364 
Net income160,169 144,371 142,681 143,622 153,763 304,540 284,396 
Less non-controlling interest expense (income)379 2,748 2,019 2,104 1,284 3,127 325 
Net income attributable to Commerce Bancshares, Inc.$159,790 $141,623 $140,662 $141,518 $152,479 $301,413 $284,071 
Net income per common share — basic$1.10 $0.96 $1.01 $1.01 $1.09 $2.06 $2.02 
Net income per common share — diluted$1.10 $0.96 $1.01 $1.01 $1.09 $2.06 $2.02 
OTHER INFORMATION
Return on total average assets1.84%1.62%1.73%1.78%1.95%1.73%1.82%
Return on average equity (1)
14.7013.2214.7015.2617.4013.9616.63
Efficiency ratio (2)
58.4060.0056.2355.2654.7759.1955.18
Effective tax rate22.2722.4022.4122.5321.7622.3321.84
Net yield on interest earning assets3.773.593.603.643.703.683.63
Fully-taxable equivalent net interest income$317,475 $302,204 $285,830 $281,770 $282,428 $619,679 $553,844 
(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.
5
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - PERIOD END

(Unaudited)
(In thousands)		Jun. 30, 2026Mar. 31, 2026Jun. 30, 2025
ASSETS   
Loans
     Business $7,115,984 $6,750,356 $6,328,684 
     Real estate — construction and land1,493,455 1,581,789 1,405,398 
     Real estate — business4,064,253 4,059,539 3,757,778 
     Real estate — personal4,369,077 4,407,606 3,058,845 
     Consumer2,527,448 2,475,353 2,157,867 
     Revolving home equity649,332 619,178 364,429 
     Consumer credit card561,277 557,733 576,151 
     Overdrafts52,655 9,510 16,316 
Total loans20,833,481 20,461,064 17,665,468 
Allowance for credit losses on loans(195,375)(198,605)(165,260)
Net loans20,638,106 20,262,459 17,500,208 
Loans held for sale3,799 2,081 3,592 
Investment securities:
Available for sale debt securities8,322,634 8,646,127 8,915,779 
Trading debt securities57,651 44,329 46,630 
Equity securities114,724 56,193 54,511 
Other securities242,737 248,339 219,906 
Total investment securities8,737,746 8,994,988 9,236,826 
Federal funds sold2,010 630 — 
Securities purchased under agreements to resell1,150,000 850,000 850,000 
Interest earning deposits with banks2,260,162 3,270,046 2,624,264 
Cash and due from banks645,674 572,588 522,049 
Premises and equipment — net527,679 527,211 477,401 
Goodwill253,805 253,805 146,539 
Other intangible assets — net140,482 145,985 13,333 
Other assets909,704 837,463 910,035 
Total assets$35,269,167 $35,717,256 $32,284,247 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Deposits:   
Non-interest bearing$8,172,552 $8,058,024 $7,393,559 
Savings, interest checking and money market17,320,654 17,877,836 15,727,549 
Certificates of deposit of less than $100,0001,017,503 1,032,114 986,014 
Certificates of deposit of $100,000 and over1,364,993 1,416,345 1,386,906 
Total deposits27,875,702 28,384,319 25,494,028 
Federal funds purchased and securities sold under agreements to repurchase2,428,291 2,576,723 2,596,461 
Other borrowings26,291 8,045 15,049 
Other liabilities557,078 421,771 518,595 
Total liabilities30,887,362 31,390,858 28,624,133 
Stockholders’ equity:   
Common stock742,606 742,606 676,054 
Capital surplus3,993,098 3,986,353 3,386,218 
Retained earnings353,023 233,094 255,938 
Treasury stock(232,318)(120,692)(96,589)
Accumulated other comprehensive income (loss)(498,731)(539,592)(581,049)
Total stockholders’ equity4,357,678 4,301,769 3,640,572 
Non-controlling interest24,127 24,629 19,542 
Total equity4,381,805 4,326,398 3,660,114 
Total liabilities and equity$35,269,167 $35,717,256 $32,284,247 

