CBSH

MKT CAP $7.9BP/E 13.9DIV YIELD 1.90%FCF YIELD 15.34%REV TTM —NET INCOME $583.6M +4.6%NET CASH $56.5M52W 47.49 – 60.33SEC XBRL · TTM TO Invalid Date

How CBSH rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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Customers are served from 236 locations primarily in Missouri, Kansas, Illinois, Oklahoma and Colorado and commercial offices throughout the nation's midsection.
Among these indicators are the following: • Net income and earnings per share — Net income attributable to Commerce Bancshares, Inc. during 2025 was $566.3 million, an increase of 7.6% compared to the previous year.
The return on average assets was 1.79% in 2025, and the return on average common equity was 15.76%.
Diluted earnings per share increased 9.5% in 2025 compared to 2024. • Total revenue — Total revenue is comprised of net interest income and non-interest income.
Total revenue in 2025 increased $108.3 million, or 6.5%, from 2024, as net interest income grew $71.6 million, and non-interest income increased $36.7 million.
Growth in net interest income resulted principally from increases in interest income from investment securities, and a decrease in interest expense on borrowings and deposits.
The increase in non-interest income in 2025 was mainly due to higher trust fees and deposit account fees, partly offset by lower bank card fees. • Non-interest expense — Total non-interest expense increased 3.0% this year compared to 2024, mainly due to higher salaries and employee benefits expense and professional and other services expense, partially offset by lower deposit insurance expense. • Asset quality — Net loan charge-offs totaled $40.7 million in 2025, an increase of $1.8 million from those recorded in 2024, and averaged .23% of loans in both 2025 and 2024.
Total non-performing assets, which include non-accrual loans and foreclosed real estate, amounted to $17.0 million at December 31, 2025, compared to $18.6 million at December 31, 2024, and represented .10% of loans outstanding at December 31, 2025. • Shareholder return — During 2025, the Company paid cash dividends of $1.05 per share on its common stock, representing an increase of 6.9% over the previous year.
In 2025, the Company issued its 32nd consecutive annual 5% common stock dividend, and in February 2026, the Company's Board of Directors authorized an increase of 5.0% in the common cash dividend.
The Company purchased 3,608,530 shares in 2025.
Total shareholder return, including the change in stock price and dividend reinvestment, was 2.1%, 9.1%, and 9.2% over the past 5, 10, and 15 years, respectively.
Key Ratios 2025 2024 2023 2022 2021 (Based on average balances) Return on total assets 1.79 % 1.72 % 1.49 % 1.45 % 1.55 % Return on common equity 15.76 16.66 17.94 17.31 15.37 Equity to total assets 11.34 10.29 8.33 8.39 10.11 Loans to deposits (1) 69.80 69.73 66.31 55.41 56.46 Non-interest bearing deposits to total deposits 29.55 29.97 32.61 39.02 40.46 Net yield on interest earning assets (tax equivalent basis) 3.63 3.47 3.16 2.85 2.58 (Based on end of period data) Non-interest income to revenue (2) 36.97 37.18 36.47 36.71 40.15 Efficiency ratio (3) 55.47 57.37 59.17 56.90 57.64 Tier I common risk-based capital ratio 17.34 16.71 15.25 14.13 14.34 Tier I risk-based capital ratio 17.34 16.71 15.25 14.13 14.34 Total risk-based capital ratio 18.16 17.48 16.03 14.89 15.12 Tier I leverage ratio 12.65 12.26 11.25 10.34 9.13 Tangible common equity to tangible assets ratio (4) 11.11 9.92 8.85 7.32 9.01 Common cash dividend payout ratio 25.89 26.50 28.24 26.10 23.12 (1) Includes loans held for sale.
It provides a meaningful basis for period to period and company to company comparisons, and also assists regulators, investors and analysts in analyzing the financial position of the Company.
