Commerce Bancshares: ‘Full-Service Approach' Drives Gains in Wealth Management Business

Wealth Management Growth - Commerce Bancshares grew its wealth management business in Q4 through new initiatives targeting the market, contributing to revenue diversification [1] - The bank aims to expand its wealth management business by leveraging its private banking loan and deposit system, offering specialized products and services, and entering new concentrated wealth markets through acquisitions [2] - Strategies include expanding referrals with affluent households, enhancing sales and service processes, team development, and investing in digital tools for a seamless client experience [3] - Commerce Trust Company provides a full-service wealth management approach for high-net-worth individuals [4] Financial Performance - Net income in Q4 2023 was $136.1 million, up from$109.2 million YoY but slightly down from $138 million in the previous quarter [6] - Quarterly net interest income grew due to deposit and investment securities growth [7] - Non-interest income accounted for 36.8$74.8 billion from $68.9 billion YoY [4] - The bank moved from 20th to 19th largest among bank-managed trust companies in terms of assets under management [5] Operational Footprint - The bank operates 142 branches and 253 ATMs across seven states [5] - Wealth management offices are located in Dallas, Houston, and Naples, Florida, outside its core banking footprint [5]