COMMERCE BANCSHARES, INC.

Charles Kim

Chief Financial Officer

Jeffery Aberdeen Controller

INVESTOR UPDATE

AUGUST 2014

1

A number of statements we will be making in our presentation and

in the accompanying slides are “forward-looking statements”

within the meaning of the Private Securities Litigation Reform Act

of 1995, such as statements of the Corporation’s plans, goals,

objectives, expectations, projections, estimates and intentions.

These forward-looking statements involve significant risks and

uncertainties and are subject to change based on various factors

(some of which are beyond the Corporation’s control). Factors

that could cause the Corporation’s actual results to differ

materially from such forward-looking statements made herein or

by management of the Corporation are set forth in the

Corporation’s 2014 2nd Quarter Report on Form 10-Q and the

Corporation’s Current Reports on Form 8-K.

CAUTIONARY STATEMENT

2

Super-Community Bank – over 145 years in the industry – $23.0 billion in assets

Lower Midwest Footprint with over 200 branches and 4,700 employees

• 32nd largest U.S. bank based on asset size1

• Majority of pre-tax profit from eight key markets

• Commercial calling efforts with strong credit customers in our extended markets

• Commercial Payment Services offered in 48 states

Performance – CAGR

2013 10yr

EPS* (2%) 4%

Cash Div** 3% 7%

Stock Price 35% 4%

Total Return 37% 7%

St. Louis & Kansas City Deposit Market Share2

2013

US Bancorp 12%

BoA 10%

Commerce 9%

UMB 7%

Others 62%

Branch Footprint

Extended Commercial Market Area

Eight key markets

Commercial offices

Kansas City

St. Louis

Peoria/Bloomington

Springfield

Wichita Tulsa

Denver

Nashville

Cincinnati 2

1

5

3 6

7

8

2

1 4

Central Missouri

*Per share figures have been restated for 5% stock dividend distributed in December, 2013 **Excludes 2012 special dividend of $1.43* per share Data as of December 2013 unless otherwise noted Sources: 1SNL Financial as of 3/31/2014, 2FDIC June, 2013 deposit data

3

Dallas

Commercial Payment Services

ABOUT COMMERCE BANCSHARES

3

SUPER-COMMUNITY BANK PLATFORM

A proven sales strategy leveraging our promise to ask, listen and solve

Super-Regional Back End

• Sophisticated payment processing systems

• Broad consumer product offerings

• Private banking; trust; capital markets

• Competitive on unit costs

Community Bank Front End

• Flat organization allows quick decisions

• Employees embrace strong culture

• Award winning customer service

• Knowledge of customers and markets reduces risk

Customer relationship-

based

Supported by a focus on people / talent development

High performing

teams

Investment in distinctive, high-return businesses

Investment and growth

Long history of top quartile credit quality metrics

Top quartile credit quality

Disciplined approach to acquisitions

Disciplined acquisition

strategy

Ongoing focus on improvements in operational efficiencies

Focus on operational efficiencies

A CONSISTENT STRATEGY WITH A LONG TERM VIEW

4

1.Community markets include Wichita, Springfield, Columbia, Peoria and Bloomington 2. Nielsen modeled projections for Core Based Statistical Area (CBSA) 3. U.S. Bureau of Labor Statistics as of October 2013, not seasonally adjusted 4. Company profiles include headquarters, single locations and branches in our markets Sources: Hoovers, Nielsen and U.S. Bureau of Labor Statistics

Kansas City

St. Louis

Community Markets1 Denver Tulsa Nashville Cincinnati Dallas

2014 Population2

(000’s) 2,058 2,799 1,834 2,710 961 1,766 2,137 6,888

5-year projected Population Growth2 2.7% 0.6% 2.4% 7.6% 3.4% 6.2% 1.1% 8.6%

Median Household Income2 (000’s)

$56 $53 $51 $61 $47 $50 $53 $58

Unemployment Rate3 5.7% 6.5% 6.0% 6.0% 5.8% 6.6% 7.0% 5.9%

Company Profiles4:

