Commerce Bancshares Posts Higher Profit and EPS Across Quarter and Half-Year, With Cash-Flow Lines Moving in Authorized Directions

Bottom line

09 per diluted share USD/SHARES. 02 per diluted share USD/SHARES. In each case the prior-year period was also a profit, so the year-over-year change is an increase from profit to a higher profit on both the quarterly and the year-to-date measures; the filing evidence does not attribute this change to any single cause.

The filing is the 10-Q of COMMERCE BANCSHARES INC /MO/ for the period-ended-2026-06-30, filed under accession 0000022356-26-000190 and identified by CIK 0000022356 and ticker CBSH. The interim periods covered by the reported income measures are the three-month reporting period the three months ended June 30, 2026 with prior-year comparative the three months ended June 30, 2025, and the six-month year-to-date period the six months ended June 30, 2026 with prior-year comparative the six months ended June 30, 2025. , which the Company acquired as described in Note 2 and which is consolidated from the date of acquisition.

The cited acquisition note is therefore within the scope of the reported results above, while the goodwill and other intangible assets policy referenced in Note 5 and the Part I and Part II item headings referenced in Item 1, Item 2, Item 3, Item 4, Item 5 and Item 6 are filing-level context outside the income-statement scope of this section. Segment-level detail, peer or industry comparison, and a single attributable cause for the year-over-year profit increases are not addressed here, as the filing evidence does not disclose segment-level detail for this dimension, contains no peer or industry comparison, and does not attribute the change to any single cause.

Financial performance

Reported profitability for COMMERCE BANCSHARES INC /MO/ (CBSH) in this 10-Q for period-ended-2026-06-30 (accession 0000022356-26-000190, CIK 0000022356) is anchored by four reported figures on the income statement: three-month and six-month earnings per diluted share and net income attributable to parent, together with their prior-year comparatives. 02 per diluted share. On the bottom line, three-month $159,790,000 exceeds three-month $152,479,000, and six-month $301,413,000 exceeds six-month $284,071,000.

Each comparison is a year-over-year increase without a change in sign; the company remained profitable in every cited period, and the half-year increase in net income tracks the half-year increase in diluted EPS, which is consistent with no change in the basic-versus-diluted share treatment between the reporting periods. The reported half-year EPS and half-year net income relations are both continued profitability increases, and the same transition applies to the three-month EPS and three-month net income relations.

No quarter-over-quarter comparison is asserted for this section; the only reported relations in scope are the year-over-year transitions cited above, and management has not provided quantified forward-period guidance in the filing evidence beyond the framing that the six-month results are not necessarily indicative of results to be attained for the full year or any other interim period. S. GAAP for interim financial information and the instructions to 10-Q adopted by the Securities and Exchange Commission, with the consolidated statements to be read alongside the Company's most recent Annual Report on the corresponding annual form.

During the period covered the Company adopted a new ASU that reworks the accounting for certain acquired seasoned loans under the current expected credit loss model: under the new model, the initial allowance for credit losses on in-scope loans is recognized as an adjustment to the amortized cost basis, the day-one estimate is amortized over time as an adjustment to interest income rather than hitting earnings immediately, and subsequent changes are reported within the provision for credit losses. The updated policy distinguishes purchased credit deteriorated loans, with their initial allowance grossed up to the loan's amortized cost basis at acquisition, from non-PCD purchased seasoned loans, which receive the same gross-up treatment for the initial expected-credit-loss estimate.

As discussed in Note 2 "Acquisition" and Note 5 "Goodwill and Other Intangible Assets," the same acquisition that triggered the policy adoption also drives the intangibles referenced in those notes. The driver behind the change in reported earnings between the current and prior periods is captured by The filing evidence does not attribute this change to any single cause.. , with FineMark National Bank & Trust merging into the Bank on a stated date early in the year, accounted for as a business combination using the purchase method under FASB ASC Topic on Business Combinations.

Management flags that the valuation of assets acquired and liabilities assumed has not yet been finalized, that fair-value estimation relies on subjective inputs such as discount rates and expected future cash flows, and that any necessary measurement-period adjustments will be recorded in the period in which they are determined as if they had been completed at the acquisition date; the refinements specifically called out cover loans, certain deposits, the core deposit, customer relationship, trade name intangible assets, and certain other assets.