(Dollars in thousands) 2025 2024 2023 2022 2021 Total equity $ 3,814,772 $ 3,332,475 $ 2,964,230 $ 2,481,577 $ 3,448,324 Less non-controlling interest 23,401 22,594 20,114 16,286 11,026 Less goodwill 146,539 146,539 146,539 138,921 138,921 Less intangible assets* 3,723 3,864 4,058 4,305 4,604 Total tangible common equity (a) $ 3,641,109 $ 3,159,478 $ 2,793,519 $ 2,322,065 $ 3,293,773 Total assets $ 32,915,089 $ 31,996,627 $ 31,701,061 $ 31,875,931 $ 36,689,088 Less goodwill 146,539 146,539 146,539 138,921 138,921 Less intangible assets* 3,723 3,864 4,058 4,305 4,604 Total tangible assets (b) $ 32,764,827 $ 31,846,224 $ 31,550,464 $ 31,732,705 $ 36,545,563 Tangible common equity to tangible assets ratio (a)/(b) 11.11 % 9.92 % 8.85 % 7.32 % 9.01 % * Intangible assets other than mortgage servicing rights.
Results of Operations $ Change % Change (Dollars in thousands) 2025 2024 2023 '25-'24 '24-'23 '25-'24 '24-'23 Net interest income $ 1,111,858 $ 1,040,246 $ 998,129 $ 71,612 $ 42,117 6.9 % 4.2 % Provision for credit losses (56,138) (32,903) (35,451) 23,235 (2,548) 70.6 (7.2) Non-interest income 652,281 615,553 573,045 36,728 42,508 6.0 7.4 Investment securities gains (losses), net 3,660 7,823 14,985 (4,163) (7,162) (53.2) (47.8) Non-interest expense (979,826) (951,229) (930,982) 28,597 20,247 3.0 2.2 Income taxes (161,136) (145,089) (134,549) 16,047 10,540 11.1 7.8 Income (expense) attributable to non-controlling interest (4,448) (8,070) (8,117) (3,622) (47) (44.9) (.6) Net income attributable to Commerce Bancshares, Inc. $ 566,251 $ 526,331 $ 477,060 $ 39,920 $ 49,271 7.6 % 10.3 % N.M. - Not meaningful.
(net income) for 2025 was $566.3 million, an increase of $39.9 million, or 7.6%, compared to $526.3 million in 2024.
Diluted income per common share was $4.04 in 2025, compared to $3.69 in 2024.
The growth in net income resulted mainly from increases of $71.6 million in net interest income and $36.7 million in non-interest income, partly offset by increases in non-interest expense and the provision for credit losses of $28.6 million and $23.2 million, respectively.
The return on average assets was 1.79% in 2025 compared to 1.72% in 2024, and the return on average common equity was 15.76% in 2025 compared to 16.66% in 2024.
At December 31, 2025, the ratio of tangible common equity to tangible assets increased to 11.11%, compared to 9.92% at year end 2024.
During 2025, net interest income grew mainly due to an increase of $38.4 million in interest income earned on investment securities and $19.7 million in interest income on securities purchased under resell agreements, both due to higher average balances and rates, and a decrease of $39.7 million in interest expense on deposits, mainly due to lower average rates.
These increases to net interest income were partly offset by a decrease of $26.3 million in interest earned on loans, due to lower average rates, partly offset by higher average balances.
Total rates earned on average interest earning assets decreased six basis points this year, while funding costs decreased 28 basis points for deposits and 69 basis points for borrowings.
These increases were slightly offset by a decrease in the liability for unfunded lending commitments.
Net loan charge-offs increased $1.8 million, mainly due to higher consumer credit card and business loan net charge-offs in 2025.
Non-interest income grew 6.0% in 2025, mainly due to increases in trust fees and deposit account fees.
Net investment securities gains of $3.7 million were recorded in 2025 and were comprised mainly of fair value gains on the Company's private equity investment portfolio, partly offset by losses on sales of available for sale debt securities.
Non-interest expense increased $28.6 million in 2025 compared to 2024, mainly due to higher salaries and benefits expense, data processing and software expense and professional and other services expense.
Diluted income per common share was $3.69 in 2024, compared to $3.30 in 2023.
Total rates earned on average interest earning assets increased 52 basis points in 2024, while funding costs increased 52 basis points for deposits and decreased 28 basis points for borrowings.
The provision for credit losses increased mainly due to higher net loan charge-offs and an increase in the estimate of the allowance for credit losses on loans this year compared to 2023.