<$49.99MM Sales 95,995 128,718 81,483 202,525 77,691 117,688 129,013 403,795

>$50MM Sales 384 521 201 490 204 336 391 1,161

ABOUT OUR MARKETS

5

Commerce ranked among the top ten on Forbes’ list of America's Best Banks five years in a row

Commerce ranked #10 on Bank Director magazine’s 2013 Bank Performance Scorecard ($5 - $50 billion asset category)

1Report limits eligibility to banks with >$500 million in assets, as of 4/15/2013 Sources: Bank Director, Forbes, KBW, Dividend Channel

Commerce ranked among top performing banks of the decade. Thousands of banks tested, only 47 make the grade

As reported by Forbes

Bank Directors’ Top Banks America’s Best Banks by Forbes

KBW Bank Honor Roll1 ABA Banking Journal Top 10

CBSH ranked #10 on ABA Banking Journal magazine’s list of Top Performing Big Banks ($10+ billion asset category)

INDUSTRY RECOGNITION

6

• Ranked #30 nationally based on assets under management1

• Over $35 billion in total client assets

• Ranked 20th largest Family Office in the world by assets size and 4th fastest growing by Bloomberg

• Top 20 provider of Consumer and Commercial cards

• 13th largest Merchant acquiring bank

• #7 Purchasing Card issuer and highest growth rate

• Distinctive capabilities in Equipment Financing and Tax Advantaged Lending

• Industry specialties: Healthcare, Beverage, Agriculture / Food processing

• Loans total $1.0 billion, 23% growth in 2013, excluding Summit

• Growing business/private banking opportunities

• Added Dallas office in 2012

• Summit acquisition in September 2013 adds over $200 million in new loans to Oklahoma Market

Loan data as of December 2013

Card rankings based on most recent data available

Sources: 1SNL Financial 12/31/2013, Nilson, Bloomberg Global Family Office ranking published 08/05/2013

COMMERCE OPPORTUNITIES FOR GROWTH

Card

Wealth Management

Specialty Lending

Expansion Markets

7

Consistently ranked among the top issuers in the Nilson Report

#7

#13

#18

#35

*Excludes non-banks Source: Nilson Reports (Debit: April 2014; Consumer Card: February 2014; Merchant: March 2014; Purchasing: July 2013; Commercial Card July 2013)

#17

CARD PRODUCTS – A LEADER IN THE PAYMENTS INDUSTRY

Debit Card

Consumer Card

Merchant Services

Commercial Card

Bank Acquirer*

Consumer Card Issuer*

Debit Card Issuer

Commercial Card Issuer

Purchasing Card Issuer

8

• Over $35 billion in total client assets

• Ranked #30 nationally based on assets under management1

• “Guidance Portfolio” in top 25% performance among peer funds

• Fixed Income Group named #1 small fixed income firm in U.S. for 2013 by Lipper, Inc.

Sources: CTC quarterly stats as of 12/31/2013 Bloomberg Global Family Office ranking published August 5, 2013 1SNL Financial 12/31/2013

As reported by Bloomberg

Commerce Investment Advisors received the highest rating in the Best Fixed Income Small Fund Group by Lipper, the leading provider of mutual fund information

$35

$30$27

$25$22

$0

$5

$10

$15

$20

$25

$30

$35

2012 2011 2010 2009 2013

Trust Assets $ in billions

See Appendix for disclosure

COMMERCE TRUST COMPANY – SOLID GROWTH IN FEES AND ASSETS

9

• Asset management and commercial card businesses offer strong growth and good margins

• Combined revenues have grown $78 million since 2008

• Little reliance on spread income

• Strong organic growth opportunities

SUMMARY OF TRUST AND COMMERCIAL CARD REVENUES Focus on high return businesses added significantly to revenues

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

$70

$75

$80

$85

$90

$95

$100

$105

$110

2009 2010 2011 2012 2013

Mar

gin

Ass

et

Mgm

t Fe

es

- in

mill

ion

s

Asset Management Revenues & Margins

Total revenue Margin

25%

30%

35%

40%

45%

50%

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2009 2010 2011 2012 2013

Mar

gin

%

Re

ven

ue

in m

illio

ns

Commercial Card Revenues & Margins

Total revenue Margin

As of 12/31/2013

10

COMMERCE BANK HAS BEEN A SOLID PERFORMER OVER TIME

Peer banks include: ASBC, BOKF, CBCYB, CYN, CFR, FMER, MBFI, PVTB, TCB, UMBF, WTFC and ZION Large banks include: BAC, C, FITB, JPM, PNC, RF, USB and WFC Note: Peer group excludes TCF in 2012 due to unusually large loss Sources: SNL Financial & CBSH Annual Report

