Commerce Bancshares' second-quarter 2014 earnings outpaced the
Zacks Consensus Estimate. Steady improvement in revenues and growth
in loans and deposits were the favorable factors. On the other
hand, elevated operating expense and provision for loan losses
continue to be causes of concern. We believe the company has
healthy growth prospects on the back of a sound capital base and
strong liquidity level. Also, the company's enhanced capital
deployment activities and inclination towards inorganic growth will
work in its favor going forward. However, the company's failure to
curb expenses which may get further aggravated by stringent
regulatory requirements along with the prevailing low interest rate
environment as well as sluggish economic recovery will likely keep
the financials under pressure in the near term.
Incorporated in 1966, Commerce Bancshares Inc. is one of the
largest bank holding companies in Missouri, with its principal
offices located in Kansas City and St. Louis. It has significant
operations in the states of Missouri, Kansas, Illinois, Oklahoma
and Colorado. Operating through a network of approximately 350
locations as of Jun 30, 2014, the company engages in the general
banking business, providing a wide range of retail, corporate,
investment, trust and asset management products as well as services
to individuals and businesses.
Commerce Bancshares, along with its subsidiaries, offers
diversified financial services organized under the following
The Consumer segment includes the retail branch network,
indirect and other consumer financing, consumer debit and credit
bank cards and student lending.
The Commercial segment provides an array of corporate lending,
leasing and international services, as well as business and
government deposits, cash management services and Merchant and
Commercial bank card products. The segment includes the Capital
Markets Group, which offers fixed-income securities and also
provides investment safekeeping and bond accounting services.
The Wealth segment provides traditional trust and estate tax
planning services, as well as advisory and discretionary investment
portfolio management services to both personal and institutional
corporate customers. It also manages brokerage services, the
Private Banking product portfolio and Commerce Bancshares' family
of proprietary mutual funds.
The Other/Elimination segment includes activities not related to
the above-mentioned segments, such as certain administrative
functions, the investment securities portfolio and the effect of
certain expense allocations to the segments.
In 2013, Commerce Bancshares acquired Summit Bancshares, Inc. of
Tulsa and Oklahoma City for $43.2 million. The company assumed $206
million in loans and $230 million in deposits as part of this
As of Jun 30, 2014, Commerce Bancshares had total assets of
$23.0 billion, loans of $11.5 billion, deposits of $19.0 billion
and equity of $2.3 billion. As of the same date, the company had
Commerce Bancshares, Inc. (CBSH): Read the Full
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