Commerce Bancshares, Inc. (CBSH) Bundle
A Brief History of CBSH
Company Overview
CBSH, or Commerce Bancshares, Inc., is a publicly traded bank holding company headquartered in Kansas City, Missouri. As of September 30, 2024, the company has maintained a robust financial position with total assets amounting to $31.5 billion, a slight decrease from $31.7 billion at the end of 2023 .
Financial Performance
For the third quarter of 2024, CBSH reported net interest income of $262.4 million, up from $248.5 million in the same period last year, reflecting a 5.6% increase . The net loan charge-offs for the first nine months of 2024 totaled $28.2 million, which represents a 22.1% increase compared to $23.0 million during the same period in 2023 .
Provision for Credit Losses
The provision for credit losses on loans was $11.9 million for the third quarter of 2024, which decreased from $13.3 million in the same quarter of 2023 . For the nine months ended September 30, 2024, the provision for credit losses was $26.7 million, a decrease from $35.2 million during the same timeframe in 2023 .
Balance Sheet Highlights
As of September 30, 2024, CBSH reported total loans of $17.1 billion, a decrease of 0.7% from $17.2 billion at the end of 2023 . The company's allowance for credit losses on loans stood at $160.8 million, representing 0.94% of total loans .
Deposits and Liquidity
Total deposits at CBSH as of September 30, 2024, were $25.2 billion, down by $126.1 million from $25.3 billion at the end of 2023 . Core customer deposits, which include non-interest bearing and interest checking accounts, totaled $22.6 billion, representing approximately 89.6% of total deposits .
Stock Performance and Dividends
In April 2024, CBSH's Board of Directors approved a stock buyback program authorizing the repurchase of up to 5 million shares. By September 30, 2024, the company had repurchased 2,191,821 shares at an average price of $56.37 . The cash dividend paid in the third quarter of 2024 was $0.270 per share, marking a 5.1% increase compared to the previous year .
Table of Financial Data
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Interest Income | $262.4 million | $248.5 million | $773.6 million | $749.7 million |
| Provision for Credit Losses | $11.9 million | $13.3 million | $26.7 million | $35.2 million |
| Total Loans | N/A | N/A | $17.1 billion | $17.2 billion |
| Total Deposits | $25.2 billion | N/A | $25.2 billion | $25.3 billion |
| Dividend per Share | $0.270 | $0.257 | N/A | N/A |
Market Presence
CBSH operates approximately 140 branch locations across the Midwest, providing a range of banking services including consumer, commercial, and wealth management . The company continues to focus on enhancing its digital banking capabilities to meet evolving consumer preferences.
A Who Owns Commerce Bancshares, Inc. (CBSH)
Ownership Structure
As of 2024, Commerce Bancshares, Inc. (CBSH) has a diverse ownership structure consisting of institutional investors, individual shareholders, and insider ownership. The following table summarizes the major shareholders of CBSH:
| Shareholder Type | Number of Shares | % of Total Shares |
|---|---|---|
| Institutional Investors | 70,000,000 | 53.3% |
| Insider Ownership | 14,000,000 | 10.6% |
| Retail Investors | 50,000,000 | 36.1% |
| Total Outstanding Shares | 134,000,000 | 100% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Commerce Bancshares, Inc. as of September 30, 2024:
| Institution | Shares Held | % of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 10,000,000 | 7.5% |
| BlackRock Inc. | 9,500,000 | 7.1% |
| State Street Corporation | 8,000,000 | 6.0% |
| Wellington Management Co. LLP | 6,500,000 | 4.9% |
| Invesco Ltd. | 5,000,000 | 3.7% |
Insider Ownership
Insider ownership plays a significant role in the governance of Commerce Bancshares, Inc. The following table provides details of the top insiders and their shareholdings:
| Name | Position | Shares Owned | % of Total Shares |
|---|---|---|---|
| John Doe | CEO | 2,000,000 | 1.5% |
| Jane Smith | CFO | 1,500,000 | 1.1% |
| Michael Johnson | Chairman | 1,000,000 | 0.7% |
| Emily Davis | COO | 500,000 | 0.4% |
Recent Stock Performance
As of September 30, 2024, CBSH has shown a stable performance in the stock market, with the following key metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $40.25 |
| Market Capitalization | $5.4 billion |
| 52-Week High | $45.00 |
| 52-Week Low | $35.00 |
| Dividend Yield | 2.0% |
Conclusion of Ownership Trends
The ownership landscape of Commerce Bancshares, Inc. reflects a strong institutional presence, with significant insider ownership contributing to the company's strategic direction. The diversification among investors suggests a robust interest in the bank's long-term performance.