Loan fair values are based on a discounted cash flow methodology that considers loan type and collateral, classification status, fixed versus variable interest rate, prepayment rate, term, amortization status and current discount rates. The remaining items touched on in the filing are not quantified numerically in this section. The filing evidence supplies a direction for each but no currency amount: operating cash flow higher than the prior-year period, financing cash flow a smaller outflow than the prior-year period, investing cash flow a swing from an outflow to an inflow, property-spends cash outflow smaller than the prior-year period, and higher repurchase and dividend outflows; the same held-constant positive direction applies to accretion of discounts and premiums on investments and to share-based payment APIC cost recognition in both the half-year and quarter views.

The filing evidence does not attribute this change to any single cause. applies to every relation. , and no peer or industry comparison is contained in the evidence, which is captured by The filing evidence contains no peer or industry comparison..

Operating drivers and segments

The filing evidence does not disclose segment-level detail for this dimension. Commerce Bancshares operates almost entirely through its subsidiary bank, Commerce Bank, and the filing narrative frames the consolidated entity as a single line of business; no separate operating segments are broken out for the quarter or half-year periods under review. The only statement of subsidiary scope in the excerpt is that "most of the Company's operations are conducted by its subsidiary bank, Commerce Bank (the Bank)," which is descriptive rather than quantitative.

Because the financial statements supplied to this section are limited to the four net income observations and a small set of cash-flow and equity-relation authorizations, there is no underlying revenue mix, net interest margin, fee-income split, or non-bank subsidiary contribution from which a segment margin could be reconstructed. Any reading of margin movement by line of business would therefore be unsupported by the cited evidence. The acquirer side does introduce one structural detail — FineMark Holdings, Inc.

was brought into consolidation effective January of the current fiscal year and FineMark National Bank & Trust was merged into the Bank immediately after the acquisition — but that disclosure identifies the consolidation event rather than the operating driver behind the current-period profit levels. For that reason the operating-driver picture here rests on the bottom-line profit comparison and on the labelled year-over-year relations rather than on any segment decomposition. Management's own commentary in the excerpt is procedural, not interpretive.

" None of that text offers a management rationale — higher net interest income, lower provision, expense discipline, integration savings, or otherwise — for the year-over-year movement in net income. Management also explains that the consolidated balance sheet now includes FineMark from the acquisition date and points the reader to the cited acquisition note for further detail, but again does not quantify any synergy, cost, or revenue effect. Because no management cause-and-effect statement is present in the quoted material, any attempt in this section to attribute the profit change to a particular operating factor would not be grounded in the filing evidence and is accordingly withheld; the machine-owned causality notice applies.

Independent inference, restricted to the labelled relations the catalog authorizes: the parent-attributable profit moved higher on both a three-month and a six-month year-to-date basis relative to the prior-year comparative, and that improvement is corroborated by a higher diluted earnings-per-share figure on both bases. The investing-activity line flipped from a use of cash to a source of cash on a six-month basis, while operating cash flow remained a source and increased, and financing cash remained a use and deepened; capital-return activity, both share repurchases and dividend payments, rose, while payments to acquire property, plant and equipment fell.

None of those authorized relations carries a causality flag in the catalog — the filing evidence supports no cause-and-effect claim — so the section stops at that point rather than speculating about whether the FineMark consolidation, the cash-flow mix, or the balance-sheet repositioning drove the bottom-line result. Counter-evidence and unknowns: the excerpt contains no peer or industry comparison, no provision-for-credit-losses trajectory, no net interest margin disclosure, and no expense ratio; the cited goodwill and other intangible assets note is referenced only by title in the excerpt and is not reproduced here, so its contents cannot be weighed.

The acquisition note is similarly referenced but not quoted, leaving the FineMark contribution unmeasured. Any segment, margin, or causal statement beyond what is written above would exceed the supported evidence and is therefore omitted.

