COMMERCE BANCSHARES INC /MO/CBSH
COMMERCE BANCSHARES INC /MO/ Leases Disclosure
Leases
The Company's leasing activities include leasing certain real estate and equipment, providing lease financing to commercial customers, and leasing office space to third parties. The Company uses the FHLB fixed-advance rate at lease commencement or at any subsequent remeasurement event date based on the remaining lease term to calculate the liability for each lease.
Lessee
The Company's operating leases are primarily for branches, office space, ATM locations, and certain equipment. As of December 31, 2025, the right-of-use asset for , and
reported within other liabilities, recognized on the Company's consolidated balance sheets totaled $30.6 million and $31.5 million, respectively, compared to right-of-use assets of $30.7 million and lease liability of $31.2 million at December 31, 2024. Total lease cost for the year ended December 31, 2025 was $8.6 million, compared to $8.5 million for the year ended December 31, 2024. For leases with a term of 12 months or less, an election was made not to recognize lease assets and lease liabilities for all asset classes, and to recognize lease expense for these leases on a straight-line basis over the lease term. The Company's leases have remaining terms of 2 months to 26 years, most of which contain renewal options. However, the renewal options are generally not included in the leased asset or liability because the option exercises are uncertain.
The maturities of operating leases at December 31, 2025 are included in the table below.
| (in thousands) | Operating Leases(1) | ||||
| 2026 | $ | 6,730 | |||
| 2027 | 6,468 | ||||
| 2028 | 5,952 | ||||
| 2029 | 4,385 | ||||
| 2030 | 3,268 | ||||
| After 2030 | 12,091 | ||||
| Total lease payments | $ | 38,894 | |||
| Less: Interest | 7,437 | ||||
| Present value of lease liabilities | $ | 31,457 | |||
(1) Excludes $2.8 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
The following table presents the average lease term and discount rate of operating leases.
| December 31, 2025 | December 31, 2024 | |||||||
| Weighted-average remaining lease term | 8.7 years | 9.2 years | ||||||
| Weighted-average discount rate | 4.38 | % | 4.32 | % | ||||
Supplemental cash flow information related to operating leases is included in the table below.
| For the Year Ended December 31 | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Operating cash paid toward lease liabilities | $ | 6,575 | 6,553 | |||||
| Leased assets obtained in exchange for new lease liabilities | $ | 7,695 | 9,128 | |||||
Lessor
The Company has net investments in direct financing and sales-type leases to commercial, industrial, and tax-exempt entities. These leases are included within business loans on the Company's consolidated balance sheets. The Company primarily leases various types of equipment, trucks and trailers, and office furniture and fixtures. Lease agreements may include options for the lessee to renew or purchase the leased equipment at the end of the lease term. The Company has elected to adopt the lease component expedient in which the lease and nonlease components are combined into the total lease receivable. The Company also leases office space to third parties, and these leases are classified as operating leases. The leases may include options to renew or to expand the leased space, and currently the leases have remaining terms of 1 month to 13 years.
The following table provides the components of lease income.
| For the Year Ended December 31 | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Direct financing and sales-type leases | 39,771 | 37,168 | ||||||
| 18,464 | 16,816 | |||||||
| Total lease income | $ | 58,235 | $ | 53,984 | ||||
(1) Includes rent from Tower Properties, a related party, of $0 and $78 thousand for the years ended December 31, 2025 and 2024, respectively. Tower Properties Company was no longer a lessee of the Company as of January 1, 2025.
The following table presents the components of the net investments in direct financing and sales-type leases.
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Lease payment receivable | $ | 780,925 | $ | 792,863 | |||||||
| Unguaranteed residual assets | 81,818 | 84,063 | |||||||||
| Total net investments in direct financing and sales-type leases | $ | 862,743 | $ | 876,926 | |||||||
| Deferred origination cost | 2,145 | 2,715 | |||||||||
| Total net investment included within business loans | $ | 864,888 | $ | 879,641 | |||||||
The maturities of lease receivables at December 31, 2025 are included in the table below.
| (in thousands) | Direct Financing and Sale-Type Leases | Operating Leases | Total | ||||||||
| 2026 | $ | 247,926 | $ | 16,344 | $ | 264,270 | |||||
| 2027 | 214,284 | 15,089 | 229,373 | ||||||||
| 2028 | 174,483 | 14,698 | 189,181 | ||||||||
| 2029 | 105,257 | 11,033 | 116,290 | ||||||||
| 2030 | 69,465 | 10,696 | 80,161 | ||||||||
| After 2030 | 55,100 | 60,255 | 115,355 | ||||||||
| Total lease receipts | 866,515 | $ | 128,115 | $ | 994,630 | ||||||
| Less: Net present value adjustment | 85,590 | ||||||||||
| Present value of lease receipts | $ | 780,925 | |||||||||
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 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.