Commerce Bancshares (CBSH) risk factors, FY2024 10-K

Commerce Bancshares's FY2024 10-K, filed Feb 25, 2025, lists 20 risk factors in 6 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
206 groups
Section length
5k wordsItem 1A

Commerce Bancshares's biggest risks in the FY2024 10-K

  • Geographic concentration in Missouri, Kansas, Illinois, Oklahoma, and Colorado exposes the bank to regional economic downturns.
  • Net interest income drives 63% of total revenue, heightening sensitivity to Federal Reserve monetary policy and interest rate shifts.
  • Heavy reliance on subsidiary bank dividends and third-party vendors creates operational and liquidity dependencies.

The risks most specific to Commerce Bancshares

  • Market Risks

    The performance of the Company is dependent on the economic conditions of the markets in which the Company operates

    The company operates primarily in Missouri, Kansas, central Illinois, Oklahoma, and Colorado, making its success vulnerable to local economic conditions.

  • Regulatory and Compliance Risks

    The Company is subject to both interest rate and liquidity risk

    Net interest income generated 63% of total revenue for the year ended December 31, 2024, exposing the bank to interest rate and liquidity risks.

  • Regulatory and Compliance Risks

    Commerce Bancshares, Inc. relies on dividends from its subsidiary bank for most of its revenue

    Commerce Bancshares, Inc. relies on dividend payments from its subsidiary bank as its principal source of funds for dividends and cash needs.

  • Operational Risks

    The Company’s operations rely on certain external vendors

    The company outsources critical information systems, communication, data management, and transaction processing to third-party vendors.

  • Operational Risks

    The allowance for credit losses may be insufficient or future credit losses could increase

    The allowance for credit losses reflects management estimates of expected loan portfolio and unfunded lending commitment losses as of December 31, 2024.

  • Operational Risks

    The Company’s investment portfolio values may be adversely impacted by deterioration in the credit quality of underlying collateral within the various categories of investment securities it owns

    The investment portfolio includes available-for-sale debt securities, trading securities, and equity securities, with no investments classified as held-to-maturity.

All 20 risk factors

Headings as the filing states them, in filing order.

Market Risks

  1. 01Difficult market conditions may affect the Company’s industry
  2. 02The performance of the Company is dependent on the economic conditions of the markets in which the Company operates
  3. 03The Company operates in a highly competitive industry and market area

Regulatory and Compliance Risks

  1. 04The Company is subject to extensive government regulation and supervision
  2. 05Significant changes in federal monetary policy could materially affect the Company’s business
  3. 06Climate-related and other Environmental, Social, and Governance ("ESG") developments could result in additional regulation and reporting for the Company
  4. 07The Company is subject to both interest rate and liquidity risk
  5. 08The soundness of other financial institutions could adversely affect the Company
  6. 09Commerce Bancshares, Inc. relies on dividends from its subsidiary bank for most of its revenue

Operational Risks

  1. 10The Company’s asset valuation may include methodologies, models, estimations and assumptions which are subject to differing interpretations and could result in changes to asset valuations that may materially adversely affect its results of operations or financial condition
  2. 11The Company’s operations rely on certain external vendors
  3. 12The allowance for credit losses may be insufficient or future credit losses could increase
  4. 13The Company’s investment portfolio values may be adversely impacted by deterioration in the credit quality of underlying collateral within the various categories of investment securities it owns
  5. 14The Company could recognize losses on securities held in its securities portfolio, particularly if it were to sell a significant portion of its investments prior to maturity

Strategic Risk

  1. 15New lines of business or new products and services may subject the Company to additional risk

Technology Risks

  1. 16A successful cyber attack or other computer system breach could significantly harm the Company, its reputation and its customers
  2. 17The Company continually encounters technological change

General Risks

  1. 18The Company must attract and retain skilled employees
  2. 19Public health threats or outbreaks of communicable diseases could have an adverse effect on the Company's operations and financial results
  3. 20Our business and financial results may be affected by societal and governmental responses to climate change and related environmental issues

Other Commerce Bancshares 10-Ks

  • FY2025 10-K risk factors
    24 risks4 new1 reworded

    The risk section is dominated by new exposures related to the pending FineMark merger, including integration challenges, costs, and personnel retention. Market condition risks were updated to reflect the 2025 and 2026 economic outlook regarding tariffs and inflation.

    Filed Feb 24, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.