Commerce Bancshares, Inc. · NASDAQ:CBSH
Commerce Bancshares — Shareholder Meeting (April 2018)
22 slides from Commerce Bancshares's shareholder meeting presentation, Apr 18, 2018
Slide 1: Commerce Bancshares, Inc. Annual Shareholders Meeting
COMMERCE BANCSHARES, INC. ANNUAL SHAREHOLDERS MEETING April 18, 2018 David Kemper Chairman and Chief Executive Officer
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT A number of statements we will be making in our presentation and in the accompanying slides are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements of the Corporation’s plans, goals, objectives, expectations
Slide 3: About Commerce Bancshares
ABOUT COMMERCE $24.8 153 BANCSHARES BILLION IN YEARS IN BUSINESS $20.4 ASSETS 46TH 6 LARGEST U.S. BANK BASED ON ASSET SIZE1 BILLION IN TOTAL DEPOSITS $14.0 4 5 51 $6.0 9 24 1 6 3 2 8 7 BILLION IN TOTAL LOANS BILLION MARKET CAPITALIZATION $7.9 3 34TH BILLION IN COMMERCIAL LARGEST U.S. BANK BASED ON M
Slide 4: Super-Community Bank Platform
SUPER-COMMUNITY BANK PLATFORM A consistent strategy with a long term view Community Bank Super-Regional Bank Customer relationship-based • Quickly adapt to CHALLENGE ACCEPTED • Sophisticated customer needs High performing teams and payment system and changing engaged workforce capabilities preferenc
Slide 5: A Strong Emphasis on Culture
A STRONG EMPHASIS ON CULTURE 2017 Employee Engagement1 Giving to our VALUES 78% • Engaged, long-term 75% We have a 74% leadership team long term We • Focus on people and talent iew collaborate development Commerce U.S. High U.S. Financial as ne • Knowledge of customers Performance Norm Services Norm
Slide 6: Recent Recognition
RECENT RECOGNITION Commerce Bank was recognized with eight Greenwich Excellence Awards in the following categories: Middle Market Banking ($10-500MM) Cash Management - Overall Satisfaction Cash Management - Overall Satisfaction - Midwest Likelihood to Recommend / Net Promoter Score Likelihood to Rec
Slide 7: Economic Themes
ECONOMIC THEMES We expect growth to accelerate even further in 2018. It would not surprise us if growth approaches or even surpasses 3% this year. The key drivers to this growth are: • Increasing levels of employment • Growth in business and consumer confidence that is translating to increasing reta
Slide 8: Themes in the Banking Industry
THEMES IN THE BANKING INDUSTRY • The traditional brick and mortar retail branch network remains relevant but with evolution of format and emphasis on strategic location • Tech enhancements to the digital experience will continue to meet the customers changing needs; organic growth as a result • Main
Slide 9: Maintaining the Balance
MAINTAINING THE BALANCE STRONG PERFORMANCE with Disciplined focus on PRIORITY ongoing refinement of the “Core BLUE CHIP investments Bank” • Super-Community Bank platform • Funding Future Growth • Relationship-based banking • Expansion Market Growth • High-touch customer service • Transform the Retai
Slide 10: Consumer Banking
CONSUMER BANKING 2009 $10.3 $2.5 $1.0 $113.5 MILLION BILLION BILLION BILLION $15 MILLION Consumer Consumer Consumer Branch Deposits Loans Auto Loans Expense 2016 2016 Average Reduction $10.2 $2.5 FICO since 2009 BILLION BILLION 750 Banking Channel Preferences Continue Expanding Digital Capabilities
Slide 11: The Commerce Trust Company wealth management
For high net worth individuals who are looking to simplify their complex financial life, The Commerce Trust Company provides a full-service approach to wealth management. $48.7 20TH $30.0 13% BILLION Largest Among Bank-Owned BILLION Record Asset Assets Under Management Total Client Trust Company2 M
Slide 12: Commercial Banking: Revenue growth opportunities
COMMERCIAL BANKING Revenue growth opportunities $8.9 $7.9 BILLION $523 MILLION BILLION Commercial Commercial Commercial Loans Deposits 5 Yr. Revenue 5 Yr. 5 Yr. CAGR CAGR CAGR +9.3% +3.0% +2.1% Commercial Loans Commercial Deposits Commercial Revenue $ in billions $ in billions $ in millions $523.0 $
Slide 13: Commercial Banking Expansion: Markets Offering Growth Opportunities
COMMERCIAL BANKING – EXPANSION MARKETS OFFERING GROWTH OPPORTUNITIES Nashville Cincinnati Oklahoma Denver Dallas Expansion Market Loan Growth Expansion $s in millions Market Loan $2,000 $1,793 Growth $1,542 195% $1,500 $1,338 $962 $1,091 $1,000 $608 $500 since 2012 $0 2012 2013 2014 2015 2016 2017 P
Slide 14: Commercial Payments
COMMERCIAL PAYMENTS $194 MILLION $7.9 BILLION $145 $42 MILLION MILLION Payments Commercial Health Services Treasury Revenue Card Volume Financing Services Loans Revenue EMBRACING INNOVATION IN THE PAYMENTS Invoice Capture and Payments Hub Supply Chain Finance SYSTEMS Workflow Approval Our full suite
Slide 15: Fee Income at 40% of Total Revenue
FEE INCOME AT 40% OF TOTAL REVENUE Balanced mix of interest and non-interest income Non-Interest Income $ millions $487 $474 Net Interest Income 8% $437 $448 $419 Wealth Management $400 13% Deposit Service Charges Commerce 1% Fees And Commissions 7% Bank* 60% Card Income 2012 2013 2014 2015 2016 201
Slide 16: Where Do We Rank Against Peers?
