Commerce Bancshares Inc.CBSH

Morningstar Rating

Stock Research and Analysis

by Jason Ren

Commerce Bancshares operates a Midwest banking franchise that holds competitive advantages as a result of its low-cost deposit base, noninterest revenue drivers, and conservative underwriting. Although it won't escape the recession unscathed--near-term Read more

Bulls Say

Commerce has stricter lending standards and uses less leverage than its peer banks. This conservatism should help it through the recession.

The bank's recurring noninterest revenue drivers should cushion profits during this credit downturn. Read more

Bears Say

The bank's expansion into Tulsa and Denver entails some risk. Commerce might stub its toe while becoming familiar with the underwriting nuances in those markets.

Of Commerce's loan book, around 14% is tied to credit cards, RVs, and marine vehicles. These loans will become more problematic as Commerce's clients get squeezed by the recession. Read more

Strategy

Commerce has traditionally focused on conservatively lending within the Wichita, Kan., greater Kansas City, St. Louis, Peoria, Ill., and Springfield, Mo., metropolitan communities. In recent years, the Read more

Management

David Kemper has been chairman and CEO since 1991. Although we prefer that the two roles be held by separate people, we note that Kemper and his team have managed credit issues fairly well and consistently returned value to shareholders. Compensation Read more

Profile

With more than 350 banking locations, Commerce Bancshares is a supercommunity bank with headquarters in Kansas City, Mo. The bank has about $18.0 billion in assets and $14. Read more

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