COMMERCE BANCSHARES INC /MO/CBSH
COMMERCE BANCSHARES INC /MO/ Fair Value Disclosure
Fair Value of Financial Instruments
The carrying amounts and estimated fair values of financial instruments held by the Company are set forth below. Fair value estimates are made at a specific point in time based on relevant market information. They do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for many of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
The estimated fair values of the Company’s financial instruments and the classification of their fair value measurement within the valuation hierarchy are as follows at December 31, 2025 and 2024:
| Carrying Amount | Estimated Fair Value at December 31, 2025 | |||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial Assets | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| Business | $ | 6,439,380 | $ | — | $ | — | $ | 6,367,754 | $ | 6,367,754 | ||||||||||
Real estate - construction and land | 1,438,012 | — | — | 1,415,490 | 1,415,490 | |||||||||||||||
Real estate - business | 3,674,567 | — | — | 3,628,499 | 3,628,499 | |||||||||||||||
Real estate - personal | 3,053,435 | — | — | 2,815,384 | 2,815,384 | |||||||||||||||
Consumer | 2,196,822 | — | — | 2,188,772 | 2,188,772 | |||||||||||||||
| Revolving home equity | 375,159 | — | — | 371,998 | 371,998 | |||||||||||||||
| Consumer credit card | 589,694 | — | — | 535,660 | 535,660 | |||||||||||||||
Overdrafts | 4,194 | — | — | 4,045 | 4,045 | |||||||||||||||
| Total loans | 17,771,263 | — | — | 17,327,602 | 17,327,602 | |||||||||||||||
| Loans held for sale | 4,329 | — | 4,329 | — | 4,329 | |||||||||||||||
| Investment securities | 9,413,603 | 3,339,866 | 5,842,326 | 231,411 | 9,413,603 | |||||||||||||||
| Securities purchased under agreements to resell | 850,000 | — | — | 869,427 | 869,427 | |||||||||||||||
| Interest earning deposits with banks | 2,744,393 | 2,744,393 | — | — | 2,744,393 | |||||||||||||||
| Cash and due from banks | 803,239 | 803,239 | — | — | 803,239 | |||||||||||||||
| Derivative instruments | 51,421 | — | 51,232 | 189 | 51,421 | |||||||||||||||
| Assets held in trust for deferred compensation plan | 23,276 | 23,276 | — | — | 23,276 | |||||||||||||||
| Total | $ | 31,661,524 | $ | 6,910,774 | $ | 5,897,887 | $ | 18,428,629 | $ | 31,237,290 | ||||||||||
| Financial Liabilities | ||||||||||||||||||||
| Non-interest bearing deposits | $ | 8,205,711 | $ | 8,205,711 | $ | — | $ | — | $ | 8,205,711 | ||||||||||
| Savings, interest checking and money market deposits | 15,047,406 | 15,047,406 | — | — | 15,047,406 | |||||||||||||||
| Certificates of deposit | 2,386,459 | — | — | 2,418,268 | 2,418,268 | |||||||||||||||
| Federal funds purchased | 128,625 | 128,625 | — | — | 128,625 | |||||||||||||||
| Securities sold under agreements to repurchase | 2,861,016 | — | — | 2,863,921 | 2,863,921 | |||||||||||||||
| Other borrowings | 12,739 | 12,739 | — | — | 12,739 | |||||||||||||||
| 18,795 | — | 18,718 | 77 | 18,795 | ||||||||||||||||
| Liabilities held in trust for deferred compensation plan | 23,276 | 23,276 | — | — | 23,276 | |||||||||||||||
| Total | $ | 28,684,027 | $ | 23,417,757 | $ | 18,718 | $ | 5,282,266 | $ | 28,718,741 | ||||||||||
| Carrying Amount | Estimated Fair Value at December 31, 2024 | |||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial Assets | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| Business | $ | 6,053,820 | $ | — | $ | — | $ | 5,943,565 | $ | 5,943,565 | ||||||||||
Real estate - construction and land | 1,409,901 | — | — | 1,384,029 | 1,384,029 | |||||||||||||||
Real estate - business | 3,661,218 | — | — | 3,558,862 | 3,558,862 | |||||||||||||||
Real estate - personal | 3,058,195 | — | — | 2,738,880 | 2,738,880 | |||||||||||||||
Consumer | 2,073,123 | — | — | 2,053,191 | 2,053,191 | |||||||||||||||
| Revolving home equity | 356,650 | — | — | 353,731 | 353,731 | |||||||||||||||
| Consumer credit card | 595,930 | — | — | 549,874 | 549,874 | |||||||||||||||
Overdrafts | 11,266 | — | — | 11,120 | 11,120 | |||||||||||||||
| Total loans | 17,220,103 | — | — | 16,593,252 | 16,593,252 | |||||||||||||||
| Loans held for sale | 3,242 | — | 3,242 | — | 3,242 | |||||||||||||||
| Investment securities | 9,453,297 | 2,613,830 | 6,608,452 | 231,015 | 9,453,297 | |||||||||||||||
| Federal funds sold | 3,000 | 3,000 | — | — | 3,000 | |||||||||||||||
| Securities purchased under agreements to resell | 625,000 | — | — | 622,021 | 622,021 | |||||||||||||||
| Interest earning deposits with banks | 2,624,553 | 2,624,553 | — | — | 2,624,553 | |||||||||||||||
| Cash and due from banks | 748,357 | 748,357 | — | — | 748,357 | |||||||||||||||
| Derivative instruments | 62,648 | — | 62,555 | 93 | 62,648 | |||||||||||||||
| Assets held in trust for deferred compensation plan | 21,849 | 21,849 | — | — | 21,849 | |||||||||||||||
| Total | $ | 30,762,049 | $ | 6,011,589 | $ | 6,674,249 | $ | 17,446,381 | $ | 30,132,219 | ||||||||||
| Financial Liabilities | ||||||||||||||||||||
| Non-interest bearing deposits | $ | 8,150,669 | $ | 8,150,669 | $ | — | $ | — | $ | 8,150,669 | ||||||||||
| Savings, interest checking and money market deposits | 14,754,571 | 14,754,571 | — | — | 14,754,571 | |||||||||||||||
| Certificates of deposit | 2,388,404 | — | — | 2,409,537 | 2,409,537 | |||||||||||||||
| Federal funds purchased | 123,715 | 123,715 | — | — | 123,715 | |||||||||||||||
| Securities sold under agreements to repurchase | 2,803,043 | — | — | 2,806,428 | 2,806,428 | |||||||||||||||
| Derivative instruments | 26,963 | — | 26,905 | 58 | 26,963 | |||||||||||||||
| Liabilities held in trust for deferred compensation plan | 21,849 | 21,849 | — | — | 21,849 | |||||||||||||||
| Total | $ | 28,269,214 | $ | 23,050,804 | $ | 26,905 | $ | 5,216,023 | $ | 28,293,732 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 24, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.