WHERE DO WE RANK AGAINST PEERS? (YTD RESULTS – DECEMBER 2017) CBSH CBSH ROA – 4Q2017 1Q18 ROA: ROACE – 4Q2017 1Q18 ROACE: 1.66% 15.58% BankUnited 2.13% BankUnited 23.36% MB Financial 1.55% Commerce 12.46% Commerce 1.28% UMB 11.88% TCF 1.26% Cullen/Frost 11.48% Prosperity 1.22% MB Financial 11.41% Cu
Slide 17: 2017 Year End Earnings
2017 YEAR END EARNINGS Actual $ in millions 2016A 2017A ROA % Incr. 2016: 1.12% Net interest income $ 680 $ 734 8% 2017: 1.28% Non-interest income 446 461 3% Total revenue 1,127 1,195 6% ROACE 2016: 11.33% Securities gains/(losses) (0) 25 NM 2017: 12.46% Non-interest expense (689) (744) 8% Provision
Slide 18: Financial Highlights QTD March 31, 2018
FINANCIAL HIGHLIGHTS QTD MARCH 31, 2018 $ millions (except EPS) 1Q2017 1Q2018 % change Net Income attrib to Commerce $72 $101 40.3% Return on Average Assets 1.15% 1.66% 44.3% Return on Average Common Equity 11.74% 15.58% 32.7% Efficiency Ratio 62.19% 58.21% -6.4% Average Loans $13,537 $13,929 2.9% A
Slide 19: Commerce Bank Maintains Solid Performance Over Time
COMMERCE BANK MAINTAINS SOLID PERFORMANCE OVER TIME Commerce Bank Peer Banks Large Banks ROA 10-yr average Return on Assets CBSH: 1.18% Peers: 0.63% 1.5% 1.0% 0.5% 0.0% -0.5% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ROACE 10-yr average Return on Average Common Equity CBSH: 11.57% Peers: 5.5
Slide 20: Long Term View: Net Income and Earnings per Share
LONG TERM VIEW: NET INCOME AND EARNINGS PER SHARE Earnings Per Share Net Income $350 $3.00 300 Earnings per Share $2.50 250 Net Income 200 $2.00 $ 000s 150 $1.50 100 50 $1.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Dividends $0.61 $0.62 $0.64 $0.65 $0.69* $0.71 $0.74 $0.78 $0.82 $0.86 per
Slide 21: Steady Shareholder Returns
STEADY SHAREHOLDER RETURNS as of December 31, 2017 Annualized Comparison Total Shareholder Returns Total Shareholder Returns Indexed, 12/31/2007 = $100 Percent $300 25% CBSH NASDAQ Banks COMMERCE KBW BANK 20% S&P 500 KBW Bank Index $250 BANK INDEX NASDAQ S&P 15% $200 BANK INDEX 10% $150 5% $100 0% 1
Slide 22: Notice: webcast audio recording
NOTICE: Due to technical difficulties, the recorded audio file for the Annual Shareholder meeting is of low quality. However, if you are interested in listening to the recorded message, you can access the recording by clicking on the link provided below. 2018 Shareholder Meeting Webcast Audio
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