exv99w1

Exhibit 99.1

FOR IMMEDIATE RELEASE:
Thursday, July 12, 2007

COMMERCE BANCSHARES, INC. REPORTS SECOND QUARTER
EARNINGS PER SHARE OF $.79

Commerce Bancshares, Inc. announced earnings of $.79 per share for the three months ended June 30, 2007, an increase of 1.3% compared to $.78 per share in the second quarter of 2006. Net income for the second quarter amounted to $55.6 million compared with $55.3 million in the same period last year. The return on average assets for the three months ended June 30, 2007 was 1.46%, and the return on average equity was 15.1%.

For the six months ended June 30, 2007, earnings per share totaled $1.52 and were the same as reported for the first six months of last year. Net income amounted to $107.1 million in 2007 compared with $108.3 million in 2006. For the six months of 2007, the return on average assets was 1.42%, and the return on average equity was 14.8%.

In making this announcement, David W. Kemper, Chairman and CEO, said, “Revenue growth improved this quarter as a result of a 6% increase in net interest income over the same period last year. The net interest margin was stable at 3.82%. Also, during the second quarter we experienced double-digit revenue growth in both our bankcard and trust businesses while continuing to experience significant growth in our deposit fee income. Non-interest expense was essentially flat with the prior quarter and remained well controlled. On an annualized basis, average loans outstanding grew this quarter by 13% as demand remained solid for both commercial and consumer loan products.”

Mr. Kemper continued, “While net loan charge-offs increased slightly this quarter, overall asset quality remained good with net loan charge-offs totaling .36% of average loans compared with .34% in the previous quarter. Total non-accrual loans increased to $33.2 million this quarter, representing .32% of outstanding loans. Our allowance for loan losses totaled $133.0 million, or 1.30% of outstanding loans, which represents 401% of total non-accrual loans.”

Total assets at June 30, 2007 were $15.5 billion, total loans were $10.5 billion, and total deposits were $12.1 billion. On July 1, 2007 the Company completed its acquisition of Commerce Bank, Denver, Colorado with loans of $79 million and deposits of $72 million. Also during the quarter, the Company purchased approximately 932 thousand shares of its common stock through its treasury stock buyback plan.

(more)

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 approximately 360 locations in Missouri, Illinois, Kansas and Oklahoma. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, venture capital, and real estate activities.

Posted to the Company’s web site is management’s discussion of second quarter results. To see this information, please visit our web site at www.commercebank.com.

* * * * * * * * * * * * * * *

For additional information, contact
Jeffery Aberdeen, Controller
at PO Box 419248, Kansas City, MO
or by telephone at (816) 234-2081
Web Site: http://www.commercebank.com

Email: mymoney@commercebank.com

(Amounts in thousands)

3/31/07

6/30/07

6/30/06

Non-Accrual Loans

17,022

33,159

14,155

Foreclosed Real Estate

1,034

1,084

1,793

Total Non-Performing Assets

18,056

34,243

15,948

Non-Performing Assets to Loans

.18

.33

.18

Non-Performing Assets to Total Assets

.12

.22

.11

Loans 90 Days & Over Past Due – Still Accruing

19,566

21,929

15,186

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
FINANCIAL HIGHLIGHTS


(Unaudited)	For the Three Months Ended									For the Six Months Ended
	March 31			June 30			June 30			June 30			June 30
	2007			2007			2006			2007			2006

