Overview

• US regional bank's Q2 revenue rose, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company repurchased 2.1 mln shares for $110 mln in Q2

Outlook

• Company expects maturities and pay downs of about $1.1 bln in available for sale debt securities over next 12 months

• Commerce says portfolio repositioning supports more consistent future net interest income and durable net interest margin

• Company says balanced revenue mix supports performance across economic cycles

Result Drivers

• NET INTEREST INCOME - Higher net interest income driven by expanding net interest margin and loan growth, per management discussion

• NON-INTEREST INCOME - Growth in trust and bank card fees contributed to higher non-interest income

• LOWER FUNDING COSTS - Decrease in interest expense on deposits and borrowings supported results

Company press release: ID:nBw639mLPa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$498.91 mln	$489.53 mln (6 Analysts)
Q2 EPS	Beat	$1.10	$1.06 (9 Analysts)
Q2 Net Income	Beat	$159.79 mln	$149.07 mln (8 Analysts)
Q2 Net Interest Income		$315.09 mln
Q2 Credit Loss Provision		$8.73 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Commerce Bancshares Inc is $60.00, about 3.2% above its July 15 closing price of $58.16

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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