Cash flow and capital

The 10-Q filed by COMMERCE BANCSHARES INC /MO/ for period-ended-2026-06-30 under accession 0000022356-26-000190 includes a six-month year-to-date statement of cash flows covering the six months ended June 30, 2026 with the prior-year comparative for the six months ended June 30, 2025. - Reported facts (cash flow categories, six-month year-to-date): - Net Cash Provided by (Used in) Operating Activities was $249,796,000 USD for the six months ended June 30, 2025 and $866,655,000 USD for the six months ended June 30, 2026; the authorized comparison states that operating cash flow increased year over year, with the current state remaining positive and the prior state also positive.

The filing evidence does not attribute this change to any single cause. - Net Cash Provided by (Used in) Investing Activities was -$250,732,000 USD for the six months ended June 30, 2025 and $532,258,000 USD for the six months ended June 30, 2026; the authorized comparison states that investing cash flow increased, with the prior state negative and the current state positive. The filing evidence does not attribute this change to any single cause.

- Net Cash Provided by (Used in) Financing Activities was -$228,721,000 USD for the six months ended June 30, 2025 and -$2,038,749,000 USD for the six months ended June 30, 2026; the authorized comparison states that financing cash flow decreased, with both the current and prior states negative. The filing evidence does not attribute this change to any single cause. - Reported facts (capital allocation line items, six-month year-to-date): - Payments for Repurchase of Common Stock were $67,047,000 USD for the six months ended June 30, 2025 and $196,347,000 USD for the six months ended June 30, 2026; the authorized comparison states that share repurchases increased, with both states positive.

The filing evidence does not attribute this change to any single cause. - Payments of Dividends were $77,004,000 USD for the six months ended June 30, 2025 and $82,617,000 USD for the six months ended June 30, 2026; the authorized comparison states that dividends paid increased, with both states positive. The filing evidence does not attribute this change to any single cause.

- Payments to Acquire Property, Plant, and Equipment were $23,267,000 USD for the six months ended June 30, 2025 and $19,136,000 USD for the six months ended June 30, 2026; the authorized comparison states that capital expenditures decreased, with both states positive. The filing evidence does not attribute this change to any single cause. - Management explanations: The narrative excerpts from the filing discuss fair-value allocation of acquired assets and liabilities, including acquired loans, core deposit and customer relationship intangibles, and FHLB debt; integration costs; and pro forma combined results as if the FineMark acquisition had occurred earlier.

These passages describe accounting treatment rather than the drivers of the three cash flow categories or the capital allocation lines. - Analyst inference: Higher financing outflows in the current six-month period alongside higher dividends and higher share repurchases are consistent with capital return exceeding the prior-year pace, while working-capital and operating performance generated a somewhat larger positive operating cash flow. Lower capital expenditures coincided with a swing from investing outflows to investing inflows relative to the prior year.

Counter-evidence is not present in the quoted excerpt. The filing evidence does not attribute this change to any single cause. - Counter-evidence: None surfaced in the quoted narrative.

- Unknowns: The filing does not present a discrete balance-sheet section in the supplied excerpt, so balance-sheet composition for the six months ended June 30, 2026 is not addressed here. Segment-level detail is not provided for the cash flow categories within the excerpt. The filing evidence does not disclose segment-level detail for this dimension.

The filing evidence contains no peer or industry comparison.

Peer and historical context

Year-over-year direction is authorized only through the reported comparison table, and the filing evidence contains no peer roster, no industry benchmark, and no prior-year quarterly balance sheet outside of the income and cash flow comparatives that appear in the cited note. Any broader cross-bank inference therefore falls outside what this filing alone can support. The peer dimension is entirely absent from the source narrative, and the historical dimension is limited to the same-issuer comparatives already enumerated.

No offsetting counter-fact is supplied because none exists in the ledger. Within the present-period frame of 10-Q filed under 0000022356-26-000190 by COMMERCE BANCSHARES INC /MO/ (CBSH, CIK 0000022356) for period-ended-2026-06-30, the only historical comparison this section can carry is the issuer's own year-over-year movement across the three-month and six-month income and cash-flow lines. For the three-month reporting period the three months ended June 30, 2026, Net Income (Loss) Attributable to Parent was $159,790,000 USD, higher than the prior-year comparative of $152,479,000 USD for the three months ended June 30, 2025.

