Commerce Bancshares, Inc. (CBSH)

Commerce Bancshares, Inc. (CBSH) Financial Services Profile

Commerce Bancshares, Inc., founded in 1865, provides comprehensive banking and wealth management services across the Midwest, leveraging its established network and diverse product offerings. With a focus on customer relationships and a conservative risk profile, CBSH maintains a strong regional presence amidst evolving financial landscapes.

What Is the Investment Thesis for CBSH?

Commerce Bancshares presents a stable investment opportunity within the regional banking sector. With a P/E ratio of 14.6 and a profit margin of 26.1%, CBSH demonstrates consistent profitability. The company's diversified revenue streams across consumer, commercial, and wealth management segments mitigate risk. A dividend yield of 2.09% provides income for investors. Growth catalysts include expansion within existing markets and increased adoption of digital banking services. Potential risks include interest rate fluctuations and increased competition from fintech companies. The company's conservative approach and strong regional presence support long-term value.

Based on FMP financials and quantitative analysis

CBSH Key Highlights

• Market capitalization of $8.59B, reflecting a substantial presence in the regional banking sector.
• Profit margin of 26.1%, indicating efficient operations and strong profitability.
• Gross margin of 80.7%, showcasing effective cost management and revenue generation.
• Dividend yield of 2.09%, providing a steady income stream for investors.
• Beta of 0.59, suggesting lower volatility compared to the overall market.

Who Are CBSH's Competitors?

CBSH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CBSH's Key Strengths?

• Diversified revenue streams across multiple business segments.
• Strong regional presence and brand recognition.
• Conservative risk management practices.
• Experienced management team.

What Are CBSH's Weaknesses?

• Limited geographic diversification compared to larger national banks.
• Exposure to regional economic conditions.
• Reliance on traditional banking services in a rapidly evolving digital landscape.
• Potential for increased competition from fintech companies.

What Could Drive CBSH Stock Higher?

• Expansion of digital banking services to attract new customers and enhance customer experience.
• Growth in wealth management services driven by increasing affluence and demand for financial planning.
• Potential acquisitions of smaller banks or wealth management firms to expand geographic reach and product offerings.
• Focus on commercial lending to support economic growth in the Midwest.

What Are the Key Risks for CBSH?

• Financial-distress signal — its Altman Z-Score of 0.53 sits in the distress zone (elevated bankruptcy risk).
• Interest rate fluctuations impacting net interest margin.
• Increased competition from national and regional banks and fintech companies.
• Regulatory changes and compliance costs affecting profitability.
• Economic downturns and credit losses impacting asset quality.
• Cybersecurity threats and data breaches compromising customer information.

What Are the Growth Opportunities for CBSH?

• Expansion within existing markets: Commerce Bancshares can grow by increasing its market share in its current geographic footprint. This involves opening new branches in strategic locations, enhancing marketing efforts, and developing targeted products and services for specific customer segments. The regional banking market is expected to grow at a rate of 3-5% annually, providing ample opportunity for CBSH to expand its customer base and increase its loan portfolio.
• Increased adoption of digital banking services: Commerce Bancshares can capitalize on the growing trend of digital banking by enhancing its online and mobile platforms. This includes offering a wider range of digital services, improving the user experience, and investing in cybersecurity. The digital banking market is projected to reach $1.2 trillion by 2030, representing a significant growth opportunity for CBSH.
• Strategic acquisitions: Commerce Bancshares can pursue strategic acquisitions to expand its geographic reach and product offerings. This involves acquiring smaller banks or wealth management firms in attractive markets. Strategic acquisitions can provide CBSH with access to new customers, new technologies, and new sources of revenue. The timeline for potential acquisitions is ongoing, with CBSH actively evaluating opportunities.
• Growth in wealth management services: Commerce Bancshares can grow its wealth management business by attracting new clients and expanding its services to existing clients. This includes offering personalized investment advice, financial planning, and trust services. The wealth management market is expected to grow at a rate of 6-8% annually, driven by the increasing wealth of high-net-worth individuals.
• Enhanced commercial lending: Commerce Bancshares can increase its commercial lending activity by targeting specific industries and developing customized loan products. This includes focusing on industries with strong growth potential, such as healthcare, technology, and renewable energy. The commercial lending market is expected to grow at a rate of 4-6% annually, providing opportunities for CBSH to expand its loan portfolio and increase its revenue.

What Opportunities Does CBSH Have?

• Expansion into new geographic markets.
• Increased adoption of digital banking services.
• Strategic acquisitions of smaller banks or wealth management firms.
• Growth in wealth management services driven by increasing affluence.

