Diverse and stable revenue mix Strong credit quality Above-average funding profile Geographic concentration in the Midwest The stable outlook on Commerce Bancshares Inc. reflects Standard&Poor's Ratings Services' expectation that Commerce's conservative management practices, good asset quality, and sizable fee income revenues will translate into continued stable earnings over the next two years. We could revise the outlook to negative if asset quality metrics or capital levels deteriorate rapidly. If asset quality deteriorates to levels beyond our expectations, with nonperforming assets (by our measure) approaching 2.5%, we could lower the ratings. We could also lower the ratings if our risk-adjusted capital (RAC) ratio falls closer to or under the 10% threshold for the range we deem as "strong," according
