Commerce Bancshares (CBSH) Bank of America Financial Services Conference 2026 summary

2025 performance and strategic acquisition

• Achieved record earnings, EPS, and ROA in 2025, building on strong 2024 results.

• Completed the FineMark acquisition, marking a return to M&A after 13 years, with integration focused on retaining FineMark's client-facing model and brand.

• FineMark's assets under management grew from $7 billion to over $8 billion post-announcement.

• Expansion into Southern Florida, Scottsdale, and South Carolina enhances market presence and leverages Midwest client migration.

• FineMark bankers now access broader product sets and expertise, strengthening wealth and private banking segments.

Loan growth, borrower sentiment, and balance sheet management

• Borrower sentiment improved from prior uncertainty, but remains moderate; 2025 saw about 3% loan growth.

• Loan growth is expected to remain in the moderate single-digit range, with cautious optimism for improvement in 2026.

• FineMark's portfolio increases residential exposure, but overall balance sheet risk is managed by reducing mortgage-backed securities.

• Wealth customers' opportunistic payoffs slowed loan growth, but gradual recovery is anticipated.

Deposit trends and interest rate sensitivity

• Deposit growth stabilized at 2%-3%, with low-cost funding base supporting loan growth.

• Deposit competition eased as rates declined, allowing for lower deposit costs in Q4.

• Deposit beta remains in the 20s, with potential to reach the 30s through the cycle, but further rate cuts may limit flexibility.

• Interest rate hedges and asset repos are in place to manage risk in a zero-rate environment.