Commerce Bancshares Inc.

Diverse and stable revenue mix Higher contribution than peers from noninterest income Above-average funding profile Geographic concentration in the Midwest The stable outlook on Commerce Bancshares Inc. (Commerce) reflects S&P Global Ratings' expectation that Commerce's conservative management practices, good asset quality, and sizable fee income revenue will translate into continued stable earnings over the next two years. We could lower the ratings if the company's asset quality metrics worsen more than we expect, or if we see evidence of looser underwriting standards or a material increase in the bank's construction exposure. We could also lower the ratings if S&P Global Ratings' risk-adjusted capital (RAC) ratio was to decline to 10% and remain there. We believe the probability of an upgrade

...Geographic concentration in the Midwest Outlook: Stable The stable outlook on Commerce Bancshares Inc. (Commerce) reflects S&P Global Ratings' expectation that Commerce's conservative management practices, good asset quality, and sizable fee income revenue will translate into continued stable earnings over the next two years. We could lower the ratings if the company's asset quality metrics worsen more than we expect, or if we see evidence of looser underwriting standards or a material increase in the bank's construction exposure. We could also lower the ratings if S&P Global Ratings' risk-adjusted capital (RAC) ratio was to decline to 10% and remain there. We believe the probability of an upgrade is low in the next two years....

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