FINANCIAL SUMMARY (In thousands, except per share data)
Net interest income	$	131,479		$	133,864		$	126,479		$	265,343		$	250,214
Taxable equivalent net interest income		133,694			136,139			128,009			269,833			253,097
Non-interest income		84,284			94,059			88,179			178,343			175,224
Investment securities gains (losses), net		3,895			(493	)		3,284			3,402			5,687
Provision for loan losses		8,161			9,054			5,672			17,215			10,104
Non-interest expense		136,419			136,349			129,550			272,768			259,511
Net income		51,496			55,574			55,333			107,070			108,277
Cash dividends		17,359			17,319			16,311			34,678			32,690
Net total loan charge-offs		8,161			9,052			5,694			17,213			10,105
Net business charge-offs (recov)		704			(11	)		259			693			(822	)
Net credit card charge-offs		5,813			5,948			4,387			11,761			8,135
Net personal banking charge-offs (1)		1,965			1,823			446			3,788			2,095
Net real estate charge-offs (recov)		(501	)		988			80			487			(175	)
Net overdraft charge-offs		180			304			522			484			872
Per share:
Net income — basic	$	0.74		$	0.80		$	0.79		$	1.54		$	1.54
Net income — diluted	$	0.73		$	0.79		$	0.78		$	1.52		$	1.52
Cash dividends	$	0.250		$	0.250		$	0.233		$	0.500		$	0.467
Diluted wtd. average shares o/s		70,494			70,067			70,833			70,279			71,077

RATIOS
Average loans to deposits (2)		87.77	%		87.73	%		84.27	%		87.75	%		83.80	%
Return on total average assets		1.38	%		1.46	%		1.61	%		1.42	%		1.59	%
Return on total average stockholders’ equity		14.41	%		15.12	%		16.59	%		14.77	%		16.37	%
Non-interest income to revenue (3)		39.06	%		41.27	%		41.08	%		40.20	%		41.19	%
Efficiency ratio (4)		62.79	%		59.43	%		60.35	%		61.07	%		61.00	%

AT PERIOD END
Book value per share based on total stockholders’ equity	$	20.86		$	21.12		$	19.12
Market value per share	$	48.31		$	45.30		$	47.67
Allowance for loan losses as a percentage of loans		1.33	%		1.30	%		1.41	%
Tier I leverage ratio		8.94	%		8.94	%		9.47	%
Common shares outstanding		69,331,829			69,013,266			69,630,136
Shareholders of record		4,679			4,685			4,430
Number of bank/ATM locations		359			361			347
Number of bank charters		3			3			3
Full-time equivalent employees		5,030			5,051			4,868

				June 30			June 30
OTHER YTD INFORMATION					2007			2006

High market value per share				$	50.77		$	50.67
Low market value per share				$	44.66		$	46.80


(1)		Includes net charge-offs on consumer and home equity loans

(2)		Includes loans held for sale

(3)		Revenue includes net interest income and non-interest income.

(4)		The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of revenue.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME


(Unaudited)	For the Three Months Ended							For the Six Months Ended
(In thousands, except per share data)	March 31		June 30			June 30		June 30		June 30
	2007		2007			2006		2007		2006

INTEREST INCOME
Interest and fees on loans	$	176,543	$	183,736		$	155,672	$	360,279	$	300,285
Interest and fees on loans held for sale		6,080		6,185			5,516		12,265		10,777
Interest on investment securities		38,419		36,370			36,261		74,789		73,391
Interest on federal funds sold and securities purchased under agreements to resell		7,225		6,517			1,801		13,742		3,424


Total interest income		228,267		232,808			199,250		461,075		387,877


INTEREST EXPENSE
Interest on deposits:
Savings, interest checking and money market		27,637		29,812			23,002		57,449		42,609
Time open and C.D.’s of less than $100,000		26,565		27,671			19,448		54,236		36,179
Time open and C.D.’s of $100,000 and over		16,913		19,566			13,906		36,479		27,093
Interest on other borrowings		25,673		21,895			16,415		47,568		31,782

Total interest expense		96,788		98,944			72,771		195,732		137,663

Net interest income		131,479		133,864			126,479		265,343		250,214
Provision for loan losses		8,161		9,054			5,672		17,215		10,104

Net interest income after provision for loan losses		123,318		124,810			120,807		248,128		240,110


NON-INTEREST INCOME
Deposit account charges and other fees		26,511		30,081			28,910		56,592		56,407
Bank card transaction fees		23,083		25,855			23,558		48,938		45,266
Trust fees		18,653		19,972			17,992		38,625		35,811
Trading account profits and commissions		1,861		1,440			2,010		3,301		4,575
Consumer brokerage services		3,043		3,332			2,771		6,375		5,160
Loan fees and sales		1,285		2,712			2,745		3,997		6,488
Other		9,848		10,667			10,193		20,515		21,517

