Tue, May 6, 7:01 PM (12 days ago)
### Summary of Commerce Bancshares, Inc. (CBSH) Q1 2025 Financial Performance **Revenue and Profit Margins:** - **Net Income:** $131.59 million, up 16.8% from Q1 2024. - **Earnings per Share (EPS):** $0.98, up 19.5% from Q1 2024. - **Return on Assets (ROA):** 1.69%, up from 1.48% in Q1 2024. - **Return on Equity (ROE):** 15.82%, up from 15.39% in Q1 2024. **Cash Flow:** - **Net Cash Provided by Operating Activities:** $138.6 million, up from $135.48 million in Q1 2024. - **Net Cash Used in Investing Activities:** $373.43 million, up from $327.46 million in Q1 2024. - **Net Cash Provided by Financing Activities:** $132.73 million, up from $130.79 million in Q1 2024. **Earnings Changes:** - **Net Interest Income:** $269.1 million, up 8.1% from Q1 2024. - **Non-Interest Income:** $158.95 million, up 6.8% from Q1 2024. - **Provision for Credit Losses:** $14.49 million, up 202.6% from Q1 2024. **Quarterly Performance Discussion:** - **Loan Portfolio:** Total loans were $17.38 billion, up 1.0% from Q1 2024. Commercial and business real estate loans saw growth. - **Deposit Base:** Total deposits were $25.84 billion, down 0.8% from Q1 2024. Core deposits increased by $588.3 million. - **Investment Securities:** Total investment securities were $9.59 billion, up from $9.45 billion in Q1 2024. Unrealized losses decreased by $157.7 million. **Trends and Uncertainties:** - **Economic Outlook:** Slight decline in key macroeconomic variables, affecting the allowance for credit losses. - **Interest Rate Sensitivity:** The Company's net interest income is sensitive to changes in interest rates, with simulations showing potential impacts under various rate scenarios. - **Liquidity and Capital:** Strong liquidity position with substantial resources to meet funding needs. Regulatory capital ratios exceed well-capitalized institution levels. **Future Operations Impact:** - **Loan Growth:** Continued focus on loan growth, particularly in commercial and business real estate sectors. - **Deposit Management:** Monitoring of deposit volatility, especially in corporate deposits, which could impact funding needs. - **Investment Strategy:** Continued investment in high-quality, liquid securities to maintain a strong balance sheet. **Conclusion:** Commerce Bancshares, Inc. demonstrated robust financial health in Q1 2025, with strong earnings growth, effective management of credit risks, and a solid liquidity position. The company's strategic focus on loan growth, deposit management, and investment in high-quality securities positions it well for future operations. However, ongoing economic uncertainties and interest rate sensitivity remain key factors to monitor.