The reported comparison registers this as a continued profitability increase, with The filing evidence does not attribute this change to any single cause.. The corresponding Earnings Per Share, Diluted comparison follows the same authorized pattern, moving from a prior-year profit to a current profit at a higher level over the same pair of periods. For the six-month year-to-date period the six months ended June 30, 2026, Net Income (Loss) Attributable to Parent was $301,413,000 USD, again higher than $284,071,000 USD for the six months ended June 30, 2025, under the same continued profitability, increase, unavailable-causality label.

The matching Earnings Per Share, Diluted comparison tracks that authorized direction across the half-year pair. The cash-flow side provides the only additional historical anchor. Net Cash Provided by (Used in) Operating Activities was $866,655,000 USD for the six months ended June 30, 2026, higher than $249,796,000 USD for the six months ended June 30, 2025.

The authorized comparison marks both states as positive, the relation as an increase, and the cause as The filing evidence does not attribute this change to any single cause.. Two further half-year cash-flow lines appear in the authorized comparison set but are not directly catalogued here as financial facts. Net Cash Provided by (Used in) Investing Activities moved from a prior-year negative state to a current positive state, an authorized increase with The filing evidence does not attribute this change to any single cause..

Net Cash Provided by (Used in) Financing Activities remained negative on both sides, with the current half-year at a higher cash outflow than the prior half-year, again flagged with The filing evidence does not attribute this change to any single cause.. Capital-return lines are referenced through the authorized set without independent figures: Payments of Dividends and Payments for Repurchase of Common Stock were each positive in both half-years and authorized as higher in the current half-year, while Payments to Acquire Property, Plant, and Equipment were positive in both half-years and authorized as lower in the current half-year, each carrying the same unavailable-causality tag.

Outside the issuer's own year-over-year movement, the filing evidence offers no peer set, no index, and no industry composite. The filing evidence contains no peer or industry comparison.. The acquisition narrative around the FineMark deal in the cited note, referenced as Note 2 in the catalog, addresses fair-value mechanics and post-acquisition integration rather than any external comparison, and segment-level detail for revenue or pre-tax income post-acquisition is itself flagged in that note as impracticable, which aligns with the broader The filing evidence does not disclose segment-level detail for this dimension.

condition. Accordingly, this section confines itself to the issuer-internal historical comparison the filing actually supports, and any read-across to a named peer set, regional banking index, or sector benchmark falls outside what the filing evidence authorizes.

Scenario analysis

The base case anchors on the reported profitability of COMMERCE BANCSHARES INC /MO/ for the three- and six-month periods covered by period-ended-2026-06-30 in the filing identified by 0000022356-26-000190. Net Income (Loss) Attributable to Parent was $159,790,000 USD for the three-month period the three months ended June 30, 2026, compared with $152,479,000 USD for the three months ended June 30, 2025, marking a year-over-year continued profitability increase. For the year-to-date, Net Income (Loss) Attributable to Parent was $301,413,000 USD for the six months ended June 30, 2026, up from $284,071,000 USD in the six months ended June 30, 2025, also a continued profitability increase.

Both shifts support a base view in which the bank sustains positive earnings power, with diluted earnings per share similarly higher in both the quarter and half-year comparisons (continued profitability increases in each). The pro-forma framing of the FineMark acquisition, referenced under Note 2, illustrates the consolidated footprint used to derive this baseline, while Note 5 situates the goodwill and intangible-asset position that anchors reported results. Under this base view, performance neither accelerates nor reverses, and reported profit simply continues at a higher level than the prior-year windows.

The filing evidence does not attribute this change to any single cause. An upside trajectory would require the year-over-year profit expansion visible in the three-month and six-month Net Income (Loss) Attributable to Parent series to deepen or broaden into the broader earnings stack. The diluted earnings per share line, already higher versus the prior-year quarter and half-year on a year-over-year basis, would need to extend that step-up into subsequent periods.

Net Cash Provided by (Used in) Operating Activities was higher year-to-date, while Net Cash Provided by (Used in) Investing Activities moved from negative to positive, leaving financing activity as the larger cash outflow of the three streams; a continued operating-cash improvement would reinforce the upside reading. The accelerated amortization schedule for the customer relationship intangible tied to the FineMark acquisition, described within Note 2, and the goodwill and intangible-asset disclosures in Note 5, define the non-cash charges that any upside path must absorb.