Total non-interest income		84,284		94,059			88,179		178,343		175,224


INVESTMENT SECURITIES GAINS, NET		3,895		(493	)		3,284		3,402		5,687


NON-INTEREST EXPENSE
Salaries and employee benefits		76,900		76,123			71,239		153,023		142,964
Net occupancy		11,790		10,843			10,230		22,633		21,207
Equipment		6,433		5,681			6,071		12,114		12,020
Supplies and communication		8,506		8,586			7,872		17,092		16,265
Data processing and software		11,231		12,149			12,631		23,380		25,024
Marketing		4,318		4,859			4,657		9,177		8,975
Other		17,241		18,108			16,850		35,349		33,056

Total non-interest expense		136,419		136,349			129,550		272,768		259,511

Income before income taxes		75,078		82,027			82,720		157,105		161,510
Less income taxes		23,582		26,453			27,387		50,035		53,233

NET INCOME	$	51,496	$	55,574		$	55,333	$	107,070	$	108,277


Net income per share — basic	$	0.74	$	0.80		$	0.79	$	1.54	$	1.54

Net income per share — diluted	$	0.73	$	0.79		$	0.78	$	1.52	$	1.52

Cash dividends per common share	$	0.250	$	0.250		$	0.233	$	0.500	$	0.467

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


(Unaudited)	March 31			June 30			June 30
(In thousands)	2007			2007			2006

ASSETS
Loans	$	9,903,568		$	10,225,921		$	9,112,834
Allowance for loan losses		(131,730	)		(132,960	)		(128,446	)

Net loans		9,771,838			10,092,961			8,984,388

Loans held for sale		363,052			258,563			267,059
Investment securities:
Available for sale		3,243,687			3,129,310			3,337,477
Trading		11,753			19,600			17,001
Non-marketable		78,605			92,213			81,401

Total investment securities		3,334,045			3,241,123			3,435,879

Federal funds sold and securities purchased under agreements to resell		466,810			566,145			237,072
Cash and due from banks		519,138			497,909			662,790
Land, buildings and equipment — net		389,714			397,108			367,954
Goodwill		99,158			110,705			48,522
Other intangible assets — net		16,207			18,052			42
Other assets		234,835			336,805			269,691

Total assets	$	15,194,797		$	15,519,371		$	14,273,397


LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing demand	$	1,354,160		$	1,271,730		$	1,326,787
Savings, interest checking and money market		6,804,397			6,910,086			6,439,068
Time open and C.D.’s of less than $100,000		2,326,353			2,363,580			2,028,700
Time open and C.D.’s of $100,000 and over		1,447,633			1,516,326			1,247,790

Total deposits		11,932,543			12,061,722			11,042,345
Federal funds purchased and securities sold under agreements to repurchase		1,633,884			1,494,604			1,586,511
Other borrowings		39,235			346,137			144,919
Other liabilities		143,120			159,221			168,227

Total liabilities		13,748,782			14,061,684			12,942,002

Stockholders’ equity:
Preferred stock		—			—			—
Common stock		352,330			352,330			347,049
Capital surplus		421,983			422,189			385,358
Retained earnings		717,759			756,014			768,608
Treasury stock		(52,134	)		(65,904	)		(152,189	)
Accumulated other comprehensive income (loss)		6,077			(6,942	)		(17,431	)

Total stockholders’ equity		1,446,015			1,457,687			1,331,395

Total liabilities and stockholders’ equity	$	15,194,797		$	15,519,371		$	14,273,397

COMMERCE BANCSHARES, INC. and SUBSIDIARIES
AVERAGE BALANCES


(Unaudited)	For the Three Months Ended									For the Six Months Ended
(Dollars in thousands)	March 31			June 30			June 30			June 30			June 30
	2007			2007			2006			2007			2006