6
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCE SHEETS

(Unaudited)
(In thousands)		For the Three Months Ended
Jun. 30, 2026Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025
ASSETS:
Loans:
Business$6,864,328 $6,687,131 $6,317,805 $6,230,019 $6,247,252 
Real estate — construction and land1,545,640 1,592,328 1,408,339 1,396,977 1,430,758 
Real estate — business4,062,672 4,045,670 3,730,679 3,715,597 3,692,405 
Real estate — personal4,386,681 4,417,131 3,058,834 3,059,913 3,048,895 
Consumer2,472,965 2,421,541 2,200,500 2,160,637 2,148,666 
Revolving home equity630,034 611,101 372,194 360,820 362,312 
Consumer credit card544,688 555,697 565,896 563,351 559,858 
Overdrafts7,291 7,144 6,592 7,037 5,663 
Total loans
20,514,299 20,337,743 17,660,839 17,494,351 17,495,809 
Allowance for credit losses on loans(198,032)(201,769)(175,129)(164,623)(166,391)
Net loans20,316,267 20,135,974 17,485,710 17,329,728 17,329,418 
Loans held for sale1,462 2,361 2,532 2,369 1,741 
Investment securities:
U.S. government and federal agency obligations3,365,011 3,190,796 3,197,720 2,693,327 2,623,896 
Government-sponsored enterprise obligations54,593 54,800 54,955 55,014 55,038 
State and municipal obligations695,988 709,332 724,737 756,137 780,063 
Mortgage-backed securities4,015,292 4,211,068 4,316,799 4,461,056 4,641,295 
Asset-backed securities1,056,932 1,201,187 1,336,859 1,466,770 1,585,364 
Other debt securities
171,284 176,676 196,633 204,281 237,385 
Unrealized gain (loss) on debt securities(693,080)(630,778)(645,595)(766,025)(838,028)
Total available for sale debt securities8,666,020 8,913,081 9,182,108 8,870,560 9,085,013 
Trading debt securities
53,144 97,801 61,160 56,032 51,131 
Equity securities92,386 50,378 52,387 50,823 54,472 
Other securities 247,335 250,641 227,395 220,041 216,560 
Total investment securities9,058,885 9,311,901 9,523,050 9,197,456 9,407,176 
Federal funds sold733 862 — 23 158 
Securities purchased under agreements to resell934,617 850,000 850,000 850,000 850,000 
Interest earning deposits with banks2,575,956 2,997,340 2,786,891 2,422,441 2,036,803 
Other assets1,986,886 2,074,538 1,700,147 1,709,247 1,671,763 
Total assets$34,874,806 $35,372,976 $32,348,330 $31,511,264 $31,297,059 
LIABILITIES AND EQUITY:
Non-interest bearing deposits$8,034,747 $7,874,488 $7,592,431 $7,345,156 $7,356,882 
Savings1,330,292 1,301,768 1,261,285 1,283,671 1,303,391 
Interest checking and money market15,770,092 16,019,323 14,335,613 13,740,770 13,901,634 
Certificates of deposit of less than $100,0001,026,185 1,035,130 1,015,617 991,877 984,845 
Certificates of deposit of $100,000 and over1,399,523 1,465,168 1,389,149 1,416,572 1,371,428 
Total deposits27,560,839 27,695,877 25,594,095 24,778,046 24,918,180 
Borrowings:
Federal funds purchased250,160 141,888 130,487 130,622 129,891 
Securities sold under agreements to repurchase2,299,180 2,674,484 2,429,746 2,519,660 2,371,031 
Other borrowings1,362 90,796 1,230 1,860 2,748 
Total borrowings2,550,702 2,907,168 2,561,463 2,652,142 2,503,670 
Other liabilities403,831 423,998 395,336 402,265 360,204 
Total liabilities30,515,372 31,027,043 28,550,894 27,832,453 27,782,054 
Equity4,359,434 4,345,933 3,797,436 3,678,811 3,515,005 
Total liabilities and equity$34,874,806 $35,372,976 $32,348,330 $31,511,264 $31,297,059 

