Curious about Commerce Bancshares net worth and financial health?
In this article, Ando Money breaks down their market cap, revenue, loan portfolio, and more to give you a comprehensive look at their performance in 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Commerce Bancshares |
| Full Name | Commerce Bancshares, Inc. |
| Traded as | NASDAQ: CBSH |
| ISIN | US2005251036 |
| Founded | 1865 |
| Founders | Francis Reid Long |
| Country/Territory | United States |
| Headquarters | Kansas City, Missouri |
| Chief Executive Officer | John W. Kemper |
| Number of Employees | 4,724 (as of June 2024) |
| Market Cap | $7.89 Billion (as of September 2024) |
| Total Assets | $30.6 Billion (as of June 2024) |
| Total Equity | $3.1 Billion |
| Revenue | $414.5 Million (Q2 2024) |
| Net Income | $139.6 Million (Q2 2024) |
What is the Net Worth/ Market Cap Of Commerce Bancshares in 2024?
As of September 2024, Commerce Bancshares has a market capitalization of $7.89 billion, reflecting its position as one of the prominent regional banks in the U.S. financial landscape.
With over 150 years of banking expertise, it continues to maintain its reputation through solid financial performance, a strong loan portfolio, and consistent revenue streams.
Comparing Commerce Bancshares to other banks within the industry provides context for its market standing. Though not as large as the major global banking giants, its solid balance sheet and regional focus offer steady growth and financial stability.
Here are other banks related to Commerce Bancshares:
- U.S. Bancorp
- Regions Financial
- PNC Financial Services
- Bank of America
- JPMorgan Chase
- Wells Fargo
- KeyCorp
- Fifth Third Bancorp
- Citizens Financial Group
If you’re interested in learning more about the largest financial institutions in the world, check out this list of the world’s largest banks.
Financial Performance Overview
Analyzing Revenue Sources
Commerce Bancshares’ revenue is driven by two main streams: net interest income and non-interest income.
In the second quarter of 2024, the bank generated $262.2 million in net interest income, an increase from the previous quarter, primarily due to higher interest rates and a growing loan portfolio.
The net yield on interest-earning assets improved to 3.55%, reflecting efficient asset management and favorable market conditions.
Non-interest income contributed $152.2 million in Q2 2024, with notable growth in trust fees, which increased by 10.6%.
This growth is primarily due to higher private client fees. Additionally, deposit account charges rose by 11.9%, driven by increased corporate cash management fees.
Despite fluctuations in bank card fees, Commerce Bancshares’ diversified revenue sources ensured consistent performance.
Impact of Loan Portfolio
Loans are a key asset for Commerce Bancshares. The average loan balance reached $17.2 billion, showing a modest growth of 0.6% over the previous quarter.
This growth was driven by an increase in business loans, which expanded by $106.8 million, and consumer loans, which grew by $45.2 million.
Despite a slight decline in real estate loans, the overall loan portfolio remains strong and contributes significantly to the bank’s financial health.
Credit quality is another critical factor. The ratio of non-accrual loans to total loans remained low at 0.11%, reflecting sound risk management practices.
Furthermore, the allowance for credit losses stood at $158.6 million, ensuring the bank is well-prepared for potential defaults or losses.
Non-Interest Income Contributions
A major driver of non-interest income is trust fees, which grew by $5.0 million, or 10.6%, in Q2 2024. This increase was largely driven by higher private client fees, indicating robust demand for wealth management services.
Capital market fees also saw significant growth, increasing by 61.6% compared to the previous year, mainly due to higher underwriting fees.
While there was a decrease in bank card transaction fees, mainly in the corporate card segment, merchant fees increased, offsetting some of the losses.
Additionally, consumer brokerage services and loan fees played supporting roles in bolstering non-interest income.
Investment Portfolio and Securities Gains
The bank’s investment portfolio is another important contributor to its overall financial performance.
During the second quarter of 2024, Commerce Bancshares recorded a net gain of $177.0 million from the sale of Visa stock, which was a strategic move to capitalize on favorable market conditions.
This gain helped offset losses of $179.1 million from the repositioning of available-for-sale debt securities.
At the end of the quarter, Commerce Bancshares’ total available-for-sale debt securities stood at $8.8 billion, reflecting a decrease due to the strategic sale of certain securities.
Despite the decrease in debt securities, the bank’s investment portfolio continues to contribute meaningfully to its financial performance, with Treasury bonds and other government-backed securities providing stable returns.
Expense Management and Profitability
Managing expenses effectively is critical for maintaining profitability. In Q2 2024, Commerce Bancshares reported non-interest expenses of $232.2 million, a slight increase from the same period last year.
This was mainly due to an additional $5.0 million donation to the Commerce Bancshares Foundation, showcasing the bank’s commitment to corporate responsibility.
However, expenses related to salaries and data processing were kept in check, ensuring that the efficiency ratio improved to 55.9%.
Strong Capital Adequacy
Commerce Bancshares maintains a solid capital position, with a Tier I leverage ratio of 12.13% and a tangible common equity ratio of 9.82%.
This strong capital base supports the bank’s ongoing growth and ensures it can weather economic challenges.
The company’s return on average equity reached 18.52%, highlighting its ability to generate value for shareholders through effective use of its equity capital.
FAQs about Commerce Bancshares
What is the market capitalization of the Commerce Bancshares in 2024?
As of September 2024, the bank has a market cap of $7.89 billion. It reflects strong financial standing and consistent performance.
Who is the CEO of the bank?
It is led by John W. Kemper, overseeing operations and growth strategies for continued success.
How does the bank generate revenue?
Revenue comes from net interest income and non-interest income. Main sources include trust fees, capital market fees, and loans.
What is the total asset value of the Commerce Bancshares?
As of June 30, 2024, total assets are valued at $30.6 billion, including loans, securities, and deposits.
How many employees work at the bank?
There are 4,724 full-time equivalent employees in June 2024, providing essential banking services across multiple regions.
What types of loans does the bank offer?
It offers business loans, real estate loans, consumer loans, and specialized financing like credit card loans.
Conclusion
Commerce Bancshares continues to show solid financial strength in 2024. Want to learn more about their position or explore how other U.S. banks compare?
Check out the largest banks in America on andomoney.com. Feel free to leave a comment, share your thoughts, or dive deeper into our latest content!
