COMMERCE BANCSHARES, INC. ANNOUNCES FOURTH QUARTER EARNINGS PER SHARE OF $.60

• View the Fourth Quarter 2009 earnings release.

Commerce Bancshares, Inc. announced earnings of $.60 per share for the quarter ended December 31, 2009 compared to $.55 per share in the fourth quarter of 2008 and $.63 per share in the previous quarter of 2009. Net income for the fourth quarter amounted to $49.6 million compared to $43.8 million in the same quarter last year and $51.6 million in the previous quarter. For the quarter, the return on average assets totaled 1.09%, the return on average equity was 10.5% and the efficiency ratio was 57.4%.

For the year ended December 31, 2009, earnings per share totaled $2.07 compared to $2.36 in 2008. Net income amounted to $169.1 million in 2009 compared to $188.7 million in 2008, or a decline of 10.4%. At December 31, 2009, the ratio of tangible common equity to total assets improved to 9.7% compared to 8.3% at year end 2008.

In announcing these results, David W. Kemper, Chairman and CEO, said, "In a continued challenging environment, we were pleased to report an increase this quarter in net income of $5.8 million, or 13.2%, over the same period last year. This increase was mainly the result of revenue growth of 11% comprised of both net interest income and non-interest income. Net interest income grew by $8.2 million over the same quarter last year while the margin declined slightly to 3.95% compared to 4.06% last year. The increase in non-interest income of $18.2 million resulted from higher fees earned on student lending activities and bankcard transactions. Non-interest expense remained well controlled all year even though FDIC costs increased $4.9 million in the fourth quarter compared to last year and $25.3 million in the full year 2009 compared to 2008. Loan balances continued to decline this quarter as weak demand persisted, while average deposits increased 2.7%, or $376.7 million, over the previous quarter."

Further, Mr. Kemper noted, "We continued to strengthen our balance sheet this quarter through growth in both capital and liquidity. Our ratio of tangible common equity to assets increased to 9.7% this quarter while our loan to deposit ratio totaled 73.6%, reflecting strong capital and liquidity positions among our banking peers. Also, we increased our allowance for loan losses this quarter by $4.0 million, but reduced non-performing assets by $12.6 million, or 10%. Net loan charge-offs for the quarter totaled $37.0 million, an increase of $6.1 million over the previous quarter mainly due to continued high levels of residential development and consumer loan losses."

Total assets at December 31, 2009 were $18.1 billion, total loans were $10.5 billion, and total deposits were $14.2 billion. At December 31, 2009 the allowance for loan losses totaled $194.5 million, representing 1.92% of outstanding loans. Non-performing assets (consisting of non-accrual loans and foreclosed property) totaled $116.7 million at December 31, 2009 compared to $129.2 million at September 30, 2009. The ratio of the allowance for loan losses to non-performing loans increased to 182%.

Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The Company currently operates in over 370 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, and private equity activities.

Summary of Non-Performing Assets and Past Due Loans:

This financial news release, including management’s discussion of fourth quarter results, is posted to the Company’s web site at www.commercebank.com.

For additional information contact:

Email: mymoney@commercebank.com†