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2012 2011 2010 2009 2008 2007 2006 2005 2004 2013

Return on Assets

Return on Equity

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

2012 2011 2010 2009 2008 2007 2006 2005 2004 2013

Large Banks Peer Banks Commerce Bank

ROA 10-yr average

CBSH: 1.3%

Peers: 0.9%

ROE 10-yr average

CBSH: 13.0%

Peers: 9.0%

11

10%

16%

4% 8%

2%

60%

8%

8%

3%

10%

4%

67%

Card income

Wealth management

Other

Deposit service charges

Fees & commission

Net interest income

Notes: Excludes Gains and Losses on Securities; Wealth Management excludes Brokerage Source: Financial Information Systems; data as of 12/31/2013

Peer Banks include: ASBC, BOKF, Central Bancompany, CYN, CFR, FMER, MBFI, PVTB, TCB, UMBF, WTFC, ZION

DIVERSE REVENUE RELATIVE TO PEERS

16%

10%

60%

Card income consistently outperforming peers

Income from Wealth Management strong and growing

Fee income emphasis provides steady revenue stream and helps minimize effects of low interest rates on net interest income

Commerce Bank Peer Banks

BALANCED MIX OF INTEREST AND NON-INTEREST INCOME

12

ANNUALIZED LOAN GROWTH OF 9% IN 2014

Commerce

Peer Banks

17% 30%

Consumer Card

Consumer & HELOC Bus, Lease & tax free

Personal RE Construction

Business RE

29% 5%

38%

12% 0%

16%

Peer Banks include: ASBC, BOKF, Central Bancompany, CYN, CFR, FMER, MBFI, PVTB, TCB, UMBF, WTFC, ZION

Commerce data as of 6/30/14; Peer data as of 12/31/13 average

Source: Financial Information Systems

7%

21%

17%

16%

4%

35%

2014 YTD Loan Growth came from… $ %

C&I 357 14

Auto 112 17

Other Consumer 42 13

Lease 40 11

Construction 36 9

Personal RE 32 2

Commerce

Commercial: 59% Consumer: 41%

Peer Banks

Commercial: 72% Consumer: 28%

$12,000

$11,000

$10,000

$9,000

$8,000

$7,000

6/30/2014

$11,460

2013

$10,957

2012

$9,840

2011

$9,209

Loan Balances $ in millions

13

$ in billions 2008 2013 5 Yr

Growth

Consumer $8.0 $9.5 18%

Private Banking $1.0 $2.0 100%

Commercial $3.8 $7.4 95%

• After strong growth in 2011 and 2012, core deposit growth slowed in 2013

• No real signs yet of corporate deployment of funds on deposit

$18.9$19.0

$18.3

$16.8

$15.1

$14.2

$16.0

$15.0

$14.0

$13.0

$18.0

$19.0

$17.0

$12.0

Jun ’14 2013 2012 2011 2010 2009

DEPOSITS LEVELING AFTER 4 YEARS OF GROWTH

Total Deposits ($ in billions)

14

NET INTEREST INCOME: 2008 – 2013, TAX EQUATED

48

665

32

670

45

666

36

65449

609

580

600

620

640

660

680

700

720

12/31/12

-37

12/31/11

-41

12/31/10

-24

12/31/09

-4

12/31/08

-67

12/31/13

$646

Total net interest income Change due to volume Change due to rates

Net Interest Income $ in millions (tax equivalent)

• In 2013 growth in loans of $1.1 billion at higher rates helped to increase overall net interest income by $48 million but didn’t entirely offset effects of the lower interest environment and margin pressure

15 Notes: C&I excludes Leasing; Comml R/E includes Construction and Business R/E; Consumer includes Consumer, Auto, M&RV; excludes Personal RE, ATL and HE Source: Federal Reserve Statistical Release, not seasonally adjusted

