Commerce Bancshares, Inc. (CBSH) SEC Filings & Earnings Calls

Deposit outflows continued with average deposits down 1.3% QoQ

“Total average deposits decreased $361.6 million, or 1.3%, from the prior quarter to $27.2 billion.” · word for word

Net interest margin slightly compressed due to TIPS inflation income reversal

“The net yield on interest earning assets decreased six basis points to 3.71%.” · word for word

Expense pressure from acquisition integration

“Non-interest expense increased $52.6 million, or 21.5%, over the second quarter of 2025, mainly due to higher salaries and benefits expense of $24.9 million, primarily a result of onboarding FineMark team members at the beginning of 2026.” · word for word

Litigation expense

“Other non-interest expense increased $15.6 million, primarily due to $12.0 million in litigation expense” · word for word

Credit loss provision increase

“The provision for credit losses increased $3.1 million compared to the same quarter in the prior year.” · word for word

Deposit outflows may pressure funding costs if trend continues

“Total average deposits decreased $135.0 million, or .5%, from the prior quarter” · word for word

Securities portfolio repositioning realized a $97.7M loss

“$97.7 million loss on the repositioning of a portion of the Company's available for sale debt securities portfolio” · word for word

Market risk: actual loss on securities repositioning may vary depending on market conditions and Visa stock price

“The timing and amount of the loss ultimately realized on the available for sale debt securities and the reinvestment assumptions may depend on a number of factors, including market conditions, the future price of Visa Class A common stock” · word for word

Acquisition integration cost pressure

“Non-interest expense increased $52.8 million, or 22.1%, over the first quarter of 2025, mainly due to higher salaries and benefits expense of $27.7 million, primarily a result of onboarding FineMark team members and acquisition-related compensation payments.” · word for word

Commercial real estate loan charge-offs

“Commercial net loan charge-offs (recoveries) 5,646 214 423” · word for word

Potential significant loss from AFS debt securities repositioning.

“may result in a significant loss during the second quarter of 2026” · word for word

Elevated acquisition-related expenses temporarily pressured efficiency ratio and ROA

“Quarterly profitability metrics reflected elevated acquisition-related expenses of approximately $14 million, which temporarily pressured the efficiency ratio and return on average assets.” · word for word

Transition of key accounting officer; internal successor reduces risk.

“Resignation of Corporate Controller and Chief Accounting Officer.”

Interest Rate Volatility Impact on Valuation

“During periods of heightened interest rate volatility and sector‑wide pressure on bank valuations, companies with higher starting valuation multiples have experienced greater multiple compression” · word for word

Credit deterioration in consumer portfolios

“Consumer credit card loan net charge-offs were 4.81% of average consumer credit card loans in 2025, compared to 4.64% in 2024” · word for word

Deposit cost pressure

“Interest expense on deposits increased $90.0 million over 2023 and resulted mainly from a 52 basis point increase in the overall average rate paid on deposits.” · word for word

Credit quality remains excellent with non-accrual loans at 0.09% of total loans.

“Credit quality remains excellent with non-accrual loans at .09% of total loans, down two basis points from the same period last year.” · word for word

Integration risk from FineMark acquisition; potential dilution from stock issuance.

“the dilution caused by Commerce’s issuance of common stock in connection with the acquisition” · word for word

Rising provision for credit losses

“Provision for credit losses increased $10.9 million compared to the same quarter in the prior year.” · word for word

Consumer credit card charge-off increase

“Consumer credit card net charge-offs increased to 4.59% annualized in Q3 2025 from 4.46% in Q3 2024.”

Declining loan yields

“The decrease in loan interest income from the same quarter of last year was primarily due to a decline of 33 basis points in the average rate earned” · word for word