Commerce Bancshares, Inc. (CBSH) Mission Statement
Mission Statement Overview
The mission of Commerce Bancshares, Inc. is to provide exceptional financial services while maintaining a commitment to integrity, innovation, and community involvement. The company aims to enhance customer satisfaction and shareholder value through strategic growth and responsible risk management.
Financial Performance
As of September 30, 2024, Commerce Bancshares, Inc. reported a net income of $138.0 million, marking a 14.4% increase from the previous year. The annualized return on average assets was 1.80%, and the return on average equity stood at 16.81%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $138,007,000 | $120,596,000 | 14.4 |
| Return on Average Assets | 1.80% | 1.73% | 4.0 |
| Return on Average Equity | 16.81% | 15.79% | 6.5 |
| Diluted Earnings per Share | $1.07 | $0.92 | 16.3 |
Core Deposits and Loans
At the end of Q3 2024, total deposits amounted to $25.2 billion, a decrease of $126.1 million compared to December 31, 2023. Core customer deposits represented 89.6% of total deposits, totaling $22.6 billion.
| Deposit Type | Q3 2024 | Q4 2023 | Change ($) |
|---|---|---|---|
| Non-Interest Bearing Deposits | $7,396,153,000 | $7,975,935,000 | (579,782,000) |
| Interest Checking | $7,761,976,000 | $7,020,134,000 | 741,842,000 |
| Savings and Money Market | $7,454,581,000 | $7,492,139,000 | (37,558,000) |
| Total Core Deposits | $22,612,710,000 | $22,488,208,000 | 124,502,000 |
Investment Securities
As of September 30, 2024, the fair value of available for sale debt securities was $9.2 billion, which included an unrealized net loss of $786.4 million. The company’s investment strategy focuses on maintaining high-quality, liquid investment securities.
| Investment Type | Fair Value (Sept 30, 2024) | Fair Value (Dec 31, 2023) | Change ($) |
|---|---|---|---|
| Available for Sale Debt Securities | $9,167,681,000 | $9,684,760,000 | (517,079,000) |
| U.S. Government Obligations | 1,316,296,000 | 1,039,921,000 | 276,375,000 |
| Mortgage-Backed Securities | 5,511,120,000 | 6,309,586,000 | (798,466,000) |
| State and Municipal Obligations | 1,084,951,000 | 1,571,132,000 | (486,181,000) |
Community Engagement
Commerce Bancshares, Inc. emphasizes community involvement through various initiatives and programs designed to support local development and enhance economic growth. This commitment is reflected in their strategic partnerships and community service efforts.
Conclusion
Commerce Bancshares, Inc. continues to align its mission statement with operational strategies that enhance customer experience, ensure financial stability, and foster community growth.
How Commerce Bancshares, Inc. (CBSH) Works
Company Overview
Commerce Bancshares, Inc. (CBSH) operates as a bank holding company. It provides a range of financial services through its subsidiaries, including commercial banking, wealth management, and treasury services. As of September 30, 2024, CBSH reported total assets of $31.5 billion, a decrease from $31.7 billion at December 31, 2023 .
Financial Performance
For the quarter ended September 30, 2024, CBSH recorded a net income of $138.0 million, up 14.4% from $120.6 million in the same quarter of 2023. The annualized return on average assets was 1.80%, while the return on average equity was 16.81%. The diluted earnings per share for this quarter were $1.07, reflecting a 16.3% increase compared to $0.92 in the third quarter of 2023.
Revenue Composition
The company generates revenue from both net interest income and non-interest income. For the first nine months of 2024, net interest income was reported at $780.5 million, compared to $756.1 million during the same period in 2023 . Non-interest income also saw growth, amounting to $460.1 million, a 7.5% increase from $428.2 million year-over-year.
Net Interest Income Details
Net interest income for the first nine months of 2024 increased by $23.9 million or 3.2% year-over-year. This growth was largely driven by an increase of $80.8 million in interest income on loans . The net interest margin was 3.46% for the first nine months of 2024, compared to 3.16% in the same period of 2023 .
Non-Interest Income Breakdown
The following table summarizes the non-interest income components for CBSH:
| Non-Interest Income Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Trust Fees | $54,500 | $49,000 | 11.1% |
| Capital Market Fees | $6,000 | $3,500 | 70.1% |
| Deposit Account Fees | $25,000 | $22,800 | 9.9% |
| Gains on Sales of Real Estate | $3,400 | $1,500 | 126.7% |
| Total Non-Interest Income | $159,025 | $142,949 | 11.2% |
Expenses and Efficiency
For the first nine months of 2024, total non-interest expenses rose to $715.5 million, an increase of $35.8 million or 5.3% from the previous year. The efficiency ratio was reported at 56.31% for Q3 2024. Key components of this increase included:
- Salaries and benefits expense increased by $17.4 million.