Largest 100 CBI Net Charge-Off Rates for CBI vs. Large Banks

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2013 2012 2011 2010 2009

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2011 2010 2009 2013 2012

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2013 2012 2011 2010 2009

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

2009 2010 2011 2012 2013

Business C&I Net C/Os

Credit Card Net C/Os

Commercial R/E Net C/Os

Consumer Net C/Os Credit Card Net C/Os

0.24%

0.79%

0.41%

1.40%

1.02%

1.49%

4.23%

5.70%

0.42%

(0.07%)

0.66%

0.19%

0.70%

1.07%

4.09%

3.35%

0.26% (0.03%)

(0.14%) 0.20%

0.50%

0.89%

3.34% 3.46%

0.43%

2.35%

1.36%

2.49%

2.13%

3.27%

6.77%

9.32%

0.23%

1.68%

0.74%

2.68%

1.52%

2.18%

6.28%

9.35%

CHARGE-OFFS CONSISTENTLY BETTER THAN INDUSTRY

16

FOCUS ON EFFICIENCY WORKS – INVESTMENT CONTINUES WHILE EXPENSES REMAIN FLAT

$630$618$617$631

2013 2012 2011 2010 2009

$622

2009 2010 2011 2012 2013

Salary & benefits 346 347 345 361 367

Technology 73 78 78 83 85

Other 203 206 194 174 178

Total $622 $631 $617 $618 $630

• Minimal expense growth overall since 2009

• Disciplined approach to improving efficiencies in operational units

• Investment continues in high growth segments

As of 12/31/2013

Expenses ($ in millions)

17

STRONG CAPITAL POSITION – FLEXIBILITY IN CAPITAL PLANNING

• Combination preferred stock / ASR transaction in 2Q’14 resulted in 3.1 million common treasury shares acquired in addition to Company run buy-back this quarter

• Total cash dividends in 2012 of $212 million included $131 million special dividend

46 consecutive years of cash dividend increases

Capital ratios – 6/30/14

Tangible common equity to assets 8.6%

Tier 1 risk-based capital 13.4%

Total risk-based capital 14.6%

0%

40%

60%

80%

100%

120%

140%

$150

160% $250

$50

20%

$100

$200

$0

2006 2007 2008 2011 2012 2009 2005 6/30/2014 2013 2010

Cash dividend Buy back % Payout

Cash dividends and Buy backs ($ in millions)

18 18

PREFERRED STOCK ISSUANCE

Permanent Tier 1 Capital

• Less expensive form of capital

• Proceeds from preferred stock used to replace common shares – positive EPS impact over time

Fixed for life coupon (6%)

• Lock in current rates; historically low

• Superior execution of preferred stock issuance compared to other banks over last 14 months

• As net income grows, common shareholders gain greater % of net income

• No change in Return on Assets

• Return on Common Equity increased ~80 basis points

• Tier 1 Common reduced from 14.0% to 13.4% – still well above company minimum targets

Effect on Ratios:

$150 million Preferred Stock

issuance on 6/19/2014

Retire common stock

• Most expensive form of capital

Use of ASR methodology

• $200 million delivered up front to Morgan Stanley

• CBI receives 70% of shares upfront

• ASR structured for 8 – 12 month duration with 10 month target

• Ultimate cost of buyback at .80% discount to average price over term of transaction

• No forward contract accounting issues

• Complies with all volume restrictions

$200 million Accelerated Share

Repurchase – June 2014

19

• Focus on people/talent development

­ Consistent senior management

­ CEO tenure 27+ years

­ Long-term employees

• Award winning customer service

• Knowledge of customers and markets

• Emphasis on credit underwriting – top quartile credit quality metrics

• Focus on EPS growth

• Sales across business lines

A STRONG EMPHASIS ON CULTURE

A STRATEGY THAT BUILDS RESULTS FOR TOMORROW

ENABLES EXECUTION OF CORPORATE STRATEGIES

20

COMMERCE BANK CORPORATE PRIORITIES

• Deepen relationships and profitability in traditional markets and lines of business

• Execute on disciplined sales processes

• Achieve continuous process and cost efficiencies

• Divest businesses and activities that no longer provide acceptable returns

• Invest in distinctive, high return businesses

• Innovate on select products and services

• Leverage our position in the expanded geographic markets and maximize profitability

Our People: Engaged team. Consistent execution. Accountability. Rich development opportunities for high performers.

