A Brief History of Commerce Bancshares, Inc. (CBSH)

Founding and Early Years

Commerce Bancshares, Inc., founded in 1865, began as a commercial bank in Kansas City, Missouri. The institution primarily served local businesses and individuals, laying the groundwork for a complex financial services organization.

Growth and Expansion

From the 1970s through the 1990s, Commerce Bancshares expanded its services and presence significantly. By 1997, the company had grown to operate over 90 banking locations, reflecting a strong commitment to regional growth. Key acquisitions during this period included:

• 1985: Acquisition of Commerce Bank of Kansas City.
• 1991: Purchase of Central Kansas Bank.
• 1995: Expansion into Missouri with the acquisition of several regional banks.

Public Offering

In 1986, Commerce Bancshares became a publicly traded company on the NASDAQ, under the ticker symbol CBSH. The initial public offering (IPO) was a significant milestone, enabling the bank to raise capital for further expansion.

Recent Financial Performance

As of the end of 2022, Commerce Bancshares, Inc. reported the following financial figures:

Recent Developments

In 2023, Commerce Bancshares announced a digital banking partnership aimed at enhancing customer service and expanding its technological capabilities. The company has also focused on sustainability in banking practices, aiming to achieve net-zero carbon emissions by 2035.

Stock Performance

As of October 2023, the stock price of CBSH has experienced fluctuations due to market conditions. Notably, the stock has returned approximately 17% year-to-date, outperforming the S&P 500 index’s return of 12% in the same period. The current market capitalization stands at approximately $4.7 billion.

Dividend Policy

Commerce Bancshares has a consistent track record of paying dividends. The company maintained a dividend payout ratio of about 35% in 2022, and the quarterly dividend as of Q3 2023 was $0.26 per share, reflecting a yield of approximately 1.8% based on the current stock price.

Community Involvement

Commerce Bancshares is actively involved in community service initiatives, contributing approximately $4 million annually to various local charities and educational institutions. Their commitment to community development is a fundamental part of their corporate strategy.

Outlook

The outlook for Commerce Bancshares, Inc. remains positive as the company continues to innovate and expand its services, with a particular emphasis on enhancing digital banking and customer engagement. Analysts project steady growth rates in revenue, aligning with broader economic recovery trends.

A Who Owns Commerce Bancshares, Inc. (CBSH)

Ownership Structure

As of October 2023, Commerce Bancshares, Inc. (CBSH) has a diverse ownership structure, consisting of institutional investors, retail shareholders, and insider ownership. The following table outlines the primary categories of ownership.

Major Institutional Holders

Key institutional shareholders represent a significant portion of Commerce Bancshares' ownership. Below is a table detailing the top institutional holders and their respective share counts.

Insider Ownership

Insider ownership plays a crucial role in the governance of Commerce Bancshares. The following table highlights the top insiders, their ownership stakes, and their positions within the company.

Recent Stock Performance

As of October 2023, the stock price of Commerce Bancshares, Inc. (CBSH) has been fluctuating. Current statistics include:

• Current Stock Price: $75.50
• Market Capitalization: $4.2 billion
• 52-week High: $85.00
• 52-week Low: $65.00
• Dividend Yield: 1.50%

Conclusion of Ownership Analysis

The ownership of Commerce Bancshares, Inc. is characterized by substantial institutional presence coupled with significant insider holdings. Institutional investors own over 70% of the company, indicating high professional participation in its governance and potential strategies. The company’s performance metrics show insights into its financial health and shareholder returns.

Commerce Bancshares, Inc. (CBSH) Mission Statement

Core Mission

The mission of Commerce Bancshares, Inc. is to provide superior financial services while maintaining a strong commitment to the communities they serve. The bank aims to achieve this by delivering exceptional customer service and upholding its long-standing tradition of integrity and responsibility.

Financial Overview

As of September 30, 2023, Commerce Bancshares, Inc. reported the following key financial metrics:

Commitment to Community

Commerce Bancshares, Inc. emphasizes its dedication to community involvement and corporate responsibility with contributions to various social initiatives. In 2022, the bank donated approximately:

Customer Service Philosophy

Commerce Bancshares, Inc. places a strong emphasis on customer service, believing that it is crucial for building lasting relationships. In a 2023 customer satisfaction survey, the bank achieved a score of:

• 85% in overall customer satisfaction
• 90% in ease of doing business
• 87% in product offerings

Employee Engagement

The bank’s mission also extends to its employees. In 2023, Commerce Bancshares, Inc. was recognized as one of the best companies to work for, boasting:

Strategic Goals

To align with its mission statement, Commerce Bancshares, Inc. has set strategic goals for 2023, which include:

• Enhancing digital banking capabilities
• Expanding community engagement initiatives
• Improving operational efficiency by 10%
• Increasing loan origination by 15%

Innovation and Technology

Investments in technology are pivotal for Commerce Bancshares, Inc. The bank allocated $50 million in 2023 for technology upgrades and innovation initiatives aimed at improving customer experience and operational performance.