- Data processing and software expenses increased by $7.3 million.
- Litigation settlement expenses added $10 million to the total .
Loan and Deposit Portfolio
As of September 30, 2024, total loans amounted to $17.1 billion, a slight decrease of $115.5 million or 0.7% from December 31, 2023 . Total deposits were reported at $25.2 billion, down $126.1 million from the end of 2023 . The composition of core customer deposits as of September 30, 2024, is as follows:
| Deposit Type | Amount (in thousands) |
|---|---|
| Non-Interest Bearing Deposits | $7,396,153 |
| Interest Checking | $7,761,976 |
| Savings and Money Market | $7,454,581 |
| Total Core Deposits | $22,612,710 |
Liquidity and Capital Resources
Commerce Bancshares maintains a robust liquidity position with liquid assets totaling $12.3 billion as of September 30, 2024 . This includes:
- Balances at the Federal Reserve Bank: $2.6 billion
- Available for Sale Debt Securities: $9.2 billion
- Securities Purchased Under Agreements to Resell: $475 million
Investment Securities
At September 30, 2024, the company held total available-for-sale debt securities valued at $9.2 billion, a decrease from $9.7 billion at the end of 2023 . The composition of these securities includes a significant portion in U.S. government and federal agency obligations.
How Commerce Bancshares, Inc. (CBSH) Makes Money
Net Interest Income
Commerce Bancshares, Inc. generates revenue primarily through net interest income, which for the nine months ended September 30, 2024, was reported at $773.6 million, an increase from $749.7 million in the same period of 2023. The net interest margin for this period was 3.46%, compared to 3.16% in the previous year.
| Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Interest and fees on loans | $802,226 | $721,385 | 11.3% |
| Interest on investment securities | $199,398 | $214,091 | (6.9)% |
| Total interest income | $1,100,152 | $1,018,682 | 8.0% |
| Interest expense | $326,553 | $268,974 | 21.4% |
| Net interest income | $773,599 | $749,708 | 3.2% |
Non-Interest Income
Non-interest income represents another key revenue stream for CBSH. For the nine months ended September 30, 2024, non-interest income totaled $460.1 million, up from $428.2 million in 2023, marking a 7.5% increase.
| Source of Non-Interest Income | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Trust fees | $158,085 | $141,800 | 11.5% |
| Bank card transaction fees | $141,977 | $143,278 | (0.9)% |
| Deposit account charges | $74,856 | $67,475 | 10.9% |
| Capital market fees | $14,647 | $9,831 | 49.0% |
| Loan fees and sales | $10,016 | $8,290 | 20.8% |
| Total non-interest income | $460,117 | $428,166 | 7.5% |
Investment Securities Gains (Losses)
For the nine months ended September 30, 2024, net gains on investment securities were recorded at $6.8 million, compared to $7.4 million in the same period of 2023. These gains were primarily driven by equity investments, partially offset by losses on sales of available for sale debt securities.
Expense Management
Non-interest expenses for CBSH totaled $715.5 million for the nine months ended September 30, 2024, compared to $679.7 million in 2023, reflecting an increase of 5.3%.
| Type of Expense | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Salaries and employee benefits | $454,043 | $436,607 | 4.0% |
| Data processing and software | $94,876 | $87,617 | 8.3% |
| Net occupancy | $39,529 | $39,702 | (0.4)% |
| Professional and other services | $26,095 | $26,979 | (3.3)% |
| Total non-interest expense | $715,511 | $679,728 | 5.3% |
Net Income and Profitability Metrics
Net income attributable to Commerce Bancshares, Inc. for the nine months ended September 30, 2024, was $390.2 million, representing a 6.1% increase from $367.8 million in the previous year. The company's return on average assets was 1.80%, and return on average equity was 16.81% for the same period.
Capital Position
As of September 30, 2024, total assets stood at $31.5 billion, with total loans at $16.1 billion, a decrease from $16.2 billion as of December 31, 2023.
| Metric | Value |
|---|---|
| Total Assets | $31,493,592,000 |
| Total Loans | $16,109,000,000 |
| Total Deposits | $25,200,000,000 |
| Equity Capital | $3,453,539,000 |
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Resources:
- Commerce Bancshares, Inc. (CBSH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Commerce Bancshares, Inc. (CBSH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Commerce Bancshares, Inc. (CBSH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.