A letter from David Kemper, Chairman, President and CEO of Commerce Bancshares, Inc.

September, 2008

Dear Customer:

At Commerce Bank, we are committed to our customers, our shareholders and our community. We’re very aware, as you are, of the high levels of uncertainty that exist in today’s economic environment and within the financial services industry. Amid this uncertainty, we want you to be confident in your choice of Commerce as your bank.

Commerce’s Safety and Soundness

Commerce has built a 140-year history of stability, characterized by excellent capital positions, prudent activity and sustained growth. Commerce has continued to adhere to its safety and soundness practices throughout today’s challenges and is prepared for economic fluctuations.  During the last 12 months, your Bank has increased its shareholders’ equity 10% to nearly $1.6 billion.  Independent companies and opinion makers who analyze bank financial statements have also recognized Commerce’s stability.  For example:

• Moody’s Investor Services, April 2008, rated Commerce the highest of 37 regional banks with assets between $10 billion and $100 billion.  Of the 50 largest banks in the country, only 4 banks have a higher rating than Commerce.

Please be assured that because Commerce is rated one of the strongest banks in the country, it will serve you well during this difficult time.

Federal Deposit Insurance Corporation (FDIC)

The FDIC has also been in the news regarding insurance on deposits and how it protects you.  Commerce has been providing Federal Deposit Insurance Corporation (FDIC) coverage to our customers for 75 years – since the FDIC began in 1933. You can be assured that your deposits at Commerce are insured up to the full amount available under FDIC – currently at least $250,000 per depositor, plus an additional $250,000 for retirement accounts.

And, in these uncertain times, we want to help you make the most of the FDIC coverage that’s available to you. Under FDIC rules, you may qualify for more than $250,000 in coverage at Commerce if you own deposit accounts in different ownership categories such as single accounts, joint accounts, revocable trust accounts and certain retirement accounts.

We would be happy to sit down with you, review your accounts here and at other financial institutions, and discuss options that may allow you to extend the FDIC coverage on your deposits. If we can help, please call your Commerce Banker and we’ll arrange a time to meet that is convenient for you.  Or you may call our Customer Care Center at
1-800-453-2265 for assistance.

We’re proud to be rated as one of the safest banks around – and honored to have the opportunity to help you benefit from that soundness, as well as the wide range of products and great service that you’ve come to expect from Commerce. Again, we truly appreciate your trust and confidence, and are committed to building on that trust in the years to come.

Sincerely,

David W. Kemper
Chairman, President and CEO
Commerce Bancshares, Inc.

On October 3, 2008, FDIC deposit insurance temporarily increased from at least $100,000 to $250,000 per depositor through December 31, 2009.

Best viewed in Internet Explorer 6.0 or higher and Netscape 7.1 or higher
Copyright © 2008 Commerce Bancshares, Inc. Member FDIC. All Rights Reserved. Terms of Use