7
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE RATES

(Unaudited)For the Three Months Ended
Jun. 30, 2026Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025
ASSETS: 
Loans: 
Business (1)
5.39%5.41%5.48%5.72%5.72%
Real estate — construction and land6.40 6.59 7.05 7.37 7.39 
Real estate — business5.70 5.75 5.76 5.92 5.92 
Real estate — personal4.79 4.82 4.38 4.34 4.30 
Consumer6.12 6.20 6.23 6.42 6.43 
Revolving home equity7.27 7.29 7.25 7.94 7.41 
Consumer credit card12.58 12.64 12.81 13.21 13.18 
Overdrafts— — — — — 
Total loans5.73 5.79 5.84 6.02 6.01 
Loans held for sale6.31 4.98 5.01 6.03 9.22 
Investment securities: 
U.S. government and federal agency obligations4.76 3.60 4.07 4.06 4.28 
Government-sponsored enterprise obligations2.38 2.40 2.36 2.35 2.38 
State and municipal obligations (1)
2.07 2.10 2.06 2.05 2.05 
Mortgage-backed securities2.10 2.12 2.05 2.01 2.08 
Asset-backed securities3.77 3.80 3.78 3.69 3.73 
Other debt securities3.16 3.17 2.97 2.97 2.94 
Total available for sale debt securities3.26 2.85 2.96 2.86 2.95 
Trading debt securities (1)
4.37 3.14 4.61 4.67 4.63 
Equity securities (1)
3.27 6.49 6.35 6.09 6.26 
Other securities (1)
9.28 6.81 9.08 7.29 11.63 
Total investment securities3.42 2.97 3.12 2.99 3.16 
Federal funds sold3.28 3.29 — — 5.08 
Securities purchased under agreements to resell4.03 4.03 4.00 4.00 4.02 
Interest earning deposits with banks3.70 3.70 3.95 4.45 4.46 
Total interest earning assets4.87 4.74 4.74 4.86 4.90 
LIABILITIES AND EQUITY: 
Interest bearing deposits: 
Savings.06 .07 .05 .05 .05 
Interest checking and money market1.45 1.48 1.45 1.54 1.49 
Certificates of deposit of less than $100,0003.07 3.17 3.25 3.33 3.44 
Certificates of deposit of $100,000 and over3.27 3.35 3.60 3.71 3.78 
Total interest bearing deposits1.57 1.61 1.62 1.71 1.67 
Borrowings: 
Federal funds purchased3.67 3.66 3.92 4.34 4.37 
Securities sold under agreements to repurchase2.35 2.39 2.54 2.88 2.85 
Other borrowings.88 3.88 .65 1.71 3.79 
Total borrowings2.48 2.50 2.61 2.95 2.93 
Total interest bearing liabilities1.68%1.72%1.75%1.87%1.83%
Net yield on interest earning assets3.77%3.59%3.60%3.64%3.70%
(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.







