- The loan portfolio grew strongly in the first quarter. This performance will likely continue in the year ahead on the back of economic factors.
- Thanks to the balance sheet positioning, the net interest income is moderately sensitive to rate changes. Therefore, the margin will most probably expand in the year ahead.
- Loan additions will likely lead to higher net provision expenses this year relative to last year.
- The year-end target price suggests a significant downside from the current market price. Further, CBSH is offering a low dividend yield.
For further details see:
Commerce Bancshares: Higher Provisioning To Undermine Top-Line Growth