Loans:
Business	$	2,988,157		$	3,134,650		$	2,694,246		$	3,061,808		$	2,618,783
Real estate — construction		646,396			657,956			508,127			652,208			474,992
Real estate — business		2,147,329			2,224,877			1,997,502			2,186,317			1,984,422
Real estate — personal		1,488,908			1,514,445			1,365,652			1,501,747			1,359,199
Consumer		1,463,383			1,518,855			1,333,105			1,491,272			1,310,865
Home equity		435,291			438,471			446,094			436,890			446,638
Credit card		632,945			646,699			584,508			639,860			581,042
Overdrafts		12,300			11,311			11,836			11,803			15,952

Total loans		9,814,709			10,147,264			8,941,070			9,981,905			8,791,893

Loans held for sale		350,974			354,878			293,332			352,937			329,332
Investment securities (excluding unrealized gains and losses):
Available for sale		3,329,159			3,156,708			3,405,527			3,242,457			3,468,215
Trading		18,555			24,430			21,144			21,509			20,084
Non-marketable		77,513			90,018			86,658			83,800			85,340


Total investment securities		3,425,227			3,271,156			3,513,329			3,347,766			3,573,639

Federal funds sold and securities purchased under agreements to resell		556,370			503,526			142,651			529,802			142,203

Total interest earning assets		14,147,280			14,276,824			12,890,382			14,212,410			12,837,067

Total assets		15,173,833			15,315,984			13,800,313			15,245,301			13,753,543


Deposits:
Non-interest bearing deposits		619,858			650,119			663,820			635,072			630,839
Interest bearing deposits:
Savings		397,406			406,313			396,959			401,884			390,450
Interest checking		165,285			193,278			193,506			179,359			179,596
Money market		6,716,338			6,812,831			6,472,684			6,764,851			6,483,762
Time open & C.D.’s of less than $100,000		2,308,183			2,347,311			1,973,722			2,327,855			1,927,755
Time open & C.D.’s of $100,000 and over		1,375,250			1,561,463			1,257,161			1,468,871			1,271,576

Total interest bearing deposits		10,962,462			11,321,196			10,294,032			11,142,820			10,253,139

Total deposits		11,582,320			11,971,315			10,957,852			11,777,892			10,883,978

Borrowings:
Federal funds purchased and securities sold under agreements to repurchase		1,969,041			1,471,784			1,213,925			1,719,039			1,220,338
Other borrowings		50,432			275,618			205,472			163,647			232,874

Total borrowings		2,019,473			1,747,402			1,419,397			1,882,686			1,453,212


Total interest bearing liabilities		12,981,935			13,068,598			11,713,429			13,025,506			11,706,351
Total stockholders’ equity		1,449,546			1,473,999			1,337,423			1,461,840			1,333,898

Net yield on interest earning assets (tax-equivalent basis)		3.83	%		3.82	%		3.98	%		3.83	%		3.98	%

COMMERCE BANCSHARES, INC.
Management Discussion of Second Quarter Results
June 30, 2007

For the quarter ended June 30, 2007, net income amounted to $55.6 million, an increase of $4.1 million over the previous quarter and an increase of $241 thousand over the same quarter last year. For the current quarter, the return on average assets was 1.5%, the return on average equity was 15.1%, and the efficiency ratio was 59.4%.

Balance Sheet Review

During the 2^nd quarter of 2007, average loans, including held for sale loans, increased $336.5 million, or 3.3%, compared to the previous quarter, and represented annualized growth of 13.2%. Also, average loans, including held for sale, increased $1.3 billion, or 13.7%, during the 2^nd quarter of 2007 compared to the 2^nd quarter of 2006. With the acquisition of South Tulsa Financial Corp., which occurred on April 1, 2007, the Company added loans with a combined quarterly average balance of $122.5 million, comprised mainly of business, business real estate and construction loans. Overall during the quarter, the increase in average loans compared with the previous quarter reflected growth in both the commercial and consumer loan portfolios, and consisted mainly of growth in business ($146.5 million), construction ($11.6 million), business real estate ($77.5 million), and consumer ($55.5 million). When compared with the same quarter last year and excluding the effects of completed bank acquisitions, core loan growth was 8.4%.