8
Exhibit 99.1
COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CREDIT QUALITY

 For the Three Months EndedFor the Six Months Ended
(Unaudited)
(In thousands, except ratios)		Jun. 30, 2026Mar. 31, 2026Dec. 31, 2025Sep. 30, 2025Jun. 30, 2025Jun. 30, 2026Jun. 30, 2025
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$198,605 $179,468 $175,671 $165,260 $167,031 $179,468 $162,742 
     Initial allowance for credit loss at acquisition— 22,828 — — — 22,828 — 
     Provision for credit losses on loans6,311 11,283 13,660 20,739 7,919 17,594 23,014 
     Net charge-offs (recoveries):
        Commercial portfolio:
     Business224 241 222 826 432 465 478 
     Real estate — construction and land — — 16 — 24 — 24 
     Real estate — business(7)5,405 (24)(23)(425)5,398 (48)
217 5,646 214 803 31 5,863 454 
        Personal banking portfolio:
     Consumer credit card7,029 7,139 6,488 6,515 7,085 14,168 14,052 
     Consumer1,598 1,768 2,498 2,310 2,168 3,366 5,020 
     Overdraft411 413 485 432 360 824 855 
     Real estate — personal203 2 180 269 35 205 107 
     Revolving home equity83 6 (2)(1)11 89 8 
9,324 9,328 9,649 9,525 9,659 18,652 20,042 
     Total net loan charge-offs 9,541 14,974 9,863 10,328 9,690 24,515 20,496 
Balance at end of period$195,375 $198,605 $179,468 $175,671 $165,260 $195,375 $165,260 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS$20,119 $17,699 $17,660 $15,327 $16,005 
NET CHARGE-OFF RATIOS (1)
Commercial portfolio:
     Business.01%.01%.01%.05%.03%.01%.02%
     Real estate — construction and land— — — — .01 — — 
     Real estate — business— .54 — — (.05).27 — 
.01 .19 .01 .03 — .10 .01 
Personal banking portfolio:
     Consumer credit card5.18 5.21 4.55 4.59 5.08 5.19 5.06 
     Consumer.26 .30 .45 .42 .40 .28 .48 
     Overdraft22.61 23.45 29.19 24.36 25.50 23.02 29.93 
     Real estate — personal.02 — .02 .03 — .01 .01 
     Revolving home equity.05 — — — .01 .03 — 
.47 .47 .62 .61 .63 .47 .66 
Total.19%.30%.22%.23%.22%.24%.24%
CREDIT QUALITY RATIOS
Non-accrual loans to total loans.06%.05%.09%.09%.11%
Allowance for credit losses on loans to total loans.94 .97 1.01 .99 .94 
NON-ACCRUAL AND PAST DUE LOANS
  Non-accrual loans:
     Business$92 $201 $123 $255 $410 
     Real estate — construction and land— — — 191 426 
     Real estate — business9,365 9,369 14,785 14,940 15,109 
     Real estate — personal2,128 1,316 842 867 948 
     Revolving home equity33 34 — — 1,977 
   Total 11,618 10,920 15,750 16,253 18,870 
Loans past due 90 days and still accruing interest$23,703 $22,824 $24,659 $21,536 $25,303 
(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).
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Exhibit 99.1                                        
COMMERCE BANCSHARES, INC.
Management Discussion of Second Quarter Results
June 30, 2026
For the quarter ended June 30, 2026, net income amounted to $159.8 million, compared to $141.6 million in the previous quarter and $152.5 million in the same quarter last year. The increase in net income over the previous quarter was primarily the result of higher net interest income, non-interest income, and a decrease in the provision for credit losses, partly offset by higher non-interest expense. The net yield on interest earning assets increased 18 basis points over the previous quarter to 3.77%. Average loans increased $176.6 million, while average deposits and available for sale investment securities, at fair value, decreased $135.0 million and $247.1 million, respectively, compared to the prior quarter. For the quarter, the return on average assets was 1.84%, the return on average equity was 14.70%, and the efficiency ratio was 58.40%.

Balance Sheet Review
During the 2nd quarter of 2026, average loans totaled $20.5 billion, an increase of $176.6 million over the prior quarter, and an increase of $3.0 billion over the same quarter last year. The increase in average balances over same quarter last year was primarily due to the acquisition of FineMark, which added $2.7 billion in loan balances on January 1, 2026. Compared to the previous quarter, average balances of business and consumer loans grew $177.2 million and $51.4 million, respectively, while average construction loan balances declined $46.7 million. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $15.9 million, compared to $26.2 million in the prior quarter.

Total average available for sale debt securities decreased $247.1 million from the previous quarter to $8.7 billion, at fair value. The decrease in available for sale debt securities was mainly the result of lower average balances of mortgage-backed and asset-backed securities, partly offset by higher average balances of U.S. government and federal agency obligations. During the 2nd quarter of 2026, the unrealized loss on available for sale debt securities decreased $68.9 million to $618.6 million, at period end. Also, during the 2nd quarter of 2026, purchases of available for sale debt securities totaled $810.0 million with a weighted average yield of approximately 4.21%. Sales, maturities and pay downs of available for sale debt securities were $1.2 billion, which included the sale of all the Company’s portfolio of U.S. Treasury inflation-protected securities (TIPS). On June 30, 2026, the duration of the available for sale investment portfolio was 4.2 years, and maturities and pay downs of approximately $1.1 billion are expected to occur during the next 12 months.

Total average deposits decreased $135.0 million this quarter compared to the previous quarter and increased $2.6 billion compared to the same quarter last year. The decrease in average balances compared to the prior quarter was primarily due to lower interest checking and money market deposits,
partly offset by higher non-interest bearing demand deposit balances, while the increase in average balances over the same quarter last year was primarily due to the FineMark acquisition.

Compared to the prior quarter, average interest checking and money market deposits decreased $249.2 million, while non-interest bearing demand deposits increased $160.3 million. Compared to the previous quarter, total average retail banking deposits grew $256.5 million, while commercial and wealth deposits declined $332.6 million and $61.4 million, respectively. The average loans to deposits ratio was 74.4% in the current quarter and 73.4% in the prior quarter. The Company’s average borrowings, which included average customer repurchase agreements of $2.3 billion, decreased $356.5 million to $2.6 billion in the 2nd quarter of 2026.