The Company distributed a 5% stock dividend for the 32nd consecutive year on December 16, 2025.
All per share and average share data in this report has been restated for the 2025 stock dividend.
Assumptions, Judgments, and Uncertainties: The uncertainty in the estimation of the allowance for credit losses is created because key assumptions and judgments are applied throughout the process.
At December 31, 2025, assets and liabilities measured using observable inputs that are classified as either Level 1 or Level 2 represented 98.0% and 99.8% of total assets and liabilities recorded at fair value, respectively.
Valuations generated from model-based techniques that use at least one significant assumption not observable in the market are considered Level 3, and the Company's Level 3 assets totaled $185.5 million, or 2.0% of total assets recorded at fair value on a recurring basis.
Changes not solely due to volume or rate changes are allocated to rate. 2025 2024 Change due to Change due to (In thousands) Average Volume Average Rate Total Average Volume Average Rate Total Interest income, fully taxable-equivalent basis Loans: Business $ 18,119 $ (25,213) $ (7,094) $ 8,671 $ 24,588 $ 33,259 Real estate - construction and land (2,146) (13,594) (15,740) (2,780) 4,099 1,319 Real estate - business 3,066 (12,389) (9,323) 4,510 8,004 12,514 Real estate - personal 432 8,024 8,456 2,374 10,597 12,971 Consumer 2,721 (2,824) (103) 591 15,607 16,198 Revolving home equity 2,260 (425) 1,835 2,312 211 2,523 Consumer credit card 219 (4,196) (3,977) (35) 864 829 Total interest on loans 24,671 (50,617) (25,946) 15,643 63,970 79,613 Loans held for sale (40) 6 (34) (402) (16) (418) Investment securities: U.S. government and federal agency obligations 44,467 9,132 53,599 14,982 20,893 35,875 Government-sponsored enterprise obligations (12) (2) (14) (208) (154) (362) State and municipal obligations (5,079) 454 (4,625) (10,249) (691) (10,940) Mortgage-backed securities (16,979) (2,148) (19,127) (18,183) 1,977 (16,206) Asset-backed securities (6,017) 15,743 9,726 (21,116) 8,309 (12,807) Other securities (2,588) 1,468 (1,120) 9,165 (13,175) (4,010) Total interest on investment securities 13,792 24,647 38,439 (25,609) 17,159 (8,450) Federal funds sold (13) (5) (18) (619) 9 (610) Securities purchased under agreements to resell 13,090 6,642 19,732 (5,434) 5,143 (291) Interest earning deposits with banks 5,524 (23,165) (17,641) 18,170 22 18,192 Total interest income 57,024 (42,492) 14,532 1,749 86,287 88,036 Interest expense Interest bearing deposits: Savings (16) (95) (111) (76) 93 17 Interest checking and money market 14,474 (30,931) (16,457) 5,890 74,577 80,467 Certificates of deposit of less than $100,000 (69) (8,125) (8,194) 1,619 1,917 3,536 Certificates of deposit of $100,000 and over (3,794) (11,180) (14,974) 843 5,160 6,003 Federal funds purchased (5,321) (1,382) (6,703) (13,553) 509 (13,044) Securities sold under agreements to resell 4,020 (15,044) (11,024) 1,478 6,266 7,744 Other borrowings 27 (13) 14 (39,487) 14 (39,473) Total interest expense 9,321 (66,770) (57,449) (43,286) 88,536 45,250 Net interest income, fully taxable-equivalent basis $ 47,703 $ 24,278 $ 71,981 $ 45,035 $ (2,249) $ 42,786 Net interest income totaled $1.1 billion in 2025, increasing $71.6 million, or 6.9%, compared to $1.0 billion in 2024.
On a fully taxable-equivalent (FTE) basis, net interest income totaled $1.1 billion, and increased $72.0 million over 2024.
This growth was mainly due to increases of $38.4 million in interest earned on investment securities (FTE), due to higher average balances and rates earned and a decrease of $39.7 million in interest expense on interest bearing deposits, mainly due to lower average rates paid.
These increases to income were partly offset by a decrease of $25.9 million in interest earned on loans (FTE), due to lower average rates earned, partly offset by higher average balances.

