High Rates & Loan Demand Aid CBSH Despite Weak Asset Quality

Commerce Bancshares, Inc. (CBSH) has been well-placed for growth on the back of decent loan demand, relatively high rates and a solid balance sheet. However, weakening asset quality and a steady rise in expenses are headwinds.Key Factors Fueling Growth of Commerce BancsharesOrganic Growth Story: CBSH’s organic expansion efforts have been driving its growth. Revenues witnessed a five-year (2018-2023) compound annual growth rate (CAGR) of 3.5%, which was largely driven by strong loan balances (which experienc ...