Net Interest Income
Net interest income in the 2nd quarter of 2026 amounted to $315.1 million, an increase of $15.2 million over the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter increased $15.3 million over the previous quarter to $317.5 million. The increase in net interest income was mostly due to higher interest income on loans and investment securities and lower interest expense on borrowing and deposits, partly offset by lower interest income on deposits with banks. Accretion income on FineMark’s loans resulting from purchase accounting adjustments totaled $6.2 million. The net yield (FTE) on earning assets increased to 3.77%, from 3.59% in the prior quarter.

Compared to the previous quarter, interest income on loans (FTE) increased $3.1 million, mostly due to higher average balances of business and consumer loans and higher average rates earned on business loans. These increases were partly offset by lower average balances and rates on construction loans. The average yield (FTE) on the loan portfolio decreased six basis points to 5.73% this quarter.

Interest income on investment securities (FTE) increased $10.4 million over the prior quarter, mostly due to higher average balances and rates earned on U.S. government and federal agency obligations and higher rates earned on other securities, partly offset by lower average balances of asset-backed and mortgage-backed securities. Interest income earned on U.S. government and federal agency obligations included $9.1 million in TIPS inflation income, a $9.6 million increase over the previous quarter. Interest income on other securities included dividend income of $863 thousand related to a private equity investment. Additionally, the Company recorded a $1.1 million adjustment to premium amortization at June 30, 2026, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was higher than the $940
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Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of Second Quarter Results
June 30, 2026
thousand adjustment that increased interest income in the prior quarter. The average yield (FTE) on total investment securities was 3.42% in the current quarter, compared to 2.97% in the previous quarter.

Compared to the previous quarter, interest income on deposits with banks decreased $3.6 million due to lower average balances.

Interest expense decreased $4.4 million compared to the previous quarter, mainly due to lower average balances of deposits and borrowings. Interest expense on deposits decreased $2.3 million mostly due to lower average balances and rates paid on interest checking and money market deposit accounts. Interest expense on borrowings decreased $2.1 million mostly due to lower average balances of securities sold under agreements to repurchase. The average rate paid on interest bearing deposits was 1.57% in the current quarter compared to 1.61% in the prior quarter. The overall rate paid on interest bearing liabilities was 1.68% in the current quarter and 1.72% in the prior quarter.

Non-Interest Income
In the 2nd quarter of 2026, total non-interest income amounted to $183.8 million, an increase of $18.2 million, or 11.0%, over the same period last year and an increase of $8.0 million, or 4.5%, over the prior quarter. The increase in non-interest income over the same period last year was mainly due to higher trust fees and deposit account fees, partly offset by lower gains on sales of assets. The increase in non-interest income compared to the prior quarter was mainly due to higher bank card fee and swap fee income. Additionally, an increase of $2.5 million in fair value adjustments was recorded on the Company’s deferred compensation plan, which are held in a trust and recorded as both an asset and a liability, affecting both other income and other expense.

Total net bank card fees in the current quarter increased over the same period last year and the prior quarter by $1.8 million, or 3.8%, and $2.5 million, or 5.6%, respectively. Compared to the same period last year, net credit card fees increased $804 thousand, or 24.8%, primarily due to lower rewards expense, and net merchant fees increased $212 thousand, or 3.6%, primarily due to lower royalty expense and lower network expense. Net corporate card fees increased $811 thousand, or 3.1%, due to higher interchange fees, partly offset by higher rewards expense, while debit card fees decreased $68 thousand. Total net bank card fees this quarter were comprised of fees on corporate card ($26.7 million), debit card ($11.2 million), merchant ($6.1 million) and credit card ($4.0 million) transactions.

In the current quarter, trust fees increased $15.9 million, or 28.7%, over the same period last year, and increased $463 thousand, over the prior quarter, mostly resulting from higher private client fees. Compared to the same period last year, deposit
account fees increased $3.0 million, or 11.5%, mostly due to higher corporate cash management fees.

For the 2nd quarter of 2026, non-interest income comprised 36.8% of the Company’s total revenue.