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Gone since FY2024

Customers are served from 243 locations in Missouri, Kansas, Illinois, Oklahoma and Colorado and commercial offices throughout the nation's midsection.
Among these indicators are the following: • Net income and earnings per share — Net income attributable to Commerce Bancshares, Inc. during 2024 was $526.3 million, an increase of 10.3% compared to the previous year.
The return on average assets was 1.72% in 2024, and the return on average common equity was 16.66%.
Diluted earnings per share increased 11.8% in 2024 compared to 2023. • Total revenue — Total revenue is comprised of net interest income and non-interest income.
Total revenue in 2024 increased $84.6 million, or 5.4%, from 2023, as net interest income grew $42.1 million, and non-interest income increased $42.5 million.
Growth in net interest income resulted principally from increases in interest income from loans, partly offset by an increase in interest expense on deposits.
The increase in non-interest income in 2024 was mainly due to higher trust fees, supplemented by higher deposit account fees and capital market fees. • Non-interest expense — Total non-interest expense increased 2.2% this year compared to 2023, mainly due to higher salaries and employee benefits expense, partially offset by lower deposit insurance expense due to a special FDIC assessment accrued in 2023. • Asset quality — Net loan charge-offs totaled $38.9 million in 2024, an increase of $7.8 million from those recorded in 2023, and averaged .23% of loans in 2024, as compared to .19% of loans in 2023.
Total non-performing assets, which include non-accrual loans and foreclosed real estate, amounted to $18.6 million at December 31, 2024, compared to $7.6 million at December 31, 2023, and represented .11% of loans outstanding at December 31, 2024. • Shareholder return — During 2024, the Company paid cash dividends of $1.03 per share on its common stock, representing an increase of 5.0% over the previous year.
In 2024, the Company issued its 31st consecutive annual 5% common stock dividend, and in February 2025, the Company's Board of Directors authorized an increase of 7.0% in the common cash dividend.
The Company purchased 2,875,349 shares in 2024.
Total shareholder return, including the change in stock price and dividend reinvestment, was 5.1%, 10.8%, and 10.7% over the past 5, 10, and 15 years, respectively.
Key Ratios 2024 2023 2022 2021 2020 (Based on average balances) Return on total assets 1.72 % 1.49 % 1.45 % 1.55 % 1.20 % Return on common equity 16.66 17.94 17.31 15.37 10.64 Equity to total assets 10.29 8.33 8.39 10.11 11.18 Loans to deposits (1) 69.73 66.31 55.41 56.46 67.73 Non-interest bearing deposits to total deposits 29.97 32.61 39.02 40.46 37.83 Net yield on interest earning assets (tax equivalent basis) 3.47 3.16 2.85 2.58 2.99 (Based on end of period data) Non-interest income to revenue (2) 37.18 36.47 36.71 40.15 37.87 Efficiency ratio (3) 57.37 59.17 56.90 57.64 57.19 Tier I common risk-based capital ratio 16.71 15.25 14.13 14.34 13.71 Tier I risk-based capital ratio 16.71 15.25 14.13 14.34 13.71 Total risk-based capital ratio 17.48 16.03 14.89 15.12 14.82 Tier I leverage ratio 12.26 11.25 10.34 9.13 9.45 Tangible common equity to tangible assets ratio (4) 9.92 8.85 7.32 9.01 9.92 Common cash dividend payout ratio 26.50 28.24 26.10 23.12 35.32 (1) Includes loans held for sale.
It provides a meaningful basis for period to period and company to company comparisons, and also assist regulators, investors and analysts in analyzing the financial position of the Company.
