Commerce Bancshares Inc. 10-K Summary (Fiscal Year Ended Dec 31, 1996)
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 1996, for Commerce Bancshares, Inc., a Missouri-incorporated bank holding company. The Company operates a multi-state banking network with subsidiaries in Missouri, Illinois, Kansas, and a credit card bank in Nebraska. As of February 18, 1997, the Company had 37,009,571 shares of common stock outstanding with an aggregate market value of approximately $1.59 billion held by non-affiliates. The Company is the third largest bank holding company in Missouri by deposit market share.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The filing text does not provide specific numerical values for revenue, net income, cash flow, profit margins, debt levels, or liquidity ratios. These figures are incorporated by reference from the 1996 Annual Report to Shareholders (specifically pages 20 through 58) and are not present in the provided text.
Operational Metrics:
- Employees: 4,277 full-time and 716 part-time as of December 31, 1996.
- Market Position: Third largest bank holding company in Missouri by deposit market share.
- Asset Concentration: Approximately 81% of banking assets are located in Missouri regional markets.
Material Changes Versus Prior Period
The most significant operational change in 1996 was a series of charter mergers designed to improve customer service and minimize operating overhead. Key mergers included:
- Commerce Bank (Bloomington, IL) merged into Commerce Bank, N.A. (Peoria, IL).
- Multiple Missouri and Kansas branches (including Barry County, Joplin, Lebanon, St. Joseph, Springfield, Columbia, Lawrence, and Manhattan) merged into Commerce Bank, N.A. (Kansas City, MO).
- Commerce Bank, N.A. (Clayton, MO) merged into Commerce Bank of Hannibal, N.A., with the main location moved to Clayton, MO.
The filing states that additional mergers are expected. No specific financial comparisons to the prior year are provided in the text.
Guidance, Outlook, Risks, and Contingencies
Outlook: Management anticipates further bank mergers. The Company operates in a stable economic environment with Missouri, Kansas, and Illinois economies described as generally stable and not abnormally weakened by national trends.
Risks: The loan portfolio is described as well-diversified but contains certain risks detailed in the Annual Report. The Company faces intense competition from approximately 500 Missouri banks, over 900 Illinois banks, over 500 Kansas banks, and various other financial intermediaries. Competition is based primarily on rates and service quality.
Contingencies: Legal proceedings and commitments are referenced on page 54 of the Annual Report to Shareholders but are not detailed in this text.
Investor Verification Checklist
- Financial Performance: Verify specific revenue, net income, and earnings per share figures in the 1996 Annual Report to Shareholders (pages 20-39).
- Asset Quality: Review the "Risk Elements" and "Summary of Loan Loss Experience" sections (pages 23-30 of the Annual Report) to assess credit risk.
- Liquidity and Capital: Confirm capital adequacy ratios and liquidity positions in the "Distribution of Assets, Liabilities and Stockholders' Equity" section (pages 22, 36-39 of the Annual Report).
- Merger Integration: Assess the impact of the 1996 charter consolidations on operating expenses and efficiency.
- Legal Exposure: Review the "Commitments and Contingencies" section (page 54 of the Annual Report) for details on pending litigation.