Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Commerce Bancshares Starts The Season With A 'Meh'

Surprises at banks seem to skew to the negative much more often than to the positive, so a relatively dull quarter in not such a bad result for Commerce Bancshares (NASDAQ:CBSH). What's more, this highly-focused Midwestern bank continues to show very good loan growth in an increasingly competitive market. While I like management's recent move to acquire a small bank in Oklahoma, the valuation here seems too rich and I'm not completely sold on the company's strategy of increasingly funding loans with wholesale deposits.

The Numbers For The Second Quarter

To cut to the chase first, Commerce had an OK second quarter. Both revenue and expenses came in a little worse than expected, leading to a roughly two-cent...

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