Innovation & investment

Continuous improvement

21

CORE RETAIL

Challenges:

• Value of deposits continues to be depressed

• Shift in consumer banking preferences fueling need for change in distribution strategy

• Continued uncertainty of regulatory environment

Opportunities:

• Develop new products / service offerings

• Attract new households

• Evolve distribution strategy

• Leverage strong online performance to expand relationships

• Continued focus on expense reduction

HISTORICAL DISTRIBUTION

STRATEGY FUTURE DISTRIBUTION

STRATEGY • Historically, the branch was

the dominant focal point of the distribution strategy, but changes in consumer banking preferences demand changes in channel roles

• Branches remain a critical component of our overall distribution strategy, but changing to remain relevant

EVOLVING THE BRANCH DISTRIBUTION STRATEGY TO MEET CHANGES IN CUSTOMER PREFERENCES

22

COMMERCE TRUST COMPANY

Challenges:

• Recruiting top quality candidates to fill strategic plan adds to staff

• Successful implementation of sales partnership programs with Commercial and Retail

• Sustaining Private Bank profit growth in the face of reduced spreads on loans and deposits

• Maintaining strong investment performance track record

• Increasing sales of new institutional products to supplement traditional strength in fixed income

Opportunities:

• Recent strategic plan hires should attain higher sales productivity in 2014, particularly in Institutional and St. Louis Family Office

• Improved alignment of sales goals / incentives between CTC, Commercial and Retail

• Improving U.S. economy and strong equity markets should improve investor confidence and potential M&A activity

• Growing CTC brand recognition should generate increased referrals from external sources

*Ranked by Bloomberg News

Periods greater than one year are annualized.

Blended Benchmark for 1-, 3-, 5- and 10-Year Periods

Peer Median for 1-, 3-, 5- and 10-Year Periods

Performance for 10-Year Period

Not FDIC Insured May Lose Value No Bank Guarantee

0%

5%

10%

15%

20%

1 Year 3 Year 5 Year 10 Year 1yr 3yr 5yr 10yr

Guidance Portfolio

15.51% 8.79% 12.84% 6.58%

Blended Benchmark 13.56% 8.24% 11.38% 6.18%

Lipper Median 14.38% 8.35% 11.98% 5.86%

GUIDANCE PORTFOLIO PERFORMANCE (as of 12/31/13)

Retu

rn (

%)

23

CORE COMMERCIAL

• Focusing efforts on loan growth in targeted segments

• Capitalizing on expansion markets to generate above average growth in loans and fee income

• Reinforcing systematic sales process to gain market share in core markets

• Coordinating product development and sales strategies across business lines

• “Hyper-competitive” operating environment with aggressive underwriting and margin compression

• Recruiting, retention & development of commercial bankers remains a primary focus

• Evolving regulatory landscape impacting processes and technology requirements

• Fraud continues to be most unpredictable threat

Source: total loans, Clayton Holdings, Expansion Markets & Aviation via Corporate Financial

Analysis; Healthcare via CRISP

*Expansion mkt data through November 2011-2013; Clayton Holdings through Nov 2013

Healthcare Energy Agribusiness Food Processing Not-for-Profit Aviation Beverage Distribution Municipalities Manufacturing Education C&I CRE

Healthcare Suite Clayton Holdings Equipment Finance Treasury Services Corporate Card Merchant Services International Franchise Finance Floor Plan Lending Farmer Mac ESOP’s

Product Deficiency RM Issues Drop In Service Other Issues

Expansion Markets Core Markets Counties Cities

COMPETITION TERRITORY

PRODUCT INDUSTRY

10%

59% 58%

20%

78%

Total Loans Clayton Holdings*

Expansion Mkts*

Healthcare Aviation

Loan Growth Since 2011

• Increase market awareness of specialty industry resources

• Evaluate new opportunities for segmentation

+ $541MM + $197MM + $196MM + $121MM + $52MM

SEGMENTING TO MORE EFFECTIVELY TARGET PROSPECTS

24

BANKCARD

• Increased focus on data science & analytics

• Lingering effect of CARD Act rules will be a significant drag on profitability

• Intense competition for credit-worthy new accounts

• Success determined by matching technological opportunities with consumers’ product, feature, and service expectations

