Commerce Bancshares (CBSH) risk factors, FY2025 10-K

Commerce Bancshares's FY2025 10-K, filed Feb 24, 2026, lists 24 risk factors in 6 groups. Against the prior year's 20: 4 new, 1 substantially reworded.

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Risk factors listed
246 groups
New this year
4vs 20 last year
Dropped
0since the prior 10-K
Substantially reworded
1of those kept
Section length
6k wordsItem 1A

What the changes say

  • 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.

What changed since the prior 10-K

New

  • NewOperational Risks

    Integrating FineMark into the Company may be more difficult, costly, or time consuming than expected and the anticipated benefits and cost savings of the Merger may not be realized

    Integrating FineMark may disrupt operations, strain customer relations, and fail to deliver expected cost savings.

  • NewOperational Risks

    The Company has incurred and is expected to incur substantial costs related to the Merger

    The company has incurred and will continue to incur substantial legal, advisory, regulatory, and employee-related costs for the FineMark merger.

  • NewOperational Risks

    related costs, public company filing fees and other regulatory fees, financial printing and other printing costs, closing, integration and other related costs

    Unanticipated integration costs for FineMark may not be offset by efficiencies in the near term or at all.

  • NewOperational Risks

    The Company may be unable to retain personnel successfully

    The company may fail to retain key management and employees from FineMark, causing operational disruptions and recruitment costs.

Reworded

  • 47% rewrittenMarket Risks

    Difficult market conditions may affect the Company’s industry

    Updated macroeconomic commentary to replace 2024 conditions with 2025 economic growth figures, shifting focus from past inflation challenges to 2026 tariff policies, elevated living costs, and unemployment uncertainties.

All 24 risk factors

Headings as the filing states them, in filing order.

Market Risks

  1. 01Difficult market conditions may affect the Company’s industry47% rewritten
  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. 12Integrating FineMark into the Company may be more difficult, costly, or time consuming than expected and the anticipated benefits and cost savings of the Merger may not be realizedNew
  4. 13The Company has incurred and is expected to incur substantial costs related to the MergerNew
  5. 14related costs, public company filing fees and other regulatory fees, financial printing and other printing costs, closing, integration and other related costsNew
  6. 15The Company may be unable to retain personnel successfullyNew
  7. 16The allowance for credit losses may be insufficient or future credit losses could increase
  8. 17The 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
  9. 18The 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. 19New lines of business or new products and services may subject the Company to additional risk

Technology Risks

  1. 20A successful cyber attack or other computer system breach could significantly harm the Company, its reputation and its customers
  2. 21The Company continually encounters technological change

General Risks

  1. 22The Company must attract and retain skilled employees
  2. 23Public health threats or outbreaks of communicable diseases could have an adverse effect on the Company's operations and financial results
  3. 24Our business and financial results may be affected by societal and governmental responses to climate change and related environmental issues

Other Commerce Bancshares 10-Ks

  • FY2024 10-K risk factors
    20 risks

    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.

    Filed Feb 25, 2025

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.