The qualitative direction established by these machine-authorised comparisons is one of measured profit accretion rather than a step change, and any further upside beyond the reported levels is not separately evidenced. The filing evidence does not attribute this change to any single cause. A downside scenario would require the reported year-to-date and quarterly profit increases to reverse direction.

Payments of Dividends and Payments for Repurchase of Common Stock were both higher than the prior-year half-year, indicating larger capital-return outflows, while Payments to Acquire Property, Plant, and Equipment were lower; together these would compress cash available for downside absorption. Accretion (Amortization) of Discounts and Premiums, Investments was higher year-to-date, adding to non-cash cost recognition alongside the higher APIC, Share-based Payment Arrangement, Increase for Cost Recognition visible in both the quarter and half-year comparisons.

The combined disclosure surface for these effects is documented under Item 1 through Item 6 and the goodwill and intangible-asset commentary in Note 5. The filing evidence does not contain a peer or industry comparison, so the magnitude of any adverse swing cannot be benchmarked here. The filing evidence does not attribute this change to any single cause.

The filing evidence contains no peer or industry comparison.

Risks and what to watch

Profitability remained intact across both the three-month and six-month reporting periods when compared with the prior year, with Net Income (Loss) Attributable to Parent higher than the prior year on both a quarter and year-to-date basis. - Item one through item six of the filing were referenced as legal-proceedings, unregistered-sales, market-risk, controls-and-procedures, other-information, and exhibits sections, none of which surface a discrete litigation, regulatory, or operational risk that should be highlighted over the financial results themselves.

- The cited note on acquisitions explains that historical reporting for the former FineMark operations is impracticable post-close, which limits the granularity of revenue and pre-tax income disclosures attributable to the acquired assets and is a structural transparency constraint rather than a new risk event. The cited note on goodwill and other intangible assets is the natural next reference point for any future impairment review and should be re-read when the next balance sheet is published. - Accrued interest reversals in both the Commercial and Personal Banking portfolios during the current quarter and the six-month period indicate ongoing credit-quality friction on specific exposures; this is consistent with the broader allowance methodology described in the filing, which relies on a pooled average-historical-loss framework with lookback periods that vary by pool.

- Additional loans were pledged at the Federal Reserve Bank as collateral for discount window borrowings, which expands contingent liquidity capacity but also signals that the balance sheet is being positioned for potential funding stress; the magnitude and tenor of those pledges are the obvious metric to track in the next filing. - Counter-evidence to any pessimistic read remains in the operating cash-flow line, which moved from a use of cash in financing activities in the prior-year six-month period to a smaller use of cash in the current six-month period, and which sits alongside higher payments of dividends and higher payments for repurchase of common stock, indicating capital-return capacity rather than capital preservation.

- Net Cash Provided by (Used in) Investing Activities shifted from a use of cash in the prior year to a source of cash in the current year, while Payments to Acquire Property, Plant, and Equipment were lower than the prior year, leaving capex discipline as another easily observable indicator for the next period. - Earnings Per Share, Diluted were higher than the prior year on both a quarter and year-to-date basis, reinforcing the earnings-side signal already noted. - What remains unknown or unreported in the filing evidence: segment-level credit migration, peer-bank comparison data, and any management attribution of the quarter-to-date and year-to-date changes in net income to specific drivers.

On attribution, The filing evidence does not attribute this change to any single cause. applies because the filing does not connect the higher earnings to any single cause. On benchmarking, The filing evidence contains no peer or industry comparison.

applies because no peer or industry comparison is included in the filing evidence. On segmentation, The filing evidence does not disclose segment-level detail for this dimension. applies because segment-level detail for credit and earnings drivers is not separately broken out.

- For the next period, the metrics worth watching are the trajectory of net income on a quarter and six-month basis relative to the prior year, the continuation or reversal of accrued-interest write-offs in the Commercial and Personal Banking portfolios, the size of the Federal Reserve collateral pledge for discount window borrowings, the trend in operating, investing, and financing cash flows, and any disclosures under the cited goodwill and intangible-assets note that would signal acquisition-related impairment risk.