• Expand payment capabilities with ToggleTM

• Exploit digital media to reduce servicing costs, increase account acquisition and increase activation

• Expansion within affinity/co-brand space

• Leverage rewards investment for long-term spending growth and interchange generation

Consumer Card

• Begin selling new EIPP platform with Trade Finance, Claims Payments and Private Network Transactions

• New EIPP product leverages Commerce platforms; strong pipeline

• Merchant expansion into strategic markets

• Digest new product launches and focus on new industry verticals

• Increase share-of-wallet with our AP clients

• Create meaningful & functional communication with our expanding national employee base

• Increased competition in the Accounts Payable business means longer sales cycle

• Focused sales and new product innovation will be the true brand differentiators

Commercial Card/Merchant Services

25

BANKCARD CONTRIBUTION REMAINS STRONG

Contribution to profit before taxes $ thousands

• Consumer Card has weathered credit storm well, but regulatory and macroeconomic forces will constrain future growth

• Merchant Services margins under pressure, but returns on capital remain strong – challenge is to grow highest margin products

• Commercial Card growth driven by very successful payables program; continued innovation will be key

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2008 2009 2010 2011 2012 2013

Debit Card

Merchant Services

Commercial Card

Consumer Card

Debit includes Prepaid, Gift card, and College card

26

($ 000s) 2008 2013 % change

Loans 448,436 1,023,147 23%*

Deposits 181,960 552,037 8%*

EXPANSION MARKETS / M&A

Expansion markets:

• Represent 14% of total commercial loans

• 2013 loan growth of 23% vs. total Commerce loan growth of 11%

• Growth of 11% continues in 2014

• Commerce remains a strategic buyer

• Augment expansion markets if right fit becomes available

• Expansion markets represent best growth potential

Opportunities continue to favor organic growth

M&A Focus

* Core growth; excludes Summit Bancshares acquisition September 2013

2 1

5

3 6

7

8

2

1

3

23%

11%

0%

5%

10%

15%

20%

25%

Expansion Mkts Total Company

Loan Growth 2013 versus 2012 Expansion Markets Offering Growth

Opportunities

27 All data restated for 5% stock dividend distributed in December 2013

Source: SNL Financial

Dividends per share

LONG TERM VIEW: NET INCOME AND EARNINGS PER SHARE

EPS REMAINS STRONG

46TH CONSECUTIVE YEAR OF DIVIDEND GROWTH

Net In

com

e

$ in

mill

ion

s

$2.20 Including 2012 special dividend =

50

1.20

1.40

1.60

1.80

2.20

2.40

2.60

$2.80

2.00

1.00

$300

250

200

150

100

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Net Income Earnings Per Share

Earn

ings p

er

Share

$0.57 $0.62 $0.66 $0.71 $0.75 $0.75 $0.77 $0.80 $0.84 $0.86

28 28

STEADY SHAREHOLDER RETURNS IN A HIGHLY VOLATILE MARKET

*Assumes reinvested dividends; multi-year returns are annualized;

includes special dividend effective 11/28/2012

Source: Bloomberg; data as of 6/30/2014

Consistent, positive returns to shareholders. Significant outperformance relative to bank stocks.

Annualized Total Shareholder Returns* Percent

1 yr 3 yr 5 yr 10 yr

CBSH 14.4% 11.7% 16.9% 7.9%

S&P 500 19.1% 16.6% 18.8% 7.8%

NASDAQ

Banks 20.2% 16.6% 13.5% 1.3%

KBW

Bank

Index

18.4% 16.2% 16.3% (0.4%)

Total Shareholder Returns* Indexed, 6/30/2004 = 100

40

60

80

100

120

140

160

180

200

220

2004 2006 2008 2010 2012 2014

KBW BANK

INDEX

S&P 500

NASDAQ

BANKS

COMMERCE

BANK

Appendix

30

• Net interest income grew $7.4 million vs 1st quarter 2014 due to higher inflation income on inflation-protected securities; net interest margin grew to 3.13%.