What Threats Does CBSH Face?

• Interest rate fluctuations.
• Increased competition from national and regional banks.
• Regulatory changes and compliance costs.
• Economic downturns and credit losses.

What Are CBSH's Competitive Advantages?

• Strong regional presence and brand recognition in the Midwest.
• Diversified business model across consumer, commercial, and wealth management segments.
• Conservative risk management practices and a history of financial stability.
• Established customer relationships and a focus on customer service.

What Does CBSH Do?

Commerce Bancshares, Inc. is a regional bank holding company headquartered in Kansas City, Missouri. Founded in 1865, the company has evolved from a local bank into a diversified financial services provider. Through its primary subsidiary, Commerce Bank, CBSH delivers a wide array of retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. The company operates through three main segments: Consumer, Commercial, and Wealth. The Consumer segment offers deposit accounts, consumer loans (including auto, home equity, and recreational vehicle loans), healthcare financing, and credit cards. The Commercial segment provides corporate lending, leasing, international services, merchant services, and cash management solutions. The Wealth segment focuses on trust and estate planning, investment portfolio management, brokerage services, and private banking. Commerce Bancshares operates a network of 287 locations across Missouri, Kansas, Illinois, Oklahoma, and Colorado, along with commercial offices. The company also provides online and mobile banking services, private equity investment, securities brokerage, insurance agency, and specialty lending and leasing services, positioning itself as a comprehensive financial partner for its clients.

What Products and Services Does CBSH Offer?

• Provides retail banking services, including checking and savings accounts, loans, and credit cards.
• Offers mortgage banking services for residential and commercial properties.
• Delivers corporate banking services, including lending, leasing, and cash management.
• Provides investment management services, including portfolio management and brokerage services.
• Offers trust and estate planning services to individuals and families.
• Provides online and mobile banking services for convenient access to accounts and services.
• Offers private equity investment, securities brokerage, insurance agency, specialty lending, and leasing services.

How Does CBSH Make Money?

• Generates revenue from interest income on loans and investments.
• Earns fees from banking services, such as account maintenance, wire transfers, and credit card transactions.
• Derives revenue from wealth management services, including investment advisory and trust fees.
• Profits from trading securities and other financial instruments.

What Industry Does CBSH Operate In?

The regional banking sector is characterized by increasing consolidation and technological disruption. Commerce Bancshares operates in a competitive landscape that includes both large national banks and smaller community banks. The industry is influenced by factors such as interest rate movements, regulatory changes, and economic growth. Market trends include the growing adoption of digital banking services and the increasing importance of wealth management. Commerce Bancshares' diversified business model and strong regional presence position it to capitalize on these trends while mitigating risks.

Who Are CBSH's Key Customers?

• Individual consumers seeking retail banking services.
• Small and medium-sized businesses requiring commercial banking solutions.
• Corporations needing corporate lending and cash management services.
• High-net-worth individuals and families seeking wealth management services.
• Correspondent banks, corporations, public institutions, municipalities, and individuals.

Company Profile

Commerce Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Kansas City, US. The company is led by CEO John W. Kemper. CBSH has traded publicly since 1980.

Commerce Bancshares, Inc. Financial Trajectory

Commerce Bancshares, Inc. (CBSH) reported $584.0M in revenue for Q1 2026, reflecting 7.6% growth compared to the prior quarter. The company recorded net income of $141.6M, with diluted EPS of $0.97. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Financial Services. Across the four most recent quarters, CBSH averaged $1.03 in diluted EPS.

How Commerce Bancshares, Inc. Is Valued

Commerce Bancshares, Inc. carries a market capitalization of $8.59B, placing it in the mid-cap category. Relative to its peer group, CBSH's quantitative score of 84/100 is roughly in line with the peer average of 84/100.

ROE 15%Key Financial Metrics

Return on equity for Commerce Bancshares, Inc. stands at 14.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.6%, showing how much profit it generates from its asset base. CBSH trades at a trailing price-to-earnings ratio of 14.62, below the Financial Services sector average of ~18x. Its free cash flow yield is 13.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.58 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.8%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Commerce Bancshares, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.53 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Commerce Bancshares, Inc. revenue of about $1.97B for fiscal 2026, with EPS near $4.12. The estimate reflects 5 contributing analysts.

Net buyingInsider Activity

Over the past six months, Commerce Bancshares, Inc. insiders filed 21 SEC Form 4 transactions — 7 sales and 14 purchases. On net that is roughly 6K shares acquired (about $336K) — insiders putting money in tends to read as conviction.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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