Available for sale investment securities (excluding fair value adjustments) decreased on average by $172.5 million, or 5.2%, this quarter compared with the previous quarter. During the current quarter, sales, maturities and principal paydowns of securities totaled $313.4 million, while the Company reinvested $226.1 million of these proceeds in federal agency, mortgage-backed and other asset-backed securities. During the quarter, the Company sold $22.6 million of mortgage-backed home equity securities for a loss of $393 thousand.

Total average deposits increased by $389.0 million, or 3.4%, during the 2^nd quarter of 2007 compared to the previous quarter, and included $106.3 million of deposits acquired in the South Tulsa transaction mentioned above. Compared to the 2^nd quarter of 2006, average deposits grew by $1.0 billion, or 9.2%, which included $411.9 million in deposits related to two bank acquisitions completed in the 3^rd quarter of last year, in addition to the deposits acquired from South Tulsa. Exclusive of these acquisitions, deposits grew by 4.5%, or $495.3 million. Compared to the previous quarter, the growth in average deposits resulted from an increase in money market accounts ($96.5 million) and certificates of deposit ($225.3 million). The average loans to deposits ratio in the current quarter was 87.7%, compared to 87.8% in the previous quarter.

Average borrowings decreased $272.1 million in the current quarter compared to the prior quarter, mainly due to a $497.5 million decrease in federal funds purchased, partly offset by an increase of $224.8 million in borrowings from the Federal Home Loan Bank as the Company attempted to further diversify its borrowing sources.

Net Interest Income

Net interest income in the 2^nd quarter of 2007 amounted to $133.9 million, an increase of $2.4 million, or 1.8%, compared with the previous quarter and an increase of $7.4 million, or 5.8%, compared to the 2^nd quarter of last year. During the 2^nd quarter of 2007, the net yield on earning assets (tax-equivalent) was 3.82%, compared with 3.83% in the previous quarter and 3.98% in the same period last year.

The increase of $2.4 million in net interest income in the 2^nd quarter of 2007 over the previous quarter was primarily the result of more days in the quarter, an increase in average loan balances and a reduction in overnight borrowings, which have higher rates. Interest income on loans grew by $7.3 million this quarter mainly due to higher average balances on business, business real estate and consumer loans, coupled with relatively stable rates. The decline in interest income on investment securities of $2.0 million resulted mainly from lower average balances of mortgage and asset-backed investment securities and lower rates earned. Interest expense on deposits grew $5.9 million in the 2^nd quarter of 2007 compared with the previous quarter, of which $2.3 million resulted from both higher balances and rates paid on premium money market accounts. Also higher balances on certificates of deposit added to the growth in interest expense. Interest expense on other borrowings decreased by $3.8 million due to lower average balances of federal funds purchased, partly offset by new advances obtained from the Federal Home Loan Bank mentioned above.

During the current quarter, the overall tax equivalent yield on interest earning assets remained flat with the previous quarter, while the overall cost of interest bearing liabilities increased just 2 basis points to 3.04%.

Non-Interest Income

For the 2^nd quarter of 2007, total non-interest income amounted to $94.1 million, an increase of 6.7% compared to $88.2 million in the same period last year, and an increase of 11.6% compared to $84.3 million recorded in the previous quarter. The increase in non-interest income over the 2^nd quarter of last year resulted mainly from double digit growth in bank card, trust and corporate cash management fee income. The increase in bank card fees for the quarter was primarily due to higher fees earned on debit and corporate card transactions, which grew by 14.8% and 30.7%, respectively. Merchant fees, included in bank card revenues, decreased 8.9%, and continued to reflect slightly lower pricing margins and the loss of a large merchant customer last year. Credit card fees were up slightly. Trust fees for the quarter increased 11.0%

COMMERCE BANCSHARES, INC.
Management Discussion of Second Quarter Results
June 30, 2007

over the same quarter last year due to growth in personal and corporate trust fees. The 4.1% increase in deposit account income this quarter was the result of a 19.3% increase in corporate cash management fees, while overdraft fees remained relatively flat. Brokerage fees continued to grow this quarter and were up 20.2% over last year.