• Non-interest income grew by $6.1 million vs previous quarter reflecting growth in fees on bank card, trust and deposits.

• Loans outstanding grew $265 million (annualized 10%) in current quarter; C&I, leasing and auto lending continue to show good growth.

• Average deposits grew 1% this quarter, reflecting growth in interest checking & jumbo CD’s, but declines in business demand & business MMDA of $122 million.

FINANCIAL HIGHLIGHTS QTD – June 30, 2014

$ in millions except per % Chge % Chge

share data 6/30/13 3/31/14 6/30/14 Last Yr Last Qtr

Diluted EPS 0.69$ 0.67 0.70 1% 4%

Net income 65.8$ 64.3 66.5 1% 3%

Return on avg. assets 1.20% 1.16% 1.18%

Return on avg. equity 12.07% 11.56% 11.69%

Tangible common capital 9.06% 9.36% 8.60%

Efficiency ratio 59.73% 63.28% 60.10%

Qtly avg. loans 10,123$ 11,085 11,230 11% 1%

Qtly avg. deposits 17,858$ 18,676 18,808 5% 1%

31

• Growth in net interest income of $3.8 million resulted from stronger inflation income on TIPs this year (up $5.2 million) & loan growth

• Non-interest income grew 4% YTD; continued strong growth in commercial card and trust revenues

• Securities gains included large PE gain of $19.5 million on one investment offset by $5.2 million loss on sales of AFS securities & losses of $6.8 million, which consisted mainly of PE write-downs

• Expenses increased 4%; but flat with previous quarter

• Loan loss provision up $6.5 million YTD; reserve releases in 2013 not repeated this year

NET INCOME YTD – June 30, 2014

*Adjusted for extraordinary items

Actual

$ in millions 2013 2014 % Incr.

Net interest income 309.8$ 313.6 1%

Non-interest income 202.6 211.4 4%

Total revenue 512.4 525.0 2%

Securities gains/(losses) (3.7) 7.5 303%

Non-interest expense (312.1) (324.6) 4%

Provision for loan losses (10.7) (17.2) 61%

Pretax income 185.9 190.7 3%

Income taxes (59.1) (59.9) 1%

Net income 126.8$ 130.8 3%

Diluted EPS 1.32$ 1.37 4%

Return on avg. assets 1.17% 1.17%

Return on avg. equity 11.73% 11.62%

Efficiency ratio 60.72% 61.65%

Cash dividends 0.429$ 0.450

Ending stock price 41.48$ 46.50

32

• Fee income increased 4% on growth in corporate card (up 15%), trust (up 7%), and debit fees (up 6%); Deposit fees are flat year-over-year but grew $1.1 million vs 1Q14

• Capital markets fees down 8% on slower sales, but brokerage fees up 4%

• Gains on sales of RE properties totaled $896 thousand in 2013 vs losses in 2014 of $331 thousand

NON-INTEREST INCOME YTD – June 30, 2014

YTD YTD Actual

$ in millions 2013 2014 % Incr.

Bankcard fees 79.3$ 86.2 9%

Trust fees 50.9 54.3 7%

Deposit account fees 38.3 38.3 0%

Capital market fees 7.7 7.1 -8%

Consumer brokerage 5.5 5.7 4%

Loan fees & sales 2.8 2.4 -14%

Other income 18.1 17.4 -4%

Total non-int. income 202.6$ 211.4 4%

33

• Net interest income (tax equivalent) increased $8.1 million this quarter vs. last quarter; interest on TIPs was up $5.7 million. Also, received a special dividend of $1.9 million on a PE investment which was sold in 2Q. Net interest margin for the quarter was 3.13%.

• Loan yields overall continued to decline this quarter by 7 basis points, mostly from pricing pressure on consumer loans.

Tax equivalent - QTD 6/30/13 3/31/14 6/30/14

Yield - assets 3.36% 3.16% 3.26%

Net yield - liabilities 0.23% 0.20% 0.20%

Net yield - earning assets 3.21% 3.03% 3.13%

NET INTEREST INCOME YTD – June 30, 2014

2.00%

2.20%

2.40%

2.60%

2.80%

3.00%

3.20%

3.40%

$140.0

$130.0

$150.0

$180.0

$160.0

$170.0

1Q14 2Q14 4Q13 3Q13 2Q13 1Q13

Net Yield 2014 Net int. inc. 2013 Net int. inc.

Ne

t in

tere

st

inc

om

e

$ in

mil

lio

ns

Ne

t Y

ield

34

INVESTMENT PORTFOLIO: HIGH QUALITY, DIVERSE, SHORT DURATION

*Excludes inflation effect on TIPs

Sources: InTrader, AFS portfolio

AFS Portfolio: Jun. 30, 2014

Total investments $9.3 billion

Unrealized gain $161 million

12 mo. maturities /

pay-downs $1.6 billion

Duration Avg yield - TE

Jun 2014 2.7 yrs 2.7%

Dec 2013 2.9 yrs 2.2%

Jun 2013 2.7 yrs 2.3%

June 30, 2014 Weighted

Avg rate

Weighted Life

(years)

Treasury & agency* 1.5% 5.2

Municipal - TE 3.6% 5.9

MBS 2.8% 3.6

Other asset-backed 0.9% 2.4

Corporate 2.2% 5.7 224

226

228

230

232

234

236

238

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14

CP

I-U

Inte

rest

inco

me

TIPS's Interest - $ in 000's

Inflation inc. Normal int. CPI-U

14%

19%

33%

32%

2%

Composition of AFS Portfolio

Treas & agency Municipal MBS

Other asset backed Corporate

35

• Loans outstanding at Jun 30th up $265 million, or 9.6% annualized vs previous quarter

• Break-out in growth vs previous quarter by product: ­ Business – up $121 million ­ Lease – up $42 million ­ Construction – up $18 million ­ Auto/consumer – up $91 million ­ Consumer credit. card – up $12 million ­ Business RE – down $37 million

• Core YTD loan growth of 10% excluding $207 million in loans obtained from Summit Bank in September 2013

AVERAGE LOANS – June 30, 2014

$8.5

$9.0

$9.5

$10.0

$10.5

$11.0

$11.5

$12.0

D M A M F J N O S A J J

2014 2013

Monthly Average Loans (incl HFS) - $ in billions YTD Growth = 11.6%

Act. QTD Balances

$ in millions % to

2013 2014 % Incr Tot.-'13

Bus., lease, tx fr 3,415$ 4,094 20% 35%

Bus RE & constr.2,609 2,721 4% 24%

Pers. RE 1,700 1,819 7% 16%

Cons., & HELOC's 1,885 2,066 10% 18%

Consum. credit card761 787 3% 7%

10,370$ 11,487 11% 100%

36

NET LOAN CHARGE-OFF FLAT WITH 2013

• Charge-offs on commercial type loans remain low – continued recoveries on construction loans but likely slowing going forward

• Loss rates on both consumer & consumer credit card loans remain low

• Growth in consumer losses reflective of higher loan volumes mostly in auto loan portfolio

• Non-performing loans continue to decline

YTD YTD '14 Loss

$ in 000's 2013 2014 $ Chge Rate

Business (136)$ 275 411 0.02%

Leases - - - 0.00%

Overdraft 444 525 81 20.99%

Construction (1,276) (923) 353 -0.43%

Business R/E 1,149 461 (688) 0.04%

Personal R/E 548 182 (366) 0.02%

Consumer 3,157 4,195 1,038 0.51%

HELOC 295 (238) (533) -0.12%

Credit card 12,983 12,738 (245) 3.42%

Total 17,164$ 17,215 51 0.32%

0.6%

0.4%

0.2%

0.0% $0

$200

0.8%

1.0%

1.2%

$240

$120

$40

$80

1.4%

$160

2010 2009 2011 2012 2013 1Q14 2Q14

$ Allow for Loan Loss $ Non-Perform Assets % NPA to Total Loans

Non-Performing Loans to Allowance

37

Recent Fixed Income Award

APPENDIX