1. A regional bank similar to U.S. Bank (USB), but primarily focused on the Midwest.

2. Think of it as a Midwest equivalent to PNC Financial (PNC), offering a full range of banking and wealth management services.

• Deposit Accounts: Offering various checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Lending Services: Providing a range of loans including residential mortgages, auto loans, personal loans, commercial real estate loans, and business lines of credit.
• Wealth Management & Trust Services: Delivering financial planning, investment management, private banking, and fiduciary services for individuals, families, and institutions.
• Treasury & Payment Solutions: Offering cash management, merchant services, payment processing, and fraud prevention tools for businesses and corporations.

Commerce Bancshares (symbol: CBSH) is a regional bank holding company. Due to the nature of the banking industry, it does not typically have "major customers" in the traditional sense of a few large entities comprising a significant portion of its revenue. Instead, its customer base is highly diversified across various segments.

Commerce Bancshares primarily serves a broad range of **individuals and businesses**. Its customer base can be categorized as follows:

1. Consumer Clients (Individuals): This segment includes a wide array of individuals who utilize personal banking services such as checking accounts, savings accounts, credit cards, mortgages, home equity loans, auto loans, and other personal lending products.
2. Business and Commercial Clients: This category encompasses small to medium-sized businesses, as well as larger corporate clients. Commerce Bancshares provides them with commercial loans, lines of credit, treasury management services (e.g., payment processing, cash management), business checking and savings accounts, and other specialized business banking solutions.
3. Wealth Management and Trust Clients: This segment serves high-net-worth individuals, families, and institutional clients requiring investment management, private banking, trust services, and financial planning expertise.

One clear emerging threat for Commerce Bancshares (CBSH) stems from the rise of digital-first banks (neobanks), online-only banks, and a wide array of fintech companies. These competitors often offer more convenient digital user experiences, lower fees, and streamlined services, directly challenging traditional regional banks like CBSH for deposits and consumer lending. Their branchless models allow for lower operational costs, which can translate into more attractive rates or terms for customers, particularly for younger, tech-savvy demographics who increasingly prefer digital interactions over physical branches.

Another significant emerging threat is the increasing encroachment of non-bank financial service providers and the broader trend of embedded finance. This includes the rapid growth of "Buy Now Pay Later" (BNPL) platforms (e.g., Affirm, Klarna) which disintermediate traditional banks from point-of-sale consumer credit. Furthermore, large technology companies (Big Tech) are increasingly embedding various financial services (payments, digital wallets, and even lending in some cases) directly into their ecosystems. This trend potentially captures customer relationships and data that traditional banks historically owned, thereby bypassing the traditional banking system for specific financial needs.

Commerce Bancshares (symbol: CBSH) operates primarily in the Midwest U.S., with a diversified line of financial services including business and personal banking, wealth management and investments, and payment solutions.

Addressable Market Sizes for Commerce Bancshares' Main Products and Services in the U.S.

Commercial Banking

The addressable market size for Commercial Banking in the U.S. shows varying estimates across different sources:

• In 2024, the U.S. Commercial Banking market size was estimated at between USD 226.44 billion and USD 231.9 billion.
• For 2025, estimates range from USD 732.5 billion to USD 1.6 trillion.
• Looking further ahead, the U.S. Commercial Banking market is projected to reach approximately USD 269.28 billion by 2029, USD 915.45 billion by 2030, and up to USD 351.8 billion by 2033.
• The market size was valued at USD 222.5 billion in 2023 and is expected to reach USD 320.5 billion by 2033.

Retail/Consumer Banking

For Retail Banking in the U.S.:

• The United States retail banking market stands at approximately USD 0.87 trillion (or USD 870 billion) in 2025.
• This market is projected to reach USD 1.08 trillion by 2030.
• Another estimate indicates the U.S. Retail Banking market size is expected to reach USD 125.1 billion by 2033.