(Dollars in thousands) 2024 2023 2022 2021 2020 Total equity $ 3,332,475 $ 2,964,230 $ 2,481,577 $ 3,448,324 $ 3,399,972 Less non-controlling interest 22,594 20,114 16,286 11,026 2,925 Less goodwill 146,539 146,539 138,921 138,921 138,921 Less intangible assets* 3,864 4,058 4,305 4,604 4,958 Total tangible common equity (a) $ 3,159,478 $ 2,793,519 $ 2,322,065 $ 3,293,773 $ 3,253,168 Total assets $ 31,996,627 $ 31,701,061 $ 31,875,931 $ 36,689,088 $ 32,922,974 Less goodwill 146,539 146,539 138,921 138,921 138,921 Less intangible assets* 3,864 4,058 4,305 4,604 4,958 Total tangible assets (b) $ 31,846,224 $ 31,550,464 $ 31,732,705 $ 36,545,563 $ 32,779,095 Tangible common equity to tangible assets ratio (a)/(b) 9.92 % 8.85 % 7.32 % 9.01 % 9.92 % * Intangible assets other than mortgage servicing rights.
Results of Operations $ Change % Change (Dollars in thousands) 2024 2023 2022 '24-'23 '23-'22 '24-'23 '23-'22 Net interest income $ 1,040,246 $ 998,129 $ 942,185 $ 42,117 $ 55,944 4.2 % 5.9 % Provision for credit losses (32,903) (35,451) (28,071) (2,548) 7,380 (7.2) 26.3 Non-interest income 615,553 573,045 546,535 42,508 26,510 7.4 4.9 Investment securities gains (losses), net 7,823 14,985 20,506 (7,162) (5,521) (47.8) (26.9) Non-interest expense (951,229) (930,982) (848,777) 20,247 82,205 2.2 9.7 Income taxes (145,089) (134,549) (132,358) 10,540 2,191 7.8 1.7 Income (expense) attributable to non-controlling interest (8,070) (8,117) (11,621) (47) (3,504) (.6) (30.2) Net income attributable to Commerce Bancshares, Inc. $ 526,331 $ 477,060 $ 488,399 $ 49,271 $ (11,339) 10.3 % (2.3) % N.M. - Not meaningful.
Diluted income per common share was $3.87 in 2024, compared to $3.46 in 2023.
Total rates earned on average interest earning assets increased 52 basis points this year, while funding costs increased 52 basis points for deposits and decreased 28 basis points for borrowings.
Net income for 2023 was $477.1 million, a decrease of $11.3 million, or 2.3%, compared to $488.4 million in 2022.
Diluted income per common share was $3.46 in 2023, compared to $3.50 in 2022.
The decrease in net income resulted mainly from an increase of $82.2 million in non-interest expense, partly offset by increases in net interest income of $55.9 million and non-interest income of $26.5 million.
The return on average assets was 1.49% in 2023 compared to 1.45% in 2022, and the return on average common equity was 17.94% in 2023 compared to 17.31% in 2022.
At December 31, 2023, the ratio of tangible common equity to tangible assets increased to 8.85%, compared to 7.32% at year end 2022.
During 2023, net interest income grew mainly due to increases of $338.1 million in interest income earned on loans and $88.2 million in interest income earned on deposits with banks, mainly due to higher average rates, partly offset by increases in interest expense on deposits and borrowings of $215.7 million and $110.2 million, respectively, mainly due to higher average rates paid.
Total rates earned on average interest earning assets increased 134 basis points in 2023, while funding costs for deposits and borrowings increased 156 basis points.
The provision for credit losses increased mainly due to higher net loan charge-offs and an increase in the estimate of the allowance for credit losses in 2023 compared to 2022.
Net loan charge-offs increased $12.0 million, mainly due to higher credit card, consumer and business loan net charge-offs in 2023.
Non-interest income grew 4.9% in 2023, mainly due to increases in bank card and trust fees.
Net investment securities gains of $15.0 million were recorded in 2023 and were comprised mainly of net fair value gains on the Company's private equity investment portfolio, partly offset by losses on sales of available for sale securities.
Non-interest expense increased $82.2 million in 2023 compared to 2022, mainly due to higher salaries and benefits expense and deposit insurance expense.
The Company distributed a 5% stock dividend for the 31st consecutive year on December 18, 2024.
All per share and average share data in this report has been restated for the 2024 stock dividend.
Assumptions, Judgments, and Uncertainties: The uncertainty in the estimation of the allowance for credit losses is created because key assumptions and judgements are applied throughout the process.