During the current quarter, gains on sales of student loans totaled $1.6 million compared with $1.8 million in the same period last year. Approximately $114.0 million of student loans were sold this quarter. Other non-interest income in the 2^nd quarter of 2006 included a $1.3 million gain on the sale of a parking garage, which did not re-occur in the current quarter. The ratio of non-interest income to total revenue was 41.3% in the 2^nd quarter of 2007.

Investment Securities Gains and Losses

Net securities losses amounted to $493 thousand in the 2^nd quarter of 2007, compared to net gains of $3.3 million in the same quarter last year and gains of $3.9 million in the previous quarter. The net loss in the current quarter included a loss of $393 thousand from the sale of certain mortgage-backed home equity investment securities, and a loss of $620 thousand due to fair value adjustments on various private equity investments.

Non-Interest Expense

Non-interest expense for the current quarter amounted to $136.3 million, an increase of $6.8 million, or 5.2%, compared with amounts recorded in the same period last year, and was slightly lower than amounts recorded in the prior quarter. Excluding the effects of the bank acquisitions mentioned above, non-interest expense in the current quarter grew by 2.9% over the same period last year. Compared to the 2^nd quarter of last year, salaries and benefits expense increased $4.9 million, or 6.9%, mainly as a result of merit increases and the effects of the bank acquisitions, which increased salaries and benefits by approximately $2.0 million. Full-time equivalent employees totaled 5,051 and 4,868 at June 30, 2007 and 2006, respectively.

Compared with the 2^nd quarter last year, occupancy and supplies and communication costs increased a combined $1.3 million, or 7.3%, while amortization of intangible assets (included in other expense) grew by $885 thousand. Much of these increases were due to the recent bank acquisitions previously mentioned. Equipment and data processing costs, however, declined by a total of $872 thousand, reflecting lower depreciation, maintenance and software costs.

Income Taxes

The effective tax rate for the Company was 32.2% for the current quarter, compared with 31.4% in the previous quarter and 33.1% in the 2^nd quarter of 2006.

Credit Quality

Net loan charge-offs for the 2^nd quarter of 2007 amounted to $9.1 million, compared with $8.2 million in the prior quarter and $5.7 million in the 2^nd quarter of last year. The increase in net charge-offs in the 2^nd quarter of 2007 compared to the same quarter of last year was the result of higher credit card and personal loan charge-offs, coupled with charge-offs of several real estate construction-related loans this quarter. The lower levels of personal and credit card net loan charge-offs in the 2^nd quarter of 2006 were related to the changes to bankruptcy laws occurring late in 2005, resulting in lower loan charge-offs in the first half of 2006. Year-to-date, the ratio of net loan charge-offs to total average loans was .35% compared to .23% last year.

For the 2^nd quarter of 2007, annualized net charge-offs on average credit card loans were 3.69%, compared with 3.72% in the previous quarter and 3.01% in the same period last year. Additionally, personal banking loan net charge-offs for the quarter amounted to .37% of average personal loans, compared to .42% in the previous quarter and .10% in the same period last year. The provision for loan losses for the quarter totaled $9.1 million, and was $893 thousand higher than the previous quarter and $3.4 million higher than the 2^nd quarter of 2006. The allowance for loan losses at June 30, 2007 amounted to $133.0 million, or 1.30% of total loans, excluding held for sale loans.

Total non-performing assets amounted to $34.2 million, an increase of $16.2 million over the previous quarter and .33% of loans outstanding. This increase was mainly the result of placing one residential construction loan of $13.2 million on non-accrual status. The loan is secured by both undeveloped land and residential lots in the St. Louis metropolitan area, and management believes the collateral values are adequate to support the Company’s carrying value. Non-performing assets are comprised of non-accrual loans ($33.2 million) and foreclosed real estate ($1.1 million). Loans past due more than 90 days and still accruing interest totaled $21.9 million at June 30, 2007.

Other

The Company maintains a treasury stock buyback program. During the current quarter, the Company purchased 932 thousand shares of treasury stock at an average cost of $47.48 per share. On July 2, 2007 the Company announced that it had completed its purchase of Commerce Bank, Denver, Colorado which has one location and loans and deposits of $78.9 million and $72.2 million, respectively.

Forward Looking Information

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements.