Executive Summary

CBSH delivered a clean beat: diluted EPS of $1.14 vs S&P Global consensus $1.05*, and total revenue of $445.8M vs consensus $435.9M*, driven by record net interest income (NII), 14 bps sequential NIM expansion to 3.70%, and firm fee income mix (37% of revenue) .
Profitability improved across the board: ROAA 1.95%, ROAE 17.40%, efficiency 54.8%; credit costs remained low with NCOs 0.22% and non‑accruals 0.11% of loans .
Deposits were stable (avg +$63M q/q), cost of interest-bearing deposits fell 5 bps to 1.67% (total deposit cost 1.18%), and average loans grew 1.5% q/q; NII reached a new record at $280.1M .
Strategic: Announced acquisition of FineMark; management expects ~6% 2026 GAAP EPS accretion, 1.6-yr TBVPS earnback, minimal CET1 impact; buybacks slowed to $10M in Q2 vs $55M in Q1 .

Note: Consensus values marked with * are from S&P Global.

What Went Well and What Went Wrong

What Went Well

NIM expansion and record NII: Net yield on interest-earning assets rose to 3.70% (+14 bps q/q), and NII hit a record $280.1M (+4% q/q, +7% y/y) supported by asset repricing, higher loan demand, and lower funding costs .
Fee-income resilience and diversification: Non-interest income rose to $165.6M (+4% q/q, +9% y/y), with trust fees +6% y/y and strong “Other” driven by $5.5M gains on sales of assets and tax credit sales income .
Credit quality remained excellent: NCOs 0.22%, non-accruals 0.11%; ACL/loans at 0.94% with coverage to NALs at 8.8x; office CRE metrics solid (TTM office NCOs 0.00%, NPLs 0.00%) .
Management tone: “Commerce delivered a strong financial performance… supported by loan growth, strong fee income, low credit costs and continued disciplined expense management” — CEO John Kemper .

What Went Wrong

Expense growth: Non-interest expense rose 3% q/q and 5% y/y to $244.4M, including $1.9M acquisition-related costs and higher salaries/benefits; efficiency improved but opex is trending up y/y .
Card fee softness vs prior year: Bank card transaction fees were down 2% y/y on corporate and credit card pressure (higher rewards expense), partially offset by q/q improvement .
Securities gains/losses volatility: Net investment securities gains were modest at $0.4M, swinging from ($7.6M) in Q1; AFS portfolio AOCI remained a headwind despite q/q improvement (AOCI loss $(581)M vs $(635)M in Q1) .

Financial Results

Headline P&L and Profitability (oldest → newest)

Metric	Q2 2024	Q1 2025	Q2 2025
Total Revenue ($M)	$414.5	$428.1	$445.8
Net Interest Income ($M)	$262.2	$269.1	$280.1
Non-Interest Income ($M)	$152.2	$158.9	$165.6
Non-Interest Expense ($M)	$232.2	$238.4	$244.4
Net Income ($M)	$139.6	$131.6	$152.5
Diluted EPS ($)	$1.03	$0.98	$1.14
Net Yield on IEA (NIM)	3.55%	3.56%	3.70%
Efficiency Ratio	55.95%	55.61%	54.77%
ROAA	1.86%	1.69%	1.95%
ROAE	18.52%	15.82%	17.40%

Results vs S&P Global Consensus (Q2 2025)

Metric	Consensus	Actual	Surprise
EPS (diluted)	$1.05*	$1.14	+$0.09 (+8.6%)*
Total Revenue ($M)	$435.9*	$445.8	+$9.9 (+2.3%)*

Values marked with * are retrieved from S&P Global.

Non-Interest Income Breakdown ($M, oldest → newest)

Line Item	Q2 2024	Q1 2025	Q2 2025
Trust Fees	$52.3	$56.6	$55.6
Bank Card Transaction Fees	$47.5	$45.6	$46.4
Deposit Account Charges & Other Fees	$25.3	$26.6	$26.2
Capital Market Fees	$4.8	$5.1	$6.2
Consumer Brokerage	$4.5	$4.8	$5.4
Loan Fees & Sales	$3.4	$3.4	$3.4
Other	$14.5	$16.8	$22.5
Total Non-Interest Income	$152.2	$158.9	$165.6

Key Banking KPIs (oldest → newest)

KPI	Q2 2024	Q1 2025	Q2 2025
Avg Loans ($B)	$17.17	$17.24	$17.50
Avg Deposits ($B)	$24.29	$24.86	$24.92
Avg Loans/Deposits	70.73%	69.38%	70.22%
Cost of Interest-Bearing Deposits	1.99%	1.72%	1.67%
Total Cost of Deposits (reported)	—	1.22% (Q1 ref)	1.18%
NCO / Avg Loans	0.23%	0.25%	0.22%
Non-Accrual Loans / Loans	0.11%	0.13%	0.11%
ACL / Loans	0.92%	0.96%	0.94%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend/Share	Q3 2025 payable Sept 23	$0.275	$0.275	Maintained
FineMark Acquisition Timing	Close	—	Expected January 1, 2026	New transaction timing
FineMark Deal Economics	2026 GAAP EPS	—	~6% accretive; TBVPS earnback ~1.6 yrs; minimal CET1 impact	New pro forma outlook

Management did not issue formal numeric guidance for revenue, NIM, opex, or tax; qualitative outlook includes: ~$1.3B of AFS cash flows over next 12 months and four SOFR loan floors to protect NII; total deposit cost trending down .

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document set; the company provided an earnings release and an earnings highlights presentation .

Topic	Q4 2024 (Q‑2)	Q1 2025 (Q‑1)	Q2 2025 (Current)	Trend
NIM / Funding	NIM 3.49%, flat to down 1 bp; deposit costs easing	NIM 3.56% (+7 bps); deposit costs -15 bps	NIM 3.70% (+14 bps); deposit cost 1.18% (total), 1.67% (interest‑bearing)	Improving
Fee Mix	Trust up 14.6% y/y	Trust up 10.7% y/y	Trust +6% y/y; “Other” strong on asset sales/tax credits	Positive, moderated
Credit	NCO 0.25%, NAL 0.11%	NCO 0.25%, NAL 0.13%	NCO 0.22%, NAL 0.11%; office CRE metrics clean	Stable/benign
Opex	Down y/y; lower FDIC assessment	Flat q/q; mix shift in benefits/prof services	Up 3% q/q; acquisition-related costs	Mild headwind
Technology / Investments	Ongoing investments; balance sheet repositioning	Emphasis on execution; earnings leverage	Continued investments (core, digital); loan floors added	Ongoing
Capital / Buybacks	TCE 9.92%	Buybacks $55M (Q1 ref)	Buybacks $10M; BVPS $27.43 (+5% q/q)	Disciplined

Management Commentary

“Commerce delivered a strong financial performance in the second quarter… supported by loan growth, strong fee income, low credit costs and continued disciplined expense management” — John Kemper, CEO .
“Net interest income of $280 million was another record quarter… reflects the continued benefits of fixed-rate asset repricing, higher loan demand, and our strong deposit franchise. Non-interest income was $166 million and made up 37.2% of total revenue…” — John Kemper, CEO .
On FineMark: “With this acquisition, FineMark will bring new capabilities… Commerce will add scale and depth with resources, capital, operational infrastructure, regulatory experience, and long-term stability” — John Kemper, CEO .

Q&A Highlights

No Q2 2025 earnings call transcript was available in our document set. The company furnished an earnings highlights presentation and detailed press release; no additional Q&A disclosures beyond these materials were found .

Estimates Context

EPS and revenue exceeded S&P Global consensus: $1.14 EPS vs $1.05*, and $445.8M revenue vs $435.9M*; # of estimates: EPS (6), revenue (3)* .
Beats were driven by: record NII; sequential NIM expansion (+14 bps) from asset repricing and lower deposit costs; modest net securities gains ($0.4M) and a lower provision vs Q1; fee strength in trust and “Other” categories .