Conclusion

Commerce Bancshares, Inc.'s commitment to its mission is reflected in its robust financial performance, community involvement, and focus on superior customer and employee satisfaction.

How Commerce Bancshares, Inc. (CBSH) Works

Overview of Commerce Bancshares, Inc.

Commerce Bancshares, Inc. (CBSH) is a publicly traded bank holding company based in Kansas City, Missouri. As of October 2023, CBSH operates more than 200 locations across Missouri, Kansas, Illinois, Oklahoma, and Colorado. The company provides a range of financial services including personal banking, business banking, wealth management, and investment services.

Financial Performance

As reported in the third quarter of 2023, Commerce Bancshares’ total revenue was $367.5 million, compared to $339.7 million in the same period of 2022. The net income for the third quarter of 2023 was $104.2 million, reflecting a year-over-year increase from $96.8 million.

Below is a summary of CBSH's financial performance:

Business Segments

CBSH operates through several key business segments:

• Consumer Banking
• Commercial Banking
• Wealth Management
• Investment Services

Consumer Banking

The Consumer Banking segment provides services such as checking and savings accounts, credit and debit cards, and personal loans. As of Q3 2023, registered consumer accounts reached approximately 1.2 million.

Commercial Banking

This segment focuses on lending and banking services to businesses. The total loans in this segment reached approximately $8.6 billion as of September 2023.

Wealth Management

The Wealth Management division offers investment management, trust services, and estate planning. The assets under management (AUM) in this segment totaled $35.3 billion as of Q3 2023.

Investment Services

Investment Services covers brokerage services and investment advisory. The division contributed approximately $35 million in revenue in Q3 2023.

Market Position and Growth

CBSH is consistently recognized for its strong financial position and customer service. The company's total assets were reported at $25.5 billion as of Q3 2023.

In the competitive landscape, CBSH holds a market share of approximately 5% in the regional banking sector.

Risk Management and Compliance

CBSH employs a comprehensive risk management framework to mitigate financial and operational risks. As of October 2023, the bank maintained a Tier 1 capital ratio of 12.1%, significantly above the regulatory minimum requirement.

Technological Advancements

The company has made strategic investments in technology, enhancing its digital banking services. As of 2023, digital account openings accounted for 60% of all new accounts.

Community Involvement

Commerce Bancshares is actively involved in community development initiatives, contributing approximately $2.4 million to local charities in 2022.

How Commerce Bancshares, Inc. (CBSH) Makes Money

Core Banking Operations

Commerce Bancshares, Inc. primarily generates revenue through its banking operations. The bank offers various financial services such as loans, deposits, and investment management. In the fiscal year ending December 31, 2022, the net interest income was approximately $675.4 million.

Net Interest Margin

The net interest margin for CBSH as of Q2 2023 stood at 3.40%. This metric illustrates the difference between the interest income generated and the amount of interest paid out to depositors. The calculated interest income was around $772.5 million in the same period.

Non-Interest Income

Non-interest income is also a crucial component of CBSH's revenue. For the year ended December 31, 2022, non-interest income amounted to $274.3 million, which includes fees from service charges, asset management, and investment banking activities.

Loan Portfolio

As of June 30, 2023, Commerce Bancshares reported a total loan portfolio of $8.5 billion. The breakdown is as follows:

Deposits and Funding

As of June 30, 2023, CBSH had total deposits of approximately $10.1 billion. The funding mix is essential for maintaining liquidity and supporting lending activities:

Investment Services

CBSH has a significant presence in investment services, providing portfolio management, mutual funds, and advisory services. The assets under management (AUM) as of June 30, 2023, were valued at approximately $4.2 billion.

Cost Structure

The company maintains a disciplined approach to its cost structure, with non-interest expenses totaling $530.2 million for the fiscal year 2022. The breakdown of non-interest expenses includes:

Dividends and Shareholder Returns

Commerce Bancshares has a history of returning capital to its shareholders. The annual dividend paid in 2022 was $1.30 per share, with a dividend yield of approximately 1.8% at that time. The company has consistently increased its dividends over the past years, demonstrating strong financial health.

Online and Digital Banking

The rise of digital banking has allowed CBSH to expand its customer base. As of Q2 2023, approximately 40% of its transactions were conducted through digital channels. This shift has contributed to a reduced cost structure, improving operational efficiency.