At December 31, 2024, assets and liabilities measured using observable inputs that are classified as either Level 1 or Level 2 represented 98.1% and 99.9% of total assets and liabilities recorded at fair value, respectively.
Valuations generated from model-based techniques that use at least one significant assumption not observable in the market are considered Level 3, and the Company's Level 3 assets totaled $185.4 million, or 2.0% of total assets recorded at fair value on a recurring basis.
Changes not solely due to volume or rate changes are allocated to rate. 2024 2023 Change due to Change due to (In thousands) Average Volume Average Rate Total Average Volume Average Rate Total Interest income, fully taxable-equivalent basis Loans: Business $ 8,671 $ 24,588 $ 33,259 $ 15,048 $ 113,212 $ 128,260 Real estate - construction and land (2,780) 4,099 1,319 12,264 43,081 55,345 Real estate - business 4,510 8,004 12,514 15,551 64,631 80,182 Real estate - personal 2,374 10,597 12,971 4,589 11,262 15,851 Consumer 591 15,607 16,198 840 36,426 37,266 Revolving home equity 2,312 211 2,523 1,023 9,127 10,150 Consumer credit card (35) 864 829 1,663 10,728 12,391 Total interest on loans 15,643 63,970 79,613 50,978 288,467 339,445 Loans held for sale (402) (16) (418) (137) 83 (54) Investment securities: U.S. government and federal agency obligations 14,982 20,893 35,875 (3,589) (12,585) (16,174) Government-sponsored enterprise obligations (208) (154) (362) 205 185 390 State and municipal obligations (10,249) (691) (10,940) (12,406) (3,435) (15,841) Mortgage-backed securities (18,183) 1,977 (16,206) (14,481) 7,436 (7,045) Asset-backed securities (21,116) 8,309 (12,807) (17,460) 17,062 (398) Other securities 9,165 (13,175) (4,010) 2,859 (1,819) 1,040 Total interest on investment securities (25,609) 17,159 (8,450) (44,872) 6,844 (38,028) Federal funds sold (619) 9 (610) 27 220 247 Securities purchased under agreements to resell (5,434) 5,143 (291) (11,987) 2,989 (8,998) Interest earning deposits with banks 18,170 22 18,192 6,630 81,520 88,150 Total interest income 1,749 86,287 88,036 639 380,123 380,762 Interest expense Interest bearing deposits: Savings (76) 93 17 (60) 76 16 Interest checking and money market 5,890 74,577 80,467 (4,055) 125,332 121,277 Certificates of deposit of less than $100,000 1,619 1,917 3,536 610 36,611 37,221 Certificates of deposit of $100,000 and over 843 5,160 6,003 5,231 51,928 57,159 Federal funds purchased (13,553) 509 (13,044) 9,117 14,312 23,429 Securities sold under agreements to resell 1,478 6,266 7,744 (124) 49,266 49,142 Other borrowings (39,487) 14 (39,473) 28,598 9,058 37,656 Total interest expense (43,286) 88,536 45,250 39,317 286,583 325,900 Net interest income, fully taxable-equivalent basis $ 45,035 $ (2,249) $ 42,786 $ (38,678) $ 93,540 $ 54,862 Net interest income totaled $1.0 billion in 2024, increasing $42.1 million, or 4.2%, compared to $998.1 million in 2023.
On a fully taxable-equivalent (FTE) basis, net interest income totaled $1.0 billion, and increased $42.8 million over 2023.
The higher rates earned on the loan portfolio were impacted by actions taken by the Federal Reserve in 2024 to lower short-term interest rates, which caused most of the Company's variable rate loan portfolio to re-price lower and fixed rate loans to originate at lower interest rates than the weighted-average of the portfolio of fixed rate loans.
Interest on construction and land loans grew $1.3 million over the prior year due to growth in the average rate earned of 29 basis points, partly offset by a decrease of $35.0 million, or 2.4%, in average loan balances.
The decrease in interest income was mainly due to lower interest income earned on mortgage-backed securities, asset-backed securities and state and municipal securities, partly offset by an higher interest income earned on U.S. government securities.
The decrease of $10.9 million in interest earned on state and municipal securities was due to a decrease of $497.5 million in average balances and a decline of seven basis points in average rate earned.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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