Investment Securities Gains and Losses
The Company recorded net securities gains of $12.8 million in the current quarter, compared to net gains of $11.6 million in the prior quarter and $437 thousand in the 2nd quarter of 2025. Net securities gains in the current quarter resulted primarily from gains of $105.4 million recognized on Visa Inc. (“Visa”) common stock and $8.6 million on other equity securities. During the 2nd quarter of 2026, the Company sold 103 thousand shares of Visa Class A common stock (converted from 26 thousand shares of Visa Class C common stock) at an average price of $333.11. As of June 30, 2026, the Company has sold one third of the Visa Class C shares it received from the 2026 Visa exchange offer. Partly offsetting these gains, net fair value losses of $4.0 million were recorded on the Company’s portfolio of private equity investments. In addition, as a result of the completion of the Company’s previously disclosed repositioning of a portion of its available for sale debt securities portfolio, net losses of $97.7 million were realized during the quarter.

Non-Interest Expense
Non-interest expense for the current quarter amounted to $297.1 million, compared to $244.4 million in the same period last year and $291.1 million in the prior quarter. The increase in non-interest expense over the same period last year was mainly due to higher salaries and benefits expense, data processing and software expense, professional and other services expense, litigation expense, and intangible amortization expense. The increase in non-interest expense over the prior quarter was mainly due to higher salaries expense and litigation expense, partly offset by lower benefits expense and professional and other services expense.

Compared to the 2nd quarter of 2025, salaries and employee benefits expense increased $24.9 million, or 16.1%, mostly due to the onboarding of FineMark’s team members at the beginning of 2026. Acquisition-related salaries and benefits expense was $3.7 million in the current quarter. Full-time equivalent employees totaled 4,976 and 4,658 at June 30, 2026 and 2025, respectively.

Compared to the same period last year, data processing and software expense increased $5.3 million due to higher costs for service providers and software. Professional and other services expense increased $3.5 million compared to the 2nd quarter of 2025, and included $1.5 million in acquisition-related legal and professional services expense. The increase in other non-interest expense was mainly due to increases of $12.0 million in litigation expense
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Exhibit 99.1
COMMERCE BANCSHARES, INC.                                
Management Discussion of Second Quarter Results
June 30, 2026
and $5.4 million in intangible amortization expense related to the FineMark acquisition.

Income Taxes
The effective tax rate for the Company was 22.3% in the current quarter, 22.4% in the prior quarter, and 21.8% in the 2nd quarter of 2025.

Credit Quality
Net loan charge-offs in the 2nd quarter of 2026 amounted to $9.5 million, compared to $15.0 million in the prior quarter, and $9.7 million in the same period last year. The ratio of annualized net charge-offs to total average loans was .19% in the current quarter, .30% in the previous quarter, and .22% in the same quarter of last year. Compared to the prior quarter, net charge-offs on business real estate loans decreased $5.4 million.

In the 2nd quarter of 2026, annualized net charge-offs on average consumer credit card loans were 5.18%, compared to 5.21% in the previous quarter and 5.08% in the same quarter last year. Consumer loan net charge-offs were .26% of average consumer loans in the current quarter, .30% in the prior quarter, and .40% in the same quarter last year.

At June 30, 2026, the allowance for credit losses on loans totaled $195.4 million, or .94% of total loans, and decreased $3.2 million compared to the prior quarter. Additionally, the liability for unfunded lending commitments on June 30, 2026 was $20.1 million, an increase of $2.4 million compared to the liability on March 31, 2026.

At June 30, 2026, total non-accrual loans amounted to $11.6 million, an increase of $698 thousand compared to the previous quarter. At June 30, 2026, the balance of non-accrual loans, which represented .06% of loans outstanding, included business real estate loans of $9.4 million, personal real estate loans of $2.1 million and business loans of $92 thousand. Loans more than 90 days past due and still accruing interest totaled $23.7 million at June 30, 2026.

Other
During the 2nd quarter of 2026, the Company paid a cash dividend of $.275 per common share, representing a 5% increase over the same period last year. The Company purchased approximately 2.1 million shares of treasury stock during the current quarter at an average price of $53.03.

Forward Looking Information
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions, and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and
are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Additional information about risks and uncertainties is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within the Company's Annual Report on Form 10-K.
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