Wealth Management and Investments

The addressable market size for Wealth Management in the U.S. is primarily measured by Assets Under Management (AUM):

• In 2024, the U.S. wealth management market had approximately USD 64.4 trillion in AUM.
• By 2025, the U.S. is expected to hold about 54.2% of the global AUM, with global AUM reaching USD 162 trillion, implying a U.S. AUM of approximately USD 87.88 trillion.
• The U.S. wealth management market's AUM is projected to reach USD 87.35 trillion by 2028.
• Separately, the global wealth management market size, based on revenue, was USD 703.38 billion in 2021 and is forecasted to reach USD 1062.75 billion by 2029.

Payment Solutions

For Payment Processing Solutions in the U.S.:

• The U.S. payment processing solutions market generated revenue of USD 16.00 billion in 2023.
• This market is expected to grow, with estimates ranging from USD 13.24 billion to USD 47.42 billion in 2025.
• Projections suggest the market could reach between USD 28.69 billion and USD 36.75 billion by 2030, and up to USD 306.38 billion by 2034.
• In terms of transaction volume, the U.S. market's total transaction volume in 2023 was over USD 10 trillion.

Commerce Bancshares (CBSH) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and underlying business strengths:

• Strategic Acquisition and Expansion: The acquisition of FineMark Holdings, Inc., anticipated to close on January 1, 2026, is a significant driver. FineMark operates through 13 banking offices in Florida, Arizona, and South Carolina, representing an expansion into new, attractive markets for Commerce Bancshares. This merger is expected to contribute to overall revenue growth by integrating FineMark's client base and services.
• Growth in Fee Income, particularly Trust and National Payments Businesses: Commerce Bancshares has a diversified operating model with a notable portion of its total revenue coming from non-interest income, which stood at 36.6% in Q3 2025. Specifically, trust fees grew by $3.7 million (6.8%) compared to the same period last year, primarily due to higher private client fees. The company's "Revenue Diversification" strategy highlights "fee revenue at 37% of total revenue, bolstered by growing wealth and national payments businesses." This indicates a continued focus on expanding these higher-margin services.
• Steady Loan and Deposit Growth: The company's Q3 2025 results reflected "steady loan balances" and average loans increased 3% compared to the prior year as of Q2 2025. Similarly, average deposit balances were up 2% compared to the prior year as of Q2 2025, with increases in interest checking and money market deposits in Q4 2024. Consistent growth in both loans and deposits is fundamental to a bank's net interest income, which remains the largest source of revenue for Commerce Bancshares, comprising 61.7% of total revenue over the last five years.
• Continued Long-Term Investments in Technology and Market Expansion: Commerce Bancshares is committed to "Continued Long-Term Investments" in areas such as core banking system implementation and enterprise digital initiatives. These investments are aimed at enhancing operational efficiency, improving customer experience, and supporting further market expansion beyond its traditional Midwest footprint, as evidenced by its offerings in 48 states across the U.S. and the strategic acquisition of FineMark.

Share Repurchases

• Commerce Bancshares' Board of Directors approved a share repurchase program on November 3, 2025, authorizing the repurchase of up to 5 million shares of the company's common stock. This includes any remaining amounts from a prior authorization in April 2024.
• The timing and volume of these repurchases are at the discretion of management, dependent on market conditions and other considerations.

Share Issuance

• In connection with its acquisition of FineMark Holdings, Inc., Commerce Bancshares issued common stock in a 100% stock transaction.
• The fixed exchange ratio for the FineMark acquisition was 0.690x shares of CBSH common stock for each share of FNBT.
• The aggregate transaction value for the FineMark Holdings, Inc. acquisition was approximately $585.4 million, based on Commerce's closing stock price on June 13, 2025.

Outbound Investments

• Commerce Bancshares entered into a definitive merger agreement to acquire FineMark Holdings, Inc. on June 16, 2025.
• This strategic acquisition was valued at approximately $585.4 million as of June 13, 2025, and was intended to strengthen Commerce Bancshares' wealth management platform.
• Regulatory approval for the FineMark acquisition was received on August 21, 2025, and FineMark shareholders approved the merger on October 15, 2025.